Document:

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                                                                   Exhibit 10.21

                              EMPLOYMENT AGREEMENT

PARTIES:                      PF.NET CORP.                       (the "Company")
                              a Delaware corporation

                              STEPHEN IRWIN                         ("Employee")

DATED EFFECTIVE:              November 1, 1999

                                     RECITAL

         The Company desires to employ and retain the unique experience,
abilities and services of Employee.

                                    AGREEMENT

         The parties agree as follows:

1.       EMPLOYMENT

         1.1 TERM. Subject to Section 6, the Company agrees to employ Employee
for a term commencing on the effective date of this Agreement and terminating
December 31, 2000.

         1.2 DUTIES. Employee accepts employment with the Company on the terms
and conditions set forth in this Agreement. Employee agrees to devote
substantially all of Employee's working time during the term of this Agreement
to the performance of Employee's duties under this Agreement. Employee shall be
responsible for exercising management direction and control of the activities
associated with the construction of the AT&T System (as defined in the Fiber
Optic System Agreement No. 4569177 between AT&T Corp. and PF.Net Corp.), and
performing such other duties consistent with prior duties as may be determined
by the Board of Directors of the Company. In performing duties, Employee shall
be subject to the direction and control of the Board of Directors of the
Company. Employee acknowledges that all policy making functions will be
determined by the Board of Directors of the Company and executive officers of
the Company and that Employee's authority will be limited to the implementation
of the policies. Employee shall perform Employee's duties faithfully,
intelligently, diligently, to the best of Employee's ability and in the best
interests of the Company. The Company acknowledges that, to the extent not
inconsistent with Section 5, Employee may serve on the boards of directors or
other governing body of other companies, including charitable entities; provided
that if a company is a competitor of the Company, Employee will not serve on the
board of directors of that competitor without obtaining the prior written
consent of the Company. In addition, the Company acknowledges (a) that Employee
shall have the right (i) to pursue Employee's interest in The Meadows LLC and
its affiliates, (ii) to continue Employee's "of counsel" relationship with
Olshan, Grundman, Frome, Rosenzweig and Wolosky LLP, (iii) to act as a
consultant to certain companies whose businesses are not

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competitive with the business of the Company, and (iv) monitor and pursue
Employee's private investments, and (b) that provided Employee does not spend
more than 20% of Employee's working time during the term of this Agreement with
respect to such ventures, the pursuit of such ventures by Employee shall not be
a breach of this Agreement. Finally, the Company acknowledges that Employee may
be required to devote time and attention to certain matters related to GST
Telecommunications, Inc. and its affiliates, limited solely to litigation
matters, and agrees that the pursuit of such matters shall not be a breach of
this Agreement.

2.       COMPENSATION

         2.1 BASE COMPENSATION. In consideration of all services to be performed
by Employee for the Company, the Company shall pay to Employee base compensation
of $29,166.67 monthly, payable in equal semi-monthly installments.

         2.2 BONUS COMPENSATION. With respect to the period ending December 31,
2000, Employee shall be eligible to receive a performance-based bonus which
shall be payable in an amount, if any, determined by the Board of Directors of
the Company in its sole discretion.

         2.3 OTHER BENEFITS. The Company shall pay Employee a car allowance of
$600 per month, payable on the first day of each calendar month and shall pay
for the benefit of Employee and Employee's spouse, during the term of this
Agreement, medical and dental insurance and life insurance on Employee in the
amount of $1,000,000. Further, in the event the Employee's employment with the
Company is terminated without Cause or at the expiration of the term (including
any extensions of this Agreement), the Company shall pay for the benefit of
Employee and Employee's spouse full medical and dental insurance coverage and
life insurance coverage on the Employee in the amount of $1,000,000, during the
period commencing on the date of termination without Cause or the expiration of
this Agreement and ending on the later of (a) the last day of the Severance
Period (as defined in Section 6.3.3), (b) the last day of the Consulting Term
(as defined in Section 7.1) or (c) the date Employee violates any of the
covenants set forth in Section 5.

         2.4 VACATION. Employee shall be entitled to one or more vacations
totaling 30 working days annually accruing ratably during the term of this
Agreement.

         2.5 CHANGE OF CONTROL. Notwithstanding anything to the contrary in
Section 6, if on or within the first 60 days following the date of a Change of
Control during the term of this Agreement, Employee voluntarily terminates his
employment with the Company, the Company shall continue to pay Employee, in
accordance with the Company's customary payroll practices, (a) base compensation
described in Section 2.1 through the last day of the term of this Agreement as
set forth in Section 1.1 (b) any accrued but unpaid bonus compensation payable
pursuant to Section 2.2, and (c) the consulting fee described in Section 7.3
through the last day of the Consulting Term as set forth in Section 7.1. For
purposes of this Agreement, a Change of Control means (i) the direct or indirect
sale, exchange or other transfer of all or substantially all (60% or more) of
the assets of the Company or of PF.Net Holdings, Limited, a Delaware corporation
("Holdings"), to any person or entity or group of persons or entities acting in
concert which does not include any stockholder or member prior to any such
transfer (a "Group of Persons"), (ii) the merger, consolidation or other
business combination of the Company or

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Holdings with the effect that the members or shareholders of the Company, as the
case may be, immediately following the merger, consolidation or other business
combination, hold 50% or less of the combined voting power of the
then-outstanding ownership interests or securities of the surviving entity of
such merger, consolidation or other business combination, (iii) the replacement
of three-fourths or more of the Board of Directors of the Company or the Board
of Directors of Holdings in any given 12-month period as compared to the
directors at the beginning of such 12-month period, and such replacement(s)
shall not have been approved by the Board of Directors of the Company or the
Board of Directors of Holdings, as applicable, as constituted at the beginning
of such 12-month period, or (iv) a person or Group of Persons other than the
Permitted Holders or a Permitted Group shall have become the beneficial owner of
ownership interests or securities of the Company or Holdings representing 60% or
more of the combined voting power of the Company or Holdings. For purposes of
this Section 2.5, the terms "Permitted Holders" and "Permitted Group" shall have
the meanings set forth in the Form of Description of Notes of Holdings attached
as Exhibit XI to that certain Bridge Loan Agreement dated as of October 29,
1999.

3.       EXPENSES

         Employee shall be entitled to reimbursement from the Company for
reasonable expenses incurred by Employee in the performance of Employee's duties
under this Agreement in accordance with the Company's applicable expense and
travel policies upon presentation of vouchers or other required documentation
indicating in reasonable detail the amount and business purpose of each such
expense.

4.       FACILITIES AND LOCATION

         Employee shall be provided a private office, secretarial services and
such other facilities, supplies and services as shall be required for the
performance of Employee's duties under this Agreement which office, secretarial
services and other facilities, supplies and services shall not cost in the
aggregate more than $10,000 per month. Employee shall perform Employee's duties
in the New York City - Northern New Jersey metropolitan area, at a location
agreed upon by the Company and Employee.

5.       CONFIDENTIALITY; COVENANT NOT TO COMPETE

         5.1 AFFILIATES. For purposes of this Section 5, the term "Company"
shall include the Company and any and all affiliates of the Company.

         5.2 CONFIDENTIALITY.

                  5.2.1 CONFIDENTIALITY. Employee acknowledges and agrees that
all trade secrets, information, lists of customers and vendors, product planning
information, marketing research, marketing plans and strategies, pricing
strategies, financial information, data of the Company or any other information
proprietary to the Company ("Confidential Information") are valuable assets of
the Company.

                  5.2.2 OWNERSHIP. Employee acknowledges and agrees that all
Confidential Information is and shall continue to be the exclusive property of
the Company, whether or not

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conceived, discovered or developed, in whole or in part, by Employee and whether
or not disclosed or entrusted to Employee in connection with Employee's
employment by the Company.

                  5.2.3 ACKNOWLEDGMENT OF RECEIPT OF CONFIDENTIAL INFORMATION.
Employee acknowledges that in the course of performing employment services for
the Company, Employee will have access to Confidential Information, the
ownership and confidential status of which are highly important to the Company,
and Employee agrees, in addition to the specified covenants contained in the
Agreement, to comply with all policies and procedures of the Company for the
protection of Confidential Information.

                  5.2.4 COVENANT OF NONDISCLOSURE. Except for disclosure of
Confidential Information to other employees or consultants of the Company on a
"need to know" basis in the course of performing employment services for the
Company, Employee agrees not to disclose Confidential Information, directly or
indirectly, under any circumstances or by any means, to any person or enterprise
without the prior written consent of the Company, which consent may be granted
or withheld by the company in its sole discretion.

                  5.2.5 COVENANT OF NONUSE. Employee agrees not to copy,
transmit, reproduce, summarize, quote or make any commercial or other use
whatsoever of Confidential Information, except as may be necessary to perform
the duties of employment for the Company.

                  5.2.6 SAFEGUARD OF CONFIDENTIAL INFORMATION. Employee agrees
to exercise the highest degree of care in safeguarding Confidential Information
against loss, theft or other inadvertent disclosure and agrees generally to take
all steps necessary to ensure the maintenance of confidentiality.

         5.3 RETURN OF DOCUMENTS. Employee agrees that all originals and copies
of records, data, reports, documents, lists, plans, correspondence, memoranda,
notes and other materials related to or containing any confidential information,
in whatever form they exist, whether written, film, tape, computer disk or other
form of media, shall be the sole and exclusive property of the Company and shall
be returned promptly to the Company on the termination of this Agreement.

         5.4 COVENANT NOT TO COMPETE.

                  5.4.1 COVENANT. Employee covenants and agrees that for the
Restriction Period (defined in Section 5.4.2), Employee shall not:

                  (a) Directly or indirectly in any manner or capacity (e.g., as
         an advisor, principal, agent, partner, officer, director, stockholder,
         employee, member of any association or otherwise) without in each
         instance obtaining prior written consent of the Company, which consent
         may be granted or withheld by the Company in its sole discretion,
         engage, in, work for, consult provide advice or assistance or otherwise
         participate within or with respect to North America, in the business of
         providing dark fiber, conduit and bandwidth on long haul fiber optic
         network telecommunicating systems, or in any other business which may
         be in competition with the business conducted by the Company on the
         date of this Agreement or commenced at any time

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         during the Restriction Period or the subject of any agreement, plan or
         proposal approved by the Board of the Directors of Holdings or the
         Board of Directors of any affiliate of Holdings during such period;
         provided, however, that Employee may (i) own up to three percent (3%)
         of the outstanding shares or other equity securities of any enterprise
         that is a reporting company under the Securities Exchange Act of 1934,
         as amended, and (ii) own any shares of common stock of GST
         Telecommunications, Inc. held by Employee as of the effective date of
         this Agreement. Employee further agrees that during the Restriction
         Period he will not assist or encourage any other person in carrying out
         any activity that would be prohibited by this Section 5.4 if such
         activity were carried out by Employee.

                  (b) For the benefit of Employee or any other person or
         enterprise (i) solicit any business whatsoever from any vendor or
         customer of the business conducted by the Company, (ii) induce or cause
         any vendor to cease providing or selling any service or product to the
         Company or to terminate or change such vendor's business relationship
         with the Company in any manner or (iii) induce or cause any customer to
         cease purchasing any product or service from the Company or to
         terminate or change such customer's relationship with the Company in
         any manner.

                  (c) For the benefit of Employee or any other person or
         enterprise (i) induce or solicit any person who is then employed by the
         Company, or has been employed by the Company at any time during the
         one-year period preceding such inducement or solicitation, to leave
         that person's employment or other position with the Company or to
         accept any other employment or position or (ii) otherwise assist any
         person or enterprise in hiring or otherwise engaging such person.

                  (d) Violate any Conflict of Interest Policy of the Company.

                  5.4.2 RESTRICTION PERIOD. The covenant set forth in Section
5.4.1 shall be binding on Employee for a period (the "Restriction Period")
commencing on the date of this Agreement and ending on the later of (a) the
first anniversary of the date Employee's employment with the Company is
terminated or (b) the last day of the Consulting Term (as defined in Section
7.1); provided, however, that the latest the Restriction Period shall terminate
in any event is December 31, 2005.

         5.5 REASONABLENESS OF RESTRICTIONS. Employee acknowledges and confirms
that the agreements, acknowledgements and covenants set forth in this Section 5
(a) do not impose unreasonable restrictions or work a hardship upon Employee,
(b) are essential to the willingness of the Company to employ Employee, (c) are
necessary and fundamental to the protection of the business conducted by the
Company and (d) are reasonable as to scope, duration and territory. Employee
waives any and all defenses to the enforcement of the covenants set forth in
this Section 5. Employee specifically acknowledges the payments under this
agreement and shares of equity securities of the Company that he has or will
receive are being provided by the Company in consideration of the covenants set
forth in this Section 5 and that such payments and equity securities constitute
good, valuable and adequate consideration for such covenants. If it is
determined by any court of competent jurisdiction that any restriction in this
Section 5 is excessive in duration or scope or is unreasonable or unenforceable
under any applicable law, it is

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the intention of the parties that such restriction may be modified or amended by
the court to render it enforceable to the maximum extent permitted by applicable
law.

         5.6 NO RELEASE. Employee agrees that the termination of this Agreement
shall not release Employee from any obligations under this Section 5.

6.       TERMINATION OF EMPLOYMENT

         6.1 CAUSES OR GROUND FOR TERMINATION OF EMPLOYMENT. The Company shall
have the right to terminate the employment of Employee at any time, without
notice and without payment of compensation in lieu of notice, under either of
the following conditions:

                  6.1.1 For cause ("Cause"), including, but not limited to, (i)
any form of dishonesty, criminal conduct or conduct involving moral turpitude
connected with the employment of Employee or which otherwise reflects adversely
upon the Company's reputation or operations, (ii) the refusal of Employee to
comply with the Company's written instructions, policies or rules as approved or
mandated by the Board of Directors of the Company, (iii) continuing or repeated
problems with Employee's performance or conduct or Employee's inattention to
duties after Employee has been provided written notice and a reasonable
opportunity to cure, (iv) any material breach of Employee's obligations under
this Agreement after Employee has been provided written notice and a reasonable
opportunity to cure or (v) any violation of any Conflict of Interest Policy of
the Company; provided, however, that "Cause" shall not include any conduct
related to Employee's litigation with GST Telecommunications, Inc. and its
affiliates unless there is a final judicial determination that such conduct
constituted fraud or intentional malfeasance; or

                  6.1.2 Employee has suffered a disability as a result of
illness, accident or other cause and is unable to perform a substantial portion
of Employee's usual duties of employment for a total (consecutive or cumulative)
of 90 days in any 12-month period after the date the disability commenced.

         6.2 DEATH. This Agreement and Employee's employment with the Company
shall terminate automatically upon Employee's death.

         6.3 EFFECT OF TERMINATION.

                  6.3.1 IN GENERAL. Upon the termination of employment, Employee
(or Employee's estate in the event of Employee's death) shall receive Employee's
base compensation prorated through the effective date of termination of
employment and any other payments, including, but not limited to, earned
vacation pay, to which Employee is entitled under the Company's policies. Any
termination of employment shall automatically terminate Employee's right to any
additional compensation or to other benefits paid by the Company except as
provided in Section 6.3.2 and 6.3.3.

                  6.3.2 TERMINATION UPON DISABILITY. In the event Employee's
employment is terminated as a result of a disability as provided in Section
6.1.2, the Company shall pay Employee, in accordance with the Company's
customary payroll practices, his base compensation during the period beginning
on the date of termination and ending on the earlier of

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(a) the first anniversary of the date of termination or (b) the last day of the
term of this Agreement as set forth in Section 1.1.

                  6.3.3 TERMINATION BY COMPANY WITHOUT CAUSE. In the event the
employment of Employee is terminated by the Company for any reason other than
for Cause, in addition to the compensation payable under Section 6.3.1, the
Company shall pay Employee, in accordance with the Company's customary payroll
practices, his base compensation during the period (the "Severance Period")
beginning on the date of termination and ending on the earliest of (a) the last
day of the term of this Agreement as set forth in Section 1.1 or (b) the date
Employee violates any of the covenants set forth in Section 5.

7.       CONSULTING SERVICES

         7.1 RETENTION AS CONSULTANT. The Company shall retain Employee as a
consultant ("Consultant") for a term of five years commencing on the later of
(a) the date of Employee's termination of employment with the Company or (b) the
last day of any period following the date of such termination of employment
during which any amounts are payable to Employee pursuant to Section 6.3;
provided, however, that in the event of a Change in Control Employee at his
election may terminate his consulting relationship with the Company at any time
following the second anniversary of such Change in Control (the "Consulting
Term"). Consultant shall be an independent contractor and shall not be
considered an employee or agent of the Company. The Company shall not have and
shall not exercise any control over the manner and means used by Consultant to
perform services.

         7.2 CONSULTING SERVICES. During the Consulting Term, Consultant shall
provide services to the Company on the following terms:

                  7.2.1 HOURS AND SERVICES. The services provided shall be not
more than 20 hours per month. If the Company does not request 20 hours of
services in any month, Consultant shall nevertheless be paid for 20 hours during
that month.

                  7.2.2 NOTICE. The Company shall advise Consultant, at least
one month in advance, of the number of hours of Consultant's time that will be
required during the calendar month in question. Consultant's services shall be
provided on dates and at times reasonably convenient to both parties.

         7.3 CONSULTING FEES; EXPENSES. Consultant shall be paid $10,000 per
month for services provided under this Agreement. During the Consulting Term,
Consultant shall be paid $2,500 per month as an allowance for office,
secretarial services and other facilities, supplies and services. Additionally,
Consultant shall be reimbursed for reasonable travel and business expenses
incurred in connection with the Company's business approved in advance by the
Company.

         7.4 TERMINATION. The Consulting Term shall terminate automatically on
the death of Consultant.

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         7.5 OTHER PROVISIONS. During the Consulting Term, Sections 1, 2, 3, 4
and 6 of this Agreement shall not be applicable except with respect to the
provision of medical, dental and life insurance as provided in Section 2.3.

8.       MISCELLANEOUS PROVISIONS

         8.1 BINDING NATURE. This Agreement shall inure to the benefit of and be
binding upon the parties and their respective legal representatives, successors
and assigns.

         8.2 MODIFICATION. This Agreement may not be changed or modified except
by the written agreement of the parties. No change, termination, or attempted
waiver of any of the provisions of this Agreement shall be binding unless in
writing. This Agreement may not be modified or terminated orally.

         8.3 WAIVER. The waiver by either the Company or Employee of a breach of
any provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach by either party and shall in no way affect the enforcement
of the other provisions of this Agreement.

         8.4 APPLICABLE LAW; VENUE. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, except to the
extent governed by federal law.

         8.5 ATTORNEYS' FEES. If any suit or action is filed by any party to
enforce this Agreement or otherwise with respect to the subject matter of this
Agreement, each party shall be responsible to pay the attorney fees and costs
incurred by such party in preparation or in prosecution or defense of such suit
or action and the court or adjudicator is not authorized to allocate attorney
fees and costs between the parties or to one party.

         8.6 INJUNCTIVE AND OTHER RELIEF. If any party breaches or threatens
breach of any provision of this Agreement, the other party shall be entitled to
damages. The parties agree that damages for any breach or threatened breach by a
party may, by its nature, be inadequate, and that the other party shall be
entitled, in addition to damages, to a restraining order, temporary and
permanent injunctive relief, specific performance and other appropriate
equitable relief, without showing or proving that any actual damage has been
sustained.

         8.7 NOTICES. Any notice or other communication required or permitted to
be given under this Agreement shall be in writing and shall be delivered
personally or mailed by certified mail, return receipt requested, postage
prepaid, addressed to the parties as follows:

                           If to Employee:    Stephen Irwin
                                              15 Eisenhower Drive
                                              Cresskil, NJ 07626

                           If to the Company: PF.Net Corp.
                                              1625 B Street
                                              Washougal, WA 98671

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Any notice or other communication shall be deemed to be given at the expiration
of the third day after the date of deposit in the United States Mail. The
addresses to which notices or other communications shall be mailed may be
changed from time to time by giving written notice to the other party as
provided in this Section 8.7.

COMPANY:                                          EMPLOYEE:

PF.NET CORP.                                      STEPHEN IRWIN

By:     /s/  JOHN WARTA                           /s/  STEPHEN IRWIN
   ----------------------------                   ---------------------------

Title:  Chief Executive Officer
      ------------------------

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                                                                   Exhibit 10.22

                              EMPLOYMENT AGREEMENT

PARTIES      PF. NET HOLDINGS, LIMITED                           (the "Company")

             DAVID L. TAYLOR                                        ("Employee")

DATED:       October 1, 1999

                                     RECITAL

      The Company is engaged in the business of providing the fiber optic
telecommunication systems and services. The Company desires to employ and retain
the unique experience, abilities and services of Employee as its Chief Financial
Officer.

                                    AGREEMENT

      The parties agree as follows:

1.    EMPLOYMENT

      1.1 Term. The Company agrees to employ Employee as its Chief Financial
Officer for a term commencing October 1, 1999 and expiring September 30, 2002
(the "Initial Term") unless terminated earlier in accordance with Section 6.
Further, upon expiration of the Initial Term, this Agreement shall automatically
renew for additional terms of one year each (each an "Extension Term") unless
either party provides the other with written notice of nonrenewal at least 180
days prior to the expiration of the Initial Term or an Extension Term.

      1.2 Duties. Employee accepts employment with the Company on the terms and
conditions set forth in this Agreement and agrees to devote full time and
attention (reasonable periods of illness excepted) to the performance of duties
under this Agreement. Employee shall act as the Chief Financial Officer of the
Company and shall be responsible for establishing and overseeing the financial
functions of the Company. Employee shall perform such specific duties and shall
exercise such specific authority as may be assigned to Employee from time to
time by the Chief Executive Officer of the Company. Employee further agrees that
in all aspects of such employment, Employee shall comply with the instructions,
policies and rules of the Company established from time to time and shall
perform Employee's duties faithfully, intelligently, to the best of Employee's
ability and in the best interests of the Company. The devotion of reasonable
periods of time by Employee for personal purposes, outside business activities
or charitable activities shall not be

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deemed a breach of this Agreement, provided that such purposes or activities do
not materially interfere with the services required to be rendered pursuant to
this Agreement.

2.    COMPENSATION

      2.1 Base Compensation. In consideration of all services to be rendered by
Employee to the Company, the Company shall pay to Employee base compensation of
$20,833.34 per month (less applicable withholding and other taxes) payable in
equal semi-monthly installments. The Board of Directors of the Company shall
review annually the compensation of Employee and such compensation may be
increased as determined in the sole discretion of the Board of Directors to take
into account the performance of Employee for the Company during the preceding
year.

      2.2 Bonus Compensation. Employee shall be eligible each calendar year to
receive a bonus in an amount up to 100% of annual base compensation, but only if
Employee is employed by the Company as of the end of such calendar year. The
bonus amount, if any, shall be determined by the Board of Directors of the
Company based on annual performance criteria, including without limitation,
satisfaction of specific operating objectives (which objectives shall apply to
both Employee and the Company), management and development of supervised
employees/consultants and completion of assigned duties. Within 60 days from the
date hereof specific performance criteria with respect to Employee and the
Company shall be developed with the input of the Company, the Company's
compensation consultant and Employee. Employee, at his option, shall have the
right to elect to receive any bonus payable to Employee in the form of cash, or
vested stock options which are the financial equivalent of such cash bonus, or a
combination of cash and such stock options. Employee shall notify the Company in
writing of the form of payment elected by Employee within ten (10) business days
after the Company notifies Employee of the determination to pay Employee the
bonus. Any cash bonus shall be paid and stock options issued within 120 days
after the end of the applicable calendar year.

      2.3 Stock Options

            2.3.1 Initial Grant. Employee shall be granted stock options (the
      "Initial Grant") to purchase 800,000 shares of common stock of the Company
      which shall represent not less than 2% of the shares of common stock of
      the Company outstanding prior to such issuance determined by excluding any
      shares of common stock issued or issuable with respect to (i) the Initial
      Grant and (ii) the private equity funding (described below) at an exercise
      price equal to 70% of the per share value used by the first independent
      entity to provide private equity funding to the Company in the currently
      anticipated sum of approximately $75 million to $150 million after the
      date of this Agreement. The Initial Grant shall vest as follows: one-third
      upon commencement of employment, two-ninths on September 30, 2000,
      two-ninths on September 30, 2001 and two-ninths on September 30, 2002;
      provided employee shall be employed by the Company on such dates. The
      Initial Grant shall be exercisable for a period of five years after the
      Initial Grant, subject to Section 6.3. The terms of the Initial Grant will
      be set forth in a separate Option Agreement, which shall include
      provisions, among others, relating to exercise of options, option exercise
      price, vesting provisions, investment representations, securities law
      provisions and antidilution provisions comparable

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      to antidilution provisions given to the current members of the Company
      (including, without limitation, antidilution adjustments regarding sale of
      shares at a price less than the Option Exercise price); provided, the
      Option Agreement shall be consistent with the provisions set forth in
      Sections 2.3 and 6 of this Agreement.

            2.3.2 Additional Grant. Employee shall be entitled to participate in
      a Company-wide employee stock option plan that is intended to be adopted
      by the Company for the benefit of the employees of the Company. Such stock
      options shall be on the same terms (although not necessarily in the same
      amounts) as the stock options granted to the other members of senior
      management of the Company.

            2.3.3 Change of Control. In the event there is a change of control
      ("Change of Control") during the term of this Agreement, including any
      Extension Period, all unvested stock options granted to Employee with
      respect to the Company, its successors or affiliates, shall vest
      immediately prior to the Change of Control. For purposes of this
      Agreement, a Change of Control means (i) the direct or indirect sale,
      exchange or other transfer of all or substantially all (60% or more) of
      the assets of the Company to any person or entity or group of persons or
      entities acting in concert (a "Group of Persons"), (ii) the merger,
      consolidation or other business combination of the Company with the effect
      that the members or shareholders of the Company, as the case may be,
      immediately following the merger, consolidation or other business
      combination, hold 50% or less of the combined voting power of the
      then-outstanding ownership interests or securities of the surviving entity
      of such merger, consolidation or other business combination, (iii) the
      replacement of three-fourths or more of the Board of Directors of the
      Company in any given 12-month period as compared to the directors at the
      beginning of such 12-month period, and such replacement(s) shall not have
      been approved by the Board of Directors of the Company, as applicable, as
      constituted at the beginning of such 12-month period, or (iv) a person or
      Group of Persons shall have become the beneficial owner of ownership
      interests or securities of the Company representing 60% or more of the
      combined voting power of the Company.

            2.3.4 Adjustments to Initial Grant. In the event of any change in
      capitalization, such as a stock dividend, stock split, recapitalization,
      merger, consolidation, split-up, combination or exchange of shares or
      other form of reorganization, proportionate adjustments as the Board of
      Directors deems appropriate to reflect such change will be made with
      respect to the aggregate number of shares in the Initial Grant and/or the
      exercise price per share (such Initial Grant premised on 40,000,000 shares
      of common stock being outstanding at the time of the Initial Grant).

      2.4 Other Benefits. The Company shall provide to Employee and Employee's
family the same type (but not necessarily in the same amounts) of health
insurance benefits, 401(k) plan and car allowance benefit plan (as appropriate)
that the Company provides to other senior management employees and their
families, subject to Employee's satisfaction of the respective eligibility
conditions for such benefits; such benefits shall be provided to Employee
pursuant to a comprehensive benefit plan to be adopted by the Company with the
advice of Employee.

Page 3 - EMPLOYMENT AGREEMENT
<PAGE>

      2.5 Vacation. Subject to the approval of time by the Chief Executive
Officer of the Company, Employee shall be entitled to one or more vacations
totaling the number of working days in each calendar year determined by the
Board of Directors of the Company to apply to members of senior management,
which number of working days shall be between 15 and 20. Any unused vacation
time shall be carried over to future years consistent with the Company's
standard vacation time policy.

3.    EXPENSES

      3.1 Agreement Expenses. Employee has been represented by counsel on the
subject of this transaction. The Company shall advance to Employee amounts
necessary to reimburse legal fees incurred by Employee in the negotiation and
preparation of this Agreement, which fees shall not exceed $7,000. Such amount
advanced to Employee by the Company shall be deducted from the monthly base
compensation of Employee in two equal deductions, commencing on October 1, 1999.

      3.2 Business Expenses. Employee shall be entitled to reimbursement from
the Company for reasonable expenses (including travel, lodging and meal
expenses related to business travel) necessarily incurred by Employee in the
performance of Employee's duties under this Agreement, upon presentation of
vouchers indicating in reasonable detail the amount and business purpose of each
such expense and upon compliance with other requirements of the Company's
expense reimbursement policy.

4.    FACILITIES AND LOCATION

      Employee shall be provided, at the headquarters of the Company, with a
private office and such other facilities, supplies and services as shall be
required for the performance of Employee's duties under this Agreement. Upon
commencement of employment, Employee shall be available at the headquarters of
the Company during the work week and shall relocate Employee's home to the
metropolitan area of the Company's headquarters not later than December 31,
2000. Until Employee relocates, the Company shall reimburse Employee for
reasonable travel and lodging expenses incurred by Employee.

      Employee shall be entitled to a relocation allowance at the time his
family is moved to Company headquarters pursuant to the Company's standard
relocation reimbursement policy. In the event the Company terminates the
Employee's employment hereunder without cause, the Company shall be responsible
for a relocation payment for moving the Employee's family from headquarters to
Dallas, Texas. Such payment shall similarly be in accordance with the Company's
relocation policy.

Page 4 - EMPLOYMENT AGREEMENT
<PAGE>

5.    COVENANT NOT TO COMPETE; CONFIDENTIALITY

      5.1 Covenants of Noncompetition and Nonsolicitation

            5.1.1 Covenants. Employee covenants and agrees that for the
      Restriction Period (defined in Section 5.1.4), employee shall not,
      directly or indirectly, without in each instance obtaining the prior
      written consent of the Company, which consent may be granted or withheld
      by the Company in its sole discretion:

                  (a) Engage, within any state in which the Company is then
            engaged, (i) in the business of providing fiber optic
            telecommunication systems or services or (ii) in any other business
            which may be in competition with the business conducted by the
            Company on the date of this Agreement or commenced at any time
            during the Restriction Period.

                  (b) For the benefit of Employee or any other person or
            enterprise (i) solicit any business whatsoever from any vendor or
            customer of the business conducted by the Company, (ii) induce or
            cause any vendor to cease providing or selling any service or
            product to the Company or to terminate or change such vendor's
            business relationship with the Company in any manner or (iii) induce
            or cause any customer to cease purchasing any product or service
            from the Company or to terminate or change such customer's
            relationship with the Company in any manner.

                  (c) For the benefit of Employee or any other person or
            enterprise (i) induce or solicit any person who is then employed by
            the Company, or has been employed by the Company at any time during
            the one-year period preceding such inducement or solicitation, to
            leave that person's employment or other position with the Company or
            to accept any other employment or position or (ii) otherwise assist
            any person or enterprise in hiring or otherwise engaging such
            person.

      For purposes of this Section 5.1.1, the term "Company" as referenced in
      subsections (a), (b) and (c), above, shall include the Company and any
      affiliate of the Company.

            5.1.2 Indirect Activities. Employee shall be deemed to be indirectly
      engaged in any activity covered by Section 5.1.1 if Employee (i) owns (as
      a proprietor, partner, member, stockholder or otherwise) an interest in,
      (ii) participates (as an officer, director, member, manager or in any
      other capacity) in the management, operation or control of or (iii)
      provides assistance, performs services or acts in the capacity of an
      employee, independent contractor, consultant or agent of any enterprise
      that is engaged, directly or indirectly, in such activity; provided,
      however, that Employee may own up to two percent (2%) of the outstanding
      shares or other equity securities of any enterprise that is a reporting
      company under the Securities Exchange Act of 1934, as amended. For
      purposes of this Agreement, the term "enterprise"

Page 5 - EMPLOYMENT AGREEMENT
<PAGE>

      shall include a sole proprietorship, partnership, limited liability
      company, corporation, trust, association, governmental entity or other
      form of entity or association.

            5.1.3 Reasonableness of Restrictions. Employee acknowledges and
      confirms that the covenants set forth in this Section 5.1: (i) do not
      impose unreasonable restrictions or work a hardship upon Employee, (ii)
      are essential to the willingness of the Company to employ Employee, (iii)
      are necessary and fundamental to the protection of the business conducted
      by the Company and any affiliate of the Company and (iv) are reasonable
      as to scope, duration and territory. Employee waives any and all defenses
      to the enforcement of the covenants set forth in this Section 5.1.

            5.1.4 Restriction Period. The covenants set forth in this Section
      5.1 shall be binding on Employee for the period (the "Restriction Period")
      commencing on the date of this Agreement and ending one year after the
      date Employee's employment with the Company terminated; provided, however,
      in the event Employee is terminated by the Company without Cause (as
      defined in Section 6.1(a)), the Restriction Period shall end on the date
      of termination without Cause.

      5.2 Confidentiality

            5.2.1 Confidentiality. Employee acknowledges and agrees that all
      trade secrets, information, lists of customers and vendors, product
      planning information, marketing research, marketing plans and strategies,
      pricing strategies, financial information, data of the Company or any
      affiliate of the Company or any other information proprietary to the
      Company or any affiliate of the Company ("Confidential Information") are
      valuable assets of the Company.

            5.2.2 Ownership. Employee acknowledges and agrees that all
      Confidential Information is and shall continue to be the exclusive
      property of the Company and its affiliates, whether or not conceived,
      discovered or developed, in whole or in part, by Employee and whether or
      not disclosed or entrusted to Employee in connection with Employee's
      employment by the Company.

            5.2.3 Acknowledgment of Receipt of Confidential Information.
      Employee acknowledges that in the course of performing employment services
      for the Company, Employee will have access to Confidential Information,
      the ownership and confidential status of which are highly important to the
      Company, and Employee agrees, in addition to the specific covenants
      contained in this Agreement, to comply with all policies and procedures of
      the Company for the protection of Confidential Information.

            5.2.4 Covenant of Nondisclosure. Except for disclosure of
      Confidential Information to other employees or consultants of the Company
      on a "need to know" basis in the course of performing employment services
      for the Company, Employee agrees not to disclose Confidential Information,
      directly or indirectly, under any circumstances or by any

Page 6 - EMPLOYMENT AGREEMENT
<PAGE>

      means, to any person or enterprise without the prior written consent of
      the Company, which consent may be granted or withheld by the company in
      its sole discretion.

            5.2.5 Covenant of Nonuse. Employee agrees not to copy, transmit,
      reproduce, summarize, quote or make any commercial or other use whatsoever
      of Confidential Information, except as may be necessary to perform the
      duties of employment for the Company.

            5.2.6 Return of Documents. Employee acknowledges and agrees that all
      originals and copies of records, reports, documents, lists, drawings,
      memoranda, notes and other documentation related to or containing any
      Confidential Information shall be the sole and exclusive property of the
      Company and its affiliates and shall be returned to the Company upon the
      termination of Employee's employment with the Company or upon the written
      request of the Company.

            5.2.7 Safeguard of Confidential Information. Employee agrees to
      exercise the highest degree of care in safeguarding Confidential
      Information against loss, theft or other inadvertent disclosure and agrees
      generally to take all steps necessary to ensure the maintenance of
      confidentiality.

      5.3 Remedy; Survival

            5 3.1 Injunction. Employee agrees that it would be difficult to
      measure damage to the Company from any breach by Employee of Section 5 and
      that monetary damages would be an inadequate remedy for any such breach.
      Accordingly, Employee agrees that if Employee shall breach Section 5, the
      Company shall be entitled, in addition to all other remedies it may have
      at law or in equity, to an injunction or other appropriate orders to
      restrain any such breach without showing or proving any actual damage
      sustained by the Company.

            5.3.2 No Release. Employee agrees that the termination of employment
      shall not release Employee from any obligations under Section 5.

6.    TERMINATION OF EMPLOYMENT

      6.1 Causes or Ground for Termination of Employment. The Company shall have
the right to terminate the employment of Employee at any time, without notice
and without payment of compensation in lieu of notice, under either of the
following conditions:

            (a) For cause ("Cause"), including, but not limited to, (i) any form
      of dishonesty, criminal conduct or conduct involving moral turpitude
      connected with the employment of Employee or which otherwise reflects
      adversely upon the Company's reputation or operations, (ii) the refusal of
      Employee to comply with the Company's written instructions, policies or
      rules as approved or mandated by the

Page 7 - EMPLOYMENT AGREEMENT
<PAGE>

      Board of Directors, (iii) continuing or repeated problems with Employee's
      performance or conduct or Employee's inattention to duties after Employee
      has been provided written notice and a reasonable opportunity to cure or
      (iv) any material breach of Employee's obligations under this Agreement
      after Employee has been provided written notice and a reasonable
      opportunity to cure; or

            (b) Employee has suffered a disability as a result of illness,
      accident or other cause and is unable to perform a substantial portion of
      Employee's usual duties or employment for a total (consecutive or
      cumulative) of 180 days in any 12-month period after the date the
      disability commenced.

      6.2 Death. This Agreement and Employee's employment with the Company shall
terminate automatically upon Employee's death. If death occurs within the first
12 months of commencement of employment with the Company, Employee's estate
shall forfeit 50% of the vested stock options received by Employee pursuant to
Sections 2.3.1 and 2.3.2 if death was not caused by or related to Employee's
employment, but if death occurs during the first 12 months because of or related
to Employee's employment or after such 12-month period, there shall be no
forfeiture of vested options.

      6.3 Effect of Termination

            6.3.1 In General. Upon the termination of employment, Employee (or
      Employee's estate in the event of Employee's death) shall receive
      Employee's base compensation prorated through the effective date of
      termination of employment and any other payments, including, but not
      limited to, earned vacation pay, to which Employee is entitled under the
      Company's policies. Any termination of employment shall automatically
      terminate Employee's right to any additional compensation, to unvested
      stock options or to other benefits paid by the Company except as provided
      in Section 6.3.2, 6.3.3 and 6.3.4.

            6.3.2 Termination upon Disability. In the event Employee's
      employment is terminated as a result of a disability as provided in
      Section 6.1(b):

                  (a) If disability occurs within the first 12 months of
            commencement of employment with the Company, Employee shall forfeit
            50% of the vested stock options received by Employee pursuant to
            Sections 2.3.1 and 2.3.2 if disability was not caused by or related
            to Employee's employment, but if disability occurs during the first
            12 months because of or related to Employee's employment or after
            such 12-month period, there shall be no forfeiture of vested
            options;

                  (b) The Company shall pay Employee compensation equal to six
            months of base compensation, but not to exceed base compensation
            payable for the remainder of the term of the Agreement.

Page 8 - EMPLOYMENT AGREEMENT
<PAGE>

            6.3.3 Termination by Company without Cause. In the event the
      employment of Employee is terminated by the Company for any reason other
      than for Cause, in addition to the compensation payable under Section
      6.3.1, Employee shall be entitled to the following:

                  (a) The Company shall pay Employee severance compensation in
            an amount equal to one year of the base compensation of Employee
            then in effect.

                  (b) Employee shall be entitled to retain all of Employee's
            vested stock options received pursuant to Sections 2.3.1 and 2.3.2.

                  (c) With respect to the unvested options of Employee
            received pursuant to Sections 2.3.1 and 2.3.2, (i) if termination
            occurs within the first 12 months of the commencement of employment
            with the Company, 50% of the unvested options of Employee shall vest
            upon the date of termination of employment and (ii) if termination
            occurs on or after the first 12 months of the commencement of
            employment with the Company, 100% of the unvested options of
            Employee shall vest upon the date of termination of employment.

            6.3.4 Termination by Employee. In the event the employment of
      Employee is terminated by Employee for any reason during the Initial Term,
      Employee shall receive the compensation payable under Section 6.3.1.
      Employee shall forfeit 50% of the vested stock options received by
      Employee pursuant to Sections 2.3.1 and 2.3.2.

7.    REPRESENTATIONS AND WARRANTIES OF EMPLOYEE

      Employee represents and warrants to the Company that there is no
employment contract or any other contractual obligation to which Employee is
subject which prevents Employee from entering into this Agreement or from
performing fully Employee's duties under this Agreement.

8.    MISCELLANEOUS PROVISIONS

      8.1 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

      8.2 Attorney Fees. If any suit or action is filed by any party to enforce
this Agreement or otherwise with respect to the subject matter of this
Agreement, each party shall be responsible to pay the attorney fees and costs
incurred by such party in preparation or in prosecution or defense of such suit
or action and the court or adjudicator is not authorized to allocate attorney
fees and costs between the parties or to one party.

      8.3 Notices. Any notice or other communication required or permitted to be
given under this Agreement shall be in writing and shall be sent by facsimile
(with confirmation report) or mailed by certified mail, return receipt
requested, postage prepaid, to the parties at the following facsimile numbers or
addresses:

Page 9 - EMPLOYMENT AGREEMENT
<PAGE>

            If to the Company, to:

            PF. Net Holdings, Limited
            1625 B Street
            Washougal, WA 98671
            Fax: 360-835-4700

            If to Employee, to:

            David L. Taylor
            5508 Ash Creek Lane
            Plano, Texas 75093
            Fax: 972-867-5564

Any notice or other communication shall be deemed to be given (a) on the date of
confirmed delivery by facsimile or (b) at the expiration of the third day after
the date of deposit in the United States mail. The facsimile numbers or
addresses to which notices or other communications shall be given may be changed
from time to time by giving written notice to the other party as provided in
this Section 8.3.

      8.4 Severability. If any provision of this Agreement shall be invalid or
unenforceable in any respect for any reason, the validity and enforceability of
any such provision in any other respect and of the remaining provisions of this
Agreement shall not be in any way impaired. Section 5.1.1 shall be construed as
a separate agreement covering each state or political subdivision in which
Employer has conducted or contemplates conducting its business. If the
geographical scope set forth in Section 5.1.1 shall be determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, the applicable
geographic scope shall be modified to such geographic scope as such court may
determine to be reasonable and proper under all existing circumstances and
conditions. If any provision of Section 5.1.1 is invalid, illegal or
unenforceable in any respect, the remaining provisions shall nevertheless be
given full effect and shall be construed as if such invalid, illegal or
unenforceable provisions or parts thereof, had never been contained in this
Agreement. If any time limitation contained in Section 5.1.4 is declared
invalid, illegal or unenforceable by any court of competent jurisdiction, then
the restriction governed by that time limitation shall be applicable for such
period of time as such court may determine to be reasonable and proper under all
existing circumstances and conditions.

      8.5 Entire Agreement. This Agreement sets forth the entire understanding
of the parties with respect to the subject matter of this Agreement and
supersedes any and all prior understandings and agreements, whether written or
oral, between the parties with respect to such subject matter.

      8.6 Waiver. A provision of this Agreement may be waived only by a written
instrument executed by the party waiving compliance. No waiver of any provision
of this Agreement shall constitute a waiver of any other provision, whether or
not similar, nor shall any waiver constitute a

Page 10 - EMPLOYMENT AGREEMENT
<PAGE>

continuing waiver. A failure to enforce any provision of this Agreement shall
not operate as a waiver of such provision or any other provision.

      8.7 Counterparts. This Agreement may be executed by the parties in
separate counterparts, each of which when executed and delivered shall be an
original, but all of which together shall constitute one and the same agreement.

COMPANY:                             PF.NET HOLDINGS, LIMITED

                                     By:    /s/ [Illegible]
                                            -----------------------------------

                                     Title: [Illegible]
                                            -----------------------------------

EMPLOYEE:                            DAVID L. TAYLOR

                                     /s/ David L. Taylor
                                     ------------------------------------------
                                     David L. Taylor

Page 11 - EMPLOYMENT AGREEMENT

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