Document:

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        BILLING AND COLLECTION SERVICES AGREEMENT

        This Agreement is made in duplicate this 1 day of (month) November,
        (year) 2001,

        between YAK COMMUNICATIONS (CANADA) INC. (name),
                55 Town Centre Court, Suite 610 (address)
                Scarborough, Ontario M1P 4X4 (city and province),

        hereinafter referred to as "the Service Provider" or "the SP",

        and     BELL CANADA (name),
                1050 Beaver Hall Hill (address)
                Montreal, Quebec H2Z 1S4 (city and province),

        hereinafter referred to as "the Biller".

        The SP and the Biller may also be referred to individually as "a Party"
        and collectively as "the Parties".

        Whereas the Biller will provide Billing and Collection Services to the
        SP for Eligible Services provided by the Service Provider; and

        Whereas the SP wishes to purchase Billing and Collection Services from
        the Biller.

        The Parties in consideration of the mutual covenants and promises in
        this Agreement therefore agree as follows:

Article 1       Definitions

1.1     With respect to the definitions herein, and wherever the facts or
        context so requires within this Agreement, the use of words or phrases,
        in the singular or the plural, as a noun or a verb, in the past, present
        or future tense, shall have the meaning ascribed to the word or phrases
        in this Article 1.

1.2     In this Agreement including the preamble, the following terms or phrases
        shall mean:

        a)  "Accounts Receivable" the amount charged by the SP, including all
            Taxes, for the use of the SP's Eligible Services by Customers.

        b)  "Accounts Receivable Management Discount" a discount which the
            Biller applies to the price of the Accounts Receivable received from
            the SP to compensate the Biller for its liability for Bad Debt.

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        c)  "Bad Debt" Accounts Receivable, which have been billed by the Biller
            to Customers, but are not paid by Customers, and which are not
            disputed by Customers as provided for in the Billing and Collection
            Services Procedures. Bad Debt excludes charges incurred
            fraudulently.

        d)  "Billing and Collection Service" a billing and collection service
            provided by the Biller to the SP, for Eligible Services offered by
            the SP to Customers.

        e)  "Billing and Collection Services Procedures" the document referred
            to in Article 2.2.

        f)  "Billing and Collection Technical Guideline" the document referred
            to in Article 2.1.

        g)  "Call" a single use of an Eligible Service in respect of which an
            Exchange Message Interface (EMI) record is created.

        h)  "Chargeback" an Account Receivable which has been billed by the
            Biller to a Customer, but which is not paid by the Customer or which
            is disputed by the Customer, and which does not constitute Bad Debt.
            Reasons for Chargebacks are identified by return codes specified in
            the Billing and Collection Technical Guideline.

        i)  "CISC" the CRTC Industry Steering Committee or successor committees.

        j)  "CRTC" the Canadian Radio-television and Telecommunications
            Commission.

        k)  "Customer" a party who: (1) is responsible for payment of charges
            associated with the use of Eligible Services for which the SP is
            entitled to be compensated, (2) does not have an established billing
            relationship with the SP for Eligible Services on the date that the
            Eligible Services are used, and (3) has an established billing
            relationship with the Biller on the date that the Eligible Services
            are used.

        l)  "Eligible Services" telecommunications services provided by the SP
            to Customers, and which are listed in Schedule I.

        m)  "GST" applicable Goods and Services Tax.

        n)  "HST" applicable Harmonized Sales Tax.

        o)  "PST" applicable Provincial Sales Tax.

        p)  "Rebill" an Accounts Receivable provided to the Biller by the SP,
            for inclusion in a Customer invoice, which same Accounts Receivable
            had previously been provided to the

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            Biller by the SP, for inclusion in an earlier invoice to the same
            Customer. The amount of the charges to the Customer, including
            Taxes, must be the same.

        q)  "Reject" Accounts Receivable that have been returned to the SP by
            the Biller before it has been included on a Customer's invoice,
            either because it fails the Biller's pre-billing fraud edits or for
            reasons identified by return codes specified in the Billing and
            Collection Technical Guideline including the Exchange Message
            Interface (EMI)

        r)  "Tariffs" the Biller's  tariffs, general terms of service, general
            regulations, and or terms of service, as amended from time to time,
            and as approved by the CRTC, including, but not limited to any
            limitations of liability.

        s)  "Tax" GST/HST (where applicable), PST (where applicable) and any
            other applicable provincial or federal taxes.

        t)  "Validation" the process whereby the SP must access a database or
            databases to determine the requirements to proceed with a call and
            adhere to such requirements.

Article 2    Associated Documents

2.1     The Billing and Collection Technical Guideline contains the technical
        specifications of the Billing and Collection Service following industry
        accepted guidelines with any modifications required to reflect the
        unique aspects of the Billing and Collection Services provided by the
        Biller. The Billing and Collection Technical Guideline was prepared, and
        its contents agreed, by the Billing and Collection Task Force
        constituted under the direction of CISC and will be amended from time to
        time following the document Change Management process established for
        all CISC documents. The Billing and Collection Technical Guideline
        references the EMI maintained by the Alliance for Telecommunications
        Industry Solutions (ATIS) and includes the associated Canadian Locally
        Negotiated Guidelines. The Billing and Collection Technical Guideline,
        is mutually agreed to by the SP and the Biller.

2.2     The Billing and Collection Services Procedures contain a description of
        the Biller's collection procedures and claims investigation and
        adjustment functions used by its business office to handle, resolve,
        and/or refer Customer inquiries and claims. The Billing and Collection
        Services Procedures is prepared by the Biller and provided to the SP.
        The Billing and Collection Services Procedures shall not be considered
        to be an integral component of this Agreement.

Article 3    Scope of the Agreement

3.1     This Agreement relates to the purchase by the Biller from the SP of
        Accounts Receivable, and the corresponding sale, assignment, transfer
        and set over by the SP to the Biller of all rights, title and interest
        in these Accounts Receivable, to permit the Biller to attempt to

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        collect these Accounts Receivable from the Customer.

3.2     The following types of Accounts Receivable, may be Rejected and the
        Biller may apply relevant charges pursuant to Articles 7 and 8, provided
        the Reject is received by the SP within 15 calendar days of the Account
        Receivable being received by the Biller:

        a)  for which there are entries in the fields of the associated Account
            Receivable records provided by the SP which do not conform to the
            format or content as prescribed by the Billing and Collection
            Technical Guideline;

        b)  associated with Eligible Services for which the Account Receivable
            is received by the Biller more than 120 calendar days beyond the
            date that the Call was made;

        c)  for Eligible Services charged to telephone numbers of persons that
            are not Customers on the date that the Call was made;

        d)  for Eligibie Services charged to accounts that did not exist on the
            date that the Call was made;

        e)  for Eligible Services that are Rebilled more than once;

        f)  for Eligible Services which are fraudulent or suspected to be
            fraudulent;

        g)  for Eligible Services for which the charge has been duplicated; or

        h)  for Calls requiring Validation where the Validation has not
            occurred.

3.3     The following types of Accounts Receivable, may be Chargedback and the
        Biller may apply relevant charges pursuant to Articles 7 and 8 provided
        the Chargeback is received by the SP no more than 210 calendar days
        beyond the date that the Call was made:

        a)  for fraudulent or suspected fraudulent use of Eligible Services;

        b)  for Eligible Services for which the charge has been duplicated,

        c)  for Calls requiring Validation where the Validation has not
            occurred; or

        d)  for Accounts Receivable where the Customer denies knowledge of the
            transaction, requests an adjustment due to dialing error, or any
            other condition as described in the Billing and Collection Services
            Procedures.

3.4     Notwithstanding anything herein, Accounts Receivable which are
        identified as Bad Debt will not be Chargedback.

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3.5     Notwithstanding anything herein, the Biller will not purchase and the SP
        will not sell, assign, transfer or set over the Accounts Receivable for
        transactions associated with calls or programs that do not comply with
        all applicable legal and regulatory requirements. In the event that the
        SP provides Accounts Receivable for transactions associated with calls
        or programs that do not comply with applicable legal and regulatory
        requirements, those Accounts Receivable may be Rejected, or Chargedback
        and the Biller may apply relevant charges pursuant to Articles 7 and 8.

3.6     Title to the Accounts Receivable which the Biller purchases and the SP
        sells, assigns, transfers or sets over pursuant to this Agreement will
        be deemed to have passed to the Biller upon such Accounts Receivable
        successful completion of all the Biller's pre-billing edits as described
        in the Billing and Collection Technical Guideline or on the 15th
        calendar day after the Accounts Receivable were received by the Biller,
        whichever occurs first.

3.7     In the event an Account Receivable is Chargedback, title to such
        Accounts Receivable shall be deemed to have reverted to the SP upon the
        SP's receipt and acceptance through edits as provided for in the Billing
        and Collection Technical Guideline, of the Chargeback record applicable
        to such Account Receivable or on the 15th calendar day after the
        Chargeback was received by the SP, whichever occurs first.

3.8     Either Party is entitled to utilize the services of a third party in
        performing some or all of its responsibilities under this Agreement
        provided that at all times the SP and Biller shall remain liable to each
        other for all obligations and payments under this Agreement.

Article 4       Rights and Responsibilities of the Biller

4.1     The Biller will provide the following Billing and Collection Services in
        accordance with the terms and conditions contained herein, the
        applicable provisions of the Biller's Tariffs and in accordance with
        practices contained in the Billing and Collection Services Procedures:

        a)  preparation and rendering of bills to Customers for charges
            associated with Eligible Services used by Customers, for which the
            Accounts Receivable have been purchased by the Biller. The Biller
            will include the unaltered amount of the relevant charges, subject
            to any Tax adjustments as described in Article 6 herein, in
            statements distributed to Customers responsible for the payment of
            charges for the Eligible Services. The Biller will provide
            sufficient information on the Customer's bill to allow the Customer
            to identify the service being billed for and the charges associated
            with the call as specified in the Billing and Collection Technical
            Guideline;

        b)  attempt to collect payments for purchased Accounts Receivable,
            including appropriate Taxes;

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        c)  answering of Customer questions regarding charges billed by the
            Biller for Eligible Services provided by the SP, excluding
            questions about the details of the SP's services, rates, rate
            structures and similar matters. As provided in Article 5.7, the SP
            will provide the Biller with an inquiry telephone number for use by
            Customers who wish to have information on the matters excluded
            above; and

        d)  application of credits and adjustments to Customer accounts.

4.2     The Biller shall exercise the same due diligence in the collection of
        Accounts Receivable that the Biller has purchased from the SP as it does
        in the collection of the Biller's other Accounts Receivable that are
        unrelated to Billing and Collection Services.

4.3     The SP acknowledges and agrees that the Biller will have full power and
        authority, at any time, to notify any person concerned with the
        assignment of the Accounts Receivable or otherwise affected by it, of
        the fact that said assignment has been made.

4.4     The SP acknowledges and agrees that the Biller will have full power and
        authority to register any and all financing statements and other similar
        documentation under any applicable legislation so as to protect and
        perfect its interest in the Accounts Receivable.

4.5     At any time during the continuance of this Agreement, the Biller will
        have the right to sell, assign, transfer and set over the Accounts
        Receivable with all or any rights, title and interests therein to any
        person, firm or corporation, and the assignee thereof will acquire and
        possess all the powers, rights and interests granted under this
        Agreement and will be subject to any obligations of the Biller as
        specified in this Agreement, provided that at all times the Biller shall
        also remain liable to the SP for al1 obligations and payments under this
        Agreement.

4.6     For any Accounts Receivable purchased by the Biller and subsequently
        Chargedback, the Biller shall provide to the SP the Customer's name,
        telephone number, and billing address.

4.7     The Biller shall employ reasonable efforts in an attempt to prevent or
        curtail fraudulent activity. The Biller shall cooperate with the SP in
        exchanging information and coordinating activities in an attempt to
        prevent or curtail any activity of a fraudulent or suspected fraudulent
        nature. The Biller shall employ reasonable efforts to ensure resellers
        of the Biller's local telecommunications services will also cooperate
        with the Biller and the SP, as appropriate, in an attempt to prevent or
        curtail fraudulent activity.

Article 5       Rights and Responsibilities of the SP

5.1     Notwithstanding anything in this Agreement, the SP retains the
        discretion to determine which Eligible Services it offers to Customers
        and which Accounts Receivable it sells to the

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        Biller; however, the SP shall assign, transfer and set over all of its
        rights, title and interest in and to any Accounts Receivable sold by it
        to the Biller.

5.2     The SP will record all necessary billing details for all Eligible
        Services. The billing details will be provided to the Biller in
        accordance with the Billing and Collection Technical Guideline. The SP
        is solely responsible for the accuracy of the billing details provided
        to the Biller.

5.3     The SP will only submit to the Biller Accounts Receivable which are
        prescribed in this Agreement.

5.4     The SP will only submit collect and bill to third calls to the Biller
        which have been Validated.

5.5     For Accounts Receivable which are Rejected or Chargedback, the SP shall
        pay to the Biller the full amount of all payments including Taxes, made
        by the Biller to the SP, or issue credits for amounts owing by the
        Biller for those Accounts Receivable, in accordance with Articles 7 and
        8 herein.

5.6     The SP authorizes the Biller to use the name of the SP for the purpose
        of identifying the SP on whose behalf the transaction is being billed in
        the collection of all Accounts Receivable.

5.7     The SP shall provide, at its own expense, the inquiry telephone number
        referred to in Article 4.1 c) and must be accessible at the inquiry
        telephone number to respond to Customer inquiries at no charge. The SP
        or its designated agent must speak directly, or be able to demonstrate
        that it has made every reasonable effort to speak directly, to anyone
        who has contacted the SP via the inquiry telephone number within two (2)
        business days of receipt of any such contact.

5.8     The SP shall at the Biller's request, notify any person(s) concerned
        with the assignment of the Accounts Receivable or otherwise affected by
        it, of the fact that said assignment has been made.

5.9     The SP shall be responsible to employ reasonable efforts in an attempt
        to prevent or curtail fraudulent activity related to Eligible Services.
        The SP shall cooperate with the Biller in exchanging information and
        coordinating activities in an attempt to prevent or curtail activity of
        a fraudulent or suspected fraudulent nature. The SP shall employ
        reasonable efforts to ensure resellers of its services will also
        cooperate with the Biller and SP, as appropriate, in an attempt to
        prevent or curtail fraudulent activity.

Article 6       Taxation

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6.1     The Parties acknowledge that Taxes may apply to the charges for Eligible
        Services provided by the SP. The SP shall determine Taxes associated
        with Eligible Services to be levied on a Customer.

6.2     The SP shall calculate and identify to the Biller Taxes due on all
        Accounts Receivable forwarded to the Biller. The SP shall identify the
        GST/HST and PST by province.

6.3     The Biller shall bill and attempt to collect the Taxes unless the Biller
        identifies the Customer as Tax exempt for either, or both, of GST/HST
        and PST. If a Customer is Tax exempt, the appropriate Taxes will be
        removed by the Biller prior to billing. Any remaining Taxes will be
        recalculated by the Biller if necessary, and the revised Tax amounts
        will be billed. The Biller will report to the SP the amount of Taxes,
        that have been removed or adjusted as prescribed in the Billing and
        Collection Technical Guideline, identifying GST/HST and PST by province.

6.4     The Parties agree that whichever Party is responsible to remit Taxes to
        the appropriate government authorities, shall do so in a timely manner.

6.5     In any event, the SP shall indemnify and hold the Biller harmless for
        any outstanding Taxes, interest or associated penalties which may
        subsequently be claimed against the Biller, as purchaser of the Accounts
        Receivable, arising from the SP's failure to properly calculate, or to
        promptly notify the Biller, or to remit all applicable Taxes pursuant to
        Article 6.

6.6     The Biller shall indemnify and hold the SP harmless for any outstanding
        Taxes, interest and associated penalties which may subsequently be
        claimed against the SP arising from the Biller's failure to properly
        identify or calculate any Tax exemption or to remit all applicable Taxes
        pursuant to Article 6.4.

Article 7       Payment for Accounts Receivable

7.1     The Biller shall pay to the SP an amount equal to the full value of each
        Accounts Receivable recorded, less an Accounts Receivable Management
        Discount as detailed in the applicable Tariffs, less applicable Tax
        exemptions, less applicable Tax remittances and less all associated
        charges to the SP specified in this Agreement or the Biller's Tariffs
        including the full amount of each Accounts Receivable Rejected or
        Chargedback. The resulting amount will be paid to the SP within
        forty-five (45) days of the last day of the calendar month for which the
        Accounts Receivable was recorded by the Biller, and in the event that
        full payment is not made by this time, interest will subsequently accrue
        on any outstanding balance at the rate set out in the SP's applicable
        tariffs.

7.2     In the event that the Accounts Receivable Management Discount, plus the
        associated charges to the SP, plus applicable Tax exemptions, plus
        applicable Tax remittances, plus the full amount of all Accounts
        Receivable Rejected or Chargedback exceeds the till value of the

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        Accounts Receivable recorded during a calendar month, the SP shall pay
        to the Biller the difference forty-five (45) days from the last day of
        that month or thirty (30) days from the issuance by the Biller of an
        accounting for the month, whichever occurs later, and in the event that
        full payment is not made by this time, interest will subsequently accrue
        on any outstanding balance at the rate set out in the Biller's
        applicable Tariffs.

7.3     Following the expiration or termination of this Agreement, in the
        event that the Biller fails to collect Accounts Receivable from
        Customers, and such failure would have resulted in a Chargeback during
        the term of the Agreement, the SP shall pay the Biller the full amount
        of the Chargeback plus the associated charges within forty-five (45)
        days from the last day of the month during which the Chargeback occurs
        or thirty (30) days from the issuance by the Biller of an accounting
        for the month, whichever occurs later, and in the event that full
        payment is not made by this time, interest will subsequently accrue on
        any outstanding balance at the rate set out in the Biller's applicable
        Tariffs.

Article 8       Rates and Charges

In consideration of the Biller providing Billing and Collection Services to the
SP as described in this Agreement, the Biller shall charge the SP, and the SP
shall pay, rates and charges as detailed in the Biller's applicable Tariffs.

Article 9       Accounting to the SP

9.1     The Biller shall provide reports to the SP, including an accounting of
        the payment due to the SP for the Accounts Receivable purchased by the
        Biller. The reports will be provided as prescribed by the Billing and
        Collection Technical Guideline within forty-five (45) days of the last
        day of the calendar month for which the Account Receivable was recorded
        by the Biller.

9.2     Any report provided to the SP will be deemed to be correct unless the SP
        notifies the Biller of any discrepancy therein within thirty (30) days
        from the date the report is issued by the Biller.

9.3     In the event that an error is made by the Biller in the preparation of
        any report, the Biller's liability shall be limited to correcting the
        same and to modifying the report accordingly in the next issue of such
        reports.

Article 10     Limitation of Liability

10.1    The Biller's liability for direct damages shall be subject to the
        provisions regarding liability in its Tariffs or equivalent document.
        Without restricting the generality of the foregoing, the Biller will not
        be responsible to the SP for indirect, special, incidental or
        consequential damage or loss in connection with or arising out of the
        performance or non-performance of

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        the terms of this Agreement howsoever caused, including, without
        limiting the foregoing, any business or economic loss, notwithstanding
        that the Biller has been advised or is aware of the possibility thereof.

10.2    The SP will not be responsible to the Biller for indirect, special,
        incidental or consequential damage or loss in connection with or arising
        out of the performance or non-performance of the terms of this Agreement
        howsoever caused, including, without limiting the foregoing, any
        business or economic loss, notwithstanding that the SP has been advised
        or is aware of the possibility thereof.

10.3    The provisions of this Article 10 will survive the expiration or
        termination of this Agreement.

Article 11      Term

This Agreement will be deemed to come into force on the 1 day of January, 2002
and will continue afterwards for successive month-to-month periods under the
same terms and conditions unless and until terminated by either Party upon one
month's prior written notice to the other Party, or pursuant to the provisions
of this Agreement concerning termination.

Article 12      Termination

12.1    Except as provided hereinafter, in the event that either Party is in
        breach of any of the terms of this Agreement, or, without restricting
        the generality of the foregoing, of any laws applicable thereto,
        regulations or the Biller's applicable Tariffs, the other Party may, by
        notice to the Party in default, require the remedy of said breach or the
        performance of the obligations hereunder. If the Party so notified fails
        to remedy or perform within ten (10) days of the receipt of such notice,
        the other Party may, without prejudice to all its rights and remedies in
        respect of breach of contract, subject to the terms of this Agreement,
        terminate this Agreement, in whole or in part, as specified in Article
        12.7.

12.2    Where one Party (the Party in default) has received notification from
        the other Party (the Party not in default) pursuant to Article 12.1 of
        this Agreement and notwithstanding that the Party in default has
        remedied such breach or has performed said obligation, in the event at
        any time thereafter that such Party in default is found by the Party not
        in default to have breached or to have failed to perform in respect of
        the same provision(s) of this Agreement under which notification was
        first provided pursuant to Article 12.1, the Party not in default will
        have the right at its sole discretion to terminate this Agreement, in
        whole or in part, as specified in Article 12.7.

12.3    If, in the Biller's reasonable judgment, the provision of Billing and
        Collection Services under this Agreement gives rise to an unreasonable
        number of Customer complaints, the Biller may

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        terminate this Agreement. Notwithstanding Article 12.7 below, the Biller
        will provide thirty (30) days prior written notice to the SP for
        termination under this Article.

12.4    In the event that Chargebacks assocated with the SP's Accounts
        Receivable are at a level of 15% or more of the SP's total Accounts
        Receivable for a period of two (2) consecutive months, or if the Bad
        Debt associated with the SP's Accounts Receivable is at a level of 10%
        or more of the SP's total Accounts Receivable for a period of two (2)
        consecutive months, the Biller may at its sole discretion, terminate
        this Agreement as specified in Article 12.7.

12.5    Any termination of this Agreement for breach of any of its terms will be
        without prejudice to all rights and remedies available to the Party
        terminating this Agreement in respect of such breach.

12.6    Notwithstanding Article 12.7, if one of the Parties becomes insolvent or
        if insolvency or bankruptcy proceedings of any kind are initiated
        against a Party, if a Party is placed in receivership or if a Party has
        to perform a transfer of property in favour of its creditors or its
        property is placed under sequestration or is subject to liquidation, the
        other Party may, upon written notice, immediately terminate this
        Agreement.

12.7    Prior to termination of this Agreement, in whole or in Part, pursuant to
        Articles 12.1 or 12.2, the Party terminating the Agreement shall provide
        the other Party with ten (10) days prior written notice stating the
        reason for termination and the scheduled termination date. Additionally,
        at least twenty-four hours prior to termination, the Party terminating
        the Agreement shall advise the other Party that termination is imminent.

12.8    Without restricting the generality of the foregoing, all provisions of
        this Agreement regarding amounts payable to the Biller for Billing and
        Collection Services provided to the SP shall survive expiration or
        termination of this Agreement.

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Article 13      Dispute Resolution

Should a dispute or disagreement of any kind (a "Dispute") arise with respect to
the interpretation or application of this Agreement, the Parties agree to the
procedures described in this Article to resolve the issue.

13.1    Good Faith Negotiations

        a)  Good faith negotiations will take place between the Parties with the
            objective of resolving the Dispute.

        b)  If such good faith negotiations have not resolved the Dispute within
            thirty (30) days from when it is first identified, either Party may
            refer the matter in Dispute to the CRTC for resolution (for matters
            within the jurisdiction of the CRTC), or the Parties may agree to
            refer the Dispute to arbitration, in accordance with the process set
            forth below.

13.2    Early Referral to the CRTC or to a Court of Competent Jurisdiction

        At any time prior to the end of the thirty (30) day period for good
        faith negotiations, if either Party reasonably perceives that the matter
        must be dealt with on an urgent or priority basis, then that Party may
        refer the Dispute to the CRTC (for matters within the jurisdiction of
        the CRTC) or to a court of competent jurisdiction for resolution.

13.3    Arbitration

        a)  If the Dispute cannot be resolved by good faith negotiations within
            thirty (30) days from when it is first raised, the Parties may
            mutually agree to refer the issue to arbitration.

        b)  In the event that the Parties agree to refer the matter to
            arbitration, the arbitration will take place in accordance with the
            rules agreed to by the Parties and in compliance with applicable
            legislation and procedural convention.

13.4    Other Matters

        a)  The Parties recognize that the CRTC may establish a list of
            qualified arbitrators in telecommunications, and agree to refer to
            that list in considering a possible arbitrator.

        b)  In the absence of events giving rise to Force Majeure, during the
            entire period of the process to resolve a Dispute, the Parties will
            continue to perform their obligations under this Agreement.

Article 14      Non-Waiver

The failure of either Party, at any time, to require performance by the other
Party of any provision, condition or covenant hereof will, in no way, affect its
right thereafter to enforce the provision, condition or covenant, nor will the
waiver by either Party of any Breach of any provision, condition

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or covenant hereof be taken or held binding upon the Party, unless in writing,
and the waiver will not be taken or held to be a waiver of any future breach of
the same provision, condition or covenant.

Article 15      Further Assurances

Each Party will execute such further documents and do such further things as the
other Party may reasonably request in order to carry out and give full force and
effect to all of the provisions of this Agreement.

Article 16      Entire Agreement

This Agreement, together with all matters incorporated by reference, constitutes
the entire agreement between the Parties with regard to matters dealt with under
this Agreement and there are no other conditions or warranties, expressed,
implied or statutory, applicable to the subject matter hereof.

Article 17      Conflict

In the event of conflict between this Agreement, the Billing and Collection
Technical Guideline and the Tariff, the provisions of this Agreement shall
firstly prevail, secondly the provisions of the Billing and Collection Technical
Guideline, then lastly, the provisions of the Tariff.

Article 18      Year 2000 Warranty

18.1    The Parties confirm that they shall use commercially reasonable efforts
        to ensure that the Billing and Collection Service shall be "Year 2000
        Compliant" prior to September 1, 1999, which means that each Party will
        be able to accurately process date data (including, but not limited to,
        calculating, comparing, and sequencing) including leap year
        calculations, when used in accordance with the specifications for the
        Billing and Collection Service, provided that all products and services
        which interconnect with, or are used in combination with, the Billing
        and Collection Service are "Year 2000 Compliant" and properly exchange
        date data with it, and provided that no modifications or additions are
        made to the Billing and Collection Service other than those agreed to by
        the Parties.

18.2    Each Party has an obligation to advise the other Party if any product or
        service which interconnects with, or is used in combination with, the
        Billing and Collection Service is not "Year 2000 Compliant", and shall
        advise the other Party of the date by which such "Year 2000 Compliancy"
        will occur.

18.3    The warranties contained herein are subject to any limitation of
        liability specified in this Agreement.

                                                                   Page 13 of 19

<PAGE>

Article 19      Confidentiality

19.1    All Customer related information provided to either Party pursuant to
        this Agreement, including, but without restricting the generality of the
        foregoing, the name, telephone number and billing address of any
        Customer, may only be used for the purpose of billing Eligible Services
        or where specifically required for completion of a transaction
        associated with a service requested by the Customer (eg. certain 900
        services). Services requiring additional customer information will be
        identified in the Billing and Collection Technical Guideline.
        Notwithstanding the foregoing, either Party may disclose a Customer's
        name and address to an agent whom it has retained in the collection of
        Accounts Receivable, provided the information is required for and is to
        be used only for that purpose and appropriate safeguards have been
        implemented to protect the privacy of Customers including any
        restrictions on the use of non-published telephone numbers by third
        parties.

19.2    All information provided to either Party pursuant to this Agreement is
        provided in confidence for the exclusive use of the recipient Party.
        Each Party is responsible for protecting the confidentiality of this
        information and may not provide, disclose or resell this information to
        any third party, including, but without restricting the generality of
        the foregoing, any agents, affiliates or co-venturers other than as
        specified in this Agreement.

19.3    Notwithstanding any provision to the contrary in this Agreement, either
        Party may provide to its agent, authorized representative, subcontractor
        or assignee any information required for the performance of the
        requirements in this Agreement. Provided, however, that the agent,
        authorized representative, subcontractor or assignee has first entered
        into an agreement wherein the agent, authorized representative,
        subcontractor or assignee agrees to be bound by the confidentiality
        obligations in this Agreement.

19.4    Without limiting the generality of the foregoing, neither Party may use
        any information provided pursuant to this Agreement for telemarketing
        purposes. For the purposes of this Agreement, telemarketing shall
        include, but not be restricted to, the promotion by either Party or by
        any person or entity, of either Party or its services or products, or of
        a third party or its services or products, by any means.

Article 20      Assignment

20.1    Either Party is entitled to assign or transfer any of the rights,
        responsibilities or privileges in this Agreement, in whole or in part,
        without the prior approval of the other Party provided that written
        notice is given to the other Party.

20.2    This Agreement will be binding upon the respective successors and
        permitted assigns of the Parties.

                                                                   Page 14 of 19

<PAGE>

Article 21      Governing Law

The terms of this Agreement will be governed by the laws of the Province of
Ontario and the applicable laws of Canada. In the absence of a specification,
the laws of the province where the Biller has its registered office will apply.

Article 22      Regulatory Approval

22.1    This Agreement, including the rates, terms and conditions specified
        herein, and in the Tariffs, are subject to all applicable regulatory
        approvals. Such rates, terms and conditions may be amended from time to
        time in accordance with and subject to the approval of the CRTC or any
        other applicable Regulator.

22.2    If the CRTC exercises its forbearance powers under the
        Telecommunications Act such that the Billing and Collection Services
        tariff no longer applies with respect to the provision of Billing and
        Collection Services by the Biller to the SP, all documents incorporated
        into this Agreement by reference (including any Tariffs) shall be deemed
        to be an integral part of this Agreement in the form in which they exist
        immediately prior to such forbearance taking effect, and this Agreement
        shall continue in full force and effect notwithstanding such
        forbearance.

Article 23      Interpretation

23.1    The headings appearing in this Agreement have been inserted as a matter
        of convenience and for reference only and, in no way, define, limit or
        enlarge the scope or meaning of this Agreement or of any provisions
        hereof.

23.2    Whenever a word importing the singular number only is used in this
        Agreement, such word will include the plural and words importing either
        gender or firms or corporations will include the persons or other
        genders and firms or corporations where applicable. Any reference to the
        term of this Agreement will, unless the context otherwise requires, be
        deemed to include any renewals hereof.

Article 24      Severability

If any clause or clauses or part or parts of clauses in this Agreement be
illegal or unenforceable, it or they will be considered separate and severable
from this Agreement and the remaining provisions of this Agreement will remain
in full force and effect and will be binding upon the Parties as though the said
clauses or part or parts of clauses had never been included, provided, however,
that in the event that the removal of such clause or clauses renders this
Agreement ineffective in the assessment of the Biller, the Biller shall have the
right to terminate this Agreement as specified in Article 12.

                                                                   Page 15 of 19

<PAGE>

Article 25      No Partnership or Joint Venture

 This Agreement does not constitute a partnership or joint venture between the
 Biller and SP, nor does it constitute either Party as an agent of the other
 Party.

Article 26      Notices

26.1    Any notice or other communication hereunder will be in written form and
        will be sufficient if delivered personally, by facsimile or by pre-paid
        registered mail to the address of the SP as follows:

        Charles Zwebner, President
        Yak Communications (Canada) Inc
        55 Town Centre Court, Suite 610
        Scarborough, Ontario MlP 4X4
        Fax (416) 279-1372

        and to the Biller at the following address:

        Bell Canada -- Carrier Services
        Suite 1200 -- 250 Yonge Street
        Toronto, Ontario N5B 1C8
        Attention: Barry Dixon, Senior Vice President -- Carrier Services
        Fax (416) 593-7161

26.2    The date of receipt of such communications will be the first business
        day following the date sent if delivered personally or by facsimile, or,
        if sent by pre-paid registered mail will be deemed to be the fifth
        business day after the same will have been mailed, except in the event
        of a mail strike this latter presumption will not apply.

26.3    Either Party may change its address for notice without obtaining consent
        from the other Party, provided, however, that it notifies the other
        Party in writing of its new address.

Article 27      Force Majeure

Neither Party will be held liable for any delay or failure in performance of any
part of this Agreement in the event of force majeure or for any cause beyond the
reasonable control of the Party concerned. In particular, and without limiting
the above, the Parties will be excused from the performance of their obligations
under this Agreement where failure to comply with any of the terms or conditions
of this Agreement will be caused by an act of God, strike, walk out, public
enemy, war, civil commotion, riot, judicial or government order, other
requirement of law, events related to the failure of Customers or other entities
not under the control of either Party to resolve date-related computer problems,
or any other cause of whatsoever nature or kind beyond the reasonable control of
either Party.

                                                                   Page 16 of 19

<PAGE>

Article 28      Language

This Agreement has been prepared and drawn up in the English language at the
express wish of the Parties. Le present contrat a ete prepare et redige en
anglais a la demande expresse des parties.

                                                                   Page 17 of 19

<PAGE>

          IN WITNESS WHEREOF the Parties have executed this Agreement.

This 1st day of (month) November (year) 2001, in the city of Scarborough
     ---                --------        ----                 -----------
Province of Ontario by the SP Yak Communications (Canada) Inc.
            -------           --------------------------------
(PLEASE INSERT NAME)

                (Per /s/ Charles Zwebner     Signature
                     -----------------------
                )
                (    Charles Zwebner         Name
                )---------------------------

                (    President               Title
                 ---------------------------
                )
                (  (PLEASE PRINT OR TYPE NAME
                )   AND TITLE OF PERSON WHO
                (   ACTUALLY SIGNS)

                                      AND

This 12 day of (month) November (year) 2001, in the city of Toronto Province of
     --                --------        ----                 -------
Ontario by the Biller
-------

--------------------------
(PLEASE INSERT NAME)

                (Per /s/ Barry Dixon, Senior              Signature
                     ---------------------------------
                )
                (    Barry Dixon, Senior                  Name
                )-------------------------------------

                (    Vice President - Carrier Services    Title
                 -------------------------------------
                )
                (  (PLEASE PRINT OR TYPE NAME
                )   AND TITLE OF PERSON WHO
                (   ACTUALLY SIGNS)

                                                                   Page 18 of 19

<PAGE>

             Billing and Collection Services Agreement, Schedule I

Eligible Services

The Eligible Services for which Billing and Collection Services are provided
include the following:

Bill to Third Number
Collect
Caller Pays
Directory Assistance
Casual Calling
Sent Paid
Coin Telephone
Conference Calls
Messaging

                                                                   Page 19 of 19

<PAGE>

                                                                       CRTC 7516
                                                             ORIGINAL   PAGE 17F
                                                                   Part/Partie 2

      ACCESS SERVICES TARIFF FOR    /  TARIF DE SERVICES D'ACCES VISANT
INTERCONNECTION WITH INTEREXCHANGE  /  L'INTERCONNEXION AVEC LES FOURNISSEURS
                CARRIERS (IXC'S)    /  DE SERVICES INTERCIRCONSCRIPTIONS (FSI)
--------------------------------------------------------------------------------
                                    N
    ACCESS ARRANGEMENTS             |         INSTALLATIONS D'ACCES
                                    |
Item                                |Article
                                    |
42. Billing and Collection Service  |42. Service de facturation et de perception
                                    |
    1. Description of Service       |    1. Description du service
                                    |
    (a) The Company will provide    |    (a) La compagnie fournira un service
    Billing and Collection Service  |    de facturation et de preception pour
    for eligible message toll       |    les appels SICT admissibles, tels
    service calls, as defined       |    que definis dans le contrat de
    in the Company's Billing and    |    services de facturation et de percep-
    Collection Services Agreement,  |    tion de la compagnie, qui sont
    which are completed over the    |    achemines par l'entremise du reseau
    IXC's network, at the rates     |    du FSI, aux tarifs indiques en 3.
    specified in 3. below.          |    cidessous. Les service de facturation
    Billing and Collection          |    et de perception comprend ce qui
    Service includes:               |    suit:
                                    |
    (1) Preparation and rendering   |    (1) Etablissement et remise de
    of bills for charges purchased  |    factures pour les frais achetes du
    by the Company, from the IXC,   |    FSI par la compagnie correspondant
    which are associated with       |    aux appels admissibles fairs par
    eligible calls by customers     |    les abonnes du FSI qui ont egalement
    of the IXC who also maintain    |    un compte aupres de la compagnie.
    accounts with the Company.      |
                                    |
    (2) Collection of payments for  |    (2) Perception des paiements pour
    charges associated with eligible|    les frais correspondant aux appels
    calls made by customers of the  |    admissibles faits par les abonnes du
    IXC, including appropriate      |    FSI, y compris les taxes, lesquelles
    taxes which will be remitted    |    dovient etre remises par la FSI aux
    by the IXC to the appropriate   |    administrations appropriees.
    governments.                    |
                                    |
    (3) Answering of customer       |    (3) Response aux questions des abonnes
    questions regarding charges     |    protant sur les frais factures par la
    billed by the Company for       |    compagnie pour les appels admissibles
    eligible calls provided by the  |    fournis par la FSI, sauf les questions
    IXC, excluding questions about  |    visant a obtenir des precisions sur
    the details of the IXC's        |    les services, les tarifs, les struc-
    services,  rates, rate struc-   |    tures tarifaires du FSI et d'autres
    tures and similar matters.      |    sujets semblables.
                                    |
    (4) Application of credits and  |    (4) Application des credits et des des
    and adjustments to customer     |    rajustements au compte des abonnes,
    accounts, in accordance with    |    conformement aux procedures de
    billing and collection serv-    |    facturation et de preception qui sont
    ices procedures which are pro-  |    fournies au FSI de temps a autre par la
    vided to the IXC from time to   |    compagnie.
    time by the Company.            |
                                    |
    2. Terms and Conditions         |    2. Modalites
                                    |
    (a) The IXC must execute a      |    (a) Le FSI doit conclure avec la
    Billing and Collection Services |    compagnie un contrat de services de
    Agreement, which details the    |    facturation et de perception qui
    terms and conditions of the     |    precise les modalites regissant
    service, with the Company.      N    le service.

See page 3 for explanation of symbols/Voir liste des symboles page 3.
--------------------------------------------------------------------------------
Issued/Publication 1997 05 09       Effective date/Entree en vigueur 1997 07 01
Authority: Telecom. Decision        Cf. Decision Telecom. CRTC 97-6 Du 10
CRTC 97-6 April 10, 1997.           avril 1997.

<PAGE>

                                                                       CRTC 7516
                                                               ORIGINAL PAGE 17G
                                                                   Part/Partie 2

ACCESS SERVICES TARIFF FOR          |  TARIF DE SERVICES D'ACCES VISANT
INTERCONNECTION WITH INTEREXCHANGE  |  L'INTERCONNEXION AVEC LES FOURNISSEURS
                  CARRIERS (IXC'S)  |  DE SERVICES INTERCIRCONSCRIPTIONS (FSI)
------------------------------------------------------------------------------
                                    N
     ACCESS ARRANGEMENTS            |         INSTALLATIONS D'ACCESSS
                                    |
Item                                |   Article
                                    |
42. Billing and Collection Service  |42. Service de facturation et de perception
                                    |
   3. Rates                         |   3. Tarifs
                                    |
   (a) An Accounts Receivable       |      (a) Une reduction au titre de la
   Management discount will apply   |      gestion des comptes d'abonnes sera
   to each account receivable       |      appliquee a chaque compte d'abonne
   purchased from the IXC.          |      achete d'un FSL
                                    N
-------------------------------------------------------------------------------
   (b)                                                             Charge/Frais
-------------------------------------------------------------------------------

Accounts Receivable Manangement          Reduction au titre de la gestion des
discount, as a percentage                comptes d'abonnes, en pourcentage de la
of the value of the accounts             valeur des comptes d'abonnes
receivable purchased.....                achetes....................   2.51%

-------------------------------------------------------------------------------
   (c) Processing charges per       N      (c) Des frais de traitement par
   account receivable purchased from|      compte d'abonne achete d'un FSI
   the IXC will apply each time an  |      seront exigibles chaque fois qu'un
   account receivable is:           |      compte d'abonne est:
                                    |
   i)   returned prior to billing   |      i)   retourne avant la facturation
   ii)  billed to a customer, or    |      ii)  facture a un abonne, ou
   iii) returned or charged back to |      iii) retourne ou retrofacture au FSI
        the IXC after billing.      |           apres la facturation.
                                    N
-------------------------------------------------------------------------------
   (d)                                                             Charge/Frais
-------------------------------------------------------------------------------

Processing charge per account               Frais de traitement par compte
receivable returned prior to billing.       d'abonne retourne avant
                                            la facturation............. $0.0349

Processing charge per account receivable    Frais de traitement par
billed.                                     compte d'abonne facture....  0.1163

Processing charge per account receivable    Frais de traitement par
returned or charged back after billing      compte d'abonne retourne
                                            ou retrofacture apres la
                                            facturation................  5.44
--------------------------------------------------------------------------------

See page 3 for explanantion of symbols/Voir liste des symboles page 3.
--------------------------------------------------------------------------------
Issued/Publication 1997 05 09       Effective date/Entree en vigueur 1997 07 01
Authority: Telecom. Decision        Cf. Decision Telecom. CRTC 97-6 du 10
CRTC 97-6 April 10, 1997.           avril 1997.<PAGE>

                                                                    EXHIBIT 10.8

RECEIVABLES SALE AGREEMENT (the "Agreement"), dated as of February 8, 2002, by
and between YAK COMMUNICATIONS (CANADA) INC. ("YakCan"), an Ontario corporation,
as a Seller and Subservicer, YAK COMMUNICATIONS (AMERICA), INC. ("YakAmerica"),
a Florida corporation, as a Seller (collectively with YakCan, the "Seller"), YAK
COMMUNICATIONS (USA), INC. ("YakUSA"), a Florida corporation, as a Guarantor,
YakCan, as a Guarantor, YakAmerica, as a Guarantor (collectively with YakCan and
YakUSA, the "Guarantor") and TEXTRON FINANCIAL CANADA LIMITED, an Ontario
corporation, as Purchaser and Master Servicer.

                              W I T N E S S E T H:

         WHEREAS, the Seller desires to sell its receivables and the Purchaser
is a corporation formed for the purpose of purchasing certain receivables,
including from time to time;

         WHEREAS, the Purchaser shall, acting in its capacity as the Master
Servicer, retain the complete right and ultimate authority to perform certain
servicing, administrative and collection functions in respect of the receivables
purchased by the Purchaser under this Agreement;

         WHEREAS, the Purchaser and the Master Servicer desire that the
Subservicer be appointed to perform certain servicing, administrative and
collection functions in respect of the Purchased Receivables; and

         WHEREAS, the Seller has been requested and is willing to act as the
Subservicer.

         NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

1.1      Certain Defined Terms.

The capitalized terms used in this Agreement shall have the respective meanings
set forth on Exhibit A to this Agreement.

1.2      Other Terms.

All accounting terms not specifically defined in this Agreement shall be
construed in accordance with generally accepted accounting principles. All terms
defined in the PPSA, and not specifically defined in this Agreement, are used in
this Agreement as defined in the PPSA.

                                   ARTICLE II
                  PURCHASE AND SALE; ESTABLISHMENT OF ACCOUNTS

2.1      Assignment of Universality of Claims.

In consideration for the payments to be received by it in accordance with this
Agreement, and for other good and valuable considerations, each of YakCan and
YakAmerica hereby sells, transfers, assigns and sets over to the Purchaser the
universality (as such term is used in the Civil Code of Quebec) of all of its
present and future accounts receivable (including all of its present and future
customer accounts as such term is used in Article 2684 of the Civil Code of
Quebec), including, for greater certainty, all of its present and future
Receivables. Seller shall provide the Purchaser with a list of Eligible
Receivables (the "List") which List shall be delivered by the Seller to the
Purchaser no later than two (2) Business Days prior to each Purchase Date.

2.2      Purchase of Receivables.

Until the occurrence of a Termination Date, upon receipt of the List, the Master
Servicer, in its sole discretion, will confirm which of the Eligible Receivables
listed in the List that the Purchaser will retain as Purchased Receivables.

<PAGE>

The retention of such Eligible Receivables as Purchased Receivables shall occur
upon payment of the applicable Purchase Price, as provided at Section 2.3 of
this Agreement. All present and future accounts receivable (including all of its
present and future customer accounts as such term is used in Article 2684 of the
Civil Code of Quebec) of the Seller and other Receivables of the Seller existing
on a Purchase Date which the Purchaser shall not retain as Purchased Receivables
on such Purchase Date shall be deemed to be automatically re-assigned to the
Seller by the Purchaser, without any representation or warranty of any kind
whatsoever by the Purchaser. Upon retention of the Eligible Receivables as
Purchased Receivables, Seller will be deemed, for greater certainty and without
prejudice to Section 2.1 above, to have confirmed that it has sold, transferred,
assigned, set over and conveyed to Purchaser, without recourse except as
expressly provided herein, all of Seller's right, title and interest in and to
the Purchased Receivables, and that title to such Purchased Receivables has
passed to Purchaser. The Seller shall not take any action inconsistent with such
ownership and, from and after the date hereof, shall not claim any ownership in
any Purchased Receivable. Documents relating to the Purchased Receivables shall
be held in trust by the Seller and the Subservicer, for the benefit of the
Purchaser as the owner of the Purchased Receivables, and possession of any
Required Information relating to the Purchased Receivables so retained is for
the sole purpose of facilitating the servicing of the Purchased Receivables and
carrying out the terms of this Agreement. Such retention and possession is at
the will of the Purchaser and in a custodial capacity for the benefit of the
Purchaser only.

<PAGE>

2.3      Purchase Price and Payment.

The Purchase Price for Receivables retained by Purchaser as Purchased
Receivables on any Purchase Date and paid by the Purchaser to the Seller shall
be an amount equal to the aggregate Net Value of such Purchased Receivables and
shall be paid by the Purchaser to the Seller by wire transfer on such respective
Purchase Date. The Purchase Price to be paid on such Purchase Date shall be
reduced by (a) the Program Fees as of such Purchase Date, (b) the amount, if
any, by which the Seller Credit Reserve Account (net of withdrawals required
hereunder) is less than the Specified Credit Reserve Balance as of such Purchase
Date, (c) any Rejected Receivable Amount, and (d) other amounts due the
Purchaser in accordance with this Agreement. At no time shall the aggregate Net
Value of all Purchased Receivables exceed the Purchase Commitment.

2.4      Establishment of Accounts; Conveyance of Interests Therein;
         Investments.

          (a)  A Blocked Account, pursuant to Blocked Account Agreement,
               acceptable to the Purchaser, with providers, acceptable to the
               Purchaser, will be established or assigned, as the case may be,
               for the benefit of the Purchaser into which all Collections from
               Payors with respect to Receivables shall be deposited. The
               Blocked Account will be maintained at the expense of the Seller.
               The Seller agrees to deposit all Collections it receives with
               respect to Receivables in the Blocked Account and will instruct
               all Payors to make all payments on Receivables to the Blocked
               Account. All funds in the Blocked Account will be remitted to the
               Collection Account as instructed by the Master Servicer.

          (b)  The Purchaser has established and shall maintain the "Collection
               Account" (the "Collection Account"), the "Purchase Account" (the
               "Purchase Account") and the "Seller Credit Reserve Account" (the
               "Seller Credit Reserve Account").

          (c)  The Seller does hereby sell, transfer, assign, set over and
               convey to the Purchaser all right, title and interest of the
               Seller in and to all amounts deposited, from time to time, in the
               Blocked Account, the Collection Account and the Seller Credit
               Reserve Account. Any Collections relating to Receivables held by
               the Seller or the Subservicer pending deposit to the Blocked
               Account as provided in this Agreement, shall be held in trust for
               the benefit of the Purchaser until such amounts are deposited
               into the Blocked Account. All Collections in respect of Purchased
               Receivables received by the Seller and not deposited directly by
               the Payor in the Blocked Account shall be remitted to the Blocked
               Account on the day of receipt or the following Business Day if
               the day of receipt is not a Business Day, and if such Collections
               are not remitted by Seller on a timely basis within two (2) days
               of receipt, in addition to its other remedies hereunder, the
               Purchaser shall be entitled to receive a late charge (which shall
               be in addition to the Program Fee) equal to 25% per annum of such
               Collections or the maximum rate legally permitted if less than
               such rate, calculated as of the first Business Day of such
               delinquency.

          (d)  Notwithstanding anything to the contrary herein, in the event
               that the Net Value of outstanding Purchased Receivables exceeds
               the Purchase Commitment (using the Equivalent Amount of Canadian
               Dollars in the case of the Purchase Commitment being denominated
               in U.S. Dollars), such excess shall become immediately payable to
               the Purchaser. Except as expressly provided otherwise in this
               agreement, the foregoing shall not be construed to permit the
               existence of any excess, which shall be in the discretion of the
               Purchaser.

2.5      Grant of Security Interest.

It is the intention of the parties to this Agreement that each payment of the
Purchase Price by the Purchaser to the Seller for Purchased Receivables to be
made under this Agreement shall constitute payment of consideration for a
purchase of such Purchased Receivables and not a loan. In the event, however,
that a court of competent jurisdiction were to hold that the transaction
evidenced by this Agreement constitutes a loan and not a purchase and sale, it
is the intention of the parties that this Agreement shall constitute a security
agreement under the PPSA, the UCC and any other applicable law, and that the
Seller shall be deemed to have granted to the Purchaser, without limitation to
any other provisions hereof, as security for all its obligations hereunder, a
continuing first priority perfected security

<PAGE>

interest in, lien on, hypothecation of and assignment of all of the Seller's
right, title and interest in, to and under the Purchased Receivables; all
payments of principal of or interest on such Purchased Receivables; all amounts
on deposit from time to time in the Blocked Account, the Collection Account and
the Seller Credit Reserve Account; all other rights relating to and payments
made under this Agreement, and all proceeds of any of the foregoing. The Seller
shall mark its books and records as may be necessary or appropriate to evidence,
protect and perfect the Purchaser's security interest, lien, charge,
hypothecation and assignment and shall cause its financial statements to reflect
such security interest.

2.6      Further Action Evidencing Purchases.

The Seller agrees that, from time to time, at its expense, it will promptly
execute and deliver all further instruments and documents, and take all further
action, that may be necessary or appropriate, or that the Purchaser may
reasonably request, in order to perfect, protect or more fully evidence the
transfer of ownership of the Purchased Receivables or to enable the Purchaser to
exercise or enforce any of its rights hereunder. The Seller further agrees that
the Purchaser may file applications for registration under the Civil Code of
Quebec in order to perfect, protect or more fully evidence the transfer of
ownership of the Receivables.

                                  ARTICLE III
                             CONDITIONS OF PURCHASES

3.1      Conditions Precedent to All Purchases.

Each Purchase shall be subject to the conditions precedent that as of each
Purchase Date:

          (a)  No Event of Seller Default has occurred and the Seller is in
               compliance with each of its covenants and representations set
               forth in Sections 4.1 and 4.2 of this Agreement;

          (b)  The Seller shall have delivered to the Purchaser a complete copy
               of each of the then current Carrier Agreements, Clearinghouse
               Agreements, Billing and Collection Agreements and Blocked Account
               Agreements and any amendment or modification of such agreements;

          (c)  (i) a determination, in the Purchaser's sole discretion, that the
               Seller is in compliance with any and all regulatory and
               administrative requirements which will include, but not be
               limited to, compliance with any and all tax obligations, and (ii)
               Purchaser's receipt of personal background checks on certain of
               the Seller's shareholders, directors or managers, the results of
               which are acceptable to Purchaser, in its sole determination;

          (d)  All necessary legislative, regulatory, governmental and other
               third party approvals, notices, consents, licences and permits
               including those necessary to perform this agreement and the
               Related Documents and to carry on the Seller's business shall
               have been given and obtained and all such approvals, notices,
               consents, licences and permits shall not contain any terms or
               conditions which the Purchaser reasonably considers to be
               materially adverse to the Seller or the Purchaser and their
               position and evidence thereof shall have been furnished to the
               Purchaser;

          (e)  The Purchaser shall be satisfied with the results of all personal
               property and other searches and enquiries conducted in respect of
               the Seller's and its property and assets as the Purchaser's
               counsel may reasonably require and such discharges to terminate
               liens and/or estoppel letters (to confirm the amounts secured by
               any existing encumbrances and the collateral covered thereby)
               shall be received by the Purchaser as may be required by the
               Purchaser in its discretion;

          (f)  The Seller shall have paid all reasonable fees and expenses of
               the Purchaser's counsel, Ogilvy Renault, and all special local
               counsel retained, and all other reasonable fees and expenses of
               the Purchaser incurred in connection with any of this agreement
               and the Related Documents and the transactions contemplated
               thereby, including without limitation, all audit and appraisal
               fees;

          (g)  The Seller shall be obligated to pay to the Purchaser a
               commitment fee in an amount equal to the sum of four percent
               (4.00%) of the Purchase Commitment (or the Equivalent Amount
               thereof).

<PAGE>
               Such commitment fee is fully earned and non-refundable and shall
               be payable in two equal instalments of two percent (2.00%) of the
               Purchase Commitment (or the Equivalent Amount thereof), with the
               first instalment due on the Closing Date and the second
               instalment due on the first anniversary of the Closing Date,
               provided, however, the entire unpaid portion of such fee shall be
               immediately payable upon the occurrence of an Event of Seller
               Default. Any increases in the commitment amount agreed to by
               Seller and Purchaser will bear an additional commitment fee of
               two percent (2.00%) per annum under the payment terms noted
               herein;

          (h)  YakUSA shall have delivered to Purchaser on the Closing Date and
               the last day of each calendar month (a) an Officer's Certificate
               evidencing sufficient cash and committed financing to fund the
               consolidated business plan of YakCan and (b) an Officer's
               Certificate calculating Free Cash Flow of YakUSA, and in the
               event that Free Cash Flow for any month is less than zero, Seller
               shall at all times maintain unrestricted cash or cash equivalents
               (including, without limitation, marketable securities or the cash
               equivalent of any available but unused Purchase Commitment
               existing on the date of determination) of not less than five (5)
               times the absolute value of Free Cash Flow as of the date of Free
               Cash Flow determination;

          (i)  The Seller shall have delivered to the Purchaser a copy of each
               written notice delivered by or received by either the Carrier,
               Billing and Collection Agent, Clearinghouse Agent or the Seller
               with respect to any Carrier Agreements, Clearinghouse Agreements
               and/or the Billing and Collection Agreements;

          (j)  The Termination Date shall not have occurred;

          (k)  The Purchaser shall have received, on or before the initial
               Purchase Date, a Payout Letter, in form and substance
               satisfactory to the Purchaser and its counsel, from SLF Sales
               Linked Finance Ltd.; and

          (l)  The Seller shall have taken such other action, including but not
               limited to, prior to the initial Purchase Date, the delivery of
               (a) an opinion of counsel in form and substance satisfactory to
               Purchaser and its counsel, (b) a chart of the corporate structure
               of the Seller and the Guarantor set out in Schedule 6 hereto, (c)
               interim financial statements of the Seller for the fiscal year to
               date period ending December 31, 2001, (d) release documentation
               evidencing the full and final release from all existing lenders
               who have an interest or lien in the accounts receivable and
               Customer Base of the Seller, (e) any and all subordination
               agreements required by the Purchaser, including without
               limitation, a subordination agreement from YakUSA, (f) evidence
               of the conversion of a $466,000 promissory note payable to
               Anthony Heller to equity of YakCan, (g) an Assignment of Life
               Insurance Agreement in favour of the Purchaser, as assignee, in
               respect of a $1,000,000 policy on the life of Charles Zwebner,
               and (h) such other approvals, opinions or documents, including
               without limitation the Blocked Account Agreement, to the
               Purchaser, as the Purchaser may request, in form and substance
               satisfactory to Purchaser.

                                   ARTICLE IV
             REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER

4.1      Representations, Warranties and Covenants as to the Seller.

The Seller represents and warrants to the Purchaser and Master Servicer , as of
the date of this Agreement and as of each subsequent Purchase Date, as follows:

          (a)  YakCan and YakAmerica are corporations duly organized, validly
               existing and in good standing under the laws of the Province of
               Ontario and under the laws of the State of Florida, respectively
               and are duly qualified to do business and are in good standing in
               each jurisdiction in which they are doing business and have the
               power and authority to own and convey all of their respective
               properties and assets and to execute and deliver this Agreement
               and the Related Documents and to perform the transactions
               contemplated thereby; and each is the legal, valid and binding
               obligation

<PAGE>

               of the Seller enforceable against the Seller in accordance with
               its terms subject to bankruptcy, insolvency, reorganization and
               other laws affecting the rights of creditors and the fact that
               specific performance and injunction are equitable remedies
               available only in the discretion of the court;

          (b)  The execution, delivery and performance by the Seller of this
               Agreement and the Related Documents and the transactions
               contemplated thereby (i) have been duly authorized by all
               necessary corporate or other action on the part of the Seller,
               (ii) do not contravene or cause the Seller to be in default under
               (A) any contractual restriction contained in any loan or other
               agreement or instrument binding on or affecting the Seller or its
               property; or (B) any law, rule, regulation, order, writ,
               judgment, award, injunction, or decree applicable to, binding on
               or affecting the Seller or its property and (iii) does not result
               in or require the creation of any Adverse Claim upon or with
               respect to any of the property of the Seller (other than in
               favour of the Purchaser as contemplated hereunder);

          (c)  There is no court order, judgment, writ, pending or, to the
               knowledge of the Seller, threatened action, suit or proceeding,
               of a material nature against or affecting the Seller, its
               officers or directors, or the property of the Seller, in any
               court or tribunal, or before any arbitrator of any kind or before
               or by any Governmental Authority (i) asserting the invalidity of
               this Agreement or any of the Related Documents, (ii) seeking to
               prevent the sale and assignment of any Receivable or the
               consummation of any of the transactions contemplated thereby,
               (iii) seeking any determination or ruling that might materially
               and adversely affect the Seller, this Agreement, the Related
               Documents, the Receivables, the Contracts or any LOA, or (iv)
               asserting a claim for payment of money in excess of Cdn.$50,000
               (or the Equivalent Amount thereof);

          (d)  The primary business of the Seller is the provision of
               telecommunication services and/or equipment. All license numbers
               issued to the Seller by any Governmental Authority are set forth
               on Schedule 3 and the Seller has complied in all material
               respects with all applicable laws, rules, regulations, orders and
               related Contracts and all restrictions contained in any agreement
               or instrument binding on or affecting the Seller, and has and
               maintains all permits, licenses, certifications, authorizations,
               registrations, approvals and consents of Governmental Authorities
               or any other party necessary for the business of the Seller and
               each of its subsidiaries;

          (e)  (i) The Seller has filed on a timely basis all tax returns
               (federal, provincial, and local) required to be filed and has
               paid or made adequate provisions for the payment of all taxes,
               assessments, and other governmental charges due from the Seller;
               (ii) the financial statements of the Seller, copies of which have
               been furnished to the Purchaser, fairly present the financial
               condition of the Seller, all in accordance with generally
               accepted accounting principles consistently applied; (iii) since
               June 30, 2001, there has been no material adverse change in any
               such condition, business or operations of the Seller; and (iv)
               YakCan has delivered to the Purchaser (a) within 30 days after
               the end of each month, internally prepared monthly financial
               statements, including balance sheet and income statement prepared
               in accordance with generally accepted accounting principles, of
               YakCan and YakAmerica as of the end of such month certified by an
               officer of YakCan, accompanied by a management narrative
               summarizing circumstances and issues underlying such financial
               statements and facing YakCan and YakAmerica going forward, (b)
               within 90 days after the end of the fiscal year of YakUSA
               beginning with the year ending June 30, 2001, YakUSA's
               consolidated year end financial statements and consolidated
               audited financial statements, including balance sheet and income
               statement (including consolidating schedules for the Seller)
               prepared in accordance with U.S. generally accepted accounting
               principles and prepared by an accounting firm acceptable to
               Purchaser and (c) the Seller has provided to the Purchaser any
               and all other information which Purchaser may reasonably request,
               and the Seller shall provide the Purchaser access to its
               facilities to review the foregoing and all other books and
               records of the Seller.

          (f)  All information furnished by or on behalf of the Seller to the
               Master Servicer or the Purchaser in connection with this
               Agreement is true and complete in all material respects and does
               not omit to state a material fact and the sales of Purchased
               Receivables under this Agreement are made by the

<PAGE>

               Seller in good faith and without intent to hinder, delay or
               defraud present or future creditors of the Seller;

          (g)  The Blocked Account is the only Account to which Payors and
               future Payors have been or will be instructed to direct
               Receivable proceeds and each Payor of an Eligible Receivable has
               been directed upon its receipt of the notice, a form of which has
               been provided by Purchaser to Seller, which such notice was
               mailed or provided to such Payors prior to the initial Purchase
               Date, to remit all payments with respect to such Receivable for
               deposit in the Blocked Account;

          (h)  The principal place of business and chief executive office of
               each Seller is located at the address of such Seller set forth
               under its signature below and there are not now, and during the
               past four months there have not been, any other locations where
               the Seller is located or keeps Records except as set forth in the
               designated space beneath its signature line in this Agreement;

          (i)  The legal name of the Seller is as set forth at the beginning of
               this Agreement and YakCan has not changed its legal name since
               October 15, 1998 and Yak America has not changed its legal name
               since March 8, 2001 , and during such period, the Seller did not
               use, nor does the Seller now use any tradenames, fictitious
               names, assumed names or "doing business as" names other than
               those appearing on Schedule 4 hereof;

          (j)  The Seller has not done anything to impede or interfere with the
               collection by the Purchaser of the Purchased Receivables and has
               not amended, waived or otherwise permitted or agreed to any
               deviation from the terms or conditions of any Purchased
               Receivable or any related Carrier Agreement, Clearinghouse
               Agreement, Billing and Collection Agreement, Contract or LOA so
               as to (i) create an Adverse Claim with respect to any Receivable
               or (ii) materially affect the ability of Subservicer or the
               Master Servicer to act in its capacity as such; and has not
               allowed any invoice due and owing by the Seller relating to any
               Carrier Agreement, Clearinghouse Agreement or Billing and
               Collection Agreement to become any more than thirty days past
               due; and

          (k)  For income tax reporting and accounting purposes, the Seller will
               treat the sale of each Purchased Receivable pursuant to this
               Agreement as a sale of, or absolute assignment of its full right,
               title and ownership interest in such Purchased Receivable to the
               Purchaser, which treatment shall be reflected as a note to its
               financial statements.

4.1A     Affirmative Covenants of the Seller.

The Seller further covenants and agrees that it shall, until the termination of
this agreement:

          (a)  Except as otherwise provided by this agreement, pay to the
               Purchaser on demand, or by any other method of payment provided
               for herein, all fees and expenses provided for in this agreement
               or in the Related Documents, including without limitation, in
               connection with the establishment and maintenance of any accounts
               including Blocked Accounts. The Purchaser may, without making
               demand, charge the accounts of the Seller outlined herein for all
               such fees and expenses.

          (b)  Conduct continuously and operate actively its business according
               to good business practices and maintain all of its properties
               necessary in its business;

          (c)  Keep in full force and effect its existence and comply in all
               material respects with the laws and regulations governing the
               conduct of its business;

          (d)  Make all such reports and pay all such franchise and other taxes
               and license fees and do all such other acts and things as may be
               lawfully required to maintain its rights, licenses, leases,
               powers and franchises under all applicable laws, its property,
               operations, business, prospect or condition (financial or
               otherwise);

<PAGE>

          (e)  Operate its business in compliance in all material respects with
               all applicable laws and promptly notify the Purchaser in writing
               of any violation or alleged violation of which it becomes aware
               of any law, statute, regulation or ordinance of any governmental
               entity, or of any agency thereof, applicable to Seller which may
               materially adversely affect the Seller's business, property,
               assets, operations or condition or prospects (financial or
               otherwise);

          (f)  The Seller has provided to the Purchaser any and all other
               information which Purchaser may reasonably request, and the
               Seller shall provide the Purchaser reasonable access to its
               facilities during regular business hours to review the foregoing
               and all other books and records of the Seller;

          (g)  Provide the Purchaser with a notice on or before the ninetieth
               (90th) day before the End Date or Voluntary Termination Date.
               Such notice shall outline either (a) that the Seller will satisfy
               and pay all the outstanding obligations and indebtedness owed to
               the Purchaser under and pursuant to this agreement on or before
               the Termination Date, (b) that the Seller wishes to renew this
               agreement and will enter into good faith negotiations to do so
               with the Purchaser, or (c) that the Seller requests that all
               Purchases cease on the Termination Date. Should the Seller pursue
               option (c), the Purchaser, in its sole discretion, may continue
               to make Purchases up to and including the Termination Date. If
               the Purchaser continues to make such Purchases, this Agreement,
               in its entirety, will be in full force and effect until the close
               of Business on the ninetieth (90th) day after the Termination
               Date. During such period, a commitment fee, mutually agreeable to
               the Seller and Purchaser, shall be paid by the Seller immediately
               after the Termination Date which shall be fully earned and
               non-refundable on such date; and

          (h)  Provide the Purchaser with reasonable access to the Seller's
               facilities to allow the Purchaser to conduct four annual post
               closing field audits (all Purchaser's costs and expenses of such
               audits shall be paid by the Sellers).

4.2      Representations and Warranties of the Seller as to Purchased
         Receivables.

With respect to each Purchased Receivable retained pursuant to this Agreement
the Seller represents and warrants, as of the date hereof and as of each
subsequent Purchase Date, as follows:

          (a)  Such Purchased Receivable (i) includes all the Required
               Information; (ii) is, or will be upon billing, the liability of
               an Eligible Payor and (iii) was created by the provision or sale
               of telecommunication services or equipment by the Seller in the
               ordinary course of its business; (iv) has a Purchase Date no
               later than 90 days from its Billing Date; (v) is not a Purchased
               Receivable with respect to which, as of any Determination Date,
               payment by the Payor of such Receivable has been received in full
               and is not duplicative of any other Receivable; and (vi) is owned
               by the Seller free and clear of any Adverse Claim, and the Seller
               has the right to sell, assign and transfer the same and interests
               therein as contemplated under this Agreement and no consent other
               than those secured and delivered to the Purchaser on or prior to
               the Closing Date from any Governmental Authority, the Payor, a
               Carrier, the Billing and Collection Agent, the Clearinghouse
               Agent or any other Person shall be required to effect the sale of
               any such Purchased Receivable;

          (b)  The Billed Amount of such Purchased Receivable is payable in
               Canadian Dollars and the Eligible Receivable Amount with respect
               thereto, unless the Purchaser and Seller agree otherwise in
               writing, is not in excess of U.S.$22,500 (or the Equivalent
               Amount) or five percent (5%) of the aggregate Net Value with
               respect to any one individual Payor of any Payor Class other than
               an Eligible Receivable payable by Bell Canada (Quebec), Bell
               Canada (Ontario) and Telus Corporation, and is net of any
               adjustments or other modifications contemplated by any Carrier
               Agreement, Clearinghouse Agreement, Billing and Collection
               Agreement or otherwise and, neither the Receivable nor the
               related Carrier Agreement, Clearinghouse Agreement, Billing and
               Collection Agreement or Contract has been compromised, adjusted,
               extended, satisfied, subordinated, rescinded, set-off or modified
               by the Seller, the Payor, the Carrier, the Clearinghouse Agent or
               the Billing and Collection Agent, and is not subject to
               compromise,

<PAGE>

               adjustment, termination or modification, whether arising out of
               transactions concerning the Contract, any Carrier Agreement,
               Clearinghouse Agreement, Billing and Collection Agreement or
               otherwise; and

          (c)  To the Seller's knowledge there are no procedures or
               investigations pending or threatened before any Governmental
               Authority (i) asserting the invalidity of such Receivable,
               Carrier Agreement, Clearinghouse Agreement, Billing and
               Collection Agreement, LOA or such Contract, (ii) asserting the
               bankruptcy or insolvency of the related Payor, (iii) seeking the
               payment of such Receivable or payment and performance of the
               related Carrier Agreement, Clearinghouse Agreement, Billing and
               Collection Agreement, or such other Contract or LOA, or (iv)
               seeking any determination or ruling that might materially and
               adversely affect the validity or enforceability of such
               Receivable or the related Carrier Agreement, Clearinghouse
               Agreement, Billing and Collection Agreement, or such other
               Contract or LOA.

4.3      Negative Covenants of the Seller.

The Seller shall not, without the written consent of the Purchaser,:

          (a)  Sell, assign or otherwise dispose of, or create or suffer to
               exist any Adverse Claim or lien upon any Receivable and related
               Contracts, its Customer Base, the Blocked Account, the Collection
               Account, or any other account in which any Collections of any
               Receivable are deposited, or assign any right to receive income
               in respect of any Receivable;

          (b)  Submit or permit to be submitted to Payors any invoice for
               telecommunication or internet services or equipment rendered by
               or on behalf of Seller which contains a "pay to" address other
               than the Blocked Account;

          (c)  Without the written notice of the Purchaser and the Master
               Servicer, which consent will not be unreasonably withheld, make
               any change to (i) the location of its chief executive office or
               the location of the office where Records are kept or (ii) its
               corporate name or use any tradenames, fictitious names, assumed
               names or "doing business as" names other than those listed on
               Schedule 4 hereof;

          (d)  Enter into or execute any Clearinghouse Agreement or Billing and
               Collection Agreement (other than those listed on Schedule 5
               hereof) or any amendment or modification thereof;

          (e)  Make any payments or distributions, whether in respect of debt
               obligations, management fees, or otherwise, to Guarantor or any
               affiliate thereof; or

          (f)  Assume by any means whatsoever, whether arising at law or
               otherwise, any liability, expense or other obligations of
               Guarantor or any affiliate thereof.

4.4      Repurchase Obligations.

Upon discovery by any party to this Agreement of a breach of any representation
or warranty in Sections 4.1 or 4.2 of this Article IV which materially and
adversely affects the value of a Purchased Receivable or the interests of the
Purchaser therein (herein a "Rejected Receivable"), the party discovering such
breach shall give prompt written notice to the other parties to this Agreement.
Thereafter, on the next Purchase Date, the Net Value of the Rejected Receivables
shall be deducted (as provided for in Section 2.3) from the amount otherwise
payable to the Seller pursuant to Section 2.3 and in satisfaction of the
Rejected Receivable Amount and, provided the full Net Value of such Rejected
Receivables is deposited in the Collection Account, such Rejected Receivables
shall then be considered to have been repurchased by the Seller. In the event
that the full Net Value of such Rejected Receivables is not deposited in the
Collection Account pursuant to the foregoing sentence, the Purchaser shall
deduct any such deficiency from the Excess Collection Amount or make demand upon
the Seller to pay, and the Seller shall immediately wire, any such deficiency to
the Purchaser for deposit to the Collection Account. Upon full payment of

<PAGE>

the amounts set forth above to the Collection Account, the Seller will be deemed
to have repurchased such Rejected Receivable.

                                   ARTICLE V
                             ACCOUNTS ADMINISTRATION

5.1      Collection Account.

The Purchaser and the Master Servicer acknowledge that certain amounts deposited
in the Collection Account may relate to Receivables other than Purchased
Receivables and that such amounts continue to be owned by the Seller. All such
amounts shall be administered in accordance with Section 5.3.

5.2      Determinations of the Master Servicer.

On each Determination Date, the Master Servicer will determine, in good faith,
the following:

          (a)  the Net Value of all Purchased Receivables which have become
               Rejected Receivables since the prior Purchase Date and the extent
               to which they have not been repurchased or offset in the manner
               set forth in Section 4.4 (the "Rejected Receivable Amount");

          (b)  the amount of Collections up to the Purchase Price of all
               Purchased Receivables received since the prior Determination Date
               (the "Paid Receivables Amount");

          (c)  the Net Value of all Purchased Receivables to the extent they
               have become Defaulted Receivables since the prior Purchase Date
               (the "Defaulted Receivable Amount" or "Credit Deficiency");

          (d)  the aggregate amount deposited in the Collection Account in
               excess of the Purchase Price of each Purchased Receivable,
               including Collections pertaining to Receivables not purchased
               under this Agreement, since the prior Determination Date (the
               "Excess Collection Amount");

          (e)  the Net Value of all Purchased Receivables less the Rejected
               Receivable Amount and the Defaulted Receivable Amount as of the
               current Determination Date; and

          (f)  the amount of any accrued and unpaid Program Fee.

The Master Servicer's determinations of the foregoing amounts shall be
conclusive in the absence of manifest error. The Master Servicer shall notify
the Seller of such determinations.

5.3      Distributions from Accounts.

          (a)  On each Determination Date, following the determinations set
               forth in Section 5.2, the Master Servicer will make the following
               withdrawals and deposits:

               (i)  withdraw the Paid Receivables Amount and the Rejected
                    Receivable Amount plus any outstanding Rejected Receivable
                    Amount applicable to any prior period, to the extent such
                    Rejected Receivable Amount is not paid to the Purchaser as a
                    reduction in Purchase Price to be paid to the Seller, from
                    the Collection Account and deposit such amount in the
                    Purchase Account;

               (ii) withdraw the Defaulted Receivable Amount from the Seller
                    Credit Reserve Account and deposit such amount in the
                    Purchase Account;

               (iii) withdraw the Excess Collection Amount from the Collection
                    Account and deposit such amount in the Seller Credit Reserve
                    Account to the extent that the Seller Credit Reserve Account
                    is less than the Specified Credit Reserve Balance; and

               (iv) withdraw the balance of the Excess Collection Amount from
                    the Collection Account and, subject to any offset required
                    under Section 5.3(b) of this Agreement, remit such amount

<PAGE>
                    by wire transfer to an account designated by the Seller;
                    provided, however, with respect to Receivables processed or
                    cleared pursuant to any Carrier Agreement, Clearinghouse
                    Agreement or Billing and Collection Agreement, if
                    applicable, the Excess Collection Amount shall be retained
                    by the Purchaser in the Collection Account until such time
                    that the Seller's billing cycle (or batch) to which such
                    Excess Collection Amount applies is deemed closed by the
                    Purchaser which, absent the occurrence of an Event of Seller
                    Default and provided that the Purchaser has received
                    information in sufficient form and format to allow the
                    Purchaser to properly apply and/or post Collections against
                    Purchased Receivables, will occur no later than the next
                    immediate Purchase Date following such determination.

          (b)  The full amount of the Purchase Price before any offsets shall be
               withdrawn from the Purchase Account and paid and administered as
               follows: (i) the Program Fee due and owing as of each respective
               Purchase Date shall be paid to the Purchaser, (ii) the amount, if
               any, by which the Seller Credit Reserve Account is less than the
               Specified Credit Reserve Balance as of such respective Purchase
               Date shall be deposited in the Seller Credit Reserve Account,
               (iii) the amount, if any, due and owing the Purchaser pursuant to
               Section 9.4 of this Agreement shall be paid to the Purchaser, and
               (iv) any remaining amount shall be paid to the Seller in
               accordance with Section 2.3 of this Agreement.

          (c)  Until the Termination Date, with commercially reasonable best
               efforts on each Purchase Date or in any event within two Business
               Days of each Purchase Date, the Master Servicer shall withdraw
               all amounts deposited hereunder (net of withdrawals required
               hereunder) from the Seller Credit Reserve Account which are in
               excess of the Specified Credit Reserve Balance and shall pay to
               the Purchaser all amounts due and owing the Purchaser in
               accordance with Sections 2.3, 4.4, 5.3, 8.1, 9.4 and any
               applicable Termination Fee, and pay the balance, if any, by wire
               transfer to an account designated by the Seller.

5.4      Allocation of Moneys following Termination Date.

          (a)  Upon the occurrence of a Termination Date hereunder, the Master
               Servicer shall administer and monitor the Blocked Account and any
               and all Collections and apply the amount of such Collections to
               the outstanding Net Value of Purchased Receivables. Following the
               Termination Date and the Purchaser's receipt of the Termination
               Fee, if applicable, from the Seller, the Master Servicer shall,
               to the extent funds deposited hereunder (net of withdrawals
               required hereunder) are sufficient, withdraw an amount equal to
               the Program Fee from the Seller Credit Reserve Account on each
               Purchase Date and deposit it in the Purchase Account. To the
               extent that such funds do not equal the Program Fee, the Seller
               shall deposit in the Purchase Account the balance of the Program
               Fee within five Business Days following demand therefor. To the
               extent any Purchased Receivable becomes a Defaulted Receivable,
               the Purchaser may withdraw an amount equal to such Defaulted
               Receivable Amount from the Seller Credit Reserve Account and
               deposit such amount in the Purchase Account, provided, however,
               that such recourse is expressly limited to the monies which
               comprise the Seller Credit Reserve Account at the time of the
               Termination Date which shall not at any time exceed the Specified
               Credit Reserve Balance. Thereafter, any Excess Collection Amount
               may not be used for deposit to the Seller Credit Reserve Account
               and shall be otherwise administered in accordance with this
               Agreement.

          (b)  In any event, following the Termination Date and the Purchaser's
               receipt of the Termination Fee, if any, the Seller may, at its
               option, repurchase all previously Purchased Receivables which
               have not been fully paid by the respective Payors thereof by
               depositing with the Purchaser the then aggregate Net Value of
               such Purchased Receivables. Following such payment and any other
               amount due and owing the Purchaser under this Agreement, this
               Agreement shall be deemed terminated.

          (c)  On the first Determination Date on which the aggregate Net Value
               of all Purchased Receivables (other than Defaulted Receivables)
               (i) is less than 10% of the aggregate Net Value of Purchased

<PAGE>

               Receivables (other than Defaulted Receivables) on the Termination
               Date and (ii) is less than the aggregate amount remaining in the
               Seller Credit Reserve Account, the Master Servicer shall withdraw
               an amount equal to such aggregate Net Value from such accounts
               and deposit it in the Purchase Account. Thereupon the Master
               Servicer shall disburse all remaining amounts held in the Seller
               Credit Reserve Account to the Seller and all interests of the
               Purchaser in all Purchased Receivables owned by the Purchaser
               shall be reconveyed by the Purchaser to the Seller. Following
               such disbursement and reconveyance, this Agreement shall be
               deemed terminated.

                                   ARTICLE VI
                         APPOINTMENT OF THE SUBSERVICER

6.1      Appointment of the Subservicer.

Subject to Section 6.5, as consideration for the Seller's receipt of that
portion of the Excess Collection Amount relating to Purchased Receivables, the
Master Servicer and the Purchaser hereby appoints YakCan and YakCan hereby
accepts such appointment to act as Subservicer under this Agreement. The
Subservicer may, with the prior consent of the Purchaser, which consent shall
not be unreasonably withheld, subcontract with a subservicer for billing,
collection, servicing or administration of the Receivables. Any termination or
resignation of the Subservicer under this Agreement shall not affect any claims
that the Purchaser may have against the Subservicer for events or actions taken
or not taken by the Subservicer arising prior to any such termination or
resignation.

6.2      Duties and Obligations of the Subservicer.

          (a)  The Subservicer shall service the Purchased Receivables and
               enforce the Purchaser's respective rights and interests in and
               under each Purchased Receivable and each related Contract or LOA;
               and shall take, or cause to be taken, all such actions as may be
               necessary or advisable to service, administer and collect each
               Purchased Receivable all in accordance with (i) customary and
               prudent servicing procedures for telecommunication receivables of
               a similar type, and (ii) all applicable laws, rules and
               regulations; and shall serve in such capacity until the
               termination of its responsibilities pursuant to Section 6.4 or
               7.1. The Subservicer shall at any time permit the Purchaser or
               any of its representatives to visit the offices of the
               Subservicer during regular business hours and examine and make
               copies of all Servicing Records;

          (b)  The Subservicer shall notify the Purchaser of any action, suit,
               proceeding, dispute, offset, deduction, defense or counterclaim
               that is or, to the Subservicer's knowledge, may be asserted by
               any Person with respect to any Purchased Receivable.

          (c)  The Purchaser shall not have any obligation or liability with
               respect to any Purchased Receivables which may arise out of a
               related Contract, nor shall it be obligated to perform any of the
               obligations of the Subservicer hereunder.

6.3      Subservicing Expenses.

The Subservicer shall be required to pay for all expenses incurred by the
Subservicer in connection with its activities hereunder (including any payments
to accountants, counsel or any other Person) and shall not be entitled to any
payment or reimbursement therefor.

6.4      Subservicer Not to Resign.

The Subservicer shall not resign from the duties and responsibilities hereunder
except upon determination that (a) the performance of its duties hereunder has
become impermissible under applicable law and (b) there is no reasonable action
which the Subservicer could take to make the performance of its duties hereunder
permissible under applicable law evidenced as to clause (a) above by an opinion
of counsel to such effect delivered to the Purchaser.

<PAGE>

6.5      Authorization of the Master Servicer.

The Seller hereby acknowledges that the Master Servicer (including any of its
successors or assigns), in its capacity as such, shall retain the authority to
take any and all reasonable steps in its name and on its behalf necessary or
desirable in the determination of the Master Servicer to collect all amounts due
under any and all Purchased Receivables, process all Collections, commence
proceedings with respect to enforcing payment of such Purchased Receivables and
the related Contracts, and adjusting, settling or compromising the account or
payment thereof. The Seller shall furnish the Master Servicer (and any
successors thereto) with any powers of attorney and other documents necessary or
appropriate to enable the Master Servicer to carry out its servicing and
administrative duties under this Agreement, and shall cooperate with the Master
Servicer to the fullest extent in order to facilitate the collectibility of the
Purchased Receivables.

                                  ARTICLE VII
                            EVENTS OF SELLER DEFAULT

7.1      Events of Seller Default.

If any of the following events (each, an "Event of Seller Default") shall occur
and be continuing:

          (a)  The Seller (either as Seller or Subservicer) shall materially
               fail to perform or observe (a) any monetary term, covenant or
               agreement contained in this Agreement and such failure shall
               continue for two (2) days (not including Saturday or Sunday)
               after notice thereof has been given by Purchaser to Seller, or
               (b) any other term, covenant or agreement contained in this
               Agreement and such failure shall continue for ten (10) days after
               notice thereof has been given by Purchaser to Seller unless such
               other term covenant or agreement provides for a different period
               of time;

          (b)  An Insolvency Event shall have occurred and where such Insolvency
               Event consists of an involuntary proceeding against Seller, and
               the involuntary proceedings are not dismissed within thirty (30)
               days from the date they were initiated;

          (c)  There is a material breach of any of the representations and
               warranties of the Seller as stated in Sections 4.1 or 4.2 that
               has remained uncured for a period of 30 days, or, as such breach
               may pertain to a Purchased Receivable, has not been cured
               pursuant to Section 4.4;

          (d)  Any Governmental Authority shall file notice of a lien with
               regard to any of the assets of the Seller or with regard to the
               Seller which remains undischarged for a period of 30 days;

          (e)  This Agreement shall for any reason cease to evidence the
               transfer to the Purchaser (or its assignees or transferees) of
               the legal and equitable title to, and ownership of, the Purchased
               Receivables;

          (f)  The termination of any Clearinghouse Agreement, if applicable,
               and/or any Carrier Agreement or Billing and Collection Agreement
               for any reason whatsoever absent the consummation of a substitute
               Clearinghouse Agreement, Carrier Agreement and/or Billing and
               Collections Agreement, as the case may be, within ten (10)
               Business Days of the termination thereof where, in the
               Purchaser's reasonable business judgment, such termination
               materially and adversely affects the business of Seller, and/or,
               any invoice due and owing by the Seller relating to any Carrier
               Agreement, Clearinghouse Agreement or Billing and Collection
               Agreement has become more than thirty days past due;

          (g)  The amount deposited hereunder (net of withdrawals required
               hereunder) in the Seller Credit Reserve Account has remained at
               less than the Specified Credit Reserve Balance for fourteen
               consecutive days; or

          (h)  YakCan and the Seller, in the reasonable discretion of Purchaser,
               do not have sufficient cash on hand, or committed financing, to
               reasonably perform their business plan.

<PAGE>

then and in any such event, the Master Servicer may, by notice to the Seller and
the Purchaser declare that an Event of Seller Default shall have occurred and,
the Termination Date shall forthwith occur, without demand, protest or further
notice of any kind, and the Purchaser shall make no further Purchases from the
Seller. The Purchaser and Master Servicer shall have, in addition to all other
rights and remedies under this Agreement, all other rights and remedies provided
under the PPSA and other applicable law, which rights shall be cumulative.

                                  ARTICLE VIII
                      INDEMNIFICATION AND SECURITY INTEREST

8.1      Indemnities by the Seller.

          (a)  Without limiting any other rights that the Purchaser, the Master
               Servicer, or any director, officer, employee or agent of either
               such party (each an "Indemnified Party") may have under this
               Agreement or under applicable law, the Seller hereby agrees to
               indemnify each Indemnified Party from and against any and all
               claims, losses, liabilities, obligations, damages, penalties,
               actions, judgments, suits, and related costs and expenses of any
               nature whatsoever, including reasonable attorneys' fees and
               disbursements (all of the foregoing being collectively referred
               to as "Indemnified Amounts") which may be imposed on, incurred by
               or asserted against an Indemnified Party in any way arising out
               of or relating to this Agreement or the ownership of the
               Purchased Receivables or in respect of any Receivable or any
               Contract, excluding, however, Indemnified Amounts to the extent
               resulting from gross negligence or wilful misconduct on the part
               of any Indemnified Party.

          (b)  Any Indemnified Amounts subject to the indemnification provisions
               of this Section shall be paid to the Indemnified Party within
               five Business Days following demand therefor, together with
               interest at the lesser of 12% per annum or the highest rate
               permitted by law from the date of such demand for the Indemnified
               Amount.

8.2      Security Interest.

Without limitation to any other provisions hereof, (a) the Seller hereby grants
to the Purchaser a continuing first priority perfected security interest, lien
on, hypothecation of and assignment of and in the Seller's Customer Base,
including but not limited to, all past, present and future customer contracts,
lists, agreements, LOA's or arrangements relating thereto; all of the Seller's
right, title and interest in, to and under all of the Seller's Receivables not
retained by the Purchaser hereunder, including all rights to payments under any
related Contracts, contract rights, instruments, documents, chattel paper,
general intangibles, LOA's or other agreements with all Payors and all the
Collections, Records and proceeds thereof; any other obligations or rights of
Seller to receive any payments in money or kind; all cash or non-cash proceeds
of the foregoing; all of the right, title and interest of the Seller in and with
respect to the goods, services or other property which gave rise to or which
secure any of the foregoing, as security for the timely payment and performance
of any and all obligations the Seller or the Subservicer may owe the Purchaser
under Sections 2.3, 4.4, 5.3, 8.1, 9.4 and any applicable Termination Fee, but
excluding recourse for unpaid Purchased Receivables, and (b) as security for all
its Guaranteed Obligations, YakUSA grants to the Purchaser, a continuing
first-ranking perfected and duly registered security interest in, lien on,
hypothecation of and assignment of all the personal property of YakUSA, now
owned or hereafter acquired, tangible or intangible. This Section 8.2 shall
constitute a security agreement under the PPSA and the UCC and any other
applicable law and the Purchaser shall have the rights and remedies of a secured
party thereunder. Such security interest shall be further evidenced by Seller's
and YakUSA's execution of appropriate PPSA and UCC-1 financing statements
prepared by and acceptable to the Purchaser, and such other further assurances
that may be reasonably requested by the Purchaser from time to time.

                                   ARTICLE IX
                                  MISCELLANEOUS

9.1      Notices, Etc.

All notices, shall be in writing and mailed or telecommunicated, or delivered as
to each party hereto, at its address set forth under its name on the signature
pages hereof or at such other address as shall be designated by such party in

<PAGE>

a written notice to the other parties hereto. All such notices and
communications shall not be effective until received by the party to whom such
notice or communication is addressed.

9.2      Remedies.

No failure or delay on the part of the Purchaser or the Master Servicer to
exercise any right hereunder shall operate as a waiver or partial waiver
thereof. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

9.3      Binding Effect; Assignability.

This Agreement shall be binding upon and inure to the benefit of the Seller, the
Subservicer, the Purchaser, the Master Servicer and their respective successors
and permitted assigns. Subject to the provisions of Section 6.1, neither the
Seller nor the Subservicer may assign any of their rights and obligations
hereunder or any interest herein without the prior written consent of the
Purchaser and the Master Servicer. The Purchaser may, at any time, without the
consent of the Seller or the Subservicer, assign any of its rights and
obligations hereunder or any interest herein to any Person. Without limiting the
generality of the foregoing, the Seller acknowledges that the Purchaser has
assigned its rights hereunder for the benefit of third parties. The Seller does
hereby further agree to execute and deliver to the Purchaser all documents and
amendments presented to the Seller by the Purchaser in order to effectuate the
assignment by the Purchaser in furtherance of this Section 9.3 consistent with
the terms and provisions of this Agreement. This Agreement shall create and
constitute the continuing obligations of the parties hereto in accordance with
its terms, and shall remain in full force and effect until its termination;
provided, that the rights and remedies with respect to any breach of any
representation and warranty made by the Seller or the Master Servicer pursuant
to Article IV and the indemnification and payment provisions of Article VIII
shall be continuing and shall survive any termination of this Agreement.

9.4      Costs, Expenses and Taxes.

          (a)  In addition to the rights of indemnification under Article VIII,
               the Seller agrees to pay upon demand, all reasonable costs and
               expenses in connection with this Agreement and the other
               documents to be delivered hereunder before and after the Closing
               Date, including, without limitation: (i) any periodic auditing of
               the Seller and the modification or amendment of this Agreement;
               (ii) the reasonable fees and out-of-pocket expenses of counsel
               for the Purchaser or the Master Servicer with respect to (A)
               advising the Purchaser as to its rights and remedies under this
               Agreement or (B) the enforcement (whether through negotiations,
               legal proceedings or otherwise) of this Agreement or the other
               documents to be delivered hereunder; (iii) any and all accrued
               Program Fee and amounts related thereto not yet paid to the
               Purchaser; (iv) any and all credit fees, banking fees and
               personal property registry search and filing fees; and (v) any
               and all stamp, sales, excise and other taxes and fees payable or
               determined to be payable in connection with the execution,
               delivery, filing or recording of this Agreement or the other
               agreements and documents to be delivered hereunder, and agrees to
               indemnify and save each Indemnified Party from and against any
               and all liabilities with respect to or resulting from any delay
               in paying or omission to pay such taxes and fees.

          (b)  If the Seller or the Subservicer fails to pay any Blocked Account
               fees or other charges or debits related to such accounts, or to
               pay or perform any agreement or obligation contained under this
               Agreement, the Purchaser may or may direct the Master Servicer to
               pay or perform, or cause payment or performance of, such
               agreement or obligation, and the expenses of the Purchaser or the
               Master Servicer incurred in connection therewith shall be payable
               by the party which has failed to so perform.

9.5      Amendments; Waivers; Consents.

No modification, amendment or waiver of, or with respect to, any provision of
this Agreement or the Related Documents, shall be effective unless it shall be
in writing and signed by each of the parties hereto. This Agreement, the Related
Documents and the documents referred to therein embody the entire agreement
among the Seller, the

<PAGE>

Subservicer, the Purchaser and the Master Servicer, and supersede all prior
agreements and understandings relating to the subject hereof, whether written or
oral.

9.6      GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

          (a)  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
               WITH THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS
               PROVISIONS) OF THE PROVINCE OF ONTARIO, EXCEPT TO THE EXTENT THAT
               THE VALIDITY OR PERFECTION OF THE INTERESTS OF THE PURCHASER IN
               THE PURCHASED RECEIVABLES OR REMEDIES HEREUNDER OR THEREUNDER, IN
               RESPECT THEREOF, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
               THAN THE PROVINCE OF ONTARIO.

          (b)  THE SELLER AND THE SUBSERVICER HEREBY SUBMIT TO THE EXCLUSIVE
               JURISDICTION OF THE COURTS OF THE PROVINCE OF ONTARIO AND THE
               FEDERAL COURTS OF CANADA LOCATED IN ONTARIO, AND EACH WAIVES
               PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT
               ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED
               TO THE ADDRESS SET FORTH ON THE SIGNATURE PAGE HEREOF AND SERVICE
               SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE DAYS AFTER THE SAME
               SHALL HAVE BEEN DEPOSITED IN CANADA POST, POSTAGE PREPAID. THE
               SELLER AND THE SUBSERVICER EACH HEREBY WAIVES ANY OBJECTION BASED
               ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
               INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL
               OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.
               NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF THE PURCHASER
               TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
               AFFECT THE RIGHT OF THE PURCHASER TO BRING ANY ACTION OR
               PROCEEDING AGAINST THE SELLER OR ITS PROPERTY, OR THE SUBSERVICER
               OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION. THE
               SELLER AND THE SUBSERVICER EACH HEREBY AGREE THAT THE EXCLUSIVE
               AND APPROPRIATE FORUMS FOR ANY DISPUTE HEREUNDER ARE THE COURTS
               OF THE PROVINCE OF ONTARIO AND THE FEDERAL COURTS OF CANADA
               DISTRICT COURT LOCATED IN ONTARIO AND AGREE NOT TO INSTITUTE ANY
               ACTION IN ANY OTHER FORUM.

          (c)  THE SELLER, AND THE SUBSERVICER EACH HEREBY WAIVES ANY RIGHT TO
               HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
               SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF,
               CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT.
               INSTEAD, ANY DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A
               TRIAL WITHOUT A JURY.

9.7      Execution in Counterparts; Severability.

This Agreement may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement. In case any provision in
or obligation under this Agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

9.8      Confidentiality.

Each of Seller and Purchaser understands and agrees to keep confidential, and
shall cause its respective directors, officers, shareholders, employees, agents,
and attorneys to keep confidential the terms and conditions of this Agreement,
all documents referenced herein and the respective terms thereof, and any
communication between the parties regarding this Agreement or the services to be
provided hereunder hereby, except to the extent that (a) any party makes any
disclosure to his or its auditors, attorneys or other professional advisors, (b)
any disclosure is otherwise required by law or pursuant to any rule or
regulation of any federal, state or other governmental authority

<PAGE>

or regulatory agency, provided that Seller provides prior written notice thereof
or (c) the Seller is in receipt of the prior written consent of Purchaser with
respect to any compromise by Seller of the confidentiality contemplated
hereunder. Seller further understands and agrees that the violation by the
Seller or its agents of the foregoing shall entitle the Purchaser, at its
option, to obtain injunctive relief without a showing of irreparable harm or
injury and without bond.

9.9A.    The Guarantee.

YakUSA, as primary obligor and not as a surety merely, hereby unconditionally
and irrevocably, guarantees to the Purchaser the punctual payment when due in
accordance with the terms hereof of all obligations, of whatever kind and
description, of the Seller to the Purchaser now or hereafter existing, whether
direct or indirect, absolute or contingent, matured or unmatured, secured or
unsecured pursuant to or arising out of or under this agreement. YakAmerica, as
primary obligor and not as a surety merely, hereby unconditionally and
irrevocably, guarantees to the Purchaser the punctual payment when due in
accordance with the terms hereof of all obligations, of whatever kind and
description, of YakCan to the Purchaser now or hereafter existing, whether
direct or indirect, absolute or contingent, matured or unmatured, secured or
unsecured pursuant to or arising out of or under this agreement. YakCan, as
primary obligor and not as a surety merely, hereby unconditionally and
irrevocably, guarantees to the Purchaser the punctual payment when due in
accordance with the terms hereof of all obligations, of whatever kind and
description, of YakAmerica to the Purchaser now or hereafter existing, whether
direct or indirect, absolute or contingent, matured or unmatured, secured or
unsecured pursuant to or arising out of or under this agreement. (all of the
obligations described in the paragraphs above are referred to herein
collectively as the "Guaranteed Obligations")

9.9B.    Guarantee Absolute.

The Guarantor (as defined in the first recital of this agreement) guarantees
that its Guaranteed Obligations will be paid strictly in accordance with their
terms regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of such terms or the rights of the Purchaser with
respect thereto. The liability of the Purchaser hereunder shall be absolute and
unconditional irrespective of:

          (a)  Any lack of validity or enforceability of the obligations of the
               Seller or the Guaranteed Obligations or any agreement or
               instrument relating thereto;

          (b)  Any change in the time, manner or place of the payment of, or in
               any other term of, all or any of the obligations of the Seller or
               the Guaranteed Obligations, or any amendment or modification of
               or any consent to departure from this agreement or any Related
               Documents;

          (c)  Any exchange, release or nonperfection of any collateral or any
               release or amendment to, waiver of, or consent to departure from,
               or any guarantee for, all or any part of the obligations of the
               Seller or the Guaranteed Obligations;

          (d)  Any whole or partial termination of this Guarantee as to any
               other Guarantor; or

          (e)  Any other circumstance which might otherwise constitute a defence
               available to, or a discharge of, a Guarantor in respect of the
               obligations of the Seller or the Guaranteed Obligations or a
               Guarantor in respect of this Guarantee or the Guaranteed
               Obligations.

The above Guarantee shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of any of the obligations of the Seller or
the Guaranteed Obligations are rescinded or must otherwise be returned by the
Purchaser under applicable law, all as though such payment had not been made.

9.9C     Consents, Waivers and Renewals.

The Guarantor hereby waives promptness, diligence, notice of the acceptance
hereof, and any other notice with respect to any of the obligations of the
Seller (and where the Guarantor is a Seller, the other Seller) or the Guaranteed
Obligations and this agreement and any requirement that the Purchaser protect,
secure, perfect or insure any security interest or lien or any property subject
thereto or exhaust any right or take any action against the Guarantor or any
other person or entity or any collateral before proceeding hereunder. The
Guarantor agrees that the Purchaser may at any time and from time to time,
either before or after the maturity thereof, without notice to or further
consent of the Guarantor extend the time of payment of, exchange or surrender
any Collateral for, or renew any of the obligations of the Seller or the
Guaranteed Obligations, and may also make any agreements with the Seller, the
Guarantor or with any other party to or person liable on any of the obligations
of the Seller, or interested therein, for the extension, renewal, payment,
compromise, discharge, or release thereof, in whole or in part, or for

<PAGE>

any modification of the terms thereof or of any agreement between the Purchaser
and the Guarantor or any such other party or person, without in any way
impairing or affecting this Guarantee. The Guarantor agrees to make payment to
the Purchaser of any of the obligations of the Seller (and where the Guarantor
is a Seller, the other Seller) and the Guaranteed Obligations whether or not the
Purchaser shall have resorted to any collateral security, or shall have
proceeded against any other obligor principally or secondarily obligated with
respect to any of the obligations of the Seller or the Guaranteed Obligations.
The Purchaser shall be free to deal with the Seller and the Guarantor as it sees
fit.

9.9D.    Subrogation.

The Guarantor shall not exercise any rights which it may acquire by way of
subrogation under this agreement, by any payment made hereunder or otherwise,
until all the obligations of the Seller and the Guaranteed Obligations shall
have been paid in full. If any amount shall be paid to the Guarantor on account
of such subrogation rights in violation of the foregoing restriction, such
amount shall be held in trust for the benefit of the Purchaser and shall
forthwith be paid to the Purchaser to be credited and applied to the obligations
of the Seller (and where the Guarantor is a Seller, the other Seller), whether
matured or unmatured, in accordance with the terms of this agreement.

9.10     Interest Act (Canada).

For the purposes of this Agreement, whenever interest to be paid hereunder is to
be calculated on the basis of a year of three hundred and sixty (360) days or
any other period of time that is less than a calendar year, the yearly rate of
interest to which the rate determined pursuant to such calculation is equivalent
to the rate so determined multiplied by the actual number of days in the
calendar year in which the same is to be ascertained and divided by three
hundred and sixty (360).

<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their respective officers thereunto duly authorized, as of the date first above
written.

                      Seller

                      YAK COMMUNICATIONS (CANADA) INC.

                      Per:    /s/ Charles Zwebner
                              -------------------------------------
                      Name:   Charles Zwebner
                      Title:  President
                      Address at which the chief executive office is located
                      Address:
                      55 Town Centre Court
                      Suite 610
                      Scarborough, ON  M1P 4X4
                      Attention:                 Charles Zwebner
                                                 President

                      Phone number:     416.296.7111
                      Telecopier number:         416.279.1371

                      SELLER

                      YAK COMMUNICATIONS (AMERICA), INC.

                      Per:   /s/ Charles Zwebner
                              -------------------------------------
                      Name:  Charles Zwebner
                      Title: President
                      Address:
                      55 Town Centre Court
                      Suite 610
                      Scarborough, ON  M1P 4X4
                      Attention:                 Charles Zwebner
                                                 President

                      Phone number:     416.296.7111
                      Telecopier number:         416.279.1371

<PAGE>

                       PURCHASER

                       TEXTRON FINANCIAL CANADA LIMITED

                       Per:
                              ------------------------------------
                       Name:
                       Title:
                       Address:
                       141 Adelaide Street West
                       Suite 1007
                       Toronto, Ontario
                       M5H 3L5

                       Attention:
                       Phone number:
                       Telecopier number:

                       GUARANTOR

                       YAK COMMUNICATIONS (USA), INC.

                       Per:   /s/ Charles Zwebner
                              ------------------------------------
                       Name:  Charles Zwebner
                       Title: President

                       Address:
                       55 Town Centre Court
                       Suite 610
                       Scarborough, ON  M1P 4X4
                       Attention:                 Charles Zwebner
                                                  President

                       Phone number:     416.296.7111
                       Telecopier number:         416.279.1371

<PAGE>

                      GUARANTOR

                      YAK COMMUNICATIONS (CANADA) INC.

                      Per:    /s/ Charles Zwebner
                              -------------------------------------
                      Name:   Charles Zwebner
                      Title:  President
                      Address at which the chief executive office is located
                      Address:
                      55 Town Centre Court
                      Suite 610
                      Scarborough, ON  M1P 4X4
                      Attention:                 Charles Zwebner
                                                 President

                      Phone number:     416.296.7111
                      Telecopier number:         416.279.1371

                      GUARANTOR

                      YAK COMMUNICATIONS (AMERICA), INC.

                      Per:   /s/ Charles Zwebner
                              -------------------------------------
                      Name:  Charles Zwebner
                      Title: President
                      Address:
                      55 Town Centre Court
                      Suite 610
                      Scarborough, ON  M1P 4X4
                      Attention:                 Charles Zwebner
                                                 President

                      Phone number:     416.296.7111
                      Telecopier number:         416.279.1371

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