Document:

Exhibit 10.59 Loan Agreement

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT (this "Agreement") is made as of May 31st, 2001, among
Augustine Fund, L.P., an Illinois limited partnership ("Augustine"), The Shaar
Fund Ltd., a British Virgin Islands corporation ("Shaar" and together with
Augustine, the "Lenders"), and IPVoice Communications, Inc., a Nevada
corporation (the "Corporation").

                                    RECITALS

     A. The Corporation requires financing in order to meet certain specified
operating expenses expected to be incurred over the next six-month period.

     B. The Lenders have agreed to extend to the Corporation, subject to the
terms and conditions set forth herein, loans in an aggregate principal amount of
up to $695,574.

     C.  Such loans shall be evidenced by promissory notes which will be
convertible into shares of the common stock of the Corporation pursuant to the
terms hereof and the terms of such promissory note.

                                   AGREEMENTS
In consideration of the recitals and the mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE I
                                   Definitions

     1.1 Definitions.  In addition to the capitalized terms defined elsewhere in
this Agreement, the following capitalized terms shall have the following
respective meanings when used in this Agreement:

     "Affiliate" as applied to any specified Person means any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such specified Person. The term "control" (including, with
correlative meanings, the terms "controlling" and "controlled by"), as applied
to any Person, means the possession, directly or indirectly, of 10% or more of
the voting power of such Person or the power otherwise to direct or cause the
direction of the management and policies of that Person, whether through voting,
by contract or otherwise. For purposes of this paragraph, "voting power" of any
Person means the total number of votes which may be cast by the holders of the
total number of outstanding shares of stock of any class or classes of such
Person in any election of directors of such Person. For purposes of this
Agreement, all executive officers and directors of a Person shall be deemed to
be Affiliates of such Person.

     "Business Day" means a day other than a Saturday, Sunday or other day on
which commercial banks in New York, New York, are authorized or required by law
to close.

     "Capitalized Lease" means any lease of property (whether real, personal or
mixed) which, in conformity with GAAP, is accounted for as a capitalized lease
or a capital expenditure on the Corporation's balance sheet.

     "Cash  Flow  Forecast" means that certain IPVoice Communications, Inc.
Monthly Cash Flow Forecast - Combined Business dated May 8, 2001, a copy of
which is attached hereto as Exhibit A.

     "Change of Control Event" means (a) the closing of a sale of 50 percent or
more of the assets utilized by the Corporation in its business in bulk either in
one transaction or in a series of related transactions; or (b) the closing of an
equity issuance, sale, transfer or other disposition or transaction including
reorganization or consolidation or merger after which the shareholders of the
Corporation as of the date of this Agreement no longer (i) have the legal and
contractual right or power to designate a majority of the members of the board
of directors of the Corporation or (ii) own and control at least 60 percent of
the Corporation's outstanding Common Stock on a fully-diluted basis.

     "Closing" means the closing of the transactions contemplated by this
Agreement.

     "Closing Date" has the meaning ascribed to it in Section 3.1.

     "Code" means the Internal Revenue of Code of 1986, as amended.

     "Common Stock" means the common stock of the  Corporation,  $.001 par value
per share.

     "Corporation" means IPVoice Communications, Inc., a Nevada corporation.

     "Event of Default" has the meaning ascribed to it in Section 9.1.

     "Founders" means Barbara Will, Condor Worldwide, Ltd., Anthony Welch and
International Investment Partners, Lt. (IIP).

     "GAAP" means generally accepted accounting principles, consistently
applied.

     "Guaranty and Pledge Agreement" means that certain Guaranty and Pledge
Agreement among the Lenders and the Founders substantially in the form of
Exhibit D attached hereto.

     "Indebtedness" of any Person shall mean the principal of, premium, if any,
and unpaid interest on: (a) Indebtedness for Borrowed Money; (b) obligations for
which a Person is obligated pursuant to a guaranty; (c) all indebtedness secured
by any Lien upon property owned by such Person, even though such Person has not
in any manner become liable for the payment of such indebtedness, but only to
the extent that such indebtedness is secured by such Lien; (d) the principal
portion only of all indebtedness of such Person created or arising under any
Capitalized Lease; (e) all indebtedness of such Person arising under a
conditional sale or other title retention or security agreement with respect to
property acquired by such Person even though the and remedies of the seller,
lessor or lender under such agreement or lease in the event of default may be
limited to repossession or sale of such property; (f) all obligations of such
Person issued or assumed for the deferred purchase price of property or
services, including all trade payables; and (g) all obligations of such Person
under or with respect to letters of credit, but only to the extent of the face
amount of such letters of credit.

     "Indebtedness for Borrowed Money" means any indebtedness or obligations
upon which interest is or is customarily charged or any indebtedness or
obligation issued in substitution for or exchange of such Indebtedness for
Borrowed Money, in any case, whether evidenced by notes, bonds, debentures or
otherwise.

     "Lease" means that certain Lease between the Corporation and Creative
Capital Leasing Group, LLC.

     "Lenders" means Augustine Fund, L.P. and The Shaar Fund Ltd.

     "Lien" means any mortgage, deed of trust, lien, security interest, pledge,
lease, conditional sale contract, claim, charge, easement, right of way,
assessment, restriction and other encumbrance of every kind.

     "Loans" means, at any given time, the aggregate principal amount
outstanding under the Notes.

     "Notes" means those certain promissory notes of the Corporation in favor of
the Lenders and in the forms attached hereto as Exhibits B-1 and B-2, as amended
and in effect from time to time, and any note or notes issued in exchange for
such notes.

     "Operative Documents" means this Agreement, the Notes, the Security
Agreement, the Registration Rights Agreement and the Guaranty and Pledge
Agreement.

     "Person" means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or a governmental entity or any department, agency
or political subdivision thereof.

     "Registration Rights Agreement" means that certain Registration Rights
Agreement among the Corporation and the Lenders substantially in the form
attached hereto as Exhibit E.

     "SEC" means the Securities and Exchange Commission.

     "Security Agreement" means that certain Security Agreement among the
Corporation and the Lenders substantially in the form attached hereto as Exhibit
C.

     1.2  Accounting Principles.  Where the character or amount of any asset or
liability or an item of income or expense is required to be determined, or any
accounting computation is required to be made, for the purpose of this
Agreement, such determination or calculation shall be made, to the extent
applicable and except as otherwise specified in this Agreement, in accordance
with GAAP.

                                   ARTICLE II
                              Authorization of Loan

     2.1 The Loans.  Commencing on the Closing Date, subject to the terms and
conditions of this Agreement and in accordance with the draw request procedure
set forth in Section 2.2 below, each Lender shall make such loans to the
Corporation as the Corporation shall from time to time request from the Lenders,
up to the maximum amount set forth below for each calendar month specified, but
in any case in an aggregate principal amount not to exceed Six Hundred Ninety
Five Thousand Five Hundred Seventy Four Dollars ($695,574) (the "Loans"):

                                                 Maximum Draws
                  Draw Period                  from both Lenders
                  5/1/01  - 5/31/01     -        $239,115.00
                  6/1/01  - 6/30/01     -         155,784.00
                  7/1/01  - 7/31/01     -          83,292.00
                  8/1/01  - 8/31/01     -          94,017.00
                  9/1/01  - 9/30/01     -          38,563.00
                  10/1/01 - 10/31/01    -          26,589.00
                  11/1/01 - 11/30/01    -          50,617.00
                  12/1/01 - 12/31/01                    0.00
                  1/1/02  - 1/31/02                 7,597.00

     The Corporation agrees to use the proceeds of the Loans solely to satisfy
the Indebtedness and operating costs specifically set forth in the Cash Flow
Forecast.

     2.2 Draw Request Procedure; Funding. The Corporation may request a maximum
of two (2) advances per month by delivering to both Lenders, three (3) Business
Days prior to the 15th of such month (or the immediately preceding Business Day
if the 15th is not a Business Day) and the last Business Day of each calendar
month, a draw request in the form attached hereto as Exhibit F (a "Draw
Request"), which shall describe in detail the amount of funds requested and the
specific Indebtedness or other operating expenses that the Corporation intends
to pay with the requested funds. Along with the Draw Request, the Corporation
shall also deliver to the Lenders the cash flow report required pursuant to
Section 6.1. Provided that the Corporation complies with the Draw Request
procedure, within three (3) Business Days of receiving a Draw Request, Shaar
will advance the initial $100,000 requested by the Corporation and Augustine
will advance the next $100,000 requested by the Corporation. In connection with
each Draw Request thereafter, Shaar may, in its sole discretion, elect to fund
any portion of the amount requested by the Corporation by so notifying Augustine
the next Business Day after receiving a Draw Request and then delivering such
amount to the Corporation within three (3) Business Days after receiving the
Draw Request; provided, however, that the aggregate principal amount of the
Loans outstanding to Shaar at any time shall not exceed fifty percent (50%) of
the aggregate principal amount of all Loans then outstanding. Provided that the
Corporation complies with the Draw Request procedure, within three (3) Business
Days of receiving a Draw Request, Augustine will advance to the Corporation the
balance of any Draw Request not funded by Shaar. Notwithstanding anything to the
contrary herein, a Lender shall not have any obligation to honor a Draw Request
if such Lender has reason to believe that any certifications made by the
Corporation in connection with such Draw Request are not true and correct as of
the date of disbursement. The Loans shall be evidenced by the Notes and upon
honoring a Draw Request, a Lender shall record such Draw Request on the grid
attached to its respective Note.

     2.3  Interest. (a) Interest  shall accrue on the principal amount of the
Loans outstanding from time to time at a rate of eight percent (8%) per annum,
calculated on the basis of a 360-day year. Interest shall be due and payable
quarterly in arrears on the last Business Day of each September, December, March
and June commencing on September 30, 2001 and continuing until all amounts owing
under the Notes have been either paid in full or converted into Common Stock.
Notwithstanding anything elsewhere contained herein to the contrary, the rate of
interest payable hereunder shall in no event exceed the maximum lawful rate
which may be charged under applicable law.

     (b) The interest payable to each Lender for any given period shall be paid,
at such Lender's election, either in cash or in shares of Common Stock (such
shares being referred to as "Interest Payment Shares"). In the event that a
Lender elects to receive Interest Payment Shares in lieu of cash with respect to
an interest payment payable, the Lender shall provide written notice of such
election to the Corporation at least three (3) days prior to the scheduled
interest payment date. The number of Interest Payment Shares issuable in respect
of any such interest payment shall be calculated in accordance with the
conversion procedure set forth in the Notes as if such payment is a conversion
of principal in an amount equal to the interest payment and the scheduled
interest payment date is the conversion date. The Corporation shall promptly
(but in no event later than three (3) Business Days after the scheduled interest
payment date) issue to the applicable Lender a certificate for the Interest
Payment Shares issuable with respect to a scheduled interest payment. Regardless
of the date of issuance of any such certificate, the applicable Lender shall be
deemed to have become, on the scheduled interest payment date, the holder of
record of the number of Interest Payment Shares issuable with respect to such
scheduled interest payment. The issuance of certificates for Interest Payment
Shares will be made without charge to the holder for any issuance tax or other
governmental charge in respect thereof or other cost incurred by the Corporation
in connection with such election to receive Interest Payment Shares in lieu of a
cash interest payment. The Corporation will take all such actions as are
necessary in order to ensure that any Interest Payment Shares will be validly
issued, fully paid and nonassessable, free of preemptive rights and free from
all taxes, liens, charges and security interests with respect to the issuance
thereof.

     (c) Notwithstanding anything to the contrary set forth herein, in no event
shall a Lender be entitled to elect to receive Interest Payment Shares in lieu
of a cash interest payment if, upon giving effect to such conversion, such
election would cause the aggregate number of shares of Common Stock beneficially
owned by such Lender and its affiliates to exceed 4.99% of the outstanding
shares of the Common Stock following such conversion. For purposes of the
foregoing proviso, the aggregate number of shares of Common Stock beneficially
owned by the Lender and its affiliates shall include the number of Interest
Payment Shares issuable in connection with such scheduled interest payment with
respect to which the determination of such proviso is being made. Except as set
forth in the preceding sentence, for purposes of this subsection (c), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. The limitations imposed by this subsection (c)
shall no longer apply, and the Lenders may elect to receive Interest Payment
Shares without restriction, irrespective of the resulting beneficial ownership
of the Corporation's Common Stock, should any of the following events occur: (I)
The Corporation shall: (i) become insolvent; (ii) admit in writing its inability
to pay its debts generally or as they become due; (iii) make an assignment for
the benefit of creditors or commence proceedings for its dissolution; or (iv)
apply for, or consent to the appointment of, a trustee, liquidator, or receiver
for its or for a substantial part of its property or business; or (II) A
trustee, liquidator or receiver shall be appointed for the Corporation or for a
substantial part of its property or business without the Corporation's consent
and such appointment is not discharged within sixty (60) days after such
appointment; or (III) Any governmental agency or any court of competent
jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of
the Corporation; or (IV) Any money judgment, writ or note of attachment, or
similar process in excess of Five Hundred Thousand United States Dollars
(US$500,000.00) in the aggregate shall be entered or filed against the
Corporation or any of its properties or assets; or (V) bankruptcy,
reorganization, insolvency or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Corporation and, if instituted against the
Corporation, shall not be dismissed within sixty days after such institution or
the Corporation shall by any action or answer approve of, consent to, or
acquiesce in any such proceedings or admit the material allegations of, or
default in answering a petition filed in, any such proceeding.

     2.4 Maturity Date. The outstanding principal amount of the Loans, and any
interest accrued but unpaid, shall be payable in full on the third anniversary
of the date of this Agreement, or if such day is a not a Business Day, on the
next Business Day thereafter.

     2.5 Optional Prepayment. The Corporation may, at its option, prepay either
or both Notes in whole by giving written notice thereof to the holder of the
Note to be prepaid not less than thirty (30) days prior to the date fixed for
such prepayment in such notice. Unless the holder of the Note to be prepaid
elects to convert the outstanding principal of such Note to Common Stock as
contemplated by Section 7.1 prior to the date fixed for prepayment, the
Corporation shall deliver to the holder of the Note to be prepaid the amount to
be prepaid on the date fixed for such prepayment.

                                   ARTICLE III
                                     Closing

     3.1  Closing.  The Closing will be held at the offices of Foley & Lardner,
Three First National Plaza, Suite 4100, Chicago, Illinois on May ___, 2001 (the
"Closing Date"), at 10 a.m., C.D.T. time, or at such other time, date and place
as may be agreed to by the Corporation and the Lenders.

                                   ARTICLE IV
                              Conditions to Closing

     The obligation of the Lenders to extend the Loans is subject to the
fulfillment to the Lenders' satisfaction at or prior to the Closing of each of
the following conditions:

     4.1  Representations and Warranties.  The representations and warranties
contained in Article V shall be true and correct when made, and shall be true
and correct as of the Closing as if made at the Closing.

     4.2  Performance; No Event of Default.  All covenants, agreements and
conditions contained in this Agreement to be performed or complied with by the
Corporation at or prior to the Closing shall have been performed or complied
with and there shall exist no Default or Event of Default.

     4.3  Compliance Certificate.  At the Closing, the Corporation shall have
delivered to the Lenders a certificate of the Corporation executed by its
president or other executive officer acceptable to the Lenders, dated the
Closing Date, certifying to (i) the fulfillment of the conditions specified in
Sections 4.1 and 4.2 of this Agreement and (ii) such other matters as the
Lenders shall have reasonably requested.

     4.4  Secretary's Certificate.  At the Closing, the Corporation shall have
delivered to the Lenders copies of each of the following, in each case certified
to be in full force and effect on the Closing Date by the Secretary of the
Corporation:

          (i)  the articles of incorporation of the Corporation as of the
     Closing, certified by the Secretary of State of the State of Nevada as of a
     date not more than ten days prior to the Closing Date;

          (ii) the bylaws of the Corporation; and

          (iii)  resolutions of the Board of Directors of the Corporation, the
     form and substance of which are reasonably satisfactory to the Lenders, (x)
     authorizing  (1) the execution, delivery and performance of this Agreement
     and the other Operative Documents and the transactions contemplated hereby
     and thereby, (2) the execution, delivery and performance of the Notes, and
     (3) the issuance of the Interest Payment Shares and the shares of Common
     Stock issuable upon conversion of the Notes.

     4.5  Notes.  At the Closing, the Corporation shall have executed and
delivered the Notes to the Lenders.

     4.6  Good Standing Certificates.  At the Closing, the Corporation shall have
delivered certificates of good standing relating to the Corporation from the
Secretary of State of the States of Nevada and Arizona, in each case dated not
more than ten days prior to the Closing Date.

     4.7  Legal  Investment;  Compliance  with  Laws.  As of the Closing, the
extension of the Loan by the Lenders shall be legally permitted by all laws,
rules and regulations of the jurisdictions and governmental authorities and
agencies to which the Corporation and the Lenders are subject.

     4.8  Proceedings and Documents.  As of the Closing, all proceedings of the
Corporation in connection with the transactions contemplated hereby, by the
other Operative Documents and all documents and instruments incident to such
transactions, shall be reasonably satisfactory in form and substance to the
Lenders, and the Lenders shall have received at or prior to the Closing copies
of all such legal documents or proceedings taken in connection with the
consummation of the transactions as they reasonably shall have requested.

     4.9  Security Agreement. At the Closing, the Corporation shall have executed
and delivered to the Lenders the Security Agreement and any such financing
statements or other documents, agreements, certificates or instruments that the
Lenders may reasonably request in connection therewith.

     4.10 Guaranty and Pledge Agreement. At the Closing, the Founders shall have
executed and delivered to the Lenders the Guaranty and Pledge Agreement along
with the original stock certificates evidencing the securities pledged
thereunder either endorsed in blank or accompanied by validly executed
assignments separate from certificate.

     4.11 Registration Rights Agreement.  At the Closing, the Corporation shall
have executed and delivered to the Lenders the Registration Rights Agreement.

                                    ARTICLE V
                Representations and Warranties of the Corporation

     The Corporation  hereby  represents and warrants to the Lender as set forth
below:

     5.1  Organization and Standing of the  Corporation.  The Corporation is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada. The Corporation is qualified to do business as a foreign
corporation under the laws of the State of Arizona. The Corporation does not own
or lease property or engage in any activity in any other jurisdiction that would
require its qualification to do business as a foreign corporation in such
jurisdiction.

     5.2 Power.  The Corporation has all requisite legal and corporate power to
enter into this Agreement, the Notes and the other Operative Documents to which
it is a party, to issue the Notes, to issue the Interest Payment Shares and the
shares of Common Stock issuable upon conversion of the Notes and to otherwise
carry out and perform its obligations under the terms of this Agreement, the
Notes and the other Operative Documents to which it is a party.

     5.3 Authorization and Binding Effect.  All corporate action on the part of
the Corporation and its directors necessary for the authorization, execution,
delivery and performance by the Corporation of this Agreement and the
consummation of the transactions contemplated hereby, and for the authorization,
issuance and delivery of the Notes and the authorization of the issuance of the
Interest Payment Shares and the shares of Common Stock issuable upon conversion
of the Notes, has been taken. This Agreement is and, upon its execution and
delivery by the Corporation, the Notes will be, a legal, valid and binding
obligation of the Corporation, enforceable against the Corporation in accordance
with their respective terms, except as limited by bankruptcy, insolvency or
other laws affecting creditors' rights generally or by the availability of
equitable remedies.

     5.4 No Violation. Neither the execution and delivery by the Corporation of
this Agreement, the Notes or the other Operative Documents to which it is a
party, the consummation by the Corporation of the transactions provided for
herein and therein or contemplated hereby and thereby, nor the fulfillment by
the Corporation of the terms hereof or thereof, will (a) conflict with or result
in a breach of any provision of the articles of incorporation or by-laws of the
Corporation; (b) result in a default, give rise to any right of termination,
cancellation, acceleration or imposition of any Lien upon any assets of the
Corporation, or require any consent or approval under any of the terms,
conditions or provisions of any material contract or agreement to which the
Corporation is a party or by which the Corporation or any of its assets may be
bound; or (c) violate any law, judgment, order, writ, injunction, decree,
statute, rule or regulation of any court, administrative agency, bureau, board,
commission, department or other governmental entity applicable to the
Corporation or any of its assets.

     5.5 Financial Statements.  The Corporation has furnished the Lenders with
the revenue and margin forecast, the monthly cash flow forecast and the accounts
payable payment schedule for the period May 1, 2001 through April 30, 2002 and
an accounts payable aging report as of April 27, 2001 (collectively, the
"Financial Statements"). The Financial Statements have been prepared by the
Corporation in good faith, based upon information and assumptions believed by
the Corporation to be reasonable, and represent, to the best knowledge and
belief of the Corporation, the financial position of the Corporation as of the
Closing and reasonable forecasts as to the Corporation's future operations and
financial performance. The Corporation does not have any material liabilities
(fixed or contingent, including, without limitation, any tax, warranty or
product liabilities) which are, or Indebtedness which is, not fully reflected or
provided for in the Financial Statements. The Corporation does not know, nor
does it have reasonable grounds to know, of any basis for the assertion against
the Corporation of any material liabilities of the Corporation which are not
adequately reflected or reserved against on the Financial Statements. For
purposes of this Section 5.5, "material liabilities" shall mean liabilities in
excess of $10,000 in the aggregate.

     5.6 Validity of Common Stock. The Interest Payment Shares and the shares of
Common Stock issuable upon the conversion of the Notes have been duly and
validly reserved by the Corporation, and, upon issuance in accordance with the
conversion provisions of the Notes, such share of Common Stock will be duly and
validly issued, fully paid, non-assessable and free and clear of all Liens.

     5.7 Contracts.  Except for those contracts, agreements and instruments set
forth on Schedule 5.7 (the "Contracts"), this Agreement and the other Operative
Documents to which the Corporation is a party and all documents executed in
connection therewith, the Corporation is not a party to any (a) lease agreement
concerning any real property or any material personal property; (b) any
agreement granting any Person registration rights; or (c) contract, lease,
agreement, plan, arrangement, obligation or commitment (i) evidencing
Indebtedness for Borrowed Money or any guarantee of such Indebtedness; (ii)
involving delivery or licensing by or to the Corporation of money, goods or
other assets or services in each case with aggregate payments in excess of
$10,000; or (iii) that would otherwise be considered a material contract. The
Corporation has heretofore delivered or made available to the Lenders true and
complete copies of all such Contracts. All the Contracts are valid and in full
force and effect, and, to the best knowledge of the Corporation, there exists no
material breach or default, or event which, with notice or lapse of time or
both, would constitute any such material breach or default by any party thereto.
The Corporation has not received any notice of cancellation or renewal of any of
the Contracts.

     5.8 Proprietary Rights. The Corporation owns all patents, patent rights,
trademarks, trademark rights, trade names, trade name rights, service marks,
service mark rights and copyrights set forth on Schedule 5.8 attached hereto
(collectively, "Proprietary Rights"). The Proprietary Rights are all of such
rights necessary to conduct its business as presently conducted or which are
necessary in connection with the performance of any Contract to which the
Corporation is a party without conflict with or infringement upon any valid
rights of others, and the use of such Proprietary Rights will not infringe upon
or conflict with, the asserted rights of others.

     5.9 SEC Documents.  Since at least November 3, 1999 (the date on which the
Corporation filed its initial filing, Form 10SB12(g), with the SEC), the
Corporation has timely filed all reports, schedules, forms, statements and other
documents to be filed by it with the SEC pursuant to the reporting requirements
of the Securities Exchange Act of 1934, as amended (the "1934 Act") (all of the
foregoing filed prior to the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents (other than exhibits)
incorporated by reference therein, being hereinafter referred to as the "SEC
Documents"). The Corporation has delivered to the Lenders as requested by the
Lenders true and complete copies of the SEC Documents. As of their respective
dates, the SEC Documents complied in all material respects with the requirements
of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

                                   ARTICLE VI
                             Reporting and Payments

     6.1 Financial Reports.  The Corporation  will deliver to each Lender along
with each Draw Request (or within fifteen (15) days after the end of any
calendar month during which no Draw Requests were made), a report substantially
in the form of the Financial Statements certified by the president or the chief
financial officer of the Corporation, detailing the Corporation's cash flow for
such calendar month (or first portion thereof, as applicable) and providing a
comparison of the actual cash flow results to the Cash Flow Forecast. The
Corporation will promptly (but in any event within five (5) Business Days after
learning of) deliver to each Lender, written notice of any of the following:

     (a)  (i) any pending or threatened material litigation (for purposes hereof
          litigation with less than $100,000 in issue shall not be  considered
          material) affecting the Corporation; and (ii) any pending or
          threatened administrative or arbitration proceeding or investigation
          affecting the Corporation, or any order or directive from any
          regulatory body or agency having jurisdiction over the Corporation
          which proceeding, investigation, order or directive could reasonably
          be expected to have a material adverse effect on the Corporation;

     (b)  any Event of Default under this Agreement, which notice will specify
          the nature and period of existence thereof and the actions  taken or
          proposed to be taken with respect thereto; or

     (c)  (i) any disputes with material customers or vendors; (ii) any default
          under any instrument evidencing Indebtedness of the Corporation in the
          aggregate outstanding amount of $10,000 or more or under any material
          contract involving  payments, delivery or licensing by or to  the
          Corporation  of money, goods or other assets or services having an
          aggregate value of more than $10,000; or (iii) any other event which
          has had, or would reasonably be expected to have, a material adverse
          effect on the Corporation.

     6.2 Inspection Rights. The Corporation will permit the Lender to visit and
inspect the properties of the Corporation, review its books and records (and to
make extracts therefrom), and to discuss its affairs, finances and accounts with
their officers and personnel, all at such reasonable times and as often as any
Lender may reasonably request upon reasonable notice to the Corporation, but
without hindrance or delay.

     6.3  Board Observation Rights. The Corporation shall permit one
representative designated by Augustine (the "Lender Representative") to attend
as an observer all meetings of the Board of Directors of the Corporation and all
meetings of any committee of the Board of Director. The Corporation agrees to
give the Lender Representative the same notice of all such meetings at
approximately the same time as such notice is given to the members of the Board
of Directors, and the Lender Representative will be given the opportunity to
participate in any telephonic meetings of the Board of Directors. If the
Corporation's Board of Directors (or any committee thereof) proposes to take any
action by written consent in lieu of a meeting, the Corporation shall give
written notice thereof to the Lender Representative at least five (5) days prior
to the effective date of such consent describing in reasonable detail the nature
and substance of such action.

     6.4 Pro Rata Payments and Treatment. (a) All interest payments and payments
or prepayments of principal shall be made and applied pro rata on all
outstanding Notes in accordance with the respective unpaid principal amounts
thereof.

     (b) If either Lender (a "Benefited  Lender")  shall at any time receive any
payment under such Benefited Lender's Note (whether from the Corporation or
otherwise by set-off, exercise of subrogation rights, exercise of guaranty
rights or otherwise) in a greater proportion than its ratable share, such
Benefited Lender shall deliver such excess payment ratably to the other Lender
and thereafter shall be deemed to have purchased for cash from such other Lender
such participations in the other Lender's Note as shall be necessary to cause
the Benefited Lender to share the excess payment ratably with the other Lender;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from the Benefited Lender, such purchase shall be
rescinded, and the excess payment returned to the Benefited Lender to the extent
of such recovery, but without interest. The Corporation agrees that each Lender
so purchasing a participation in another Lender's Note may, to the fullest
extent permitted by law, exercise all its rights of payment (including, but not
limited to, rights of set-off, subrogation or guaranty) with respect to such
participation so purchased as if such Lender were the direct creditor of the
Corporation in the amount of such participation.

     (c) To the extent the Corporation agrees to modify the Note held by one of
the Lenders (each, a "Modification"), the Corporation shall offer to make
similar modifications to the Note held by the other Lender. Furthermore, to the
extent that the Corporation agrees to provide any additional consideration,
whether in the form of cash, equity or other rights or accommodations, to either
Lender with respect to any Operative Document (including, without limitation, in
connection with a request for a waiver of any term or provision of an Operative
Document), the Corporation shall offer to provide the same consideration to the
other Lender.

     (d) If any fee or consideration is offered to a Lender in connection with
any Modification, waiver of any provision of the Operative Documents, or
otherwise, a ratable portion of such fee or consideration shall be paid to each
Lender.

     6.5 Payment Set Aside. If and to the extent the Corporation makes a payment
or payments to either Lender hereunder or under the Notes or any Lender enforces
its rights or exercises its right of setoff, and such payment or payments or the
proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by, or are required to be refunded, repaid or otherwise restored
to the Corporation, a trustee, receiver, or any other Person under any law
(including any bankruptcy law, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or
part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

     6.6 Mandatory Prepayment. The occurrence of a Change of Control Event shall
give the holder of a Note, at its option, the right to demand the prepayment of,
and upon such demand the Corporation must prepay, the entire then outstanding
principal amount of such Note held by such holder subject to such demand for
prepayment and all of the interest accrued and unpaid on such Note to the date
of such prepayment (a "Mandatory Prepayment"). The Corporation agrees to give
the holders of the Notes written notice of a Change of Control Event (specifying
the details thereof, to the extent known), as soon as reasonably practical after
the Corporation has made a determination that in the Corporation's good faith
judgment a Change of Control Event is reasonably likely to occur (but in no
event more than five (5) days after making such determination) and in any event
not less than the maximum number of days as is reasonably practical prior to the
Change of Control Event (taking into account the timing and nature of the offer,
if any, that will be the basis for the Change of Control Event) (the "Change of
Control Notice"). The prepayment option described above may be exercised by such
holder's giving the Corporation written notice to that effect (the "Prepayment
Notice") not more than ten (10) days after a holder of a Note receives a Change
of Control Notice. The date of prepayment shall be the date of the Change of
Control Event. The Prepayment Notice can be revoked any time prior to the date
of prepayment if a material change occurs in the terms of the Change of Control
Event.

                                   ARTICLE VII
                            Conversion; Registration

     7.1  Conversion.  On the terms set forth in the Notes (and subject to the
restrictions on conversion set forth therein relating to the maximum percentage
of outstanding capital stock the applicable Lender may hold), each Note shall
convert into shares of Common Stock upon the election of the holder of such Note
in accordance with the particular procedures more fully described in the Notes.
The number of shares of Common Stock into which each Note is convertible is set
forth in the Notes.

     7.2  Registration.  The  Interest  Payment  Shares and the shares of Common
Stock issuable upon conversion of the Notes are entitled to benefits and subject
to the terms of the Registration Rights Agreement. The Corporation shall keep or
cause to be kept a copy of the Registration Rights Agreement and any amendments
thereto at its chief executive office and shall furnish, without charge, copies
thereof to either Lender upon request.

                                  ARTICLE VIII
                                    Covenants

     So long as any Note remains outstanding,  the Corporation shall comply with
the following covenants:

     8.1 Adherence to Business Plan. The Corporation shall use its best efforts
to conduct its business in substantial compliance with the Cash Flow Forecast.
Without limiting the generality of the foregoing, except as specifically
contemplated in the Cash Flow Forecast, the Corporation shall not (a) make, or
commit to make, any capital expenditures; or (b) issue, incur, assume or permit
to exist any Indebtedness (other than the Indebtedness evidenced by the Notes).
The Corporation shall not permit its monthly cash flow with respect to any
calendar month to be more than ten percent (10%) greater than the amount set
forth in the Cash Flow Forecast with respect to such period.

     8.2  Liens.  The Corporation shall not create or permit to exist any Lien
with respect to any assets now or hereafter existing or acquired, except the
following: (i) Liens for current taxes or special assessments not delinquent or
for taxes or special assessments being contested in good faith and by
appropriate proceedings that do not subject the Company or any of its
Subsidiaries to penalties under the Code and for which adequate reserves shall
have been established and are then being maintained in accordance with GAAP;
(ii) Liens incurred or deposits made in the ordinary course of business in
connection with worker's compensation, unemployment insurance or other forms of
governmental insurance or benefits; (iii) Liens in favor of the lessor pursuant
to the Lease; (iv) mechanics', workers', materialmen's and warehousemen's Liens
arising in the ordinary course of business in respect of obligations which are
not delinquent or which are being contested in good faith and by appropriate
proceedings and for which adequate reserves shall have been established and are
then maintained in accordance with GAAP (or deposits made to obtain the release
of such Lien); (v) easements and rights of way restrictions that do not
individually or in the aggregate interfere with the ordinary conduct of the
business; and (vii) Liens approved in writing by the Lenders.

     8.3 Compliance With Laws. The Corporation agrees to comply with all laws,
rules, regulations, judgments, orders and decrees of any governmental or
regulatory authority applicable to it and its respective assets, and with all
contracts and agreements to which it is or shall become a party, and to perform
all obligations which it has or shall incur, the failure to comply with which or
perform would reasonably be expected to have a material adverse effect on the
business, property, assets, operations, financial condition or prospects of the
Corporation.

     8.4 Payment of Taxes. The Corporation agrees to pay all taxes, assessments
and other governmental charges levied upon any of its assets or in respect of
its franchises, businesses, income or profits before the same become delinquent,
except that (unless and until foreclosure, sale or other similar proceedings
shall have been commenced) no such tax, assessment or charge need be paid if it
is being contested in good faith and by appropriate measures promptly initiated
and diligently conducted if (a) such reserve or other appropriate provision, if
any, as shall be required by GAAP shall have been made therefor, and (b) such
contest could not reasonably be expected to have a material adverse effect on
the Corporation's business, property, assets, operations or condition, financial
or otherwise.

     8.5 Corporate Existence and Property. The Corporation agrees to preserve,
protect, and maintain its existence and all rights, franchises, accreditations,
privileges, permits, licenses and properties to the extent necessary for the
conduct of its business.

     8.6 Payment of Indebtedness; Fulfillment of Obligations. The Corporation
shall pay all amounts owed on any Indebtedness of the Corporation as and when
the same shall become due and payable by the lapse of time, by declaration, by
call for redemption or otherwise. The Corporation shall comply in all material
respects, with all other material contracts or agreements as the obligations
thereunder become due, except that no such Indebtedness need be paid if it is
being contested in good faith and by appropriate measures promptly initiated and
diligently conducted if the Corporation either posts a bond or otherwise
establishes adequate reserves (as determined in accordance with GAAP
consistently applied) therefor.

     8.7 Mergers, Consolidations and Sales; Permitted Acquisitions.  Without the
prior written consent of the Lenders, the Corporation shall not (a) be a party
to any merger or consolidation with any other Person, or purchase or otherwise
acquire all or substantially all of the assets or stock of any class of, or any
partnership, membership, or joint venture interest in, any other Person; or (b)
sell, transfer, convey or lease all or any substantial part of its assets to any
other Person.

     8.8 Liquidation, Dissolution. The Corporation shall not liquidate, dissolve
or effect a recapitalization or reorganization in any form of transaction
(including any reorganization into a corporation or another type of entity or
after which the Corporation becomes a subsidiary of another Person) or otherwise
alter its legal status.

     8.9 Restricted Payments.  The Corporation shall not (a) purchase or redeem
any Common Stock or other equity interests, warrants or options with respect to
such Common Stock, (b) declare, make or pay any distributions with respect to
Common Stock, or (c) grant, or allow the exercise of, any redemption rights, put
rights or other similar rights with respect to its equity interests to any
holder of its equity securities (contingent or otherwise) or contract rights the
value of which appreciates in accordance with the value of the Corporation or
the Corporation's earnings.

     8.10 Transactions with Affiliates.  The Corporation shall not enter into or
maintain any transaction or agreement with its Affiliates, except in the
ordinary course of business and upon fair and reasonable terms no less favorable
to the Corporation than would be obtained by the Corporation in a comparable
arm's length transaction with a Person who is not the Corporation's Affiliate.
The Corporation shall not make any loans or advances to, or guarantees for the
benefit of any Person, other than advances to employees in the ordinary course
of business (including travel allowances to employees in the ordinary course of
business), except as provided for in the Financial Statements. Furthermore,
except as provided for in the Financial Statements, the Corporation shall not
increase the salary or rate of pay of, or pay an bonuses to, employees or engage
any consultants.

     8.11  Fees and Expenses.  (a) The Corporation shall bear all of its own
expenses in connection with this Agreement and the other Operative Documents,
and the transactions contemplated hereby and thereby. The Corporation shall also
promptly reimburse the Lenders for or pay any reasonable expenses the Lenders
incur in connection with (i) the enforcement of, or the preservation of any
rights under, this Agreement, the Notes and the other Operative Documents, and
(ii) any stamp and other taxes (other than income taxes) payable with respect to
this Agreement and the Notes. The Corporation shall pay or reimburse such
expenses within 30 days of its receipt of an invoice for such amounts.

     (b) The Corporation shall also pay or reimburse the Lenders for the
reasonable fees and expenses of both Foley & Lardner (counsel to Augustine) and
Herrick, Feinstein LLP (counsel to Shaar) in connection with the preparation of,
negotiation of, closing of, waiver under, enforcement of, or the preservation of
rights under, this Agreement, the Notes and the other Operative Documents and
the transactions contemplated hereby and thereby. The Corporation will also bear
the reasonable legal fees and disbursements of one legal counsel of each Lender
in connection with any mutually agreed upon waivers under or amendments to this
Agreement and the other Operative Documents, or any amendments or waivers
proposed by the Corporation whether or not effected, or in connection with the
consummation of any future transaction related thereto.

                                   ARTICLE IX
                                Events of Default

     9.1 Events of Default Defined; Acceleration of Maturity. If any one or more
of the following events (herein called "Events of Default") shall have occurred:

     (a) all or any part of the principal of the Notes is not paid when due and
payable, whether at maturity thereof, by acceleration, by notice of prepayment,
whether mandatory or optional, or otherwise;

     (b) all of any part of the interest on the Notes is not paid, whether in
cash or by the issuance of Interest Payment Shares, as applicable, when due and
payable;

     (c) default shall occur in the observance or performance of any covenant
contained in Article VIII of this Agreement;

     (d) default shall occur in the observance or performance of any of the
other covenants or agreements of the Corporation contained in this Agreement or
the other Operative Documents (including, without limitation, the Corporation's
obligation to register the Interest Payment Shares and the Common Stock issuable
upon conversion of the Notes in accordance with the terms of the Registration
Rights Agreement) which is not remedied within ten (10) days after notice
thereof to the Corporation;

     (e) a receiver, conservator, custodian, liquidator or trustee of the
Corporation or of all or any of its assets is appointed by court order; or an
order for relief is entered under the federal bankruptcy laws with respect to
the Corporation; or any of the material assets of the Corporation is sequestered
by court order; or a petition is filed against the Corporation under the
bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation law of any jurisdiction, whether now or hereafter in
effect;

     (f) the Corporation files a petition in voluntary bankruptcy or seeking
relief under any provision of any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law of any
jurisdiction, whether now or hereafter in effect, or consents to the filing of
any petition against it under any such law;

     (g) the Corporation makes a general assignment for the benefit of its
creditors, or admits in writing its inability to pay its debts generally as they
become due, or consents to the appointment of a receiver, conservator,
custodian, liquidator or trustee of the Corporation or of all or any part of its
assets;

     (h) final judgment for the payment of money in excess of $10,000 which is
not fully covered by insurance shall be rendered by a court of record against
the Corporation and the Corporation shall not (i) discharge the same or provide
for its discharge in accordance with its terms or (ii) procure a stay of
execution thereof within 30 days from the date of entry thereof and within said
period of 30 days, or such longer period during which execution shall have been
stayed, appeal therefrom and cause the execution thereof to be stayed during
such appeal including, without limitation, by providing adequate bond for such
judgment;

     (i)  any representation, warranty or certification made by made by the
Corporation or any of its officers in this Agreement or in any other Operative
Document or in any certificate, report, financial statement or other instrument
delivered under or pursuant to any provision hereof or thereof shall prove to
have been false or incorrect in any material respect on the date or dates as of
which they were made or delivered; or

     (j) a default shall occur in the observance or performance of any of the
covenants, conditions, promises, agreements or obligations under any Contract if
such failure might have a material adverse effect on the Corporation's business,
property, assets, operations or condition, financial or otherwise, and such
default is not remedied within ten (10) days after notice thereof to the
defaulting party (for purposes of this subsection (j), any default under the
Lease shall be deemed material);

     then, when any Event of Default described in clause (a), (b), (c), (d),
(h), (i) or (j) above has occurred and shall be continuing, the principal of
each Note shall, upon written notice from the holder thereof to the Corporation,
forthwith become and be due and payable, if not already due and payable, without
presentment, demand, or notice of any kind. Each Lender agrees to provide the
other Lender with a copy of any such notice of default at or prior to the time
such notice is delivered to the Corporation. When any Event of Default described
in clause (e), (f) or (g) above has occurred, the principal of each Note shall
immediately become due and payable upon the occurrence thereof, without
presentment, demand, or notice of any kind. If any principal is not paid in full
on the due date thereof (whether by maturity, prepayment, or acceleration) or
any Event of Default has occurred and is continuing, then the outstanding
principal balance of each Note will bear interest from the due date of such
payment, or from and after an Event of Default, at a rate equal to eighteen
percent (18%) per annum, compounded quarterly, until the payment is received or
the Event of Default is cured, if permitted, or waived. The Corporation shall
pay to the holders of each Note all reasonable out-of-pocket costs and expenses
incurred by any such holder in any effort to collect such Note.

     9.2 Remedies Cumulative.  All remedies, under either this Agreement, the
Notes, the other Operative Documents, by law or otherwise, afforded to the
Lender shall be cumulative and not alternative.

     9.3 Indemnification.  The Corporation shall indemnify, defend and hold each
Lender, its affiliates, officers and agents harmless from, against and in
respect of any and all claims, demands, losses, costs, expenses, obligations,
liabilities, damages, recoveries and deficiencies, including interest, penalties
and reasonable attorneys' fees (collectively, "claims"), that such Lender shall
incur or suffer, which arise, result from, or relate to any breach of, or
failure by the Corporation to perform, any of its representations, warranties,
covenants or agreements in this Agreement in any material respect.

     9.4 Delays or Omissions. No failure to exercise or delay in the exercise of
any right, power or remedy accruing to the Lenders upon any breach or default of
the Corporation under this Agreement shall impair any such right, power or
remedy of the Lenders nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring.

                                    ARTICLE X
                                  Miscellaneous

     10.1 Consent to Amendments; Waivers. Except as otherwise expressly provided
herein, the provisions of this Agreement may be amended at any time only by the
written agreement of the Corporation and the Lenders. The provisions of this
Agreement may be waived at any time only by the written agreement of the waiving
party and any waiver, permit, consent or approval of any kind or character of
any provisions or conditions of this Agreement shall be effective only to the
extent specifically set forth in such writing. Any waiver made by one Lender
with respect to its Note shall not be binding upon the other Lender.

     10.2 Successors and Assigns. Except as otherwise expressly provided herein,
all covenants and agreements contained in this Agreement by or on behalf of any
of the parties hereto will bind and inure to the benefit of the respective
heirs, legal representatives and successors of the parties hereto and the
permitted assigns of the parties hereto. This Agreement, the Notes and the
rights and obligations of the Corporation hereunder and thereunder shall not be
assigned or otherwise transferred by the Corporation without the prior written
consent of the Lenders.

     10.3 Severability. Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be prohibited by or invalid
under applicable law, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of this
Agreement unless the consummation of the transaction contemplated hereby is
materially adversely affected thereby.

     10.4 Descriptive Headings.  The descriptive headings of this Agreement are
inserted for convenience of reference only and do not constitute a part of and
shall not be utilized in interpreting this Agreement.

     10.5 No Setoffs, Etc. All payments hereunder and under the Notes shall be
made by the Corporation without setoff, offset, deduction or counterclaim, free
and clear of all taxes, levies, imports, duties, fees and charges, and without
any withholding, restriction or conditions imposed by any governmental
authority. If the Corporation shall be required by any law to deduct, setoff or
withhold any amount from or in respect of any payment to either Lender hereunder
or under the Notes, then the amount so payable to such Lender shall be increased
as may be necessary so that, after making all required deductions, setoffs and
withholdings, such Lender shall receive an amount equal to the sum they would
have received had no such deductions, setoffs or withholdings been made.

     10.6  Notices. Any  notices desired, required or permitted  to be given
hereunder shall be delivered personally or mailed, certified or registered mail,
return receipt requested, postage prepaid or delivered by commercial overnight
courier service, charges prepaid to the following addresses, or such other
addresses as shall be given by notice delivered hereunder, and shall be deemed
to have been given upon delivery, if delivered personally, (3) three Business
Days after mailing, if mailed, or one Business Day after delivery to the
overnight courier service, if delivered by overnight courier service:

         If to Augustine Fund, L.P., to:

                  141 West Jackson Blvd., Suite 2182
                  Chicago, Illinois 60604
                  Attention:  David M. Matteson

         If to The Shaar Fund Ltd., to:

                  c/o Levinson Capital Management, LLC
                  2 World Trade Center
                  New York, New York 10048
                  Attention:  Sam Levinson

         With a copy to:

                  Herrick, Feinstein LLP
                  2 Park Avenue
                  New York, New York 10016
                  Attention:  Irwin A. Kishner

         If to the Corporation, to:

                  IPVoice Communications, Inc.
                  7585 East Redfield Road, Suite 202
                  Scottsdale, Arizona 85260
                  Attention:  Barbara Will, President

     10.7 Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement and the exhibits hereto shall be governed by
the internal law, and not the law of conflicts, of the State of New York,
applicable to contracts made and wholly to be performed in that state.

     10.8  Exhibits and Schedules.  All exhibits and schedules hereto are an
integral part of this Agreement.

     10.9 Final Agreement. This Agreement, together with the Notes, constitutes
the final agreement of the parties concerning the matters referred to herein,
and supersedes all prior agreements and understandings between the parties.

     10.10  Execution in Counterparts.  This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed an original, and such counterparts together shall constitute one
instrument.

     10.11  WAIVERS BY BORROWER. EXCEPT AS OTHERWISE PROVIDED FOR IN THIS
AGREEMENT OR AS REQUIRED BY APPLICABLE LAW, THE CORPORATION WAIVES: (I)
PRESENTMENT, DEMAND AND PROTEST, AND NOTICE OF PRESENTMENT WITH RESPECT TO THIS
AGREEMENT OR THE NOTES AND (II) ITS RIGHT TO A JURY TRIAL IN THE EVENT OF ANY
LITIGATION INSTITUTED IN RESPECT OF THIS AGREEMENT, THE NOTES OR ANY OF THE
OTHER OPERATIVE DOCUMENTS. THE CORPORATION ACKNOWLEDGES THAT THE FOREGOING
WAIVERS ARE A MATERIAL INDUCEMENT TO THE LENDERS ENTERING INTO THIS AGREEMENT
AND THAT THE LENDERS ARE RELYING UPON THE FOREGOING WAIVERS IN ITS FUTURE
DEALINGS WITH THE CORPORATION. THE CORPORATION WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND
VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

     10.12  CONSENT TO FORUM.  AS PART OF THE CONSIDERATION FOR NEW VALUE
RECEIVED, AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF
BUSINESS OF THE CORPORATION OR THE LENDERS, THE CORPORATION HEREBY CONSENTS AND
AGREES THAT THE UNITED STATES DISTRICT COURT OR ANY OTHER COURT HAVING SITUS
WITHIN NEW YORK, NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE CORPORATION AND THE LENDERS
PERTAINING TO, ARISING OUT OF, OR RELATING TO THIS AGREEMENT, THE NOTES OR ANY
OF THE OTHER OPERATIVE DOCUMENTS. THE CORPORATION WAIVES ANY OBJECTION BASED
UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. THE
CORPORATION HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY COMPLYING WITH THE
PROVISIONS FOR GIVING NOTICE AS SET FORTH IN THIS AGREEMENT. NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF THE LENDERS TO SERVE
LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE
ENFORCEMENT BY THE LENDERS OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR
THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER
APPROPRIATE FORUM OR JURISDICTION.

                  [Remainder of page intentionally left blank.
                            Signature pages follow.]

     IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement on
the date first set forth above.

                                                   IP VOICE COMMUNICATIONS, INC.

                                                   By:
                                                   Its:

                                                   AUGUSTINE FUND, L.P.

                                                   By:
                                                           Its general partner

                                                           By:
                                                           Its:

                                                   THE SHAAR FUND LTD.

                                                   By:
                                                   Its:

                                                                       EXHIBIT F

                                  DRAW REQUEST

To:      Augustine Fund, L.P.
         The Shaar Fund Ltd.

From:    IPVoice Communications, Inc.

Date:                               , 2001

     Reference is made to that certain Loan Agreement dated as of May __, 2001
among Augustine Fund, L.P., The Shaar Fund Ltd. and IP Voice Communications Ltd.
(the "Loan Agreement"). All capitalized terms used herein without definition
shall have the meanings set forth in the Loan Agreement.

     The Corporation hereby requests that the Lenders advance a total principal
amount of $___________________________ under the Loans (the "Advance"). The
Corporation represents and warrants to the Lenders that the Advance will be used
to make payments to the Corporation's creditors as set forth on Schedule I
attached hereto, each of which payment is contemplated in the Cash Flow
Forecast.

     The Corporation hereby certifies to the Lenders that as of the date hereof:

     (1)  The representations and warranties contained in Article V of the Loan
          Agreement are true and correct as of the date hereof as if made on the
          date hereof;

     (2)  All covenants, agreements and conditions contained in the Loan
          Agreement to be performed or complied with by the Corporation  at or
          prior to the date hereof have been performed or complied with; and

     (3)  As of the date hereof, there exists no Event of Default.

     In witness whereof, this Draw Request has been signed in the name of and on
behalf of the Corporation as of the date first written above.

                                       IPVoice Communications, Inc.

                                       By:
                                       Its:[President / Chief Financial Officer]Exhibit 10.60 Convertible Promissory Note

                           IPVOICE COMMUNICATIONS, INC.
                           CONVERTIBLE PROMISSORY NOTE

Up to $595,574.00                                                 May 31st, 2001

     IPVOICE COMMUNICATIONS, INC., a Nevada corporation (the "Corporation"), for
value received, hereby promises to pay to AUGUSTINE FUND, L.P., an Illinois
limited partnership (the "Lender"), its successors and assigns, the lesser of
(i) the principal sum of Five Hundred Ninety Five Thousand Five Hundred Seventy
Four Dollars and No/100 ($595,574.00), or (ii) the aggregate principal sum of
all advances made by the Lender to the Corporation hereunder from time to time,
as reflected on the Grid attached hereto (each an "Advance" and collectively,
the "Principal Sum"), plus interest thereon as hereinafter provided. Subject to
certain mandatory prepayment requirements, the Principal Sum and all accrued and
unpaid interest shall be payable in full on May 31st, 2004.

     This Note is issued under and pursuant to the terms and provisions of the
Loan Agreement, of even date herewith, among the Corporation, the Lender and The
Shaar Fund Ltd. (as the same may be amended, supplemented or otherwise modified
from time to time, the "Loan Agreement"), and this Note and the holder hereof is
entitled to all of the rights and benefits provided for thereby or referred to
therein. All capitalized terms used herein without definition shall have the
meanings ascribed in the Loan Agreement.

     The principal sum of each Advance shall bear interest, commencing on and as
of the date of such Advance to and including the date such Advance is repaid in
full, at a rate of eight percent (8%) per annum. Interest shall be due and
payable in arrears on the last Business Day of each September, December, March
and June commencing on September 30, 2001 and continuing until all amounts owing
under the Note has been paid. The interest payable to the holder of this Note
for any given period shall be paid, at the such holder's election, either in
cash or in shares of Common Stock of the Corporation, as set forth in the Loan
Agreement.

     The Lender shall record on the Grid attached to this Note the date and
amount of each Advance, as well as each payment of principal (or the conversion
of principal as provided for herein) and such other information as it may deem
necessary, which notations shall constitute prima facie evidence of the accuracy
of the information recorded. Failure of the Lender to make any such notation or
any error therein shall not limit or otherwise affect the obligations of the
Corporation hereunder and the records of the Lender shall at all times be
determinative of the unpaid balance of this Note (whether or not the Lender has
made such notation on this Note).

     If any principal or interest is not paid in full on the due date thereof
(taking into account any applicable grace periods) (whether by maturity,
prepayment or acceleration), and upon and during the continuance of any Event of
Default (as defined in the Loan Agreement), the outstanding principal balance of
this Note shall bear interest thereafter at a rate equal to eighteen percent
(18%) per annum until such payment is paid in full or such Event of Default is
cured or waived in accordance with the terms of the Loan Agreement.

     All payments on or in respect of this Note, including principal and
interest thereon, shall be made in such coin and currency of the United States
of America as at the time of payment is legal tender for the payment of public
and private debts by wire transfer pursuant to written wire transfer
instructions given to the Corporation by the holder hereof from time to time,
or, at the option of the holder hereof, in such manner and at such other place
in the United States of America as the holder hereof shall have designated to
the Corporation in writing pursuant to the provisions of the Loan Agreement.

     Under certain circumstances, as specified in the Loan Agreement, the
principal of this Note may be declared due and payable in the manner and with
the effect provided in the Loan Agreement. This Note is subject to optional
prepayment by the Corporation pursuant to the terms and conditions set forth in
the Loan Agreement.

     The Corporation hereby waives diligence, presentment, demand, protest and
notice of every kind whatsoever. The failure of the holder hereof to exercise
any of its rights hereunder in any particular instance shall not constitute a
waiver of the same or of any other right in that or any subsequent instance.

     This Note shall be binding upon the Corporation, its successors, and
permitted assigns, and shall inure to the benefit of the Lender, its successors
and assigns.

     This Note is a contract made under and governed by, and shall be construed
and enforced in accordance with, the laws of the State of New York, without
regard to conflict of laws principles.

     Conversion Rights and Procedures

     In addition to the rights set forth  above,  the holder of this Note shall
have the conversion rights set forth below:

     1. Conversion Right. At the Lender's election, exercisable at any time and
from time to time, all or a portion of the principal outstanding under this Note
shall be converted, without the payment of any additional consideration, into
the number of fully-paid and nonassessable shares of Common Stock as provided in
Section 2 below.

     2. Conversion Calculation.

     The number of shares issuable upon conversion of all or a portion of the
principal outstanding under this Note at any time shall be determined by
dividing the amount of principal to be converted by the Conversion Price, where
the Conversion Price equals seventy five percent (75%) (the "Conversion
Percentage") of the average of the three (3) lowest Closing Bid Prices for the
Common Stock for the thirty (30) consecutive trading days immediately preceding
the Conversion Date (as herein defined), as reported on the National Association
of Securities Dealers OTC Bulletin Board Market (or on such other national
securities exchange or market as the Common Stock may trade at such time);
notwithstanding anything in this paragraph to the contrary, if the registration
statement covering the resale of the shares of Common Stock issuable upon
conversion of this Note has not been declared effective within 210 days (the
"Due Date") after the date of issuance of this Note, then the Conversion
Percentage shall decrease by two percent (2%) for each month (that is, each
thirty (30) day period after the Due Date, beginning on the 30th day after the
Due Date) or partial month in which the said registration statement has not been
declared, or does not remain, effective; if such registration statement has not
been declared and does not remain effective on the date which is one (1) year
after the date of issuance of this Note, then the Conversion Percentage shall be
fifty percent (50%). For purposes hereof, the term "Closing Bid Price" shall
mean for any security as of any date, the last closing bid price for such
security on the OTC Bulletin Board Market as reported by Bloomberg, L.P., or, if
the OTC Bulletin Board Market is not the principal trading market for such
security, the last closing bid price of such security on the principal
securities exchange or trading market where such security is listed or traded as
reported by Bloomberg, L.P., or, if no last closing bid or trade price is
reported for such security by Bloomberg, L.P., the closing bid price shall be
determined by reference to the closing bid price as reported on the principal
trading market, and if not so reported shall be determined from the average of
the bid prices of any market makers for such security as reported in the "pink
sheets" published by the National Quotation Bureau, Inc. If the closing bid
price cannot be calculated for such security on such date on any of the
foregoing bases, the closing bid price of such security on such date shall be
the fair market value as mutually agreed by the Company and the holder of this
Note.

     If the Common Stock issuable upon the conversion of this Note shall be
changed into the same or different number of shares of any class or classes of
stock, whether by capital reorganization, reclassification, stock split, stock
dividend, or similar event, then and in each such event, the holder of this Note
shall have the right thereafter to convert all or any portion of the principal
amount outstanding under this Note into the kind and amount of shares of stock
and other securities and property receivable upon such capital reorganization,
reclassification or other change which such holder would have received had this
Note been converted immediately prior to such capital reorganization,
reclassification or other change.

     3. Conversion Procedure.

     The holder of this Note may exercise its right to convert all or any
portion of the principal amount outstanding under this Note by telecopying an
executed and completed notice to the Corporation and delivering the original
notice in the form annexed hereto as Exhibit A ("Notice of Conversion") by
express courier. Each business date on which a Notice of Conversion is
telecopied to and received by the Corporation in accordance with the provisions
hereof shall be deemed a "Conversion Date." The Corporation will transmit, or
instruct its transfer agent to transmit, the certificates representing shares of
Common Stock issuable upon conversion of this Note to the holder thereof via
express courier, by electronic transfer or otherwise, within three (3) business
days after the Corporation has received the facsimile Notice of Conversion. In
addition to any other remedies which may be available to the holders of this
Note, except as otherwise stated in the Loan Agreement, in the event that the
Corporation fails to deliver, or has failed to contact its transfer agent within
two (2) business days to deliver, such shares of Common Stock within such three
business-day period, the holder will be entitled to revoke the relevant Notice
of Conversion by delivering a notice to such effect to the Company whereupon the
Company and the holder shall each be restored to their respective positions
immediately prior to delivery of such Notice of Conversion.

     No fractional shares of Common Stock shall be issued upon conversion of
this Note. In lieu of any fractional share to which the holder would be entitled
but for this paragraph, the number of shares of Common Stock to be received
shall be rounded to the nearest whole share.

     4. Issuance of Common  Stock.  The issuance of certificates for shares of
Common Stock upon conversion of this Note will be made without charge to the
holder for any issuance tax or other governmental charge in respect thereof or
other cost incurred by the Corporation in connection with such conversion and
the related issuance of Common Stock. Upon the conversion of this Note, the
Corporation will take all such actions as are necessary in order to insure that
the shares of Common Stock issuable with respect to such conversion will be
validly issued, fully paid and nonassessable, free of preemptive rights and free
from all taxes, liens, charges and security interests with respect to the
issuance thereof. Upon receipt of the certificates evidencing shares of Common
Stock issued upon a conversion of principal outstanding under this Note, the
holder of this Note shall make a notation on the Grid attached hereto indicating
the date of the conversion and the amount of principal so converted. In the
event that the holder elects to convert all of the principal outstanding under
this Note, the holder shall surrender this Note to the Corporation upon receipt
of the certificates representing the shares of Common Stock issued upon such
conversion.

     5. Reorganization.  If at any time or from time to time there shall be a
capital reorganization of the Common Stock (other than a subdivision,
combination, reclassification or exchange of shares provided for above), or a
merger or consolidation of the Company with or into another corporation, or the
sale of all or substantially all of the Company's properties, stock and/or
assets to any other person or entity (any of which events is herein referred to
as a "Reorganization"), then as a part of such Reorganization, provision shall
be made so that the holder of this Note shall thereafter be entitled to receive
upon conversion of this Note, the number of shares of stock or other securities
or property of the Company, or of the successor corporation resulting from such
Reorganization, to which such holder would have been entitled if such holder had
converted this Note immediately prior to such Reorganization. In any such case,
appropriate adjustment shall be made in the application of the provisions of
this Section 5 with respect to the rights of the holder of this Note after the
Reorganization, to the end that the provisions of this Section 5 (including
adjustment of the number of shares issuable upon conversion of this Note) shall
be applicable after that event in as nearly equivalent a manner as may be
practicable. Upon the occurrence of each adjustment or readjustment of the
Conversion Price, the Company, at its expense, shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and prepare and
furnish to the holder of this Note a certificate executed by the president and
chief financial officer (or in the absence of a person designated as the chief
financial officer, by the treasurer) setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment are based. The Company shall, upon written request at any time of
the holder of this Note, furnish or cause to be furnished to such holder a
certificate setting forth (A) the Conversion Price at the time in effect, and
(B) the number of shares of Common Stock and the amount, if any, of other
property which at the time would be received upon the conversion of this Note.

     6. Reservation of Common Stock. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of this Note, such number of its
shares of Common Stock as shall from time to time be sufficient or as may be
available to effect the conversion of the maximum principal amount of this Note,
and if at any time the number of authorized but unissued shares of Common Stock
shall not be sufficient to effect the conversion of all the then outstanding
principal amount of this Note, the Company shall use its best efforts to take
such corporate action as may be necessary to increase its authorized but
unissued shares of Common Stock to such number of shares as shall be sufficient
for such purpose.

     7. Restriction on Conversion.  Notwithstanding anything to the contrary set
forth herein, in no event shall the holder of this Note be entitled to convert
all or any portion of the principal outstanding under this Note in excess of
such portion of the principal of this Note that, upon giving effect to such
conversion, would cause the aggregate number of shares of Common Stock
beneficially owned by such converting holder and its affiliates to exceed 4.99%
of the outstanding shares of the Common Stock following such conversion. For
purposes of the foregoing proviso, the aggregate number of shares of Common
Stock beneficially owned by the holder and its affiliates shall include the
number of shares of Common Stock issuable upon conversion of this Note with
respect to which the determination of such proviso is being made. Except as set
forth in the preceding sentence, for purposes of this Section, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended. The limitations imposed by this Section on
conversion of this Note shall no longer apply, and the holder of this Note may
convert all or any portion of the principal outstanding under this Note,
irrespective of the resulting beneficial ownership of the Corporation's Common
Stock, should any of the following events occur: (a) The Corporation shall
either: (i) become insolvent; (ii) admit in writing its inability to pay its
debts generally or as they become due; (iii) make an assignment for the benefit
of creditors or commence proceedings for its dissolution; or (iv) apply for, or
consent to the appointment of, a trustee, liquidator, or receiver for its or for
a substantial part of its property or business; or (b) A trustee, liquidator or
receiver shall be appointed for the Corporation or for a substantial part of its
property or business without the Corporation's consent and such appointment is
not discharged within sixty (60) days after such appointment; or (c) Any
governmental agency or any court of competent jurisdiction at the instance of
any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Corporation; or (d) Any
money judgment, writ or note of attachment, or similar process in excess of Five
Hundred Thousand United States Dollars (US$500,000.00) in the aggregate shall be
entered or filed against the Corporation or any of its properties or assets; or
(e) Bankruptcy, reorganization, insolvency or liquidation proceedings or other
proceedings for relief under any bankruptcy law or any law for the relief of
debtors shall be instituted by or against the Corporation and, if instituted
against the Corporation, shall not be dismissed within sixty days after such
institution or the Corporation shall by any action or answer approve of, consent
to, or acquiesce in any such proceedings or admit the material allegations of,
or default in answering a petition filed in, any such proceeding.

     8. Notices.  Any notices desired, required or permitted to be given
hereunder shall be delivered in accordance with the notice provision in the Loan
Agreement.

                                                    IPVOICE COMMUNICATIONS, INC.

                                                    By:
                                                    Name:
                                                    Title:

                                      Grid
                                 to that certain
                           Convertible Promissory Note
                         of IPVoice Communications, Inc.
                                   payable to
                              Augustine Fund, L.P.

------------------------------- ---------------------------- ---------------------------- ----------------------------
 Date of Advance, Payment or                                          Amount of
          Conversion                                              Principal Repaid
                                     Amount of Advance              or Converted              Cumulative Balance
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