Document:

KANAKARIS COMMUNICATIONS, INC.

                             2000 STOCK OPTION PLAN

         1. PURPOSE OF THE PLAN. The purpose of this 2000 Stock Option Plan (the
"PLAN") of Kanakaris Communications, Inc., a Nevada corporation (the "COMPANY"),
is to provide the Company with a means of attracting and retaining the services
of highly motivated and qualified directors and key personnel. The Plan is
intended to advance the interests of the Company by affording to directors and
key employees, upon whose skill, judgment, initiative and efforts the Company is
largely dependent for the successful conduct of its business, an opportunity for
investment in the Company and the incentives inherent in stock ownership in the
Company. In addition, the Plan contemplates the opportunity for investment in
the Company by employees of companies that do business with the Company. For
purposes of this Plan, the term Company shall include subsidiaries, if any, of
the Company.

         2. LEGAL COMPLIANCE. It is the intent of the Plan that all options
granted under it ("OPTIONS") shall be either "Incentive Stock Options" ("ISOs"),
as such term is defined in Section 422 of the Internal Revenue Code of 1986, as
amended ("CODE"), or non-qualified stock options ("NQOs"); provided, however,
that ISOs shall be granted only to employees of the Company. An Option shall be
identified as an ISO or an NQO in writing in the document or documents
evidencing the grant of the Option. All Options that are not so identified as
ISOs are intended to be NQOs. In addition, the Plan provides for the grant of
NQOs to employees of companies that do business with the Company. It is the
further intent of the Plan that it conform in all respects with the requirements
of Rule 16b-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended ("RULE 16b-3"). To the extent that any aspect
of the Plan or its administration shall at any time be viewed as inconsistent
with the requirements of Rule 16b-3 or, in connection with ISOs, the Code, such
aspect shall be deemed to be modified, deleted or otherwise changed as necessary
to ensure continued compliance with such provisions.

         3. ADMINISTRATION OF THE PLAN.

            3.1 PLAN COMMITTEE. The Plan shall be administered by a committee
("COMMITTEE"). The members of the Committee shall be appointed from time to time
by the Board of Directors of the Company ("BOARD") and shall consist of not less
than two nor more than five persons. Such persons shall be directors of the
Company. Notwithstanding the foregoing, the Board may act as the Committee at
any time or from time to time.

            3.2 GRANTS OF OPTIONS BY THE COMMITTEE. In accordance with the
provisions of the Plan, the Committee, by resolution, shall select those
eligible persons to whom Options shall be granted ("OPTIONEES"); shall determine
the time or times at which each Option shall be granted, whether an Option is an
ISO or an NQO and the number of shares to be subject to each Option; and shall
fix the time and manner in which the Option may be exercised, the Option
exercise price, and the Option period. The Committee shall determine the form of

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option agreement to evidence the foregoing terms and conditions of each Option,
which need not be identical, in the form provided for in SECTION 7. Such option
agreement may include such other provisions as the Committee may deem necessary
or desirable consistent with the Plan, the Code and Rule 16b-3.

            3.3 COMMITTEE PROCEDURES. The Committee from time to time may adopt
such rules and regulations for carrying out the purposes of the Plan as it may
deem proper and in the best interests of the Company. The Committee shall keep
minutes of its meetings and records of its actions. A majority of the members of
the Committee shall constitute a quorum for the transaction of any business by
the Committee. The Committee may act at any time by an affirmative vote of a
majority of those members voting. Such vote may be taken at a meeting (which may
be conducted in person or by any telecommunication medium) or by written consent
of Committee members without a meeting.

            3.4 FINALITY OF COMMITTEE ACTION. The Committee shall resolve all
questions arising under the Plan and option agreements entered into pursuant to
the Plan. Each determination, interpretation, or other action made or taken by
the Committee shall be final and conclusive and binding on all persons,
including, without limitation, the Company, its stockholders, the Committee and
each of the members of the Committee, and the directors, officers and employees
of the Company, including Optionees and their respective successors in interest.

            3.5 NON-LIABILITY OF COMMITTEE MEMBERS. No Committee member shall be
liable for any action or determination made by him or her in good faith with
respect to the Plan or any Option granted under it.

         4. BOARD POWER TO AMEND, SUSPEND, OR TERMINATE THE PLAN. The Board may,
from time to time, make such changes in or additions to the Plan as it may deem
proper and in the best interests of the Company and its stockholders. The Board
may also suspend or terminate the Plan at any time, without notice, and in its
sole discretion. Notwithstanding the foregoing, no such change, addition,
suspension, or termination by the Board shall (i) materially impair any option
previously granted under the Plan without the express written consent of the
optionee; or (ii) materially increase the number of shares subject to the Plan,
materially increase the benefits accruing to optionees under the Plan,
materially modify the requirements as to eligibility to participate in the Plan
or alter the method of determining the option exercise price described in
Section 8, without stockholder approval.

         5. SHARES SUBJECT TO THE PLAN. For purposes of the Plan, the Committee
is authorized to grant Options for up to 3,000,000 shares of the Company's
common stock ("COMMON STOCK"), or the number and kind of shares of stock or
other securities which, in accordance with SECTION 13, shall be substituted for
such shares of Common Stock or to which such shares shall be adjusted. The
Committee is authorized to grant Options under the Plan with respect to such
shares. Any or all unsold shares subject to an Option which for any reason
expires or otherwise terminates (excluding shares returned to the Company in
payment of the exercise price for additional shares) may again be made subject
to grant under the Plan.

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         6. OPTIONEES. Options shall be granted only to officers, directors or
key employees of the Company or employees of companies that do business with
the Company designated by the Committee from time to time as Optionees. Any
Optionee may hold more than one option to purchase Common Stock, whether such
option is an Option held pursuant to the Plan or otherwise. An Optionee who is
an employee of the Company ("EMPLOYEE OPTIONEE") and who holds an Option must
remain a continuous full or part-time employee of the Company from the time of
grant of the Option to him until the time of its exercise, except as provided in
SECTION 10.3.

         7. GRANTS OF OPTIONS. The Committee shall have the sole discretion to
grant Options under the Plan and to determine whether any Option shall be an ISO
or an NQO. The terms and conditions of Options granted under the Plan may differ
from one another as the Committee, in its absolute discretion, shall determine
as long as all Options granted under the Plan satisfy the requirements of the
Plan. Upon determination by the Committee that an Option is to be granted to an
Optionee, a written option agreement evidencing such Option shall be given to
the Optionee, specifying the number of shares subject to the Option, the Option
exercise price, whether the Option is an ISO or an NQO, and the other individual
terms and conditions of such Option. Such option agreement may incorporate
generally applicable provisions from the Plan, a copy of which shall be provided
to all Optionees at the time of their initial grants under the Plan. The Option
shall be deemed granted as of the date specified in the grant resolution of the
Committee, and the option agreement shall be dated as of the date of such
resolution. Notwithstanding the foregoing, unless the Committee consists solely
of non-employee directors, any Option granted to an executive officer, director
or 10% beneficial owner for purposes of Section 16 of the Securities Exchange
Act of 1934, as amended ("SECTION 16 OF THE 1934 ACT"), shall either be (a)
conditioned upon the Optionee's agreement not to sell the shares of Common Stock
underlying the Option for at least six months after the date of grant or (b)
approved by the entire Board or by the stockholders of the Company.

         8. OPTION EXERCISE PRICE. The price per share to be paid by the
Optionee at the time an ISO is exercised shall not be less than 100% of the Fair
Market Value (as hereinafter defined) of one share of the optioned Common Stock
on the date on which the Option is granted. No ISO may be granted under the Plan
to any person who, at the time of such grant, owns (within the meaning of
Section 424(d) of the Code) stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or of any parent thereof,
unless the exercise price of such ISO is at least equal to 110% of Fair Market
Value on the date of grant. The price per share to be paid by the Optionee at
the time an NQO is exercised shall not be less than 85% of the Fair Market Value
on the date on which the NQO is granted, as determined by the Committee. For
purposes of the Plan, the "FAIR MARKET VALUE" of a share of the Company's Common
Stock as of a given date shall be: (i) the closing price of a share of the
Company's Common Stock on the principal exchange on which shares of the
Company's Common Stock are then trading, if any, on the day immediately
preceding such date, or, if shares were not traded on such date, then on the
next preceding trading day during which a sale occurred; or (ii) if the
Company's Common Stock is not traded on an exchange but is quoted on Nasdaq or a
successor quotation system, (1) the last sales price (if the Common Stock is
then listed as a National Market Issue under the Nasdaq National Market System)
or the Over-the-Counter Bulletin Board system or (2) the closing representative
bid price (in all other cases) for the Common Stock on the day immediately

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preceding such date as reported by Nasdaq or such successor quotation system; or
(iii) if the Company's Common Stock is not publicly traded on an exchange and
not quoted on Nasdaq or a successor quotation system, the closing bid price for
the Common Stock on such date as determined in good faith by the Committee; or
(iv) if the Company's Common Stock is not publicly traded, the fair market value
established by the Committee acting in good faith. In addition, with respect to
any ISO, the Fair Market Value on any given date shall be determined in a manner
consistent with any regulations issued by the Secretary of the Treasury for the
purpose of determining fair market value of securities subject to an ISO plan
under the Code.

         9. CEILING OF ISO GRANTS. The aggregate Fair Market Value
(determined at the time any ISO is granted) of the Common Stock with respect to
which an Optionee's ISOs, together with incentive stock options granted under
any other plan of the Company and any parent, are exercisable for the first time
by such Optionee during any calendar year shall not exceed $100,000. If an
Optionee holds such incentive stock options that become first exercisable
(including as a result of acceleration of exercisability under the Plan) in any
one year for shares having a Fair Market Value at the date of grant in excess of
$100,000, then the most recently granted of such ISOs, to the extent that they
are exercisable for shares having an aggregate Fair Market Value in excess of
such limit, shall be deemed to be NQOs.

         10. DURATION, EXERCISABILITY, AND TERMINATION OF OPTIONS.

            10.1 OPTION PERIOD. The option period shall be determined by the
Committee with respect to each Option granted. In no event, however, may the
option period exceed ten years from the date on which the Option is granted, or
five years in the case of a grant of an ISO to an Optionee who is a 10%
stockholder at the date on which the Option is granted as described in SECTION
8.

            10.2 EXERCISABILITY OF OPTIONS. Each Option shall be exercisable in
whole or in consecutive installments, cumulative or otherwise, during its term
as determined in the discretion of the Committee.

            10.3 TERMINATION OF OPTIONS DUE TO TERMINATION OF EMPLOYMENT,
DISABILITY, OR DEATH OF OPTIONEE; TERMINATION FOR "CAUSE," OR RESIGNATION IN
VIOLATION OF AN EMPLOYMENT AGREEMENT. All Options granted under the Plan to any
Employee Optionee shall terminate and may no longer be exercised if the Employee
Optionee ceases, at any time during the period between the grant of the Option
and its exercise, to be an employee of the Company; provided, however, that the
Committee may alter the termination date of the Option if the Optionee transfers
to an affiliate of the Company. Notwithstanding the foregoing, (i) if the
Employee Optionee's employment with the Company shall have terminated for any
reason (other than involuntary dismissal for "cause" or voluntary resignation in
violation of any agreement to remain in the employ of the Company, including,
without limitation, any such agreement pursuant to SECTION 15), he may, at any
time before the expiration of three months after such termination or before
expiration of the Option, whichever shall first occur, exercise the Option (to
the extent that the Option was exercisable by him on the date of the termination
of his employment); (ii) if the Employee Optionee's employment shall have
terminated due to disability (as defined in Section 22(e)(3) of the Code and
subject to such proof of disability as the Committee may require), such Option

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may be exercised by the Employee Optionee (or by his guardian(s), or
conservator(s), or other legal representative(s)) before the expiration of
twelve months after such termination or before expiration of the Option,
whichever shall first occur (to the extent that the Option was exercisable by
him on the date of the termination of his employment); (iii) in the event of the
death of the Employee Optionee, an Option exercisable by him at the date of his
death shall be exercisable by his legal representative(s), legatee(s), or
heir(s), or by his beneficiary or beneficiaries so designated by him, as the
case may be, within twelve months after his death or before the expiration of
the Option, whichever shall first occur (to the extent that the Option was
exercisable by him on the date of his death); and (iv) if the Employee
Optionee's employment is terminated for "cause" or in violation of any agreement
to remain in the employ of the Company, including, without limitation, any such
agreement pursuant to SECTION 14, his Option shall terminate immediately upon
termination of employment, and such Option shall be deemed to have been
forfeited by the Optionee. For purposes of the Plan, "CAUSE" may include,
without limitation, any illegal or improper conduct (1) which injures or impairs
the reputation, goodwill, or business of the Company; (2) which involves the
misappropriation of funds of the Company, or the misuse of data, information, or
documents acquired in connection with employment by the Company; or (3) which
violates any other directive or policy promulgated by the Company. A termination
for cause may also include any resignation in anticipation of discharge for
cause or resignation accepted by the Company in lieu of a formal discharge for
cause.

         11. MANNER OF OPTION EXERCISE; RIGHTS AND OBLIGATIONS OF OPTIONEES.

            11.1 WRITTEN NOTICE OF EXERCISE. An Optionee may elect to exercise
an Option in whole or in part, from time to time, subject to the terms and
conditions contained in the Plan and in the agreement evidencing such Option, by
giving written notice of exercise to the Company at its principal executive
office.

            11.2 CASH PAYMENT FOR OPTIONED SHARES. If an Option is exercised for
cash, such notice shall be accompanied by a cashier's or personal check, or
money order, made payable to the Company for the full exercise price of the
shares purchased.

            11.3 STOCK SWAP FEATURE. At the time of the Option exercise, and
subject to the discretion of the Committee to accept payment in cash only, the
Optionee may determine whether the total purchase price of the shares to be
purchased shall be paid solely in cash or by transfer from the Optionee to the
Company of previously acquired shares of Common Stock, or by a combination
thereof. If the Optionee elects to pay the total purchase price in whole or in
part with previously acquired shares of Common Stock, the value of such shares
shall be equal to their Fair Market Value on the date of exercise, determined by
the Committee in the same manner used for determining Fair Market Value at the
time of grant for purposes of SECTION 8.

            11.4 INVESTMENT REPRESENTATION FOR NON-REGISTERED SHARES AND
LEGALITY OF ISSUANCE. The receipt of shares of Common Stock upon the exercise of
an Option shall be conditioned upon the Optionee (or any other person who
exercises the Option on his or her behalf as permitted by SECTION 10.3)
providing to the Committee a written representation that, at the time of such
exercise, it is the intent of such person(s) to acquire the shares for
investment only and not with a view toward distribution. The certificate for
unregistered shares issued for investment shall be restricted by the Company as

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to transfer unless the Company receives an opinion of counsel satisfactory to
the Company to the effect that such restriction is not necessary under then
pertaining law. The providing of such representation and such restrictions on
transfer shall not, however, be required upon any person's receipt of shares of
Common Stock under the Plan in the event that, at the time of grant of the
Option relating to such receipt or upon such receipt, whichever is the
appropriate measure under applicable federal or state securities laws, the
shares subject to the Option shall be (i) covered by an effective and current
registration statement under the Securities Act of 1933, as amended, and (ii)
either qualified or exempt from qualification under applicable state securities
laws. The Company shall, however, under no circumstances be required to sell or
issue any shares under the Plan if, in the opinion of the Committee, (i) the
issuance of such shares would constitute a violation by the Optionee or the
Company of any applicable law or regulation of any governmental authority, or
(ii) the consent or approval of any governmental body is necessary or desirable
as a condition of, or in connection with, the issuance of such shares.

            11.5 STOCKHOLDER RIGHTS OF OPTIONEE. Upon exercise, the Optionee (or
any other person who exercises the Option on his behalf as permitted by SECTION
10.3) shall be recorded on the books of the Company as the owner of the shares,
and the Company shall deliver to such record owner one or more duly issued stock
certificates evidencing such ownership. No person shall have any rights as a
stockholder with respect to any shares of Common Stock covered by an Option
granted pursuant to the Plan until such person shall have become the holder of
record of such shares. Except as provided in SECTION 13, no adjustments shall be
made for cash dividends or other distributions or other rights as to which there
is a record date preceding the date such person becomes the holder of record of
such shares.

            11.6 HOLDING PERIODS FOR TAX PURPOSES. The Plan does not provide
that an Optionee must hold shares of Common Stock acquired under the Plan for
any minimum period of time. Optionees are urged to consult with their own tax
advisors with respect to the tax consequences to them of their individual
participation in the Plan.

         12. SUCCESSIVE GRANTS. Successive grants of Options may be made to any
Optionee under the Plan.

         13. ADJUSTMENTS.

             (a) If the outstanding Common Stock shall be hereafter increased or
decreased, or changed into or exchanged for a different number or kind of shares
or other securities of the Company or of another corporation, by reason of a
recapitalization, reclassification, reorganization, merger, consolidation, share
exchange, or other business combination in which the Company is the surviving
parent corporation, stock split-up, combination of shares, or dividend or other
distribution payable in capital stock or rights to acquire capital stock,
appropriate adjustment shall be made by the Committee in the number and kind of
shares for which options may be granted under the Plan. In addition, the
Committee shall make appropriate adjustment in the number and kind of shares as
to which outstanding and unexercised options shall be exercisable, to the end
that the proportionate interest of the holder of the option shall, to the extent
practicable, be maintained as before the occurrence of such event. Such
adjustment in outstanding options shall be made without change in the total

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price applicable to the unexercised portion of the option but with a
corresponding adjustment in the exercise price per share.

             (b) In the event of the dissolution or liquidation of the Company,
any outstanding and unexercised options shall terminate as of a future date to
be fixed by the Committee.

             (c) In the event of a Reorganization (as hereinafter defined),
then,

                 (i) If there is no plan or agreement with respect to the
Reorganization ("REORGANIZATION AGREEMENT"), or if the Reorganization Agreement
does not specifically provide for the adjustment, change, conversion, or
exchange of the outstanding and unexercised options for cash or other property
or securities of another corporation, then any outstanding and unexercised
options shall terminate as of a future date to be fixed by the Committee; or

                 (ii) If there is a Reorganization Agreement, and the
Reorganization Agreement specifically provides for the adjustment, change,
conversion, or exchange of the outstanding and unexercised options for cash or
other property or securities of another corporation, then the Committee shall
adjust the shares under such outstanding and unexercised options, and shall
adjust the shares remaining under the Plan which are then available for the
issuance of options under the Plan if the Reorganization Agreement makes
specific provisions therefor, in a manner not inconsistent with the provisions
of the Reorganization Agreement for the adjustment, change, conversion, or
exchange of such options and shares.

             (d) The term "REORGANIZATION" as used in this SECTION 13 shall mean
any reorganization, merger, consolidation, share exchange, or other business
combination pursuant to which the Company is not the surviving parent
corporation after the effective date of the Reorganization, or any sale or lease
of all or substantially all of the assets of the Company. Nothing herein shall
require the Company to adopt a Reorganization Agreement, or to make provision
for the adjustment, change, conversion, or exchange of any options, or the
shares subject thereto, in any Reorganization Agreement which it does adopt.

             (e) The Committee shall provide to each optionee then holding an
outstanding and unexercised option not less than 30 calendar days' advanced
written notice of any date fixed by the Committee pursuant to this SECTION 13
and of the terms of any Reorganization Agreement providing for the adjustment,
change, conversion, or exchange of outstanding and unexercised options. Except
as the Committee may otherwise provide, each optionee shall have the right
during such period to exercise his option only to the extent that the option was
exercisable on the date such notice was provided to the optionee.

                 Any adjustment to any outstanding ISO pursuant to this SECTION
13, if made by reason of a transaction described in Section 424(a) of the Code,
shall be made so as to conform to the requirements of that Section and the
regulations thereunder. If any other transaction described in Section 424(a) of
the Code affects the Common Stock subject to any unexercised ISO theretofore
granted under the Plan (hereinafter for purposes of this SECTION 13 referred to
as the "OLD OPTION"), the Board of Directors of the Company or of any surviving
or acquiring corporation may take such action as it deems appropriate, in

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conformity with the requirements of that Code Section and the regulations
thereunder, to substitute a new option for the old option, in order to make the
new option, as nearly as may be practicable, equivalent to the old option, or to
assume the old option.

             (f) No modification, extension, renewal, or other change in any
option granted under the Plan may be made, after the grant of such option,
without the optionee's consent, unless the same is permitted by the provisions
of the Plan and the option agreement. In the case of an ISO, optionees are
hereby advised that certain changes may disqualify the ISO from being considered
as such under Section 422 of the Code, or constitute a modification, extension,
or renewal of the ISO under Section 424(h) of the Code.

             (g) All adjustments and determinations under this SECTION 13 shall
be made by the Committee in good faith in its sole discretion.

         14. CONTINUED EMPLOYMENT. As determined in the sole discretion of the
Committee at the time of grant and if so stated in a writing signed by the
Company, each Option may have as a condition the requirement of an Employee
Optionee to remain in the employ of the Company, or of its affiliates, and to
render to it his or her exclusive service, at such compensation as may be
determined from time to time by it, for a period not to exceed the term of the
Option, except for earlier termination of employment by or with the express
written consent of the Company or on account of disability or death. The failure
of any Employee Optionee to abide by such agreement as to any Option under the
Plan may result in the termination of all of his or her then outstanding Options
granted pursuant to the Plan. Neither the creation of the Plan nor the granting
of Option(s) under it shall be deemed to create a right in an Employee Optionee
to continued employment with the Company, and each such Employee Optionee shall
be and shall remain subject to discharge by the Company as though the Plan had
never come into existence. Except as specifically provided by the Committee in
any particular case, the loss of existing or potential profit in options granted
under this Plan shall not constitute an element of damages in the event of
termination of the employment of an employee even if the termination is in
violation of an obligation of the Company to the employee by contract or
otherwise.

         15. TAX WITHHOLDING. The exercise of any Option granted under the Plan
is subject to the condition that if at any time the Company shall determine, in
its discretion, that the satisfaction of withholding tax or other withholding
liabilities under any federal, state or local law is necessary or desirable as a
condition of, or in connection with, such exercise or a later lapsing of time or
restrictions on or disposition of the shares of Common Stock received upon such
exercise, then in such event, the exercise of the Option shall not be effective
unless such withholding shall have been effected or obtained in a manner
acceptable to the Company. When an Optionee is required to pay to the Company an
amount required to be withheld under applicable income tax laws in connection
with the exercise of any Option, the Optionee may, subject to the approval of
the Committee, which approval shall not have been disapproved at any time after
the election is made, satisfy the obligation, in whole or in part, by electing
to have the Company withhold shares of Common Stock having a value equal to the
amount required to be withheld. The value of the Common Stock withheld pursuant
to the election shall be determined by the Committee, in accordance with the
criteria set forth in SECTION 8, with reference to the date the amount of tax to

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be withheld is determined. The Optionee shall pay to the Company in cash any
amount required to be withheld that would otherwise result in the withholding of
a fractional share. The election by an Optionee who is an officer of the Company
within the meaning of Section 16 of the 1934 Act, to be effective, must meet all
of the requirements of Section 16 of the 1934 Act.

16. TERM OF PLAN.

            16.1 EFFECTIVE DATE. Subject to stockholder approval, the Plan shall
become effective as of May 24, 2000.

            16.2 TERMINATION DATE. Except as to options granted and outstanding
under the Plan prior to such time, the Plan shall terminate at midnight on May
24, 2010, and no Option shall be granted after that time. Options then
outstanding may continue to be exercised in accordance with their terms. The
Plan may be suspended or terminated at any earlier time by the Board within the
limitations set forth in SECTION 4.

         17. NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to amend, modify, or rescind any previously approved compensation
plans, programs or options entered into by the Company. This Plan shall be
construed to be in addition to and independent of any and all such other
arrangements. Neither the adoption of the Plan by the Board nor the submission
of the Plan to the stockholders of the Company for approval shall be construed
as creating any limitations on the power or authority of the Board to adopt,
with or without stockholder approval, such additional or other compensation
arrangements as the Board may from time to time deem desirable.

         18. GOVERNING LAW. The Plan and all rights and obligations under it
shall be construed and enforced in accordance with the laws of the State of
California.

         19. INFORMATION TO OPTIONEES. Optionees under the Plan who do not
otherwise have access to financial statements of the Company will receive the
Company's financial statements at least annually.

                                      -9-May 24, 2000

         Reference is made to the (a) Agreement dated June 30, 1999 (the "June
30 Agreement") between Phon-Net.com, Inc. ("Phon-Net") and Quad-Linq Software,
Inc. ("Quad-Linq"), and (b) Agreement dated December 3,1999 (the "December 3
Agreement"), by and between Roger L. Betterton ("Betterton") and Christopher E.
Georgelin ("Georgelin"), on the one hand, and Phon-Net, on the other hand. The
purpose of this letter is to confirm our understandings and to clarify certain
portions of the June 30 Agreement and the December 3 Agreement.

1. Betterton and Georgelin hereby confirm that at the time the June 30 Agreement
was entered into, each was an officer, director and principal shareholder of
Quad-Linq.

2. The June 30 Agreement was entered into for the principal purpose of
confirming that Quad-Linq had relinquished all of its right, title and interest
in and to software developed for Phon-Net, titled "Direct Connect" software (the
"Software"), including any right to revenue derived from the sale, license or
other marketing of the Software. Those rights were previously conferred on
Quad-Linq under a January 6, 1999 agreement between Phon-Net and Quad-Linq.

3. At the time the June 30 Agreement was entered into, development of the
Software had been completed and the Software was fully operational and ready to
be marketed. While Quad-Linq undertook to perform certain support services
pursuant to the June 30 Agreement (the "Services"), such services were not
deemed significant and were ancillary to product development.

4. As consideration for the relinquishment of rights by Quad-Linq under the June
30 Agreement, Phon-Net issued 3,000,000 shares of common stock to Quad-Linq and
granted options to purchase an additional 2,000,000 shares of common stock to
Quad-Linq. Quad-Linq assigned a portion of the shares and options to each of its
three principals, with the balance being retained by Quad-Linq.

5. In November 1999, the principals of Quad-Linq caused the dissolution of
Quad-Linq, as a result of which, Quad-Linq was unable to continue to perform the
remaining Services under the June 30 Agreement. The sentence of the December 3
Agreement stating that "[t]his Agreement is to replace the Amended Agreement
between Quad-Linq and the Client due to non-performance" was intended to convey
Quad-Linq's inability to perform due to its dissolution.

6. In order to provide continuity of support services for the Software,
Betterton and Georgelin, individually, entered into the December 3 Agreement and
agreed to provide the balance of the Services required of Quad-Linq under the
June 30 Agreement.

7. Phon-Net was not obligated to compensate Betterton and Georgelin for their
services under the December 3 Agreement. However, Phon-Net recognized the
assignment by Quad-Linq to Betterton and Georgelin of the 1,000,000 Phon-Net
shares and 986,667 Phon-Net options that remained in Quad-Linq's name at the
date of its dissolution. Included in such options were 320,000 options
previously assigned by Quad-Linq to Seidmehdi Seidbagherzadeh, and reassigned to
Quad-Linq in connection with its dissolution.

<PAGE>

8. The sentence in the December 3 Agreement stating that [t]he Common Shares and
Options received will be the remaining balance of the Amended Agreement referred
to in Exhibit A" refers to Quad-Linq's assignment of the shares and options to
Betterton and Georgelin.

9. Betterton and Georgelin agree and acknowledge that, other than the 3,000,000
shares and 2,000,000 options issued pursuant to the June 30 Agreement, (a) no
additional shares or options have been issued by Phon-Net pursuant to the June
30 Agreement or the December 3 Agreement, and (b) Phon-Net is not obligated to
issue additional shares, grant additional options or otherwise to further
compensate them for their assumption of the balance of Quad-Linq's services as
delineated in the June 30 Agreement and assumed by them in the December 3
Agreement.

10. While not legally obligated to do so, Betterton and Georgelin agreed to
assume the balance of Quad-Linq's obligations under the June 30 Agreement
because (a) the services to be performed would not require them to devote
substantial time or resources to complete, (b) they felt morally obligated to
complete the services of Quad-Linq, an entity in which they were principals and
a relationship which affected their individual reputations, and (c) they
received an assignment of the balance of the shares and options remaining in
Quad-Linq's name, and, as shareholders of Phon-Net, they would benefit from
completion of the Services and the successful marketing of the Software by
Phon-Net.

11. The parties confirm and acknowledge that the 3,000,000 shares of Phon-Net
common stock and the 2,000,000 options to purchase Phon-Net common stock that
were issued under the June 30 Agreement are currently owned as follows:
<TABLE>
<CAPTION>

         Name                                        No. Shares                       No. Options
         ----                                        ----------                       -----------
<S>                                                  <C>                                <C>
Roger L. Betterton                                   1,652,666                          1,280,000
Christopher E. Georgelin                               853,677                            720,000
Seidmehdi Seidbagherzadeh                              493,657                                  -
                                                     ---------                      -------------

                                                     3,000,000                          2,000,000
                                                     =========                      =============
</TABLE>

                                                     PHON-NET.COM, INC.

                                                     By:/s/ Brian Collins
                                                     --------------------
                                                     Brian Collins, CEO

                                                     /s/ Roger L. Betterton
                                                     ----------------------
                                                     ROGER L. BETTERTON

                                                     Christopher E. Georgelin
                                                     ------------------------
                                                     CHRISTOPHER E. GEORGELIN

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