Document:

Exhibit
      10.5

     

    LOCKBOX
      ESCROW AGREEMENT

     

    This
      Agreement is dated as of the 18th day of December, 2007 among VoIP, Inc., a
      Texas corporation (the "Borrower"), the parties identified on Schedule A hereto
      (each
      a
“Lender”, and collectively “Lenders”), and
      Grushko & Mittman, P.C. (the "Escrow Agent"):

     

    WITNESSETH:

     

    WHEREAS,
      Lenders have and are loaning to the Borrower (“Loans”), which are referred to as
      the Lockbox Notes, as that terms is defined in the Intercreditor Agreement
      dated
      as of this date (“Intercreditor Agreement”) and are entering into a a “Loan
      Agreement” dated as of this date (“Loan Agreement”); and

     

    WHEREAS,
      the parties hereto require the Borrower to repay the Loans with the proceeds
      of
      the Receivables to be received in the Lockbox Account to be delivered to the
      Escrow Agent to be held in escrow in the Lockbox Account and released by the
      Escrow Agent in accordance with the terms and conditions of this Agreement
      and
      the Loan Agreement; and

     

    WHEREAS,
      the Escrow Agent is willing to serve as escrow agent pursuant to the terms
      and
      conditions of this Agreement and Escrow Agreement;

     

    NOW
      THEREFORE, the parties agree as follows:

    

    ARTICLE
      I

    INTERPRETATION

     

    1.1. Definitions.
      Whenever used in this Agreement, the following terms shall have the following
      respective meanings:

     

    § "Agreement"
      means this Agreement and Loan Agreement and all amendments made hereto and
      thereto by written agreement between the parties;

     

    § "Escrowed
      Payment" shall mean the Receivables as defined below;

     

    § "Receivables"
      means all rights to the payment of money now owned or hereafter acquired by
      Borrower, whether due or to become due and whether or not earned by performance
      including, but not limited to, Accounts, chattel paper, instruments, general
      intangibles, and all guaranties and security therefor and all contracts relating
      thereto and all returned and repossessed goods; provided that the same arise
      in
      connection with the extension of credit provided to Borrower by Lender pursuant
      to the Loan Agreement.

     

    1.2. Entire
      Agreement.
      This
      Agreement along with the Loan Agreement constitute the entire agreement between
      the parties hereto relating to the Receivables and the Lockbox Accont and
      supersedes all prior agreements, understandings, negotiations and discussions,
      whether oral or written, of the parties. There are no warranties,
      representations and other agreements made by the parties in connection with
      the
      subject matter hereof except as specifically set forth in this
      Agreement.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.3. Extended
      Meanings.
      In this
      Agreement words importing the singular number include the plural and vice versa;
      words importing the masculine gender include the feminine and neuter genders.
      The word "person" includes an individual, body corporate, partnership, trustee
      or trust or unincorporated association, executor, administrator or legal
      representative.

     

    1.4. Waivers
      and Amendments.
      This
      Agreement may be amended, modified, superseded, cancelled, renewed or extended,
      and the terms and conditions hereof may be waived, only by a written instrument
      signed by all parties, or, in the case of a waiver, by the party waiving
      compliance. Except as expressly stated herein, no delay on the part of any
      party
      in exercising any right, power or privilege hereunder shall operate as a waiver
      thereof, nor shall any waiver on the part of any party of any right, power
      or
      privilege hereunder preclude any other or future exercise of any other right,
      power or privilege hereunder.

     

    1.5. Headings.
      The
      division of this Agreement into articles, sections, subsections and paragraphs
      and the insertion of headings are for convenience of reference only and shall
      not affect the construction or interpretation of this Agreement.

     

    1.6. Law
      Governing this Agreement.
      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 and federal
      courts located in the state and county of New York. Both parties and the
      individuals executing this Agreement and other agreements on behalf of the
      Borrower agree to submit to the jurisdiction of such courts and waive trial
      by
      jury. The prevailing party (which shall be the party which receives an award
      most closely resembling the remedy or action sought) 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.

     

    1.7. Specific
      Enforcement, Consent to Jurisdiction.
      The
      Borrower and Lender acknowledge and agree that irreparable damage would occur
      in
      the event that any of the provisions of this Agreement were not performed in
      accordance with their specific terms or were otherwise breached. It is
      accordingly agreed that the parties shall be entitled to an injuction or
      injunctions to prevent or cure breaches of the provisions of this Agreement
      and
      to enforce specifically the terms and provisions hereof or thereof, this being
      in addition to any other remedy to which any of them may be entitled by law
      or
      equity. Subject to Section 1.6 hereof, each of the Borrower and Lender hereby
      waives, and agrees not to assert in any such suit, action or proceeding, any
      claim that it is not personally subject to the jurisdiction of such court,
      that
      the suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of the suit, action or proceeding is improper. Nothing in this Section
      shall affect or limit any right to serve process in any other manner permitted
      by law.

    

    ARTICLE
      II

    DELIVERIES
      TO THE ESCROW AGENT

    

    2.1. Borrower
      Deliveries.
       The
      Escrowed Payment will be delivered pursuant to the following wire transfer
      instructions:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Citibank,
      N.A.

    1155
      6th
      Avenue

    New
      York,
      NY 10036, USA

    ABA
      Number: 0210-00089

    For
      Credit to: Grushko & Mittman, P.C., Special Lockbox for VoIP,
      Inc.

    Account
      Number: ***

     

    2.2. Intention
      to Create Escrow Over Escrowed Payment.
      The
      Lender and Borrower intend that the Escrowed Payment shall be held in escrow
      by
      the Escrow Agent pursuant to this Agreement for their benefit as set forth
      herein.

     

    2.3. Escrow
      Agent to Deliver Escrowed Payment.
      The
      Escrow Agent shall hold and release the Escrowed Payment only in accordance
      with
      the terms and conditions of this Agreement.

     

    ARTICLE
      III

     

    RELEASE
      OF ESCROWED PAYMENT

     

    3.1. Release
      of Escrow.
      Subject
      to the provisions of Section 4.2, the Escrow Agent shall release the Escrowed
      Payment as follows:

    

    
      	 	
              (a)

            	
              Upon
                receipt of the Receiveable they shall be
                released:

            

    

    

    (i) For
      ninety (90) days from the date of this Agreement the funds in the Lockbox
      Account shall be released for the expenses of the Borrower, other than the
      Lockbox Notes, solely as directed by the Lenders in their absolute
      discretion.

    

    (ii) Commencing
      ninety one (91) days from the date of this Agreement the funds in the Lockbox
      Account shall be released for any expenses of the Borrower, including repayment
      of the Lockbox Notes, solely as directed by the Lenders in their absolute
      discretion.

     

    (b) Notwithstanding
      the above, upon receipt by the Escrow Agent of joint written instructions
      ("Joint Instructions") signed by the Borrower and the Lender, it shall deliver
      the Escrowed Payment in accordance with the terms of the Joint
      Instructions.

     

    (c) Notwithstanding
      the above, upon receipt by the Escrow Agent of a final and non-appealable
      judgment, order, decree or award of a court of competent jurisdiction (a "Court
      Order"), the Escrow Agent shall deliver the Escrowed Payment in accordance
      with
      the Court Order. Any Court Order shall be accompanied by an opinion of counsel
      for the party presenting the Court Order to the Escrow Agent (which opinion
      shall be satisfactory to the Escrow Agent) to the effect that the court issuing
      the Court Order has competent jurisdiction and that the Court Order is final
      and
      non-appealable.

     

    3.2. Acknowledgement
      of Borrower and Lender; Disputes.
      The
      Borrower and the Lender acknowledge that the only terms and conditions upon
      which the Escrowed Payment are to be released are set forth in Sections 3 and
      4
      of this Agreement. The Borrower and the Lender reaffirm their agreement to
      abide
      by the terms and conditions of this Agreement with respect to the release of
      the
      Escrowed Payment. Any dispute with respect to the release of the Escrowed
      Payment shall be resolved pursuant to Section 4.2 or by agreement between the
      Borrower and Lender.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

    CONCERNING
      THE ESCROW AGENT

     

    4.1. Duties
      and Responsibilities of the Escrow Agent.
      The
      Escrow Agent's duties and responsibilities shall be subject to the following
      terms and conditions:

     

    (a) The
      Lender and Borrower acknowledge and agree that the Escrow Agent (i) shall not
      be
      responsible for or bound by, and shall not be required to inquire into whether
      either the Lender or Borrower is entitled to receipt of the Escrowed Payment
      pursuant to, any other agreement or otherwise; (ii) shall be obligated only
      for
      the performance of such duties as are specifically assumed by the Escrow Agent
      pursuant to this Agreement; (iii) may rely on and shall be protected in acting
      or refraining from acting upon any written notice, instruction, instrument,
      statement, request or document furnished to it hereunder and believed by the
      Escrow Agent in good faith to be genuine and to have been signed or presented
      by
      the proper person or party, without being required to determine the authenticity
      or correctness of any fact stated therein or the propriety or validity or the
      service thereof; (iv) may assume that any person believed by the Escrow Agent
      in
      good faith to be authorized to give notice or make any statement or execute
      any
      document in connection with the provisions hereof is so authorized; (v) shall
      not be under any duty to give the property held by Escrow Agent hereunder any
      greater degree of care than Escrow Agent gives its own similar property; and
      (vi) may consult counsel satisfactory to Escrow Agent, the opinion of such
      counsel to be full and complete authorization and protection in respect of
      any
      action taken, suffered or omitted by Escrow Agent hereunder in good faith and
      in
      accordance with the opinion of such counsel.

     

    (b) The
      Lender and Borrower acknowledge that the Escrow Agent is acting solely as a
      stakeholder at their request and that the Escrow Agent shall not be liable
      for
      any action taken by Escrow Agent in good faith and believed by Escrow Agent
      to
      be authorized or within the rights or powers conferred upon Escrow Agent by
      this
      Agreement. The Lender and Borrower, jointly and severally, agree to indemnify
      and hold harmless the Escrow Agent and any of Escrow Agent's partners,
      employees, agents and representatives for any action taken or omitted to be
      taken by Escrow Agent or any of them hereunder, including the fees of outside
      counsel and other costs and expenses of defending itself against any claim
      or
      liability under this Agreement, except in the case of gross negligence or
      willful misconduct on Escrow Agent's part committed in its capacity as Escrow
      Agent under this Agreement. The Escrow Agent shall owe a duty only to the Lender
      and Borrower under this Agreement and to no other person.

     

    (c) The
      Lender and Borrower jointly and severally agree to reimburse the Escrow Agent
      for outside counsel fees, to the extent authorized hereunder and incurred in
      connection with the performance of its duties and responsibilities
      hereunder.

     

    (d) The
      Escrow Agent may at any time resign as Escrow Agent hereunder by giving five
      (5)
      days prior written notice of resignation to the Lender and the Borrower during
      which five day period, Escrow Agent is not obligated nor required to take any
      action, whatsoever and may refrain from taking any action. Prior to the
      effective date of the resignation as specified in such notice, the Lender and
      Borrower will issue to the Escrow Agent a Joint Instruction authorizing delivery
      of the Escrowed Payment to a substitute Escrow Agent selected by the Lender
      and
      Borrower. If no successor Escrow Agent is named by the Lender and Borrower,
      the
      Escrow Agent may apply to a court of competent jurisdiction in the State of
      New
      York for appointment of a successor Escrow Agent, and to deposit the Escrowed
      Payment with the clerk of any such court.

     

    (e) The
      Escrow Agent does not have and will not have any interest in the Escrowed
      Payment, but is serving only as escrow agent, having only possession thereof.
      The Escrow Agent shall not be liable for any loss resulting from the making
      or
      retention of any investment in accordance with this Escrow
      Agreement.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (f) The
      Lender and Borrower jointly and severally agree to indemnify the Escrow Agent
      for outside counsel fees, to the extent authorized hereunder and incurred in
      connection with the performance of its duties and responsibilities
      hereunder.

     

    (g) This
      Agreement sets forth exclusively the duties of the Escrow Agent with respect
      to
      any and all matters pertinent thereto and no implied duties or obligations
      shall
      be read into this Agreement.

     

    (h) The
      Escrow Agent shall be permitted to act as counsel for the Lender in any dispute
      as to the disposition of the Escrowed Payment, in any other dispute between
      the
      Lender and Borrower, whether or not the Escrow Agent is then holding the
      Escrowed Payment and continues to act as the Escrow Agent
      hereunder.

     

    (i) The
      provisions of this Section 4.1 shall survive the resignation of the Escrow
      Agent
      or the termination of this Agreement.

     

    4.2. Dispute
      Resolution: Judgments.
      Resolution of disputes arising under this Agreement shall be subject to the
      following terms and conditions:

     

    (a) If
      any
      dispute shall arise with respect to the delivery, ownership, right of possession
      or disposition of the Escrowed Payment, or if the Escrow Agent shall in good
      faith be uncertain as to its duties or rights hereunder, the Escrow Agent shall
      be authorized, without liability to anyone, to (i) refrain from taking any
      action other than to continue to hold the Escrowed Payment pending receipt
      of a
      Joint Instruction from the Lender and Borrower, or (ii) deposit the Escrowed
      Payment with any court of competent jurisdiction in the State of New York,
      in
      which event the Escrow Agent shall give written notice thereof to the Lender
      and
      the Borrower and shall thereupon be relieved and discharged from all further
      obligations pursuant to this Agreement. The Escrow Agent may, but shall be
      under
      no duty to, institute or defend any legal proceedings which relate to the
      Escrowed Payment. The Escrow Agent shall have the right to retain counsel if
      it
      becomes involved in any disagreement, dispute or litigation on account of this
      Agreement or otherwise determines that it is necessary to consult
      counsel.

     

    (b) The
      Escrow Agent is hereby expressly authorized to comply with and obey any Court
      Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow
      Agent shall not be liable to the Lender and Borrower or to any other person,
      firm, corporation or entity by reason of such compliance.

     

    4.3 Payment. The
      Escrow Agent will be paid $2,500 a month for performing its services under
      this
      Agreement (“Escrow Agent Fee”). The Borrower shall be reposnsible for payment
      Escrow Agent Fee. If the Borrower fails to pay the Escrow Agent Fee, the Lenders
      agree to pay any pastdue Escrow Agent Fees.

    

    ARTICLE
      V

    GENERAL
      MATTERS

     

    5.1. Term
      and Termination.
      

     

    (a) This
      Agreement, which shall inure to the benefit of and shall be binding upon the
      respective successors and permitted assigns of Borrower and Lender, shall become
      effective on the date hereof and shall continue in full force and effect until
      the earliest to occur of (a) 60-months from the date hereof, (b) a date not
      less
      than thirty (30) days after Lender gives notice of such date to Borrower of
      termination, (c) the date on which this Agreement shall be terminated in
      accordance with the provisions hereof; (d) the Lockbox Debt (as that term is
      defined in the Intercreditor Agreement entered into between the Lenders and
      the
      Borrower on or about the date of this Agreement) have been satisified (the
      “Termination Date”; such period referred to herein as the “Term”).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) The
      termination of this Agreement shall not affect Lender’s rights, or any of the
      Obligations (as that term is defined in the Intercreditor Agreement entered
      into
      between the Lenders and the Borrower on or about the date of this Agreement)
      having their inception prior to the effective date of such termination, and
      the
      provisions hereof shall continue to be fully operative until all transactions
      entered into, rights or interests created or Obligations have been fully
      disposed of, concluded or liquidated. The rights granted to Lender hereunder
      shall continue in full force and effect, notwithstanding the termination of
      this
      Agreement or the fact that Borrower’s Account may from time to time be
      temporarily in a zero or credit position, until all of the Obligations of
      Borrower have been paid or performed in full. Accordingly, Borrower waives
      any
      rights which it may have under Section 9-513 of the UCC to demand the filing
      of
      termination statements with respect to the Accounts, and Lender shall not be
      required to send such termination statements to Borrower, or to file them with
      any filing office, unless and until this Agreement shall have been terminated
      in
      accordance with its terms and all Obligations paid in full in immediately
      available funds. All representations, warranties, waivers and agreements
      contained herein shall survive termination hereof until all Obligations are
      paid
      or performed in full.

     

    5.2. Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: 

     

    (a) If
      to the
      Borrower, to:

    

    VoIP,
      Inc.

    151
      So.
      Wymore Road, Suite 3000

    Altamonte
      Springs, FL 32714

    Attn:
      Anthony Cataldo, CEO

    Fax:
      (407) 389-3233

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    With
      a
      copy by telecopier only to:

    

    Sichenzia
      Ross Friedman Ference LLP

    61
      Broadway, 32nd
      Floor

    New
      York,
      NY 10006

    Attn:
      Marc Ross, Esq. .

    Fax:
      (212)
      930-9725

     

    (b) If
      to the
      Lender, to: the addresses and fax numbers listed on Schedule A
      hereto.

     

    (c) If
      to the
      Escrow Agent, to:

     

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      212-697-3575

     

    or
      to
      such other address as any of them shall give to the others by notice made
      pursuant to this Section 5.2.

     

    5.3. Interest.
      The
      Escrowed Payment shall not be held in an interest bearing account nor will
      interest be payable in connection therewith. In the event the Escrowed Payment
      is deposited in an interest bearing account, the Lender shall be entitled to
      receive any accrued interest thereon, but only if the Escrow Agent receives
      from
      the Lender the Lender’s United States taxpayer identification number and other
      requested information and forms.

     

    5.4. Assignment;
      Binding Agreement.
      Neither
      this Agreement nor any right or obligation hereunder shall be assignable by
      any
      party without the prior written consent of the other parties hereto. This
      Agreement shall enure to the benefit of and be binding upon the parties hereto
      and their respective legal representatives, successors and assigns.

     

    5.5. Invalidity.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal, or
      unenforceable in any respect for any reason, the validity, legality and
      enforceability of any such provision in every other respect and of the remaining
      provisions contained herein shall not be in any way impaired thereby, it being
      intended that all of the rights and privileges of the parties hereto shall
      be
      enforceable to the fullest extent permitted by law.

     

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

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5.7. Agreement.
      Each of
      the undersigned states that he has read the foregoing Funds Escrow Agreement
      and
      understands and agrees to it.

    

    
      	 	
              VOIP,
                INC.

            
	 	
              the
                “Borrower”

            
	 	 
	 	
              By:___________________________________

            

    

    

    “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

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              GRUSHKO
                & MITTMAN, P.C. .

            	
              CMS
                CAPITAL

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              DOUBLE
                U MASTER FUND L.P.

            	
              ELLIS
                INTERNATIONAL LTD.

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              OSHER
                CAPITAL INC.

            	
              PLATINUM
                LONG TERM GROWTH I INC.

            
	 	 
	
              _______________________________________

            	 
	
              WHALEHAVEN
                CAPITAL FUND LTD.

            	 
	 	 
	
              ESCROW
                AGENT:

            	 
	 	 
	
              _______________________________________

            	 
	
              GRUSHKO
                & MITTMAN, P.C.

            	 

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      A TO FUNDS ESCROW AGREEMENT

     

    
      	
              Alpha
                Capital Anstalt

            	
              Iroquois
                Capital

            
	
              Pradafant
                7

            	
              641
                Lexington Avenue, 26th Floor

            
	
              9490
                Furstentums

            	
              New
                York, NY 10022

            
	
              Vaduz,
                Lichtenstein

            	
              ***

            
	
              Fax:
                ***

            	 
	 	
              Osher
                Capital

            
	
              Brio
                Capital, L.P.

            	
              5
                Sansberry Lane

            
	
              523
                Albermale Road

            	
              Spring
                Valley, NY 10977

            
	
              Cedarhurst,
                NY 11516

            	
              ***

            
	
              Fax:
                ***

            	 
	 	
              Platinum
                Long term Growth II, Inc.

            
	
              Bristol
                Investment Fund, Ltd.

            	
              152
                West 57th Street

            
	
              c/o
                Bristol Capital Advisers, LLC

            	
              New
                York, NY 10019

            
	
              10990
                Wilshire Boulevard, Suite 1410

            	
              ***

            
	
              Los
                Angeles, California 90024

            	 
	
              Fax:
                (310) 696-0334

            	
              Whalehaven
                Capital Fund Limited

            
	
              Attn:
                ***

            	
              c/o
                FWS Capital Ltd.

            
	 	
              3rd
                Floor, 14 Par-Laville Road

            
	
              Centurion
                Microcap, L.P.

            	
              Hamilton,
                Bermuda HM08

            
	
              3014
                Avenue L

            	
              ***

            
	
              Brooklyn,
                NY 11210

            	 
	
              Fax:
                ***

            	 
	 	 
	
              Chestnut
                Ridge Partners, L.P.

            	 
	
              50
                Tice Boulevard

            	 
	
              Woodcliff
                Lake, NJ 07677

            	 
	
              Fax:
                ***

            	 
	 	 
	
              CMS
                Capital

            	 
	
              9612
                Van Nuys Boulevard, Suite 108

            	 
	
              Panorama
                City, CA 91402

            	 
	
              ***

            	 
	 	 
	
              Double
                U Master Fund, L.P.

            	 
	
              c/o
                Navigator Management, Ltd.

            	 
	
              Harbor
                House, Waterfront Drive, P.O Box 972

            	 
	
              Road
                Town BVI

            	 
	
              ***

            	 
	 	 
	
              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

            	 
	
              ***

            	 

    

     

    
      
        
        

      

      
        9Exhibit
      10.6

    

    INTERCREDITOR,
      SUBORDINATION, WAIVER AND AMENDMENT AGREEMENT

    

    THIS
      INTERCREDITOR, SUBORDINATION, DEFAULT AND AMENDMENT AGREEMENT, dated as of
      December 18, 2007 (this “Agreement”),
      is by
      and among VoIP Inc. (“Borrower”),
      the
      parties identified on Schedule
      A
      hereto
      (“Secured
      Lenders”)
      the
      parties identified on Schedule
      B
      hereto
      (“SSSD
      Lenders”),
      the
      parties identified on Schedule
      C
      hereto
      (“LB
      Lenders”)
      and
      Barbara R. Mittman, in her capacity as collateral agent for the benefit of
      the
      Secured Lenders, SSSD Lenders and LB 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 its subsidiaries
      (all such subsidiaries, collectively with the Borrower, the (“Obligors”);
      and

     

    WHEREAS,
      the Borrower, the Secured Lenders and the SSSD Lenders are parties to various
      financing, debt structuring and intercreditor agreements which set forth various
      agreements, covenants and obligations amongst the signatories
      thereto.

     

    WHEREAS,
      the Borrower, is in need of additional financing the terms of which may
      contradict the terms of previous agreements or require the consent and waiver
      of
      the parties to the previous agreements.

     

    NOW
      THEREFORE, in consideration of the mutual benefits accruing to Secured Lenders,
      SSSD Lenders, LB Lenders, Borrower and Obligors, for 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:

     

    “Cedar
      Debt” means
      indebtedness owed by the Borrower to some of the Secured lenders as identified
      on Schedule 2.1 to the September Intercreditor Agreement.

     

    “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, SSSD Lenders and LB Lenders in the Collateral.

     

    “Debt”
and/or
      “Obligations”
means
      all debt and obligations of the Obligors to the Secured Lenders, SSSD Lenders
      and LB Lenders.

     

    “December
      Financing”
means
      all agreements, instruments and other documents that Borrower and LB Lenders
      entered into on or about the date of this Agreement in connection with the
      transactions in which a total of up to $3,010,347.60 in Principal Amount
      Convertible Notes (the “December
      Notes”)
      will
      be issued by Borrower to the LB Lenders, commencing on or about the date of
      this
      Agreement.

     

    
      
         

        

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “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.

     

    “Lockbox”
means
      the trust account opened pursuant to the Lockbox Agreement.

     

    “Lockbox
      Agreement”
means
      the Loan Agreement entered into among the Borrower, Escrow Agent and the LB
      Lenders dated and entered into as of the same debate as this
      Agreement.

     

    “Lockbox
      Funds”
means
      t
      all funds deposited in the Lockbox.

     

    “Lockbox
      Debt”
or
      “Lockbox
      Notes”
means
      the obligations of the Obligors to the holders of the notes issued in the
      December Financing and the additional notes described in Schedule
      2.1.

     

     “Secured
      Debt”
means
      all indebtedness of the Obligors to the Secured Lenders other than the Lockbox
      Debt, Super Senior Secured Debt and the Cedar Debt.

     

    “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,
      July
      27, 2007, September 12, 2007 and the December Financing, 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.

     

    “September
      Intercreditor Agreement”
shall
      mean the Intercreditor, Subordination, Default Waiver and Assignment Agreement
      among the Borrower and the other signatories thereto dated September 12,
      2007.

     

    “Super
      Senior Secured Debt”
shall
      have the meaning ascribed to it in the September Intercreditor
      Agreement.

     

    
      
         

        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2. CLASSIFICATIONS
      OF VOIP’S OBLIGATIONS.

    

    2.1 Lockbox
      Debt.
      Schedule
      2.1
      sets
      forth the additional notes that are to be included with the December Notes
      being
      classified as Lockbox Debt.

    

    2.2 Super
      Senior Secured Debt.
      In
      addition to the notes defined as Super Senior Secured Debt pursuant to the
      September Intercreditor Agreement, the notes listed on Schedule
      2.2
      shall be
      deemed part of the Super Senior Secured Debt.

    

    2.3 Any
      note
      may be classified as both Lockbox Debt and Super Senior Secured
      Debt.

    

    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 first
      $1,200,000 in the Lockbox securing the Super Senior Secured Debt have and shall
      have priority over the Liens upon the Collateral securing the Lockbox debt,
      Cedar Debt and the 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 Lockbox
      Funds securing the Lockbox Debt, except as set forth in Section 3.1(a)of this
      Agreement, have and shall have priority over the Liens upon the Lockbox Funds
      securing the Super Senior Secured Debt, the Cedar Debt and the Secured Debt.
      In
      the event that upon the complete liquidation of Lockbox Funds there remains
      Lockbox Debt not satisfied, all such remaining Lockbox Debt shall be
      reclassified as Secured Debt.

     

    c) 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, and except as set forth
      in
      Section 3.1(a) and 3.1(b) of this Agreement, 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 Secured
      Debt.

     

    d) 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 Secured Debt.

     

    3.2 All
      distribution proceeds of the Collateral shall be made in accordance with the
      priorities set forth in Section 3.1 above.: 

     

    
      
        
 

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.3 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.

     

    3.4 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 creditor sand 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 as set forth in Section 3.1. 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.

     

    3.6 Supersedence.
      The
      terms, provisions and priorities set forth in this Agreement shall supersede
      any
      term or provision of the September Intercreditor Agreement.

     

    4. [LEFT
      INTENTIONALLY BLANK].

    

    5. WAIVERS
      and AMENDMENTS.

    

    5.1 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 solely to the Borrower entering into this Agreement
      and
      the December Financing.

    

    5.2  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 December Financing,
      the Secured Lenders hereby agree to waive such right of first
      refusal.

    
      
        
 

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.3 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 December
      Financing.

    

    5.4 December
      Financing Security.
      The
      Secured Lenders acknowledge and agree that the obligations of the Borrower
      pursuant to the December Financing shall be secured in accordance with the
      priorities set forth in Section 3.1 of this Agreement.

    

    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.

     

    
      
        
 

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (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).

    

    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

            
	 	
              Fax:
                (407) 389-3233

            
	 	 
	
              With
                a copy by telecopier only to:

            	 
	 	
              Sichenzia
                Ross Friedman Ference LLP

            
	 	
              61
                Broadway, 32nd Floor

            
	 	
              New
                York, NY 10006

            
	 	
              Attn:
                Marc Ross, Esq.

            
	 	
              Fax:
                (212) 930-9725

            
	 	 

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              To
                Collateral Agent:

            	
              Barbara
                R. Mittman, Esq.

            
	 	
              551
                Fifth Avenue, Suite 1601

            
	 	
              New
                York, New York 10176

            
	 	
              Fax:
                (212) 697-3575

            
	 	 
	
              To
                Secured Lenders:

            	
              To
                the addresses and facsimile numbers listed on Schedule A
                hereto.

            
	 	 
	
              To
                SSSD Lenders:

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

            
	 	 
	
              To
                LB Lenders:

            	
              To
                the addresses and facsimile numbers listed on Schedule C
                hereto.

            

    

     

    
      
        	
                If
                  to Secured Lenders, SSSD

              	 
	
                Lenders,
                  LB Lenders, or

              	 
	
                Collateral
                  Agent, with a Copy to:

              	 
	 	
                Grushko
                  & Mittman, P.C.

              
	 	
                551
                  Fifth Avenue, Suite 1601

              
	 	
                New
                  York, New York 10176

              
	 	
                Attention:
                  Eliezer Drew, Esq.

              
	 	
                Fax:
                  (212) 697-3575

              

      

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.
      

    
      
         

        

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    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.

     

    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.

            

    

     

    
      
        
 

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    SSSD
      LENDERS

    

    
      	
              ALPHA
                CAPITAL ANSTALT 

            	
              BRISTOL
                INVESTMENT FUND, LTD.

            
	 	 
	
              By:________________________________

            	
              By:____________________________________

            
	
              Name:

            	
              Name:

            
	
              Title:

            	
              Title:

            
	 	 
	
              CENTURION
                MICROCAP L.P.

            	
              ELLIS
                INTERNATIONAL, LTD.

            
	 	 
	
              By:________________________________

            	
              By:____________________________________

            
	
              Name:

            	
              Name:

            
	
              Title:

            	
              Title:

            
	 	 
	
              WHALEHAVEN
                CAPITAL FUND, LTD

            	 
	 	 
	
              By:________________________________

            	 
	
              Name:

            	 
	
              Title:

            	 

    

    

    LB
      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

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              GRUSHKO
                & MITTMAN, P.C.

            	
              CMS
                CAPITAL

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              DOUBLE
                U MASTER FUND L.P.

            	
              ELLIS
                INTERNATIONAL LTD.

            
	 	 
	
              ________________________________________

            	
              _______________________________________

            
	
              OSHER
                CAPITAL INC.

            	
              PLATINUM
                LONG TERM GROWTH II INC.

            
	 	 
	
              _______________________________________

            	 
	
              WHALEHAVEN
                CAPITAL FUND LTD.

            	 

    

     

    
      
        
 

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    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]

    
      
         

        

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    BORROWER
      

    

    VOIP
      INC.

    ______________________________

    Name:
      Anthony Cataldo

    Title:
      CEO

    

    OBLIGORS

    

    
      	
              VOIP
                INC.

            	 
	 	 
	
              ______________________________

            	 
	
              Name:
                Anthony Cataldo

            	 
	
              Title:
                CEO

            	 
	 	 
	
              VOIPSOLUTIONS

            	
              EGLOBALPHONE

            
	
              a
                Florida corporation

            	
              a
                Florida corporation

            
	 	 
	
              ______________________________
                

            	
              ______________________________

            
	
              Name:
                Anthony Cataldo

            	
              Name:
                Anthony Cataldo

            
	
              Title:
                CEO

            	
              Title:
                CEO

            
	 	 
	
              CAERUS,
                INC

            	
              VOX
                CONSULTING GROUP, INC.

            
	
              a
                Delaware corporation

            	
              a
                Florida corporation

            
	 	 
	
              ______________________________
                

            	
              ______________________________

            
	
              Name:
                Anthony Cataldo

            	
              Name:
                Anthony Cataldo

            
	
              Title:
                CEO

            	
              Title:
                CEO

            
	 	 
	
              VCG
                TECHNOLOGIES

            	
              VOLO
                COMMUNICATIONS, INC.

            
	
              a
                Florida corporation

            	
              a
                Delaware corporation

            
	 	 
	
              ______________________________
                

            	
              ______________________________

            
	
              Name:
                Anthony Cataldo

            	
              Name:
                Anthony Cataldo

            
	
              Title:
                CEO

            	
              Title:
                CEO

            
	 	 
	
              CAERUS
                BILLING, INC.

            	
              CAERUS
                NETWORKS, INC.

            
	
              a
                Delaware corporation

            	
              a
                Delaware corporation

            
	 	 
	
              ______________________________
                

            	
              ______________________________

            
	
              Name:
                Anthony Cataldo

            	
              Name:
                Anthony Cataldo

            
	
              Title:
                CEO

            	
              Title:
                CEO

            
	 	 
	
              VOICEONE
                COMMUNICATIONS, LLC

            	
              VOIP
                ACQUISITION COMPANY

            
	
              a
                Delaware Limited Liability corporation

            	
              a
                Delaware corporation

            
	 	 
	
              ______________________________
                

            	
              ______________________________

            
	
              Name:
                Anthony Cataldo

            	
              Name:
                Anthony Cataldo

            
	
              Title:
                CEO

            	
              Title:
                CEO

            

    

     

    
      
        
 

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    JOINT
      INSTRUCTIONS TO COLLATERAL AGENT

    

    Each
      of
      the undersigned understands, approves and authorizes the execution of the
      Intercreditor, Subordination, Waiver and Amendment 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. 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.

            

    

     

    
      
        
 

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF SCHEDULES
      AND EXHIBITS

    

    
      	
              Schedule
                A

            	
              List
                of Secured Lenders with contact information

            
	
              Schedule
                B

            	
              List
                of SSSD Lenders with contact information

            
	
              Schedule
                C

            	
              List
                of LB Lenders with contact information

            
	
              Schedule
                2.1

            	
              Table
                of additional Lockbox Notes

            
	
              Schedule
                2.2

            	
              Table
                of additional Super Senior Secured
                Notes

            

    

    

    SCHEDULE
      A

    

    
      	
              Alpha
                Capital Anstalt

            	
              Ellis
                International Ltd.

            
	
              Pradafant
                7

            	
              53rd
                Street Urbanizacion Obarrio

            
	
              9490
                Furstentums

            	
              Swiss
                Tower, 16th Floor, Panama

            
	
              Vaduz,
                Lichtenstein

            	
              Republic
                of Panama

            
	
              Fax:
                ***

            	
              ***

            
	 	 
	
              Brio
                Capital, L.P.

            	
              Grushko
                & Mittman, P.C.

            
	
              523
                Albermale Road

            	
              551
                Fifth Avenue, Suite 1601

            
	
              Cedarhurst,
                NY 11516

            	
              New
                York, New York 10176

            
	
              Fax:
                ***

            	
              Fax:
                ***

            
	 	 
	
              Bristol
                Investment Fund, Ltd.

            	
              Iroquois
                Capital

            
	
              c/o
                Bristol Capital Advisers, LLC

            	
              641
                Lexington Avenue, 26th Floor

            
	
              10990
                Wilshire Boulevard, Suite 1410

            	
              New
                York, NY 10022

            
	
              Los
                Angeles, California 90024

            	
              ***

            
	
              Fax:
                ***

            	 
	 	
              Osher
                Capital

            
	
              Centurion
                Microcap, L.P.

            	
              5
                Sansberry Lane

            
	
              3014
                Avenue L

            	
              Spring
                Valley, NY 10977

            
	
              Brooklyn,
                NY 11210

            	
              ***

            
	
              Fax:
                ***

            	 
	 	
              Platinum
                Long term Growth II, Inc.

            
	
              Chestnut
                Ridge Partners, L.P.

            	
              152
                West 57th Street

            
	
              50
                Tice Boulevard

            	
              New
                York, NY 10019

            
	
              Woodcliff
                Lake, NJ 07677

            	
              ***

            
	
              Fax:
                ***

            	 
	 	
              Stonestreet
                Limited Partnership

            
	
              CMS
                Capital

            	
              33
                Prince Arthur Avenue

            
	
              9612
                Van Nuys Boulevard, Suite 108

            	
              Toronto
                Ont. M5K 1B2

            
	
              Panorama
                City, CA 91402

            	
              Canada

            
	
              ***

            	
              ***

            
	 	 
	
              DKR
                Soundshore Oasis Holding Fund, Ltd.

            	
              Whalehaven
                Capital Fund Limited

            
	
              c/o
                DKR Capital Partners, L.P.

            	
              c/o
                FWS Capital Ltd.

            
	
              1281
                East Main Street

            	
              3rd
                Floor, 14 Par-Laville Road

            
	
              Stamford
                CT 06902

            	
              Hamilton,
                Bermuda HM08

            
	
              ***

            	
              Fax:
                ***

            
	 	 
	
              Double
                U Master Fund, L.P.

            	 
	
              c/o
                Navigator Management, Ltd.

            	 
	
              Harbor
                House, Waterfront Drive, P.O Box 972

            	 
	
              Road
                Town BVI

            	 
	
              ***

            	 
	 	 

    

     

    
      
        
 

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    Schedule
      B

    

    
      	
              Alpha
                Capital Anstalt

            	
              Ellis
                International Ltd.

            
	
              Pradafant
                7

            	
              53rd
                Street Urbanizacion Obarrio

            
	
              9490
                Furstentums

            	
              Swiss
                Tower, 16th Floor, Panama

            
	
              Vaduz,
                Lichtenstein

            	
              Republic
                of Panama

            
	
              Fax:
                ***

            	
              ***

            
	 	 
	
              Bristol
                Investment Fund, Ltd.

            	
              Whalehaven
                Capital Fund Limited

            
	
              c/o
                Bristol Capital Advisers, LLC

            	
              c/o
                FWS Capital Ltd.

            
	
              10990
                Wilshire Boulevard, Suite 1410

            	
              3rd
                Floor, 14 Par-Laville Road

            
	
              Los
                Angeles, California 90024

            	
              Hamilton,
                Bermuda HM08

            
	
              Fax:
                ***

            	
              Fax:
                ***

            
	 	 
	
              Centurion
                Microcap, L.P.

            	 
	
              3014
                Avenue L

            	 
	
              Brooklyn,
                NY 11210

            	 
	
              Fax:
                ***

            	 

    

     

    
      
        
 

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    Schedule
      C

    

    
      	
              Alpha
                Capital Anstalt

            	
              Double
                U Master Fund, L.P.

            
	
              Pradafant
                7

            	
              c/o
                Navigator Management, Ltd.

            
	
              9490
                Furstentums

            	
              Harbor
                House, Waterfront Drive, P.O Box 972

            
	
              Vaduz,
                Lichtenstein

            	
              Road
                Town BVI

            
	
              Fax:
                ***

            	
              ***

            
	 	 
	
              Brio
                Capital, L.P.

            	
              Ellis
                International Ltd.

            
	
              523
                Albermale Road

            	
              53rd
                Street Urbanizacion Obarrio

            
	
              Cedarhurst,
                NY 11516

            	
              Swiss
                Tower, 16th Floor, Panama

            
	
              Fax:
                ***

            	
              Republic
                of Panama

            
	 	
              ***

            
	
              Bristol
                Investment Fund, Ltd.

            	 
	
              c/o
                Bristol Capital Advisers, LLC

            	
              Grushko
                & Mittman, P.C.

            
	
              10990
                Wilshire Boulevard, Suite 1410

            	
              551
                Fifth Avenue, Suite 1601

            
	
              Los
                Angeles, California 90024

            	
              New
                York, New York 10176

            
	
              Fax:
                ***

            	
              Fax:
                ***

            
	 	 
	
              Centurion
                Microcap, L.P.

            	
              Osher
                Capital

            
	
              3014
                Avenue L

            	
              5
                Sansberry Lane

            
	
              Brooklyn,
                NY 11210

            	
              Spring
                Valley, NY 10977

            
	
              Fax:
                ***

            	
              ***

            
	 	 
	
              Chestnut
                Ridge Partners, L.P.

            	
              Platinum
                Long term Growth II, Inc.

            
	
              50
                Tice Boulevard

            	
              152
                West 57th Street

            
	
              Woodcliff
                Lake, NJ 07677

            	
              New
                York, NY 10019

            
	
              Fax:
                ***

            	
              ***

            
	 	 
	
              CMS
                Capital

            	
              Whalehaven
                Capital Fund Limited

            
	
              9612
                Van Nuys Boulevard, Suite 108

            	
              c/o
                FWS Capital Ltd.

            
	
              Panorama
                City, CA 91402

            	
              3rd
                Floor, 14 Par-Laville Road

            
	
              ***

            	
              Hamilton,
                Bermuda HM08

            
	 	
              Fax:
                ***

            

    

     

    
      
         

        

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Schedule
      2.1

     

    
      
        	
                Additional
                  Notes issued by VoIP obtaining complete or partial 

                Lockbox
                  Debt Status

              
	
                Holder

              	 	
                Date

              	 	
                Principal
                  Amount of Note obtaining 

                Super
                  Senior Secured Status

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

      

    

     

    
      
        
 

        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    Schedule
      2.2

     

    
      
        	
                Additional
                  Notes issued by VoIP obtaining complete or partial 

                Super
                  Senior Secured Status

              
	
                Holder

              	 	
                Date

              	 	
                Principal
                  Amount of Note obtaining 

                Super
                  Senior Secured Status

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

      

    

     

    
      
        
 

        
        

      

      
        17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]