Confidential Treatment Requested: Confidential portions of this document have been redacted and have been filed separately with the Commission. CONFIDENTIAL TERM SHEET BETWEEN CANTATA TECHNOLOGY, INC. AND INTERMETRO COMMUNICATIONS, INC. May 2, 2006

Exhibit 10.7

Confidential Treatment Requested:

Confidential portions of this document have been redacted and have been filed separately with the Commission.

CONFIDENTIAL TERM SHEET

BETWEEN

CANTATA TECHNOLOGY, INC.

AND

INTERMETRO COMMUNICATIONS, INC.

May 2, 2006

This proposal (the “Term Sheet”) summarizes the principal terms with respect to a business relationship between Cantata Technology, Inc. and its affiliates and subsidiaries (collectively, “Cantata”), formerly known as Excel Switching Corporation and Brooktrout Technology, and InterMetro Communications, Inc. (“InterMetro”). Both parties agree in good faith that appropriate documents in final form will be executed regarding the subject matter of this Term Sheet and will contain all other essential terms of an agreed upon transaction (the “Definitive Agreement”).

Purpose/Scope

Cantata and InterMetro are hereby entering into a strategic agreement (the “Strategic Agreement”) for the implementation of Cantata equipment into InterMetro’s extensive nationwide network (the “Network”) through the deployment of networking equipment and technology (the “Equipment”) provided by Cantata. The parties agree that the term of the Strategic Agreement shall commence on the date of this Term Sheet and terminate upon the signing of the Definitive Agreement. During the term of the Strategic Agreement, InterMetro may deliver purchase orders to Cantata as set forth below. Purchases pursuant to such purchase orders shall be subject to the terms of this Term Sheet and of Cantata’s Standard Terms and Conditions for Excel and Cantata Product Lines, attached hereto as Exhibit A. In the event of any conflict between the terms of this Term Sheet and the Standard Terms and Conditions, the terms of this Term Sheet shall apply. Upon the execution of the Definitive Agreement, all purchases shall be subject to the terms of the Definitive Agreement.

The following outlines the terms of the Strategic Agreement:

Terms of the Proposed Relationship

Cantata Responsibilities		During the term of the Strategic Agreement, Cantata will make available to InterMetro an aggregate amount of Equipment that includes:
		(1)     [***]

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		(2)    [***]
		Upon InterMetro’s request and its purchase of [***] from Cantata, Cantata will provide [***].
		If Cantata develops a larger capacity version of the [***], InterMetro will be able to purchase the larger version of the equipment under the Strategic Agreement at terms to be mutually negotiated in good faith by both parties.
		Upon receiving proper written notice from InterMetro, Cantata will deliver the Equipment to an InterMetro specified destination within ten (10) business days from receipt. All costs associated with the delivery of Equipment will be directly paid by InterMetro or passed through to InterMetro at cost by Cantata, with the exception of shipments related to the replacement of defective equipment, which will be borne by Cantata.
		[***]
		All Equipment delivered by Cantata will be new and in proper working condition. Any Equipment found to be defective within the term of the Equipment’s Support Service term will be replaced by Cantata subject to the terms of the Support Agreement and the replacement Equipment will be delivered to an InterMetro specified destination within [***] of receipt of proper written notice by InterMetro.
InterMetro Responsibilities		InterMetro will, from time to time, order specified quantities of the Equipment with advance written notice to Cantata (each an “Equipment Order”). InterMetro will make an initial Equipment

[***] Confidential material redacted and filed separately with the Commission.

Confidential Term Sheet 2

		Order of [***] upon execution of the Strategic Agreement. Unless otherwise agreed to by both parties in writing, InterMetro will have the right to order up to [***] within any calendar month.
		[***]
[***]		[***]
Exclusive Rights		Cantata will provide InterMetro: (1) a right of first refusal to [***], and (2) the exclusive right to [***]. Additionally, [***], Cantata may not offer or provide [***].
Economic Value		Listed below are the Economic Values that pertain to each Equipment Order under this Strategic Agreement:
		[***]
		[***]
		[***]
Purchase Price		The Purchase Price for each piece of Equipment will be determined based upon the purchase option selected by InterMetro at the time of each Equipment Order.
[***]		[***]

[***] Confidential material redacted and filed separately with the Commission.

Confidential Term Sheet 3

		[***]
		If during the term of this Strategic Agreement, Cantata sells any Equipment to a third party under substantially similar terms, conditions, and quantities when considered in the aggregate, at a price below the then current Economic Value provided for under the Strategic Agreement (a “Threshold Price”), the Economic Value for [***] will be adjusted to be the new Threshold Price for [***].
[***]		[***]
[***]		[***]

[***] Confidential material redacted and filed separately with the Commission.

Confidential Term Sheet 4

[***]

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Confidential Term Sheet 5

[***]		[***]
InterMetro Cash Payments		If subsequently agreed by both parties, any cash payment that is to be made by InterMetro to Cantata under the Strategic Agreement may be made in the form of InterMetro stock. The value of such stock will be equal to the price per common share, or common share equivalent, paid by investors in InterMetro’s most recent round of financing if InterMetro is privately held, or the 30 day average trading price for InterMetro common stock if InterMetro is public.
[***]		[***]
Term		The term of the Strategic Agreement will be for [***] (the “Initial Term”). At the end of the Initial Term:
		(1)     Cantata will no longer be required to provide InterMetro with Equipment per the terms of the Strategic Agreement;
		(2)     InterMetro will no longer be able to order Equipment from Cantata per the terms of the Strategic Agreement; and
		(3)     [***]
Press Releases and
		Authorized Use of Name Neither party may use the other party’s name or trademarks, or issue any publicity or make any public statements concerning the other party or the existence or content of this Strategic Agreement, without the other party’s prior

[***] Confidential material redacted and filed separately with the Commission.

Confidential Term Sheet 6

written consent after the other party has reviewed the proposed publicity material and any corrections or modifications have been incorporated. Notwithstanding, both parties agree to issue a joint press release related to the parties entering into the Strategic Agreement within 30 days of the execution of the Strategic Agreement.

Dated as of this 2nd day of May 2, 2006.

CANTATA TECHNOLOGY, INC.				INTERMETRO COMMUNICATIONS, INC.
x    /s/    XXXXX XXXXXXX				x    /s/    XXXXXXX XXXX
FOR CANTANA TECHNOLOGY, INC.				FOR INTERMETRO COMMUNICATIONS, INC.

XXXXX XXXXXXX				XXXXXXX XXXX
PRINTED NAME				PRINTED NAME

CQO & VP Operations				CEO
TITLE				TITLE

2 May 2006				May 2, 2006
DATE				DATE

ADDRESS: ADDRESS:

Confidential Term Sheet 7