Document:

EXHIBIT 10.7

                               GUARANTY AGREEMENT

1.    Identification.

      This Guaranty Agreement (the "Guaranty"), dated as of July 5, 2005, is
entered into by and between Voipsolutions, a Florida corporation, eGlobalphone,
a Florida corporation, Caerus, Inc., a Delaware corporation, Vox Consulting
Group, Inc. d/b/a Voipamericas, a Florida corporation, VCG Technologies d/b/a
DTNet Technologies, Inc., a Florida corporation, Volo Communications, Inc., a
Delaware corporation, Caerus Billing, Inc., a Delaware corporation, Caerus
Networks, Inc., a Delaware corporation, VoiceOne Communications, LLC, a Delaware
Limited Liability corporation (each referred to as "Guarantor" and collectively
"Guarantors" herein) and Barbara Mittman, as collateral agent acting in the
manner and to the extent described in the Collateral Agent Agreement defined
below (the "Collateral Agent"), for the benefit of the parties identified on
Schedule A hereto (each a "Lender" and collectively, the "Lenders").

2.    Recitals.

      2.1. Guarantors are direct or indirect wholly-owned subsidiary of VoIP,
Inc., a Texas corporation ("VoIP"). The Lenders have made and are making loans
to VoIP (the "Loans"). Guarantor will obtain substantial benefit from the
proceeds of the Loans.

      2.2. The Loans are and will be evidenced by certain convertible promissory
notes (each a "Convertible Note" and collectively, the "Convertible Notes")
issued by VoIP on or about the date of this Agreement pursuant to subscription
agreements ("Subscription Agreements"). The Convertible Notes are further
identified on Schedule A hereto and were and will be executed by VoIP as
"Borrower" or "Debtor" for the benefit of each Lender as the "Holder" or
"Lender" thereof.

      2.3. In consideration of the Loans made by Lenders to VoIP and for other
good and valuable consideration, and as security for the performance by VoIP of
its obligations under the Convertible Notes and as security for the repayment of
the Loans and all other sums due from Debtor to Lenders arising under the
Convertible Notes, Subscription Agreements, Collateral Agent Agreement and any
other agreement between or among them relating to the foregoing (collectively,
the "Obligations"), Guarantor, for good and valuable consideration, receipt of
which is acknowledged, has agreed to enter into this Agreement with the
Collateral Agent, for the benefit of the Lenders. Obligations include all future
advances by Lenders to VoIP made by all Lenders on substantially the same terms
and in proportion to their interests in the Obligations.

      2.4. The Lenders have appointed Barbara Mittman as Collateral Agent
pursuant to that certain Collateral Agent Agreement dated at or about July 5,
2005 ("Collateral Agent Agreement"), among the Lenders and Collateral Agent.

3.    Guaranty.

<PAGE>

      3.1. Guaranty. Guarantors hereby unconditionally and irrevocably guarantee
jointly and severally the punctual payment, performance and observance when due,
whether at stated maturity, by acceleration or otherwise, of all of the
Obligations now or hereafter existing, whether for principal, interest
(including, without limitation, all interest that accrues after the commencement
of any insolvency, bankruptcy or reorganization of VoIP, whether or not
constituting an allowed claim in such proceeding), fees, commissions, expense
reimbursements, liquidated damages, indemnifications or otherwise (such
obligations, to the extent not paid by VoIP being the "Guaranteed Obligations"),
and agrees to pay any and all costs, fees and expenses (including reasonable
counsel fees and expenses) incurred by Collateral Agent and the Lenders in
enforcing any rights under the guaranty set forth herein. Without limiting the
generality of the foregoing, Guarantor's liability shall extend to all amounts
that constitute part of the Guaranteed Obligations and would be owed by VoIP to
Collateral Agent and the Lenders, but for the fact that they are unenforceable
or not allowable due to the existence of an insolvency, bankruptcy or
reorganization involving VoIP.

      3.2. Guaranty Absolute. Guarantor guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the
Convertible Notes, regardless of any law, regulation or order now or hereafter
in effect in any jurisdiction affecting any of such terms or the rights of
Collateral Agent or the Lenders with respect thereto. The obligations of
Guarantor under this Agreement are independent of the Guaranteed Obligations,
and a separate action or actions may be brought and prosecuted against Guarantor
to enforce such obligations, irrespective of whether any action is brought
against VoIP or any other Guarantor or whether VoIP or any other Guarantor is
joined in any such action or actions. The liability of Guarantor under this
Agreement constitutes a primary obligation, and not a contract of surety, and
shall be irrevocable, absolute and unconditional irrespective of, and Guarantor
hereby irrevocably waives any defenses it may now or hereafter have in any way
relating to, any or all of the following:

            (a) any lack of validity or enforceability of the Convertible Notes
      or any agreement or instrument relating thereto;

            (b) any change in the time, manner or place of payment of, or in any
      other term of, all or any of the Guaranteed Obligations, or any other
      amendment or waiver of or any consent to departure from the Convertible
      Notes, including, without limitation, any increase in the Guaranteed
      Obligations resulting from the extension of additional credit to VoIP or
      otherwise;

            (c) any taking, exchange, release, subordination or non-perfection
      of any Collateral, or any taking, release or amendment or waiver of or
      consent to departure from any other guaranty, for all or any of the
      Guaranteed Obligations;

            (d) any change, restructuring or termination of the corporate,
      limited liability company or partnership structure or existence of VoIP;
      or

            (e) any other circumstance (including, without limitation, any
      statute of limitations) or any existence of or reliance on any
      representation by Collateral Agent or the Lenders that might otherwise
      constitute a defense available to, or a discharge of, VoIP or any other
      guarantor or surety.

<PAGE>

This Agreement shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by Collateral Agent, the Lenders or any other
entity upon the insolvency, bankruptcy or reorganization of the VoIP or
otherwise (and whether as a result of any demand, settlement, litigation or
otherwise), all as though such payment had not been made.

      3.3. Waiver. Guarantor hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Guaranteed
Obligations and this Agreement and any requirement that Collateral Agent or the
Lenders or exhaust any right or take any action against any Borrower or any
other person or entity or any Collateral. Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated herein and that the waiver set forth in this Section 3.3 is
knowingly made in contemplation of such benefits. Guarantor hereby waives any
right to revoke this Agreement, and acknowledges that this Agreement is
continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

      3.4. Continuing Guaranty; Assignments. This Agreement is a continuing
guaranty and shall (a) remain in full force and effect until the later of the
indefeasible cash payment in full of the Guaranteed Obligations and all other
amounts payable under this Agreement, the Subscription Agreements and
Convertible Notes, (b) be binding upon Guarantor, its successors and assigns and
(c) inure to the benefit of and be enforceable by Collateral Agent and the
Lenders and their successors, pledgees, transferees and assigns. Without
limiting the generality of the foregoing clause (c), the Collateral Agent and
any Lender may pledge, assign or otherwise transfer all or any portion of its
rights and obligations under this Agreement (including, without limitation, all
or any portion of its Convertible Notes owing to it) to any other Person, and
such other Person shall thereupon become vested with all the benefits in respect
thereof granted such Collateral Agent or Lender herein or otherwise.

      3.5. Subrogation. No Guarantor will exercise any rights that it may now or
hereafter acquire against the Collateral Agent or any Lender or other Guarantor
(if any) that arise from the existence, payment, performance or enforcement of
such Guarantor's obligations under this Agreement, including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, including, without limitation, the
right to take or receive from the Collateral Agent or any Lender or other
Guarantor (if any), directly or indirectly, in cash or other property or by
set-off or in any other manner, payment or security solely on account of such
claim, remedy or right, unless and until all of the Guaranteed Obligations and
all other amounts payable under this Agreement shall have been indefeasibly paid
in full in cash. If (i) any Guarantor shall make payment to Collateral Agent, or
the Lenders of all or any part of the Guaranteed Obligations, and (ii) of all or
any of the Guaranteed Obligations and all other amounts payable under this
Agreement such payments shall be paid in full in cash.

<PAGE>

      3.6. Maximum Obligations. Notwithstanding any provision herein contained
to the contrary, Guarantor's liability with respect to the Obligations shall be
limited to an amount not to exceed, as of any date of determination, the amount
that could be claimed by Lenders from Guarantor without rendering such claim
voidable or avoidable under Section 548 of the Bankruptcy Code or under any
applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance
Act or similar statute or common law.

4.    Miscellaneous.

      4.1. Expenses. Guarantor shall pay to the Collateral Agent, on demand, the
amount of any and all reasonable expenses, including, without limitation,
attorneys' fees, legal expenses and brokers' fees, which the Collateral Agent
may incur in connection with (a) exercise or enforcement of any the rights,
remedies or powers of the Collateral Agent hereunder or with respect to any or
all of the Obligations; or (b) failure by Guarantor to perform and observe any
agreements of Guarantor contained herein which are performed by the Collateral
Agent.

      4.2. Waivers, Amendment and Remedies. No course of dealing by the
Collateral Agent and no failure by the Collateral Agent to exercise, or delay by
the Collateral Agent in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, and no single or partial exercise thereof shall
preclude any other or further exercise thereof or the exercise of any other
right, remedy or power of the Collateral Agent. No amendment, modification or
waiver of any provision of this Agreement and no consent to any departure by
Guarantor therefrom, shall, in any event, be effective unless contained in a
writing signed by the Collateral Agent, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. The rights, remedies and powers of the Collateral Agent, not only
hereunder, but also under any instruments and agreements evidencing or securing
the Obligations and under applicable law are cumulative, and may be exercised by
the Collateral Agent from time to time in such order as the Collateral Agent may
elect.

      4.3. Notices. All notices or other communications given or made hereunder
shall be in writing and shall be personally delivered or deemed delivered the
first business day after being faxed (provided that a copy is delivered by first
class mail) to the party to receive the same at its address set forth below or
to such other address as either party shall hereafter give to the other by
notice duly made under this Section:

        To VoIP and                     c/o VoIP, Inc.
        Guarantor, to:                  12330 SW53 Street, Suite 712
                                        Cooper City, Florida 33330
                                        Attn:  Steven Ivester, President and CEO
                                        Fax: (954) 434-2877

<PAGE>

        With a copy by telecopier
          only to:                      Ronald L. Brown, Esq.
                                        Andrews Kurth LLP
                                        1717 Main Street, Suite 3700
                                        Dallas, Texas 75201
                                        Fax: (214) 659-4819

        To Lenders:                     To the addresses and telecopier numbers
                                        set forth on Schedule A

        To the Collateral Agent:        Barbara R. Mittman
                                        Grushko & Mittman, P.C.
                                        551 Fifth Avenue, Suite 1601
                                        New York, New York 10176
                                        Fax: (212) 697-3575

Any party may change its address by written notice in accordance with this
paragraph.

      4.4. Term; Binding Effect. This Agreement shall (a) remain in full force
and effect until payment and satisfaction in full of all of the Obligations; (b)
be binding upon Guarantor and its successors and permitted assigns; and (c)
inure to the benefit of the Collateral Agent, for the benefit of the Lenders and
their respective successors and assigns. All the rights and benefits granted by
Guarantor to the Collateral Agent and Lenders hereunder and other agreements and
documents delivered in connection therewith are deemed granted to both the
Collateral Agent and Lenders. Upon the payment in full of the Obligations, (i)
this Agreement shall terminate and (ii) Collateral Agent will, upon Guarantor's
request and at Guarantor's expense, execute and deliver to Guarantor such
documents as Guarantor shall reasonably request to evidence such termination,
all without any representation, warranty or recourse whatsoever.

      4.5. Captions. The captions of Paragraphs, Articles and Sections in this
Agreement have been included for convenience of reference only, and shall not
define or limit the provisions hereof and have no legal or other significance
whatsoever.

      4.6. Governing Law; Venue; Severability. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts or choice of law, except to the extent that
the perfection of the security interest granted hereby in respect of any item of
Collateral may be governed by the law of another jurisdiction. Any legal action
or proceeding against Guarantor with respect to this Agreement may be brought in
the courts of the State of New York or of the United States for the Southern
District of New York, and, by execution and delivery of this Agreement,
Guarantor hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts.
Guarantor hereby irrevocably waives any objection which they may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement brought in the
aforesaid courts and hereby further irrevocably waives and agrees not to plead
or claim in any such court that any such action or proceeding brought in any
such court has been brought in an inconvenient forum. If any provision of this
Agreement, or the application thereof to any person or circumstance, is held
invalid, such invalidity shall not affect any other provisions which can be
given effect without the invalid provision or application, and to this end the
provisions hereof shall be severable and the remaining, valid provisions shall
remain of full force and effect.

<PAGE>

      4.7. Satisfaction of Obligations. For all purposes of this Agreement, the
payment in full of the Obligations shall be conclusively deemed to have occurred
when either the Obligations have been indefeasibly paid in cash or all
outstanding Convertible Notes have been converted to common stock pursuant to
the terms of the Convertible Notes and the Subscription Agreements.

      4.8. Counterparts/Execution. This Agreement may be executed in any number
of counterparts and by the different signatories hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument. This
Agreement may be executed by facsimile signature and delivered by facsimile
transmission.

        This Guaranty Agreement may be signed by facsimile signature and
                 delivered by confirmed facsimile transmission.

<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed and delivered this
Guaranty Agreement, as of the date first written above.

"GUARANTOR"                                        "GUARANTOR"
VOIPSOLUTIONS,                                     EGLOBALPHONE,
a Florida corporation                              a Florida corporation

By:/s/ Steven Ivester                              By: /s/ Steven Ivester
   ---------------------------------               -------------------
Its: CEO                                           Its: CEO
    --------------------------------                   ----

"GUARANTOR"                                        "GUARANTOR"
VOIPSOLUTIONS,                                     VOIPSOLUTIONS,
a Florida corporation                              a Florida corporation

By: /s/ Steven Ivester                             By: /s/ Steven Ivester
   ---------------------------------                  -------------------
Its: CEO                                           Its: CEO
    --------------------------------                   ----

"GUARANTOR"                                        "GUARANTOR"
CAERUS, INC.,                                      VOX CONSULTING GROUP, INC.,
a Delaware corporation                             a Florida corporation

By: /s/ Steven Ivester                             By: /s/ Steven Ivester
   ---------------------------------                  -------------------
Its: CEO                                           Its: CEO
    --------------------------------                   ----

"GUARANTOR"                                        "GUARANTOR"
VCG TECHNOLOGIES,                                  VOLO COMMUNICATIONS, INC.,
a Florida corporation                              a Delaware corporation

By: /s/ Steven Ivester                             By: /s/ Steven Ivester
   ---------------------------------                  -------------------
Its: CEO                                           Its: CEO
    --------------------------------                   ----

"GUARANTOR"                                        "GUARANTOR"
CAERUS BILLING, INC.,                              CAERUS NETWORKS, INC.,
a Delaware corporation                             a Delaware corporation

By: /s/ Steven Ivester                             By: /s/ Steven Ivester
   ---------------------------------                  -------------------
Its: CEO                                           Its: CEO
    --------------------------------                   ----

<PAGE>

"GUARANTOR"                                        "THE COLLATERAL AGENT"
VOICEONE COMMUNICATIONS, LLC,                      BARBARA R. MITTMAN
a Delaware Limited Liability corporation

By: /s/ Steven Ivester                             /s/ Barbara R. Mittman
   -----------------------------------------       ----------------------
Its: CEO

                             APPROVED BY "LENDERS":

/s/ Stonestreet Limited Partnership            /s/ Whalehaven Capital Fund Ltd.
--------------------------------------------   --------------------------------
STONESTREET LIMITED PARTNERSHIP                WHALEHAVEN CAPITAL FUND LTD.

/s/ Ellis Enterprises Ltd.                     /s/ Bristol Investment Fund, Ltd.
--------------------------------------------   ---------------------------------
ELLIS ENTERPRISES LTD.                         BRISTOL INVESTMENT FUND, LTD.

/s/ Alpha Capital Aktiengesellschaft
------------------------------------
ALPHA CAPITAL AKTIENGESELLSCHAFT

<PAGE>

                             SCHEDULE A TO GUARANTY

LENDER                                INTIAL CLOSING         SECOND CLOSING
                                      NOTE PRINCIPAL         NOTE PRINCIPAL

STONESTREET LIMITED                     $287,500.00            $287,500.00
  PARTNERSHIP
33 Prince Arthur Ave.
Toronto, Ontario M5R 1B2, Canada
Fax: (416) 323-3693

WHALEHAVEN CAPITAL FUND                 $230,000.00            $230,000.00
  LTD.
3RD Floor, 14 Par-Laville Road
Hamilton, Bermuda HM08
Fax: (441) 292-1373

ELLIS INTERNATIONAL LTD.                $143,750.00            $143,750.00
53rd Street Urbanizacion Obarrio
Swiss Tower, 16th Floor, Panama
Republic of Panama
Fax: (516) 887-8990

BRISTOL INVESTMENT FUND,                $383,332.95            $383,332.95
  LTD.
Caledonia House, Jennett Street
George Town, Grand Cayman
Cayman Islands
Fax: (323) 468-8307

ALPHA CAPITAL                           $383,332.95            $383,332.95
  AKTIENGESELLSCHAFT
Pradafant 7
9490 Furstentums
Vaduz, Lichtenstein
Fax: 011-42-32323196
TOTAL                                 $1,427,915.90          $1,427,915.90Exhibit 10.1

                                 ONSTREAM MEDIA

                              1291 SW. 29th Avenue
                             Pompano Beach, FL 33069
                               Tel. #954-917-6655
                                Fax #954-917-6660

                     PLAN OF COMPENSATION PACKAGE OFFER FOR

                                 Bradford Tyler
                            831 East Monument Street
                           Colorado Springs, CO. 80903

                                 April 22, 2005

On behalf of Onstream Media Corporation - ONSTREAM, I am pleased to offer you
the position of Corporate Chief Technology Officer. You will be responsible for
ensuring that corporate business goals, products, and services are placed on
technology vectors that create comparative advantage. You will also be
responsible for providing direct support to executive, managerial, and
operations personnel in technology evaluation, selection and utilization.

The purpose of this letter is to highlight the compensation and job overview
aspects related to the position, which is designed to provide a total
compensation package to meet your immediate and long-term income needs. They are
as follows:

I. START DATE

June 1, 2005

II. MONETARY COMPENSATION

The position will be compensated as follows:

Base salary of $96,000.00
Stock allocation of $24,000.00

III. ONSTREAM MANAGEMENT PERSONNEL

You will report to the Chief Operating Officer.

IV. HOLIDAYS

ONSTREAM has eight (8) paid holidays per year:

President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
the day after Thanksgiving, Christmas Day, New Year's Day.

<PAGE>

V. BENEFITS

ONSTREAM offers a comprehensive insurance program incorporating company-paid
employee coverage for medical (HMO), dental, life insurance, and short-term
disability, as well as company-subsidized long-term disability coverage. The
company also subsidizes a buy-up PPO medical plan. The company offers a Section
125/Cafeteria Plan, through which employees can realize pre-tax savings on
Dependent premium costs, Medical, and Child/Elder Care expenses. The effective
date of these coverages will be effective July 1, 2005.

The company's 401(k) Retirement Plan offers enrollment effective the first of
the month following 90 days of service. ONSTREAM currently contributes 25% of
employee contribution, up to 8% of employee compensation. The employee can elect
to contribute from 1% to the maximum IRS allowable, which currently stands at
$14,000.00 per year for employees under 50 years of age. Your eligibility will
be effective September 1, 2005.

Attached please find a copy of the ONSTREAM Employee Guide, for your thorough
review, and signed acknowledgement. This Guide, in addition to our policies and
procedures, provides guidelines and summary information about the company's
goals, personnel policies, procedures, benefits, and rules of conduct, and is
designed to acquaint you with various aspects of the job. The Company reserves
the right to modify, supplement, rescind, or revise any provision, benefit,
policy or procedure from time to time, with or without notice, as it deems
necessary or appropriate to meet the ever changing needs of our Customers, our
Associates, and the Company.

As described in the Guide, employment is with the mutual consent of you and
ONSTREAM. Both you and ONSTREAM have the right to terminate the employment
relationship at any time, with or without cause, with or without advance notice,
for any reason or no reason at all. This employment-at-will relationship will
remain in effect throughout your employment with ONSTREAM unless it is
specifically modified by an express written agreement signed by you and the
President of ONSTREAM. Nothing contained in this Guide is intended to create a
contract of any kind.

The first 90 days at Onstream Media Corporation is a Probationary period.
Onstream uses this period to evaluate the employee's capabilities, work habits
and overall performance. Continuation of employment is contingent on the
employee demonstrating the ability to achieve a satisfactory level of
performance in all respects.

On behalf of all at ONSTREAM, I believe that your strong qualifications will
provide a high degree of synergy with our company. Welcome to the team.

/s/ Bradford Tyler
------------------
Signature

5/2/05
------
Date

/s/ Alan Saperstein
-------------------
Chief Operating Officer

5/2/05
------
Date

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