Document:

<PAGE>
                         Klett Lieber Rooney & Schorling

                           A PROFESSIONAL CORPORATION
                          40TH FLOOR, ONE OXFORD CENTRE
                         PITTSBURGH, PENNSYLVANIA 15239
                            TELEPHONE (412) 292-2000

                                  July 27, 1999

Via Facsimile  (212)949-7052

Joseph P. Connors, Esq.
Snow Becker Krauss P.C.
605 Third Avenue
New York, NY 10158-0125

         Re:      WorldCom Network Services, Inc. v. PICK Communications Corp.
                  ------------------------------------------------------------

Dear Mr. Connors:

         Reference is made to my letter to Mr. Lutzker dated July 21, 1999,
which is superceded in all respects by this letter. Based upon our
conversations, and discussions with my client, WorldCom Network Services, Inc.
("WorldCom"), has agreed to modify the terms of the prior letter dated July 21,
1999, as set forth below. The terms and conditions to WorldCom's forbearance
contained in this letter must be accepted by your client no later than 5:00
p.m., Central Time, today, July 27, 1999, otherwise WorldCom will be forced to
proceed with its litigation and other efforts to protect its rights and collect
on the outstanding debt. Please accept this revised letter as an outline of the
workout agreement reached between our respective clients on Friday, July 16,
1999, with respect to the approximately $1.2 million owned by PICK
Communications Corp. ("PICK") to WorldCom. I have also enclosed a redlined copy
of this letter for your convenience.

         The terms of the agreement between the parties are as follows:

         1. PICK acknowledges and affirms that (a) as of June 30, 1999, it owed
WorldCom $1,256,622.17 (collectively with accrued and accruing interest, the
"Indebtedness"), (b) since June 30, 1999, no payments have been made on the
Indebtedness; (c) interest on the Indebtedness has accrued and is accruing from
such date at the rate of eighteen percent (18) per annum, pursuant to the
Settlement Agreement dated as of April 15, 1999, by and between WorldCom and
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Joseph P. Connors, Esq.
July 27, 1999
Page 2

PICK, and (d) the Indebtedness is not subject to any rights of setoff or
recoupment, counterclaims or defenses of PICK.

         2. PICK has requested that WorldCom agree to restructure the
Indebtedness by, among other things, agreeing to forbear from taking actions
(such as continuing the litigation captioned above) to collect the Indebtedness,
and to discontinue, without prejudice, the current judicial proceedings against
PICK until January 16, 2000, with the option to extend such forbearance through
January 16, 2001, at PICK's discretion.

         3. As consideration for WorldCom's agreement to restructure the
Indebtedness and WorldCom's agreement to forbear from taking actions to collect
the same until January 16, 2000, PICK agrees to execute and deliver to WorldCom,
on or before ten (10) days from the date of this letter, a six month promissory
note (payable on January 16, 2000 (the "Note") in the principal amount of the
Indebtedness (calculated as of the date of the Note), which contains the
following provisions (a) interest shall accrue at the rate of sixteen percent
(16%) per annum; (b) interest and principal shall be payable at the maturity of
the Note; and (c) PICK shall have the right to prepay the amounts due under the
Note, without penalty.

         4. Each of PICK, PICKnet, Inc. ("PICKnet") and any and all other
affiliates of PICK or PICKnet which receive, directly or indirectly, proceeds
from the sale of PICK's and/or PICKnet's telephony business and any subsidiary
or affiliate which is organized as an Internet service provider, as contemplated
by PICK's current business plan (each such entity, a "Benefitted PICK Entity"
and collectively with PICK and PICKnet, the "PICK Entities") acknowledge and
agree (or as to any PICK Entity which does not execute this letter agreement
and/or the final documentation with respect thereto, because it has not yet been
formed, or has not yet received the proceeds, whether directly or indirectly, of
the sale of the telephony business) that although each are separate
corporations, the effective continuance of the business of each Pick Entity is
dependent on the continuance and success of each other PICK Entity; the final
success of each PICK Entity directly benefits the others and the transactions
contemplated under this agreement will be to the mutual benefit of each PICK
Entity; and that each PICK Entity understands that WorldCom's willingness to
forbear from exercising its rights and to agree to the plan contained in this
agreement is predicated upon, and therefore WorldCom has relied upon, the truth
of the foregoing representation by the PICK entities.

         5. As consideration for WorldCom's agreement to restructure the
Indebtedness and WorldCom's agreement to forebear until January 16, 2000, PICK
shall issue to WorldCom one million shares of PICK's common stock (the "Shares")
as a restructuring fee, which shall be deemed earned by WorldCom upon receipt
and shall not be credited against the Indebtedness in any way, nor be deemed in
any way to be paid an account of the Indebtedness, as interest or principal.
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Joseph P. Connors, Esq.
July 27, 1999
Page 3

         6. The Shares issued to WorldCom as the restructuring fee shall be
deemed fully paid and non-assessable.

         7. With respect to the Shares, WorldCom shall also have (a) piggyback
registration rights, and (b) demand registration rights, consistent with a
transaction of this magnitude. With respect to the latter, PICK agrees that, as
soon as practicable, but no later than October 27, 1999, it will file a
registration statement (the "Registration Statement") with the Securities and
Exchange Commission covering the Shares that will be issued pursuant to this
agreement and the final documentation. PICK also agrees to use its best efforts
to cause the Registration Statement to become effective as soon as practicable
after its filing. In connection with the Registration Statement, PICK shall
execute an indemnification agreement in favor of WorldCom that is in a form
acceptable to WorldCom and its counsel.

         8. In the event PICK repays the Indebtedness reflected by the Note by
its January 16, 2000 maturity date, PICK shall be entitled to redeem no more
than one half of the Shares for $1.00. In the event PICK does not repay the
Indebtedness memorialized by the Note by its January 16, 2000 maturity date,
PICK's redemption rights with respect to the Shares shall terminate and the
January 16, 2000 maturity date shall automatically be extended to January 16,
2001, with the interest continuing to accrue, and be payable, together with the
outstanding principal, at the extended January 16, 2001 maturity date.
WorldCom's agreement to allow PICK to extend the maturity of the Note to January
16, 2001, is not and shall not be construed as an agreement by WorldCom to any
further extension of the maturity date of the Note.

         9. With respect to the telephony business, the PICK Entities agree to
assist WorldCom through introductions and otherwise to any purchaser of any of
the PICK Entities' telephony assets, and further agree to use their best efforts
to assist WorldCom in its interest in retaining its position as the underlying
carrier for such telephone traffic. Furthermore, in the event of any sale of the
telephony assets of any PICK Entity, the PICK Entities agree to provide WorldCom
with an accounting of the sale proceed received from any such sale.

         10. The PICK Entities shall provide WorldCom with monthly financial
reporting and other covenants typical of a financial transaction of this
magnitude.

         11. The PICK Entities represent and warrant that this agreement, and
the transactions contemplated thereby, including the payment of the Shares as a
restructuring fee (i) have been approved by all necessary corporate action, (ii)
do not violate or conflict with any articles of incorporation or corporate
by-laws of any PICK Entity, loan covenant or agreement entered into by any PICK
Entity, and (iii) do not violate or conflict with any law of the United States,
including state
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Joseph P. Connors, Esq.
July 27, 1999
Page 4

or federal securities laws; such representations and warranties shall be
supported by an opinion of counsel satisfactory in form and substance to
WorldCom and its counsel.

         12. As further consideration WorldCom's agreement restructure the
indebtedness and to forbear from exercising its rights, each PICK Entity, their
respective agents, servants, employees, directors, officers, attorneys,
affiliates, parent, subsidiaries, successors, heirs and assigns and all persons,
firms, corporations, and organizations acting on their respective behalf hereby
forever releases and discharges each of WorldCom and its respective agents,
servants, employees, directors, officers, attorneys, affiliates, parent,
subsidiaries, successors, heirs and assigns and all persons, firms,
corporations, and organizations acting on their behalf (collectively, the
"WorldCom Entities") of and from any and all losses, damages, claims, demands,
liabilities, obligations, actions and causes of action, of any nature whatsoever
in law or in equity, including any claims or joinders for sole liability, and
contribution or indemnity, which any PICK Entity may have or claim to have
against any one or more of the WorldCom Entities, or any one or more of them,
whether presently known or unknown, and of every nature and extent.

         13. Within ten (10) days of the date of this letter agreement, (a) each
of WorldCom and the PICK Entities shall execute the necessary written agreements
and notes to further memorialize this transaction, and (b) the Shares will be
issued to WorldCom. The Note and all other agreements to be executed by the
parties shall: (i) be in form and substance satisfactory to WorldCom and its
counsel; and (ii) be on terms consistent with this letter agreement, and shall
contain representations, warranties, covenants, conditions, events of default or
forbearance termination events, such as a material adverse change to any of the
PICK Entities' financial, operational or business condition or prospects, and
other provisions customary to a transaction of this magnitude.

         14. This letter agreement embodies the entire understanding of the
parties hereto with respect to the subject hereof, and supersedes all other oral
or written agreements or understandings between them regarding the subject
matter hereof. No change, alteration or modification hereof may be made except
in a writing, signed by all parties hereto.

         This letter agreement is being sent to you and WorldCom
contemporaneously, is subject to change in all respects, and shall be effective
until executed by WorldCom.
<PAGE>

Joseph P. Connors, Esq.
July 27, 1999
Page 5

         If the foregoing is acceptable to your client, please have the
appropriate person execute this letter in the spaces provided and telecopy the
same to us and WorldCom.

                                                    Very truly yours,

                                                    /s/ Many Emamzadeh
                                                    -------------------------

                                 Many Emamzadeh
                       For Klett Lieber Rooney & Schorling
                           A Professional Corporation

cc:  Robert S. Vetia (by facsimile)
     Thomas Timony (by facsimile)
     Richard Wolff, Esq. (by facsimile)

                             Accepted and Agreed By:

PICK COMMUNICATIONS CORP.                       WORLDCOM NETWORK SERVICES, INC.

By: /s/ Diego Leiva                             By: /s/ Robert S. Vetia
   -------------------------------                 ----------------------------
Name: Diego Leiva                               Name: Robert S. Vetia
      ----------------------------                    -------------------------
Title: Chairman                                 Title: Vice President
       ---------------------------                     ------------------------

PICKnet, Inc.

By: /s/ Diego Leiva
   -------------------------------
Name: Diego Leiva
      ----------------------------
Title: Chairman
       ---------------------------

BENEFITTED PICK ENTITIES
__________________________________

By:_______________________________
Name:_____________________________
Title:____________________________<PAGE>

                              CONSULTING AGREEMENT

         AGREEMENT made as of the 8th day of July, 1999 by and between PICK
Communications Corp. and its subsidiaries (the "Company") with an address at 155
Route 46 West, Wayne, New Jersey 07470 and Thomas M. Malone (the "Consultant"),
an individual residing at 1817 St. Boniface Street, Vienna, Virginia 22182.

                               W I T N E S S E T H

         WHEREAS, the Consultant has resigned from employment and as a member of
the Board of Directors of the Company effective July 8, 1999 and simultaneously
entered into a Confidential Separation Agreement and Release of All Claims
("Separation Agreement") which remains in full force and effect;

         WHEREAS, the Company also desires to retain the Consultant to provide
consulting services; and

         WHEREAS, the Consultant desires to be retained to render such services.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements hereinafter set forth, the parties hereto hereby agree
as follows:

         1. The Company hereby retains the Consultant and the Consultant hereby
accepts such retention to perform consulting services related to:

            a. assisting in the preparation of budgets, projections and business
plans for the Company;

            b. assisting in the recruitment of all senior management including,
but not limited to, his replacement as Chief Executive Officer;

            c. assisting the Company in screening, evaluating, and recommending
commercial and investment bankers, underwriters and professional consultants in
order to carry out the Company's financing goals, including, but not limited to,
when necessary, assisting in the structuring of any required financings;

            d. assisting the Company on the preparation and attendance at
appropriate presentations to consummate any desired financing;

            e. market the products and services of PickSat and PickOnline.com to
corporations and be compensated for such services under a separate compensation
agreement.

         In regard to the foregoing, subject to the terms set forth below, the
Consultant shall furnish to the Company advice and recommendations with respect
to such aspects of the business and affairs of the Company as the Company shall,
from time to time, reasonably request upon no
<PAGE>

less than three business day's notice, unless the Consultant agrees to a lesser
amount of notice for specific requested services hereunder.

         2. In addition, the Consultant shall hold himself ready to assist the
Company in evaluating and negotiating particular contracts or transactions, if
requested to do so by the Company, upon reasonable notice. Nothing herein shall
require the Company to utilize the Consultant's services for any item enumerated
in Paragraph 1 or in any particular transaction, nor shall it limit the
Company's obligations arising under any other agreement or understanding.

         3. This Agreement is for a term of twelve (12) months from the date
hereof, unless mutually agreed to and extended in writing and subject to earlier
termination as provided in Section 7 below.

         4. (a) For the services described in Paragraphs 1 and 2 of the
Agreement, the Company shall extend the time provided in Consultant's Stock
Option Agreement dated March 16, 1999, to purchase an additional 500,000 shares
of the Company's common stock at a price of $.50 per share as follows: options
corresponding to 125,000 shares are exercisable commencing upon the execution of
this Agreement; options corresponding to the next 125,000 shares are exercisable
at any time on or after October 8, 1999; options corresponding to the next
125,000 shares are exercisable at any time on or after January 8, 2000; and
options corresponding to the last 125,000 shares are exercisable at any time on
or after April 8, 2000 until July 8, 2001, provided this Agreement is not
terminated as provided in Section 7 below. Pursuant to the terms of the
Separation Agreement, the Consultant currently may exercise up to 1,000,000
options at $.50 per share until July 8, 2000.

            (b) In addition the extension of the options described above, the
Company will reimburse the Consultant within 14 days of submission to the
Company for all reasonable travel and out-of-pocket expenses incurred by the
Consultant in the performance of his duties hereunder, and the Consultant shall
account for such expenses to the Company; provided, however, that any expense in
excess of $500 shall require the prior written approval of the Company and all
airfare arrangements are to be made by the Company on Company credit cards. The
Consultant shall receive no other consideration from the Company other than as
described in this Section 4.

         5. The Company agrees, at its sole expense, to use its best efforts to
cause the common stock underlying the Options under this Agreement as well as
under the Separation Agreement to become registered under the Securities Act of
1933, as amended (the "Act"), as soon as practicable, on the next registration
statement on Form S-8 filed by the Company.

         6. All obligations of the Consultant contained herein shall be subject
to the Consultant's reasonable availability for such performance, in view of the
nature of the requested service and the amount of notice received. The
Consultant shall devote such time and effort to the performance of its duties
hereunder as the Consultant shall determine is reasonably necessary

                                        2
<PAGE>

for such performance. The Consultant may look to such others for such factual
information, investment recommendations, economic advice and/or research, upon
which to base its advice to the Company hereunder, as it shall deem appropriate.
The Company shall furnish to the Consultant all information relevant to the
performance by the Consultant of its obligations under this Agreement, or
particular projects as to which the Consultant is acting as advisor, which will
permit the Consultant to know all facts material to the advice to be rendered,
and all material or information reasonably requested by the Consultant.

         In the event that the Company fails or refuses to furnish any such
material or information reasonably requested by the Consultant, and thus
prevents or impedes the Consultant's performance hereunder, any inability of the
Consultant to perform shall not be a breach of his obligations hereunder.

         7. If, during the term of this Agreement, the Consultant voluntarily
terminates his services or is terminated by the Company for Cause, as such term
is defined below, then the term of this Agreement shall end without further
action by either part hereto, and all rights and obligations of the parties
hereunder, shall terminate as of such date except options already vested
pursuant to Section 4(a), and obligations set forth in Paragraphs 8, 9 and 10
hereof and under the Separation Agreement. For the purposes of this Agreement,
"Cause" shall mean either the non- performance of the Consultant's duties set
forth herein, as reasonably determined by the Company, or the conviction of the
Consultant for a felony or a crime of moral turpitude.

         8. Consultant will adhere to the confidentiality/non-compete agreement,
dated April 30, 1999, entered into by and between the Company and the Consultant
which is incorporated by reference herein.

         9. The Company and Consultant agree that neither party will disparage
the reputation and/or character of the other party to any third party.
Furthermore, the content and/or wording of any press release or other public
disclosure that refers to Consultant's separation from the Company as Chief
Executive Officer and retention as a Consultant shall be mutually agreed to by
and between the Consultant and the Company in advance of its release.

         10. The Company and the Consultant agree to indemnify and hold each
other harmless, including their respective partners, employees, agents,
representatives and controlling persons (and the officers, directors, employees,
agents, representatives and controlling persons of each of them) from and
against any and all losses, claims, damages, liabilities, costs and expenses
(and all actions, suits, proceedings or claims in respect thereof) and any legal
or other expenses in giving testimony or furnishing documents in response to a
subpoena or otherwise (including, without limitation, the cost of investigating,
preparing or defending any such action, suit, proceeding or claim, whether or
not in connection with any action, suit, proceeding or claim in which the
Consultant or the Company is a party), as and when incurred, directly or
indirectly, caused by, relating to, based upon or arising out of the
Consultant's service pursuant to this Agreement. This Paragraph shall survive
the termination of this Agreement.

                                        3
<PAGE>

         11. This Agreement may not be transferred, assigned or delegated by any
of the parties hereto without the prior written consent of the other party
hereto.

         12. The failure or neglect of the parties hereto to insist, in any one
or more instances, upon the strict performance of any of the terms or conditions
of this Agreement, or their waiver of strict performance of any of the terms or
conditions of this Agreement, shall not be construed as a waiver or
relinquishment in the future of such term or condition, but the same shall
continue in full force and effect.

         13. Any notices hereunder shall be sent to the Company and to the
Consultant at their respective addresses set forth above. Any notice shall be
given by registered or certified mail, postage prepaid, and shall be deemed to
have been given when deposited in the United States mail. Either party may
designate any other address to which notice shall be given by giving written
notice to the other of such change of address in the manner herein provided.

         14. This Agreement has been made in the State of New Jersey and shall
be construed and governed in accordance with the laws thereof without giving
effect to principles governing conflicts of law.

         15. This Agreement contains the entire agreement between the parties,
may not be altered or modified, except in writing and signed by the party to be
charged thereby, and supersedes any and all previous agreements between the
parties relating to the subject matter hereof.

         16. This Agreement shall be binding upon the parties hereto, the
indemnified parties referred to in Section 10, and their respective heirs,
administrators, successors and permitted assigns.

         IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto as of the date first above written.

                                           PICK COMMUNICATIONS CORP.

                                           By: /s/ Diego Leiva
                                              ----------------------------------
                                              Diego Leiva, Chairman of the Board

                                           CONSULTANT:

                                           By: /s/ Thomas M. Malone
                                              ----------------------------------
                                              Thomas M. Malone, individually

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