Document:

Employment Agreement - Ken Kieley

 Exhibit 10.2 
  
 EMPLOYMENT AND CHANGE OF CONTROL AGREEMENT 
  
 This Employment and Change of Control Agreement is made and entered into on this 17 day of February, 2003 by and between
NetSolve, Incorporated, a Delaware corporation (the “Company”), and Ken Kieley (the “Executive”). 
  
 RECITALS 
  
 WHEREAS, the Board of Directors of the Company (the “Board”), has determined that, in the event the Company were to become involved in
discussions and negotiations with a third party concerning a potential transaction which might result in a Change of Control of the Company, it is desirable and in the best interest of the Company and its stockholders to have established
arrangements to ensure that Executive remains focused and appropriately incented with respect to the successful completion of such Change of Control and the transition and ongoing activities thereafter regarding the continued business of the Company
following such Change of Control; and 
  
 WHEREAS, in order to
accomplish these objectives, the Company and Executive have entered into this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the Company
and Executive agree as follows: 
  

	 	1.	Effective Date. The effective date of this Agreement shall be the date on which a Change of Control occurs (the “Effective Date”). However, anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs and if, prior to such Change of Control, the Executive’s employment with the Company or its affiliated companies had been terminated or the Executive was demoted, and if
it is reasonably demonstrated by the Executive that such termination or diminution arose in connection with, or anticipation of, the Change of Control, then, for all purposes of this Agreement, the “Effective Date” shall mean the date
immediately prior to the date of such termination or diminution. 

  

	 	2.	Change of Control. For the purposes of this Agreement, a “Change of Control” shall mean a change of control of the Company of a nature that would be required to be
reported in response to Item 1(a) of the Securities and Exchange Commission Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) or would have been
required to be so reported but for the fact that such event had been “previously reported” as that term is defined in Rule 12b-2 of Regulation 12B under the Exchange Act; provided that, without limitation, a Change of Control shall be
deemed to have occurred if: 

  

	 	(i)	individuals who constitute the Board of Directors on the date of execution of this Agreement (the “Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date hereof 

  

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 whose election, or nomination for election by the Company’s stockholders, was approved by a vote of
at least three-quarters of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination)
shall be, for purposes of this clause, considered as though such person were a member of the Incumbent Board; or 
  

	 	(ii)	the stockholders of the Company approve the sale or other disposition of all or substantially all of the assets of the Company or a complete liquidation or dissolution of the
Company; or 

  

	 	(iii)	the stockholders of the Company approve a merger, consolidation, reorganization or other business combination transaction pursuant to which the Company is not the surviving ultimate
parent entity. 

  
 For purposes of
this definition, the following terms shall have the meanings set forth below: 
  
 “Person” shall mean and include any individual, corporation, partnership, group, association or other “person,” as such term is used in Section 14(d) of the Exchange Act, other than the Company, a
subsidiary of the Company or any employee benefit plan(s) sponsored or maintained by the Company or any subsidiary thereof. 
  
 “Independent Shareholder” shall mean any shareholder of the Company except any employee(s) or director(s) of the Company or any employee benefit
plan(s) sponsored or maintained by the Company or any subsidiary thereof. 
  
 “Sale or disposition by the Company of all or substantially all of the assets of the Company” shall mean a sale or other disposition transaction or series of related transactions involving assets of the
Company in which the value of the assets being sold or otherwise disposed of (as measured by the purchase price being paid therefore or by such other method as the Board determines is appropriate in a case where there is no readily ascertainable
purchase price) constitutes more than two-thirds of the fair market value of the Company (as hereinafter defined). 
  
 “Fair market value of the Company” shall be the aggregate market value of the then outstanding shares of Common Stock of the Company (on a fully
diluted basis). The aggregate market value of the shares of outstanding Company Common Stock shall be determined by multiplying the number of shares of outstanding Company Common Stock (on a fully diluted basis) outstanding on the date of the
execution and delivery of a definitive agreement with respect to the transaction or series of related transactions (the “Transaction Date”) by the average closing price of the shares of outstanding Company Common Stock for the ten trading
days immediately preceding the Transaction Date. 
  

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 Notwithstanding any other provision of this Agreement, a transaction or event shall not be deemed to
constitute a Change of Control if it is the result of, or arises out of, the Company having filed, voluntarily or involuntarily, a petition in bankruptcy. 
  

	 	3.	Acceleration of Stock Option Vesting. Immediately upon the Effective Date, the vesting of outstanding and unvested stock options previously granted to Executive will
automatically be accelerated in accordance with the provisions of this Section. A number of shares equal to one-half (1/2) of the unvested shares underlying each such stock option grant will become immediately vested and fully exercisable at any
time during the remaining term of the applicable option. 

  

	 	4.	Employment Period. The Company hereby agrees to continue the Executive in its employ, and the Executive hereby agrees to remain in the employ of the Company, for a period
commencing on the Effective Date and continuing for a twelve (12) month period (the “Employment Period”). 

  

	 	5.	Position and Duties. During the Employment Period, the Executive’s position (including status, titles, and reporting relationships), authority, duties, and
responsibilities with the Company or its affiliated companies or both, as the case may be, shall be comparable to, and, in any event, no less than those in effect immediately prior to the Effective Date. The Executive’s services shall be
performed at the location where the Executive was employed immediately preceding the Effective Date, although the Executive understands and agrees that he may be required to travel from time to time for business purposes. 

 

	 	    	During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote substantially all of his time
and attention during normal business hours to the business and affairs of the Company and its affiliated companies and to use his reasonable best efforts to faithfully perform the duties and responsibilities assigned to him hereunder. During the
Employment Period it shall not be a violation of this Agreement for the Executive to serve on corporate, civic or charitable boards or committees and fulfill these and other reasonable personal interests, and devote reasonable amounts of time to the
management of his and his family’s personal investments and affairs, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company or its affiliated
companies in accordance with this Agreement. 

  

	 	6.	Compensation. During the Employment Period, the Executive shall be compensated as follows: 

  

	 	(a)	Annual Base Salary. The Executive shall be paid an annual base salary, in equal installments under the Company’s usual payroll practice, at least equal to the annual
base salary being paid to the Executive immediately prior to the Effective Date 

  

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	 	(b)	Annual Bonus. Executive shall be eligible for, and entitled to participate in, annual bonus programs of the Company during the Employment Period on a basis consistent with,
and no less favorable to Executive as, his participation prior to the Effective Date. 

  

	 	(c)	Stock Options and other Long-Term Incentive Compensation. Executive shall be eligible for, and entitled to participate in, stock option and other long-term incentive programs
of the Company during the Employment Period on a basis comparable to other peer executives of the Company. 

  

	 	(d)	Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate in all savings and retirement plans, practices, policies, and
programs applicable generally to other peer executives of the Company and its affiliated companies. 

  

	 	(e)	Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive
all benefits under, welfare benefit plans, and other benefit programs, practices and policies (including, without limitation, medical, prescription drug, short-term disability, long-term disability, leave of absence, salary continuance, vacation,
group life insurance, accidental death and dismemberment, and all other applicable plans and programs) provided by the Company to the extent applicable generally to other peer executives of the Company, but in no event shall such plans, practices,
policies, and programs provide the Executive with benefits and rights which are less favorable, in the aggregate, than the most favorable of such plans, practices, policies, and programs in effect for the Executive at any time prior to the Effective
Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date. 

  

	 	7.	Termination of Employment. 

  

	 	(a)	Disability. If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give the Executive written notice of its intent to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such
notice by the Executive, provided that, within the 30 days after receipt of the Company’s notice, the Executive shall not have received a release to return to work and be willing to return to perform his duties hereunder. For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company for 180 consecutive business days as a result of incapacity due to mental or physical illness or injury which is determined
to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s 

  

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 legal representative (such agreement as to acceptability not to be unreasonably withheld). 

 

	 	(b)	Cause. The Company may terminate the Executive’s employment during the Employment Period for Cause. For purposes of this Agreement, “Cause” shall mean (i)
repeated willful or intentional violations by the Executive of the Executive’s obligations under Section 4 of this Agreement (other than as a result of incapacity due to physical or mental illness or injury) which are committed in bad faith or
without reasonable belief that such violations are in the best interests of the Company and which are not remedied within a reasonable period of time after receipt of written notice from the Company specifying such violations; or (ii) the conviction
of the Executive of a felony involving an act of dishonesty intended to result in substantial personal enrichment at the expense of the Company. A termination for Cause under clause (i) above may only be effected pursuant to a formal resolution of
the Board at a special meeting called for the purpose of considering such termination pursuant to which at least 3⁄4 of the members of the Board affirmatively determine that the violations of Executive constituted Cause in accordance with the
provisions of clause (i) above and that such violations have not been remedied within a reasonable time following Executive’s receipt of written notice specifying the conduct and violations at issue. 

  

	 	(c)	Good Reason. The Executive’s employment may be terminated during the Employment Period by the Executive for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean any one or more of the following occurrences: 

  

	 	(i)	Executive’s base salary as in effective immediately prior to the Effective Date, or as it may be increased subsequent to the Effective Date, is reduced;

  

	 	(ii)	Executive’s status, position, title or responsibilities with the Company immediately prior to the Effective Date are materially reduced, or Executive is assigned duties which
are inconsistent with such status, position, title or responsibilities, or Executive’s business location is materially changed; 

  

	 	(iii)	The Company fails to continue in effect any pension, stock option, health care, or other incentive plan or arrangement, or fringe benefit arrangement, in which Executive was
participating immediately prior to the Effective Date, or the Company takes some action which materially reduces Executive’s benefits under any such plan or program (including, without limitation, providing benefits thereunder which are less
than Executive’s reasonably expected benefit levels based on benefits received prior to the 

  

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 Effective Date), without (in either such case) providing Executive with substantially similar benefits;
or 
  

	 	(iv)	Any successor to the Company in connection with a Change of Control does not, prior to the closing of the Change of Control transaction, expressly assume this Agreement.

  
  
 For purposes of this Section 6(c), any good faith determination of “Good Reason” made by the Executive shall be final and conclusive on all parties. 
  

	 	8.	Obligations of the Company upon Termination. 

  

	 	(a)	Good Reason; Other Than for Cause or Disability. If, during the Employment Period, the Company terminates Executive’s employment other than for Cause or Disability, or
Executive terminates his employment for Good Reason: 

  

	 	(i)	The Company shall promptly pay Executive his unpaid base salary through the date of such termination and any unused vacation, and shall pay and honor any benefits or commitments to
which Executive is entitled upon such termination under plans, policies, agreements and arrangements of, or with, the Company (collectively, the “Accrued Obligations”). 

  

	 	(ii)	The Company shall promptly pay Executive a lump sum cash payment equal to the sum of Executive’s annualized base salary (i.e., 1 year’s base salary) at the highest level
in effect during the Employment Period, and Executive’s annual bonus actually received for the year prior to the year of the termination. 

  

	 	(iii)	With respect to Executive’s outstanding stock options and similar incentive awards, either subparagraph (a) or (b) below shall apply, as appropriate under the particular
circumstances: 

  
 (a) Notwithstanding the
provisions of any outstanding awards, Executive shall be entitled to exercise all vested options and other awards (including those vested as a result of the accelerated vesting provided for in Section 3 hereof) at any time prior to the expiration of
the longer of six (6) months from the date of such termination, or January 31 of the year following such termination. The terms of all outstanding awards shall be automatically amended to incorporate the provisions of this paragraph in the event
such provisions become applicable; or 
  
 (b) In the event that,
the shares underlying the then outstanding stock options or similar awards of Executive are not publicly traded as of the date of such termination, Executive shall be entitled to receive (as soon as reasonably practical following such 
  

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 termination, but in any event within 10 days thereof) a lump sum cash payment in an amount equal to the
difference between the aggregate exercise price of the vested shares underlying each such option (giving credit for the accelerated vesting provided for in Section 3 above) and the aggregate value of such number of vested shares calculated on the
basis of the closing price of the Company’s common stock (as reported on the NASDAQ national market) as of the date of the closing of the transaction or the consummation of the event constituting the Change of Control. 
  

	 	(iv)	The Company shall maintain for a period of one (1) year following such termination, all medical, prescription drug, group life insurance, disability and other welfare arrangements
in which Executive and Executive’s dependants were participating, and under the same terms of such participation (including the required contributions for such coverage and the income tax effect of such coverage to Executive and
Executive’s dependants) as were in effect immediately prior to such termination. In the event that such continued coverage under any such arrangement is not possible under the terms of such arrangement, the Company shall provide such coverage,
on the same basis, outside of the terms of such arrangement. Such continued coverage shall be in addition to the rights of Executive and his dependants under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), and such COBRA rights
will be provided in full following the expiration of the continued coverage provided for under this clause (iv). The coverage and benefits provided for in this clause (iv) shall be referred to herein as the “Continued Coverage.”

  

	 	(v)	The Company shall, at its cost, provide Executive with professional outplacement services for up to 12 months following such termination. 

  

	 	(b)	Death; Disability. In the event Executive’s employment is terminated during the Employment Period as a result of Executive’s Disability or death, this Agreement
shall terminate and: 

  

	 	(i)	The Company shall provide Executive (or his beneficiaries in the event of his death) the Accrued Obligations. 

  

	 	(ii)	The Company shall provide Executive and his dependants with the Continued Coverage. 

  

	 	(c)	Cause; Other than Good Reason. In the event Executive’s employment is terminated during the Employment Period by the Company for Cause or by the Executive without Good
Reason, this Agreement shall terminate 

  

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 and the Company shall provide Executive the Accrued Obligations, and neither party shall have any
further obligations to the other. 
  

	 	9.	Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice
provided by the Company and for which Executive may qualify, nor shall anything herein limit or otherwise affect such rights as Executive may have under any contract or agreement with the Company. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice,
program, contract, or agreement except as otherwise expressly modified by this Agreement. 

  

	 	10.	Full Settlement. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by
any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as otherwise expressly provided for in this Agreement, such amounts shall not be reduced whether or not the Executive obtains other
employment. The Company agrees to pay, to the fullest extent permitted by law, all legal fees and expenses which the Executive may reasonably incur at all stages of proceedings, including, without limitation, preparation, trial and appellate review,
as a result of any contest (regardless of whether formal legal proceedings are ever commenced and regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of
this Agreement (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A)
of the Internal Revenue Code. 

  

	 	11.	Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all confidential information, knowledge or data relating to the
Company which shall have been obtained by the Executive during the Executive’s employment by the Company and which shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those designated by it. In no event, however, shall an asserted violation of the provisions of this section constitute a basis upon which the Company may withhold or defer any
amount or benefit otherwise payable to the Executive under this Agreement. The terms of this confidential information provision shall survive the termination or expiration of this Agreement. 

  

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	 	12.	Indemnification. The Company will, to the fullest extent permitted by law, indemnify and hold the Executive harmless from any and all liability arising from the
Executive’s service as an employee, officer or director of the Company and its affiliated companies. To the fullest extent permitted by law, the Company will advance legal fees and expenses to the Executive for counsel selected by the Executive
in connection with any litigation or proceeding related to the Executive’s service as an employee, officer or director of the Company and its affiliates. The terms of this indemnification provision shall survive the termination or expiration of
this Agreement, and shall in not limit the obligations of the Company or the rights of Employee under any other agreement or charter or bylaw provision. 

  

	 	13.	Deductions and Nonalienation of Benefits. Executive shall be required to pay promptly on demand, by payroll deduction or otherwise, the amount required to be withheld by the
Company for income and employment taxes in respect of amounts paid under this Agreement. No right, benefit or payment hereunder shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to
anticipate, alienate, sell, assign, pledge, encumber or charge the same shall be null and void. No right, benefit or payment hereunder shall in any manner be subject to, voluntarily or involuntarily, the debts, contracts, liabilities or torts of
Executive or be otherwise subject to any execution, garnishment, attachment, insolvency, bankruptcy or legal proceedings of any character or legal sequestration, levy or sale. If Executive or any other beneficiary hereunder shall become bankrupt or
attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any right, benefit or payment hereunder, such right, benefit or payment may be terminated at any time by the Company without liability or further obligation.

  

	 	14.	Entire Agreement. This Agreement contains the complete understanding and agreement between the parties and supersedes any and all other agreements, understandings, or
communications of any kind, either oral or in writing, between the parties hereto with respect to the subject matter hereof. The parties to this Agreement acknowledge that no representations, inducements, promises, or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise with respect to the subject matter of this Agreement shall be valid or binding. Any
modification of this Agreement will be effective only if it is in writing and signed by both of the parties hereto. 

  

	 	15.	Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall
nevertheless continue in full force without being impaired or invalidated in any way, and such invalid, void or unenforceable provisions shall be reformed and replaced with valid and enforceable provisions which are as close as possible to such
invalid, void or unenforceable provisions. 

  

	 	16.	Survival. The parties hereby acknowledge and agree that certain provisions of this Agreement are, by their nature, intended to survive this Agreement and the parties

  

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 agree that all of such provisions shall survive Executive’s termination of employment, regardless of
the reason for such termination. 
  

	 	17.	Successors. This Agreement shall be binding upon and inure to the benefit of Executive, his heirs, beneficiaries and personal representatives, and the Company and any
successor or assignee of the Company, but neither this Agreement, nor any of the rights or obligations of either party hereunder may be assigned, in whole or in part, except the Company may assign this Agreement to any affiliate of the Company. The
Company will seek to obtain the written acknowledgment and assumption of this Agreement by any successor of the Company in connection with a Change of Control of the Company prior to the consummation of such Change of Control transaction. Whether or
not such written acknowledgment and assumption is given, this Agreement shall be binding on such successor and its assignees, and “Company,” as used in this Agreement, shall be deemed to mean the Company as hereinbefore defined, and any
successors to the Company, including without limitation, any successor to the Company in the event of a Change of Control. 

  

	 	18.	Notices. Any notices to be given hereunder by either party to the other may be effected by personal delivery in writing, by facsimile or by mail, registered or certified,
postage prepaid to the current address of the other party with return receipt requested. Notices delivered personally or by facsimile shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of three (3) days
after mailing. 

  

	 	19.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 

  
 Executed effective as of the 17 day of February, 2003. 
  

			
	NETSOLVE, INCORPORATED
		
	By:	 	 /s/    J. Michael Gullard

	 	 	J. Michael Gullard
	
	 
	 EXECUTIVE
  

	 
		
	By:	 	 /s/    David D. Hood

	 	 	David D. Hood
	 

  

 - 10 -Form of Warrant issued by the Company to each buyer

 EXHIBIT 4.1 
  

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  
 COMMON STOCK PURCHASE WARRANT 
  

To Purchase                      Shares of
Common Stock of 
  
 i2 TELECOM INTERNATIONAL, INC.

  
 THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”) CERTIFIES that, for value received,                      (the “Holder”), is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date of issuance of this Warrant (the “Initial Exercise Date”) and on or prior to the third year anniversary of
the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from i2 Telecom International, Inc., a Washington corporation (the “Company”), up to
                     shares (the “Warrant Shares”) of Common Stock, no par value, of the Company (the “Common
Stock”). The purchase price of one share of Common Stock (the “Exercise Price”) under this Warrant shall be $0.96, subject to adjustment hereunder. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in that certain Securities Purchase Agreement (the “Securities Purchase Agreement”), dated August 11, 2004, among the Company and the buyers signatory thereto. 
  

 1. Title to Warrant. Prior to the Termination Date and subject to compliance with applicable laws
and Section 7 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with
the Assignment Form annexed hereto properly endorsed. The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company. 
  
 2. Authorization of Shares. The Company covenants that all Warrant Shares which may be issued upon the exercise of
the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the
issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
  
 3. Exercise of Warrant. 
  
 (a) Exercise of the purchase rights represented by this Warrant may be made at any time or times on or after the Initial Exercise Date and
on or before the Termination Date by delivery to the Company of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (or such other office or agency of the Company as it may designate by notice in writing to the registered
Holder at the address of such Holder appearing on the books of the Company); provided, however, within 3 Business Days (as defined in the Certificate of Designations) of the date said Notice of Exercise is delivered to the Company, the
Holder shall have surrendered this Warrant to the Company and the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank.
Certificates for shares purchased hereunder shall be delivered to the Holder within 3 Business Days from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant and payment of the aggregate Exercise Price as set forth
above (“Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the later of the date the Notice of Exercise is delivered to the Company by facsimile copy and the date the Exercise Price is received by
the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has
been exercised by payment to the Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have been paid. If the Company fails to deliver to the Holder a
certificate or certificates representing the Warrant Shares pursuant to this Section 3(a) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if
the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to an exercise by the Warrant Share Delivery Date, and if after such day the Holder is required by its broker to purchase (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving 

  

 2 

 
upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total
purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection
with the exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for
which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations
and other evidence reasonably requested by the Company. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
  
 (b) If this Warrant shall have been exercised in part, the
Company shall, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant. 
  
 (c) [INTENTIONALLY OMITTED.] 
  
 (d) If, at any time after one year from the date of issuance of this Warrant, there is no effective Registration Statement registering the resale of the Warrant Shares by the Holder, during any such periods this
Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where: 
  

	 	(A) =	the Weighted Average Price on the Business Day immediately preceding the date of such election; 

  

	 	(B) =	the Exercise Price of this Warrant, as adjusted; and 

  

	 	(X) =	the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

  

 3 

 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to
such fraction multiplied by the Exercise Price. 
  
 5. Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment
of a sum sufficient to reimburse it for any transfer tax incidental thereto. 
  
 6. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
  
 7. Transfer, Division and Combination. 
  
 (a) Subject to compliance with any applicable securities
laws and the conditions set forth in Section 1 and Section 7(e) hereof and to the provisions of Section 5(b) of the Securities Purchase Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon
surrender of this Warrant at the principal office of the Company, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or
denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 
  
 (b) This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together
with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. 
  
 (c) The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new
Warrant or Warrants under this Section 7. 
  

 4 

 (d) The Company agrees to maintain, at its aforesaid office, books for the registration
and the registration of transfer of the Warrants. 
  
 (e) If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration statement under the 1933 Act and under
applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the 1933 Act and under applicable state securities or blue sky laws, (ii)
that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7), or (a)(8) promulgated under the 1933 Act or a qualified institutional buyer as defined in Rule 144A(a) under the 1933 Act. 
  
 8. No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the
record owner of such shares as of the close of business on the later of the date of such surrender or payment. 
  
 9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate. 
  
 10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken
or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday. 
  
 11. Adjustments of Exercise Price and Number of Warrant Shares. 
  
 (a) Stock Splits, etc. The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time upon the happening of any of the following. In case the Company shall (i) pay a dividend in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (iv) issue any

  

 5 

 
shares of its capital stock in a reclassification of the Common Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind and number of Warrant Shares or other securities of the Company which it would have owned or have been entitled to receive had such Warrant been
exercised in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other securities of the Company which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant Shares or
other securities resulting from such adjustment at an Exercise Price per Warrant Share or other security obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant
hereto immediately prior to such adjustment and dividing by the number of Warrant Shares or other securities of the Company that are purchasable pursuant hereto immediately after such adjustment. An adjustment made pursuant to this paragraph shall
become effective immediately after the effective date of such event retroactive to the record date, if any, for such event. 
  
 (b) Anti-Dilution Provisions. During the Exercise Period, the Exercise Price shall be subject to adjustment from time to time as
provided in this Section 11(b). In the event that any adjustment of the Exercise Price as required herein results in a fraction of a cent, such Exercise Price shall be rounded up or down to the nearest cent. 
  
 (i) Adjustment of Exercise Price. If and whenever the
Company issues or sells, or in accordance with Section 11(b)(ii) hereof is deemed to have issued or sold, any shares of Common Stock for an effective consideration per share of less than the then Exercise Price or for no consideration (such lower
price, the “Applicable Price” and such issuances collectively, a “Dilutive Issuance”), then, the Exercise Price shall be reduced to equal the Applicable Price. Such adjustment shall be made whenever shares of Common
Stock or Common Stock Equivalents are issued. 
  
 (ii) Effect on Exercise Price of Certain Events. For purposes of determining the adjusted Exercise Price under Section 11(b) hereof, the following will be applicable: 
  
 (A) Issuance of Rights or Options. If the Company in any manner issues or grants any warrants,
rights or options, whether or not immediately exercisable, to subscribe for or to purchase Common Stock or Common Stock Equivalents (such warrants, rights and options to purchase Common Stock or Common Stock Equivalents are hereinafter referred to
as “Options”) and the effective price per share for which Common Stock is issuable upon the exercise of such Options is less than the Exercise Price (“Below Base Price Options”), then the maximum total number of
shares of Common Stock issuable upon the exercise of all such Below Base Price Options (assuming full exercise, conversion or exchange of Common Stock Equivalents, if applicable) will, as of the date of the issuance or grant of such Below Base Price
Options, be deemed to be outstanding and to have been issued and sold by the Company for such 

  

 6 

 
price per share and the maximum consideration payable to the Company upon such exercise (assuming full exercise, conversion or exchange of Common Stock
Equivalents, if applicable) will be deemed to have been received by the Company. For purposes of the preceding sentence, the “effective price per share for which Common Stock is issuable upon the exercise of such Below Base Price Options”
is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration for the issuance or granting of all such Below Base Price Options, plus the minimum aggregate amount of additional consideration, if any,
payable to the Company upon the exercise of all such Below Base Price Options, plus, in the case of Common Stock Equivalents issuable upon the exercise of such Below Base Price Options, the minimum aggregate amount of additional consideration
payable upon the exercise, conversion or exchange thereof at the time such Common Stock Equivalents first become exercisable, convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all
such Below Base Price Options (assuming full conversion of Common Stock Equivalents, if applicable). No further adjustment to the Exercise Price will be made upon the actual issuance of such Common Stock upon the exercise of such Below Base Price
Options or upon the exercise, conversion or exchange of Common Stock Equivalents issuable upon exercise of such Below Base Price Options. 
  
 (B) Issuance of Common Stock Equivalents. If the Company in any manner issues or sells any Common Stock Equivalents, whether or
not immediately convertible (other than where the same are issuable upon the exercise of Options) and the effective price per share for which Common Stock is issuable upon such exercise, conversion or exchange is less than the Exercise Price, then
the maximum total number of shares of Common Stock issuable upon the exercise, conversion or exchange of all such Common Stock Equivalents will, as of the date of the issuance of such Common Stock Equivalents, be deemed to be outstanding and to have
been issued and sold by the Company for such price per share and the maximum consideration payable to the Company upon such exercise (assuming full exercise, conversion or exchange of Common Stock Equivalents, if applicable) will be deemed to have
been received by the Company. For the purposes of the preceding sentence, the “effective price per share for which Common Stock is issuable upon such exercise, conversion or exchange” is determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the issuance or sale of all such Common Stock Equivalents, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the exercise, conversion or
exchange thereof at the time such Common Stock Equivalents first become exercisable, convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise, conversion or exchange of all such 

  

 7 

 
Common Stock Equivalents. No further adjustment to the Exercise Price will be made upon the actual issuance of such Common Stock upon exercise, conversion or
exchange of such Common Stock Equivalents. 
  
 (C) Change in Option Price or Conversion Rate. If there is a change at any time in (i) the amount of additional consideration payable to the Company upon the exercise of any Options; (ii) the amount of additional consideration, if
any, payable to the Company upon the exercise, conversion or exchange of any Common Stock Equivalents; or (iii) the rate at which any Common Stock Equivalents are convertible into or exchangeable for Common Stock (in each such case, other than under
or by reason of provisions designed to protect against dilution), the Exercise Price in effect at the time of such change will be readjusted to the Exercise Price which would have been in effect at such time had such Options or Common Stock
Equivalents still outstanding provided for such changed additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. 
  
 (D) Calculation of Consideration Received. If any Common Stock, Options or Common Stock Equivalents
are issued, granted or sold for cash, the consideration received therefor for purposes of this Warrant will be the amount received by the Company therefor, before deduction of reasonable commissions, underwriting discounts or allowances or other
reasonable expenses paid or incurred by the Company in connection with such issuance, grant or sale. In case any Common Stock, Options or Common Stock Equivalents are issued or sold for a consideration part or all of which shall be other than cash,
the amount of the consideration other than cash received by the Company will be the fair market value of such consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company
will be the fair market value (closing bid price, if traded on any market) thereof as of the date of receipt. In case any Common Stock, Options or Common Stock Equivalents are issued in connection with any merger or consolidation in which the
Company is the surviving corporation, the amount of consideration therefor will be deemed to be the fair market value of such portion of the net assets and business of the non-surviving corporation as is attributable to such Common Stock, Options or
Common Stock Equivalents, as the case may be. The fair market value of any consideration other than cash or securities will be determined in good faith by an investment banker or other appropriate expert of national reputation selected by the
Company and reasonably acceptable to the holder hereof, with the costs of such appraisal to be borne by the Company. 
  
 (E) Exceptions to Adjustment of Exercise Price. Notwithstanding the foregoing, no adjustment will be made under this 

  

 8 

 
Section 11(b) in respect of Excluded Securities, except for the Excluded Securities listed in clause (u) of Section 2(a)(xvi) of the Certificate of
Designations and the Excluded Securities issued after the date of the Certificate of Designations in connection with an Approved Stock Plan (as defined in the Certificate of Designations) in excess of 10,000,000 shares of Common Stock (or securities
exercisable, convertible or exchangeable into 10,000,000 shares of Common Stock) pursuant to all such Approved Stock Plans on a cumulative basis. 
  
 (iii) Offerings of Other Property to Common Stock Holders. If the Company, at any time prior to the Termination Date, shall
distribute to all holders of Common Stock (and not to Holders of the Warrants) evidences of its indebtedness or assets or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section
11(b)(i)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of
which the denominator shall be the Closing Price determined as of the record date mentioned above, and of which the numerator shall be such Closing Price on such record date less the then per share fair market value at such record date of the
portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement
provided to the Holders of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above. 
  
 (iv) Minimum Adjustment of Exercise Price. No adjustment of the Exercise Price shall be made in an amount of less than 1% of the Exercise Price in effect at the time such adjustment is otherwise required to be
made, but any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which, together with any adjustments so carried forward, shall amount to not less than 1% of such Exercise
Price. 
  
 12. Reorganization, Reclassification, Merger,
Consolidation or Disposition of Assets. In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a
change in or distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose of its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or
purchase rights) in addition to or in lieu of common stock of the 

  

 9 

 
successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of
such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of assets, the successor or acquiring corporation (if other than the Company) shall expressly assume the due and punctual observance and performance of each and every covenant
and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of Warrant Shares for which this Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 12. For purposes of this Section
12, “common stock of the successor or acquiring corporation” shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject
to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 12 shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition
of assets. 
  
 13. Voluntary Adjustment by the Company. The
Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 
  
 14. Notice of Adjustment. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall state the number of Warrant
Shares (and other securities or property) purchasable upon the exercise of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property) after such adjustment, setting forth a brief statement of the facts requiring
such adjustment and setting forth the computation by which such adjustment was made. 
  
 15. Notice of Corporate Action. If at any time: 
  
 (a) the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or other
distribution, or any right to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property, or to receive any other right, or 
  
 (b) there shall be any capital reorganization of the
Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of 

  

 10 

 
all or substantially all the property, assets or business of the Company to, another corporation or, 
  
 (c) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company; 
  
 then, in any one or more of such
cases, the Company shall give to Holder (i) at least 20 days’ prior written notice of the date on which a record date shall be selected for such dividend, distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution,
liquidation or winding up, at least 20 days’ prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause also shall specify (i) the date on which any such record is to be taken for the
purpose of such dividend, distribution or right, the date on which the holders of Common Stock shall be entitled to any such dividend, distribution or right, and the amount and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their
Warrant Shares for securities or other property deliverable upon such disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if addressed to Holder at the last address of Holder appearing on the
books of the Company and delivered in accordance with Section 17(d). 
  
 16. Authorized Shares. The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of the Principal Market upon which the Common Stock may be listed. 
  

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its
articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations,

  

 11 

 
exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under
this Warrant. 
  
 Before taking any action which would result in
an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof. 
  
 17.
Miscellaneous. 
  
 (a)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Securities Purchase Agreement. 
  
 (b) Restrictions. The Holder acknowledges that the
Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws. 
  

(c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
  
 (d) Notices. Any notice, request or other document required or permitted to be given or delivered to
the Holder by the Company shall be delivered in accordance with the notice provisions of the Securities Purchase Agreement. 
  
 (e) Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or
purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company. 
  
 (f) Remedies. Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

  
 (g) Successors and Assigns. Subject to
applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and 

  

 12 

 
be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares. 
  
 (h) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and
the Holder. 
  
 (i) Severability. Wherever
possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
  

(j) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be
deemed a part of this Warrant. 
  
 ******************** 

 

 13 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly
authorized. 
  
 Dated:
                    , 2004 
  

			
	I2 TELECOM INTERNATIONAL, INC.
		
	By:	 	 
	 Name:
	 	Paul R. Arena
	 Title:
	 	Chief Executive Officer

  

 14 

 NOTICE OF EXERCISE 
  

	To:	i2 Telecom International, Inc. 

  
 (1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
  
 (2) Payment shall take the form of (check applicable box): 
  
  ̈ in lawful money of the United States; or

  
  ̈ the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 3(d), to exercise this Warrant with respect to the maximum
number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 3(d). 
  
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified
below: 
  

					
	 	  	 	  	 

  
 The Warrant Shares shall be delivered
to the following: 
  

					
	 	  	 	  	 
			
	 	  	 	  	 
			
	 	  	 	  	 

  
 (4) Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended. 
  

			
	[BUYER]
		
	By:	 	 

			
	 Name:
	 	 
	 Title:
	 	 

			
		
	 Dated:
	 	 

  

 ASSIGNMENT FORM 
  
 (To assign the foregoing warrant, execute 
 this form and supply required information. 
 Do not use this form to exercise the warrant.) 
  
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to 
  

							
	 	 	 whose address is
	 	 	 	 

  
 ___________________________________________________________________. 
  
 ___________________________________________________________________ 
  

							
	 	 	 Dated:                     ,           
 
	 	 
			
	Holder’s Signature: 	 	 	 	 
			
	Holder’s Address: 	 	 	 	 
			
	 	 	 	 	 

  
 Signature Guaranteed:
                                        
                                        
         
  
 NOTE: The signature to
this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

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