<PAGE>   1

                                                                   Exhibit 10.4

                              EMPLOYMENT AGREEMENT


         This Agreement executed as of the 15 of May 1999, by and between
Progressive Telecommunications Corporation (hereafter referred to as the
"Company"), a Florida Corporation with its offices located at 601 Cleveland
Street, Suite 930 Clearwater, Florida 33755 and James "Chris" Watson (hereafter
referred to as the "Employee") located at 4417 S.E. 16th Place, Suite 11, Cape
Coral, Florida 33904, the Corporate Employee Address.

                                   WITNESSETH

         Whereas, the Employee is currently the Executive Vice President, Chief
Technical Officer and a Member of the Board of Directors of CCC Communications
Corporation (which is merging with the Company) under an Employment Agreement
and has served in this executive capacity since its formation, and;

         Whereas, the Company acknowledges and recognizes the value of the
Employee's services which are special, unique and of extraordinary character
with expertise desired by the Company; and

         Whereas, the Company desires to employ, retain and make secure for the
Company the services, abilities and expertise of the Employee for a minimum
period of three years from the effective date of this Agreement; and

         Whereas, both the Company and the Employee desire to embody the terms
and conditions of employment into a written agreement;

         NOW THEREFORE, in consideration of the premises and for other good and
valuable consideration, the adequacy and receipt of which is hereby
acknowledged, the Company and the Employee do hereby agree as follows:

1.       EMPLOYMENT

         The Company hereby agrees to employ the Employee as Executive Vice
President Chief Technical Officer, Member the Board of Directors and the
Employee hereby accepts such Employment upon the terms and conditions
hereinafter set forth.

2.       TERM

         Subject to the provisions of this Section hereof the term of
employment shall commence on May 15, 1999 (Commence Date) and continue for an
initial period of three (3) years or until May 15, 2002. Following completion
of the Initial Term, the Employee's term of employment shall be renewed, if not
renegotiated, for two year terms automatically, unless either party notifies
the other, in writing, of its intent not to renew at least ninety (90) days
prior to this Agreement's expiration.

3.       COMPENSATION AND BENEFITS

         For the services rendered by the Employee hereunder, the Company shall
be obligated to the Employee under the following compensation schedule:

         3.1  Fixed Compensation

              Employee shall receive (from the Company) a signing bonus of
              $50,000.00 and 50,000 shares of stock at a par value of .01 cent
              per share. Employee shall receive a minimum of $120,000.00 in
              annual salary paid in bi-weekly installments of $4561.53 or
              weekly installments of $2,500.00. This shall be considered the



<PAGE>   2

              minimum salary to the Employee. The Company's Board of Directors
              may, at its discretion, increase the salary but at no time or in
              any event shall the above referenced salary be reduced.


        3.2   Incentive Compensation

              Such incentive compensation ("Incentive Compensation") will be
              paid to the Employee in the form of a cash bonus or otherwise as
              the Board of Directors of the Company or the Board's Compensation
              Committee may grant executive employees of the Company from time
              to time. In addition, the Employee is permanent participant in
              the Company's executive bonus pool (the "Bonus Pool").Pursuant to
              the Bonus Pool, the Company's Board of Directors will distribute
              $100,000.00 and 100,000 shares of the Company's Common Stock
              divided amongst the executive participants, at such time the
              Company achieves each of the following milestones:

              (a)  One-Million ($1,000,000.00) Dollars in gross revenues billed
                   in any given calendar month;

              (b)  Two-Million ($2,000,000.00) Dollars in gross revenues billed
                   in any given calendar month;

              (c)  Three-Million ($3,000,000.00) Dollars in gross revenues
                   billed in any given calendar month;

              (d)  Four-Million ($4,000,000.00) Dollars in gross revenues
                   billed in any given calendar month;

              (e)  Five-Million ($5,000,000.00) Dollars in gross revenues
                   billed in any given calendar month;

              It is agreed by the parties, the Company will compensate the
              Employee for interactive voice integrated with local dial tone
              service methods with royalties. The Company such pay a royalty of
              2% of net billing, exclusive to the integrated local voice
              telephone system; such royalties will be perpetual even after
              termination of this agreement for a period of seven years. Such
              royalty's payment shall continue even if the system is sold or
              sub-licensed to other companies.

         3.3  Other Benefits

              In addition to the above reference fixed and incentive
              compensation which the Employee shall receive, pursuant to
              subsections 3.1 and 3.2 of Section 3, the Employee shall receive
              the reimbursements, compensation and benefits:

              (a)  Expenses. Employee is authorized hereunder to incur
                   reasonable expenses for promoting the business and affairs
                   of the Company, including, without limitation by
                   specification, expenses for travel, entertainment, lodging
                   and other similar items. The Company shall promptly
                   reimburse the Employee for all such expenses upon
                   presentation, as expenses are incurred, by the Employee to
                   the Company of an itemized account of such expenditures.

              (b)  The Company shall maintain either a whole-life life
                   insurance policy or policies or a minimum deposit life
                   insurance policy or policies (or the equivalent thereof) on
                   the life of Employee having an aggregate face value of not
                   less than $250,000.00 (collectively, the "Policy"). In the
                   event that the Company purchases minimum deposit life
                   insurance and this Agreement is terminated with or without
                   cause as defined herein prior to the time that the insurance
                   policy has been fully paid, the Company agrees to continue
                   to make the premium payments on the policy until it is fully
                   paid. The proceeds of the policy shall be fully payable to
                   any beneficiary or beneficiaries designated at any time and
                   from time to time by the Employee, provided however, that
                   upon death of the Employee, the aggregate amount of premiums
                   paid on the Policy by the Company is repaid to the Company
                   by the beneficiary(s) of the Employee designated in the
                   Policy. Employee, if requested by the Company, shall take
                   all necessary steps, including if requested, the naming of
                   the Company as a Co-Beneficiary of the Policy to the extent
                   of the total amount of the premiums paid thereon, in order
                   to insure Employee's compliance with this covenant. In no
                   event shall premiums on any policy or policies aggregate
                   more than $10,000.00 per year. The policy shall be in
                   addition to any key man policy or group term policy or
                   policies insuring the life of the Employee maintained by the
                   Company for the benefit of the Company.



<PAGE>   3

              (c)  Automobile. The Company shall provide Employee with an
                   automobile compatible with his position and responsibility
                   hereunder or, in lieu thereof, at the option of the
                   Employee, a monthly stipend equal to the cost of leasing and
                   insuring such an automobile. The Company's monthly
                   obligation under this paragraph shall not exceed $500.00 per
                   month excluding gas and maintenance.

              (d)  Medical Benefits. The Company shall provide and pay for in
                   its entirety the Employee with such family health and
                   medical benefits as the Company accords its Executive
                   officers.

              (e)  Vacations. Employee shall be entitled during each calendar
                   year, during the period of employment, to four weeks
                   vacation beginning during the first year of Employment and
                   every year thereafter. The vacation entitlement is
                   cumulative or may be compensated in a monetary manner. The
                   Employee is entitled to compensation during such vacation
                   periods.

              (f)  Sick Time. Employee is entitled, if needed, 20 fully
                   compensated sick per calendar year, defined as calendar year
                   January to December.

              (g)  Working Facilities. The Company shall furnish Employee with
                   a private office, secretarial help and other facilities,
                   services and staff as are suitable to his position to ensure
                   adequate performance of the duties of the position the
                   Employee holds in the Company.


         3.3  The Company agrees that nothing contained in this Agreement is
              intended to or shall be deemed to be granted to the Employee in
              lieu of, or as a limitation upon, any rights and privileges which
              the Employee may otherwise be entitled to as an executive
              employee of the Company under any retirement, pension, insurance,
              hospitalization or other employee benefit plan of any type
              (including, without limitation by specification, any incentive,
              profit sharing, bonus or stock option plan), which may now be in
              effect or which may hereafter be adopted by the Company, it being
              understood that the Employee shall have the same rights and
              privileges to participate in such Company benefit plans as any
              other executive employee of the Company.

4.       Duties, Time And Effort.

         4.1  During the term of Employment hereunder, Employee, subject to the
              supervision and control of the Board of Directors of the Company
              shall supervise all aspects of the Company. Employee shall serve
              the Company as the Chief Technical Officer, Executive Vice
              President and Board Member of Progressive Telecommunications
              Corporation. In addition, the Employee shall serve as Chief
              Technical Officer, Executive Vice President and Member of the
              Board for the subsidiaries CCC Communications and StormTel as is
              so requested by the Board of Directors. The Company and Employee
              agree that Employee shall serve in these capacities throughout
              the period of employment agreement as outlined herein.

         4.2  Employee agrees to devote full-time attention and effort to the
              business of the Company during the term of employment hereunder
              and to serve as a member of the Company's Board of Directors. The
              Employee shall perform his duties faithfully, diligently and to
              the best of his ability. Employee, at all times, shall use his
              best efforts to preserve, protect, enhance and maintain the
              trade, business and goodwill of the Company.

5.       Covenants and Restrictions.

         Subject to the provisions 8.6 hereof, Employee covenants that, except
in carrying out his duties hereunder, during the term of employment and for a
period of one (1) year following the date of termination of employment
hereunder:



<PAGE>   4

         5.1  Without express written consent of the Board of Directors,
              Employee shall not directly or indirectly, participate or engage
              in, assist render employment services to, become associated with,
              work for, or otherwise become in any way or manner connected with
              the ownership, management, operation, or control of, any
              business, which is competing with Companies primary services and
              products that would take from the assets or products or
              confidential and proprietary information of the Company. This
              clause in no way is to be construed as industry ban but rather as
              a ban from utilizing contacts, products developed, procedures and
              other proprietary information.

         5.2  Employee shall not knowingly provide or solicit to provide to any
              person or individual (I) any goods or services which are
              competitive with those provided by the Company or which would be
              competitive with the goods and services that the Company has
              planned to provide; or (ii) any goods or services to any customer
              of the Company. The term "Customer" shall mean any person or
              company to whom the Company has provided goods or services to
              within the previous twelve (12) month period prior to termination
              of Employee's employment hereunder. Notwithstanding anything
              herein to the contrary, no limitation shall be imposed on
              Employee hereunder with respect to any goods or services that the
              Company has planned to provide and which are not actually being
              provided at the time of the termination of Employee's employment.

         5.3  Employee agrees that he shall not divulge to others, nor shall he
              use to the detriment of the Company or in any business or process
              of manufacture competitive with or similar to any business or
              process of manufacture engaged in by the Company or any of its
              subsidiaries or affiliated companies, at any time during
              employment with the Company or thereafter, any confidential or
              trade secret information obtained during the course of employment
              with the Company relating to sales, salesman, sales volume or
              strategy, customers, formulas, processes, methods, machines,
              manufactures, compositions, ideas, improvements or inventions
              belonging to or relating to the business of the Company, or its
              subsidiary or affiliated companies if accepted by the Company for
              use.

         5.4  Employee shall neither solicit, seek to solicit any of the
              Company's personnel in any capacity whatsoever nor shall Employee
              induce or attempt to induce any of the Company's personnel to the
              employ of the Company to work for Employee or otherwise.

         5.5  Employee acknowledges that a breach of any of the restrictive
              covenants contained in Section 5 may cause irreparable damage to
              the Company for which remedies at law would be inadequate.
              Accordingly, if Employee breaches or threatens to breach any of
              the provisions of this Section 5, the Company shall be entitled
              to appropriate injunctive relief, including without limitation,
              preliminary and permanent injunctions in any court of competent
              jurisdiction, restraining Employee from taking any action
              prohibited hereby. This remedy shall be in addition to all other
              remedies available to the Company at law or equity. If any
              portion of this Section 5 is adjudicated to be invalid or
              unenforceable, this Section 5 shall be deemed amended to delete
              there from the portion so adjudicated, such deletion to apply
              only with respect to the operation of this Section 5 in the
              jurisdiction in which such adjudication is made.

6.       Proprietary Property.

         Subject to the provisions of Section 8.6 hereof:

         6.1  The Employee agrees that any and all inventions or improvements
              as well as any and all ideas, creations, know-how and methods of
              applying and putting into practice any inventions or improvements
              (all of the foregoing being hereinafter called "Proprietary
              Property" and being more fully defined in subsection 6.2 below)
              that are created, developed, conceived of or



<PAGE>   5

              discovered either (I) by the Employee (solely or jointly with
              others) in the course of employment, on Company time, with
              Company materials or facilities; or (ii) by and for the Company;
              or (iii) by any independent individual of business acquired by
              the Company. The Employee shall not, without limitation as to
              time or place, use any Proprietary Property except on Company
              business, during or after his period of employment (in accordance
              with Section 5), nor disclose the same to any other person or
              individual except for disclosure on Company business or as may be
              required by law. It is agreed by the parties, the Company will
              compensate the Employee for ideas, creations and methods with
              royalties under this agreement.

         6.2  As used in this Agreement "Proprietary Property" means
              proprietary technical information not known by the Employee prior
              to employment or information not generally known in the Company's
              industry and which is disclosed to Employee or known or developed
              by Employee as a consequence of or through employment with the
              Company.

         6.3  During or subsequent (in accordance with Section 5) to the
              Employee's employment by the Company, Employee shall not,
              directly or indirectly, lecture upon, publish articles
              concerning, use, disseminate, disclose, sell or offer for sale
              any Proprietary Property without the Company's prior written
              consent.

7.       Disability.

         7.1  Subject to the terms of Section 7.1, in the event Employee
              becomes temporarily disabled during the term of this Agreement,
              Employee shall continue to receive one-hundred percent (100%) of
              the fixed compensation to which Employee was entitled at the time
              of disability for a maximum period of six (6) months. Beginning
              on the seventh month of disability by Employee the fixed
              compensation shall be reduced to fifty percent (50%) and be
              available for six (6) more calendar months. The terms "disabled"
              and "disability" shall mean disability which, in the opinion of a
              doctor reasonably satisfactory to the Company, renders the
              Employee unable to perform his duties hereunder. The date such
              disability commences shall be the date Employee first absents
              from work during a continuous period of disability as so
              determined by the doctor herein above set forth. The term
              "temporary disability" shall mean a disability which is not a
              permanent disability as defined in Section 7.2 below.

         7.2  Notwithstanding anything to the contrary set forth in this
              Agreement, the Company may terminate this Agreement upon no less
              than ninety (90) days prior written notice to Employee after six
              (6) full continuous calendar months following "permanent
              disability" (as defined below) of Employee and the payment to
              Employee of all unpaid accrued compensation which the Company
              owes to the Employee for the period of employment prior to
              termination. In such event, the Employee shall be entitled to
              receive from the Company or from the Company's disability
              insurance carrier disability compensation in an amount which,
              when added to all social security benefits received or to be
              received by Employee as a result of the permanent disability,
              equal to One-Hundred Thousand ($100,000.00) per annum; provided,
              however, in no event shall the premiums paid by the Company for
              maintaining the disability policy (as such term is defined below)
              exceed fifteen thousand ($15,000.00) dollars per annum. The
              Employee's entitlement to disability benefits shall be pursuant
              to the terms of this Agreement and the disability insurance
              policy (the "Disability Policy") to be obtained and maintained by
              the Company, naming the Employee as the insured thereunder.
              Notwithstanding the foregoing, in the event Employee's disability
              is either not covered under the Disability Policy or Employee is
              covered for less than One-Hundred ($100,000.00) Thousand dollars
              per annum or if coverage under the Disability Policy terminates
              during the Period of disability for any reason whatsoever, then
              for the balance of Employee's then current term of employment the
              Company will pay Employee One-Hundred ($100,000.00) Thousand
              dollars per annum or, if Employee is receiving benefits under the
              Disability Policy,



<PAGE>   6

              the Company will supplement the insurance payments which Employee
              is entitled to receive so that Employee receives a total of
              One-Hundred Thousand ($100,000.00) dollars per annum and,
              thereafter, the Company will pay to Employee, or supplement the
              benefits Employee receives under said Disability Policy, so that
              Employee receives the lesser of (I) One-Hundred Thousand
              ($100,000.00) dollars per annum; or (ii) fifty (50%) percent of
              Employee's Fixed Compensation until Employee attains the age of
              sixty-five (65). Once the Employee attains the age of sixty-five
              (65), the Company shall have no further obligations to make
              disability payments to Employee or to otherwise supplement the
              amounts Employee receives under the Disability Policy except to
              the extent that it is the Company's then current policy to
              continue to cover or provide benefits to permanently disabled
              executive officers beyond the age sixty-five (65).
              Notwithstanding anything to the contrary set forth in this
              Section 7.2, in the event the Employee reassumes the full
              Performance of his duties hereunder prior to such termination
              notice, the Employee shall be entitled to one-hundred (100%)
              percent of the total compensation from the date of the Employee's
              return. In no event shall Employee be entitled to renew the term
              of the Employment for the Extension Terms or any Annual Term if
              the Employee becomes permanently disabled during either the
              Initial Term or Extension Term. Employee shall be deemed
              "Permanently Disabled" for purposes hereof if either: (I)
              Employee has been temporarily disabled for a period in excess of
              730 consecutive days; or (ii) the insurance company issuing the
              Disability Policy determines that the Employee is permanently
              Disabled and will make payments pursuant to the Disability
              Policy; or (iii) a physician, mutually acceptable to both the
              Company and the Employee, determines on the basis of medical
              evidence that the Employee is totally disabled, mentally or
              physically, so as to be , prevented from engaging in further
              employment by the Company in the capacity in which Employee was
              engaged prior to such disability and that such disability will be
              permanent and continuous during the remainder of the life of
              Employee. In the event a physician cannot be selected who is
              acceptable to both the Company and the Employee, each party shall
              select a physician who shall select a third physician whose
              decision shall be final. In the event of a dispute or the
              inability of the physicians selected by the Company and the
              Employee to select a third physician, a physician shall be
              selected by the American Arbitration Association and the decision
              of such physician shall be final.

         7.3  Payments of disability compensation under Sub-Sections 7.1 and
              7.2 above shall be reduced by the amounts actually received by
              the Employee under any policy or policies of disability, health,
              accident or wage continuation insurance paid for by the Company.

8.       Termination; Severance; Death.

         8.1  The Employee's employment shall terminate upon death, and may be
              terminated, at the option of (I) the Employee, (a) upon the
              conclusion of the Initial Term, or any Annual Term upon proper
              notice to the Company, or (b) for documented breach of this
              Agreement, or (ii) the Company upon proper written notice to the
              Employee, (a) at the conclusion of the Initial Term or any Annual
              Term, (b) as a result of permanent disability as defined in
              Section 7.2 hereof, or (C) for cause. Termination "for cause"
              shall mean termination only in the event the Employee is guilty
              in a court of competent jurisdiction with respect to Section 5,
              (I) intentional failure to perform duties hereunder, (ii) any act
              of intentional dishonesty which has material adverse effect to
              the Company's business.

         8.2  If Employee's employment is terminated by the Company for
              documented cause, as referenced in Section 8.1C.

         8.3  If Employee's employment is terminated by the Employment decision
              to act as a consultant to the Company or as a result of the
              Employee's permanent disability, the Company shall remain
              obligated to pay Employee the entitlements set forth in Section 7
              of this Agreement.



<PAGE>   7

         8.4  If Employee's employment is terminated by the Company's
              determination not to renew the employment term at the conclusion
              of either the Initial Term or any Annual Term, THE Company shall
              be obligated to pay Employee, within sixty (60) days of such
              termination, a lump sum severance payment in an amount equal to
              the product derived by multiplying each year of the Employee's
              employment with the Company (commencing with calendar year 1999)
              times One-Hundred Thousand ($100,000.00) Dollars.

         8.5  If Employee's employment is terminated by the Company during the
              Initial Term or any Annual Term, the Company shall be obligated
              to pay Employee, within sixty (60) days of such termination, a
              lump sum severance payment in an amount equal to the aggregate
              amount of the Employee's Base Salary for the remainder of the
              Initial Term or any Annual Term as the case may be, plus the
              product derived by multiplying each year of the Employee's with
              the Company (commencing with the calendar year 1999) times
              Seventy Five Thousand ($75,000.00) Dollars.

         8.6  If the Employee dies during the term of the employment hereunder,
              the Company shall promptly pay to the Employee's estate or
              promptly distribute to the beneficiary or beneficiaries named by
              the Employee all life insurance proceeds under the Policy
              referred to in Section 3.3(b) hereof (if received by the Company
              for any reason) as well as any term life insurance policy or
              policies with the exception of any key-man policy which the
              Company maintained on the life of and for the benefit of the
              Employee; provided, however, all other Company fringe benefits
              shall cease upon Employee's death.

         8.7  Notwithstanding anything to the contrary set forth in this
              Agreement, the Employee's covenants set forth in Sections 5 and 6
              hereof shall not apply with respect to and shall not be
              enforceable against the Employee, in the event the Employee's
              employment is terminated by the Company for any reason other than
              those reasons expressly set forth in Section 8.1 hereof.

9.       Arbitration

         Any dispute, controversy or claim arising out of or pursuant to this
Agreement or the breach hereof shall be settled by arbitration in the City of
Clearwater, County of Pinellas and State of Florida. Such arbitration shall be
effected by arbitrators selected as hereinafter provided and shall be conducted
in accordance with the Rules, existing at the date thereof, of the American
Arbitration Association. The dispute, controversy or claim shall be submitted
to three arbitrators, one arbitrator to be selected by the Company, one
arbitrator to be selected by the Employee and the third arbitrator to be
selected by the two so selected by the Company and Employee, or if they cannot
agree on a third, by the American Arbitration Association. In the event that
either the Company or Employee within one (1) month after notification of any
demand for arbitration hereunder, shall not have selected its arbitrator and
given notice thereof to the other party, the arbitrator for such party shall be
selected by the American Arbitration Association. Meetings of the arbitrators
shall be held in Clearwater, Florida at such place or places as may be agreed
upon by the arbitrators. The results of final determination of any such
arbitration proceedings shall be binding on the parties hereto and a judgment
may be entered in any court having jurisdiction.

10.      Severability Of Provisions

         In the event any court of competent jurisdiction determines that any
term or provision of this Agreement shall be unenforceable, the invalidity of
such term or provision shall not affect the validity of the remainder hereof.

11.      Notices

         Any notice required or permitted to be given pursuant to the
provisions hereof shall be deemed given when sent by registered or certified
mail, return receipt requested, to the Company or Employee at



<PAGE>   8

their respective addresses set forth above or to such other address as may be
given by similar notice by the Company or Employee.

12.      Waiver Of Breach

         The waiver by the Company or Employee of a breach of any provision
hereof by the other shall not operate or be construed to operate as a waiver by
such party of any subsequent breach by the other of the same or any other
provision hereof.

13.      Entire Agreement, Modification and Construction.

         This Agreement contains the entire understanding between the Company
and Employee with respect to the subject matter hereof. The terms and
conditions hereof may be changed only by agreement in writing signed by the
Company and the Employee. This Agreement shall be governed by and construed
with the laws of the State of Florida, applicable to contracts made and to be
performed therein, without giving effect to the principles thereof relating to
conflicts of law.



IN WITNESS WHEREOF, the Company has caused this Agreement to be signed and its
seal affixed by a duly authorized officer and the Employee has signed this
Agreement as the day and year first written above.


Progressive Telecommunications Corporation:     Employee:


/s/ Barry L. Shevlin                            /s/ James C. Watson
---------------------------------               -------------------------------
Authorized Corporate Signature                  Employee Signature


Barry L. Shevlin                                James C. Watson
---------------------------------               -------------------------------
Print Name & Title                              Print Name


5/21/99                                         XXX-XX-XXXX         5/15/99
---------------------------------               -------------------------------
Date                                            SS #                Date