<PAGE>

                                                                    EXHIBIT 10.7

                             EMPLOYMENT AGREEMENT

          This Employment Agreement (the "Agreement") is made as of February 1,
1999, by and between Shbang! Inc., a Texas corporation (the "Company"), and Kent
Savage ("Employee").

          WHEREAS, the Company desires to obtain the services of Employee, and
Employee desires to provide services to the Company, in accordance with the
terms and conditions of this Agreement;

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Employee agree as
follows.

          1.  Employment.  Effective on the Effective Date (as defined in
Section 2) and subject to the terms and conditions of this Agreement, the
Company agrees to employ Employee as its Chief Executive Officer and President,
and Employee agrees to perform the duties associated with that position
diligently and to the reasonable satisfaction of the Company's President and
Board of Directors.  From the Effective Date until termination of this
Agreement, Employee will devote his full business time, attention and energies
to the business of the Company.  Employee will report to the Board of Directors
of the Company and will comply with the policies and guidelines established by
the Company's Board of Directors from time to time.

          2.  Term and Termination.  Employee will be employed under this
Agreement for an initial term of two years (the "Initial Term"), beginning on
the date of the Agreement (the "Effective Date").  This Agreement shall renew
for successive one year periods after the completion of the Initial Term unless
either party gives written notice of termination at least 30 days prior to the
expiration of the Initial Term or any renewal term.  Notwithstanding the
foregoing, either party may terminate this Agreement at any time, with or
without cause, by giving 30 days written notice of termination to the other
party, and upon termination, neither party will have any continuing obligation
to the other party, except as follows: (a) if the Company terminates this
Agreement without Cause (as defined below) prior to the end of the first year of
the Initial Term, then the Company will be obligated to continue paying
Employee's base salary and employee benefits pursuant to Section 4 hereof for a
period of six (6) months after such termination; and (b) the provisions of
Sections 5, 6 and 7 hereof will survive any termination of this Agreement for
any reason in accordance with their terms.  As used in this Agreement,
termination for "Cause" shall mean any termination of Employee for (a) refusal
to perform duties assigned, or disobedience of orders and directives issued to
Employee; (b) violation of any rule or regulation of which Employee has notice
and that may be established from time to time for the conduct of the Company's
business, (c) unlawful misconduct by Employee, including, without limitation,
the commission of an act of fraud or embezzlement against the Company or
commission of a crime involving moral turpitude, (d) consistent willful
misconduct or negligence in performing Employee's duties hereunder, (e) breach
of fiduciary duty in connection with Employee's employment by the Company or (f)
a breach of any of the terms of this Agreement.

          3.  Compensation.  Beginning on the Effective Date and thereafter
during the term of Employee's employment, the Company will pay Employee a base
salary at the rate of

                                       1
<PAGE>

$195,000 per year, payable biweekly or semi-monthly in accordance with the
payroll practices of the Company in effect from time to time. Such base salary
shall be subject to review and potential adjustment annually, in accordance with
the compensation policies of the Company in effect from time to time. Employee
shall also, during the term of his employment hereunder, be eligible for an
annual discretionary incentive bonus of up to 15% of Employee's base salary,
such bonus to be awarded in the discretion of the Company in accordance with the
bonus policies established by the Company from time to time. All of Employee's
compensation under this Agreement will be subject to deduction and withholding
authorized or required by applicable law.

          4.  Employee Benefits.  Beginning on the Effective Date and thereafter
during the term of this Agreement, the Company will provide to Employee such
fringe benefits, perquisites, vacation and other benefits that the Company
provides to its similarly situated employees.  The Company will reimburse
Employee for reasonable out-of-pocket business expenses incurred and documented
in accordance with the policies of the Company in effect from time to time.

          5.  Assignment of Intellectual Property Rights.

               (a) In consideration of the Company's agreement to employ
     Employee and the receipt by the Employee of Confidential Information,
     Employee hereby assigns to the Company all of his rights in all
     Intellectual Property which Employee makes or conceives, whether as a sole
     inventor or as a joint inventor, whether made within or outside working
     hours or upon the premises of the Company or elsewhere, during Employee's
     employment with the Company, its subsidiaries or affiliates.  This
     assignment shall not apply to Intellectual Property that Employee has an
     obligation to assign to a former employer. "Intellectual Property" means
     any information of a technical and/or business nature such as ideas,
     discoveries, inventions, trade secrets, know-how, and writings and other
     works of authorship which relate in any manner to the actual or anticipated
     business or research and development of the Company, its subsidiaries or
     affiliates.

               (b) During and subsequent to Employee's employment, upon the
     request and at the expense of the Company or its nominee and for no
     additional personal remuneration, Employee agrees to execute any instrument
     which the Company considers necessary to secure for or maintain for the
     benefit of the Company adequate patent and other property rights in the
     United States and all foreign countries with respect to any Intellectual
     Property.  Employee also agrees to assist the Company as required to draft
     said instruments and to obtain and enforce said rights.

               (c) Employee agrees to promptly disclose to the Company any
     Intellectual Property when conceived or made by Employee, in whole or in
     part, and to make and maintain adequate and current records thereof.  Upon
     the termination of Employee's employment for any reason, Employee agrees to
     promptly turn over to the Company all models, prototypes, drawings,
     records, documents, and the like in Employee's possession or under
     Employee's control, whether prepared by Employee or others, relating to

                                       2
<PAGE>

     Intellectual Property, and any other work done for the Company related
     thereto.  Employee acknowledges that all such items are the sole property
     of the Company.

               (d) Employee agrees that any Intellectual Property disclosed by
     Employee within one (1) year following termination of Employee's employment
     for any reason shall be the sole property of the Company unless and until
     finally determined by a court of competent jurisdiction to have been made
     or conceived after the termination of Employee's employment.

          6.  Confidential Information.

               (a) In the course of performing services for the Company under
     this Agreement, Employee may receive or have access to commercially
     valuable, confidential or proprietary information.  "Confidential
     Information" means all confidential information, whether oral or written,
     now or hereafter developed, acquired or used by the Company and relating to
     the business of the Company that is not generally known to others in the
     Company's area of business, including without limitation (to the extent
     confidential) (i) any trade secrets, work product, processes, analyses,
     know-how, software and hardware development information or other
     Intellectual Property of the Company; (ii) the Company's advertising,
     product development, strategic and business plans and information; (iii)
     customer lists and prices at which the Company has sold or offered to sell
     its products or services; and (iv) the Company's financial statements and
     other financial information.

               (b) Employee acknowledges and agrees that the Confidential
     Information (to the extent it can be owned) is and will be the sole and
     exclusive property of the Company.  Employee will not use any Confidential
     Information for his own benefit or disclose any Confidential Information to
     any third party (except in the course of performing his authorized duties
     for the Company under this Agreement), either during or subsequent to his
     employment with the Company. Upon termination of his employment with the
     Company, Employee will promptly deliver to the Company all documents,
     computer disks and other computer storage devices and other papers and
     materials (including all copies thereof in whatever form) containing or
     incorporating any Confidential Information or otherwise relating in any way
     to the Company's business that are in his possession or under his control.
     Employee also agrees not to disclose to the Company any Confidential
     Information belonging to others.

          7.  Restrictive Covenant.  For purposes hereof, the "Noncompetition
Period" will begin on the Effective Date and end eighteen (18) months after the
date Employee's employment with the Company is terminated for any reason.  In
consideration of the Company's agreement to employ Employee and the receipt by
the Employee of Confidential Information, Employee hereby agrees that, during
the Noncompetition Period, he will not (except in the course of performing his
authorized duties for the Company under this Agreement), directly or indirectly,
on his own behalf or as an officer, director, employee, consultant or other
agent of, or as a stockholder, partner or other investor in, any person or
entity (other than the Company or its affiliates):

                                       3
<PAGE>

               (a) engage in any business conducted by the Company, its
     subsidiaries or affiliates and any business competitive with the business
     conducted by the Company, its subsidiaries or affiliates (collectively a
     "Competing Business") within any geographic area in which the Company, its
     subsidiaries or affiliates conducts any business, or in which businesses
     competitive with the businesses of the Company, its subsidiaries or
     affiliates are conducted (the "Territory"), or give advice or lend credit,
     money or Employee's reputation to any natural person or entity engaged in
     or establishing a Competing Business in the Territory or;

               (b) directly or indirectly influence or attempt to influence any
     customer, potential customer, supplier or accounts of the Company, its
     subsidiaries or affiliates located within the Territory to purchase, sell
     or lease goods or services related to a Competing Business other than from
     or to the Company; or

               (c) solicit, encourage, or take any other action which is
     intended, directly or indirectly, to induce any other employee of the
     Company to terminate his or her employment with the Company, or interfere
     in any manner with the contractual or employment relationship between the
     Company and any other employees of the Company, or hire or attempt to hire
     any former employee of the Company whose termination from employment has
     been effective for ninety (90) days or less;

provided, that the foregoing will not apply to any investment in publicly traded
securities constituting less than 5% of the outstanding securities in such
class.  For purposes of this Agreement, the term "affiliate" means with respect
to any person or entity any other person or entity controlling, controlled by or
under common control with such person or entity.

          8.  Enforcement.

               (a) Employee represents to the Company that he is willing and
     able to engage in businesses other than a Competing Business within the
     Territory and that enforcement of the restrictions set forth in Section 7
     would not be unduly burdensome to Employee.  The Company and Employee
     acknowledge and agree that the restrictions set forth in Section 7 are
     reasonable as to time, geographic area and scope of activity and do not
     impose a greater restraint than is necessary to protect the goodwill and
     other business interests of the Company, and Employee agrees that the
     Company is justified in believing the foregoing.

               (b) If the provisions of Section 7 are found by a court of
     competent jurisdiction to contain unreasonable or unnecessary limitations
     as to time, geographical area or scope of activity, then such court is
     hereby directed to reform such provisions to the minimum extent necessary
     to cause the limitations contained therein as to time, geographical area
     and scope of activity to be reasonable and enforceable.

               (c) Employee acknowledges and agrees that the Company would be
     irreparably harmed by any violation of Employee's obligations under
     Sections 5, 6 and 7 hereof and

                                       4
<PAGE>

     that, in addition to all other rights or remedies available at law or in
     equity, the Company will be entitled to injunctive and other equitable
     relief to prevent or enjoin any such violation. If Employee violates
     Section 7, the period of time during which the provisions thereof are
     applicable will automatically be extended for a period of time equal to the
     time that Employee began such violation until such violation permanently
     ceases.

          9.  No Obligation to Third Party.  Employee represents and warrants
that Employee is not under any obligation to any person or other third party and
does not have any other interest which is inconsistent or in conflict with this
Agreement, or which would prevent, limit, or impair Employee's performance of
any of the covenants hereunder or Employee's duties as an employee of the
Company.

          10.  Entire Agreement.  This Agreement embody the complete agreement
of the parties with respect to the subject matter hereof and supersedes any
prior written, or prior or contemporaneous oral, understandings or agreements
between the parties that related in any way to the subject matter hereof.  This
Agreement may be amended only in writing executed by the Company and Employee.

          11.  Binding Effect.  This Agreement shall be binding upon and inure
to the benefit of the respective heirs, executors, administrators, legal
representatives and successors of the Company and Employee.

          12.  Notice.  Any notice required or permitted under this Agreement
must be in writing and will be deemed to have been given when delivered
personally, by telecopy or by overnight courier service or three days after
being sent by mail, postage prepaid, to (a) if to the Company, to the Company's
principal place of business, or (b) if to Employee, to his residence or to his
latest address then contained in the Company's records (or to such changed
address as such person may subsequently give notice of in accordance herewith).

          13.  GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH SUBSTANTIVE LAWS OF TEXAS, WITHOUT GIVING
EFFECT TO ANY CONFLICTS OF LAW, RULE OR PRINCIPLE THAT MIGHT REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

                                       5
<PAGE>

          IN WITNESS WHEREOF, the Company and Employee have executed and
delivered this Agreement as of the date first above written.


                              SHBANG! INC.


                              By:____________________________________________
                              Name:  Kent Savage
                              Title: President and Chief Executive Officer



                              _______________________________________________
                              Name:  KENT SAVAGE

                                       6