THIS EMPLOYMENT AGREEMENT (the "Agreement") is made effective the first day of January, 1998, by
and between BILLING CONCEPTS CORP., a Delaware corporation, with principal offices located at 7411
John Smith Drive, Suite 200, San Antonio, Texas 78229 (the "Company"), and PAUL L. GEHRI, a resident of
San Antonio, Bexar County, Texas (the "Employee").
W I T N E S S E T H:
WHEREAS, the Employee is now employed by the Company, and the Employee and the Company desire to
enter into an agreement relating to such employment, outlining the duties and obligations of each:
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties
hereby agree as follows:
1. EMPLOYMENT. The Company agrees to continue to employ the Employee, and the Employee agrees to
continue to be employed by the Company, subject to the terms and conditions set forth herein.
2. TERM. Subject to the provisions hereof, the term of the Employee's employment by the Company under this
Agreement shall be for a period of one (1) year commencing on the date hereof; provided that such term of
employment shall continue thereafter unless and until terminated by either the Company or the Employee upon no
less than one hundred twenty (120) days' prior written notice to the other of the desire to terminate such
employment. The term of the Employee's employment hereunder, including any subsequent continuation of the
original term, is hereinafter referred to as the "Employment Period."
3. POSITION AND DUTIES. During the Employment Period, the Employee shall serve as Senior Vice
President of Sales of the Company, with such assignments, powers and duties as are assigned or delegated to
him by the Chairman of the Board of Directors of Billing Concepts Corp., the parent corporation of the
Company (which at present is Mr. Parris H. Holmes, Jr.), or his authorized representative. Such assignments,
powers and duties may, from time to time, be modified by the Company, as