Document:

<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement') is made and entered into by
and between QCOMM INTERNATIONAL INC., a Utah. corporation (the "Company" or
"Employer"), and STEPHEN C. FLAHERTY ("Employee").

      A.    Employer is a company engaged in the business of providing
            management services;

      B.    Employee has been engaged in and has a great deal of experience and
            reputation in the above-designated business;

      C     The Company desires to provide for the employment of Employee, to
            clearly set forth the relationship between the parties and restrict
            Employee from using certain confidential information and from
            competing with the Employer in the future.

                                    Agreement

      NOW, THEREFORE, in consideration of the foregoing recitals which are
      incorporated as a part of this Agreement, and of the mutual covenants
      contained herein and the mutual benefits to be derived hereunder, the
      parties agree as follows:

1.    Employment. Employer hereby employs Employee to perform those duties
      generally described in this Agreement, and Employee hereby accepts and
      agrees to such employment on the terms and conditions hereinafter set
      forth, all as of the date provided in paragraph 32, below (the "Effective
      Date").

2.    Duties. Employer hereby employs Employee on a full-time basis to serve as
      president of the Company, and Employee agrees serve in such office and, at
      the pleasure of the board of directors, in such additional and/or other
      offices or positions consistent with his stature and responsibilities
      hereunder, with Employer as shall, from time to time, be determined by
      Employer's board of directors, without compensation except as set forth
      herein.

3.    Reasonable Best Efforts. Employee agrees that he will at all times
      faithfully, industriously, and to the reasonable best of his ability,
      experience, and talents, perform all of the duties that may be required of
      and from him pursuant to the express and explicit term, hereof,

4.    Vacations. Employee shall be entitled each year to a paid vacation of at
      least two weeks. Vacations shall be taken by Employee at times and with
      starting and ending dates determined by Employee taking into account the
      reasonable needs of Employer. Vacation or portions of vacations not used
      in one employment year shall carry over to succeeding employment year, but
      shall thereafter expire if not used within such succeeding year.

5.    Term. The term of this Agreement shall be for the period commencing, on
      the Effective Date and continuing through December 31, 2003. This
      Agreement may be renewed for successive one-year terms, upon the agreement
      of the Employer and Employee to renew this Agreement. For all purposes of
      the Agreement, including for purposes of applying the renewal provisions
      of the Section to any term subsequent to the term then being extended, the
      Expiration Date shall mean December 31, 2003, for the initial term hereof,
      of December 31 at the end of any one-year renewal term, as the case may
      be.

6.    Base Salary. Employer shall pay to Employee a base salary of $120,000 per
      annum for the period ending December 31, 2002, and for each successive
      one-year term of this Agreement. Base salary is payable biweekly in
      accordance with the payroll procedures established by Employer for all its
      employees. Such salary shall be subject to an annual review and may be
      increased, but not decreased, by the Company's board of directors. The
      salary to Employee and all other compensation and benefits hereunder shall
      be subject withholding and other applicable taxes.

<PAGE>

7.    Stock Option. As an inducement to the Employee, and in consideration of
      the agreement of Employee to accept employment with Employer, on the
      Effective Date of this Agreement Employer shall issue and deliver to
      Employee an option to purchase shares of the Employer's common stock in
      the form known as the Q Comm International Stock Option Plan, attached at
      Exhibit A and Exhibit B.

8.    Employment Benefits. Employer shall provide life, long-term disability,
      and health and medical insurance for Employee in a form and program to be
      chosen by Employer for its full-time employees. Employee shall be entitled
      to participate in all of Employer's benefit plans, including but not
      limited to, any stock option, medical, dental, life insurance, retirement,
      pension, profit sharing, or other plan as in effect from time to time on
      the same basis as provided generally to all other employees.

9.    Working Facilities. Employer will provide to Employee at Employer's
      principal executive offices suitable executive offices and facilities
      appropriate for his position and suitable for the performance of his
      responsibilities.

10.   Expenses. Employer shall bear the cost of all expenses reasonably incurred
      by the Employee in performing his duties under this Agreement. The
      expenses for which Employer will reimburse Employee include, but are not
      limited to, expenses for travel, lodging, meals, beverages, entertainment,
      and similar items. The Employee shall provide to 5mployer a monthly
      accounting of such expenses, all on a basis consistent with a reasonable
      policy established by Employer for its executive officers. Any amount
      owing on the monthly accounting will be paid by the Employer or reimbursed
      by the Employee, as the case may be, within 30 day, following the end of
      the month. Employee agrees to submit such documentation as may be
      necessary to substantiate the deductibility of the foregoing expenses for
      income tax purposes, which are permitted under the Internal Revenue, Code.
      Employee agrees to keep such records as are required under the Internal
      Revenue Code and the Regulations thereunder to enable substantiation of
      each of the said expenditures or reimbursements. In the event a dispute
      should arise regarding any matter set forth ill this paragraph 10, the
      determined with respect thereto shall be made by Employer's certified
      public accountants, which determination shall be final and binding on all
      parties hereto

11.   Non-Solicitation. During the period of this Agreement, and for an
      additional period after termination or expiration of this Agreement equal
      to one year, Employee agrees that he will not, directly or indirectly,
      solicit may employee of Employer or any subsidiary of Employer (the
      "Employer Group") who was employed by the Employer Group at any time
      within six months prior to the date of termination or expiration of this
      Agreement. During the period of this Agreement and for additional period
      after termination or expiration of this Agreement equal to one year,
      Employee agrees that he will not, directly or indirectly, solicit in
      connection with any business that is the same as or similar to the
      business of the Employer Group any person, firm, or business that was a
      customer or client of the Employer Group at any time during the two year
      prior to the date of termination or expiration of this Agreement or any
      person, firm, or business that was solicited by any of the Employer Group
      to be a customer or client of the Employer Group at any time during the
      six-month period prior to the date o(pound) termination or expiration of
      this Agreement. The obligation not to solicit as described above is not
      limited by territory. If in may judicial proceeding a court shall refuse
      to enforce any of the covenants included in this paragraph, then the
      unenforceable covenants shall be deemed eliminated from these provisions
      for the purpose for the purpose of those proceeding and solely for the
      geographical area covered by the jurisdiction of the court presiding over
      the proceedings to the extent necessary to permit the remainder covenants
      to be enforced. The foregoing covenants shall survive the termination of'
      this Agreement. Employee also agrees not to compete with the company for a
      period of one after termination of employment as long as Employee was not
      terminated without cause.

12.   Non-Disclosure of Information. In further consideration of employment and
      the continuation of employment by Employer, Employee agrees as follows:

(a)   During the period of this Agreement and after termination or expiration of
      this Agreement for any reason, Employee will not, directly or indirectly:

      (i)   use for his own benefit or give to any person not authorized by
            Employer to receive or use such information, except for the sole
            benefit of Employer, any data, information, marketing or
            installation plans, procedures, results, method, ideas, processes,
            or research and development, which are proprietary to Employer;
<PAGE>

      (ii)  use for his own benefit or give to any person not authorized by
            Employer to receive it, any plan or specifications, customer 1ists,
            data, study, table, report, written technical information, or the
            like owned by Employer, or any copy thereof; or

      (iii) use for his own benefit or give to any persons not authorized by
            employer to receive it any information that is not generally known
            to anyone other than Employer, or that is designated by Employer as
            "Limited", "Private", "Confidential", or similarly designated.

(b)   Employee will not, except when authorized by Employer or required for the
      performance of his duties hereunder, remove any of Employer's physical
      property from Employer's premises. He will return to Employer, immediately
      upon termination of employment, all of Employer's physical property in his
      possession or control.

13.   Termination. Either party may terminate this Agreement at any time for any
      reason on not less than 30 days' prior written notice to the other party.
      In connection such termination, the Employee shall receive all base salary
      and benefits due him through the date of termination.

      In the event termination occurs other than (i) on expiration of term of
      this Agreement under paragraph 5, above, or (ii) by the Company for
      "Cause" (as hereinafter defined), the Employee's option with respect to
      the "Stock Option Plan" shall vest as provided in paragraph 2 of the
      Option Plan dated January 1, 2001 and January 1, 2002.

      In the event this Agreement is terminated by the Employee for "Good
      Reason" (as hereinafter defined), the Employee's option with respect to
      the "Stock Option Plan" shall vest as provided in paragraph 2 o(pound) the
      Option Plan dated January l, 2001 and January 1, 2002.

      In the event this Agreement is terminated by the Company for Cause or by
      the Employee without Good Reason, the Employee's option with respect to
      the "Stock Option Plan", shall not vest except in accordance with the
      Stock Option Plan.

      For purposes hereof, "Cause" shall mean any of (a) a conviction of
      Employee in any criminal proceeding other than traffic violations and
      other minor offenses, (b) Employee being found by a court of competent
      jurisdiction in a civil, action to have engaged in any conduct consuming
      fraud, conversion of property, or theft, or (c) any breach by Employee of
      the terms of this Agreement that is not cured within 30 days after
      Employee receives written notice detailing the breach.

      For purposes hereof, "Good Reason" shall mean any of (x) a substantial
      reduction in the duties, title, or responsibilities of the Employee
      hereunder without the Employee's written consent, (y) a reduction in the
      base salary or benefits due Employee hereunder without the Employee's
      written consent, or (z) moving Employee's primary place of employment
      outside the Orem, Utah metropolitan area without the Employee's written
      consent.

      In the event the Employment Agreement is terminated by the Company without
      Cause or is terminated by the Employee with Good Reason as defined in
      Paragraph 13, the right to exercise existing options with respect to any
      of the Performance Option Shares that are subject to vesting on the
      occurrence of future events following the date of termination shall
      immediately vest and be exercisable in accordance with the terms of the
      current Stock Option Plans.

14.   Death During Employment. If the Employee dies during the term of the
      employment, Employer shall pay to the estate of Employee an amount equal
      to all base salary earned as of the date of death.

15.   Non-transferability. Neither Employee, his spouse, his designated
      contingent beneficiary, nor their estates shall have any right to
      anticipate, encumber, or dispose of any payment due under this Agreement.
      Such payments and other rights are expressly declared non-assignable and
      nontransferable except as specifically provided herein.
<PAGE>

16.   Indemnification. Employer shall indemnify Employee and hold him harmless
      from liability for, and shall advance to him on a current basis any
      expenses incurred in connection with, acts, omissions, or decisions made
      by him while performing services for Employer to the greatest extent
      permitted by applicable law. Employer shall also use its best efforts to
      obtain and maintain during the term of this Agreement coverage for
      Employee in his capacity as an officer and director of Employer of any of
      its subsidiaries or affiliates under any insurance policy now in force or
      hereafter obtained during the term of this Agreement insuring officers and
      directors of Employer, in amounts acceptable to Employee, against such
      liability.

17.   Assignment. This Agreement may not be assigned (other than by will or by
      operation of law), by either party without the prior written consent of
      the other party. Subject to this limitation, this Agreement shall be
      binding upon and inure to the benefit of the proxies hereto and their
      heirs, executors, administrators, successors, legal representatives, and
      permitted assigns.

18.   Entire Agreement. This agreement, including the option arrangements
      referred to herein, is and shall be considered to be only agreement or
      understanding between the parties hereto with respect to the employment of
      Employee by Employer. All negotiations, commitments, and understandings
      acceptable to both parties have been incorporated herein. No letter,
      telegram, or communication passing between the parties hereto shall be
      deemed a part of this Agreement; nor shall it have the effect of modifying
      or adding to this Agreement unless it is distinctly stated in such letter,
      telegram, or communication that it is to constitute a part of this
      Agreement and is to be attached as a rider to this Agreement and is signed
      by the parties to this Agreement.

19.   Modification of Contract. This Agreement cannot be modified by tender,
      acceptance or endorsement of any instrument of payment, including check.
      Any words contained in an instrument of payment modifying this contract,
      including a waiver or release of any claims or a statement referring to
      paying in full is void, This Agreement can only be modified in a separate
      writing, other than an instrument of payment, signed by the parties.

20.   Counterpart and Headings. This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original and all of which
      together shall constitute one and the same instrument. All headings in
      this Agreement are inserted for convenience of reference and shall not
      affect its meaning or interpretation.

21.   Cooperation. The parties shall deal with each other in good faith meaning
      honesty in fact cud the observance of all commercial standards of fair
      dealing and usages of trade, which are regularly observed within the
      industry. 'In this regard, Employer shall not engage in any course of
      conduct that is oppressive to Employee and intended by Employer to force
      Employee's resignation.

22.   No Strict Construction, The language used in this Agreement shall be
      deemed to be the language chosen by the parties hereto to express their
      mutual intent, and no rule of strict construction shall be applied against
      any party.

23.   Notices. Any notice, request, instruction, report or other document to be
      given to the parties shall be in writing and delivered personally or sent
      by certified mail, postage prepaid, 'the parties shall be in writing and
      delivered personally or sent by certified mail, postage prepaid,

      If to Employee:      Stephen C. Flaherty
                           3645 N. Little Pock Lane
                           Prove, Utah 84604

      If to Employee:      Q Comm International, Inc.
                           Attn: Paul Hickey
                           1l45 South 1680 West
                           Orem, Utah 84058

      Or at such other address as any party shall specify to the other party in
      writing.
<PAGE>

25.   Arbitration. In the event of dispute or controversy between the parties as
      to the performance hereof, this Agreement shall be and remain in full
      force and effect and all terms hereof shall continue to be complied with
      by both parties, it shall be submitted to two arbitrators, one to be
      appointed by each, and if those arbitrators do not agree, they shall
      select a third disinterested and competent person to act with them, and
      the decision of the three, or a majority of them, shall be final and
      conclusive. If either party does not

      appoint an arbitrator as aforesaid within 90 days after receipt of notice
      to the other that it desires arbitration, which notice shall state the
      name and address of the arbitrator appointed by such other, and does not
      within such period furnish to such other party the name and address of the
      second arbitrator, then the arbitrator first named shall appoint a
      disinterested and competent arbitrator for the party thus defaulting, and
      the two arbitrators so appointed shall select a third to act with them as
      aforesaid and with like effect. Cost o(pound) arbitration shall be borne
      by the parties equally. Judgment upon the reward rendered may be entered
      in any court having jurisdiction thereof.

26.   Enforcement. Employee acknowledges that any remedy at law for breach of
      paragraphs 11 and 12 would be inadequate, acknowledges that Employer would
      be irreparably damaged by an actual or threatened breach thereof, and
      agrees that Employer shall be entitled to an injunction restraining
      Employee from any actual or threatened breach of paragraphs 11 and 12 as
      well as any further appropriate equitable relief without any bond or other
      security being required. In addition to the foregoing, each of the parties
      hereto shall be entitled to any remedies available at law or in equity
      with respect to the breach of the terms of this Agreement by the other
      party.

27.   Governing Law. This Agreement shall be governed by and interpreted in
      accordance with the laws of the state of Utah.

28.   Severability. If and to the extent that nay court of competent
      jurisdiction holds any provision or any part thereof of this Agreement to
      be invalid or unenforceable, such holding shall in no way affect the
      validity of the remainder of this Agreement.

29.   Waiver. No failure by an party to insist upon the performance of any
      covenant, duty, agreement, or condition of this Agreement or to exercise
      any right or remedy consequent, upon a breach hereof shall constitute a
      waiver of any such breach or of any other covenant, agreement, term, or
      condition.

30.   Non-Disclosure. Employer shall not reveal the terms of this Agreement to
      any party, except as may be required by law or upon the reasonable request
      of any bank, investment-banking firm., or present or proposed lender of
      Employer.

3l.   Non-Conflict. Each of Employer and Employee hereby represents that this
      Agreement does not, and as of the Effective Date will not, conflict with
      any other agreement to which it is a party.

32.   Attorneys' Fees. In any action at law or in equity to enforce any of the
      provisions or rights under this Agreement, the unsuccessful party of such
      litigation, as determined by the court in a final judgment or decree,
      shall pay the successful party or party's costs, expenses, and reasonable
      attorneys' fees incurred therein by such party or parties (including,
      without limitation, such costs, expenses, and fees on any appeal(s), and
      if such successful party shall recover judgment in any such action or
      proceeding, such costs, expenses, and attorney's fees shall be included as
      part of such judgment and the collection thereof.

33.   EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

         This Agreement contains the entire understanding between the parties
      hereto and supersedes any prior employment agreement between the Employer
      or any predecessor of the Employer and Employee, except that this
      Agreement shall not affect or operate to reduce any benefit or
      compensation inuring to the Employee of a kind elsewhere provided. No
      provision of this Agreement shall be interpreted to mean that Employee is
      subject to receiving fewer benefits than those available to him without
      reference to this Agreement.
<PAGE>

34.   Effective Date. This Agreement shall be effective ("Effective Date"), and
      the term hereof shall commence upon May 3, 2002.

IN WITNESS WHEREOF, the parties have executed this Agreement at the offices of Q
Comm International, Inc. in Orem, Utah the 3rd day of May 2002.

                                          EMPLOYER:

                                          Q COMM INTERNATIONAL, INC.

                                              By /s/ Paul C. Hickey
                                                 -----------------------
                                                   Paul C. Hickey, CEO

                                          EMPLOYEE:
                                              By: /s/ Stephen C. Flaherty
                                                  -----------------------
                                                    Stephen C. Flaherty<PAGE>

                          SECURITIES PURCHASE AGREEMENT

         SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of May 20,
2003, by and among Q Comm International, Inc., a Utah corporation, having its
principal office at 1145 South 1680 West, Orem, Utah 84058 (the "Company"), and
Jurika Family Trust U/A 1989 (the "Buyer").

         WHEREAS:

         A. The Company and the Buyer are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by Rule 506 under Regulation D ("Regulation D") as promulgated by the United
States Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "1933 Act"); and

         B. The Company desires to issue and sell, upon the terms and conditions
set forth in this Agreement: (i) the Company's 12% unsecured promissory note in
the original principal amount of One Million Dollars ($1,000,000), substantially
in the form attached hereto as Exhibit "A" (the "Note") and (ii) warrants, in
the form attached hereto as Exhibit "B" (the "Warrants"), to purchase 3,571,428
shares of the Company's common stock, par value $.001 per share (the "Common
Stock"); and

         C. Buyer wishes to purchase, upon the terms and conditions stated in
this Agreement, the Note and the Warrants.

         NOW THEREFORE, the Company and the Buyer hereby agree as follows:

         1. PURCHASE AND SALE OF DEBENTURES, SHARES AND WARRANTS.

                           a. Purchase of Securities. On the Closing Date (as
defined below), the Company shall issue and sell to the Buyer and the Buyer
agrees to purchase from the Company the Note and the Warrants.

                           b. Purchase Price and Form of Payment. The purchase
price for the Note and the Warrants shall be $1,000,000 in the aggregate (the
"Purchase Price"). On the Closing Date (as defined below), (i) the Buyer shall
pay the Purchase Price by wire transfer of immediately available funds (or as
otherwise mutually agreed) to the Company, in accordance with the Company's
written wiring instructions, against delivery of the Note and the Warrants and
(ii) the Company shall deliver the Note and the Warrants, duly executed on
behalf of the Company, to the Buyer, against delivery of such Purchase Price.

                           c. Closing Date. Subject to the satisfaction (or
waiver) of the conditions thereto set forth in Section 5 and Section 6 below,
the date and time of the issuance and sale of the Note and the Warrants shall be
11:00 a.m. Eastern Standard Time on May 31, 2003 or such other mutually agreed
upon time (the "Closing Date"). The closing of the transactions contemplated by
this Agreement (the "Closing") shall occur on the Closing Date at the offices of
the Companya s set forth above, or at such other location as may be agreed to by
the parties.

                  2. BUYER'S REPRESENTATIONS AND WARRANTIES. The Buyer
represents and warrants to the Company that:

                           a. Investment Purpose. As of the date hereof, the
Buyer is purchasing the Note and the Warrants and the shares of the Common Stock
issuable upon exercise of the Warrants (the "Warrant Shares" and, together with
the Note, the "Securities") for its own account and not with a present view
towards the public sale or distribution thereof, except pursuant to sales
registered or exempted from registration under the 1933 Act; provided, however,
that by making the representations herein, the Buyer, subject to any agreement
to the contrary executed simultaneously herewith, does not agree to hold any of
the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a
registration statement or an exemption under the 1933 Act.
<PAGE>

                           b. Accredited Investor Status. The Buyer is an
"accredited investor" as that term is defined in Rule 501(a) of Regulation D (an
"Accredited Investor") for the reasons checked on Schedule 1 hereto.

                           c. Reliance on Exemptions. The Buyer understands that
the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state
securities laws and that the Company is relying upon the truth and accuracy of,
and the Buyer's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of the Buyer
to acquire the Securities.

                           d. Information. The Buyer and its advisors, if any,
have been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the
Securities that the Buyer or its advisors has requested. The Buyer and its
advisors, if any, have been afforded the opportunity to ask questions of the
Company. The Buyer understands that its investment in the Securities involves a
significant degree of risk.

                           e. Governmental Review. The Buyer understands that no
United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the
Securities.

                           f. Transfer or Re-sale. The Buyer understands that
(i) the sale or re-sale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and none
of the Securities may be transferred unless (a) they are sold pursuant to an
effective registration statement under the 1933 Act, (b) the Buyer shall have
delivered to the Company an opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable
transactions) to the effect that the Securities to be sold or transferred may be
sold or transferred pursuant to an exemption from such registration, (c) the
Securities are sold or transferred to an "affiliate" (as defined in Rule 144
promulgated under the 1933 Act (or a successor rule) ("Rule 144")) of the Buyer
who agrees to sell or otherwise transfer such securities only in accordance with
this Section 2(f) and who is an Accredited Investor, or (d) the Securities are
sold pursuant to Rule 144; (ii) any sale of the Securities made in reliance on
Rule 144 may be made only in accordance with the terms of said Rule and further,
if said Rule is not applicable, any re-sale of such Securities under
circumstances in which the seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the 1933 Act) may
require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the 1933 Act or
any state securities laws or to comply with the terms and conditions of any
exemption thereunder. Notwithstanding the foregoing or anything else contained
herein to the contrary, the Securities may be pledged as collateral in
connection with a bona fide margin account or other lending arrangement.

                           g. Legends. The Buyer acknowledges that, except as
otherwise set forth in this Section 2(g), the Note and the certificates
evidencing the Warrants and the Warrant Shares shall bear a restrictive legend
in substantially the following form (and a stop-transfer order may be placed
against transfer of the certificates for such Securities):

                                       2
<PAGE>

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended. The
                  securities may not be sold, transferred or assigned in the
                  absence of an effective registration statement for the
                  securities under said Act, or an opinion of counsel, in form,
                  substance and scope customary for opinions of counsel in
                  comparable transactions, that registration is not required
                  under said Act or unless sold pursuant to Rule 144 under said
                  Act."

         The legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of any Security upon which it is
stamped, if, unless otherwise required by applicable state securities laws, (a)
such Security is registered for sale under an effective registration statement
filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can
then be immediately sold, or (b) such holder provides the Company with an
opinion of counsel, in form, substance and scope customary for opinions of
counsel in comparable transactions, to the effect that a public sale or transfer
of such Security may be made without registration under the 1933 Act, including
pursuant to the provisions of Rule 144 and such sale or transfer is effected.
The Buyer agrees to sell all Securities, including those represented by a
certificate(s) from which the legend has been removed, in compliance with
applicable prospectus delivery requirements, if any.

                           h. Authorization; Enforcement. This Agreement has
been duly and validly authorized, executed and delivered on behalf of the Buyer,
and this Agreement constitutes the valid and binding agreement of the Buyer
enforceable in accordance with its terms.

                           i. Broker. Except as otherwise set forth in this
Section 2i), the Buyer represents and warrants that it has not dealt with any
broker, finder, agent or other intermediary who is entitled to a commission or
fee with respect to the transactions contemplated hereby. Notwithstanding the
foregoing, Halpern Capital, Inc. shall be entitled to a fee equal to 6% of the
Purchase Price, which fee shall be payable by the Company out of the Purchase
Price.

                  3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to the Buyer that:

                           a. Organization and Qualification. The Company and
each of its Subsidiaries (as defined below), is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in
which it is incorporated, with full power and authority (corporate and other) to
own, lease, use and operate its properties and to carry on its business as and
where now owned, leased, used, operated and conducted. The Company and each of
its Subsidiaries is duly qualified as a foreign corporation to do business and
is in good standing in every jurisdiction in which its ownership or use of
property or the nature of the business conducted by it makes such qualification
necessary except where the failure to be so qualified or in good standing would
not have a Material Adverse Effect. "Material Adverse Effect" means any material
adverse effect on the business, operations, assets, financial condition or
prospects of the Company or its Subsidiaries, if any, taken as a whole, or on
the transactions contemplated hereby or by the agreements or instruments to be
entered into in connection herewith. "Subsidiaries" means any corporation or
other organization, whether incorporated or unincorporated, in which the Company
owns, directly or indirectly, any equity or other ownership interest. The
Company has only one subsidiary - Q Comm, Inc., a Utah corporation.

                                       3
<PAGE>

                           b. Authorization; Enforcement; No Conflict. (i) The
Company has all requisite corporate power and authority to enter into and
perform this Agreement and to consummate the transactions contemplated hereby
and thereby and to issue the Securities, in accordance with the terms hereof,
(ii) the execution and delivery of this Agreement and the Securities by the
Company and the consummation by it of the transactions contemplated hereby and
thereby (including without limitation, the issuance of the Note and the Warrants
and the issuance and reservation for issuance of the Warrant Shares issuable
upon exercise of the Warrants) have been duly authorized by the Company's Board
of Directors and no further consent or authorization of the Company, its Board
of Directors, or its stockholders is required, (iii) this Agreement has been
duly executed and delivered by the Company, and (iv) this Agreement constitutes,
and upon execution and delivery by the Company of the Note and the Warrants,
each of such instruments will constitute, a legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms. The
execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby will not (i)
conflict with or result in a violation of any provision of the Company's
Articles of Incorporation or bylaws or (ii) violate or conflict with, or result
in a breach of any provision of, or constitute a default (or an event which with
notice or lapse of time or both could become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its
Subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations and regulations of any self-regulatory organizations to
which the Company or its securities are subject) applicable to the Company or
any of its Subsidiaries or by which any property or asset of the Company or any
of its Subsidiaries is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect).

                           c. Issuance of Shares. The Warrant Shares are (or
shall be) duly authorized and reserved for issuance and, upon exercise of the
Warrants in accordance with their respective terms, will be validly issued,
fully paid and non-assessable, and free from all taxes, liens, claims and
encumbrances with respect to the issue thereof and shall not be subject to
preemptive rights or other similar rights of stockholders of the Company and
will not impose personal liability upon the holder thereof.

                           d. SEC Documents; Financial Statements. Since at
least January 1, 2002, the Company has timely filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities Exchange Act of 1934,
as amended (the "1934 Act") (all of the foregoing filed prior to the date hereof
and all exhibits included therein and financial statements and schedules thereto
and documents (other than exhibits to such documents) incorporated by reference
therein, being hereinafter referred to herein as the "SEC Documents"). As of
their respective dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. None of the
statements made in any such SEC Documents is, or has been, required to be
amended or updated under applicable law (except for such statements as have been
amended or updated in subsequent filings prior to the date hereof). As of their
respective dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
United States generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects the
consolidated financial position of the Company and its consolidated Subsidiaries
as of the dates thereof and the consolidated results of their operations and
cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments).

                                       4
<PAGE>

                           e Absence of Certain Changes. Since March 31, 2003,
there has been no material adverse change and no material adverse development in
the assets, liabilities, business, properties, operations, financial condition,
results of operations or prospects of the Company or any of its Subsidiaries.

                           f. Disclosure. All information relating to or
concerning the Company or any of its Subsidiaries set forth in this Agreement is
true and correct in all material respects and the Company has not omitted to
state any material fact necessary in order to make the statements made herein or
therein, in light of the circumstances under which they were made, not
misleading.

                  4. COVENANTS.

                           a. Best Efforts. The parties shall use their best
efforts to satisfy timely each of the conditions described in Section 6 and 7 of
this Agreement.

                           b. Use of Proceeds. The Company shall use the
proceeds from the sale of the Securities primarily to contract manufacture its
Qxpress 200 terminals, including purchasing parts and components used in the
assembly of such terminals and to purchase inventory, including PINs from
telecommunications carriers.

                           c. Indebtedness for Borrowed Money. Except for any
purchase money indebtedness incurred in connection with the purchase of
inventory, as long as any amount remains unpaid on the Note, the Company will
not without the prior written consent of Buyer, incur any additional
indebtedness for borrowed money unless such indebtedness is by its terms
subordinate in all material respects, including but not limited to, in right of
payment, to the payment of the Note.

                           d. Reservation of Shares. The Company shall at all
times have authorized, and reserved for the purpose of issuance, a sufficient
number of shares of Common Stock to provide for the full exercise of the
Warrants and issuance of the Warrant Shares in connection therewith (based on
the exercise price of the Warrants in effect from time to time). The Company
shall not reduce the number of shares of Common Stock reserved for issuance upon
exercise of the Warrants without the consent of the Buyer.

                  5. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL. The
obligation of the Company hereunder to issue and sell the Note and the Warrants
to the Buyer at the Closing is subject to the satisfaction, at or before the
Closing Date of each of the following conditions thereto, provided that these
conditions are for the Company's sole benefit and may be waived by the Company
at any time in its sole discretion:

                           a. The Buyer shall have delivered the Purchase Price
in accordance with Section 1(b) above.

                           b. The representations and warranties of the Buyer
shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date), and the Buyer shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Buyer at or prior to the Closing Date.

                                       5
<PAGE>

                           c. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

                  6. CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE. The
obligation of the Buyer to purchase the Note and Warrants at the Closing is
subject to the satisfaction, at or before the Closing Date of each of the
following conditions, provided that these conditions are for the Buyer's sole
benefit and may be waived by the Buyer at any time in its sole discretion:

                           a. The Company shall have executed this Agreement and
delivered the same to the Buyer.

                           b. The Company shall have delivered to the Buyer a
duly executed Note and warrant certificate evidencing the Warrants in accordance
with Section 1(b) above.

                           c. Paul Hickey shall have executed and delivered to
the Buyer a subordination agreement in the form of Exhibit "C" hereto.

                           d. The representations and warranties of the Company
shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at such time (except for representations
and warranties that speak as of a specific date) and the Company shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the Closing Date. The Buyer shall
have received a certificate or certificates, executed by the chief executive
officer of the Company, dated as of the Closing Date, to the foregoing effect
and as to such other matters as may be reasonably requested by such Buyer
including, but not limited to certificates with respect to the Company's
Certificate of Incorporation, By-laws and Board of Directors' resolutions
relating to the transactions contemplated hereby.

                           e. No litigation, statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.

                  7. GOVERNING LAW; MISCELLANEOUS.

                           a. Governing Law. THIS AGREEMENT SHALL BE ENFORCED,
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE,
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED
IN SAN FRANCISCO, CALIFORNIA, WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS
AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.
BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST
CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON
THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER
PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. BOTH
PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY THAT DOES NOT
PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL
FEES AND EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

                                       6
<PAGE>

                           b. Counterparts; Signatures by Facsimile. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                           c. Headings. The headings of this Agreement are for
convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

                           d. Severability. In the event that any provision of
this Agreement is invalid or enforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision
hereof.

                           e. Entire Agreement; Amendments. This Agreement and
the instruments referenced herein contain the entire understanding of the
parties with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Buyer
makes any representation, warranty, covenant or undertaking with respect to such
matters. No provision of this Agreement may be waived or amended other than by
an instrument in writing signed by the party to be charged with enforcement.

                           f. Notices. Any notices required or permitted to be
given under the terms of this Agreement shall be sent by certified or registered
mail (return receipt requested) or delivered personally or by courier (including
a recognized overnight delivery service) or by facsimile and shall be effective
five days after being placed in the mail, if mailed by regular United States
mail, or upon receipt, if delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile, in each case addressed
to a party. The addresses for such communications shall be:

                           If to the Company:

                                    Q COMM INTERNATIONAL
                                    1145 South 1680 West
                                    Orem, Utah 84058
                                    Attention: Chief Executive Officer
                                    Telephone: 801-226-4222

                                       7
<PAGE>

                           With copy to:

                                    Morse, Zelnick, Rose & Lander, LLP
                                    405 Park Avenue
                                    New York, New York 10022
                                    Attention: George Lander, Esq.
                                    Telephone: 212-838-8269
                                    Facsimile: 212-838-9190

         If to the Buyer: To the address set forth immediately below such
Buyer's name on the signature page hereto.

         Each party shall provide notice to the other party of any change in
address.

                           g. Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
assigns. Neither the Company nor the Buyer shall assign this Agreement or any
rights or obligations hereunder without the prior written consent of the other.

                           h. Third Party Beneficiaries. This Agreement is
intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is neither for the benefit of, nor may any provision
hereof be enforced by, any other person.

                           i. Survival. The representations and warranties of
the Buyer set forth in Section 2 hereof shall survive the Closing for a period
of six months. The representations and warranties of the Company set forth in
Section 3 hereof and the covenants of the company set forth in Section 4 hereof
shall survive the Closing for as long as any amount shall remain unpaid under
the Note. The Company agrees to indemnify and hold harmless the Buyer and all
its officers, directors, employees and agents for loss or damage arising as a
result of or related to any breach or alleged breach by the Company of any of
its representations, warranties and covenants set forth in Sections 3 and 4
hereof. The Buyer agrees to indemnify and hold harmless the Company and its
officers, directors, employees and agents for loss or damage arising as a result
of or related to any material breach by the Buyer of any of its representations,
warranties and covenants set forth in Section 2 hereof.

                           j. Further Assurances. Each party shall do and
perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

                           k. No Strict Construction. The language used in this
Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Buyer and the Company have caused this
Agreement to be duly executed as of the date first above written.

Q COMM INTERNATIONAL, INC.

By:      /s/ Paul Hickey
         ------------------------------------
         Paul Hickey
         Chairman and Chief Executive Officer

Jurika Family Trust U/A 1989

By:      /s/ William K. Jurika
         ------------------------------------
         Name: William K. Jurika
         Title: Trustee

RESIDENCE: California

ADDRESS:

         C/o Jurika & Associates
         2030 Franklin Street, Suite 210
         Oakland, California 94612
         Tax ID No.:

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]