Document:

Exhibit
      10.6 Lewis
      Settlement Agreement and Release of Claims

    

    SETTLEMENT
      AGREEMENT AND RELEASE OF CLAIMS

     

    THIS
      SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
      (“Agreement”) is made by and among SHAWN
      LEWIS (“Lewis”),
      VoIP,
      INC., and
      all
      of its subsidiaries and affiliated companies (collectively hereafter known
      as
“VoIP” or “the Company”) and shall become effective on the Effective Date as set
      forth herein.

     

    RECITALS

     

    WHEREAS,
      heretofore the parties have previously entered into a Merger Agreement, whereby
      Caerus, Inc. merged with VoIP dated May 31, 2005 (the “Merger Agreement”);

     

    WHEREAS,
      LEWIS
      claims VoIP violated certain terms of the Merger Agreement; 

     

    WHEREAS,
      as part
      of the transaction consummated by the Merger Agreement, VoIP entered into an
      Employment Agreement with LEWIS dated May 27, 2005, which was subsequently
      amended on July 28, 2006 and again on September 14, 2006 (the “Employment
      Agreement”); 

     

    WHEREAS,
      LEWIS
      claims that VoIP has breached certain provisions of the Employment Agreement;
      

     

    WHEREAS,
      LEWIS
      has claimed damages and lost value of $1,594,768 for violations and/or breaches
      of the Merger Agreement and Employment Agreement; 

     

    WHEREAS,
      the
      parties hereto desire to settle, fully, finally and amicably, all claims against
      each other, including, but not limited to both the Merger and Employment
      Agreements; 

     

    WHEREAS,
      VoIP
      has previously granted LEWIS 3,000,000 stock options under an Option Agreement
      dated November 5, 2006 (the “Agreement”). 

     

    NOW,
      THEREFORE,
      in
      order to provide said benefits and, in consideration of the mutual promises,
      covenants and representations set forth below and other good and valuable
      consideration, the parties agree as follows:

     

    1. LEWIS
      Claims

     

    a. Pursuant
      to this Agreement, LEWIS agrees to settle all of his claims against VoIP with
      respect to VoIP’s obligation to file a registration statement for approximately
      600,000 shares of common stock of VoIP by June 30, 2005, and damages in the
      sum
      of $1,594,768, as a result of the LEWIS’s inability to sell on the open market,
      as a direct and indirect result of VoIP’s failure to register said shares of
      VoIP common stock. 

     

    b. The
      Company acknowledges that, while it filed a Registration Statement for the
      shares issued to LEWIS, the Registration Statement was not declared effective
      by
      the Securities and Exchange Commission, and that LEWIS sustained market loss
      damages in the sum of $1,594,768.

     

    c. LEWIS
      agrees that he has received the sum of $1,080,000, as consideration paid to
      him
      by the Company for settlement claims and general release of the Company, as
      well
      as for the payment of all of his legal expenses related to his claims, and
      that
      said sum will be a credit toward the exercise price of all the options granted
      to LEWIS by the Company under the Agreement.

     

    d. LEWIS
      understands that the within credit of $1,080,000 is subject to all applicable
      income and payroll taxes that may be imposed in connection with the settlement
      herein, and that LEWIS will be responsible for payment of said taxes.

     

    e. The
      Company agrees that it will assist LEWIS in the filing of any and all beneficial
      ownership reports required to be filed, pursuant to the Securities Exchange
      Act
      of 1934, as amended. 

     

    2. No
      Other Claims

     

    LEWIS
      represents and warrants that he has not filed against VoIP or any of its
      representatives, any claim, complaint, charge or suit, with any federal, state
      or other agency, court, board, office or other forum or entity as of the
      Effective Date, and that he will continue in the employ of the Company as its
      Chief Technology Officer. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3. General
      Release

     

    a.  As
      a
      material inducement to VoIP to enter into this Agreement, LEWIS, on behalf
      of
      himself and his heirs, executors, administrators, successors and assigns, does
      hereby irrevocably and unconditionally release, acquit and forever discharge
      VoIP, and its divisions, subsidiaries, affiliates and all owners, stockholders,
      predecessors, successors, assigns, agents, directors, officers, employees,
      representatives, and attorneys, acting by, through, under or in concert with
      VoIP or any parent, subsidiary or related entity, from any and all charges,
      complaints, grievances, claims, liabilities, obligations, promises, agreements,
      controversies, damages, actions, causes of action, suits, rights, demands,
      costs, losses, debts and expenses (including attorneys’ fees and costs actually
      incurred), of any nature whatsoever, known or unknown, suspected or unsuspected,
      joint or several, which VoIP has had or may hereafter claim to have had, against
      VoIP by reason of any matter, act, omission, cause or event whatever from the
      beginning of time. LEWIS agrees that this waiver and release does not apply
      to
      any rights or claims that may arise under the ADEA after the Effective Date
      of
      this Agreement. LEWIS acknowledges that the consideration given for this waiver
      and Release Agreement is in addition to anything of value to which LEWIS was
      already entitled. LEWIS further acknowledges that he has been advised by this
      writing that he should consult with an attorney prior
      to
      executing this Agreement. 

     

    This
      release and waiver of Claims specifically includes, but without limiting the
      foregoing general terms, the following: Any and all Claims which might have
      been
      asserted by LEWIS in any suit, claim, or charge, for or on account of any matter
      or things whatsoever that has occurred up to and including the date of this
      Agreement, under any and all laws, statutes, orders, regulations, or any Claim
      in contract or tort.

     

    4. Other
      Relief

     

    The
      parties agree that any dispute, controversy or claim between the parties arising
      out of, or relating to this Agreement, or any breach or asserted breach thereof,
      shall be determined and settled by arbitration in accordance with the rules
      of
      the American Arbitration Association in effect at the time the arbitration
      commences. The prevailing party in such arbitration shall be entitled to its
      reasonable costs and expenses (including reasonable attorneys’ fees) in such
      arbitration as part of the award. Judgment on the award may be entered in any
      court having jurisdiction thereof, and the parties specifically reserve all
      rights to appeal such judgment as if it were rendered in a court of
      law.

     

    5. Binding
      Agreement

     

    This
      Agreement shall be binding upon LEWIS and VoIP and their respective heirs,
      administrators, representatives, executors, successors and assigns and shall
      inure to the benefit of the parties hereto and their representatives, and each
      of them, and to their heirs, administrators, representatives, executors,
      successors and assigns.

     

    6. Attorneys’
      Fees

     

    Each
      party agrees to pay its own costs and attorneys’ fees incurred in achieving the
      settlement and release of this matter. If any party defaults under the terms
      of
      this Agreement, and the other party employs an attorney to enforce or interpret
      the terms of this Agreement, or to obtain a declaration of rights under this
      Agreement, whether or not legal proceedings are commenced, then such other
      party
      shall be entitled to recover, from the defaulting party, all attorneys’ fees,
      costs and expenses incurred. If a party commences an action against the other
      to
      enforce or interpret the terms of this Agreement, or to obtain a declaration
      of
      rights under this Agreement, the prevailing party shall be entitled to all
      attorneys’ fees, costs and expenses incurred in such action or any appeal or
      enforcement of such action.

     

    7. Non-Reliance

     

    Other
      than as expressly set forth in this Agreement, LEWIS and VoIP represent and
      acknowledge that, in executing this Agreement, they did not rely upon, and
      they
      have not relied upon any representation nor statement made by any of the parties
      hereto or by any of their agents, representatives or attorneys with regard
      to
      the subject matter, basis or effect of this Agreement or otherwise.

     

    8. Agreement
      Obligates, Extends and Inures

     

    The
      provisions of this Agreement shall be deemed to obligate, extend and inure
      to
      the benefit of the legal successors, assigns, transferees, grantees, heirs,
      shareholders, officers and directors of each signatory party hereto, and to
      those who may assume any or all of the above-described capacities subsequent
      to
      the execution and Resignation Date of this Agreement.

     

    
      
        
        

      

      
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    9. Non-Admission
      of Liability

     

    This
      Agreement shall not in any way be construed as an admission by VoIP that it
      has
      acted in any manner in violation of the common law or in violation of any
      federal, state or local statute or regulation.

     

    10. Method
      of Execution

     

    This
      Agreement may be executed in counterparts and each counterpart shall be deemed
      a
      duplicate original.

     

    11. Applicable
      Law

     

    This
      Agreement is deemed to have been made and entered into in the State of Texas
      and
      shall, in all respects, be interpreted, enforced and governed under the laws
      of
      said State. The language of all parts of this Agreement shall in all causes
      be
      construed as a whole, according to its fair meaning, and not strictly for or
      against any of the parties.

     

    12. Severability

     

    The
      provisions of this Agreement are severable, and should any provision of this
      Agreement be declared or be determined by any arbitrator or court to be illegal
      or invalid, any such provision shall be stricken, and the validity of the
      remaining parts, terms or provisions shall not be affected.

     

    13. Entire
      Agreement

     

    This
      Agreement sets forth the entire agreement between the parties and fully
      supersedes any and all prior agreements or understandings between the parties
      pertaining to the same subject matter, further, this Agreement may not be
      changed except by explicit written agreement by the parties hereto.

     

    14. Notices

     

    All
      notices under this Agreement are to be in writing and delivered by overnight
      courier and are deemed effective upon receipt. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    If
      to
      VoIP at:

    151
      Wymore Road, Suite 3000

    Altamonte
      Springs, FL 32714

    

    with
      a
      copy to:

    Baratta,
      Baratta & Aidala LLP at:

    597
      Fifth
      Avenue

    New
      York,
      NY 10017

     

    If
      to
      LEWIS at:

    

    with
      a
      copy to:

    Elizabeth
      Green, Esq. at:

     

    The
      parties further acknowledge that this Agreement has been entered into without
      fraud, duress, undue influence or mistake, and that upon the Effective Date,
      that this Agreement is not subject to rescission.

     

    
      	 	 	 
	 	VoIP,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Shawn
              Lewis
	 	
              

            

    

     

    
      
        
        

      

      
        4EXHIBIT
      10.1

    

    SUMMARY
      OF 2007 TEAM MEMBER PROFIT SHARING PLAN

    

    Under
      the
      2007 Team Member Profit Sharing Plan (the “Plan”), a Pool of Funds will be
      generated based upon a portion of each dollar of pre-tax income earned above
      certain progressive earnings per share targets in fiscal year 2007. The portion
      of each dollar of pre-tax income earned increases as higher earnings per share
      targets are achieved, up to a maximum of forty-five (45%) percent. Once the
      Pool
      of Funds equals 100% of the team member’s predetermined participation level,
      twenty (20%) percent of each dollar of pre-tax income earned is contributed
      to
      the Pool of Funds. There would be no cap on the amount of the bonus that could
      be earned. The profit sharing pool will be distributed pro rata according to
      each team member’s predetermined participation level, and, in the case of the
      executive team members which includes the executive officers, 90% of their
      predetermined participation level. Calculation of earnings per share is made
      after deduction of all other bonuses, including the Stock Bonus Plan identified
      below. The Committee may, at its option, adjust the Company’s earnings per share
      numbers upwards or downwards to reflect unusual events occurring during fiscal
      year 2007. Team member participation levels are stated as a percentage of base
      salary. 

    

    For
      each
      executive team member, which includes the executive officers, the Plan also
      provides that they may earn a percentage of the remaining ten (10%) percent
      of
      their predetermined participation level based on the percentage increase, if
      any, in the ending stock price of the Company’s Common Stock from $8.05 with
      100% of the predetermined participation level earned for a $2.50 increase (the
      “Stock Bonus Plan”). “Ending Stock Price” means the average closing price for
      the Company’s Common Stock as of the first three trading days of fiscal year
      2008. There would be no cap on the amount of the bonus that could be
      earned.

    

    Participating
      team members must be employed on or before December 31, 2006 in order to be
      eligible. Those hired between July 1, 2006 and December 31, 2006 will receive
      a
      pro-rata portion of their individual participation level. Participating team
      members must be employed by the Company at the date of the payment in fiscal
      year 2008.

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