Document:

Exhibit
      10.1

    

    AGREEMENT
      OF PURCHASE AND SALE

    

    This
      Agreement of Purchase and Sale (the “Agreement”) is made in two original
      copies.

    

    BETWEEN:

    

    Elephant
      Talk Europe Holding B.V. (“ET Europe”), Schiphol Boulevard 249, 1118 BH
      Luchthaven Schiphol, the Netherlands, the purchaser, legally represented by
      Mr.
      Mark Nije

    

    And

    

    Beltrust
      AG (“BELTRUST”), registered under CH-270.3.013.076-3 in Basel, Switzerland, the
      seller, legally represented by Mrs. Domenika Huesser

     

    And

    

    Elephant
      Talk Communications, Inc., a California corporation (“ETCI”), legally
      represented by Mr. Steven van der Velden 

    

    WHEREAS,
      Elephant Talk Communication Holding AG is a wholly-owned subsidiary of
      BELTRUST;

    

    WHEREAS,
      ETCI
      intends to execute the acquisition of Elephant Talk Communication Holding AG
      by
      its wholly-owned subsidiary ET Europe Holding B.V.

    

    WHEREAS,
      a
      Memorandum of Understanding for this purchase and sale was executed by ETCI
      and
      BELTRUST on January 17, 2005 (Exhibit 1); and an Addendum to this Memorandum
      on
      March 3, 2005 (Exhibit 1A);

    

    WHEREAS,
      to
      reflect the expanded operation of Elephant Talk Communication Holding AG, ETCI
      has been willing to increase the purchase price 

    

    WHEREAS,
      the due
      diligence foreseen in the above mentioned memorandum did not bring forward
      any
      other circumstances that have changed the intention of ETCI and
      BELTRUST;

    

    WHEREAS,
      all the
      other conditions of the memorandum and addendum to the memorandum also have
      been
      fulfilled;

    

    Agree
      to the following:

    

    1.   Purchase
      and Sale of Stock.
      ET
      Europe agrees to purchase from BELTRUST and BELTRUST agrees to sell to ET
      Europe, all of the 100,000 issued and outstanding shares of Elephant Talk
      Communication Holding AG, formerly known as Benoit Telecom Holding AG
      (“BENOIT”), registered under CH- 270.3.013.519-0 in Basel, Switzerland, in
      exchange for (A) a cash payment of US$ 6,643,080, payable by ET Europe as set
      forth below (the “Cash Payment”), and (B) forty million (40,000,000) newly
      issued and registered common shares of ETCI, listed on the National Association
      of Securities Dealers’ Over The Counter Bulletin Board (OTCBB) under the ticker
      symbol “ELTK,” to be issued by ETCI as set forth below (the “Stock
      Payment”).

    

    (a)  
      The
      Cash
      Payment.
      The
      parties acknowledge that $6,043,080 (equivalent to approximately €4,625,000) has
      previously been paid by ET Europe to the escrow agent CC Financial Consult
      (the
“earnest Deposit”). Upon signing of this Agreement , the Earnest Deposit will be
      released to BELTRUST, according to the conditions of the Escrow Agreement of
      Exhibit 3. The remaining $600,000.00 of the Cash Payment shall be paid to
      BELTRUST by ET Europe within [30] days after the execution of this Agreement
      by
      wire transfer to such account or accounts identified by BELTRUST to ET
      Europe.

    

    (b)
       The
      Stock
      Payment.
      ETCI
      shall issue 40,000,000 shares of its common stock (the “ETCI Shares”) to
      BELTRUST within [30] days after the execution of this Agreement.

    

    
      
        
        

      

      
        -
          1 -

        
          

        

      

      
        
        

      

    

     

    2.
       With
      the
      receipt of the Cash Payment from ET Europe, BETRUST waives all its rights on
      debt and interest owed to it by Benoit and the under 3(a) mentioned companies.
      In connection with such waiver, BELTRUST shall execute and deliver to ET Europe
      such other documents and instruments reasonably necessary and requested by
      ET
      Europe to effectuate such waiver.

    

    3.
       (a) BENOIT
      holds all the issued and outstanding shares of the entities listed below, with
      the exception of the entity under g) of which it holds 51% of the issued and
      outstanding shares. Assets, amongst others, owned by these entities are listed
      in the Exhibit 2:

    

    a) 
      Elephant
      Talk Communication Europe GmbH, registered under CH 270.4.014.107-6, Basel,
      Swiss

     

    b) Elephant
      Talk Communication Carrier Services GmbH, registered under CH 270.4.014.108-4,
      Basel, Swiss

     

    c) Elephant
      Talk Communication Schweiz GmbH, registered under CH-270.4.014.109-2, Basel,
      Swiss

     

    d) Elephant
      Talk Communications S.L.U, registered under 374458, Madrid, Spain

     

    e) Elephant
      Talk Communication Austria GmbH, registered under 259601 Y, Voralberg,
      Austria

     

    f) Cardnet
      Clearing Services B.V., registered under 10147108, Huizen, The
      Netherlands

     

    g) Elephant
      Talk Premium Rate Services Netherlands B.V. registered under 32079863,
      Hilversum, The Netherlands

     

    h) 3U
      Telecom S.R.L. registered under number 13296660155, Bolzano, Italy

    

    The
      entities listed above under a) up to and including h) will be hereunder referred
      to as the “Corporations.”

    

    (b)
      Cash
      Advances to Benoit.
      ETCI,
      in anticipation of the expected finalization of the purchase by ET Europe of
      BENOIT, has provided working capital to BENOIT as of May 31, 2005. The
      underlying “Funding Agreement and Promise of Repayment” dated February 15, 2005
      (Exhibit 4), and the “Security Agreement with Material and Immaterial Assets as
      Collateral” dated February 15, 2005 (Exhibit 5), are signed by ETCI and BENOIT.
      According to the agreed conditions, BENOIT will be discharged of repayment
      of
      the provided funding upon the finalization of the purchase of all the shares
      of
      BENOIT by ET Europe.

    

    4.
       ET
      Europe
      and ETCI hereby represent that:

    

    
      	 	
              (a)

            	
              ET
                Europe has due corporate authority to enter into this Agreement and
                to
                perform the transaction contemplated
                herein.

            

    

    

    
      	 	
              (b)
                

            	
              ET
                Europe and ETCI have no liabilities or obligations to pay any fees
                or
                commissions to any broker, finder or agent with respect to the
                transactions contemplated by this Agreement for which BELTRUST, BENOIT
                or
                Corporations could be obligated or
                liable.

            

    

    

    (c) ET
      Europe
      and ETCI have made inquiries of BELTRUST, BENOIT and Corporations from
      independent professionals, legal and/or tax advisors as they considered
      necessary or appropriate for determining whether to purchase the shares of
      BENOIT. ET Europe and ETCI, as experienced telecommunications companies, are
      familiar with the business, affairs, risks and properties of these companies,
      and ET Europe and ETCI have made the necessary inquiries from its officers,
      directors and representatives.

    

    (d) The
      execution, delivery and performance of this Agreement by ET Europe and the
      consummation by ET Europe of the transaction contemplated herein, does not
      and
      will not result in a violation of any law, rule, regulation, order, judgment,
      injunction, decree or other restriction of any court or governmental authority
      to which ET Europe is subject, or by which any property or asset of ET Europe
      is
      bound or affected.

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    5.
       In
      connection with this transaction, BELTRUST, BENOIT and Corporations hereby
      represent that:

    

    
      	a)  	
              BELTRUST,
                BENOIT and Corporations are duly organized, validly existing and
                in good
                standing under the laws of their jurisdiction, and have the necessary
                authority to enter into this
                transaction.

            

    

    

    
      	b)  	
              BELTRUST,
                BENOIT and Corporations have no liabilities or obligations to pay
                any fees
                or commissions to any broker, finder or agent with respect to the
                transactions contemplated by this Agreement for which ET Europe and
                ETCI
                could become liable or obligated.

            

    

    

    
      	c)  	
              BELTRUST,
                BENOIT and Corporations together control the assets as listed in
                Exhibit 2
                and have only debts directly related to the normal course of
                business.

            

    

    

    
      	d)  	
              The
                execution, delivery and performance of this Agreement by BELTRUST
                and the
                consummation by it of the transaction contemplated herein, does not
                and
                will not result in a violation of any law, rule, regulation, order,
                judgment, injunction, decree or other restriction of any court or
                governmental authority to which BELTRUST is
                subject.

            

    

    

    
      	e)  	
              After
                the closing of this transaction, BENOIT and Corporations will have
                no
                debts outstanding whatsoever, towards BELTRUST
                anymore.

            

    

    

    
      	f)  	
              BELTRUST
                owns the issued shares of BENOIT (the “BENOIT Shares”) as indicated
                herein.

            

    

    

    
      	g)  	
              The
                BENOIT Shares are fully paid-up and
                non-assessable.

            

    

    

    
      	h)  	
              No
                agreement or option exists pursuant to which BENOIT is or may be
                obliged
                to issue further shares of its authorized
                capital.

            

    

    

    
      	i)  	
              The
                BENOIT Shares are sold free and clear of all liens, encumbrances
                and
                charges.

            

    

    

    
      	j)  	
              Any
                consent required for the transfer of the BENOIT Shares in accordance
                with
                ET Europe's direction is given.

            

    

    

    
      	k)  	
              U.S.
                Securities Laws representations:

            

    

    

    
      	a.  	
              No
                Registration.
                BELTRUST acknowledges and agrees that the ETCI Shares will be offered
                and
                sold to BELTRUST without such offer and sale being registered under
                the
                Securities Act, or under any state securities or "blue sky" laws
                of any
                state of the U.S., and will be issued to BELTRUST in an offshore
                transaction outside of the United States in accordance with a safe
                harbor
                from the registration requirements of the Securities Act provided
                by
                Regulation S. As such, BELTRUST further acknowledges and agrees that
                the
                ETCI Shares will, upon issuance, be “restricted securities” within the
                meaning of the Securities Act. BELTRUST understands that the ETCI
                Shares
                may not be offered or sold in the U.S. or, directly or indirectly,
                to U.S.
                Persons, as that term is defined in Regulation
                S, except in accordance with
                the provisions of Regulation S, pursuant to an effective
                registration
                statement under the Securities Act, or pursuant to an exemption from,
                or
                in a transaction not subject to, the registration requirements of
                the
                Securities Act and in each case in accordance with applicable state
                and
                federal securities laws. Neither the SEC nor any other securities
                commission or similar regulatory authority has reviewed or passed
                on the
                merits of the ETCI Shares. The statutory and regulatory basis for
                the
                exemption claimed for the offer of the ETCI Shares, although in technical
                compliance with
                Regulation S, would not be available if the offering is part of a
                plan or
                scheme to evade the registration provisions of the Securities
                Act or any applicable state and federal securities
                laws

            

    

     

    
      	b.  	
              Investor
                Not a U.S. Person.
                BELTRUST is not a U.S. Person (as defined in Regulation S under the
                Securities Act). BELTRUST is not acquiring the ETCI Shares for the
                account
                or benefit of, directly or indirectly, any U.S.
                Person.

            

    

     

    
      	c.  	
              Purchase
                Entirely for Own Account.
                BELTRUST understands that ETCI is making this Agreement with BELTRUST
                in
                reliance upon BELTRUST's representation to ETCI, which by BELTRUST's
                execution of this Agreement BELTRUST hereby confirms, that BELTRUST
                is
                outside the United States when receiving and executing this Agreement
                and
                is acquiring the ETCI Shares as principal for BELTRUST's own account,
                not
                as a nominee or agent, and not with a view to the resale or distribution
                of any part thereof (other than a contemplated transfer to a non-US
                person), and that BELTRUST has no present intention of selling, granting
                any participation in, or otherwise distributing the same (other than
                a
                contemplated transfer to a non-US person). By executing this Agreement,
                BELTRUST further represents that BELTRUST does not have any contract,
                undertaking, agreement or arrangement with any person to sell, transfer
                or
                grant participations to such person or to any third person, with
                respect
                to any of the ETCI Shares (other than a contemplated transfer to
                a non-US
                person). 

            

    

     

    
      	d.  	
              No
                Underwriter.
                BELTRUST is not an underwriter of, or dealer in, the common shares
                of
                ETCI, nor is BELTRUST participating, pursuant to a contractual agreement
                or otherwise, in the distribution of the ETCI
                Shares.

            

    

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

     

    
      	e.  	
              Investment
                Experience.
                BELTRUST acknowledges that it is able to fend for itself, can bear
                the
                economic risk of its investment and has such knowledge and experience
                in
                financial or business matters that it is capable of evaluating the
                merits
                and risks of the investment in the ETCI Shares and has the ability
                to bear
                the economic risks of its prospective investment and can afford the
                complete loss of such investment.

            

    

     

    
      	f.  	
              No
                Directed Selling Efforts.
                BELTRUST acknowledges that BELTRUST has not acquired the ETCI Shares
                as a
                result of, and will not itself engage in, any "directed selling
                efforts"
                (as defined in Regulation S under the Securities Act) in the U.S.
                in
                respect of the ETCI Shares which would include any activities undertaken
                for the purpose of, or that could reasonably be expected to have
                the
                effect of, conditioning the market in the U.S. for the resale of
                the ETCI
                Shares; provided, however, that BELTRUST may sell or otherwise dispose
                of
                the ETCI Shares pursuant to registration of the ETCI Shares pursuant
                to
                the Securities Act and any applicable state and federal securities
                laws or
                under an exemption from such registration requirements and as otherwise
                provided herein.

            

    

     

    
      	g.  	
              No
                General Solicitation.
                BELTRUST is not aware of any advertisement of any of the ETCI Shares
                and
                is not acquiring the ETCI Shares as a result of any form of general
                solicitation or general advertising including advertisements, articles,
                notices or other communications published in any newspaper, magazine
                or
                similar media or broadcast over radio or television, or any seminar
                or
                meeting whose attendees have been invited by general solicitation
                or
                general advertising.

            

    

     

    
      	h.  	
              Disclosure
                of Information.
                The decision to execute this Agreement and acquire the ETCI Shares
                hereunder has not been based upon any oral or written representation
                as to
                fact or otherwise made by or on behalf of ETCI, and such decision
                is based
                entirely upon a review of information (the receipt of which is hereby
                acknowledged) which has been filed by ETCI with the Securities and
                Exchange Commission (the "SEC"). BELTRUST and BELTRUST's advisor(s)
                have
                had a reasonable opportunity to ask questions of and receive answers
                from
                ETCI in connection with the distribution of the ETCI Shares hereunder,
                and
                to obtain additional information, to the extent possessed or obtainable
                without unreasonable effort or expense, necessary to verify the accuracy
                of the information about ETCI. BELTRUST acknowledges that it has
                had
                access to all the information it considers necessary or appropriate
                for
                deciding whether to purchase the ETCI Shares.

            

    

     

    
      	i.  	
              U.S.
                Civil Remedies.
                BELTRUST is acquiring the ETCI Shares pursuant to an exemption from
                the
                registration and prospectus requirements of applicable securities
                legislation in all jurisdictions relevant to this subscription, and,
                as a
                consequence, BELTRUST will not be entitled to use most of the civil
                remedies available under applicable securities legislation and BELTRUST
                will not receive information that would otherwise be required to
                be
                provided to BELTRUST pursuant to applicable securities
                legislation.

            

    

     

    
      	j.  	
              No
                Other Representations.
                No person has made to BELTRUST any written or oral
                representations:

            

    

     

    
      	i.  	
              that
                any person will resell or repurchase any of the ETCI
                Shares;

            

    

     

    
      	ii.  	
              that
                any person will refund the purchase price of any of the ETCI
                Shares;

            

    

     

    
      	iii.  	
              as
                to the future price or value of any of the ETCI Shares;
                or

            

    

     

    
      	iv.  	
              that
                any of the ETCI Shares will be listed and posted for trading on any
                stock
                exchange or automated dealer quotation system or that application
                has been
                made to list and post any of the ETCI Shares on any stock exchange
                or
                automated dealer quotation system.

            

    

     

    
      	v.  	
              No
                Registration Rights.
                Except as provided in this Agreement, BELTRUST acknowledges that
                ETCI has
                not undertaken, and will have no obligation, to register any of the
                ETCI
                Shares under the Securities Act.

            

    

     

    
      	k.  	
              Indemnification.
                BELTRUST will indemnify and hold harmless ETCI and, where applicable,
                its
                directors, officers, employees, agents, advisors and shareholders,
                from
                and against any and all loss, liability, claim, damage and expense
                whatsoever (including, but not limited to, any and all fees, costs
                and
                expenses whatsoever reasonably incurred in investigating, preparing
                or
                defending against any claim, lawsuit, administrative proceeding or
                investigation whether commenced or threatened) arising out of or
                based
                upon any representation or warranty of BELTRUST contained herein
                or in any
                document furnished by BELTRUST to ETCI in connection herewith being
                untrue
                in any material respect or any breach or failure by BELTRUST to comply
                with any covenant or agreement made by BELTRUST to ETCI in connection
                therewith.

            

    

     

    
      	l.  	
              OTC
                Bulletin Board.
                None of the ETCI Shares are listed on any stock exchange or automated
                dealer quotation system and no representation has been made to BELTRUST
                that any of the ETCI Shares will become listed on any stock exchange
                or
                automated dealer quotation system, except that currently market makers
                make a market for ETCI's common shares on the NASD's OTC Bulletin
                Board.

            

    

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    
      	m.  	
              Investor’s
                Advisors.
                BELTRUST has been advised to consult BELTRUST's own legal, tax and
                other
                advisors with respect to the merits and risks of an investment in
                the
                Units and with respect to applicable resale restrictions, and it
                is solely
                responsible (and ETCI is not in any way responsible) for compliance
                with:

            

    

     

    
      	i.  	
              any
                applicable laws of the jurisdiction in which BELTRUST is resident
                in
                connection with the distribution of the Units hereunder,
                and

            

    

     

    
      	ii.  	
              applicable
                resale restrictions.

            

    

     

    
      	n.  	
              Legends.
                BELTRUST acknowledges and agrees that all certificates representing
                the
                ETCI Shares will be endorsed with the following legend, or such similar
                legend as deemed advisable by legal counsel for the Purchaser, to
                ensure
                compliance with Regulation S and to reflect the status of the ETCI
                Shares
                as restricted securities:

            

    

     

    
      	i.  	
              “THE
                SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
                UNDER
                THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE
                UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED
                BY REGULATION S PROMULGATED UNDER THE ACT. SUCH SECURITIES MAY NOT
                BE
                REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
                WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION
                UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION
                UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
                NOT BE
                CONDUCTED UNLESS IN COMPLIANCE WITH THE
                ACT.”

            

    

     

    
      	ii.  	
              Any
                legend required by the laws of any State, including any legend required
                by
                the California Department of Corporations and Sections 417 and 418
                of the
                California Corporations Code.

            

    

    

    6.
       ET
      Europe
      and BELTRUST agree to execute such additional documents and take whatever
      actions reasonably necessary to effectuate this transaction or otherwise carry
      out the intent and purpose of this Agreement, or subsequently transfer the
      shares to be issued. BELTRUST agrees to provide to ET Europe at ETCI expense,
      audited financial statements of BENOIT in accordance with USGAAP from the date
      of inception of BENOIT to the date of closing of the transaction.

    

    7.
       This
      Agreement sets forth the entire understanding between the parties and no other
      prior written or oral agreement shall be recognized or enforced.

    

    
      	 	
              8.
                

            	
              If
                any clause or provision of this Agreement is later determined to
                be
                invalid, illegal or unenforceable, the other clauses and provisions
                of
                this Agreement shall remain in full force and
                effect.

            

    

    

    9.  Every
      right and remedy provided herein shall be cumulative with every other right
      and
      remedy, whether conferred herein, at law or in equity, and may be enforced
      concurrently herewith, and no waiver by the parties in the performance of any
      obligation by the other shall be construed as a waiver of the same or other
      default then, theretofore or thereafter occurring or existing. At any time
      prior
      to the issuance or exchange of the shares as contemplated herein, this Agreement
      may be amended by a writing signed by all parties hereto.

    

    
      	 	
              10.

            	
              This
                Agreement shall be governed by and construed in accordance with the
                internal law of Switzerland without regard to conflict-of-law principles
                and shall be binding upon, and inure to the benefit of, the parties
                hereto
                and their respective successors and permitted
                assigns.

            

    

    

    
      	11.
                	
              is
                Agreement may be executed in counterparts, each of which shall constitute
                an original and which together, shall constitute one and the same
                document.

            

    

    

    
      	12.
                	
              By
                signing this Agreement ET Europe declares to have the full authorization
                and consent of ETCI to do so.

            

    

    

    
      	13.
                	
              By
                signing this Agreement BELTRUST guarantees that all the statements
                made in
                this Agreement in the name of BENOIT and Corporations are
                accurate.

            

    

    

      
        
          
          

        

        
          -
            5 -

          
            

          

        

        
          
          

        

      

    

     

    SIGNATURES

     

    Elephant
      Talk Europe Holding B.V.

    

    /s/:
      Mark Nije

                             
By:
      Mark
      Nije

         
      Its: Director

    

    Date:November
      17, 2006

     

    

    BELTRUST
      AG 

    

    /s/:
      Domenika Huesser

                            
  By:
      Domenika Huesser

                                                                                          
      Its: Managing Director 

    

    Date:November
      17, 2006

    
 

                            
Elephant
      Talk
      Communications, Inc.

    

    /s/:
      Steven van der Velden

                          
      By: Steven van der Velden

         
                           
       Its: Chief Executive Officer

    

                                     Date:
      November 17, 2006

    

      
        
          
          

        

        
          -
            6 -

          
            

          

        

        
          
          

        

      

    

     

    ATTACHMENTS:

    

    

    
      	
              Exhibit

            	
              1

            	
              Memorandum
                of Understanding dated January 17,
                2005

            

    

    

    
      	 	
              1A

            	
              Addendum
                to the Memorandum of Understanding dated March 3,
                2005

            

    

    

    2  List
      of
      Asset

    

    
      	 	
              3

            	
              Escrow
                Agreement dated March 3, 2005

            

    

    

    4 
Funding
      Agreement and Promise of Repayment dated February 15, 2005

    

    
      	 	
              5

            	
              Security
                Agreement with Material and Immaterial Assets as Collateral dated
                February
                15, 2005

            

    

    

    

    
      
        
          
          

        

        
          -
            7 -

          
            

          

        

        
          
          

        

      

    

    
      EXHIBIT
        - 1

      

      MEMORANDUM
        OF UNDERSTANDING

      

      The
        parties to this Agreement are Elephant Talk Communications, Inc. (“ETCI”), a
        California corporation, and BELTRUST AG (“BELTRUST”), registered under
        CH-270.3.013.076-3 in Basel, Switzerland.

      

      When
        executed by BELTRUST and ETCI, this Memorandum of Understanding (MOU)
("Agreement")
        will
        set
        out ETCI and BELTRUST's understanding and agreement regarding this proposed
        transaction.

      

      
        	 	
                1.

              	
                ETCI
                  desires to purchase from BELTRUST, and BELTRUST wishes to sell
                  to ETCI,
                  all outstanding shares of BENOIT TELECOM AG (“BENOIT TELECOM”), registered
                  under CH- 270.3.013.519-0 in Basel, Switzerland in exchange for
                  a cash
                  payment of US$5,900,000 plus US$260,000 reflecting the expected
                  funds to
                  have been made available by BELTRUST to cover expenses above margin
                  by
                  BENOIT TELECOM and its subsidiaries for the period from January
                  1, 2005
                  until the Closing Date.

              

      

      

      2.            
        After
        the
        completion of a due diligence, envisioned to be ready within 21 days, parties
        plan on executing a Stock Purchase Agreement not later than April 30, 2005
        (“Closing Date”), depending on the Funding Condition.

      

      
        	 	
                3.

              	
                At
                  the completion of this transaction, BENOIT TELECOM will consist
                  of the
                  following entities and together will have assets as listed in the
                  Exhibit
                  A:

              

      

      

        
        BENOIT TELECOM Europe GmbH

       

        
        BENOIT TELECOM Carrier Services GmbH

       

        
        BENOIT TELECOM Schweiz GmbH

       

        
        BENOIT TELECOM Espana SL

       

        
        BENOIT TELECOM Osterreich GmbH

      

      ETCI
        has
        the desire to change name of BENOIT TELECOM and BELTRUST agrees that ETCI
        can
        change the name of BENOIT TELECOM after the signing of the MOU.

      

      4.           
        The
        parties to this Agreement acknowledge the following:

       

      (a)
         That
        the
        execution of this transaction will depend on ETCI’s ability to raise such
        funding (“Funding Condition”),

      

      5.            
        In connection
        with this transaction, ETCI hereby represents that:

      

      
        	 	
                (a)

              	
                It
                  has due corporate authority to enter into this Agreement and to
                  perform
                  the transaction contemplated
                  herein.

              

      

      

      
        	 	
                (b)

              	
                ETCI
                  has no liability or obligation to pay any fees or commissions to
                  any
                  broker, finder or agent with respect to the transactions contemplated
                  by
                  this Agreement for which BELTRUST could be obligated or liable.
                  

              

      

      

      
        	 	
                (c)

              	
                ETCI
                  has made inquiries of BELTRUST and BENOIT TELECOM from independent
                  professionals, legal and/or tax advisors as it considers necessary
                  or
                  appropriate for determining whether to purchase the shares in BENOIT
                  TELECOM. ETCI, as an experienced telecommunications company, is
                  familiar
                  with the business, affairs, risks and properties of BENOIT TELECOM,
                  and
                  ETCI has made inquiries of BENOIT TELECOM and its officers, directors
                  and
                  representatives.

              

      

      

      (d)          
        The
        execution, delivery and performance of this Agreement by ETCI and the
        consummation by ETCI of the transaction contemplated herein does not and
        will
        not result in a violation of any law, rule, regulation, order, judgment,
        injunction, decree or other restriction of any court or governmental authority
        to which ETCI is subject, or by which any property or asset of ETCI is bound
        or
        affected. 

      

      
        
          
          

        

        
          -
            8 -

          
            

          

        

        
          
          

        

      

       

      6.       
             In connection with this transaction, BELTRUST hereby
        represents that:

      

      
        	 	
                (a)

              	
                BELTRUST
                  is duly organized, validly existing and in good standing under
                  the laws of
                  its jurisdiction, and has the necessary authority to enter into
                  this
                  transaction.

              

      

      

      
        	 	
                (b)

              	
                BELTRUST
                  has no liability or obligation to pay any fees or commissions to
                  any
                  broker, finder or agent with respect to the transactions contemplated
                  by
                  this Agreement for which ETCI could become liable or
                  obligated.

              

      

      

      
        	 	
                (c)

              	
                BENOIT
                  TELECOM and all subsidiaries are duly organized, validly existing
                  and in
                  good standing under the laws of their jurisdiction, and, to the
                  extent
                  necessary, have the authority to enter into this
                  transaction.

              

      

      

      
        	 	
                (d)

              	
                BENOIT
                  TELECOM and all subsidiaries together control the assets as listed
                  in the
                  annex and have only debts directly related to the normal course
                  of
                  business.

              

      

      

      
        	 	
                (e)

              	
                The
                  execution, delivery and performance of this Agreement by BELTRUST
                  and the
                  consummation by it of the transaction contemplated herein, does
                  not and
                  will not result in a violation of any law, rule, regulation, order,
                  judgment, injunction, decree or other restriction of any court
                  or
                  governmental authority to which BELTRUST is
                  subject.

              

      

       

      7.
         ETCI
        and
        BELTRUST agree to execute such additional documents and take whatever actions
        reasonably necessary to effectuate this transaction or otherwise carry out
        the
        intent and purpose of this Agreement, or subsequently transfer the shares
        to be
        issued.

      

      8. This
        Agreement sets forth the entire understanding between the parties and no
        other
        prior written or oral agreement shall be recognized or enforced.

      

      9. If
        any
        clause or provision of this Agreement is later determined to be invalid,
        illegal
        or unenforceable, the other clauses and provisions of this Agreement shall
        remain in full force and effect.

      

      10. Every
        right and remedy provided herein shall be cumulative with every other right
        and
        remedy, whether conferred herein, at law or in equity, and may be enforced
        concurrently herewith, and no waiver by the parties in the performance of
        any
        obligation by the other shall be construed as a waiver of the same or other
        default then, theretofore or thereafter occurring or existing. At any time
        prior
        to the issuance or exchange of the shares as contemplated herein, this Agreement
        may be amended by a writing signed by all parties hereto.

      

      11.
         This
        Agreement may be executed in counterparts, each of which shall constitute
        an
        original and which together, shall constitute one and the same
        document.

      

      Elephant
        Talk Communications, Inc.

      

      By:
        Russelle Choi 

      Its:
        Chief Executive Officer 

      

      Date:
        January 17, 2005

      

      

      BELTRUST
        AG 

      

      By:
        Domenika Huesser

      Its:
        Managing Director 

      

      Date:
        January 17, 2005

      

      
        
          
            
            

          

          
            -
              9 -

            
              

            

          

          
            
            

          

        

      Exhibit
        A

    

     

    
      	
              Assets
                within the Benoit Telecom Holding Group of
                Companies

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              List
                of Telecom Licenses / Interconnections / Supplier contracts
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom
                License Netherlands Royal Telecom (OPTA) 

            	
               

            
	
               

            	
              Carrier
                (Pre)Select Code Neth: 1617 (OPTA)

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom
                License Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier
                (Pre)Select Code Austria: 1009

            	
               

            	
               

            
	
               

            	
              Geographical
                numbers Austria (Vienna)

            	
               

            	
               

            
	
               

            	
              0800
                /0900 numbers Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Telekom Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier
                contracts 1 (Telekabel, Mobilkom, Tele2, UTA Telekom,
                Telering)

            
	
               

            	
              Carrier
                contracts 2 (T-Mobile, Liwest, Etel, One GmbH, COLT)

            
	
               

            	
              Contract
                for 0800 / 0900

            	
               

            	
               

            	
               

            
	
               

            	
              4
                x
                E1 ASD – FFM

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2
                x
                E1 FFM – ZRCH

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2
                x
                E1 FFM – VIE

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Co-location
                Vienna 25m2

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                Lease agreements with Immorent

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom
                License Switserland

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier
                (Pre)Select Code Switserland : 10747

            	
               

            
	
               

            	
              0800/0900
                numbers Switserland

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Swisscom

            	
               

            	
               

            	
               

            
	
               

            	
              INA
                contract for use 0800/0900 numbers database

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom
                License tipo B Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom
                License tipo C Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier
                (Pre)Select Code Spain : 1033

            	
               

            	
               

            
	
               

            	
              0800
                /0900 numbers Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Telefonica

            	
               

            	
               

            	
               

            
	
               

            	
              45
                Mbit/s MAD – BCL 15 year I.R.U.

            	
               

            	
               

            
	
               

            	
              Co-Location
                Barcelona 10m2

            	
               

            	
               

            	
               

            
	
               

            	
              Co-Location
                Madrid 10m2

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              List
                of Customers Benoit Telecom Holding AG

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Retail

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1617
                [NL]

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1033
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1009
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonehome
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              10747
                [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Whitelable
                CPS

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Royal
                Telecom [ESP]

            	
               

            	
               

            	
               

            
	
               

            	
              Hosting
                C(P)S

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              None

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Premium
                Rate

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Klikbonus
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Declaro
                Global Limited [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch
                [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              DialXS
                [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon
                [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Freephone
                / 0800

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              RVS
                Networks [AUS]

            	
               

            	
               

            	
               

            
	
               

            	
              RVS
                Networks [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              Wholesale

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              List
                of Equipment

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Pcs

            	
              Description
                of Asset

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles
                S50 (Barcelona) 

            	
               

            	
               

            	
               

            
	
              7

            	
              Teles
                S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles
                V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various
                equipm. Rack etc .. (BCL)

            	
               

            	
               

            
	
              1

            	
              Teles
                S50 (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
              7

            	
              Teles
                S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles
                V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various
                equipm. Rack etc .. (MAD)

            	
               

            	
               

            
	
              1

            	
              Mux
                (Barcelona)

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Mux
                (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                furniture

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                PC's

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles
                S50 (Vienna)

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles
                S8 cards

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles
                V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various
                equipm. Rack etc .. (VIE)

            	
               

            	
               

            
	
              1

            	
              Teles
                S50 Zurich

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles
                S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles
                V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
              ++

            	
              Two
                stage dialling w. DTMF (ref switches)

            	
               

            	
               

            
	
               

            	
              Various
                equipm. Rack etc .. (ZRCH)

            	
               

            	
               

            
	
               

            	
              Servers
                VoIP (Spain)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                Furniture various countries

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                PC's and accessories various countries

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Total
                price of assets

            	
               

            	
               

            	
              US$
                5,900,000.00

            

    

    
 

    
    

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

    EXHIBIT
      - 1A

    

    ADDENDUM
      TO MEMORANDUM OF UNDERSTANDING

    

    The
      parties to this agreement are Elephant Talk Communications, Inc. (“ETCI”), a
      California corporation, and Beltrust AG (“BELTRUST”), registered under
      CH-270.3.013.076-3 in Basel, Switzerland.

    

    When
      executed by BELTRUST and ETCI, this agreement ("Agreement")will
      set
      out ETCI and BELTRUST's understanding and agreement regarding this proposed
      transaction.

    

    Taking
      into consideration that:

    

    
      	·  	
              Parties
                have entered into a Memorandum of Understanding dated 17 January
                2005
                (“MOU”) regarding the purchase of all outstanding shares in the Swiss
                based company Benoit Telecom Holding AG and its subsidiaries
                (“BENOIT”);

            

    

    
      	·  	
              Parties
                wish to amend and add certain conditions to the proposed transaction
                for
                the sale and purchase of all the outstanding shares in
                BENOIT;

            

    

    
      	·  	
              ETCI
                has requested an extension of the originally agreed upon due diligence
                closing date of 30 April 2005;

            

    

    
      	·  	
              BELTRUST
                is willing under certain conditions to grant an extension of the
                due
                diligence period.

            

    

    

    Agree
      to
      the following:

    

    
      	1.  	
              BELTRUST
                grants ETCI an extension of the due diligence period up to a maximum
                of
                one (1) year, commencing as of date of this Agreement. BELTRUST thus
                also
                grants the extension for the planned execution of the Share Purchase
                Agreement as referred to in the MOU
                (“SPA”).

            

    

    
      	2.  	
              BELTRUST
                provides exclusivity to ETCI for the purchase of the shares in BENOIT
                for
                a period equal to the due diligence period as stipulated under
                1.

            

    

    
      	3.  	
              ETCI
                will provide security for the purchase price as laid down in the
                MOU by
                paying the complete purchase price into a bank account at an escrow
                agent.
                In case parties do not enter into the SPA, the Purchase Price will
                be
                returned to ETCI by the escrow
                agent.

            

    

    
      	4.  	
              For
                the continuation, built-up of the business and the telecom network
                during
                the extended due diligence period, ETCI will assume sole responsibility
                for providing working capital to BENOIT. In case parties do not enter
                into
                the SPA, the working capital provided will be returned by BENOIT
                to ETCI.
                As security for repayment of this working capital, BELTRUST will
                arrange
                that Benoit will provide its assets as security to ETCI. In case
                parties
                enter into the SPA, the security arrangement will automatically terminate,
                irrespective of how much working capital has been repaid by BENOIT
                to
                ETCI. 

            

    

    
      	5.  	
              Parties
                appoint CC Financial Consult AG, Oberageri, Switzerland as the escrow
                agent as discussed under 3.

            

    

    
      	6.  	
              The
                purchase price will be paid into the escrow account no later than
                May 31,
                2005.

            

    

    
      	7.  	
              Parties
                agree that BENOIT will be changing their corporate names into Elephant
                Talk. In case parties do not enter into the SPA, these name changes
                will
                be reversed whereby the direct cost associated is to be borne by
                ETCI.

            

    

    
      	8.  	
              This
                Agreement sets forth the entire understanding between the parties
                and no
                other prior written or oral agreement shall be recognized or
                enforced.

            

    

    
      	9.  	
              If
                any clause or provision of this Agreement is later determined to
                be
                invalid, illegal or unenforceable, the other clauses and provisions
                of
                this Agreement shall remain in full force and
                effect.

            

    

    
      	10.  	
              Every
                right and remedy provided herein shall be cumulative with every other
                right and remedy, whether conferred herein, at law or in equity,
                and may
                be enforced concurrently herewith, and no waiver by the parties in
                the
                performance of any obligation by the other shall be construed as
                a waiver
                of the same or other default then, theretofore or thereafter occurring
                or
                existing. At any time prior to the issuance or exchange of the shares
                as
                contemplated herein, this Agreement may be amended by a writing signed
                by
                all parties hereto.

            

    

    
      	11.  	
              This
                Agreement may be executed in counterparts, each of which shall constitute
                an original and which together, shall constitute one and the same
                document.

            

    

    

    

    Elephant
      Talk Communications, Inc.

    

    /s/:Russelle
      Choi

    By:
      Russelle Choi

    Its:
      Chief Executive Officer

    

    Date:
      March 3, 2005

    

    

    BELTRUST
      AG 

     

    /s/:
      Domenika Huesser

    By:
      Domenika Huesser

    Its:
      Managing Director

    

    Date:
      March 3, 2005

     

    
      
        
          
          

        

        
          -
            11 -

          
            

          

        

        
          
          

        

      

    

    

      EXHIBIT
        - 2

    

     

    
      	
              List
                of Assets of BENOIT TELECOM HOLDING AG and
                its Subsidiaries

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              List
                of
                Telecom Licenses / Interconnections / Supplier contracts
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                Netherlands Royal Telecom (OPTA) 

            	
               

            
	
               

            	
              Carrier (Pre)Select
                Code Neth: 1617 (OPTA)

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select
                Code Austria: 1009

            	
               

            	
               

            
	
               

            	
              Geographical
                numbers
                Austria (Vienna)

            	
               

            	
               

            
	
               

            	
              0800 /0900 numbers
                Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Telekom
                Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier contracts
                1
                (Telekabel, Mobilkom, Tele2, UTA Telekom, Telering)

            
	
               

            	
              Carrier contracts
                2
                (T-Mobile, Liwest, Etel, One GmbH, COLT)

            
	
               

            	
              Contract for
                0800 /
                0900

            	
               

            	
               

            	
               

            
	
               

            	
              4 x E1 ASD –
                FFM

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2 x E1 FFM –
                ZRCH

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2 x E1 FFM –
                VIE

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Co-location
                Vienna
                25m2

            	
               

            	
               

            	
               

            
	
               

            	
              Office Lease
                agreements with Immorent

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                Switserland

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select
                Code Switserland : 10747

            	
               

            
	
               

            	
              0800/0900 numbers
                Switserland

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Swisscom

            	
               

            	
               

            	
               

            
	
               

            	
              INA contract
                for use
                0800/0900 numbers database

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                tipo
                B Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                tipo
                C Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select
                Code Spain : 1033

            	
               

            	
               

            
	
               

            	
              0800 /0900 numbers
                Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect
                Telefonica

            	
               

            	
               

            	
               

            
	
               

            	
              45 Mbit/s MAD
– BCL
                15 year I.R.U.

            	
               

            	
               

            
	
               

            	
              Co-Location
                Barcelona 10m2

            	
               

            	
               

            	
               

            
	
               

            	
              Co-Location
                Madrid
                10m2

            	
               

            	
               

            	
               

            

    

     

    

    
      
        
          
          

        

        
          -
            12 -

          
            

          

        

        
          
          

        

      

    

     

     

    
      	
              List
                of
                Customers Benoit Telecom Holding AG

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Retail

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1617 [NL]

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1033 [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1009 [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonehome
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              10747 [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Whitelable
                CPS

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Royal Telecom
                [ESP]

            	
               

            	
               

            	
               

            
	
               

            	
              Hosting
                C(P)S

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              None

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Premium
                Rate

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Klikbonus
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Declaro Global
                Limited [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch
                [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              DialXS [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Freephone
                /
                0800

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              RVS Networks
                [AUS]

            	
               

            	
               

            	
               

            
	
               

            	
              RVS Networks
                [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              Wholesale

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone
                [CH]

            	
               

            	
               

            	
               

            	
               

            

    

    
 

    
      
        
          
          

        

        
          -
            13 -

          
            

          

        

        
          
          

        

      

    

    

    
      	
              List
                of
                Equipment

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Pcs

            	
              Description
                of
                Asset

            	
               

            	
               

            	
               

            	
               

            
	
               1

            	
              Teles S50
                (Barcelona) 

            	
               

            	
               

            	
               

            
	
               7

            	
              Teles S8 cards
                (Redundancy)

            	
               

            	
               

            	
               

            
	
               1

            	
              Teles V8
                Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm.
                Rack
                etc .. (BCL)

            	
               

            	
               

            
	
               1

            	
              Teles S50
                (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
               7

            	
              Teles S8 cards
                (Redundancy)

            	
               

            	
               

            	
               

            
	
               1

            	
              Teles V8
                Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm.
                Rack
                etc .. (MAD)

            	
               

            	
               

            
	
               1

            	
              Mux
                (Barcelona)

            	
               

            	
               

            	
               

            	
               

            
	
               2

            	
              Mux
                (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office
                furniture

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office PC's

            	
               

            	
               

            	
               

            	
               

            
	
               1

            	
              Teles S50
                (Vienna)

            	
               

            	
               

            	
               

            	
               

            
	
               2

            	
              Teles S8
                cards

            	
               

            	
               

            	
               

            	
               

            
	
               1

            	
              Teles V8
                Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm.
                Rack
                etc .. (VIE)

            	
               

            	
               

            
	
               1

            	
              Teles S50
                Zurich

            	
               

            	
               

            	
               

            	
               

            
	
               2

            	
              Teles S8 cards
                (Redundancy)

            	
               

            	
               

            	
               

            
	
               2

            	
              Teles V8
                Cards

            	
               

            	
               

            	
               

            	
               

            
	
               ++

            	
              Two stage dialling
                w. DTMF (ref switches)

            	
               

            	
               

            
	
               

            	
              Various equipm.
                Rack
                etc .. (ZRCH)

            	
               

            	
               

            
	
               

            	
              Servers VoIP
                (Spain)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office Furniture
                various countries

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office PC's
                and
                accessories various countries

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Total
                price
                of assets

            	
               

            	
               

            	
              US$6,043,080.00

            

    

    
 

    
      
        
          
          

        

        
          -
            14 -

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      - 3

    

    ESCROW
      AGREEMENT

    

    

    AGREEMENT
      between Beltrust
      AG
      (Seller), CC
      Financial Consult AG
      (Escrow
      Agent), and Elephant
      Talk Communications Inc
      (Buyer).
      Seller and Buyer have at the time of execution of this agreement entered into:
      

    

    
      	a)  	
              a
                Memorandum of Understanding dated 17 January 2005,
                

            

    

    
      	b)  	
              a
                Funding Agreement and Promise of Repayment dated 15 February
                2005

            

    

    
      	c)  	
              a
                Security Agreement 15 February 2005

            

    

    
      	d)  	
              an
                Addendum to Memorandum of Understanding dated 3 March 2005 (the
                Contract)

            

    

    

    The
      closing will take place at such place and time Seller and Buyer jointly
      designate in writing. In accordance with the Contract, Buyer must place a
      deposit equal to approximately US$6,043,080. This amount will be considered
      an
      earnest deposit on this account, and will be held in escrow by Escrow
      Agent.

    

    The
      earnest deposit referred to above will be paid by to Escrow Agent by Buyer.
      Escrow Agent will acknowledge receipt of the earnest deposit upon receipt in
      its
      bank account. 

    

    If
      the
      closing takes place under the Contract, Escrow Agent at the time of closing
      shall release the amount deposited with Agent to Seller or in accordance with
      Seller's written instructions. Escrow Agent shall make simultaneously transfer
      of the said property to the Buyer. 

    

    If
      no
      closing takes place under the Contract, Escrow Agent shall continue to hold
      the
      amount deposited until receipt of written authorization for its deposition
      signed by both Buyer and Seller. If there is any dispute as to whom Escrow
      Agent
      is to deliver the amount deposited, Escrow Agent shall hold the sum until the
      parties' rights are finally determined in an appropriate action or proceeding
      or
      until a court orders Escrow Agent to deposit the earnest deposit with it. If
      Escrow Agent does not receive a proper written authorization from Seller and
      Buyer, or if an action or proceeding to determine Seller's and Buyer's rights
      is
      not begun or diligently prosecuted, Escrow Agent is under no obligation to
      bring
      an action or proceeding in court to deposit the sum held, but may continue
      to
      hold the deposit. 

    

    Escrow
      Agent assumes no liability except that of a stakeholder. Escrow Agent's duties
      are limited to those specifically set out in this Agreement. Escrow Agent shall
      incur no liability to anyone except for willful misconduct or gross negligence
      so long as the Escrow Agent acts in good faith. 

    

    Governing
      Law; Assigns.
      This
      Agreement shall be governed by and construed in accordance with the internal
      law
      of the Switzerland without regard to conflict-of-law principles and shall be
      binding upon, and inure to the benefit of, the parties hereto and their
      respective successors and permitted assigns.

    

    Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

    

    Entire
      Agreement.
      Except
      as otherwise set forth in the Contract, this Agreement constitutes the entire
      understanding and agreement of the parties with respect to the subject matter
      of
      this Agreement and supersedes all prior agreements or understandings, written
      or
      oral, between the parties with respect to the subject matter
      hereof.

    

    Waivers.
      No
      waiver by any party hereto of any condition or of any breach of any provision
      of
      this Agreement shall be effective unless in writing. No waiver by any party
      of
      any such condition or breach, in any one instance, shall be deemed to be further
      or continuing waiver of any such condition or breach or a waiver of any other
      condition or breach of any other provision contained herein.

    

    Amendment.
      This
      Agreement may be amended only by the written agreement of Seller and
      Buyer.

    

    

    Whereof
      the parties sign their names this 3rd
      day of
      March 2005.

    

     

    Seller:

    BELTRUST
      AG

    /s/:
      Domenika Huesser

    Its:
      Managing Director

    

    Buyer:

    Elephant
      Talk Communications, Inc.

    /s/:
      Russelle Choi

    Its:
      Chief Executive Officer

    

    Escrow
      Agent:

    CC
      Financial Consult AG

    /s/:
      Rene Fusco

    Its:
      Director

    

      
        
          
          

        

        
          -
            15 -

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      - 4

    

    FUNDING
      AGREEMENT AND PROMISE OF REPAYMENT

    

    

    The
      parties to this agreement are Elephant Talk Communications, Inc. (“ETCI”), a
      California corporation, and Beltrust AG (“BELTRUST”), registered under
      CH-270.3.013.076-3 in Basel, Switzerland.

    

    When
      executed by BELTRUST and ETCI, this agreement ("Agreement")
      will
      set
      out ETCI and BELTRUST's understanding and agreement regarding this proposed
      transaction.

    

    Taking
      into consideration that:

    

    Parties
      have entered into a Memorandum of Understanding dated 17 January 2005 (“MOU”)
      regarding the purchase of all outstanding shares in the Swiss based company
      Benoit Telecom Holding AG and its subsidiaries (“BENOIT”);

    

    Agree
      to
      the following:

    

    
      	12.  	
              For
                the continuation, built-up of the business and the telecom network,
                ETCI
                will assume responsibility for providing funding to BENOIT, and BENOIT
                hereby promises to re-pay the amount advance to ETCI. In case parties
                do
                not enter into the Securities Purchase Agreement (SPA), the funding
                provided will be repaid by BENOIT to ETCI. In the event the parties
                do
                enter into SPA, BENOIT’s obligation to re-pay the funds advanced will be
                discharged. As security for repayment of this funding, Beltrust will
                cause
                BENOIT to grant a security interest in its assets to ETCI.
                

            

    

    

    
      	13.  	
              Parties
                agree that BENOIT will be change their corporate names into Elephant
                Talk.
                In case parties do not enter into the SPA, these name changes will
                be
                reversed whereby the direct cost associated is to be borne by
                ETCI.

            

    

    

    
      	14.  	
              This
                Agreement sets forth the entire understanding between the parties
                and no
                other prior written or oral agreement shall be recognized or
                enforced.

            

    

    

    
      	15.  	
              If
                any clause or provision of this Agreement is later determined to
                be
                invalid, illegal or unenforceable, the other clauses and provisions
                of
                this Agreement shall remain in full force and
                effect.

            

    

    

    
      	16.  	
              Every
                right and remedy provided herein shall be cumulative with every other
                right and remedy, whether conferred herein, at law or in equity,
                and may
                be enforced concurrently herewith, and no waiver by the parties in
                the
                performance of any obligation by the other shall be construed as
                a waiver
                of the same or other default then, theretofore or thereafter occurring
                or
                existing. At any time prior to the issuance or exchange of the shares
                as
                contemplated herein, this Agreement may be amended by a writing signed
                by
                all parties hereto.

            

    

    

    
      	17.  	
              This
                Agreement may be executed in counterparts, each of which shall constitute
                an original and which together, shall constitute one and the same
                document.

            

    

    

    

    Elephant
      Talk Communications, Inc.

    

    /s/:
      Russelle Choi

    By:
      Russelle Choi

    Its:
      Chief Executive Officer 

    

    Date:
      February 15, 2005

    

    

    Beltrust
      AG 

     

    /s/:
      Domenika Huesser 

    By:
      Domenika Huesser

    Its:
      Managing Director

    

    Date:
      February 15, 2005

     

    
      
        
          
          

        

        
          -
            16 -

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      - 5

    
    

    SECURITY
      AGREEMENT WITH MATERIAL
      AND IMMATERIAL ASSETS AS COLLATERAL

    

     

    This
      Security Agreement is made and effective 15 February 2005.

    

    

    BETWEEN: 
ELEPHANT
      TALK COMMUNICATIONS INC (the
      “Secured Party”) a
      corporation organized and existing under the laws of the California, with its
      head office located at Orange, USA.

    

    

    AND:                         
      BENOIT
      TELECOM HOLDING AG (the
      “Borrower”) a
      corporation organized and existing under the laws of the SWITSERLAND, with
      its
      head office located at Basel, Switzerland.

    

    

    BACKGROUND
      INFORMATION

    

    
      	A.  	
              Secured
                Party and Borrower herewith give execution to the agreement made
                between
                Secured Party and Borrower’s owner Beltrust AG, in which it is stipulated
                that Borrower will provide security by means of collateral for funding
                to
                be received from Borrower.

            

    

    

    
      	B.  	
              As
                of even date herewith, Secured Party will extend at various intervals
                loans to Borrower, up to a maximum amount of US$ 2,000,000.— (two million
                USD). 

            

    

    

    
      	C.  	
              Secured
                Party has required Borrower to give certain collateral for the
                indebtedness in the form of various assets listed in Exhibit “A” attached
                hereto (the “Collateral”).

            

    

    

    
      	D.  	
              Borrower
                represents and warrants to the Secured Party that the Borrower is
                the sole
                and exclusive owner of the Collateral and has full and unrestricted
                right,
                title and interest in and to said
                Collateral.

            

    

    

    NOW,
      THEREFORE, in consideration of the premises set forth herein and for other
      good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, Borrower agrees to grant Secured Party a security interest in
      and
      to said Collaterals as follows:

    

    
      	1.  	
              GRANT
                OF SECURITY INTEREST

            

    

    

    
      	1.1  	
              Grant
                of Security Interest 

            

    

           
      Borrower hereby grants and conveys to the Secured Party, a first priority
      security interest as defined under Swiss Law, for the benefit of the Secured
      Party and the Secured 

           
      Party’s successors and assigns, in and to the Borrower’s entire right, title and
      interest in and to the Collateral. 

    

    
      
        
        

      

      
        -
          17 -

        
          

        

      

      
        
        

      

    

     

    1.2 Obligations
      Secured

          
      The security granted hereunder shall be security for the prompt payment and
      performance of the Obligations. The Obligations shall include any and all debts,
      obligations and 

          
      liabilities that the Borrower may have to the Secured Party, including but
      not
      limited to all obligations set forth in the Funding Agreement and Promise to
      Re-Pay, including but 

          
      not limited to principal payment, interest, penalties and periodic
      payments.

    

    
      	2.  	
              USE
                AND ENJOYMENT PRIOR TO
                DEFAULT

            

    

    

    So
      long
      as Borrower does not commit an Event of Default or an Event of Default does
      not
      otherwise occur, Borrower shall maintain full use and enjoyment of the
      Collateral to use consistent with and subject to the terms of this
      Agreement.

    

    
      	3.  	
              REMEDIES
                UPON DEFAULT

            

    

    

    On
      occurrence of an Event of Default, Secured Party shall have the following
      remedies: 

    

    
      	3.1  	
              Secured
                party may, at any time after default, without notice to Borrower,
                declare
                all or any of the obligations immediately due and payable. Secured
                party
                will have, in addition to all other rights and remedies, the rights
                and
                remedies of a Secured Party under Swiss Law, including, without
                limitation, the right to sell, lease, or otherwise dispose of any
                or all
                of the Collateral.

            

    

    

    
      	3.2  	
              After
                deducting all costs and expenses of every kind incurred in, or incidental
                to, the retaking, holding, advertising, preparing for sale, or the
                selling, leasing, or otherwise disposing of the Collateral, including,
                but
                not limited to, attorney's fees, legal expenses, and cost of any
                repair
                considered necessary by Secured Party, all of which costs and expenses
                Borrower agrees to pay, Secured Party may apply the net proceeds
                of any
                sale, license, lease, or other disposition of the collateral to payment
                of
                the obligation or obligations secured, whether due or not, in such
                order
                as Secured Party may elect. However, if Secured Party has transferred
                any
                of the obligations to another party, the net proceeds of any disposition
                of Collateral shall be applied first to payment of any notes constituting
                obligations in the order of their dates beginning with the note of
                earliest date (a note in extension or renewal being considered as
                if of
                the same date as the original note) and then to payment of any other
                obligations, whether due or not, in such order as Secured Party may
                elect.
                In applying net proceeds to payment of obligations, proper rebate
                for any
                unearned interest or discount will be made.

            

    

    

    
      	3.3  	
              Whenever
                an attorney is employed to collect any obligation or to enforce any
                right
                of Secured Party against Borrower under this security agreement,
                whether
                by suit or other means, Borrower agrees to pay an attorney's fees.
                

            

    

    

    
      	4.  	
              EVENTS
                OF DEFAULT

            

    

    

    The
      following shall constitute Events of Default hereunder:

    

    
      	4.1  	
              Any
                failure to make any payment as required under the stipulations as
                agreed
                between Secured Party and Borrowers’ owner Beltrust AG.
                

            

    

    

    
      	4.2  	
              Any
                failure to perform any act required under the terms of this
                Agreement.

            

    

    

    
      	4.3  	
              Lender
                determines that any of the representations and warranties made by
                the
                Borrower hereunder are untrue, inaccurate or misleading or have become
                untrue, inaccurate or misleading.

            

    

    

    
      	5.  	
              BORROWER
                COVENANTS, REPRESENTATIONS AND
                WARRANTIES

            

    

    

    Borrower
      warrants, represents and covenants with and to the Borrower the
      following:

    

    
      	5.1  	
              The
                Borrower has full right, power and authority to execute and deliver
                this
                Security Agreement and to grant the security interest in the Collateral
                as
                provided herein. 

            

    

    

    
      	5.2  	
              The
                execution, delivery and performance of this Security Agreement has
                been
                duly authorized by all necessary corporate
                action.

            

    

    

    
      	5.3  	
              This
                Security Agreement has been duly executed and delivered by the Borrower
                and constitutes the legal, valid and binding obligation of the Borrower
                enforceable against the Borrower in accordance with its terms, except
                as
                may be limited by bankruptcy, reorganization, insolvency, moratorium,
                or
                other similar laws from time to time in effect affecting creditor's
                rights
                generally and by principles governing the availability of equitable
                remedies, and the grant of the security interest in the Collateral
                existing on the date hereof constitutes, and, as to subsequently
                acquired
                Collateral, will constitute, a valid and perfected first and prior
                security interest, superior to the rights of any other person, in
                and to
                the Collateral.

            

    

     

    
      
        
        

      

      
        -
          18 -

        
          

        

      

      
        
        

      

    

     

    
      	5.4  	
              Borrower
                shall have the responsibility and obligation to defend and protect
                the
                Collaterals at its own cost and expense and that Secured Party shall
                have
                no responsibility regarding the same. In the event that the Borrower
                fails
                or refused to take any step required by Secured Party to defend and
                protect its Collateral, Secured Party may, but is not required to
                take
                such action on behalf of and in the name of the Borrower and any
                costs and
                expenses incurred by Secured Party shall be immediately due and payable
                upon notice thereof to Borrower and such amounts shall be and become
                further Obligations secured by this Security
                Agreement.

            

    

    

    
      	5.5  	
              Borrower
                shall take any and all actions necessary to assure that the Collaterals
                remain in effect and are fully enforceable throughout the term of
                this
                Agreement. This shall include, but is not limited to assuring that
                such
                Collaterals are renewed on a timely
                basis.

            

    

    

    
      	5.6  	
              Borrower
                shall not during the term of this Agreement, license any rights to
                use the
                Collaterals or any portion thereof without the advanced written consent
                of
                the Secured Party, which consent may be withheld in the discretion
                of the
                Secured Party.

            

    

    

    
      	6.  	
              POWER
                OF ATTORNEY

            

    

    

    The
      Borrower hereby constitutes and appoints the Secured Party its true and lawful
      attorney-in-fact for the purpose of carrying out the provisions of this Security
      Agreement and taking any action and executing any instrument which the Secured
      Party may deem necessary or advisable to accomplish the purposes hereof, which
      appointment is irrevocable and coupled with an interest.

    

    
      	7.  	
              NOTICES

            

    

    

    Any
      notice or demand upon any party shall be in writing and shall be deemed to
      have
      been received when personally delivered or when mailed through the Postal
      Service, postage prepaid, return receipt requested, or when shipped by private
      express carrier, shipment charges prepaid, to the party to whom delivery shall
      be made at the following respective addresses: 

    

    If
      to the
      Borrower:  
Benoit
      Telecom Holding AG

    Gartenstrasse
      105

    CH-4502
      Basel

    Switzerland

    Attention:                             
      Domenika
      Huesser

    Managing
      Director

    

    If
      to the
      Secured party:       Elephant
      Talk Communications Inc

    8/F
      145-159 Yeung Uk Road

    Tsuen
      Wan, Hong Kong

    Attention:                             Russelle
      Choi

    Chief
      Executive Officer

    

    
      	8.  	
              NO
                WAIVER

            

    

    

    No
      delay
      on the part of the Secured Party in exercising any of its rights, remedies,
      powers and privileges hereunder or under applicable law or partial or single
      exercise thereof, shall constitute a waiver thereof. None of the terms and
      conditions of this Security Agreement may be changed, waived, modified or varied
      in any manner whatsoever unless in writing duly signed by the Borrower and
      the
      Secured Party. 

    

    
      	9.  	
              INDEMNIFICATION

            

    

    

    The
      rights, powers and remedies of the Secured Party herein provided are cumulative
      and not exclusive of any rights, powers or remedies which the Secured Party
      would otherwise have. The Borrower shall indemnify the Secured Party and save
      harmless the Secured Party from and against any liability, cost (including
      reasonable attorneys' fees) or damage which it may incur in connection with
      this
      Security Agreement and the security interest granted hereby, including, without
      limitation, any such liability, cost or damage it may incur in connection with
      the exercise, performance or preservation of any of its rights, powers and
      remedies set forth herein or otherwise available under law (except for any
      liability, cost or damage arising from the Secured Party's gross negligence
      or
      willful misconduct).

     

    
      
        
        

      

      
        -
          19 -

        
          

        

      

      
        
        

      

    

     

    
      	10.  	
              BINDING
                AGREEMENT

            

    

    

    This
      Security Agreement shall be binding upon the Borrower and its successors and
      assigns and shall inure to the benefit of the Secured Party and its successors
      and assigns, provided, however, the Borrower may not, without the prior written
      consent of the Secured Party, assign any of its rights or obligations hereunder
      to any person or entity. All agreements, representations and warranties made
      herein by the Borrower shall survive the execution and delivery of this Security
      Agreement. This Security Agreement is a continuing one and all liabilities
      to
      which it applies or may apply under the terms hereof shall be conclusively
      presumed to have been created in reliance hereon.

    

    
      	11.  	
              GOVERNING
                LAW

            

    

    

    This
      Security Agreement and the rights and obligations of the parties hereunder
      shall
      be construed in accordance with and be governed by the laws of Switzerland.
      

    

    AS
      AGREED,

    

    

    BORROWER

    

    Benoit
      Telecom Holding, AG

    

    /s/:
      Domenika Huesser     

    Domenika
      Huesser

    Its:
      Managing
      Director                                              

    
 

    
      SECURED
        PARTY

    

     

    
      Elephant
        Talk Communications, Inc.

    

     

    

      /s/:
        Russelle Choi

      
        Russelle
          Choi

        
          Its:
            Chief Executive Officer

          
 

        

      

    

    
      
        
          
          

        

        
          -
            20 -

          
            

          

        

        
          
          

        

      

    

    Exhibit
      A

     

    
      	
              1.
Assets
                within the Benoit Telecom Holding Group
                of Companies

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              List of Telecom Licenses
                /
                Interconnections / Supplier contracts 

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License Netherlands Royal
                Telecom (OPTA) 

            	
               

            
	
               

            	
              Carrier (Pre)Select Code Neth: 1617
                (OPTA)

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select Code Austria:
                1009

            	
               

            	
               

            
	
               

            	
              Geographical numbers Austria
                (Vienna)

            	
               

            	
               

            
	
               

            	
              0800 /0900 numbers Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect Telekom Austria

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier contracts 1 (Telekabel, Mobilkom,
                Tele2, UTA Telekom, Telering)

            
	
               

            	
              Carrier contracts 2 (T-Mobile, Liwest,
                Etel, One GmbH, COLT)

            
	
               

            	
              Contract for 0800 / 0900

            	
               

            	
               

            	
               

            
	
               

            	
              4 x E1 ASD – FFM

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2 x E1 FFM – ZRCH

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              2 x E1 FFM – VIE

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Co-location Vienna 25m2

            	
               

            	
               

            	
               

            
	
               

            	
              Office Lease agreements with
                Immorent

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License
                Switzerland

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select Code Switzerland
                :
                10747

            	
               

            
	
               

            	
              0800/0900 numbers Switzerland

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect Swisscom

            	
               

            	
               

            	
               

            
	
               

            	
              INA contract for use 0800/0900 numbers
                database

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License tipo B
                Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Telecom License tipo C Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Carrier (Pre)Select Code Spain :
                1033

            	
               

            	
               

            
	
               

            	
              0800 /0900 numbers Spain

            	
               

            	
               

            	
               

            
	
               

            	
              Interconnect Telefonica

            	
               

            	
               

            	
               

            
	
               

            	
              45 Mbit/s MAD – BCL 15 year
                I.R.U.

            	
               

            	
               

            
	
               

            	
              Co-Location Barcelona 10m2

            	
               

            	
               

            	
               

            
	
               

            	
              Co-Location Madrid 10m2

            	
               

            	
               

            	
               

            

    

    

    

    
      
        
          
          

        

        
          -
            21 -

          
            

          

        

        
          
          

        

      

    

    
      	
              List of Customers Benoit
                Telecom
                Holding AG

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Retail

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1617 [NL]

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1033 [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              1009 [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonehome [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              10747 [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Whitelable CPS

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Royal Telecom [ESP]

            	
               

            	
               

            	
               

            
	
               

            	
              Hosting C(P)S

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              None

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Premium Rate

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Klikbonus [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Declaro Global Limited [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              MediaMatch [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              DialXS [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              VasCon [UK]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [CH]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Freephone / 0800

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              RVS Networks [AUS]

            	
               

            	
               

            	
               

            
	
               

            	
              RVS Networks [GER]

            	
               

            	
               

            	
               

            
	
               

            	
              Wholesale

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [NL]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [ESP]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [AUS]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [GER]

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Phonetone [CH]

            	
               

            	
               

            	
               

            	
               

            

    

    
 

    

    
      
        
          
          

        

        
          -
            22 -

          
            

          

        

        
          
          

        

      

    

     

    
      	
              List of
                Equipment

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Pcs

            	
              Description of Asset

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles S50 (Barcelona) 

            	
               

            	
               

            	
               

            
	
              7

            	
              Teles S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm. Rack etc ..
                (BCL)

            	
               

            	
               

            
	
              1

            	
              Teles S50 (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
              7

            	
              Teles S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm. Rack etc ..
                (MAD)

            	
               

            	
               

            
	
              1

            	
              Mux (Barcelona)

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Mux (Madrid)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office furniture

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office PC's

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles S50 (Vienna)

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles S8 cards

            	
               

            	
               

            	
               

            	
               

            
	
              1

            	
              Teles V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Various equipm. Rack etc ..
                (VIE)

            	
               

            	
               

            
	
              1

            	
              Teles S50 Zurich

            	
               

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles S8 cards (Redundancy)

            	
               

            	
               

            	
               

            
	
              2

            	
              Teles V8 Cards

            	
               

            	
               

            	
               

            	
               

            
	
              ++

            	
              Two stage dialling w. DTMF (ref
                switches)

            	
               

            	
               

            
	
               

            	
              Various equipm. Rack etc ..
                (ZRCH)

            	
               

            	
               

            
	
               

            	
              Servers VoIP (Spain)

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office Furniture various
                countries

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Office PC's and accessories various
                countries

            	
               

            
	
              Other

            
	
                   Future
                development on the Telecommunications network, the Customer Relationship
                Management 

                   system, the
                Rating System, the Billing System

            
	
                   All other
                equipment not mentioned in this Exhibit, including but not limited
                to
                existing but also future 

                   purchases
                of equipment.

            

    
      
        
        

      

      
        -
          23 -SECOND AMENDED AND
RESTATED REVOLVING CREDIT NOTE 

			
	Executed as of the 30th day of November	 	Amount $5,000,000.00 
	 2006 and delivered in Philadelphia, PA		

        FOR
VALUE RECEIVED AND INTENDING TO BE LEGALLY BOUND, the Undersigned (jointly and
severally, if more than one) promises to pay to the order of LASALLE BANK MIDWEST
NATIONAL ASSOCIATION (formerly known as Standard Federal Bank, National Association)
(hereinafter, together with any holder hereof, called “Lender”), at the
main office of Agent (as hereinafter defined), the principal sum of Five Million Dollars
($5,000,000.00) plus the aggregate unpaid principal amount of all loans and
advances made by Lender or Agent to the Undersigned (or any one of them, if more than one)
pursuant to and in accordance with Subsection 2(a) of the Loan
Agreement (as hereinafter defined) in excess of such amount, or, if less, the aggregate
unpaid principal amount of all loans and advances made by Lender to the Undersigned (or
any one of them, if more than one) pursuant to and in accordance with Subsection
2(a) of the Loan Agreement. The Undersigned (jointly and severally, if more
than one) further promises to pay interest on the outstanding principal amount hereof on
the dates and at the rates provided in the Loan Agreement from the date hereof until
payment in full hereof. 

        This
Note is referred to in and was delivered pursuant to that certain Loan and Security
Agreement dated June 26, 2002 among LaSalle Business Credit, LLC, successor by merger to
LaSalle Business Credit, Inc. (“Agent”), Lender, the Undersigned and the
Guarantors named therein (as amended by that certain First Amendment to Loan and Security
Agreement dated July 18, 2003, that certain Second Amendment to Loan and Security
Agreement dated June 18, 2004, that certain Third Amendment to Loan and Security Agreement
dated February 22, 2006, that certain Fourth Amendment to Loan and Security Agreement
dated of even date herewith and as it may be further amended, modified or supplemented
from time to time, together with all exhibits thereto, the “Loan
Agreement”), and evidences the Undersigned’s Liabilities in respect of
Revolving Loans. All terms which are capitalized and used herein (which are not otherwise
defined herein) shall have the meaning ascribed to such terms in the Loan Agreement. 

        The
outstanding principal balance hereunder and all accrued and unpaid interest thereon shall
be due and payable in full when and as provided for in the Loan Agreement. 

        The
Undersigned (and each one of them, if more than one) hereby authorizes the Agent to charge
any account of the Undersigned (and each one of them, if more than one) for all sums due
hereunder. If payment hereunder becomes due and payable on a Saturday, Sunday or legal
holiday under the laws of the United States or the Commonwealth of Pennsylvania, the due
date thereof shall be extended to the next succeeding Business Day, and interest shall be
payable thereon at the rate specified during such extension. Credit shall be given for
payments made in the manner and at the times provided in the Loan Agreement. It is the
intent of the parties that the rates of interest and other charges to the Undersigned
under this Note shall be lawful; therefore, if for any reason the interest or other
charges payable hereunder are found by a court of competent jurisdiction, in a final
determination, to exceed the limit which Agent or Lender may lawfully charge the
Undersigned, then the obligation to pay interest or other charges shall automatically be
reduced to such limit and, if any amount in excess of such limit shall have been paid,
then such amount shall be refunded to the Undersigned. 

        The
Undersigned (and each one of them, if more than one) waives the benefit of any law that
would otherwise restrict or limit Agent or Lender in the exercise of its right, which is
hereby acknowledged, to set-off against the Liabilities, without notice and at any time
hereafter, any indebtedness matured or unmatured owing from Agent or Lender to the
Undersigned (or any one of them). The Undersigned (and each one of them, if more than one)
waives every counterclaim (other than those that are not permitted to be brought in
separate actions) or setoff which the Undersigned (or any one of them) may now have or
hereafter may have to any action by Agent and/or Lender in enforcing this Note and/or any
of the other Liabilities, or in enforcing Agent’s and/or Lender’s rights in the
Collateral and ratifies and confirms whatever Agent and/or Lender may do pursuant to the
terms hereof and of the Loan Agreement and with respect to the Collateral and agrees that
neither Agent nor Lender shall be liable for any error in judgment or mistakes of fact or
law except for gross negligence or willful misconduct. 

        The
Undersigned, any other party liable with respect to the Liabilities and any and all
endorsers and accommodation parties, and each one of them, if more than one, waive any and
all presentment, demand, notice of dishonor, protest, and all other notices and demands in
connection with the enforcement of Agent’s and Lender’s rights hereunder. 

        The
loans evidenced hereby have been made and this Note has been delivered at Philadelphia,
Pennsylvania. THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE
COMMONWEALTH OF PENNSYLVANIA AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION,
EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING WITHOUT LIMITATION, THE LEGALITY OF THE
INTEREST RATES AND OTHER CHARGES, and shall be binding upon the Undersigned (and each one
of them, if more than one) and the Undersigned’s legal representatives, successors
and assigns (and each one of them, if more than one). If this Note contains any blanks
when executed by the Undersigned (or any of them, if more than one), the Agent or Lender
is hereby authorized, without notice to the Undersigned (or any of them, if more than one)
to complete any such blanks according to the terms upon which the loan or loans were
granted. Wherever possible, each provision of this Note shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this
Note shall be prohibited by or be invalid under such law, such provision shall be
severable, and be ineffective to the extent of such prohibition or invalidity, without
invalidating the remaining provisions of this Note. If more than one party shall execute
this Note, the term “Undersigned” as used herein shall mean all parties
signing this Note, and each one of them, and all such parties, their respective legal
representatives, successors and assigns, shall be jointly and severally obligated
hereunder. 

        To
induce the Lender to make, or continued to make, the loan evidenced by this Note, the
Undersigned (and each one of them, if more than one) (i) irrevocably agrees that, subject
to Agent’s and Lender’s sole and absolute election, all actions arising directly
or indirectly as a result or in consequence of this Note or any other agreement with the
Agent, or the Collateral, shall be instituted and litigated only in courts having situs in
the City of Philadelphia, Pennsylvania; (ii) hereby consents to the exclusive jurisdiction
and venue of any State or Federal Court located and having its situs in said city; and
(iii) waives any objection based on forum non-conveniens. IN ADDITION, AGENT, LENDER AND
THE UNDERSIGNED (OR ANY ONE OF THEM, IF MORE THAN ONE) HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THIS NOTE, THE LIABILITIES,
THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY THE UNDERSIGNED (OR ANY ONE OF THEM, IF
MORE THAN ONE), AGENT OR LENDER OR WHICH IN ANY WAY, DIRECTLY OR INDIRECTLY, ARISES OUT OF
OR RELATES TO THE RELATIONSHIP BETWEEN THE UNDERSIGNED, ON THE ONE HAND (OR ANY ONE OF
THEM, IF MORE THAN ONE), AND AGENT AND LENDER ON THE OTHER. In addition, the Undersigned
agrees that all service of process shall be made as provided in the Loan Agreement. 

2

        As
used herein, all provisions shall include the masculine, feminine, neuter, singular and
plural thereof, wherever the context and facts require such construction and in particular
the word “Undersigned” shall be so construed. 

        This
Second Amended and Restated Revolving Credit Note constitutes the decrease, amendment and
restatement of that certain Amended and Restated Revolving Credit Note dated June 18, 2004
in the face amount of Eight Million Five Hundred Thousand Dollars ($8,500,000.00) executed
by the Undersigned payable to the order of Lender (the “Prior Note”),
and, as such, is secured by all liens, security interests, assignments, pledges, rights
and remedies securing the Prior Note, and evidences all indebtedness previously advanced
and unpaid under the Prior Note. Nothing contained herein shall be deemed to constitute a
novation, termination, waiver, release, satisfaction, accord or accord and satisfaction of
the Prior Note or any indebtedness evidenced thereby. 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

3 

      
  IN WITNESS WHEREOF, the Undersigned, has executed this Note on the date above set forth. 

	 	 	MTS MEDICATION TECHNOLOGIES, INC.

       (formerly known as Medical Technology Systems, Inc. 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name/Title:	Michael P. Conroy, Vice President 

        and Chief Financial Officer
	 	 	 	 
	 	 	 	 
		 	Address:	 
	 	 	 	2003 Gandy Boulevard North

        Suite 800
St. Petersburg, FL  33702

	 	 	MTS PACKAGAING SYSTEMS, INC. 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name/Title:	Michael P. Conroy, Vice President 
	 	 	 	 
	 	 	 	 
		 	Address:	 
	 	 	 	2003 Gandy Boulevard North

        Suite 800
St. Petersburg, FL  33702

FOR LENDER USE ONLY 

Officer’s Initials:  
__________  
Approval:  __________ 

4

	STATE OF ________________________ 	: 
	 	SS:
	STATE OF ________________________  	: 

        On
this, the 30th day of November,  2006, before me, a notary public, the undersigned
officer,  personally appeared Michael P. Conroy,  who  acknowledged  himself/herself  to
be the  Vice  President  and  CFO of MTS  MEDICATION  TECHNOLOGIES,  INC.,  a  Delaware
corporation,  and that he/she as such officer of such corporation,  being authorized to
do so executed the foregoing instrument for the purposes therein contained, by signing
the name of the corporation by himself/herself as such officer. 

        IN
WITNESS WHEREOF, I hereunto set my hand and official seal. 

_________________________

Notary Public                 
             
My Commission Expires:      
     

	STATE OF ________________________ 	: 
	 	SS:
	STATE OF ________________________  	: 

        On
this, the 30th day of November,  2006, before me, a notary public, the undersigned
officer,  personally appeared Michael P. Conroy,  who acknowledged  himself/herself  to
be the Vice President of MTS PACKAGING SYSTEMS,  INC., a Florida  corporation,  and that
he/she as such officer of such  corporation,  being  authorized to do so executed the
 foregoing  instrument  for the purposes  therein contained, by signing the name of the
corporation by himself/herself as such officer. 

        IN
WITNESS WHEREOF, I hereunto set my hand and official seal. 

_________________________

Notary Public                 
             
My Commission Expires:

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