Document:

Exhibit
      10.2 Stonestreet,
      et al 3(a)(10) Settlement

    

    SETTLEMENT
      AGREEMENT AND RELEASE

    

    This
      Settlement Agreement and Release (the “Agreement”) is dated as of September 18,
      2006 and is made by and between Stonestreet Limited Partnership (“Stonestreet”)
      and Whalehaven Capital Fund Limited (“Whalehaven”) (collectively, the
“Plaintiffs” and/or “Investors”) and VoIP, Inc. ("VoIP").

     

    BACKGROUND

     

    WHEREAS,
      on or
      about July 5, 2005, Stonestreet and Whalehaven entered into a Subscription
      Agreement with VoIP wherein Stonestreet purchased a convertible note from VoIP
      with a face value of $287,500 and Whalehaven purchased a convertible note from
      VoIP with a face value of $230,000 (the “First Notes”);

     

    WHEREAS,
      on or
      about November 11, 2005, Stonestreet and Whalehaven entered into another
      Subscription Agreement with VoIP wherein Stonestreet purchased a convertible
      note from VoIP with a face value of $287,500 and Whalehaven purchased a
      convertible note from VoIP with a face value of $230,000 (the “Second Notes”)
      (the First Note and Second Note are collectively the “NOTES” and the
      Subscription Agreements and the documents and agreements delivered therewith
      are
      collectively the “Transaction Documents”);

     

    WHEREAS,
      VoIP
      had made payments towards the NOTES, and the balance owed under the NOTES to
      each investors was: $405,236 for Whalehaven and $506,545 for
      Stonestreet;

     

    WHEREAS,
      on or
      about September 18, 2006, Plaintiffs filed an action against VoIP entitled
      Stonestreet
      Limited Partnership and Whalehaven Capital Fund Limited v. VoIP,
      Inc.,
      Case
      No.: 2006 CA ______NC, (the “Action”) in the Circuit Court of the Twelfth
      Judicial Circuit, Sarasota County, Florida (the “Court”), whereby Plaintiffs
      asserted claims against VoIP alleging that VoIP was in breach of the NOTES
      and
      sought compensatory damages for the balance of the NOTES, collectively $911,781,
      together with interest due under the NOTES in the amount of $34,192, liquidated
      damages provided in the NOTES in the amount of $41,030, for a total amount
      of
      $987,003 (collectively the NOTES Claims”); 

     

    WHEREAS,
      VoIP,
      in its Answer, denied any and all wrongdoing and asserted affirmative
      defenses;

     

    WHEREAS,
      VoIP
      denies that it is liable for the amount sought in the Action, but acknowledges
      that it does not have sufficient cash to satisfy the claims made in the Action
      or to defend the Action, and VoIP seeks to resolve this Action with
      Plaintiffs;

     

    WHEREAS,
      VoIP
      currently only has the means to satisfy payment of the Investors’ bona fide
      claims through the issuance of authorized shares to Plaintiffs, pursuant to
      Section 3(a)(10) of the Securities Act of 1933 (hereinafter the “Act”) in
      exchange for a portion of Plaintiff’s Claims and by agreeing to restructuring
      the terms of the Plaintiffs’ investments in VoIP.

     

    WHEREAS,
      VoIP
      and Plaintiffs desire to resolve, settle, and compromise the Investor’s bona
      fide claims that they have asserted against VoIP, which arise out of or relate
      to the NOTES - claims totaling $$987,003, which is due and owing to Plaintiffs
      (hereinafter the “Compromised Amount”);

     

    With
      this
      background incorporated herein, the parties hereby agree to the following
      settlement:

     

    TERMS
      OF SETTLEMENT

    

    1.  CLAIMS.
      The
      Investors agrees to resolve their bona fide claims with VoIP for the Compromised
      Amount as follows:

     

    
      	a.  	
              The
                Parties agree that the amount due an owing under the NOTES shall
                be reset
                to the principal amount due under the NOTES in the amount of $911,781,
                together with interest due under the NOTES in the amount of $34,192
                and
                liquidated damages provided in the NOTES in the amount of $41,030,
                for a
                total amount of $987,003, as set forth for the Investors in Annex
                A
                hereto.

            

    

    
      	 	 

    

    
      	b.  	
              As
                soon as practicable following entry of an order by the Court in accordance
                with Paragraph 3 herein, Plaintiffs agree to surrender $498,460 of
                the
                NOTES Claims, on a pro rata basis, to VoIP in exchange for 1,917,153
                shares of VoIP’s common stock, par value $0.001 per share, through the
                issuance of freely trading securities issued pursuant to Section
                3(a)(10)
                of the Act (the “Settlement Shares”) as set forth in Annex A hereto. The
                effective conversion rate for the debt exchanged to resolve this
                partial
                claim is $0.26 per share.

            

    

    
      	 	 

    

    
      	c.  	
              Plaintiffs
                agree to retain the balance of their claims of their NOTES Claims,
                on a
                pro rata basis, as set forth in Annex A hereto, and VoIP agrees to
                reset
                the conversion rate for the remaining balance under the NOTES to
                $0.26 per
                share (the “Retained Notes”), which shall retain all rights set forth in
                the Transaction Documents.

            

    

    
      	 	 

    

    
      	d.  	
              VoIP
                agrees to amend its Certificate of Incorporation and take all steps
                necessary, including obtaining shareholder approval, to authorize
                at least
                an additional 1,879,011 shares of common stock and hold such shares
                in
                reserve for Plaintiffs’ benefit in connection with the balance of the
                Retained Notes retained by Plaintiffs herein on or before November
                30,
                2006. Further, if at any time after the date hereof VoIP shall determine
                to file with the Securities and Exchange Commission (the "SEC") a
                registration statement relating to an offering for its own account
                or the
                account of others under the Securities Act of 1933, as amended, of
                any of
                its equity securities (other than on Form S-4 or Form S-8 or their
                then
                equivalents relating to equity securities to be issued solely in
                connection with any acquisition of any entity or business or equity
                securities issuable in connection with stock option or other bona
                fide,
                employee benefit plans), the VoIP shall send to each Investor written
                notice of such determination and, the Company shall include in such
                registration statement 100% of the shares underlying the Retained
                Notes.
                In addition to the foregoing, VoIP shall file a registration statement,
                which includes 100% of the shares underlying the Retained Notes within
                thirty (30) days from the effectiveness of the proxy statement to
                authorize additional shares of the Company or by December 31, 2006,
                whichever is earlier. Further, VoIP shall use its best reasonable
                efforts
                to have such registration statement be declared effective by the
                SEC
                within one hundred and twenty (120) days from the effectiveness of
                the
                proxy statement to authorize additional shares of the Company or
                by March
                30, 2007, whichever is earlier.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.  INVESTORS’
      LEAK-OUT.
      Each of
      the Investors receiving Settlement Shares agrees, by and among themselves,
      that
      no Investor shall sell more than their pro-rata allocation of thirty percent
      (30%) of the daily trading volume in VoIP’s common stock, as set forth in Annex
      A hereto; provided however, any Investor may cumulate the daily trading volume
      in any given calendar week to compute their leak-out amount; provided further,
      that the aforementioned cumulative trading volume resets every Monday. This
      Investors’ Leak-Out provision does not apply to any sale of VoIP’s common stock
      at a price above $0.75 per share. 

     

    3.  INVESTORS’
      RETAINED RIGHTS IN REMAINING NOTES.
      With
      respect to the balance of the CLAIMS retained by Plaintiffs under the NOTES
      retained by Plaintiffs, as set forth in Annex A hereto, Plaintiffs retain all
      rights granted to them in the Transaction Documents that are not specifically
      waived in this Settlement Agreement and Release for the NOTES being retained
      by
      Plaintiffs including, but not limited to, security interests, indemnification,
      anti-dilution rights, registration rights, reservation of rights, the survival
      of VoIP’s representations, warranties, and undertakings.

     

    4.  FAIRNESS
      HEARING.
      Upon
      execution hereof, the Investors and VoIP agree, pursuant to 15 U.S.C.
§77(a)(10), to immediately submit the terms and conditions of this Agreement
      to
      the Court for a hearing on the fairness of such terms and conditions, for the
      issuance of an exemption from registration of the Settlement Shares and an
      Order
      approving the Agreement. VoIP avers it is a “reporting issuer” that files
      reports with the SEC under Section 13 of the Securities and Exchange Act of
      1934
      (the “Exchange Act”); VoIP avers it is current in all its filing required under
      the Exchange Act; and the Investors aver they have access to, and have accessed
      all such filings. In connection with such a fairness hearing, VoIP, the issuer
      of the securities, and the Investors, the proposed persons to whom the
      securities are to be issued, agree that the value of the Settlement Shares
      utilized to partially satisfy the Claims as set forth herein is fair and
      reasonable. This Agreement shall become binding upon the parties only upon
      entry
      of an order by the Court substantially in the form annexed hereto as Exhibit
      A
      (the “Order”).

     

    5.  NECESSARY
      ACTION.
      At all
      times after the execution of this Agreement and entry of the Order by the Court,
      each party hereto agrees to take or cause to be taken all such necessary action
      including, without limitation, the execution and delivery of such further
      instruments and documents, as may be reasonably requested by any party for
      such
      purposes or otherwise necessary to complete or perfect the transaction
      contemplated hereby.

     

    6.  RELEASES.
      Upon
      delivery of the Settlement Shares to the Investors and in consideration of
      the
      terms and conditions of this Agreement, and except for the obligations and
      representations arising or made hereunder or a breach hereof, the parties hereby
      release, acquit and forever discharge the other and each, every, and, all of
      their current and past officers, directors, shareholders, affiliated
      corporations, subsidiaries, agents, employees, representatives, attorneys,
      predecessors, successors and assigns (the “Released Parties”), of and from any
      and all claims, damages, causes of action, suits and costs, of whatever nature,
      character or description, whether known or unknown, anticipated or
      unanticipated, which the parties may now have or may hereafter have or claim
      to
      have against each other with respect to the partial claims satisfied herein
      through the issuance of the Settlement Shares, except that this Release
      specifically excludes third-party indemnification rights set forth in the
      Transaction Documents. Nothing herein shall be deemed to negate or affect the
      Investor's right and title to any securities heretofore issued to it by
      VoIP.

     

    7.  CONTINUING
      JURISDICTION.
      Simultaneously with the execution of this Agreement, the attorneys representing
      the parties hereto will execute a stipulation of dismissal substantially in
      the
      form annexed hereto as Exhibit B (the “Stipulation of Dismissal”), which shall
      be held by the Investors' counsel and filed with the Court after VoIP’s delivery
      of the Settlement Shares in accordance with paragraph 1 herein. In order to
      enable the Court to grant specific enforcement and other equitable relief in
      connection with this Agreement, (a) the parties consent to the jurisdiction
      of
      the Court for purposes of enforcing this Agreement and (b) each party to this
      Agreement expressly waives any contention that there is an adequate remedy
      at
      law or any like doctrine that might otherwise preclude injunctive relief to
      enforce this Agreement.

     

    8.  CONTINUING
      OBLIGATION.
      Both
      parties agree to use their best efforts to cooperate with the Court to cause
      the
      Order to be timely entered and agree that delays caused due to Court calendars
      shall not constitute a valid reason to void this Agreement.

     

    9.  INFORMATION.
      The
      Investors and VoIP each represent that prior to the execution of this Agreement,
      they have had the advice of counsel, namely, Robert E. Turffs, Esq. of Robert
      E.
      Turffs, P.A. for Plaintiffs and Michael J. Raterink, Esq. of Michael J.
      Raterink, P.A. for VoIP, they fully informed themselves of its terms, contents,
      conditions and effects, and that no promise or representation of any kind has
      been made to them except as expressly stated in this Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    10.  OWNERSHIP
      AND AUTHORITY.
      The
      Investors and VoIP represent and warrant that they have not sold, assigned,
      transferred, conveyed or otherwise disposed of any or all of any claim, demand,
      right or cause of action, relating to any matter which is covered by this
      Agreement, that each is the sole owner of such claim, demand, right or cause
      of
      action, and each has the power and authority and has been duly authorized to
      enter into and perform this Agreement and that this Agreement is a binding
      obligation of each, enforceable in accordance with its terms.

     

    11.  BINDING
      NATURE.
      This
      Agreement shall be binding on all parties executing this Agreement and their
      respective successors, assigns and heirs.

     

    12.  AUTHORITY
      TO BIND.
      Each
      party to this Agreement represents and warrants that the execution, delivery
      and
      performance of this Agreement and the consummation of the transaction provided
      in this Agreement have been duly authorized by all necessary action of the
      respective entity and that the person executing this Agreement on its behalf
      has
      the full capacity to bind that entity. Each party further represents and
      warrants that it has been represented by independent counsel of its choice
      with
      the negotiation and execution of this Agreement and that counsel has reviewed
      this Agreement.

     

    13.  SIGNATURES.
      This
      Agreement may be signed in counterparts and the Agreement, together with its
      counterpart signature pages, shall be deemed valid and binding on each party
      when duly executed by all parties. Facsimile signatures shall be deemed valid
      and binding for all purposes.

     

    14.  CHOICE
      OF LAW, ETC.
      Notwithstanding the place where this Agreement may be executed by either of
      the
      parties, or any other factor, all terms and provisions hereof shall be governed
      by and construed in accordance with the laws of the State of Florida, applicable
      to agreements made and to be fully performed in that State and without regard
      to
      principles of conflicts of law thereof. Any action brought to enforce, or
      otherwise arising out of this Agreement shall be brought only in the Circuit
      Court of the Twelfth Judicial Circuit sitting in the State of Florida, County
      of
      Sarasota.

     

    15.  INCONSISTENCY.
      In the
      event of any inconsistency between the terms of this Agreement and any other
      document executed in connection herewith, the terms of this Agreement shall
      control to the extent necessary to resolve such inconsistency.

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
      first indicated above.

     

    
      	 	 	 
	
            	By:  	 
	 	
              

              Stonestreet
                Limited Partnership

            

    

     

    
      	 	 	 
	 	By:  	 
	 	
              
Whalehaven
              Capital Fund
              Limited

    

     

    
      	 	 	 
	 	VOIP,
              INCORPORATED
	 
 	 
 	 
 
	 	By:  	 
	 	Its: 	
              
Chief
              Executive Officer

    

     

    
      
        
        

      

      
        3

        
          

        

      

       

    

    EXHIBIT
      A 

    IN
      THE CIRCUIT COURT OF THE

    TWELFTH
      JUDICIAL CIRCUIT IN AND

    FOR
      SARASOTA COUNTY, FLORIDA

    

    STONESTREET
      LIMITED

    PARTNERSHIP,    CASE
      NO.:

    WHALEHAVEN
      CAPITAL 

    FUND
      LIMITED,

    

    Plaintiffs,

     

    v.

    

    VOIP,
      INC.,

     

    Defendant.

    ___________________________/

    

    ORDER
      GRANTING APPROVAL OF SETTLEMENT AGREEMENT

    

    

    This
      matter having come on a hearing on the 15th day of September, 2006, to approve
      the Settlement Agreement and Release entered into as of September 18, 2006
      (the
“Settlement Agreement”) between Plaintiffs Stonestreet Limited Partnership and
      Whalehaven Capital Fund Limited (“Plaintiff”) and Defendant VoIP, Inc. (“VoIP”
and, collectively with Plaintiffs, the “Parties”), and the Court having held a
      hearing as to the fairness of the terms and conditions of the Settlement
      Agreement and being otherwise fully advised in the premises, the Court hereby
      finds as follows:

     

    1.  The
      Court
      has been advised that the parties intended that the sale of the Settlement
      Shares (as defined by the Settlement Agreement, and hereinafter, the “Settlement
      Shares”) to, and the resale of the Settlement Shares by, Plaintiffs within the
      United States of America, assuming satisfaction of all other applicable
      securities laws and regulations, will be exempt from registration under the
      Securities Act of 1933 (the “Securities Act”) in reliance upon Section 3(a)(10)
      of the Securities Act based upon this Court’s finding herein that the terms and
      conditions of the issuance of the Settlement Shares by VoIP to Plaintiffs are
      fair to Plaintiffs;

     

    2.  The
      hearing having been scheduled upon the consent of Plaintiffs and VoIP.
      Plaintiffs has had adequate notice of the hearing and Plaintiffs are the only
      parties to whom Settlement Shares will be issued pursuant to the Settlement
      Agreement;

     

    3.  The
      terms
      and conditions of the issuance of the Settlement Shares in exchange for the
      release of certain claims as set forth in the Settlement Agreement are fair
      to
      Plaintiffs, the only parties to whom the Settlement Shares will be
      issued;

     

    4.  The
      fairness hearing was open to Plaintiffs. Plaintiffs were represented by counsel
      at the hearing who acknowledged that adequate notice of the hearing was given
      and consented to the entry of this order.

     

    It
      is
      therefore ORDERED AND ADJUDGED that the Settlement Agreement is hereby approved
      as fair to the party to whom the Settlement Shares will be issued, within the
      meaning of Section 3(a)(10) of the Securities Act and that the sale of the
      Settlement Shares to, and the resale of the Settlement Shares in the United
      States of America by, Plaintiffs, assuming satisfaction of all other applicable
      securities laws and regulations, will be exempt from registration under the
      Securities Act.

    

    SO
      ORDERED, this____________day

    of
      September, 2006.

     

    ______________________________

    The
      Honorable___________________

     

    
      
        
        

      

      
        4

        
          

        

      

       

    

    EXHIBIT
      B

     

    IN
      THE CIRCUIT COURT OF THE

    TWELFTH
      JUDICIAL CIRCUIT IN AND

    FOR
      SARASOTA COUNTY, FLORIDA

    

    STONESTREET
      LIMITED

    PARTNERSHIP,    CASE
      NO.:

    WHALEHAVEN
      CAPITAL 

    FUND
      LIMITED,

    

    Plaintiffs,

     

    v.

    

    VOIP,
      INC.,

     

    Defendant.

    ___________________________/

    

    STIPULATION
      OF DISMISSAL

    

    IT
      IS HEREBY STIPULATED AND AGREED,
      by and
      between the undersigned, the attorneys of record for all parties to the
      above-entitled action, pursuant to the Florida Rules of Civil Practice and
      Procedure, that whereas no party hereto is an infant of incompetent person
      for
      whom a committee has been appointed or conservatee and no person not a party
      has
      an interest in the subject matter of the action, the above-entitled action
      be,
      and the same hereby is, discontinued with prejudice, each party to bear its
      own
      costs.

     

    This
      Stipulation may be filed without further notice with the Clerk of the
      Court.

    Dated:
      September ____, 2006

     

    
      
        	ROBERT E. TURFFS, P.A.	 	MICHAEL J. RATERINK,
                P.A.
	 	 	 	 	 
	By:	 	 	By:
                	 
	 	
                
                  

                

                Robert E. Turffs, Esq.

                1444 First Street, Suite B

                Sarasota, Florida 34236

                (941) 316-0111

                 

                 

                Attorneys for Plaintiff 

                Stonestreet Limited Partnership

                Whalehaven Capital Fund Limited

              	 	 	
                
                  

                

                Michael J. Raterink, Esq.

                Suite D4, P.O. Box 33 

                8051 North Tamiami Trail 

                Sarasota,
                  Florida 34243-2032

                (941)
                  359-6453

                 

                Attorneys for Defendant 

                VoIP,
                  Incorporated

              

      

    

       

      
        
          
          

        

        
          5Exhibit
      10.3 Cataldo
      Employment Agreement 

    

    EMPLOYMENT
      AGREEMENT

    

    This
      Employment Agreement is made and entered into by and between VoIP, Inc. (the
      "Company") and Anthony J. Cataldo ("Executive") as of September 14, 2007 (the
      "Effective Date").

    

    WHEREAS,
      the
      EMPLOYER is desirous of employing Executive, and Executive wishes to be employed
      by EMPLOYER in accordance with the terms and conditions set forth in this
      Agreement. 

    

    NOW,
      THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES AND OTHER
      GOOD
      AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, IT
      IS
      MUTUALLY AGREED AS FOLLOWS:

    

    1.
      Position and Duties:
      Executive shall be employed by the Company as its Executive
      Chairman

    ("Chairman")
      and Chief Executive Officer (“CEO”), reporting only to the Company's Board of
      Directors. As its Chairman and CEO, Executive agrees to devote the necessary
      business time, energy and skill to his duties at the Company, and will be
      permitted
      engage
      in outside consulting provided said consulting services do not interfere with
      Executive’s obligations to Company under the terms of this Agreement. Executive
      agrees to advise the Board of any outside Consulting Services, and further
      agrees that the Company’s Board of Directors shall make the sole determination
      of whether a proposed consulting activity would interfere with Executive’s
      obligations under this Agreement.
      These
      duties of Executive under this Agreement shall include all those duties
      customarily performed by an Executive Chairman as well as providing
      advice and consultation on general corporate matters, particularly related
      to
      shareholder and investor relations, assisting the Company with respect to
      raising equity and other financing for the Company, and other projects as may
      be
      assigned by the Company’s Board of Directors on an as needed basis.
      During
      the term of Executive's employment, Executive shall be permitted to serve on
      boards of directors of for-profit or not-for-profit entities provided such
      service does not adversely affect the performance of Executive's duties to
      the
      Company under this Agreement, or are in conflict with the interests of the
      Company.

    

    In
      addition to Executive’s appointment as Executive Chairman of the Board of
      Directors of the Company, Executive shall be nominated to stand for election
      to
      the Board of Directors at the next scheduled shareholders meeting and shall
      also
      be entitled to name an additional designee to be elected to the Board at the
      next shareholder meeting of the Company. As a member of the Company's Board,
      Executive shall continue to be subject to the provisions of the Company's bylaws
      and all applicable general corporation laws relative to his position on the
      Board. In addition to the Company's bylaws, as a member of the Board, Executive
      and his designee shall also be subject to the statement of powers, both specific
      and general, set forth in the Company's Articles of Incorporation.

    

    2.
      Term of Employment:
      This
      Agreement shall remain in effect for a period of three years from the Effective
      Date, and thereafter will automatically renew for successive one year periods
      unless either party provides ninety days' prior notice of termination. In the
      event the Company elects to terminate the Agreement, such termination shall
      be
      considered to be an Involuntary Termination, and Executive shall be provided
      benefits as provided in this Agreement. Upon the termination of Executive's
      employment for any reason, neither Executive nor Company shall have any further
      obligation or liability under this Agreement to the other, except as set forth
      below.

    

    3.
      Compensation:
      Executive shall be compensated by the Company for his services as
      follows:

    

      
(a)
      Base Salary:
      As
      Executive Chairman, Executive shall be paid a monthly Base Salary of
$20,833.33
      per month ($250,000.00 on an annualized basis), subject to applicable
      withholding, in accordance with the Company's normal payroll procedures.
      Executive's salary shall be reviewed on at least an annual basis and may be
      adjusted as appropriate, but in no event shall it be less. In the event of
      such
      an adjustment, that amount shall become Executive's Base Salary. Furthermore,
      during the term of this Agreement, in no event shall Executive's compensation
      be
less
      than
      any other officer or employee of the Company or any subsidiary.

    

      (b)
      Benefits:
      Executive shall have the right, on the same basis as other senior executives
      of
      the Company, to participate in and to receive benefits under any of the
      Company's employee benefit plans, as such plans may be modified from time to
      time, and provided that in no event shall Executive receive less than (4) four
      weeks paid vacation per annum and (6) six paid sick/five paid personal days
      per
      annum. Executive will also be entitled to a monthly vehicle allowance of
      $1,500.00.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     
(c)
      Performance Bonus:
      Executive shall have the opportunity to earn a performance bonus in accordance
      with the Company's Performance Bonus Plan; as such plan may be modified over
      time. Pursuant to the Performance Bonus Plan, Executive will have a target
      bonus
      for meeting established objective performance objectives. The Bonus shall
      consist of performance-based stock options which and shall be included in the
      Company's Employee Stock Option Plan. In the event the performance criteria
      and
      formal Bonus Plan is not in effect at any time during the term of this
      Agreement, then during said time that the Bonus Plan is not in effect, the
      Company will pay a $15,000 cash bonus per quarter to Executive until the
      Performance Bonus Plan is in place.

    

     
 (d)
      Stock Options:
      Executive shall receive 10,000,000 stock options (the “Options”) to purchase
      10,000,000 shares of the Company’s common stock, par value $0.001 (the “Common
      Stock”). The Options are exercisable at $.01 per share and
      vest as
      of the date this agreement is executed by both parties and are exercisable
      for a
      period of five years from the effective date of this Agreement. Additionally,
      the Options are subject to a cashless exercise provision whereby payment upon
      exercise of the Options may be made at the option of the Executive either in
      (i) cash, wire transfer or by certified or official bank check payable to
      the order of the Company equal to the applicable aggregate exercise price,
      (ii)
      by delivery of Common Stock issuable upon exercise of the Options in accordance
      with Section (A) below (“Cashless Exercise”) or (iii) by a
      combination of any of the foregoing methods (in accord with Section (A) below),
      for the number of shares of Common Stock specified in such form (as such
      exercise number shall be adjusted to reflect any adjustment in the total number
      of shares of Common Stock issuable to the Executive per the terms of the
      Options) and the Executive shall thereupon be entitled to receive the number
      of
      duly authorized, validly issued, fully paid and nonassessable shares of Common
      Stock determined as provided herein.

    

    (A) If
      the
      Fair Market Value of one share of Common Stock is greater than the exercise
      price (at the date of calculation as set forth below) and no Registration
      Statement relating to the shares of Common Stock underlying the Options is
      in
      effect, in lieu of exercising the Options for cash, the Executive may elect
      to
      receive shares equal to the value (as determined below) of the Option (or the
      portion thereof being cancelled) by surrender of the Option at the principal
      office of the Company together with the properly endorsed notice of cashless
      exercise in which event the Company shall issue to the Executive a number of
      shares of Common Stock computed using the following formula:

     

    X=Y
      (A-B)

    A

     

    Where X= the
      number of shares of Common Stock to be issued to the Executive

     

    Y= the
      number of shares of Common Stock purchasable under the Option or, if only a
      portion of the Option is being exercised, the portion of the Option being
      exercised (at the date of such calculation)

     

    A= the
      Fair
      Market Value of one share of the Company’s Common Stock (at the date of such
      calculation)

     

    B= Exercise
      Price (as adjusted to the date of such calculation)

    

    The
      Company grants Executive cost free piggyback registration rights for the shares
      underlying the Options and will use its best efforts to first include the
      options in an existing approved option benefits plan and register the underlying
      shares in a Form S-8 Registration statement, or thereafter in the next
      registration statement filed by the Company. 

    

    It
      is
      further agreed that Executive will be entitled to receive additional options
      from time to time during the term of the within Agreement to assure that
      Executive has the right to exercise options to maintain beneficial ownership
      of
      the Company’s Common Stock in the equivalent of a minimum of 5% (five percent)
      of the issued and outstanding shares of Common Stock. For the avoidance of
      doubt
      regarding the issuance of additional options to Executive under this Agreement,
      said additional options will contain the same terms and conditions as the
      Options awarded under this Agreement. The Company will issue any additional
      Options to Executive pursuant to this provision within ten (10) days of the
      end
      of a fiscal quarter.

    

     
(e)
      Expenses:
      Company
      shall reimburse Executive for reasonable travel, lodging, entertainment and
      meal
      expenses incurred in connection the performance of services within this
      Agreement. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

      
  (f)
      Travel: Executive
      shall travel as necessary from time to time to satisfy his performance and
      responsibilities under this Agreement.

    

      (g)
      Home and Satellite Office:
      Executive shall be reimbursed for expenses associated with maintaining a home
      office. (i.e. Bandwidth, VPN). Additionally, should Executive determine it
      necessary for the performance of his responsibilities under this Agreement
      that
      he have a satellite office or the like, the Company will seek to accommodate
      Executive by providing a suitable office at a location so determined by
      Executive.

    

    4.
      Effect of Termination of Employment:

    

       (a)
      Voluntary Termination, Death or Disability:
      In the
      event of Executive's voluntary termination from employment with the Company,
      Executive shall be entitled to no compensation or benefits from the Company
      other than those earned under Section 3 through the date of his termination
      and,
      in the case of each stock option, restricted stock award or other Company
      stock-based award granted to Executive, the extent to which such awards are
      vested through the date of his termination. In the event that Executive's
      employment terminates as a result of his death or disability, Executive shall
      be
      entitled to a pro-rata
      share of the Target Bonus (presuming performance meeting, but not exceeding,
      target performance goals) in addition to all compensation and benefits earned
      under Section 3 through the date of termination.

    

       (b)
      Termination for Cause:
      If
      Executive's employment is terminated by the Company for Cause, Executive shall
      be entitled to no compensation or benefits from the Company other than those
      earned under Section 3 through the date of his termination and, in the case
      of
      each stock option, restricted stock award or other Company stock-based award
      granted to Executive, the extent to which such awards are vested through the
      date of his termination. In the event that the

    Company
      terminates Executive's employment for Cause, the Company shall provide written
      notice to Executive of that fact prior to, or concurrently with, the termination
      of employment. Failure to provide written notice that the Company contends
      that
      the termination is for Cause shall constitute a waiver of any contention that
      the termination was for Cause, and the termination shall be irrebuttably
      presumed to be an Involuntary Termination.

    

      (c)
      Involuntary Termination During Change in Control Period:
      If
      Executive's employment with the Company terminates as a result of a Change
      in
      Control Period Involuntary Termination, then, in addition to any other benefits
      described in this Agreement, Executive shall receive the following:

    

        (i)
      all
      compensation and benefits earned under Section 3 through the date of Executive's
      termination of employment;

    

        (ii)
      a lump
      sum payment equivalent to the greater of (a) the bonus paid under the
      Performance Bonus Plan for the year immediately prior to the year in which
      the
      Change in Control occurred and (b) the Target Bonus under the Performance Bonus
      Plan in effect immediately prior to the year in which the Change in Control
      occurs;

    

        (iii)
      a lump
      sum payment equivalent to the remaining Base Salary (as it was in effect
      immediately prior to the Change in Control) due Executive from the date of
      Involuntary Termination to the end of the term of this Agreement or six (6)
      months Base Salary, whichever is the greater; and

    

        (iv)
      reimbursement for the cost of medical, life, disability insurance coverage
      at a
      level equivalent to that provided by the Company for a period expiring upon
      the
      earlier of: (a) one year; or (b) the time Executive begins alternative
      employment wherein said insurance coverage is available and offered to
      Executive. It shall be the obligation of Executive to inform the Company that
      new employment has been obtained.

    

    Unless
      otherwise agreed to by Executive at the time of Involuntary Termination, the
      amount payable to Executive under subsections (i) through (iii), above, shall
      be
      paid to Executive in a lump sum within thirty (30) days following Executive's
      termination of employment. The amounts payable under subsection (iv) shall
      be
      paid monthly during the reimbursement period.

    

       (d)
      Termination Without Cause in the Absence of Change in Control:
In
      the
      event that Executive's employment terminates as a result of a Non Change in
      Control Period Involuntary Termination, then Executive shall receive the
      following benefits:

    

        (i)
      all
      compensation and benefits earned under Section 3 through the date of the
      Executive's termination of employment;

    

        (ii)
      a lump
      sum payment equivalent to the greater of (a) the bonus paid under the
      Performance Bonus Plan for the year immediately prior to the year in which
      the
      Change in Control occurred and (b) the Target Bonus under the Performance Bonus
      Plan in effect immediately prior to the year in which the Change in Control
      occurs;

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

        (iii)
      a lump
      sum payment equivalent to the remaining Base Salary (as it was in effect
      immediately prior to the Change in Control) due Executive to the end of the
      term
      of this Agreement or six (6) months Base Salary, whichever is the greater;
      and

    

        (iv)
      reimbursement for the cost of medical, life and disability insurance coverage
      at
      a level equivalent to that provided by the Company for a period of the earlier
      of: (a) one year; or (b) the time Executive begins alternative employment
      wherein said insurance coverage is available and offered to Executive. It shall
      be the obligation of Executive to inform the Company that new employment has
      been obtained.

    

    Unless
      otherwise agreed to by Executive, the amount payable to Executive under
      subsections (i) through (iii) above shall be paid to Executive in a lump sum
      within thirty (30) days following Executive's termination of employment. The
      amounts payable under subsection (iv) shall be paid monthly during the
      reimbursement period.

    

        
       (e)
      Resignation with Good Reason During Change in Control Period:
If
      Executive resigns his employment with the Company as a result of a Change in
      Control Period Good Reason, then, in addition to any other benefits described
      in
      this Agreement, Executive shall receive the following.

    

        (i)
      all
      compensation and benefits earned under Section 3 through the date of the
      Executive's termination of employment;

    

        (ii)
      a lump
      sum payment equivalent to the greater of (a) the bonus paid under the
      Performance Bonus Plan for the year immediately prior to the year in which
      the
      Change in Control occurred and (b) the Target Bonus under the Performance Bonus
      Plan in effect immediately prior to the year in which the Change in Control
      occurs ;

    

        (iii)
      a lump
      sum payment equivalent to the remaining Base Salary (as it was in effect
      immediately prior to the Change in Control) due Executive from the date of
      Involuntary Termination to the end of the term of this Agreement or six (6)
      months Base Salary, whichever is the greater; and

    

        (iv)
      reimbursement for the cost of medical, life and disability insurance coverage
      at
      a level equivalent to that provided by the Company for a period of the earlier
      of: (a) one year; or (b) the time Executive begins alternative employment
      wherein said insurance coverage is available and offered to Executive. It shall
      be the obligation of Executive to inform the Company that new employment has
      been obtained.

    

    Unless
      otherwise agreed to by Executive, the amount payable to Executive under
      subsections (i) through (iii) above shall be paid to Executive in a lump sum
      within thirty (30) days following the Executive's
      termination of employment. The amounts payable under subsection (iv) shall
      be
      paid monthly during the reimbursement period.

    

        
      (f)
      Resignation with Good Reason in the Absence of Change in
      Control:
      If
      Executive resigns his employment with the Company as a result of a Non Change
      in
      Control Period Good Reason, then, in addition to any other benefits described
      in
      this Agreement, Executive shall receive the following.

    

        (i)
      all
      compensation and benefits earned under Section 3 through the date of the
      Executive's termination of employment;

    

        (ii)
      a lump
      sum payment equivalent to the greater of (a) the bonus paid under the
      Performance Bonus Plan for the year immediately prior to the year in which
      the
      Change in Control occurred and (b) the Target Bonus under the Performance Bonus
      Plan in effect immediately prior to the year in which the Change in Control
      occurs;

    

        (iii)
      a lump
      sum payment equivalent to the remaining Base Salary (as it was in effect
      immediately prior to the Change in Control) due Executive from the date of
      Involuntary Termination to the end of the term of this Agreement or six (6)
      months Base Salary, whichever is the greater; and

    

        (iv)
      reimbursement for the cost of medical, life and disability insurance coverage
      at
      a level equivalent to that provided by the Company for a period of the earlier
      of: (a) one year; or (b) the time Executive begins alternative employment
      wherein said insurance coverage is available and offered to Executive. It shall
      be the obligation of Executive to inform the Company that new employment has
      been obtained.

    

    Unless
      otherwise agreed to by Executive, the amount payable to Executive under
      subsections (i) through (iii) above shall be paid to Executive in a lump sum
      within thirty (30) days following the Executive's
      termination of employment. The amounts payable under subsection (iv) shall
      be
      paid monthly during the reimbursement period.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

          (g)
      Resignation from Positions:
      In the
      event that Executive's employment with the Company is terminated for any reason,
      on the effective date of the termination Executive shall simultaneously resign
      from each position he holds on the Board and/or the Board of Directors of any
      of
      the Company's affiliated entities and any position Executive holds as an officer
      of the Company or any of the Company's affiliated entities.

    

    5.
      Certain Definitions:
      For the
      purpose of this Agreement, the following capitalized terms shall have the
      meanings set forth below:

    

     
(a)
      "Cause" shall mean any of
      the following occurring on or after the date of this Agreement :

    

        (i)
      Executive's theft, dishonesty, breach of fiduciary duty for personal profit,
      or
      falsification of any employment or Company record;

    

        (ii)
      Executive's willful violation of any law, rule, or regulation (other than
      traffic violations, misdemeanors or similar offenses) or final cease-and-desist
      order, in each case that involves moral turpitude;

    

        (iii)
      Executive's intentional failure to perform stated duties, provided Executive
      has
      not cured such failure following 20 days prior written notice of such
      failure;

    

        (iv)
      Executive's improper disclosure of the Company's confidential or proprietary
      information;

    

        (v)
      any
      material breach by Executive of the Company's Code of Professional Conduct,
      which breach shall be deemed "material" if it
      results
      from an intentional act by Executive and has a material detrimental effect
      on
      the Company's reputation or business; or

    

        (vi)
      any
      material breach by Executive of this Agreement, which breach, if curable, is
      not
      cured within thirty (30) days following written notice of such breach from
      the
      Company.

    

        
      (b) "Change in Control" shall mean the occurrence of any of the following
      events:

    

        (i)
      (X) any
      "person" (as such term is used in Section 13 (d) and 14 (d) of the Securities
      Exchange Act of 1934, as amended) (other than Executive, Shawn Lewis or Stephen
      Ivester) becomes the "beneficial owner" (as defined in Rule 13d-3 under said
      Act), directly or indirectly, of securities of the Company representing more
      than fifty percent (50%) of the total combined voting power represented by
      the
      Company's then outstanding voting securities other than the acquisition of
      the
      Company's Common Stock by a Company-sponsored employee benefit plan or through
      the issuance of shares sold directly by the Company to a single acquirer, or
      (Y)
      any "person" (as such term is used in Section 13 (d) and 14 (d) of the
      Securities Exchange Act of 1934, as amended) becomes the "beneficial owner"
      (as
      defined in Rule 13d-3 under said Act) directly or indirectly, of securities
      of
      the Company representing less than fifty percent (50%) of the total combined
      voting power represented by the Company's then outstanding voting securities,
      but in connection with the person's acquisition of securities the person
      acquires the right to terminate the employment of all or a portion of the
      Company's management team;

    

        (ii)
      the
      Company is party to a merger or consolidation which results in the holders
      of
      the voting securities of the Company outstanding immediately prior thereto
      failing to retain immediately after such merger or consolidation direct or
      indirect beneficial ownership of more than fifty percent (50%) of the total
      combined voting power of the securities entitled to vote generally in the
      election of directors of the Company or the surviving entity outstanding
      immediately after such merger of consolidation.

    

        (iii)
      a
      change in the composition of the Board occurring within a period of twenty-four
      (24) consecutive months, as a result of which fewer than a majority of the
      directors are Incumbent Directors;

    

        (iv)
      effectiveness of an agreement for the sale, lease or disposition by the Company
      of all or substantially all of the Company's assets; or

    

        (v)
      a
      liquidation or dissolution of the Company.

    

      (c)
      "Change in Control
      Period" shall mean the period commencing on the date
      sixty (60) days prior to the date of consummation of the Change of Control
      and
      ending sixty (60) days following of same date of consummation of the Change
      of
      Control..

    

      (d)
      "Change in Control
      Period Good Reason" shall mean Executive's resignation for any of the following
      conditions, first occurring during a Change in Control Period and occurring
      without Executive's written consent:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

        (i)
      a
      decrease in Executive's Base Salary and/or a decrease in Executive's Target
      Bonus (as a multiple of Executive's Base Salary) under the Performance Bonus
      Plan or employee benefits other than as part of any across-the-board reduction
      applying to all senior executives and not resulting in those senior executives
      receiving lesser benefits than similarly situated executives of an
      acquirer;

    

        (ii)
      a
      material, adverse change in Executive's title, authority, responsibilities,
      as
      measured against Executive's title, authority, responsibilities or duties
      immediately prior to such change.

    

        (iii)
      a
      change in the Executive's ability to maintain his principal workplace at
      multiple or satellite offices;

    

        (iv)
      any
      material breach by the Company of any provision of this Agreement, which breach
      is not cured within thirty (30) days following written notice of such breach
      from Executive;

    

        (v)
      any
      failure of the Company to obtain the assumption of this Agreement by any of
      the
      Company's successors or assigns by purchase, merger, consolidation, sale of
      assets or otherwise.

    

        (vi)
      any
      purported termination of Executive's employment for "material breach of
      contract" which is purportedly effected without providing the "cure" period,
      if
      applicable, described in Section 6 (a)(iii) or (vi), above.

    

    The
      effective date of any Change in Control Period Involuntary Termination shall
      be
      the date of notification to the Executive of the termination of employment
      by
      the Company or the date of notification to the Company of the resignation from
      employment by the Executive for Change in Control Period Good
      Reason.

    

         
      (e) "Non Change in Control Period Good Reason" shall mean the Executive's
      resignation within six months of any of the following conditions first occurring
      outside of a Change in Control Period and occurring without Executive's written
      consent:

    

        (i)
      a
      decrease in Executive's total cash compensation opportunity (adding Base Salary
      and Target Bonus) of greater than ten percent (10%);

    

        (ii)
      a
      material, adverse change in Executive's title, authority, responsibilities
      or
      duties, as measured against Executive's title, authority, responsibilities
      or
      duties immediately prior to such change;

    

        (iii)
      any
      material breach by the Company of a provision of this Agreement, which breach
      is
      not cured within thirty (30) days following written notice of such breach from
      Executive;

     

    (iv)
      any
      change in the Executive's ability to maintain his principal workplace at
      multiple or satellite offices;

    

        (v)
      any
      purported termination of Executive's employment for "material breach of
      contract" which is purportedly effected without providing the "cure" period,
      if
      applicable, described in Section 6 (a) (iii) or (vi), above.

    

    The
      effective date of any Non Change in Control Period Involuntary Termination
      shall
      be the date of notification to the Executive of the termination of employment
      by
      the Company or the date of notification to the Company of the resignation from
      employment by the Executive for Non Change in Control Period Good
      Reason.

    

        (f)
      "Incumbent Directors" shall mean members of the Board who either (a) are members
      of the Board as of the date hereof, or (b) are elected, or nominated for
      election, to the Board with the affirmative vote of at least a majority of
      the
      Incumbent Directors at the time of such election or nomination (but shall not
      include an individual whose election or nomination is in connection with an
      actual or threatened proxy contest relating to the election of members of the
      Board).

    

        (g)
      "Change
      in Control Period Involuntary Termination" shall mean during a Change in Control
      Period the termination by the Company of Executive's employment with the Company
      for any reason other than Cause, Executive's death or Executive's Disability;
      or

    

        (h)
      "Non
      Change in Control Period Involuntary Termination" shall mean outside a Change
      in
      Control Period the termination by the Company of Executive's employment with
      the
      Company for any reason other than Cause, Executive's death or Executive's
      disability.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.
      Dispute Resolution:
      In the
      event of any dispute or claim relating to or arising out of this Agreement
      (including, but not limited to, any claims of breach of contract, wrongful
      termination or age, sex, race or other discrimination), Executive and the
      Company agree that all such disputes shall be fully addressed and finally
      resolved by (1) binding arbitration conducted by the

    American
      Arbitration Association in New York City, in the State of New York in accordance
      with its National Employment Dispute Resolution rules or (2) in any federal
      or
      state court located in New York, New York. In connection with any such
      arbitration, the Company shall bear all costs not otherwise born by a plaintiff
      in a court proceeding. The Company agrees that any decisions of the Arbitration
      Panel will be binding and enforceable in any state that the Company conducts
      the
      operation of its business.

    

    7.
      Attorneys' Fees:
      The
      prevailing party shall be entitled to recover from the losing party its
      attorneys' fees and costs incurred in any action brought to enforce any right
      arising out of this Agreement.

    

    8.
      Restrictive Covenants:

    

         
      (a)
      Nondisclosure.
      During
      the Term and following termination of the Executive's employment with the
      Company, Executive shall not divulge, communicate,
      use to the detriment of the Company or for the benefit of any other person
      or
      persons, or misuse in any way, any Confidential Information (as hereinafter
      defined) pertaining to the business of the Company. Any Confidential Information
      or data now or hereafter acquired by the Executive with respect to the business
      of the Company (which shall include, but not be limited to, confidential
      information concerning the Company's financial condition, prospects, technology,
      customers, suppliers, methods of doing business and promotion of the Company's
      products and services) shall be deemed a valuable, special and unique asset
      of
      the Company that is received by the Executive in confidence and as a fiduciary.
      For purposes of this Agreement "Confidential Information" means information
      disclosed to the Executive or known by the Executive as a consequence of or
      through his employment by the Company (including information conceived,
      originated, discovered or developed by the Executive) prior to or after the
      date
      hereof and not generally known or in the public domain, about the Company or
      its
      business. Notwithstanding the foregoing, nothing herein shall be deemed to
      restrict the Executive from disclosing Confidential Information to the extent
      required by law or by any court.

    

       
       (b)
      Non-Competition.
      The
      Executive shall not, while employed by the Company and for a period of one
      year
      following the Date of Termination for Cause, or Resignation without Good Reason,
      engage or participate, directly or indirectly (whether as an officer, director,
      employee, partner, consultant, or otherwise), in any business that manufactures,
      markets or sells products that directly competes with any product of the Company
      that is significant to the Company's business based on sales and/or
      profitability of any such product as of the date of termination of Executive's
      employment with the Company. Nothing herein shall prohibit Executive from being
      a passive owner of less than 5 % stock of any entity directly engaged in a
      competing business.

    

       
       
      (c) Property Rights; Assignment of Inventions.
      With
      respect to information, inventions and discoveries or any interest in any
      copyright and/or other property right developed, made or conceived of by
      Executive, either alone or with others, during his employment by Employer
      arising out of such employment or pertinent to any field of business or research
      in which, during such employment, Employer is engaged or (if such is known
      to or
      ascertainable by Executive) is considering engaging, Executive hereby
      agrees:

    

        (i)
      that all
      such information, inventions and discoveries or any interest in any copyright
      and/or other property right, whether or not patented or patentable, shall be
      and
      remain the exclusive property of the Employer;

    

        (ii)
      to
      disclose promptly to an authorized representative of Employer all such
      information, inventions and discoveries or any copyright and/or other property
      right and all information in Executive's possession as to possible applications
      and uses thereof;

    

        (iii)
      not to
      file any patent application relating to any such invention or discovery except
      with the prior written consent of an authorized officer of Employer (other
      than
      Executive);

    

        (iv)
      that
      Executive hereby waives and releases any and all rights Executive may have
      in
      and to such information, inventions and discoveries, and hereby assigns to
      Executive and/or its nominees all of Executive's
      right,
      title and interest in them, and all Executive's right, title and interest in
      any
      patent, patent application, copyright or other property right based thereon.
      Executive hereby irrevocably designates and appoints the Company and each of
      its
      duly authorized officers and agents as his agent and attorney-in-fact to act
      for
      him and on his behalf and in his stead to execute and file any document and
      to
      do all other lawfully permitted acts to further the prosecution, issuance and
      enforcement of any such patent, patent application, copyright or other property
      right with the same force and effect as if executed and delivered by Executive;
      and 

    

        (v)
      at the
      request of the Company, and without expense to Executive, to execute such
      documents and perform such other acts as Employer deems necessary or
      appropriate, for Employer to obtain patents on such inventions in a jurisdiction
      or jurisdictions designated by Employer, and to assign to Employer or its
      designee such inventions and any and all patent applications and patents
      relating thereto.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    9.
      General:

    

        
       (a)
      Successors and Assigns:
      The
      provisions of this Agreement shall inure to the benefit of and be binding upon
      the Company, Executive and each and all of their respective heirs, legal
      representatives, successors and assigns. The duties, responsibilities and
      obligations of Executive under this Agreement shall be personal and not
      assignable or delegable by Executive in any manner whatsoever to any person,
      corporation, partnership, firm, company, joint venture or other entity.
      Executive may not assign, transfer, convey, mortgage, pledge or in any other
      manner encumber the compensation or other benefits to be received by him or
      any
      rights which he may have pursuant to the terms and provisions of this
      Agreement.

    

        
      (b)
      Amendments; Waivers: No
      provision of this Agreement shall be modified, waived or discharged unless
      the
      modification, waiver or discharge is agreed to in writing and signed by
      Executive and by an authorized officer of the Company. No waiver by either
      party
      of any breach of, or of compliance with, any condition or provision of this
      Agreement by the other party shall be considered a waiver of any other condition
      or provision or of the same condition or provision at another time.

    

        
      (c)
      Notices:
      Any
      notices to be given pursuant to this Agreement by either party may be effected
      by personal delivery or by overnight delivery with receipt requested. Mailed
      notices shall be addressed to the parties at the addresses stated below, but
      each party may change its or his/her address by written notice to the other
      in
      accordance with this subsection (c).Mailed notices to Executive shall be
      addressed as follows:

    

    Anthony
      J. Cataldo

    1100
      Hardman Avenue

    Napa,
      CA
      94558

    

    Mailed
      notices to the Company shall be addressed as follows:

    

    Chief
      Executive Officer

    VoIP,
      Inc.

    12330
      SW
      53rd Street, Suite 712

    Cooper
      City, Florida 33330

    

        
       (d)
      Entire Agreement:
      This
      Agreement constitutes the entire employment agreement between Executive and
      the
      Company regarding the terms and conditions of his employment, with the exception
      of (a) the agreement described in Section 7 and (b) any stock option, restricted
      stock or other Company stock-based award agreements between Executive and the
      Company to the extent not modified by this Agreement. This Agreement (including
      the documents described in (a) and (b) herein) supersedes all prior
      negotiations, representations or agreements between Executive and the Company,
      whether written or oral, concerning Executive's employment by the
      Company.

    

       
       (e)
      Withholding Taxes:
      All
      payments made under this Agreement shall be subject to reduction to reflect
      taxes required to be withheld by law.

    

      
       
      (f) Counterparts: This
      Agreement may be executed by the Company and Executive in counterparts, each
      of
      which shall be deemed an original and which together shall constitute one
      instrument.

    

       
       (g)
      Headings:
      Each and
      all of the headings contained in this Agreement are for reference purposes
      only
      and shall not in any manner whatsoever affect the construction or interpretation
      of this Agreement or be deemed a part of this Agreement for any purpose
      whatsoever.

    

        
      (h) Savings Provision:
      To the
      extent that any provision of this Agreement or any paragraph, term, provision,
      sentence, phrase, clause or word of this Agreement shall be found to be illegal
      or unenforceable for any reason, such paragraph, term, provision, sentence,
      phrase, clause or word shall be modified or deleted in such a manner as to
      make
      this Agreement, as so modified, legal and enforceable under applicable laws.
      The
      remainder of this Agreement shall continue in full force and
      effect.

    

       
       (i)
      Construction:
      The
      language of this Agreement and of each and every paragraph, term and provision
      of this Agreement shall, in all cases, for any and all purposes, and in any
      and
      all circumstances whatsoever be construed as a whole, according to its fair
      meaning, not strictly for or against Executive or the Company, and with no
      regard whatsoever to the identity or status of any person or persons who drafted
      all or any portion of this Agreement.

    

      
       (j)
      Further Assurances:
      From
      time to time, at the Company's request and without further consideration,
      Executive shall execute and deliver such additional documents and take all
      such
      further action as reasonably requested by the
      Company to be necessary or desirable to make effective, in the most expeditious
      manner possible, the terms of this Agreement and to provide adequate assurance
      of Executive's due performance hereunder.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

       
 (k)
      Governing Law: Executive
      and the Company agree that this Agreement shall be interpreted in accordance
      with and governed by the laws of the State of New York.

    

        
      (l)
      Board Approval:
      The
      Company warrants to Executive that the Board of Directors of the Company has
      ratified and approved the within Agreement, and that the Company will cause
      the
      appropriate disclosure filing to be made with the Securities and Exchange
      Commission in a timely manner.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date and
      year written below.

     

    
      	 	 	 	 
	September
              14,
              2006	 	 	/s/ Anthony
              J. Cataldo
	
            	 	 	
              
Anthony
              J. Cataldo

    

    
       

      
        	September
                14,
                2006	 	
                VoIP,
                  Inc.

                 

              
	 	 	By:	
                /s/ Shawn
                  Lewis

                
                  

                

              

      

    

     

    
      
        
        

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]