Document:

PROTEL, INC.

                          EXCLUSIVE RESELLER AGREEMENT

         This Agreement dated this 24th day of July, 2001 is entered into
between PROTEL, INC. (hereinafter referred to as PROTEL), a Florida Corporation,
having its principal place of business at 4150 Kidron Road, Lakeland, Florida
33811, and PHONE1 Inc. (hereinafter referrred to as PHONE1), a wholly owned
subsidiary of Globatron Corporation, a Florida Corporation, having its principal
place of business at 100 North Biscayne Blvd., 25th Floor, Miami, Florida 33132.

                                    RECITALS

         WHEREAS, PROTEL is engaged in the design, development, manufacture,
assembly and sale of public telephone equipment, including: intelligent
electronic assemblies, electronic chassis, payphone housings, payphone related
hardware accessories, special parts and replacement parts, software, firmware
and programming for such telephones; and

         WHEREAS, PHONE1 is engaged in providing end-user direct dialed coin
international long distance calls from public telephones, hereinafter referred
to as SERVICES; and

         Whereas, the parties desire to enter into an exclusive relationship for
PHONE1's purchase, use, and distribution of CUSTOM PRODUCT in connection with
SERVICES;

         NOW THEREFORE, in consideration of the mutual covenants contained
herein, the parties agree as follows:

                            SECTION I. - DEFINITIONS

         CUSTOM PRODUCT - For the purposes of this Agreement, CUSTOM PRODUCT is
an EPROM and/or a proprietary electronic device that incorporates the use of
flash memory, hereinafter referred to as a FLASH KEY, that allows firmware to be
downloaded to a PROTEL electronic chassis. The EPROM contains CUSTOM FIRMWARE
that functions as defined in Section III (FUNCTIONS OF CUSTOM PRODUCT) of this
Agreement. The FLASH KEY, when installed on a PROTEL intelligent electronic
telephone chassis, will allow the CUSTOM FIRMWARE to be downloaded from a
download file via PROTEL's management systems to the intelligent chassis. Both
the EPROM and FLASH KEY require CUSTOM SOFTWARE in PROTEL's management systems
to operate to the CUSTOM PRODUCT's specifications.

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PROTEL, INC.

         FIRMWARE - The programs, data routines, and the like, embodied in
hardware that are accessible for loading via an EPROM or download file activated
by a FLASH KEY.

         SOFTWARE - The programs, data routines, and the like, that guide the
functioning of a processor, including Object Code and Source Code.

         INVENTORY - For the purpose as stated in Subsection C. of SECTION IV
(DEFINITION OF EXCLUSIVITY), INVENTORY shall mean the combined total count of:
CUSTOM PRODUCT, including EPROMs to which CUSTOM SOFTWARE and/or CUSTOM FIRMWARE
will be loaded;; and FLASH KEYS, that are: physically stored at PHONE1 for
resale; at PROTEL awaiting shipment to PHONE1; and in transit to PROTEL from the
manufacturer of the EPROM or FLASH KEYS specifically purchased by PROTEL for
PHONE1 from its third party manufacturer.

         ANSWER DETECTION - A method of determining when a called telephone line
answers.

         LOOP REVERSAL - A method of detecting by an originating telephone that
a called telephone has gone off-hook. Line voltage in the backward direction is
reversed (also referred to as reverse battery supervision).

         COMPETITOR - A competitor of PROTEL is defined as any company or
individual engaged in the sale , design, development, manufacturer, and assembly
of intelligent electronic assemblies, including software and firmware, for use
in public payphone equipment; and/or any company or individual engaged in the
sale, design, development, manufacturer, and assembly of payphone housings,
payphone related hardware, special payphone components and replacement parts
that have a material effect on the sales and profitability of PROTEL.

         MARKET - Those companies collectively in the MARKET which can be
categorized as being in a particular group as designated by RBOC, ITOC, IPP,
CLEC IXC, EQUIPMENT SUPPLIER, GOVERNMENT AGENCY (hereinafter referred to as
MARKET SEGMENT).

         RBOC or REGIONAL BELL OPERATING COMPANIES - Those companies that
include the Regional Bell Operating Companies and any successor companies
including any

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PROTEL, INC.

subsidiaries, affiliates and spin-off derivatives that are formed as a result of
implementation of the 1996 Telecommunications Act or any other federal or state
regulation (hereinafter referred to as RBOC).

         ITOC or INDEPENDENT TELEPHONE OPERATING COMPANIES - Those companies and
any successor companies that are franchised telephone operating companies,
excluding RBOC, that provide local telephone services including any
subsidiaries, affiliates and spin-off derivatives that are formed as a result of
implementation of the 1996 Telecommunications Act or any other federal or state
regulation (hereinafter referred to as ITOC).

         IPP or INDEPENDENT PAYPHONE PROVIDER - Those companies that own,
operate or manage payphone equipment intended for public use and do not
specifically fall into the categories of RBOC, ITOC, IXC, LEC or GOVERNMENT
AGENCY (hereinafter referred to as IPP).

         LEC or LOCAL EXCHANGE COMPANY - Those companies, excluding RBOC and
ITOC, who have obtained operating authority to provide local telephone service
(hereinafter referred to as LEC).

         EQUIPMENT SUPPLIER - Those companies that provide pay telephone
equipment to those companies that provide pay telephone services (hereinafter
referred to as EQUIPMENT SUPPLIER). Non-exclusive examples of an EQUIPMENT
SUPPLIERS is a manufacturer, refurbisher, distributor, dealer, or value-added
reseller VAR).

         IXC or INTEREXCHANGE CARRIER - Those companies whose primary business
is the provision of Inter-exchange Telephone Service (hereinafter referred to as
IXC).

                              SECTION II. - SCOPE

         A. Subject to the terms and conditions set forth in this Agreement,
PROTEL appoints PHONE1 as an EXCLUSIVE RESELLER for the solicitation of orders
and the sale and distribution of CUSTOM PRODUCT to the MARKET SEGMENTS specified
in EXHIBIT D of this Agreement in: (1) the United States; (2) Canada; and (3)
any other geography mutually agreed upon in writing by both parties as an
amendment made part of this Agreement (hereinafter collectively referred to as
TERRITORY). It is understood that PHONE1 may purchase the CUSTOM PRODUCT for its
own use.

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PROTEL, INC

         B. Subject to the terms and conditions set forth in this Agreement,
PROTEL grants an exclusive license to PHONE1 to use PROTEL's proprietary ANSWER
DETECTION (utilizing a single and/or dual tone, with or without LOOP DETECTION)
that is specific to the CUSTOM PRODUCT for use only with a PROTEL electronic
chassis.

         C. PHONE1 agrees to pay PROTEL a total of ten thousand dollars
($10,000) for appointment as an exclusive reseller of CUSTOM PRODUCT.

         D. PROTEL grants to PHONE1 the right to display in the conduct of its
duties, and only during the duration of this Agreement, the various trademarks,
service marks and other word and design marks that PROTEL uses in connection
with CUSTOM PRODUCT.

         E. With the consent of PHONE1, PROTEL may conduct sales activities to
PHONE1 customers for PROTEL telephone equipment that incorporates CUSTOM PRODUCT
in the MARKET SEGMENTS and TERRITORY. Sales for telephone equipment that
incorporates CUSTOM PRODUCT shall not be conducted to manufacturers,
refurbishers, dealers, distributors, and value added resellers (VAR),
hereinafter referred to as EQUIPMENT SUPPLIER.

         F. PROTEL may, at its discretion, conduct sales activity and sell any
PROTEL products on a direct basis for its own accounts in all MARKET SEGMENTS
and TERRITORIES not incorporating the CUSTOM PRODUCT without any obligation to
PHONE1.

         G. All rights related to the sales and marketing of PROTEL product not
specifically granted PHONE1 under the terms of this Agreement are the exclusive
rights of PROTEL.

                   SECTION III. - FUNCTIONS OF CUSTOM PRODUCT

         A. PROTEL agrees to provide CUSTOM PRODUCT to PHONE1 that activates
CUSTOM FIRMWARE and/or CUSTOM SOFTWARE written to the specifications of PHONE1
that specifically provides for the following:

         1. CUSTOM PRODUCT shall allow SERVICES from public payphones that
provide for rating calls to a minimum of one-hundred and sixty-eight (168)
countries with a maximum of three specific city codes per country and a maximum
of two different variable called party types.

         2. CUSTOM PRODUCT shall function in PROTEL's 2000, 6000, 7000, 9000,
4000 and 8000 Series. PROTEL will evaluate whether PROTEL's 310 Series has the
capability to incorporate:

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PROTEL, INC.

(1) the CUSTOM PRODUCT's FIRMWARE and /or SOFTWARE as described in Subsections
A.1 and A.3 of this Section; (2) PROTEL's electronic chassis: and/or (3)
telephones designed to operate from EPROM or FLASH memory devices to determine
functionality of CUSTOM PRODUCT in PROTEL's 310 Series. Future PROTEL
intelligent electronic chassis products designed to replace or obsolete PROTEL's
2000, 6000, 7000, 9000, 4000, 8000 and 310 Series products shall provide the
capability to incorporate the CUSTOM PRODUCT.

         3. CUSTOM PRODUCT shall function as described in Subsections A.1 and
A.2 of this Section for direct dialed calls originating from payphones located
within a country in the TERRITORY to a destination outside of the country.

         B. PHONE1 agrees and acknowledges that PROTEL has exclusive rights to a
proprietary method of ANSWER DETECTION that PROTEL incorporates into PROTEL
telephone equipment, including PROTEL product used with CUSTOM PRODUCT. The
proprietary method of ANSWER DETECTION includes in some (but not limited to)
applications utilizing single and/or dual tones, with or without the presence of
LOOP REVERSAL, between the range of 250 Hertz and 2,600 Hertz.

                    SECTION IV. - DEFINITIONS OF EXCLUSIVITY

         A. PHONE1 is granted exclusive rights to use PROTEL's proprietary
ANSWER DETECTION only as it applies to CUSTOM PRODUCT.

         B. PHONE1 is granted exclusive rights to sell, distribute, and market
the CUSTOM PRODUCT to MARKET SEGMENTS identified in EXHIBIT D. If an opportunity
arises with an RBOC or LEC, PHONE1 shall involve PROTEL in the marketing efforts
to distribute the CUSTOM PRODUCT to such potential customers.

         C. PHONE1 is granted a non-exclusive licensee to use PROTEL's
ExpressNet () and/or Panorama() payphone management systems solely in connection
with the sale and distribution of CUSTOM PRODUCT.

         D. If PHONE1 fails to maintain a minimum INVENTORY of five-thousand
(5,000) CUSTOM PRODUCTS, PROTEL retains the right to sell CUSTOM PRODUCT
directly to MARKET SEGMENTS identified in EXHIBIT D without further agreement of
PHONE1.

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PROTEL, INC.

                    SECTION V. - RELATIONSHIP OF THE PARTIES

         The relationship between PROTEL and PHONE1 shall be solely that of an
independent contractor. PHONE 1 shall in no way act as, or represent that it has
the authority to act as, an agent or legal representative of PROTEL for any
purpose whatsoever. Neither shall PROTEL act as, or represent that it has the
authority to act as, an agent or legal representative of HONE1 for any purpose
whatsoever.

                               SECTION VI. - TERM

         Except as provided in Section XX (TERMINATION), this Agreement shall
continue in force and govern all relations and transactions between the parties
for a period of ten (10) years commencing on 7/24/01. Thereafter, this Agreement
shall, upon each of the Parties giving the other party written notice of intent
to renew within six (6) months of the end of the ten (10) year period, be
renewed for an additional period of time as mutually agreed upon by both Parties
on the same terms and conditions. Absent such agreement to renew, this Agreement
will expire.

                     SECTION VII. - OBLIGATIONS OF RESELLER

         A. PHONE1 agrees to promise PROTEL telephone equipment and to encourage
and develop sales for PROTEL equipment, but is not obligated to do so.

         B. PHONE1 agrees at all times to perform in accordance with all PROTEL
payment terms.

         C. PHONE1 agrees not to pursue or solicit the sale of CUSTOM PRODUCT to
any account outside of the PHONE1's assigned TERRITORY, without prior written
consent of PROTEL.

         D. PHONE1 agrees not to pursue or solicit the sale of CUSTOM PRODUCT
outside of the MARKET SEGMENTS without prior written consent of PROTEL.

         E. PHONE1 agrees to follow guidelines described in EXHIBIT E for any
advertising copy, technical support materials or other media displaying CUSTOM
PRODUCT, PROTEL trade names, or PROTEL trademarks.

         F. PHONE1 agrees not to commit PROTEL to engineering design changes
without prior approval in writing from PROTEL.

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         G. PHONE1 agrees to notify PROTEL if any portion of the company is
acquired or is now held by a COMPETITOR of PROTEL. PHONE1 shall have no duty to
notify PROTEL of any transfers of ownership to any person(s) who is/are an
officer, director, or employee of the company except as that officer, director
or employee is an officer, director or employee of a COMPETITOR of PROTEL.

         H. PHONE1 agrees that PROTEL retains title to all proprietary rights
for the CUSTOM PRODUCT, including all copyrights, and PROTEL acknowledges that
PROTEL owns the intellectual property rights incorporation in the CUSTOM PRODUCT
free and clear of any third parties, or has a license to use intellectual
property rights incorporated in the CUSTOM PRODUCT.

         I. PHONE1 agrees not to copy, duplicate or otherwise reproduce the
CUSTOM FIRMWARE and/or CUSTOM SOFTWARE contained in the CUSTOM PRODUCT.

         J. PHONE1 will not make any modifications to or create any derivatives
of the CUSTOM FIRMWARE and/or CUSTOM SOFTWARE contained in the CUSTOM PRODUCT.

         K. PHONE1 will submit a Purchase Order to PROTEL for an initial
quantity of twenty-thousand (20,000) CUSTOM PRODUCTS and furthermore agrees to
maintain a minimum combined total INVENTORY of five thousand (5,000) CUSTOM
PRODUCTS. Thereafter, PHONE1 agrees that the minimum order for CUSTOM PRODUCTS
on all future orders will be for five-thousand (5,000) CUSTOM PRODUCTS.

         L. PHONE1 agrees to make a reasonable effort to prevent fraudulent use
of the CUSTOM PRODUCT by having in place a process to verify that an authorized
CUSTOM PRODUCT (with installed CUSTOM FIRMWARE and/or CUSTOM SOFTWARE) was
supplied to a customer under contract with PHONE1 for SERVICES with an assigned
Answer Number Identification (ANI) and Personal Identification Number (PIN) in
PHONE1's database created for this business opportunity.

         M. PHONE1 agrees to immediately advise PROTEL of any unauthorized
copying of the CUSTOM PRODUCT that comes to PHONE1's attention.

         N. PHONE1 agrees to provide acceptance in writing to PROTEL of the
FIRMWARE and/or SOFTWARE incorporated in the CUSTOM PRODUCT prior to the
shipment of CUSTOM PRODUCT. PROTEL will not be responsible for any delays in
shipping CUSTOM PRODUCT caused by PHONE1's failure to advise PROTEL of their
acceptance.

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                     SECTION VIII. - OBLIGATIONS OF PROTEL

         A. PROTEL agrees to sell CUSTOM PRODUCT to PHONE1 at prices, terms and
conditions as provided for in this Agreement.

         B. PROTEL agrees to promote CUSTOM PRODUCT and its affiliation with
PHONE1 with the prior written consent of PHONE1. Such consent shall not be
unreasonably withheld and any specific reason for withholding such consent shall
be provided in writing by PHONE1.

         C. PROTEL agrees to promote SERVICES of PHONE1 with the prior written
consent of PHONE1. Such consent shall not be unreasonably withheld and any
specific reason for withholding such consent shall be provided in writing by
PHONE1.

         D. PROTEL agrees to provide technical assistance during normal PROTEL
business hours by telephone to companies purchasing CUSTOM PRODUCT from PHONE1
in accordance with the pricing, terms and conditions stated in EXHIBIT H of this
Agreement.

         E. PROTEL agrees to promptly advise PHONE1 of any unauthorized copying
of the CUSTOM PRODUCT that comes to PROTEL's attention.

         F. PROTEL shall immediately notify PHONE1 of PROTEL's (i) commencing
any voluntary case, proceeding or other action under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an
order for relief entered with respect to PROTEL, or seeking to adjudicate PROTEL
a bankrupt or insolvent, or seeking adjustment, liquidation, dissolution
composition or other relief with respect to PROTEL or PROTEL's debt's, or (ii)
there shall be commenced against PROTEL any involuntary case, proceeding or
other action of a nature referred to in clause (i).

                   SECTION IX. - TERMS AND CONDITIONS OF SALE

         A. Subject to Subsection C. of this Section, the purchase price paid by
PHONE1 shall be the price as stated in EXHIBIT A (CUSTOM PRODUCT PRICING).

         B. Purchase orders which in any way conflict with the terms and
conditions of this Agreement will be rejected by PROTEL unless accepted in
writing. Revisions of purchase orders will be rejected by PROTEL unless accepted
in writing.

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         C. PROTEL may change any price list at any time provided however:

                  (1) PROTEL will give notice of any price increase for CUSTOM
                  PRODUCT subject to Subsection A. of this Section at least
                  sixty (60) days prior to the effective date of the increase.
                  PHONE1 has the right to place orders for CUSTOM PRODUCT from
                  the date of announcement to the effective date of the increase
                  provided the quantity of the CUSTOM PRODUCT ordered is
                  consistent with prior orders plced by PHONE1 over the
                  preceding six (6) months. Prices for orders on hand at the
                  time of a price increase announcement will be honored provided
                  the scheduled shipping date is not more than ninety (90) days
                  beyond the date of announcement;

                  (2) PROTEL is limited to one increase in price for CUSTOM
                  PRODUCT for each twelve (12) month period following the
                  effective date of this Agreement, however, additional
                  increases in price for CUSTOM PRODUCT may be submitted to
                  PHONE1 provided the increases are a direct result of increased
                  raw material and/or manufacturing costs, which shall be
                  properly documented, and

                  (3) any increases in the price for CUSTOM PRODUCT equal to or
                  greater than ten (10) percent from the current price must be a
                  direct result of increased raw material and/or manufacturing
                  costs, which shall be propertly documented.

         D. All CUSTOM PRODUCT shall be shipped F.O.B. point of shipment unless
specifically agreed to in writing by PROTEL, and title and risk of loss shall
pass to PHONE1 upon receipt by carrier at F.O.B. point. PHONE1 shall pay all
freight and insurance charges and any applicable sales, use or similar tax. If
any such charges or taxes are not included with the invoice, they will be
subsequently billed to the PHONE1 who agrees to pay such additional charges upon
receipt of invoice.

         E. Terms of payment are Net thirty (30) days (herein defined as the
PAYMENT PERIOD) on any open account credit limits established by PROTEL from the
date of shipment of CUSTOM PRODUCT by PROTEL, unless otherwise specified by
PROTEL in writing. In the event payment is not received within the PAYMENT
PERIOD, any unpaid balance shall commence to bear interest at the rate of
Fifteen Percent (15%) per annum, accrued monthly, from the thirty-first day
(31st) day after date of shipment of CUSTOM PRODUCT.

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         F. All delivery indications, including but not limited to confirmed
shipping dates, are estimated. PROTEL shall not be liable for any costs or
losses incurred by PHONE1 as a result of PROTEL's inability to deliver CUSTOM
PRODUCT in accordance with confirmed delivery dates. PROTEL shall not be liable
for the cost of premium transportation as a result of PROTEL's inability to
deliver CUSTOM PRODUCT in accordance with confirmed delivery dates.

         G. PROTEL reserves the right to allocate raw materials and production
of any CUSTOM PRODUCT if such allocation becomes necessary in its judgment.

         H. PHONE1, at any time prior to shipment of the CUSTOM PRODUCT may
cancel an order by giving notice in writing to PROTEL. PROTEL shall use its best
efforts to re-deploy and/or return CUSTOM PRODUCT to the vendor including raw
materials in the best commercial interests of PHONE1. PHONE1 will be liable for
those raw materials and CUSTOM PRODUCT that PROTEL is unable to re-deploy or
return for credit. The cost to PHONE1 of such cancellation shall be the cost of
raw materials, overhead, and loss of profits to date of cancellation and costs
of liquidation.

                     SECTION X. - SOFTWARE PRODUCT LICENSE

         It is expressly agreed and understood by PHONE1 that all PROTEL
supplied software and firmware is subject to the provisions of the PROTEL
Nonexclusive Computer and Products License Agreement, a copy of which is
attached hereto as EXHIBIT G, and made a part hereof for all purposes.

                     SECTION XI. - CONFIDENTIAL INFORMATION

         It is expressly agreed and understood by the parties that in order for
them to properly carry out their obligations and duties contained in this
Agreement it may become necessary during the term of this Agreement for the
parties to disclose to each other certain technology and other information
relating to their respective businesses which is of a confidential nature.
Consequently, the parties acknowledge the confidential nature of the technical
knowledge and business information they may receive from each each other and
agree, to the extent that such information constitutes a trade secret under the
Uniform Trade Secrets Act, not to disclose any of such technology or business
information to unauthorized parties and to take all necessary and appropriate
steps to insure that the confidentiality of said technology and business
information will be maintained. Confidential information disclosed among the
parties in writing shall be clearly marked by the parties as being
"confidential". Confidential information disclosed verbally by the parties will
be confirmed in writing by the disclosing party within thirty (30) days of
disclosure. Except as is necessary to carry out the terms and obligations of
this Agreement or to comply with an order of a court, the parties, and their
employees will not, during or after the term of this Agreement, directly or
indirectly divulge to anyone other than the disclosing party, and shall not,
except as authorized by the disclosing party in writing, make use of any
information or knowledge relating in any manner to the technology or to the
disclosing party's business, which information or knowledge the receiving party
and its employees shall have obtained during the terms of this Agreement and
which is of a secret or confidential nature. In the event that either party is
required to produce confidential information by order of a court, the party
shall give prompt notice to the other party to provide the other party with an
opportunity to the oppose the order. Upon termination of this Agreement, the
parties agree that all firmware, software, documents, records or other
repositories of any nature containing information regarding the
confidential technology or other matters relating to the other party's business
then in its possession will be returned to the other party. In the event of a
breach or threatened breach by the receiving party, its employees, agents,
independent contractors, representatives, successors or assigns of this
provision, the disclosing party shall be entitled, in addition to all other
rights or remedies, to injunctive relief restraining such breach, without being
required to show any actual damage or to post any bond or other security, and/or
to a decree for specific performance of this provision.

                           SECTION XII. - WARRANTIES

         PROTEL warrants that its CUSTOM PRODUCT sold hereunder will, at time of
shipment, and for the duration specified in EXHIBIT F, be free from defects in
materials and workmanship and will confirm in all material respects to PROTEL's
applicable specifications. PROTEL's obligation under this warranty is limited to
the repair or replacement, at PROTEL's option, of non-conforming CUSTOM PRODUCT.
PROTEL's obligation under this warranty will not apply to CUSTOM PRODUCT damage,
failure or non-conformance arising from unauthorized modifications or repair,
improper installation, use, maintenance and negligence. CUSTOM PRODUCT may be
returned only after PHONE1 obtains an authorization number (CRN) and prepays all
freight and insurance charges to return such CUSTOM PRODUCT to PROTEL's
designated repair facility. Returned CUSTOM PRODUCT must be packaged to insure
safe shipment. PROTEL will deliver replacements for defective and non-conforming
CUSTOM PRODUCT to PHONE1 at the destination provided for in the original
purchase order. CUSTOM PRODUCT returned to PROTEL under this warranty shall
become the property of PROTEL.

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         THE FOREGOING WARRANTIES ARE IN LIEU OF AL OTHER WARRANTIES, WHETHER
ORAL, WRITTEN, EXPRESSED, IMPLIED OR STATUTORY. IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE SHALL NOT APPLY. PROTEL'S
WARRANTY OBLIGATIONS AND PHONE1'S REMEDIES HEREUNDER ARE SOLELY AND EXCLUSIVELY
AS STATED HEREIN.

         No representation or warranty, expres or implied, made by PROTEL, sales
agent or other agent or representative of PROTEL which is not specifically set
forth herein shall be binding upon PROTEL. PROTEL SHALL NOT BE LIABLE FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES OF ANY KIND DIRECTLY OR
INDIRECTLY ARISING FROM THE SALE, INSTALLATION, MANUFACTURE OR USE OF THE
PRODUCT OR FROM ANY OTHER CAUSE.

                        SECTION XIII. - PATENT INDEMNITY

         Original firmware is defined as firmware embodied in the EPROM and/or
FLASH KEY of the CUSTOM PRODUCT prior to addition of code in the firmware
necessary to effect PHONE1'w specification for the CUSTOM PRODUCT purchased from
PROTEL.

         In the event of a claim against PHONE1 where charges that the original
firmware infringes a United States' patent subsisting when the CUSTOM PRODUCT
was shipped, PROTEL shall, at its sole option, procure for PHONE1 the right to
use the original firmware; or replace the CUSTOM PRODUCT with non-infringing
original firmware; or modify the CUSTOM PRODUCT's original firmware to be
non-infringing; or remove the CUSTOM PRODUCT and refund the purchase price, less
depreciation, at the rate of fifteen percent (15%) per year.

         PROTEL shall defend at its own expense, all suits instituted against
PHONE1 insofar as same are based upon any claim that PHONE1's operation of the
original firmware included in the CUSTOM PRODUCT, or any part thereof, is an
infringement of a United States' patent under the proviso that: (a) PROTEL be
notified in writing, by PHONE1 promptly upon assertion of claim; (b) PROTEL is
given the authority by PHONE1 to assume full and exclusive control of the
defense and settlement of the claim or suit; and (c) PHONE1 provides all
information and assistance to PROTEL, at PHONE1's expense, as is reasonably
necessary for the defense of the claim or suit.

         THE FOREGOING STATES PROTEL'S ENTIRE LIABILITY FOR CLAIMS OF PATENT
INFRINGEMENT. PROTEL shall have no liability whatsoever if the claim of

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infringement arises out of PROTEL's compliance with PHONE1's specifications.
PROTEL shall have no liability whatsoever if a claim of infringement is based
upon PHONE1's use of the CUSTOM PRODUCT as part of a patented combination where
the other elements of the combination are not supplied by PROTEL, or in the
practice of a patented process not encompassed in PROTEL supplied CUSTOM
PRODUCT.

                     SECTION XIV. - LIMITATIONS OF REMEDIES

         A. PROTEL'S LIABILITY FOR DAMAGES TO PHONE1 FOR ANY CAUSE WHATSOEVER,
AND REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT OR IN TORT, INCLUDING
NEGLIGENCE, SHALL BE LIMITED TO THE AMOUNT (INCLUDING PURCHASE PRICE, TAXES,
INSURANCE, FREIGHT AND OTHER COSTS) ACTUALLY PAID BY PHONE1 TO PROTEL IN
CONNECTION WITH THE PURCHASE OF PRODUCT BY PHONE1 WHICH WAS FAULTY OR DEFECTIVE.

         B. IN NO EVENT WILL PROTEL BE LIABLE FOR ANY DAMAGES CAUSED BY PHONE1'S
FAILURE TO PERFORM PHONE1'S RESPONSIBILITIES, OR FOR ANY LOST PROFITS OR SAVINGS
OR OTHER CONSEQUENTIAL DAMAGES, REGARDLESS OF THE FORM OF ACTION, WHETHER IN
CONTRACT OR IN TORT INCLUDING NEGLIGENCE, EVEN IF PROTEL HAS BEEN ADVISED OF THE
POSSIBILITIES OF SUCH DAMAGES, OR FOR ANY CLAIM AGAINST PHONE1 BY ANY OTHER
PARTY. NOR WILL PROTEL BE LIABLE FOR ANY LOSS OF FUNDS CONTAINED IN, DISPENSED
BY OR ASSOCIATED WITH ANY PRODUCT.

         C. IN NO EVENT WILL PHONE1 BE LIABLE FOR ANY DAMAGES CAUSED BY PROTEL'S
FAILURE TO PERFORM PROTEL'S RESPONSIBILITIES, OR FOR ANY LOST PROFITS OR SAVINGS
OR OTHER CONSEQUENTIAL DAMAGES, REGARDLESS OF THE FORM OF ACTION, WHETHER IN
CONTRACT OR IN TORT INCLUDING NEGLIGENCE, EVEN IF PROTEL HAS BEEN ADVISED OF THE
POSSIBILITIES OF SUCH DAMAGES, OR FOR ANY CLAIM AGAINST PROTEL BY ANY OTHER
PARTY, NOR WILL PHONE1 BE LIABLE FOR ANY LOSS OF FUNDS CONTAINED IN, DISPENSED
BY OR ASSOCIATED WITH ANY PRODUCT.

         D. PHONE1 SHALL HAVE NO ACTUAL OR IMPLIED AUTHORITY TO BIND PROTEL IN
ANY TRANSACTION, UNLESS PREVIOUSLY APPROVED IN WRITING BY AN AUTHORIZED OFFICER
OF PROTEL.

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<PAGE>

                             SECTION XV. - NOTICES

         Any notice that may be required under this Agreement shall be either in
writing or telegraphic. Any written notice shall be sent by fax, FedEx,
registered mail, or certified mail, postage prepaid, return receipt requested.
Telegraphic notices must be followed within three (3) days by written notice of
an authorized agent. All such notices are considered given when such notices are
properly addressed and received.

For PHONE1:                          /s/ DARIO ECHEVERRY
                                     --------------------
                                         DARIO ECHEVERRY
                                         C-E-O

                                     CC:

                                     --------------------

                                     --------------------

For PROTEL                           PROTEL, INC.
                                     4150 Kidron Road
                                     Lakeland, Florida 33811
                                     Attention: PRESIDENT

                                     CC: Corporate Counsel
                                     PROTEL, INC.
                                     10 Indel Avenue / P.O. Box 157
                                     Rancocas, New Jersey 08073-0157

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<PAGE>

                            SECTION XVI. - INSURANCE

         PHONE1 at its sole cost and expense, shall maintain required Worker's
Compensation coverage and no less than $500,000 in personal injury liability and
$1,000,000 property damage insurance upon vehicles used in PHONE1. In addition,
PHONE1 shall purchase and maintain during the term of this Agreement
comprehensive general liability insurance, including product liability and
completed operations coverage, with minimum combined single limit of $1,000,000
and naming PROTEL as additional insured. PHONE1 shall provide certificate of
insurance to PROTEL evidencing such coverage.

                           SECTION XVII. - LIABILITY

         A. The parties hereby agree that they shall not be liable for any acts
or omissions to act on the part of the other party, not shall they bind or
attempt to bind or obligate the other party in any manner.

         B. The parties agree to save and hold each other harmless from any
claim or demand based upon the acts of omissions in whole or in part of the
other party. The parties hereby indemnify each other for any amount that the
other party is required in its judgment or by verdict or in compromise to pay
for such acts or omissions thereof, including costs of defense and reasonable
attorneys' fees.

                          SECTION XVIII. - ASSIGNMENT

         PHONE1 may sell, transfer, assign or otherwise dispose of its rights
and/or obligations under this Agreement with the express written consent of
PROTEL. Such consent shall not be unreasonably withheld.

         PROTEL may sell, transfer, assign or otherwise dispose of its rights
and/or obligations under this Agreement with the express written consent of
PHONE1. Such consent shall not be unreasonably withheld.

                                       14
<PAGE>

                  SECTION XIX. - EQUAL EMPLOYMENT OPPORTUNITY

         PHONE1 agrees to abide by any and all applicable federal and/or state
employment opportunity statutes, rules and regulations including without
limitation, Title VII of the Civil Rights Act of 1964, the Equal Employment
Opportunity Act of 1972, the Age Discrimination in Employment Act of 1967, the
Equal Pay Act of 1963, the National Labor Relations Act, the Fair Labor
Standards Act, the Rehabilitation Act of 1973, and the Occupational Safety and
Health Act of 1970, all as may be from time to time modified or amended.

                           SECTION XX. - TERMINATION

         1. PROTEL

         A. PROTEL may terminate this Agreement upon the occurrence of any of
the following events:

            1. Breach by PHONE1 of any material provision of this Agreement.

            2. Failure by PHONE1 to pay PROTEL invoices in accordance with the
agreed upon terms.

            3. A change of ownership of PHONE1 of more than twenty percent (20%)
of the total ownership of the company to a COMPETITOR of PROTEL, subject to the
provisions of SECTION VII (OBLIGATIONS OF RESELLER) of this Agreement.

            4. Any unlawful acts of federal, state or local law by PHONE1 which
are material to PHONE1's performance under this Agreement.

            5. Intentional misrepresentation of PROTEL's CUSTOM PRODUCTS by
PHONE1.

            6. PHONE1 fails to meet any obligation listed under SECTION VII
(OBLIGATIONS OF RESELLER) of this Agreement.

            7. Failure to maintain agreed upon insurance or failure to provide
appropriate proof of such insurance to PROTEL.

         B. PROTEL shall notify PHONE1, in writing, of the specific breach of
this Agreement as indicated by identified breach. PHONE1 shall have thirty (30)
days to cure the breach and notify PROTEL of the cure. Absent PHONE1's cure and
PROTEL's acceptance, this Agreement shall terminate on the thirty-first (31) day
after notification. Should the same breach occur three times

                                       15
<PAGE>

during any one twelve (12) month period, commencing on the Effective Date, the
right to cure shall be forfeited and the termination shall become effective upon
the third notification.

         C. Violation of the SECTION XI (CONFIDENTIAL INFORMATION) of this
Agreement by PHONE1 shall allow PROTEL to terminate this Agreement immediately
upon notice with no right to cure. For this purpose, PROTEL shall submit to
PHONE1 clear and convincing evidence that PHONE1 has violated SECTION XI, and
that such violation has materially impacted the business operations of PROTEL.

         D. If PHONE1 (i) commences any voluntary case, proceeding or other
action under any law relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to
it, or seeking to adjudicate it a bankrupt or insolvent, or seeking adjustment,
winding-up, liquidation, dissolution composition or other relief with respect to
it or its debts, or (ii) there shall be commenced against PHONE1 any involuntary
case, proceeding or other action of a nature referred to in clause (i) that (a)
results in the entry or an order for relief or any such adjudication and (b)
remains undismissed, undischarged or unbonded for a period of 60 days,then
PROTEL at its sole option may terminate this Agreement. If in the event PHONE1
files for Chapter 11 for reorganization purposes, as long as PHONE1's account
remains current, PROTEL, at its option, will ship any future orders on a Cash in
Advance basis.

         E. Upon the termination or expiration of this Agreement, PHONE1 shall
cease all use of the various trademarks, service marks and other word and design
marks of PROTEL, other than (i) for CUSTOM PRODUCT previously sold, (ii)
inventory on hand, (iii) inventory which PHONE1 has an obligation to purchase
under the terms of this Agreement.

         F. Regardless of the reason for termination, termination of this
Agreement extinguishes PHONE1's obligation to purchase any additional or future
CUSTOM PRODUCT except for CUSTOM PRODUCT on order with PROTEL. In the event of
termination, PROTEL shall have no right, except as stated in the preceding
sentence, to compel PHONE1 to purchase any further, future or additional CUSTOM
PRODUCT and shall have no right to damages resulting therefrom.

         G. Termination of this Agreement shall not relieve either Party from
any obligation remaining to be performed under this Agreement.

                                       16
<PAGE>

         II. PHONE1

         A. PHONE1 may terminate this Agreement upon the occurrence of any of
the following events:

            1. Breach by PROTEL of any material provisions of this Agreement.

            2. Failure by PROTEL to deliver CUSTOM PRODUCT in accordance with
               confirmed written delivery dates established by PROTEL.

            3. Intentional misrepresentation of PHONE1 and/or SERVICES by
               PROTEL.

            4. PROTEL fails to meet any obligations listed under SECTION VIII
               (OBLIGATIONS OF PROTEL) of this Agreement.

            5. PROTEL fails, without cause, to agree to enter into a SOURCE CODE
               AGREEMENT as defined in SECTION XXI of this Agreement.

         B. PHONE1 shall notify PROTEL, in writing, of the specific breach of
this Agreement as indicated by identified breach. PROTEL shall have thirty (30)
days to cure the breach and notify PHONE1 of the cure. Absent PROTEL's cure and
PHONE1's acceptance, this Agreement shall terminate on the thirty-first (31) day
after notification. Should the same breach occur three times during any one
twelve (12) month perod, commencing on the Effective Date,the right to cure
shall be forfeited and the termination shall become effective upon the third
notification.

         C. Violation of the SECTION XI (CONFIDENTIAL INFORMATION) of this
Agreement by PROTEL shall allow PHONE1 to terminate this Agreement immediately
upon notice with no right to cure. For this purpose, PHONE1 shall submit to
PROTEL clear and convincing evidence the PROTEL has violated SECTION XI, and
that such violation has materially impacted the business operations of PHONE1.

         D. If PROTEL (i) commences any voluntary case, proceeding or other
action under any law relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to
it, or seeking to adjudicate it a bankrupt or insolvent, or seeking adjustment,
winding-up, liquidation, dissolution composition or other relief with respect to
it or its debts, or (ii) there shall be commenced against PROTEL any involuntary
case, proceeding or other action of a nature referred to in clause (i) that (a)
results in the entry or an order for relief or any such adjudication and (b)
remains undismissed, undischarged or unbonded for a period of 60 days,then
PHONE1 at its sole option may terminate this Agreement.

                                       17
<PAGE>

                      SECTION XXI. - SOURCE CODE AGREEMENT

         No later than thirty (30) days from the effective date of this
Agreement, PROTEL and PHONE1 agree to establish an ESCROW AGREEMENT with a third
party trustee. PROTEL agrees to deliver all source code, software programs, and
related documentation corresponding to CUSTOM PRODUCT to the established
trustee. The terms and conditions of such escrow agreement are to provide for
the transfer of such escrowed material to the provided to PHONE1 for the sole
purpose of supporting CUSTOM PRODUCT obtained under this Agreement in the event
that PROTEL is unable to, or does not, carry on business on a regular basis. The
terms and conditions of such ESCROW AGREEMENT are subject to the prior review
and approval by PHONE1 and PROTEL, which shall not be unreasonable withheld, and
shall, upon PHONE1's and PROTEL's written acceptance, become part of this
Agreement under EXHIBIT C, ESCROW AGREEMENT, PHONE1 agrees that any and all
costs for establishing and maintaining the ESCROW AGREEMENT will be paid by
PHONE1.

            SECTION XXII. - ADDITIONAL UNDERSTANDINGS OF THE PARTIES

         The Parties understand that while this Agreement is limited primarily
to issues relating to CUSTOM PRODUCT and the exclusive sale and distribution of
CUSTOM PRODUCT, the Parties nonetheless desire to enter into a close business
relationship to promote one another's products and/or services. To this end, and
within a reasonable time after the effective date of this Agreement, the Parties
will hold good faith discussions on several strategic alliances, including but
not limited to:

         A.  Establishing a toll free 800/888 Technical Support Line. PROTEL
will provide telephone support for PHONE1 customers through a 1-800/888
telephone number owned by PHONE1 and operated by PROTEL. PHONE1 will pay
allcosts associated with establishing and operating the telephone support.

         B. The purchase of PROTEL payphones, payphone accessories, and
replacement parts, including special discount trade-in packages on intelligent
chassis technologies. PROTEL further agrees to extend the wholesale market
pricing on all PROTEL products. The price, warranty, terms and conditions for
such products are stated in EXHIBIT B of this Agreement.

         C. Joint research and development of technologies to further promote
SERVICES.

         D. PROTEL's assisting PHONE1 in sales and marketing SERVICES.

                                       18
<PAGE>

                         SECTION XXIII. - FORCE MAJEURE

         PROTEL shall not be responsible to PHONE1 for PROTEL's failure to
supply COSTOM PRODUCT if same is due to labor troubles, strikes, lockouts,
fires, accidents, riots, acts of government or public enemy, acts of God or for
any other cause beyond the control of PROTEL, including failure of a manufacture
to deliver CUSTOM PRODUCT to PROTEL.

         PHONE1 shall not be responsible to PROTEL for PHONE1's non-performance
of this Agreement if same is due to labor troubles, strikes, lockouts, fires,
accidents, riots, act of government or public enemy, acts of God or for any
other cause beyond the control of PHONE1. However, under no circumstances,
PHONE1 shall not be relieved of any obligation to make payment of any balance
due in a timely manner to PROTEL.

                            SECTION XXIV. - GENERAL

         A. If any provision of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

         B. This Agreement shall be binding upon the heirs, successors and
permitted assigns of the parties.

         C. The headings used in this Agreement are included for convenience of
the parties only and are not to be used in construing or interpreting this
Agreement.

         D. This Agreement is governed by, and shall be construed in accordance
with, the laws of the State of Florida, without regard to provisions relating to
conflicts of law. THE PARTIES AGREE THAT JURISDICTION AND VENUE OF ANY
LITIGATION ARISING FROM THIS AGREEMENT SHALL BE IN THE STATE OF FLORIDA.

         E. THIS AGREEMENT, TOGETHER WITH ANY OTHER APPLICABLE PROTEL AGREEMENTS
REFERENCING THIS AGREEMENT THAT ARE DULY SIGNED BY THE PARTIES WILL BE THE
COMPLETE AGREEMENT BETWEEN THE PARTIES, SUPERSEDING ALL PROPOSALS OR PRIOR
AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER PRIOR COMMUNICATIONS BETWEEN THE
PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

                                       19
<PAGE>

IN WITNESS WHEREOF, this Agreement has been executed by the undersigned as of
the day, month and year first above written.

AGREED:                                    AGREED:

PHONE1, INC.                               PROTEL, INC.

By DARIO ECHEVERRY                         By Regis B. Mellow
   ---------------                            ---------------

(Please print or type)                     (Please print or type)

By /s/ Dario Echeverry                     By /s/ Regis B. Mellow
   -------------------                        -------------------
        (Signature)                                 (Signature)

       C.E.O.                                      President
----------------------                     ----------------------

TITLE                                      TITLE

July 24th  2001                            7-24-01
----------------------                     ----------------------
      DATE                                       DATE

                                       20
<PAGE>

                                   EXHIBIT A

                             CUSTOM PRODUCT PRICING

EPROM PRODUCT and CUSTOM FLASH KEY:

Part No.                        Description                         Price

             EPROM PRODUCT for the 2000 Series Chassis             [ * ]
             EPROM PRODUCT for the 6000 Series Chassis             [ * ]
             EPROM PRODUCT for the 7000/B Series Chassis           [ * ]
             EPROM PRODUCT for the 8000/B Series Chassis           [ * ]
             CUSTOM FLASH KEY for 7000C Series Chassis             [ * ]
             CUSTOM FLASH KEY for 8000C Series Chassis             [ * ]
             CUSTOM FLASH KEY for 310 Series Chassis                  TBD

Initial Order Agreement:

20,000   PHONE1 EPROMs at $22.50 ea                               [ * ]
20,000   PHONE1 Handsets at $9.82 ea                              [ * ]

Total                                                             [ * ]

Special Phone1 Volume Pricing after Initial Order Agreement if fulfilled:

Qty 10,000   Phone1 EPROMs                                       [ * ]
Qty 5,000    Phone1 EPROMs                                       [ * ]

<PAGE>

                                   EXHIBIT B

                             OTHER PRODUCT PRICING

CHASSIS:
--------
     Part No.                     Description                       Price

            7000C chassis including CUSTOM FLASHKEY               [ * ]
            8000C chassis including CUSTOM FLASHKEY               [ * ]

UPGRADE KITS FOR PROTEL PRODUCT:
--------------------------------
     Part No.                     Description                       Price

            200B chassis: 7000C chassis                           [ * ]
            BB+: 7000C chassis                                    [ * ]

UPGRADE KITS FOR COMPETITOR PRODUCTS:
-------------------------------------
     Part No.                     Description                       Price

Intellical Product:

            2002 Series: Includes a flash 7000 chassis,
            dual solenoid relay, and 25 Pin superdial.            [ * ]

            3003 Series: Includes a flash 7000 chassis,
            dual solenoid relay, and 25 Pin superdial.            [ * ]

            Astratel 1 Series: Includes a flash 7000 chassis,
            dual solenoid relay, and 25 Pin superdial.            [ * ]
            Astratel 2 Series: Includes a flash 7000 chassis,
            dual solenoid relay, and 25 Pin superdial.            [ * ]

Elcotel Product:

            Series 3 and Series 4: includes a flash 7000
            chassis and 25 Pin superdial.                         [ * ]
            Series 5: Includes a flash 7000 chassis and 25
            Pin superdial.                                        [ * ]

Ernest Product:

            D1 and D2: Includes a flash 7000 chassis, duel
            solenoid relay, and 25 Pin superdial.                 [ * ]

            D3: Includes a flash 7000 chassis, duel solenoid
            relay, 15 to  25 pin connector.                       [ * ]

-------------------------------------------------------
     Part No.                     Description                       Price

PRN00909GF  Customer Phone1 Logo Handset (Minimum order 50,000)     [ * ]
PRN00909GF  Customer Phone1 Logo Handset (Minimum order 20,000)     [ * ]

EXPRESS-300 ExpressNet management software with proper security
            available for all above configurations                  [ * ]

UPGRADES ARE AVAILABLE TO PHONE1 WITHW ORKING SMART BOARD
---------------------------------------------------------

7000C                                                             [ * ]
8000C                                                             [ * ]

                                        Prices subject to change without notice.

$50.00 minimun order required.
15% Restocking fee for any returned items.

<PAGE>

                                   EXHIBIT C

                          SOURCE CODE ESCROW AGREEMENT

<PAGE>

                                   EXHIBIT D

                                MARKET SEGMENTS

Phone1 may sell CUSTOM PRODUCTS to companies and other entities in the following
MARKET SEGMENTS.

         [ * ]

If an opportunity arises with an RBOC or LEC, PHONE1 shall involve PROTEL in the
marketing efforts to distribute the CUSTOM PRODUCT to such potential customers.

<PAGE>

                                   EXHIBIT E

                        TRADE NAME/TRADEMARK GUIDELINES

Phone1 is to follow these guidelines when displaying any PROTEL PRODUCTS, PROTEL
trade names, or PROTEL trademarks.

         PROTEL(registermark) TRADENAMES, TRADEMARKS AND WRITING STYLE

Here is an overview of Protel's tradenames and registered trademarks, and usage
guidelines.

Use the tradename or trademark as an adjective the first time it is written, for
example, Sentinel(registermark) payphones. Thereafter, use as a noun in a
stylized manner, such as italics, bold or all capitalized, with the TM or
registermark symbol. Then at the end of the document, one must write the credit,
for example, Sentinel(registermark) is a registered trademark of
Protel,(registermark) Inc. Here are examples of correct usage of various
trademarks:

o  900 Series Credit Express(registermark)/Courtesy Plus(trademark) desktop
   smartphones
o  Ascension(registermark) payphones
o  Courtesy Plus(trademark) wallmount smartphone
o  ExpressNet(registermark) software
o  ExpressNet III(registermark) software
o  Inducto(registermark)
o  Inductotherm(registermark) Industries
o  Model 8000B
o  Panorama(trademark) Payphone Management System
o  Protel,(registermark) Inc.
o  Protel(registermark) payphone parts and accessories
o  Sentinel(registermark) smartphone
o  Smart Credit(trademark) Automatic Trouble Operator
o  TEC-20(trademark) payphone tester

ADHERENCE TO GUIDELINES
-----------------------

Protel requires that the above guidelines be adhered to in order to protect our
tradenames and registered trademarks. Thank you in advance for your cooperation.

Distribution: External    (copyright)Copyright 1999-2000 Protel,(trademark) Inc.
All rights reserved.

<PAGE>

                                   EXHIBIT F

                                    WARRANTY

Phone1 Custom EPROMS                                     1 Year

Phone1 Custom FLASH KEYS                                 1 Year

Phone1 Custom Handsets                                   1 Year

Sentinel 7000 Smart Chassis                              2 Year

Model 8000 Smart Chassis                                 2 Year

Ascension Basic Complete Phone                           2 Year

Ascension Full Featured Complete Phone                   2 Year

<PAGE>

                                   EXHIBIT G

             NON-EXCLUSIVE COMPUTER and PRODUCT LISCENSE AGREEMENT

Not Applicable

<PAGE>

                                   EXHIBIT H

                          TECHNICAL SUPPORT AGREEMENT

Phone1 Technical Support Center:

                                                       $ TBD
                                                       -----Exhibit 10.1
                              EMPLOYMENT AGREEMENT

         This Employment Agreement (hereinafter referred to as the "Agreement")
is entered into by and between HOLLYWOOD MEDIA CORP. (hereinafter referred to as
the "Company") and JERROLD A. WISH (hereinafter referred to as the "Executive").

         1. EFFECTIVE DATE. This Agreement is effective February 25, 2002 (the
"Effective Date"), and will terminate without further notice at 5:00 p.m. on
February 26, 2004 (the "Term").

         2. DUTIES AND RESPONSIBILITIES. The Company hereby employs Executive as
Senior Vice President and General Counsel with such powers and duties in that
capacity as may be established from time to time by the Company in its
reasonable discretion. Executive will devote his entire business time, attention
and energies to the business of the Company and its affiliates as necessary to
fulfill such duties. The Company shall provide such offices, equipment, supplies
and staff as are customary and reasonably necessary for Executive to perform
such duties. The Company shall pay (or reimburse Executive) for all necessary
and reasonable travel-related expenses incurred by Executive in the performance
of Executive's duties hereunder. All such expenses shall be in accordance with
any reasonable guidelines established by the Company from time-to-time.

         3. COMPENSATION.

                  a. BASE SALARY. The Company will pay Executive an annualized
base salary of One Hundred Fifty Thousand Dollars ($150,000), less applicable
deductions, payable in installments according to the Company's normal payroll
practices.

                  b. ANNUAL BONUS. In addition to his base salary, Executive
shall be paid an annual bonus (the "Bonus") during each year of the Term in an
amount determined by the Board of Directors or a committee thereof, which shall
be paid in Company stock or cash at the discretion of the Board of Directors or
such committee; provided, that Executive shall be entitled to receive a Bonus of
at least Twenty-Five Thousand Dollars ($25,000) during each year of the Term.

<PAGE>

                  c. STOCK OPTIONS. On the Effective Date of this Agreement,
Executive will be granted options (the "Options") excercisable for an aggregate
of thirty-five thousand (35,000) shares of the Company's Common Stock under the
Company's 1993 Stock Option Plan as in effect on the Effective Date of this
Agreement or any other stock option or incentive plan adopted by the Company
(the "Option Plan"). The Options shall have an exercise price equal to the Fair
Market Value (as defined in the Option Plan) of the Company's Common Stock on
the date of grant. All of the Options with an exercise price equal to the Fair
Market Value of the Common Stock shall be Incentive Stock Options (as defined in
the Option Plan). The Options shall vest as to twenty-five percent (25%) of the
underlying shares of Common Stock on the first anniversary of the Effective Date
and twenty-five percent (25%) on each subsequent anniversary of the Effective
Date. The Options shall expire 10 years after the date of grant.

                  In addition to the Options, on the first anniversary of the
Effective Date, Executive will be awarded additional options under the Option
Plan exercisable for a number of shares of the Company's Common Stock
(collectively, the "Additional Options") determined by the Board of Directors or
a committee thereof; provided, that Executive will be awarded options to
purchase at least thirty-five thousand (35,000) shares of Common Stock on such
anniversary date. The Additional Options shall have such terms as are determined
by the Board of Directors; provided, that the exercise price thereof shall be no
higher than the Fair Market Value of the Company's Common Stock on the date of
grant, and the vesting schedule and expiration date of the Additional Options
shall be no less favorable to Executive than the terms of the initial Options.

                  d. OTHER BENEFITS. Executive will be entitled to participate
in any group health, life, disability, pension or other employee benefit plan
and is entitled to any other benefits that the Company may maintain from time to
time for similarly situated executives, provided that Executive meets the
respective eligibility requirements; and provided further that the Company will
at all times make available to Executive Company's group health insurance at the
Company's expense. Executive will be entitled to twenty (20) business days paid
vacation in each calendar year during the Term (with not more than ten business
days of vacation taken consecutively), which shall not accrue from year to year.

______________________           Page 2                     ____________________
      Company                                                     Executive

<PAGE>

         4. PERFORMANCE REVIEW. The Company shall provide Executive with an
interim review and evaluation of his performance at the anniversary date of this
Agreement. Executive shall be responsible for taking action to initiate the
performance review.

         5. DEATH OR INABILITY TO PERFORM JOB DUTIES. In the event of
Executive's death, this Agreement and Executive's salary and compensation shall
automatically end, and the Company shall promptly pay to Executive's legal
representative any unpaid base salary accrued through the date of his death, as
well as a lump sum payment equal to the share of Bonus to which he would have
been entitled prorated based on the percentage of the current fiscal year that
had been completed on the date of his death. If during the Term hereof,
Executive suffers a disability (as defined below), the Company shall continue to
pay Executive the compensation provided for in Section 3 hereof during the
period of his disability; provided, however, that in the event Executive is
disabled for a period of more than 120 days in any 12 month period, the Company
may, at its election, terminate this Agreement. As used in this Agreement, the
term "disability" shall mean the complete inability of Executive to perform his
abilities under this Agreement as determined by an independent physician
selected with the approval of the Company and the Executive.

         6. TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate this
Agreement and Executive's employment "for cause" at any time by delivery of
written notice to Executive specifying the basis for termination. As used
herein, "for cause" shall only mean any one of the following:

______________________           Page 3                     ____________________
      Company                                                     Executive

<PAGE>

                  A.       Any act or omission of the Executive which
                           constitutes a willful and material breach of this
                           Agreement which is not cured or as to which diligent
                           attempts to cure have not been commenced within 30
                           business days after receipt by Executive from Company
                           of notice of same;

                  B.       Fraud, embezzlement or misappropriation as against
                           the Company or any of its affiliates; or

                  C.       The conviction (from which no appeal can be taken) of
                           Executive of any criminal act which is a felony.

         In the event the Company terminates Executive's employment for cause,
it shall pay to Executive any unpaid base salary accrued through the date of
termination specified in the notice, and otherwise, Executive's salary and other
compensation described in Section 3 of this Agreement shall automatically
terminate and be forfeited by Executive (except for vested stock options, which
shall be governed by the Option Plan and the applicable grant agreement).

         7. TERMINATION OF AGREEMENT BY THE COMPANY WITHOUT CAUSE. The Company
may terminate this Agreement and Executive's employment without cause at any
time upon thirty (30) days' prior written notice to Executive. The Company will
pay to Executive on the date of termination without cause a lump sum cash
payment, less taxes and other applicable withholding amounts, in an amount equal
to the aggregate amount of base salary that Executive would have received for
the remaining Term of this Agreement. Executive shall also automatically vest,
on the date on which he receives notice of termination, in one hundred percent
(100%) of the unvested underlying shares of Common Stock subject to the initial
Options, and to the extent awarded, the Additional Options.

         8. TERMINATION OF AGREEMENT BY EXECUTIVE. Executive may terminate this
Agreement and his employment with the Company without cause upon thirty (30)
days' prior written notice to the Company. In such a case, Executive may be
required to perform his business duties and will be paid his regular salary up
to the date of the termination. At the option of the Company, the Company may
require Executive to depart from the Company on the date the Company receives
thirty (30) days' notice from Executive of the termination of this Agreement, in
which case any compensation or benefits described in Section 3 of this Agreement
shall automatically terminate and be forfeited by Executive (except for vested
stock options).

______________________           Page 4                    ____________________
      Company                                                     Executive

<PAGE>

         9. COOPERATION. Upon the termination of this Agreement for any reason,
Executive agrees to cooperate with the Company in effecting a smooth transition
of the management of the Company with respect to the duties and responsibilities
which Executive performed for the Company. After termination of this Agreement,
Executive will, upon reasonable notice, furnish such information and proper
assistance to the Company as it may reasonably require in connection with any
litigation to which the Company is or may become party.

         10. AGREEMENT NOT TO DISCLOSE TRADE SECRETS OR CONFIDENTIAL
INFORMATION. During the term of this Agreement and forever thereafter, Executive
promises and agrees that he will not disclose or utilize any trade secrets,
confidential information, or other proprietary information acquired during the
course of his service with the Company and/or any related business entities. As
used herein, "trade secret" and "confidential information" mean the whole or any
portion or phase of any formula, pattern, device, combination of devices, or
compilation of information which is for use, or is used, in the operation of the
Company's business and which provides the Company an advantage, or an
opportunity to obtain an advantage, over those who do not know or use it. "Trade
secret" and "confidential information" also include any scientific, technical,
or commercial information, including any design, list of suppliers, list of
customers, or improvement thereof, as well as pricing information or
methodology, contractual arrangements with vendors or suppliers, business
development plans or activities, or financial information regarding the Company.
Executive's obligations under this Section shall survive the termination of this
Agreement.

______________________           Page 5                     ____________________
      Company                                                     Executive

<PAGE>

         11. AGREEMENT NOT TO HIRE THE COMPANY EMPLOYEES. If Executive leaves
the employ of the Company for any reason, Executive promises and agrees that,
during the six-month period following his departure from the Company, he will
not, without the express written permission of the Company, directly or
indirectly employ as a consultant or employee any person who is employed as a
consultant or employee of the Company at the time of Executive's departure.

         12. INJUNCTIVE RELIEF. In recognition of the unique services to be
performed by Executive and the possibility that any violation by Executive of
Section 10 or Section 11 of this Agreement may cause irreparable or
indeterminate damage or injury to the Company, Executive expressly stipulates
and agrees that the Company shall be entitled, upon ten (10) days written notice
to Executive, to obtain an injunction from any court of competent jurisdiction,
restraining any violation or threatened violation of this Agreement. Such right
to an injunction shall be in addition to, and not in limitation of, any other
rights or remedies the Company may have for damages or liquidated damages.

         13. JUDICIAL MODIFICATION OF AGREEMENT. The Company and Executive
specifically agree that a court of competent jurisdiction (or an arbitrator, as
appropriate) may modify or amend Section 10 or Section 11 of this Agreement if
absolutely necessary to conform with relevant law or binding judicial decisions
in effect at the time the Company seeks to enforce any or all of said
provisions.

         14. RESOLUTION OF DISPUTES BY ARBITRATION. Any claim or controversy
that arises out of or relates to this Agreement, or the breach of it, will be
resolved by arbitration in the County of Palm Beach, Florida in accordance with
the rules then obtaining of the American Arbitration Association. Judgment upon
the award rendered may be entered in any court possessing jurisdiction over
arbitration awards. This Section shall not limit or restrict the Company's right
to obtain injunctive relief for violations of Section 10 or Section 11 of this
Agreement directly from a court under Section 12 of this Agreement. Both parties
shall bear their own costs and attorney's fees incurred in any lawsuit or
arbitration arising under this Agreement, and in no circumstances shall either
party be entitled to trial by jury of any issues arising under or relating to
this Agreement.

______________________           Page 6                     ____________________
      Company                                                     Executive

<PAGE>

         15. ADEQUATE CONSIDERATION. Executive expressly agrees that the Company
has provided adequate, reasonable consideration for the obligations imposed upon
him in this Agreement.

         16. EFFECT OF PRIOR AGREEMENTS. This Agreement supersedes any prior
agreement or understanding between the Company and Executive.

         17. LIMITED EFFECT OF WAIVER BY COMPANY. If the Company waives a breach
of any provision of this Agreement by Executive, that waiver will not operate or
be construed as a waiver of later breaches by Executive.

         18. SEVERABILITY. If any provision of this Agreement is held invalid
for any reason, the other provisions of this Agreement will remain in effect,
insofar as is consistent with law.

         19. ASSUMPTION OF AGREEMENT BY THE COMPANY'S SUCCESSORS AND ASSIGNS.
Except as herein otherwise provided, this Agreement shall inure to the benefit
of and shall be binding upon the parties hereto, their personal representatives,
successors, heirs and assigns. Executive may not assign his rights and
obligations under this Agreement.

         20. RENEWAL. On each twelve (12) month anniversary of the Effective
Date, the expiration date of the Term of this Agreement shall automatically be
extended for an additional period of one (1) year (such that there shall again
be two (2) years remaining in the Term), upon the same terms and conditions as
described herein, unless either party notifies the other party in writing at
least six (6) months prior to the next anniversary of the Effective Date that it
desires for this Agreement to expire at the end of the then existing Term; in
which event the Term shall not be extended and shall expire on the natural end
of the then existing Term.

______________________           Page 7                     ____________________
      Company                                                     Executive

<PAGE>

         21. APPLICABLE LAW. Executive and the Company agree that this Agreement
shall be subject to, and enforceable under, the laws of the State of Florida.

         22. ENTIRE AGREEMENT; ORAL MODIFICATIONS NOT BINDING. This instrument
is the entire Agreement of the Company and Executive. Executive agrees that no
other promises or commitments have been made to Executive. This Agreement may be
altered by the parties only by a written agreement signed by the party against
whom enforcement of any waiver, change, modification, extension, or discharge is
sought.

______________________           Page 8                     ____________________
      Company                                                     Executive

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Employment Agreement
as of _____________, 2002.

HOLLYWOOD MEDIA CORP.                               JERROLD A. WISH

By: /s/  Mitchell Rubenstein                        /s/  Jerrold A. Wish
    --------------------------------                ---------------------------
    Mitchell Rubenstein                             Jerrold A. Wish
    Chief Executive Officer

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