Document:

Exhibit
      10.4

    

    INTERCREDITOR,
      SUBORDINATION, DEFAULT WAIVER

    AND
      ASSIGNMENT AGREEMENT

    

    THIS
      INTERCREDITOR, SUBORDINATION, DEFAULT WAIVER AND ASSIGNMENT AGREEMENT, dated
      as
      of September 12, 2007 (this “Agreement”),
      is by
      and among VoIP Inc. (“Borrower”),
      Centurion Microcap, L.P., Alpha Capital Anstalt, Ellis International, Ltd.,
      Bristol Investment Fund, Ltd. (“Bristol”) and Whalehaven Capital Fund, Ltd.
      (“Assignees”),
      the
      parties identified on Schedule
      A
      hereto
      (“Secured
      Lenders”)
      and
      Barbara R. Mittman, in her capacity as collateral agent for the benefit of
      the
      Secured Lenders (each a “Party”
      and
      collectively the “Parties”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      Secured Lenders have entered into financing arrangements with the Borrower,
      and
      such financings are secured by the assets of the Borrower and certain of its
      subsidiaries (all such subsidiaries, collectively with the Borrower, the
      (“Obligors”);
      and

     

    WHEREAS,
      the Borrower is not in material compliance with the terms of the Secured Lender
      Transaction Documents to the Secured Lenders and the Borrower and Secured
      Lenders wish to waive past defaults under the terms and conditions set forth
      in
      this Agreement; and

     

    WHEREAS,
      some of the Secured Lenders identified on Schedule
      B
      hereto
      (collectively the “Assignors”)
      and
      Assignees desire to enter into this Agreement to (i) assign a portion of the
      Obligations to Assignees; (ii) confirm the relative priority of the security
      interests of Secured Lenders and Assignees in the Collateral, and (iii) provide
      for the orderly sharing among them, in accordance with such priorities, of
      proceeds of the Collateral upon any foreclosure thereon or other disposition
      thereof.

     

    NOW
      THEREFORE, in consideration of the mutual benefits accruing to Secured Lenders,
      Assignors, Assignees, Borrower and Obligors hereunder and other good and
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto do hereby agree as follows:

     

    1. DEFINITIONS.

    

    As
      used
      in this Agreement, the following terms shall have the meanings ascribed to
      them
      below:

     

    “Assignee
      Collateral Documents”
means
      this Agreement and any other agreement, instrument and other document, including
      the Collateral Documents, giving rise or governing the rights and obligations
      with respect to the Liens that Assignees have in the Collateral.

     

    “Assigned
      Debt”
means
      indebtedness owed by the Borrower to the Assignees prior to the date of this
      Agreement which is being assigned hereby to the Assignor in the amount set
      forth
      on Schedule 2.4. Additionally $250,000 of Bristol’s Waiver Note (as identified
      on Schedule 2.3(a)) shall be deemed to be a part of the Assigned
      Debt.

     

    “Assigned
      Debt Payment Plan”
means
      the terms set forth in Sections 4.1 through 4.5 inclusive.

     

    “Assignor
      Financing”
      means
      all agreements, instruments and other documents that Borrower and Assignor
      entered into on or about the date of this Agreement in connection with the
      transactions in which $1, 844,580.87 in Principal Amount Convertible Notes
      and
      Warrants were issued by Borrower to Assignors on or about the date of this
      Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Cedar
      Debt” means
      indebtedness owed by the Borrower to the Assignees prior to the date of this
      Agreement which is being assigned hereby to the Assignor in the amount set
      forth
      and as identified on Schedule 2.1.

     

    “Collateral”
means
      all of the items defined and identified as “Collateral”
in
      the
      Secured Lender’s Transaction Documents.

     

    “Collateral
      Documents”
means
      all agreements, instruments and other documents giving rise, governing and
      evidencing the rights and obligations with respect to the Liens of the Secured
      Lenders in the Collateral.

     

    “Debt”
and/or
      “Obligations”
means
      the Secured Lenders Debt.

     

    “Insolvency
      Proceeding”
means,
      as to any Obligor, any of the following, occurring after the date hereof:
      (i)
      any case
      or proceeding with respect to such Obligor under the U.S. Bankruptcy Code,
      any
      other federal, state or provincial bankruptcy, insolvency, reorganization or
      other law affecting creditors’ rights generally or any other or similar
      proceedings of any other jurisdiction or otherwise seeking any stay,
      reorganization, arrangement, liquidation, dissolution, composition or
      readjustment of the obligations and indebtedness of such Obligor, or
      (ii)
      any
      proceeding seeking the appointment of any receiver, administrative receiver,
      receiver and manager, examiner, judicial custodian, trustee, liquidator,
      official manager, administrator or similar official for any Obligor or any
      material part of its properties, or (iii)
      any
      proceedings for liquidation, dissolution or other winding up of the business
      of
      such Obligor, or (iv)
      the sale
      of all or substantially all of the assets or capital stock of such Obligor,
      or
      (v)
      any
      assignment for the benefit of creditors or any marshaling of assets of such
      Obligor.

     

    “Lien”
means
      any mortgage, deed of trust, pledge, hypothecation, assignment, deposit
      arrangement, security interest, encumbrance (including, but not limited to,
      easements, rights of way and the like), lien (statutory or other), security
      agreement or transfer intended as security, including without limitation, any
      conditional sale or other title retention agreement, the interest of a lessor
      under a capital lease or any financing lease having substantially the same
      economic effect as any of the foregoing.

     

    “Non-Assigned
      Secured Lender’s Debt”
      means
      the Secured Lender’s Debt other than the Super Senior Secured Debt and Cedar
      Debt.

     

    “Secured
      Lenders Debt”
means
      all indebtedness secured by the Liens of Secured Lenders in the Collateral
      as
      set forth in Schedules 2.1 and 2.3 and as defined in the Secured Lender
      Transaction Documents as “Obligations.”

     

    “Secured
      Lenders Transaction
      Documents”
means
      all agreements, instruments and other documents that Borrower and/or Secured
      Lenders entered into on or about July 5, 2005, January 6, 2006, February 2,
      2006, October 14, 2006, February 1, 2007, February 16, 2007, April 6, 2007,
      and
      July 27, 2007, respectively, and all Transaction document as defined in such
      agreements, instruments and other documents together with all documents related
      thereto, as may have been amended.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Super
      Senior Secured Debt”
means
      the Assigned Debt and also the additional portion of the Obligations to the
      Assignees identified on Schedule 3.1.

     

    2. ACKNOWLEDGEMENTS,
      ASSIGNMENTS AND PAYMENT.

    

    2.1 Acknowledgement
      of Presently Outstanding Note Amounts.
      Borrower acknowledges that the amounts set forth in Schedule
      2.1(a) hereto
      represent Obligations outstanding as of the date of this Agreement. In payment
      of the liquidated damages, that the Borrower has acknowledged, have accrued
      through the date of this Agreement, Borrower will issue notes to the Secured
      Lenders in the amounts listed on Schedule
      2.1(b).

    

    2.2 Acknowledgement
      of Defaults.
      Borrower acknowledges that it is material default of numerous covenants,
      undertakings and terms of the Secured Lender Transaction Documents.

    

    2.3 Waiver. 
      In
      consideration of the Secured Lenders’ agreement to waive any past events of
      defaults, and/or defaults on the Super Senior Secured Debt and the Non-Assigned
      Secured Lenders Debt through the date of this Agreement and the Secured Lenders
      waiver of any entitlement to Non-Registration Event (as defined in the Secured
      Lenders Transaction Documents) liquidated damages for six months from the date
      of this Agreement, the Borrower hereby agrees to issue notes to the Secured
      Lenders in the principal amounts as set forth in Schedule
      2.3(a).
      The
      borrower will also issue warrants to the Assignees in the form set forth in
      Exhibit 2 in the amounts as set forth in Schedule
      2.3(b).
      For the
      benefit of the Borrower Each Assignee for itself hereby makes all of the
      representations made by the subscribers in the Subscription Agreement of the
      Assignor Financing. For the benefit of the Assignees, the Borrower hereby makes
      all of the representations made by it in the Subscription Agreement of the
      Assignor Financing. 

    

    2.4 Each
      Assignor hereby represents for itself, that it is the sole record and beneficial
      owner of its portion of the Assigned Debt, free and clear of any taxes and
      encumbrances and upon the assignment of the Assigned Debt to the Assignees,
      the
      Assignees will acquire good and marketable title thereto and will be the legal
      and beneficial owner of such the Assigned Debt, free and clear of any
      encumbrances or transfer restrictions except restrictions in described in the
      Secured Lenders Transaction Documents.

    

    2.5 Assignors
      in the aggregate hereby assign to Assignees in the aggregate the Assigned Debt
      together with all the rights and benefits under the Secured Lender Transaction
      Documents connected to the Assigned Debt (the
      “Assignment”).

    

    2.6 Each
      of
      the Assignors will receive from the Assignees and each of the Assignees will
      pay
      to the Assignors as consideration for the Assignment the amount set forth in
      Schedule
      2.6.

    

    2.7 Each
      of
      the Assignors and Assignees hereby make the representations set forth in Section
      4 of the Subscription Agreement of the Assignor Financing for their mutual
      benefit.

    

    2.8 The
      Borrower acknowledges that the holding periods of Assignees in the Assigned
      debt
      tacks back for Rule 144 purposes to the holding period of the
      Assignors.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3. SECURITY
      INTERESTS; PRIORITIES; REMEDIES.

    

    3.1 Priority
      of Liens.
      

     

    (a)
      Notwithstanding the order or time of attachment, or the order, time or manner
      of
      perfection, or the order or time of filing or recordation of any document or
      instrument, or other method of perfecting a security interest in favor of each
      Secured Creditor in any Collateral, and notwithstanding any conflicting terms
      or
      conditions which may be contained in any of the Collateral Documents, the Liens
      upon the Collateral securing the Super Senior Secured Debt have and shall have
      priority over the Liens upon the Collateral securing the Cedar Debt and the
      Non-Assigned Secured Debt. 

     

    (b)
      Notwithstanding the order or time of attachment, or the order, time or manner
      of
      perfection, or the order or time of filing or recordation of any document or
      instrument, or other method of perfecting a security interest in favor of each
      Secured Creditor in any Collateral, and notwithstanding any conflicting terms
      or
      conditions which may be contained in any of the Collateral Documents, the Liens
      upon the Collateral securing the Cedar Debt have and shall have priority over
      the Liens upon the Collateral securing the Non-Assigned Secured
      Debt.

     

    All
      distribution proceeds of the Collateral shall be made first to satisfy the
      outstanding obligations arising under the Super Senior Secured Debt owed the
      Assignees in proportion to their ownership of the Super Senior Secured Debt
      as
      of the distribution date, second to the holders of the Cedar Debt in proportion
      each holder of the Cedar Debt’s ownership of the Cedar Debt, third to the
      Secured Lenders in the manner set forth in the Collateral
      Documents.

     

    3.2 Priorities
      Unaffected by Action or Inaction.
      The
      Lien priorities provided in Section
      3.1 shall
      not
      be altered or otherwise affected by any amendment, modification, supplement,
      extension, renewal, restatement, replacement or refinancing of either the
      Secured Lenders Debt, Cedar Debt or the Super Senior Secured Debt, nor by any
      action or inaction which any Secured Creditor may take or fail to take in
      respect of the Collateral.

     

    3.3 Rights
      of Third Parties; No Contest of Lien.
      Each
      Secured Creditor shall be solely responsible for perfecting and maintaining
      the
      perfection of its Lien in and to each item constituting the Collateral in which
      such Secured Creditor has been granted a Lien. The foregoing provisions of
      this
      Agreement are intended solely to govern the respective lien priorities as
      between the Secured Creditors and shall not impose on any Secured Creditor
      any
      obligations in respect of the disposition of proceeds of foreclosure on any
      Collateral which would conflict with prior perfected claims therein in favor
      of
      any other person or any order or decree of any court or other governmental
      authority or any applicable law. Each Secured Creditor agrees that it will
      not
      contest the validity, perfection, priority or enforceability of the Liens upon
      the Collateral of Secured Lenders or Assignees, as the case may be, and that
      as
      between Secured Lenders, on the one hand, and Assignees, on the other, the
      terms
      of this Agreement shall govern even if part or all of the Secured Lenders Debt
      or Super Senior Secured Debt or the Liens securing payment and performance
      thereof are avoided, disallowed, set aside or otherwise invalidated in any
      judicial proceeding or otherwise.

     

    3.5 Right
      to Enforce Agreements.
      Subject
      to the terms and conditions set forth in this Agreement, the Collateral Agent
      on
      behalf of the Secured Lenders and Assignees shall manage, perform and enforce
      the terms of the Collateral Documents with respect to the Collateral, to
      exercise and enforce all privileges and rights there under according to
      Collateral Agent’s discretion and the exercise of Collateral Agent’s business
      judgment; provided,
      however,
      all
      proceeds arising from the sale or other disposition of such Collateral shall
      be
      applied first to satisfy all of the Super Senior Secured Debt until no Super
      Senior Secured Debt is outstanding. For the avoidance of doubt, no amount of
      Collateral proceeds collected by or on behalf of Secured Lenders that is
      ultimately used to satisfy the Super Senior Secured Debt shall result in a
      reduction of the Secured Lenders Debt or the obligations of the Obligors to
      repay the Secured Lenders Debt in full.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4. ASSIGNED
      DEBT PAYMENT PLAN

    

    4.1 
      The
      Borrower agrees that 45 days from the date of this Agreement and every 45 days
      thereafter, until such time as all the Assigned Debt is paid off, the Borrower
      will make a payment to the Assignees of $250,000 to be credited against the
      Super Senior Secured Debt as follows: first, any liquidated or other damages,
      which have not been waived pursuant to this Agreement; second, any interest
      that
      has accrued since the date of this Agreement; third principal (the payment
      pursuant to this paragraph 4.2 “Amortization
      Payments”).
      In
      any event all amounts outstanding in connection with the Super Senior Secured
      Debt shall be due and payable not later than May 31, 2008.

    

    4.2 If
      the
      Borrower fails to make any of the Amortization Payments within two (2) days
      of
      when due then each Assignee shall have the right, but not the obligation, to
      make its portion of the Super Senior Secured Debt, or any portion thereof
      immediately due and payabale after a three (3) day cure period. Additionally,
      upon
      written notice of any two of the Assignees or any Assignee holding 51% of the
      outstanding amounts of the Super Senior Secured Debt the
      conversion price of the common stock in to which the Super
      Senior Secured Debt is convertible into,
      shall be
      seventy percent (70%) of the three (3) lowest closing bid prices for the ten
      (10) days prior to the date such Assignee converts its portion of the Assigned
      Debt (the “Election”). The Election must be made in writing and delivered to the
      Borrower in accordance with the notice provisions herein. Upon receipt of the
      Election, the Borrower will promptly and no later than the end of business
      on
      the day upon which it receives the Election, forward a copy of the Election
      to
      the Secured Lenders in accordance with the notice provisions of this Agreement.
      The Election shall not be effective until three (3) days after the Election
      has
      been sent to the Secured Lenders. If the Borrower fails to deliver the Election
      to the Secured Lenders any other party to this Agreement may forward the
      Election to the Secured Lenders. Each Assignee may decide for itself whether
      or
      not to convert any of its portion of the Super Senior Secured Debt. The terms
      of
      the conversion procedures, anti-dilution rights and any other rights or benefit
      granted to the Assignors in connection with the Assignor Financing are hereby
      also granted to the holder of the Super Senior Secured Debt upon the occurrence
      of an Event of Default as provided in the Assignor Financing or failure to
      make
      any of the Amortization Payments within two (2) days of when due, pursuant
      to
      the procedures set forth therein.

    

    4.3 Upon
      the
      occurrence of any Event of Default as defined in the Assignor Financing or
      any
      default in making payments pursuant to Section 4.3 herein, after the applicable
      cure period, if any, the holders of 65% of Super Senior Secured Debt may proceed
      to protect, exercise and enforce, on behalf of all the Assignees, their rights
      and remedies under the this Agreement and the Assignee Collateral Documents
      against Borrower, and such other rights and remedies as are provided by law
      or
      equity.

    

    4.4  The
      Borrower will
      provide an opinion reasonably acceptable to Assignees, Assignors and the Secured
      Lenders, from the Company’s legal counsel opining on the availability of an
      exemption from registration under the 1933 Act as it relates to the offer and
      issuance of the Securities and other matters reasonably requested by
      Subscribers. A form of the legal opinion is annexed hereto as Exhibit
      A.

    

    4.5  The
      Borrower will deliver to the Assignees on or before the Closing Date (as defined
      in the Assignor Financing) and enforce the provisions of an irrevocable lockup
      agreement (“Lockup
      Agreement”)
      in the
      form annexed hereto as Exhibit
      B,
      with
      the persons identified on Schedule
      4.5.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    5. WAIVERS.

    

    5.1 Further
      Registration Statements.
      Pursuant to Section 9(n) of the Subscription Agreement dated January 6, 2006
      between the Borrower and Secured Lenders and any such other substantially
      similar provision contained in the Secured Lenders Transaction Documents, the
      Borrower is prohibited from filing further Registration Statements until the
      registration statement has been effective for the sale of the registrable
      securities for sixty (60) days. The Secured Lenders each waive such prohibition
      solely in connection with this Agreement the Assignor Financing.

    

    5.2 Additional
      Negative Covenants.
      Pursuant to Section 9(p) of the Subscription Agreement dated February 16, 2007
      between the Borrower and Secured Lenders and any such other substantially
      similar provision contained in the Secured Lenders Transaction Documents, the
      Borrower is prohibited from creating, incurring, assigning, or suffering to
      exist any security interest or pledges. The Secured Lenders each waive such
      prohibition and consent to the Borrower entering into this Agreement and the
      Assignor Financing. 

    

    5.3 Registration
      Rights.
      Pursuant to Section 11.1 of the Subscription Agreement dated January 6, 2006
      between Borrower and Secured Lenders and any such other substantially similar
      provision contained in the Secured Lenders Transaction Documents, the Borrower
      is required to include the common stock issuable in connection with the
      conversion of Notes and exercise of Warrants by Secured Lenders in the next
      filed registration statement. The Secured Lenders hereby waive the requirement
      that they be included in the registration statement to be filed in connection
      with Assignor Financing.

    

    5.4 Right
      of First Refusal.
      The
      Secured Lenders each possess a right of first refusal with respect to any sale
      of securities by the Borrower pursuant to Section 12(a) of the Subscription
      Agreement dated January 6, 2006 between Borrower and Secured Lenders and any
      such substantially similar provision contained in the Secured Lenders
      Transaction Documents. In connection with this Agreement the Assignor Financing,
      the Secured Lenders hereby agree to waive such right of first
      refusal.

    

    5.5 Offering
      Restrictions.
      Pursuant to Section 12(b) of the Subscription Agreement dated January 6, 2006
      between Borrower and Secured Lenders and any such other substantially similar
      provision contained in the Secured Lenders Transaction Documents, the Borrower
      is prohibited from entering into any agreement to issue any equity, convertible
      debt or other securities convertible into common stock or equity of the Borrower
      nor modify any of the foregoing. The Secured Lenders each waive such prohibition
      solely in connection with this Agreement and the Assignor
      Financing.

    

    5.6 Anti-Dilution
      Protection.
      The
      Secured Lenders acknowledges and agrees that in connection with the Assigned
      Debt Payment Plan, Secured Lenders are waiving any favored nations rights and/or
      any anti-dilution rights granted to them until such time as an Assignees send
      a
      notice to the Borrower electing to exercise their rights to make the Assigned
      Debt convertible pursuant to the Assigned Debt Payment Plan. The Secured Lenders
      and the Borrower agree that as a result of the conversion price of the notes
      being issued in the Assignor Financing the conversion price of any note and/or
      warrant that the Secured Lenders are currently holding the conversion and/or
      exercise price of such note or warrant is $0.75. The Secured Lenders are not
      waiving any favored nations rights and/or any anti-dilution rights granted
      to
      them in connection to any other issuance to agreement to issue any other
      security of the Borrower. The Borrower acknowledges that upon the Election
      the
      conversion price and/or exercise price of any note and/or warrant that Borrower
      has issued to the Secured Lenders may be reset to the price in Section 4.3
      herein. 

    

    5.7 Assignor
      Financing Security.
      The
      Secured Lenders acknowledge and agree that the obligations of the Borrower
      pursuant to the Assignor Financing shall be secured pari
      parssu
      with the
      Non-Assigned Secured Lender’s Debt.

    

    5.8
      Events
      of Default Waiver.
      The
      Secured Lenders hereby waive any past events of defaults (as defined in the
      Secured Lenders Transaction Documents) and/or defaults which may have occurred
      pursuant to or in connection with the Secured Lenders Transaction Documents
      through the date of this Agreement and the Secured Lenders also waive their
      entitlement to Non-Registration Event (as defined in the Secured Lenders
      Transaction Documents) liquidated damages for six months from the date of this
      Agreement. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6. MISCELLANEOUS.

    

    6.1 Successors
      and Assigns.
      This
      Agreement shall be binding upon, and inure to the benefit of, the successors
      and
      permitted assigns of the Parties. Neither party hereto may assign or permit
      the
      assignment of its obligations without first requiring the assignee of such
      obligation to assume such assigning party’s rights and obligations under this
      Agreement. Except as required by the preceding sentence, neither party may
      assign its rights or obligations under this Agreement without the other party’s
      prior written consent. 

     

    6.2
       Insolvency.
      This
      Agreement shall be applicable both before and after any Insolvency Proceeding
      by
      or against any Obligor and all converted or succeeding cases in respect thereof,
      and all references herein to any Obligor shall be deemed to apply to an agent
      for such Obligor or any Obligor as debtor-in-possession. The relative rights
      of
      Secured Lenders, on the one hand, and Assignees, on the other, to repayment
      of
      the Secured Lenders Debt and the Super Senior Secured Debt, respectively, and
      in
      or to any distributions from or in respect of any Obligor or any Collateral
      or
      proceeds of Collateral, shall continue after the filing thereof on the same
      basis as prior to the date of the petition, subject to any court order approving
      the financing of, or use of cash collateral by, any Obligor as
      debtor-in-possession.

     

    6.3 Bailee
      for Perfection; Delivery of Proceeds.
      Each
      Secured Creditor hereby appoints the others as agent for the purposes of
      perfecting their respective Liens in and on any of the Collateral; provided
      that
      no
      Secured Creditor shall have any duty or liability to protect or preserve any
      rights pertaining to any of the Collateral and, except for gross negligence
      or
      willful misconduct as determined pursuant to a final non-appealable order of
      a
      court of competent jurisdiction, each Secured Creditor hereby waives, and
      releases the other Secured Creditors from, all claims and liabilities arising
      pursuant to the other’s role as bailee with respect to the Collateral.

     

    6.4 Governing
      Law; Jurisdiction; Waiver of Jury Trial.
      (a)
      This Agreement shall be governed by and construed under the laws of the State
      of
      New York applicable to contracts made and to be performed entirely within the
      State of New York. Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in the State and County
      of
      New York for the adjudication of any dispute hereunder or in connection herewith
      or therewith or with any transaction contemplated hereby or thereby, and hereby
      irrevocably waives, and agrees not to assert in any suit, action or proceeding,
      any claim that it is not personally subject to the jurisdiction of any such
      court, that such suit, action or proceeding is brought in an inconvenient forum
      or that the venue of such suit, action or proceeding is improper. Nothing
      contained herein shall be deemed to limit in any way any right to serve process
      in any manner permitted by law.

     

    (b)
      EACH
      PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT ANY DISPUTE OR CONTROVERSY
      THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND
      DIFFICULT ISSUES AND, THEREFORE, EACH PARTY HEREBY IRREVOCABLY
      AND
      UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
      RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
      TO
      THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT OR
      THE
      TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND
      ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
      HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
      THE
      EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY
      UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS AGREEMENT AND HAS HAD
      AN
      OPPORTUNITY TO SEEK SEPARATE COUNSEL OF ITS OWN CHOICE TO REVIEW THIS AGREEMENT,
      (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH SUCH PARTY
      HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
      WAIVERS AND CERTIFICATIONS IN THIS SECTION
      6.4(b).

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    6.5
       Injunctive
      Relief.
      Each
      Party acknowledges and agrees that a breach by it of its obligations hereunder
      will cause irreparable harm to the other and that the remedy or remedies at
      law
      for any such breach will be inadequate and agrees, in the event of any such
      breach, in addition to all other available remedies, the non-breaching party
      shall be entitled to an injunction restraining any breach and requiring
      immediate and specific performance of such obligations without the necessity
      of
      showing economic loss or the posting of any bond.

    

    6.6 Severability.
      In the
      event that any provision of this Agreement becomes or is declared by a court
      of
      competent jurisdiction to be illegal, unenforceable or void, this Agreement
      shall continue in full force and effect without said provision; provided
      that in
      such case the parties shall negotiate in good faith to replace such provision
      with a new provision which is not illegal, unenforceable or void, as long as
      such new provision does not materially change the economic benefits of this
      Agreement to the parties.

    

    6.7
       Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, and all of which together shall constitute one and the
      same
      instrument. This Agreement may be executed and delivered by facsimile
      transmission.

     

    6.8 Notices.
      Any
      notice, demand or request required or permitted to be given by the respective
      parties hereto pursuant to the terms of this Agreement shall be in writing
      and
      shall be deemed delivered (i) when delivered personally or by verifiable
      facsimile transmission, unless such delivery is made on a day that is not a
      Business Day, in which case such delivery will be deemed to be made on the
      next
      succeeding Business Day, (ii) on the next Business Day after timely delivery
      to
      an overnight courier and (iii) on the Business Day actually received if
      deposited in the U.S. mail (certified or registered mail, return receipt
      requested, postage prepaid), addressed as follows:

     

    
      
        	
                                         To
                  Borrower or Obligors:

              	
                
                  VoIP,
                    Inc.

                

                151
                  So. Wymore Road, Suite 3000

                Altamonte
                  Springs, FL 32714

                Attn:
                  Anthony Cataldo, CEO

                ***

              

      

    

     

    With
      a
      copy by telecopier only to:

    

    
      	 	
              Sichenzia
                Ross Friedman Ference LLP

              61
                Broadway, 32nd
                Floor

              New
                York, NY 10006

              Attn:
                Marc Ross, Esq.

              ***

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	                                               
              To Assignees:	Centurion
              Microcap, L.P. 
              3014
                Avenue L

              Brooklyn,
                NY 11210

              ***

            

    

                      
      

    
      
        	 	
                Alpha
                  Capital Anstalt

                Pradafant
                  7

                9490
                  Furstentums

                Vaduz,
                  Lichtenstein

                ***

              

      

    

                    
      

    
      
        	 	Ellis
                International Ltd. 
                
                  53rd
                    Street Urbanizacion Obarrio

                

                Swiss
                  Tower, 16th Floor, Panama

                Republic
                  of Panama

                ***

              

      

    

                                    
      

    
      
        	 	
                Bristol
                  Investment Fund, Ltd.

                c/o
                  Bristol Capital Advisers, LLC

                10990
                  Wilshire Boulevard, Suite 1410

                Los
                  Angeles, California 90024

                ***

              

      

    

                    
      
      
        	 	
                Whalehaven
                  Capital Fund Limited

                c/o
                  FWS Capital Ltd.

                3rd
                  Floor, 14 Par-Laville Road

                Hamilton,
                  Bermuda HM08

                ***

              

      

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

                    
      

    
      
        	                       
                To Collateral Agent:	
                Barbara
                  R. Mittman, Esq.

                551
                  Fifth Avenue, Suite 1601

                New
                  York, New York 10176

                ***

              

      

    

                   
      

    
      
        	                To
                Secured Lenders:	
                To
                  the addresses and facsimile numbers listed

                on
                  Schedule A hereto.

              

      

    

                    
      
      
        	                To
                Assignors:	To
                the addresses and facsimile numbers listed 
                on
                  Schedule B hereto.

              

      

    

                                         

    If
      to
      Assignees, Assignors, Collateral

    
      Agent,
        or
        Secured Lenders,

      With
        a
        Copy to:

      
        
          	 	
                  Grushko
                    & Mittman, P.C.

                  551
                    Fifth Avenue, Suite 1601

                  New
                    York, New York 10176

                  ***

                

        

      

    

     

    Any
      Party
      may change the address(es) to which all notices, requests and other
      communications are to be sent by giving written notice of such address change
      to
      the other Parties in conformity with this Section
      6.8,
      but
      such change shall not be effective until notice of such change has been received
      by the other Party.

     

    6.9 Entire
      Agreement; Amendments.
      This
      Agreement constitutes the entire agreement between the parties with regard
      to
      the subject matter hereof and thereof, superseding all prior agreements or
      understandings, whether written or oral, between or among the parties. No
      amendment, modification or other change to this Agreement or waiver of any
      agreement or other obligation of the parties under this Agreement may be made
      or
      given unless such amendment, modification or waiver is set forth in writing
      and
      is signed by Assignors and Secured Lenders.
      Any
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given.
      

     

    6.10 OMNIBUS
      APPROVAL. BY
      SIGNING THIS AGREEMENT EACH PARTY HEREBY AGREES TO, RATIFIES AND ACKNOWLEDGES
      ALL THE TERMS, WAIVERS AND MODIFICATIONS HEREIN.

     

    6.11 Headings.
      The
      headings used in this Agreement are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement. 

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      as
      of the day and year first above written.

     

    
      
        [Signatures
          begin on next page]

         

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    
      ASSIGNEES

       

      
        
          	
                  CENTURION
                    MICROCAP L.P.

                	 	
                  ALPHA
                    CAPITAL ANSTALT

                
	 	 	 
	 	 	 
	
                  By:

                	 	 	
                  By:

                	 
	 	
                  Name:

                	 	 	
                  Name:

                
	 	
                  Title:

                	 	 	
                  Title:

                
	 	 	 
	
                  BRISTOL
                    INVESTMENT FUND, LTD.

                	 	
                  ELLIS
                    INTERNATIONAL, LTD.

                
	 	 	 
	 	 	 
	
                  By:

                	 	 	
                  By:

                	 
	 	
                  Name:

                	 	 	
                  Name:

                
	 	
                  Title:

                	 	 	
                  Title:

                
	 	 	 
	
                  WHALEHAVEN
                    CAPITAL FUND, LTD

                	 	 
	 	 	 
	 	 	 
	
                  By:

                	 	 	 
	 	
                  Name:

                	 	 
	 	
                  Title:

                	 	 

        

      

      

        SECURED
          LENDERS

        

        
          	 	 	 
	
                  ALPHA
                    CAPITAL ANSTALT f/k/a ALPHA CAPITAL AKTIENGESELLSCHAFT

                
	 	 	 
	 	 	 
	
                  BRIO
                    CAPITAL L.P.

                	 	
                  BRISTOL
                    INVESTMENT FUND, LTD.

                
	 	 	 
	 	 	 
	
                  CENTURION
                    MICROCAP, L.P.

                	 	
                  CHESTNUT
                    RIDGE PARTNERS LP

                
	 	 	 
	 	 	 
	
                  DKR
                    SOUNDSHORE OASIS HOLDING FUND LTD.

                	 	
                  CMS
                    CAPITAL

                
	 	 	 
	 	 	 
	
                  DOUBLE
                    U MASTER FUND L.P.

                	 	
                  ELLIS
                    INTERNATIONAL LTD.

                
	 	 	 
	 	 	 
	
                  GRUSHKO
                    & MITTMAN, P.C.

                	 	
                  IROQUOIS
                    CAPITAL

                
	 	 	 
	 	 	 
	
                  OSHER
                    CAPITAL INC.

                	 	
                  PLATINUM
                    LONG TERM GROWTH II INC.

                
	 	 	 
	 	 	 
	
                  STONESTREET
                    LIMITED PARTNERSHIP

                	 	
                  WHALEHAVEN
                    CAPITAL FUND LTD.

                

        

         

        [Signatures
          continue on next page]

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

      

    

    ASSIGNORS

    

    
      	
              ALPHA
                CAPITAL ANSTALT

            	 	
              WHALEHAVEN
                CAPITAL FUND LTD.

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	
              Name:

            	 	 	
              Name:

            
	 	
              Title:

            	 	 	
              Title:

            
	 	 	 	 	 
	
              CHESTNUT
                RIDGE PARTNERS LP

            	 	
              DKR
                SOUNDSHORE OASIS HOLDING FUND LTD

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	
              Name:

            	 	 	
              Name:

            
	 	
              Title:

            	 	 	
              Title:

            
	 	 	 	 	 
	
              ELLIS
                INTERNATIONAL LTD.

            	 	
              PLATINUM
                LONG TERM GROWTH I INC.

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	 	
              Name:

            	 	 	
              Name:

            
	 	
              Title:

            	 	 	
              Title:

            

    

     

    COLLATERAL
      AGENT

     

    Pursuant
      to the Joint Instructions of the Secured Lenders, Barbara R. Mittman, as
      collateral agent under the Security Agreements, dated on or about July 5, 2005,
      January 6, 2006, February 2, 2006, October 14, 2006, February 16, 2007, April
      6,
      2007, and July 27, 2007, as amended, securing the Obligations of VoIP Inc.
      and
      its subsidiaries under the Security Agreements and all documents in connection
      therewith, as amended, hereby acknowledges this Agreement.

    

    
      	
              BARBARA
                R. MITTMAN as Collateral Agent

            	 
	 	 
	 	 
	 	 

    

    

    [Signatures
      continued on next page]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
              BORROWER

            
	 	 	 	 
	
              VOIP
                INC.

            	 	 	 
	 	 	 	 
	
              Name:

            	 	 	 	 
	
              Title:

            	 	 	 	 
	 	 	 	 
	
              OBLIGORS

            
	 	 	 	 
	
              VOIP
                INC.

            	 	 	 
	 	 	 	 
	
              Name:

            	 	 	 	 
	
              Title:

            	 	 	 	 
	 	 	 	 	 
	
              VOIPSOLUTIONS

            	 	
              EGLOBALPHONE

            
	
              a
                Florida corporation

            	 	
              a
                Florida corporation

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Its:

            	 	 	
              Its:

            	 
	 	 	 	 	 
	
              CAERUS,
                INC

            	 	
              VOX
                CONSULTING GROUP, INC.

            
	
              a
                Delaware corporation

            	 	
              a
                Florida corporation

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Its:

            	 	 	
              Its:

            	 
	 	 	 	 	 
	
              VCG
                TECHNOLOGIES

            	 	
              VOLO
                COMMUNICATIONS, INC.

            
	
              a
                Florida corporation

            	 	
              a
                Delaware corporation

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Its:

            	 	 	
              Its:

            	 
	 	 	 	 	 
	
              CAERUS
                BILLING, INC.

            	 	
              CAERUS
                NETWORKS, INC.

            
	
              a
                Delaware corporation

            	 	
              a
                Delaware corporation

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Its:

            	 	 	
              Its:

            	 
	 	 	 	 	 
	
              VOICEONE
                COMMUNICATIONS, LLC

            	 	
              VOIP
                ACQUISITION COMPANY

            
	
              a
                Delaware Limited Liability corporation

            	 	
              a
                Delaware corporation

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
              By:

            	 
	
              Its:

            	 	 	
              Its:

            	 

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

      JOINT
        INSTRUCTIONS TO COLLATERAL AGENT

      

      Each
        of
        the undersigned understands, approves and authorizes the execution of the
        Intercreditor, Subordination, Default Waiver and Assignment Agreement (the
        “Agreement”) and instructs Barbara R. Mittman as Collateral Agent for the
        Secured Lenders to execute the Agreement and further instructs the Collateral
        Agent to take all action necessary to effectuate the intentions of the Parties
        thereto and upon the execution of Secured Lenders holding not less than 65%
        of
        the Secured Obligations, the subordination of Secured Lenders will become
        effective as to all Secured Lenders and upon the execution of Secured Lenders
        holding not less than 80% of the Secured Obligations, the remaining terms
        and
        conditions of the Agreement will become effective. Each of the undersigned
        specifically acknowledges that upon the execution of the Agreement, the rights
        of the Collateral Agent and the rights of the undersigned will modified and
        amended as described therein. Any Collateral or proceeds thereof, which the
        Collateral Agent receives shall be remitted in accordance with the terms
        of the
        Agreement.

      

      SECURED
        LENDERS

       

      
        	 	 	 
	
                ALPHA
                  CAPITAL ANSTALT f/k/a ALPHA CAPITAL AKTIENGESELLSCHAFT

              
	 	 	 
	 	 	 
	
                BRIO
                  CAPITAL L.P.

              	 	
                BRISTOL
                  INVESTMENT FUND, LTD.

              
	 	 	 
	 	 	 
	
                CENTURION
                  MICROCAP, L.P.

              	 	
                CHESTNUT
                  RIDGE PARTNERS LP

              
	 	 	 
	 	 	 
	
                DKR
                  SOUNDSHORE OASIS HOLDING FUND LTD.

              	 	
                CMS
                  CAPITAL

              
	 	 	 
	 	 	 
	
                DOUBLE
                  U MASTER FUND L.P.

              	 	
                ELLIS
                  INTERNATIONAL LTD.

              
	 	 	 
	 	 	 
	
                GRUSHKO
                  & MITTMAN, P.C.

              	 	
                IROQUOIS
                  CAPITAL

              
	 	 	 
	 	 	 
	
                OSHER
                  CAPITAL INC.

              	 	
                PLATINUM
                  LONG TERM GROWTH I INC.

              
	 	 	 
	 	 	 
	
                STONESTREET
                  LIMITED PARTNERSHIP

              	 	
                WHALEHAVEN
                  CAPITAL FUND LTD.

              

      

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    TABLE
      OF SCHEDULES
      AND EXHIBITS

    

    
      	
              Schedule
                A

            	
              List
                of Secured Lenders with contact information

            
	
              Schedule
                B

            	
              List
                of Assignors with contact information

            
	
              Schedule
                2.1(a)

            	
              Table
                of VoIP’s acknowledged current obligations

            
	
              Schedule
                2.1(b)

            	
              Table
                of Liquidated Damages Notes

            
	
              Schedule
                2.3(a)

            	
              Table
                of Waiver Notes

            
	
              Schedule
                2.3(b)

            	
              Table
                of Waiver Warrants

            
	
              Schedule
                2.4

            	
              Table
                of Assigned Debt

            
	
              Schedule
                2.6

            	
              Table
                of Assignment Consideration

            
	
              Schedule
                3.1(a)

            	
              Table
                of Additional Debt becoming part of the Super Senior Secured
                Debt

            
	
              Schedule
                4.5

            	
              Persons
                providing a Lockup Agreement

            
	 	 
	
              Exhibit
                A

            	
              Form
                of Opinion of Counsel

            
	
              Exhibit
                B

            	
              Form
                of Lockup Agreement

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

      SCHEDULE
        A

      

      Alpha
        Capital Anstalt

      Pradafant
        7

      9490
        Furstentums

      Vaduz,
        Lichtenstein

      ***

      

      Brio
        Capital, L.P.

      523
        Albermale Road

      Cedarhurst,
        NY 11516

      ***

      

      Bristol
        Investment Fund, Ltd.

      c/o
        Bristol Capital Advisers, LLC

      10990
        Wilshire Boulevard, Suite 1410

      Los
        Angeles, California 90024

      
        ***

      Centurion
        Microcap, L.P.

      3014
        Avenue L

      Brooklyn,
        NY 11210

      ***

      

      Chestnut
        Ridge Partners, L.P.

      50
        Tice
        Boulevard

      Woodcliff
        Lake, NJ 07677

      ***

      

      CMS
        Capital

      9612
        Van
        Nuys Boulevard, Suite 108

      Panorama
        City, CA 91402

      ***

      

      DKR
        Soundshore Oasis Holding Fund, Ltd.

      c/o
        DKR
        Capital Partners, L.P.

      1281
        East
        Main Street

      Stamford
        CT 06902

      ***

      

      Double
        U
        Master Fund, L.P.

      c/o
        Navigator Management, Ltd.

      Harbor
        House, Waterfront Drive, P.O Box 972

      Road
        Town
        BVI

      ***

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      Ellis
        International Ltd.

      53rd
        Street
        Urbanizacion Obarrio

      Swiss
        Tower, 16th
        Floor,
        Panama

      Republic
        of Panama

      ***

      

      Grushko
        & Mittman, P.C.

      551
        Fifth
        Avenue, Suite 1601

      New
        York,
        New York 10176

      ***

       

      Iroquois
        Capital

      641
        Lexington Avenue, 26th
        Floor

      New
        York,
        NY 10022

      ***

      

      Osher
        Capital

      5
        Sansberry Lane

      Spring
        Valley, NY 10977

      ***

      

      Platinum
        Long term Growth II, Inc. 

      152
        West
        57th
        Street

      New
        York,
        NY 10019

      ***

      

      Stonestreet
        Limited Partnership

      33
        Prince
        Arthur Avenue

      Tornoto
        Ont. M5K 1B2

      Canada

      ***

      

      Whalehaven
        Capital Fund Limited

      c/o
        FWS
        Capital Ltd.

      3rd
        Floor, 14 Par-Laville Road

      Hamilton,
        Bermuda HM08

      ***

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      Schedule
        B

      

      Alpha
        Capital Anstalt

      Pradafant
        7

      9490
        Furstentums

      Vaduz,
        Lichtenstein

      ***

      

      Bristol
        Investment Fund, Ltd.

      c/o
        Bristol Capital Advisers, LLC

      10990
        Wilshire Boulevard, Suite 1410

      Los
        Angeles, California 90024

      ***

       

      Chestnut
        Ridge Partners, L.P.

      50
        Tice
        Boulevard

      Woodcliff
        Lake, NJ 07677

      ***

       

      DKR
        Soundshore Oasis Holding Fund, Ltd.

      c/o
        DKR
        Capital Partners, L.P.

      1281
        East
        Main Street

      Stamford
        CT 06902

      ***

      

      Ellis
        International Ltd.

      53rd
        Street
        Urbanizacion Obarrio

      Swiss
        Tower, 16th
        Floor,
        Panama

      Republic
        of Panama

      ***

      

      Platinum
        Long term Growth II, Inc. 

      152
        West
        57th
        Street

      New
        York,
        NY 10019

      ***

      

      Whalehaven
        Capital Fund Limited

      c/o
        FWS
        Capital Ltd.

      3rd
        Floor, 14 Par-Laville Road

      Hamilton,
        Bermuda HM08

      ***

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    
      

        
          	
                  VoIP,
                    Inc. 

                	 	
                  Schedule
                    2.1(a) 

                
	
                  Secured
                    Lenders' Debt 

                	 	 	 
	
                  8/31/07
                    

                	 	 	 
	 	 	 	 

        

        

        
          	
                  Subscriber
                    

                	 	
                  Principal

                	 	
                  Interest

                	 	
                  Damages

                	 
	
                  Alpha
                    Capital Aktiengesellschaft 

                	 	
                  $

                	
                  1,983,909.43

                	 	
                  $

                	
                  81,986.09

                	 	
                  $

                	
                  462,746.81

                	 
	
                  Brio
                    Capital LP 

                	 	
                  $

                	
                  187,500.00

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  30,125.00

                	 
	
                  Bristol
                    Investment Fund, Ltd. 

                	 	
                  $

                	
                  2,239,017.72

                	 	
                  $

                	
                  99,292.87

                	 	
                  $

                	
                  547,631.49

                	 
	
                  Centurion
                    Microcap, L.P. 

                	 	
                  $

                	
                  810,289.60

                	 	
                  $

                	
                  1,730.56

                	 	
                  $

                	
                  111,469.63

                	 
	
                  Chestnut
                    Ridge Partners LP 

                	 	
                  $

                	
                  622,151.08

                	 	
                  $

                	
                  27,358.92

                	 	
                  $

                	
                  74,369.23

                	 
	
                  CMS
                    Capital 

                	 	
                  $

                	
                  245,377.58

                	 	
                  $

                	
                  9,612.08

                	 	
                  $

                	
                  38,232.71

                	 
	
                  DKR
                    Soundshore Oasis Holding Fund Ltd. 

                	 	
                  $

                	
                  1,102,175.15

                	 	
                  $

                	
                  57,175.18

                	 	
                  $

                	
                  187,190.28

                	 
	
                  Double
                    U Master Fund L.P. 

                	 	
                  $

                	
                  249,565.82

                	 	
                  $

                	
                  2,080.15

                	 	
                  $

                	
                  20,278.75

                	 
	
                  Ellis
                    International Ltd. 

                	 	
                  $

                	
                  1,771,809.99

                	 	
                  $

                	
                  7,784.74

                	 	
                  $

                	
                  336,816.04

                	 
	
                  Grushko
                    & Mittman, P.C. 

                	 	
                  $

                	
                  87,799.68

                	 	
                  $

                	
                  4,487.22

                	 	
                  $

                	
                  15,277.27

                	 
	
                  Iroquois
                    Master Fund Ltd. / Iroquois Capital 

                	 	
                  $

                	
                  87,500.00

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  14,058.33

                	 
	
                  Nite
                    Capital LP 

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  -

                	 	
                  $

                	
                  59,340.00

                	 
	
                  Osher
                    Capital Inc. 

                	 	
                  $

                	
                  26,250.00

                	 	
                  $

                	
                  (0.00

                	
                  )

                	
                  $

                	
                  13,231.71

                	 
	
                  Platinum
                    Long Term Growth II Inc. 

                	 	
                  $

                	
                  482,670.78

                	 	
                  $

                	
                  9,837.79

                	 	
                  $

                	
                  109,753.78

                	 
	
                  Stonestreet
                    Limited Partnership 

                	 	
                  $

                	
                  271,418.36

                	 	
                  $

                	
                  21,570.57

                	 	
                  $

                	
                  56,122.59

                	 
	
                  Whalehaven
                    Capital Fund Ltd. contact 

                	 	
                  $

                	
                  2,360,773.22

                	 	
                  $

                	
                  98,400.58

                	 	
                  $

                	
                  341,277.81

                	 
	
                  Nathan
                    Zack 

                	 	
                  $

                	
                  100,000.00

                	 	
                  $

                	
                  849.32

                	 	
                  $

                	
                  -

                	 
	
                  GHT
                    Associates LLC 

                	 	
                  $

                	
                  100,000.00

                	 	
                  $

                	
                  849.32

                	 	
                  $

                	
                  -

                	 
	 	 	
                  $

                	
                  12,728,208.41

                	 	
                  $

                	
                  423,015.37$

                	 	
                  $

                	
                  2,417,921.43

                	 

        

      

       

      Schedule
        2.1(b)

      

        
          	
                  Secured
                    Lender

                	 	
                  Principal
                    Amount 

                  of
                    Liquidated 

                  Damages
                    Notes

                	 
	
                  Alpha
                    Capital Anstalt

                	 	
                  $

                	
                  462,476.81

                	 
	
                  Brio
                    Capital, L.P.

                	 	
                  $

                	
                  30,125.00

                	 
	
                  Bristol
                    Investment Fund, Ltd.

                	 	
                  $

                	
                  547,631.49

                	 
	
                  Centurion
                    Microcap, L.P.

                	 	
                  $

                	
                  111,469.63

                	 
	
                  Chestnut
                    Ridge partners, L.P.

                	 	
                  $

                	
                  74,369.23

                	 
	
                  CMS
                    Capital

                	 	
                  $

                	
                  38,232.71

                	 
	
                  DKR
                    Soundshore oasis Holding Fund Ltd.

                	 	
                  $

                	
                  187,190.28

                	 
	
                  Double
                    U Master Fund, L.P.

                	 	
                  $

                	
                  20,278.75

                	 
	
                  Ellis
                    International Ltd.

                	 	
                  $

                	
                  336,816.04

                	 
	
                  Grushko
                    & Mittman, P.C.

                	 	
                  $

                	
                  15,277.27

                	 
	
                  Iroquois
                    Capital

                	 	
                  $

                	
                  14,058.33

                	 
	
                  Nite
                    Capital, L.P. 

                	 	
                  $

                	
                  59,340.00

                	 
	
                  Osher
                    Capital, Inc.

                	 	
                  $

                	
                  13,231.71

                	 
	
                  Platinum
                    Long Term Growth II Inc.

                	 	
                  $

                	
                  109,753.78

                	 
	
                  Stonestreet
                    Limited Partnership

                	 	
                  $

                	
                  56,122.59

                	 
	
                  Whalehaven
                    Capital Fund Ltd.

                	 	
                  $

                	
                  341,277.81

                	 
	
                  Total

                	 	
                  $

                	
                  2,417,651.43

                	 

        

      

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      Schedule
        2.3 (a)

       

    

    
      
        	
                Secured
                  Lender

              	 	
                Principal
                  Amount 

                of
                  Waiver Note

              	 
	
                Alpha
                  Capital Anstalt

              	 	
                $

              	
                333,341.39

              	 
	
                Brio
                  Capital, L.P.

              	 	
                $

              	
                28,295.19

              	 
	
                Bristol
                  Investment Fund, Ltd.

              	 	
                $

              	
                371,839.17

              	 
	
                Centurion
                  Microcap, L.P.

              	 	
                $

              	
                60,268.75

              	 
	
                Chestnut
                  Ridge Partners, L.P.

              	 	
                $

              	
                93,887.37

              	 
	
                CMS
                  Capital

              	 	
                $

              	
                37,029.36

              	 
	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 	
                $

              	
                166,326.68

              	 
	
                Double
                  U Master Fund, L.P.

              	 	
                $

              	
                37,487.08

              	 
	
                Ellis
                  International Ltd.

              	 	
                $

              	
                348,408.58

              	 
	
                Grushko
                  & Mittman, P.C.

              	 	
                $

              	
                13,249.64

              	 
	
                Iroquois
                  Capital

              	 	
                $

              	
                13,204.42

              	 
	
                Osher
                  Capital, Inc.

              	 	
                $

              	
                3,961.33

              	 
	
                Platinum
                  Long Term Growth II Inc.

              	 	
                $

              	
                80,392.38

              	 
	
                Stonestreet
                  Limited Partnership

              	 	
                $

              	
                40,959.11

              	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	
                $

              	
                371,349.55

              	 
	
                Total

              	 	
                $

              	
                2,000,000.00

              	 

      

    

    

      Schedule
        2.3 (b)

       

    

    
      
        	
                Assignee

              	 	 	
                Total
                  Shares Waiver 
Warrant to be
exercisable for

              	 
	
                Alpha
                  Capital Anstalt

              	 	 	
                1,111,913

              	 
	
                Bristol
                  Investment Fund, Ltd.

              	 	 	
                666,667

              	 
	
                Centurion
                  Microcap, L.P.

              	 	 	
                2,533,277

              	 
	
                Ellis
                  International Ltd.

              	 	 	
                279,109

              	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                279,109

              	 

      

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

      Schedule
        2.4

       

    

    
      
        	
                Assignor

              	 	
                Date
                  of
Note

              	 	
                Amount
                  being Assigned

              	 	
                Assignee

              	 
	
                Alpha
                  Capital Anstalt

              	 	 	
                1/6/2006

              	 	
                $

              	
                191,400.00

              	 	Alpha
                Capital Anstalt	 
	
                Alpha
                  Capital Anstalt

              	 	 	
                1/7/2006

              	 	
                $

              	
                31,400.00

              	 	Centurion
                Microcap, L.P.	 
	
                Chestnut
                  Ridge partners, L.P.

              	 	 	
                1/6/2006

              	 	
                $

              	
                66,666.00

              	 	Ellis
                International Ltd.	 
	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 	 	
                1/6/2006

              	 	
                $

              	
                75,266.00

              	 	Alpha
                Capital Anstalt	 
	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 	 	
                1/7/2006

              	 	
                $

              	
                75,534.00

              	 	Centurion
                Microcap, L.P.	 
	
                Ellis
                  International Ltd.

              	 	 	
                1/6/2006

              	 	
                $

              	
                172,840.00

              	 	Centurion
                Microcap, L.P.	 
	
                Platinum
                  Long Term Growth II Inc.

              	 	 	
                1/6/2006

              	 	
                $

              	
                52,200.00

              	 	Centurion
                Microcap, L.P.	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                1/6/2006

              	 	
                $

              	
                66,666.00

              	 	Whalehaven
                Capital Fund Ltd.	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                1/7/2006

              	 	
                $

              	
                237,254.00

              	 	Centurion
                Microcap, L.P.	 
	
                Alpha
                  Capital Anstalt

              	 	 	
                9/6/2007

              	 	
                $

              	
                123,041.20

              	 	Alpha
                Capital Anstalt	 
	
                Alpha
                  Capital Anstalt

              	 	 	
                9/7/2007

              	 	
                $

              	
                118,400.00

              	 	Centurion
                Microcap, L.P.	 
	
                Chestnut
                  Ridge partners, L.P.

              	 	 	
                9/6/2007

              	 	
                $

              	
                35,148.00

              	 	Centurion
                Microcap, L.P.	 
	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 	 	
                9/6/2007

              	 	
                $

              	
                38,000.00

              	 	Ellis
                International Ltd.	 
	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 	 	
                9/7/2007

              	 	
                $

              	
                8,634.00

              	 	Centurion
                Microcap, L.P.	 
	
                Ellis
                  International Ltd.

              	 	 	
                9/6/2007

              	 	
                $

              	
                122,960.00

              	 	Centurion
                Microcap, L.P.	 
	
                Platinum
                  Long Term Growth II Inc.

              	 	 	
                9/6/2007

              	 	
                $

              	
                27,260.00

              	 	Alpha
                Capital Anstalt	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                9/6/2007

              	 	
                $

              	
                38,000.00

              	 	Whalehaven
                Capital Fund Ltd.	 
	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                9/7/2007

              	 	
                $

              	
                95,608.80

              	 	Centurion
                Microcap, L.P.	 
	
                Total

              	 	 	
              	 	
                $

              	
                1,576,278.00

              	 	 	 

      

    

     

    Schedule
      2.6

    
       

    

    
      	
              Cash
                Portion

            	 
	
              Assignee

            	 	
              Cash

            	 	
              Assignor

            	 
	
              Alpha
                Capital Anstalt

            	 	
              $

            	
              161,984.54

            	 	Alpha
              Capital Anstalt	 
	
              Alpha
                Capital Anstalt

            	 	
              $

            	
              88,015.46

            	 	Whalehaven
              Capital Fund Ltd.	 
	
              Centurion
                Microcap, L.P.

            	 	
              $

            	
              64,648.49

            	 	Whalehaven
              Capital Fund Ltd.	 
	
              Centurion
                Microcap, L.P.

            	 	
              $

            	
              35,525.27

            	 	Chestnut
              Ridge Partners, L.P.	 
	
              Centurion
                Microcap, L.P.

            	 	
              $

            	
              68,889.31

            	 	DKR
              Soundshore Oasis Holding Fund Ltd.	 
	
              Centurion
                Microcap, L.P.

            	 	
              $

            	
              103,211.49

            	 	Ellis
              International Ltd.	 
	
              Centurion
                Microcap, L.P.

            	 	
              $

            	
              27,725.44

            	 	Platinum
              Long Term Growth II Inc.	 
	
              Total

            	 	
              $

            	
              550,000.00

            	 	 	 

    

     

    
      
        	
                Notes
                  being assigned as payment

              	 
	
                Maker

              	 	
                Holder

              	 	
                Date

              	 	
                Amount

              	 	
                Assignor

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Alpha
                  Capital Anstalt

              	 	 	
                7/20/07

              	 	
                $

              	
                83,333.00

              	 	 	
                Alpha
                  Capital Anstalt

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                100,740.04

              	 	 	
                Alpha
                  Capital Anstalt

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                40,369.56

              	 	 	
                Chestnut
                  Ridge Partners, L.P.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                78,283.18

              	 	 	
                DKR
                  Soundshore Oasis Holding Fund Ltd.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Ellis
                  International Ltd.

              	 	 	
                7/20/07

              	 	
                $

              	
                83,333.00

              	 	 	
                Ellis
                  International Ltd.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                33,952.60

              	 	 	
                Ellis
                  International Ltd.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                31,506.13

              	 	 	
                Platinum
                  Long Term Growth II Inc.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Whalehaven
                  Capital Fund Ltd.

              	 	 	
                7/20/07

              	 	
                $

              	
                83,333.00

              	 	 	
                Whalehaven
                  Capital Fund Ltd.

              	 
	
                VoIP,
                  Inc.

              	 	 	
                Centurion
                  Microcap, L.P.

              	 	 	
                8/6/07

              	 	
                $

              	
                90,148.49

              	 	 	
                Whalehaven
                  Capital Fund Ltd.

              	 
	
                Total

              	 	 	
              	 	 	
              	 	
                $

              	
                624,999.00

              	 	 	
              	 

      

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.1

     

    
      Additional
        Notes issued by VoIP obtaining complete or partial 

      Super
        Senior Secured Status

    

    
      	
              Holder

            	 	
              Date

            	 	
              Principal Amount of Note obtaining

              Super Senior Secured Status

            	 
	
              Alpha
                Capital Anstalt

            	 	 	
              7/27/2007

            	 	
              $

            	
              125,000.00

            	 
	
              Bristol
                Investment Fund, Ltd.

            	 	 	
              7/27/2007

            	 	
              $

            	
              125,000.00

            	 
	
              Alpha
                Capital Anstalt

            	 	 	
              6/19/2007

            	 	
              $

            	
              75,000.00

            	 
	
              Bristol
                Investment Fund, Ltd.

            	 	 	
              6/19/2007

            	 	
              $

            	
              75,000.00

            	 
	
              Ellis
                International Ltd.

            	 	 	
              6/14/2007

            	 	
              $

            	
              50,000.00

            	 
	
              Whalehaven
                Capital Fund Ltd.

            	 	 	
              6/14/2007

            	 	
              $

            	
              75,000.00

            	 
	
              Alpha
                Capital Anstalt

            	 	 	
              4/6/2007

            	 	
              $

            	
              216,967.20

            	 
	
              Ellis
                International Ltd.

            	 	 	
              4/6/2007

            	 	
              $

            	
              54,666.00

            	 
	
              Bristol
                Investment Fund, Ltd.

            	 	 	
              2/16/2007

            	 	
              $

            	
              50,000.00

            	 
	
              Whalehaven
                Capital Fund Ltd.

            	 	 	
              2/16/2007

            	 	
              $

            	
              29,666.00

            	 
	
              Centurion
                Microcap, L.P.

            	 	 	
              2/16/2007

            	 	
              $

            	
              405,200.83

            	 
	
              Centurion
                Microcap, L.P.

            	 	 	
              10/17/2006

            	 	
              $

            	
              148,739.25

            	 
	
              Centurion
                Microcap, L.P.

            	 	 	
              2/2/2006

            	 	
              $

            	
              119,387.02

            	 
	
              Centurion
                Microcap, L.P.

            	 	 	
              1/6/2006

            	 	
              $

            	
              96,962.50

            	 
	
              Total

            	 	 	
            	 	
              $

            	
              1,646,588.80

            	 

    

    

    

    Schedule
      4.5

    

    Lockup
      Agreement.

     

    
      
        
        

      

      
        22Exhibit
      10.5

    

    LOCKUP
      AGREEMENT

    

    This
      AGREEMENT (the “Agreement”) is made as of the 12th day of September, 2007, by
VoIP,
      Inc.,
      a Texas
      corporation (the “Company”), with regard to Anthony Cataldo and Shawn Lewis
      (each a “Holder”), in connection with their ownership of common shares of the
      Company.

    

    NOW,
      THEREFORE, for good and valuable consideration, the sufficiency and receipt
      of
      which consideration are hereby acknowledged, the Company agrees to use its
      best
      efforts to obtain agreements with the Holders as soon as reasonably possible,
      as
      follows:

    

    1. Background.

    

    a.
       Holder
      is
      the beneficial owner of the amount of shares of the Common Stock, $.001 par
      value, of the Company (“Common Stock”) designated on the signature page
      hereto.

    

    b. Holder
      acknowledges that the Company has entered into or will enter into at or about
      the date hereof agreements with subscribers to the Company’s Notes, some of
      which are convertible into Common Stock (“Notes”) and Warrants (the
“Assignees”). Holder understands that, as a condition to proceeding with
      the
      Intercreditor, Subordination, Default Waiver and Assignment
      Agreement
      (the
“Agreement”), the Assignees have required, and the Company has agreed to obtain
      on behalf of the Assignees an agreement from the Holder, so long as said Holder
      is an executive officer of the Company, to refrain from selling any securities
      of the Company from the date hereof until the later of: (a) two (2) years from
      the date of this Agreement; or seventy five percent (75%) of the Super Senior
      Secured Debt (as defined in the Agreement) is indefeasibly paid (the
“Restriction Period”). 

    

    2. Share
      Restriction. 

    

    a. Holder
      hereby agrees that during the Restriction Period, so long as said Holder is
      an
      executive officer of the Company, the Holder will not sell or otherwise dispose
      of any shares of Common Stock or any options, warrants or other rights to
      purchase shares of Common Stock or any other security of the Company which
      Holder owns or has a right to acquire as of the date hereof, other than in
      connection with an offer made to all shareholders of the Company in connection
      with merger, consolidation or similar transaction involving the Company. Holder
      further agrees that the Company is authorized to and the Company agrees to
      place
“stop orders” on its books to prevent any transfer of shares of Common Stock or
      other securities of the Company held by Holder in violation of this Agreement.
      The Company agrees not to allow to incur any transaction inconsistent with
      this
      Agreement.

    

    b. Any
      subsequent issuance to and/or acquisition by Holder of Common Stock or options
      or instruments convertible into Common Stock will be subject to the provisions
      of this Agreement.

    

    c. Notwithstanding
      the foregoing restrictions on transfer, the Holder may, at any time and from
      time to time during the Restriction Period, transfer the Common Stock (i) as
      bona fide gifts or transfers by will or intestacy, (ii) to any trust for the
      direct or indirect benefit of the undersigned or the immediate family of the
      Holder, provided that any such transfer shall not involve a disposition for
      value, (iii) to a partnership which is the general partner of a partnership
      of
      which the Holder is a general partner, provided, that, in the case of any gift
      or transfer described in clauses (i), (ii) or (iii), each donee or transferee
      agrees in writing to be bound by the terms and conditions contained herein
      in
      the same manner as such terms and conditions apply to the undersigned. For
      purposes hereof, “immediate family” means any relationship by blood, marriage or
      adoption, not more remote than first cousin.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3. Miscellaneous.

    

    a. At
      any
      time, and from time to time, after the signing of this Agreement Holder will
      execute such additional instruments and take such action as may be reasonably
      requested by the Subscribers to carry out the intent and purposes of this
      Agreement.

    

    b. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to principles of conflicts of laws. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts and
      federal courts located in the state and county of New York. The parties to
      this
      Agreement hereby irrevocably waive any objection to jurisdiction and venue
      of
      any action instituted hereunder and shall not assert any defense based on lack
      of jurisdiction or venue or based upon forum
      non conveniens.
      The
      parties executing this Agreement and other agreements referred to herein or
      delivered in connection herewith agree to submit to the in personam jurisdiction
      of such courts and hereby irrevocably waive trial by jury.
      The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney's fees and costs. In the event that any provision of this
      Agreement or any other agreement delivered in connection herewith is invalid
      or
      unenforceable under any applicable statute or rule of law, then such provision
      shall be deemed inoperative to the extent that it may conflict therewith and
      shall be deemed modified to conform with such statute or rule of law. Any such
      provision which may prove invalid or unenforceable under any law shall not
      affect the validity or enforceability of any other provision of any
      agreement.

    

    c. The
      restrictions on transfer described in this Agreement are in addition to and
      cumulative with any other restrictions on transfer otherwise agreed to by the
      Holder or to which the Holder is subject to by applicable law.

    

    d. This
      Agreement shall be binding upon Holder, its legal representatives, successors
      and assigns.

    

    e. This
      Agreement may be signed and delivered by facsimile and such facsimile signed
      and
      delivered shall be enforceable.

    

    f. The
      Company agrees not to take any action or allow any act to be taken which would
      be inconsistent with this Agreement.

    

    g. The
      Holder acknowledges that this Lockup Agreement is being entered into for the
      benefit of the Assignees identified in the Agreement dated September 12, 2007
      between the Company and the Assignees, may be enforced by the Assignees and
      may
      not be amended without the consent of the Assignees, which may be withheld
      for
      any reason.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, and intending to be legally bound hereby, Holder has executed
      this Lockup Agreement as of the day and year first above written.

    

    
      	 	
              COMPANY:

            
	 	 
	 	
              VoIP,
                INC.

            
	 	 
	 	
              /s/
                Anthony Cataldo
                

              

              By:  
                Anthony Cataldo

            
	 	
              Its:  
                Chief Executive Officer

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