Document:

Exhibit 10.13

                                ESCROW AGREEMENT

      AGREEMENT made this __th day of April, 2005 by and between Spongetech
Delivery Systems, Inc., a Delaware corporation (the "Issuer"), and Continental
Stock Transfer & Trust Company (the "Escrow Agent").

                              W I T N E S S E T H:

      WHEREAS, the Issuer has filed with the Securities and Exchange Commission
(the "Commission") a registration statement (the "Registration Statement")
covering a proposed public offering of its securities as described on the
Information Sheet, as defined in Section 1 herein;

      WHEREAS, the Issuer proposes to offer the Securities for sale to the
public on a "best efforts, all or none" basis with respect to the Minimum
Securities Amount and Minimum Dollar Amount and at the price per share or other
unit all as set forth on the Information Sheet, as defined in Section 1 herein;
and

      WHEREAS the Issuer proposes to establish an escrow account (the "Escrow
Account"), to which subscription monies which are received by the Escrow Agent
in connection with such public offering are to be credited, and the Escrow Agent
is willing to establish the Escrow Account on the terms and subject to the
conditions hereinafter set forth;

      NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties hereto hereby agree as follows:

      1. Information Sheet. Each capitalized term not otherwise defined in this
Agreement shall have the meaning set forth for such term on the information
sheet which is attached to this Agreement and is incorporated by reference
herein and made a part hereof (the "Information Sheet").

      2. Establishment of the Bank Account.

      2.1 The Escrow Agent shall establish a non-interest-bearing bank account
and bearing the designation set forth on the Information Sheet (heretofore
defined as the "Bank Account"). The purpose of the Bank Account is for (a) the
deposit of all subscription monies (checks, cash or wire transfers) which are
received by the Issuer from prospective purchasers of the Securities and are
delivered by the Issuer to the Escrow Agent, (b) the holding of amounts of
subscription monies which are collected through the banking system, and (c) the
disbursement of collected funds, all as described herein.

      2.2 On or before the date of the initial deposit in the Bank Account
pursuant to this Agreement, the Issuer shall notify the Escrow Agent in writing
of the effective date of the Registration Statement (the "Effective Date"), and
the Escrow Agent shall not be required to accept any amounts for credit to the
Escrow Account or for deposit in the Bank Account prior to its receipt of such
notification.

      2.3 The Offering Period, which shall be deemed to commence on the
Effective Date, shall consist of the number of calendar days or business days
set forth on the Information Sheet. The Offering Period shall be extended by an
Extension Period only if the Escrow Agent shall have received written notice
thereof from the Issuer. The Extension Period, which shall be deemed to commence
on the next calendar day following the expiration of the Offering Period, shall
consist of the number of calendar days or business days set forth on the
Information Sheet.

      The last day of the Offering Period, or the last day of the Extension
Period (if the Escrow Agent has received written notice thereof as hereinabove
provided), is referred to herein as the "Termination Date". Except as provided
in Section 4.3 hereof, after the Termination Date the Issuer shall not deposit,
and the Escrow Agent shall not accept, any additional amounts representing
payments by prospective purchasers.

      3. Deposits to the Bank Account.

      3.1 The Issuer shall promptly deliver to the Escrow Agent all monies which
it receives from prospective purchasers of the Securities, which monies shall be
in the form of checks, cash,' or wire transfers. Upon the Escrow Agent's receipt
of such monies, they shall be credited to the Escrow Account. All checks
delivered to the Escrow Agent shall be made payable to " Continental Stock
Transfer & Trust Company, as Escrow Agent for Spongetech Delivery Systems, Inc."
Any check payable other than to the Escrow Agent as required hereby shall be
returned to the prospective purchaser, or if the Escrow Agent has insufficient
information (defined as lack of the prospective purchaser's address) to do so,
then to the Issuer together with any Subscription Information, as defined below
or other documents delivered therewith) by noon of the next business day
following receipt of such check by the Escrow Agent, and such check shall be
deemed not to have been delivered to the Escrow Agent pursuant to the terms of
this Agreement.

      3.2 Promptly after receiving subscription monies as described in Section
3.1, the Escrow Agent shall deposit the same into the Bank Account. Amounts of
monies so deposited are hereinafter referred to as "Escrow Amounts". The Escrow
Agent shall cause ________ Bank to process all Escrow Amounts for collection
through the banking system. Simultaneously with each deposit to the Escrow
Account, the Issuer shall inform the Escrow Agent in writing of the name and
address of. the prospective purchaser, the amount of Securities subscribed for
by such purchaser, and the aggregate dollar amount of such subscription
(collectively, the "Subscription Information).

<PAGE>

      3.3 The Escrow Agent shall not be required to accept for credit to the
Escrow Account or for deposit into the Bank Account checks which are not
accompanied by the appropriate Subscription Information. Wire transfers and cash
representing payments by prospective purchasers shall not be deemed deposited in
the Escrow Account until the Escrow Agent has received in writing the
Subscription Information required with respect to such payments.

      3.4 The Escrow Agent shall not be required to accept in the Escrow Account
any amounts representing payments by prospective purchasers, whether by check,
cash or wire, except during the Escrow Agent's regular business hours.

      3.5 Only those Escrow Amounts, which have been deposited in the Bank
Account and which have cleared the banking system and have been collected by the
Escrow Agent, are herein referred to as the "Fund".

      3.6 If the proposed offering is terminated before the Termination Date,
the Escrow Agent shall refund any portion of the Fund prior to disbursement of
the Fund in accordance with Article 4 hereof upon instructions in writing signed
by the Issuer.

      4. Disbursement from the Bank Account.

      4.1 Subject to Section 4.3 below, if by the close of regular banking hours
on the Termination Date the Escrow Agent determines that the amount in the Fund
is less than the Minimum Dollar Amount or the Minimum Securities Amount, as
indicated by the Subscription Information submitted to the Escrow Agent, then in
either such case, the Escrow-Agent shall promptly refund to each prospective
purchaser the amount of payment received from such purchaser which is then held
in the Fund or which thereafter clears the banking system, without interest
thereon or deduction therefrom, by drawing checks on the Bank Account for the
amounts of such payments and transmitting them to the purchasers. In such event,
the Escrow Agent shall promptly notify the Issuer of its distribution of the
Fund.

      4.2 Subject to Section 4.3 below, if at any time up to the close of
regular banking hours on the Termination Date, the Escrow Agent determines that
the amount in the Fund is at least equal to the Minimum Dollar Amount and
represents the sale of not less than the Minimum Securities Amount, the Escrow
Agent shall promptly notify the Issuer of such fact in writing. The Escrow Agent
shall promptly disburse the Fund, either by wire transfer or by drawing checks
on the Bank Account in accordance with instructions in writing signed by the
Issuer as to the disbursement of the Fund, promptly after it receives such
instructions. If the Fund is to be dispersed by wire transfer, the Fund shall be
wired to:

            Continental Stock Transfer & Trust Company
            18 Battery Place, 8th Floor
            New York, NY 10004
            Account Title:
            ABA No.:

or to such other account as Issuer may direct in writing.

      4.3 If the Escrow Agent has on hand at the close of business on the
Termination Date any uncollected amounts which when added to the Fund would
raise the amount in the Fund to the Minimum Dollar Amount, and result in the
Fund representing the sale of the Minimum Securities Amount, the Collection
Period (consisting of the number of business days set forth on the Information
Sheet) shall be utilized to allow such uncollected amounts to c1ear the banking
system. During the Collection Period, the Issuer shall not deposit, and the
Escrow Agent shall not accept, any additional amounts; provided, however, that
such amounts as were received by the Issuer by the close of business on the
Termination Date may be deposited with the Escrow Agent by noon of the next
business day following the Termination Date. If at the close of business on the
last day of the Collection Period an amount sufficient to raise the amount in
the Fund to the Minimum Dollar Amount and which would result in the Fund
representing the sale of the Minimum Securities Amount shall not have cleared
the banking system, the Escrow Agent shall promptly notify the Issuer in writing
of such fact and shall promptly return all amounts then in the Fund, and any
amounts which, thereafter clear the banking system, to the prospective
purchasers as provided in Section 4.2 hereof.

      4.4 Under no circumstances shall the Escrow Agent disperse more than the
Maximum Dollar Amount to the Issuer. In the event that Escrow Agent receives
funds greater than the Maximum Dollar Amount, Escrow Agent shall promptly return
such amounts to subscribers in accordance with instructions in writing signed by
the Issuer, as determined by the Issuer in its sole discretion.

      4.5 Upon disbursement of the Fund pursuant to the terms of this Article 4,
the Escrow Agent shall be relieved of all further obligations and released from
all liability under this Agreement. it is expressly agreed and understood that
in no event shall the aggregate amount of payments made by the Escrow Agent
exceed the amount of the Fund.

      5. Rights, Duties and Responsibilities of Escrow Agent. It is understood
and agreed that the duties of the Escrow Agent are purely ministerial in nature,
and that:

                                       2
<PAGE>

      5.1 The Escrow Agent shall notify the Issuer, on a daily basis, of the
Escrow Amounts which have been deposited in the Bank Account and of the amounts,
constituting the Fund, which have cleared the banking system and have been
collected by the Escrow Agent.

      5.2 The Escrow Agent shall not be responsible for the performance by the
Issuer of its obligations under this Agreement.

      5.3 The Escrow Agent shall not be required to accept from the Issuer any
Subscription Information pertaining to prospective purchasers unless such
Subscription Information is accompanied by checks, cash, or wire transfers
meeting the requirements of Section 3.1, nor shall the Escrow Agent be required
to keep records of any information with respect to payments deposited by the
Issuer except as to the amount of such payments; however, the Escrow Agent shall
notify the Issuer within a reasonable time of any discrepancy between the amount
set forth in any Subscription Information and the amount delivered to the Escrow
Agent therewith. Such amount need not be accepted for deposit in the Escrow
Account until such discrepancy has been resolved.

      5.4 The Escrow Agent shall be under no duty or responsibility to enforce
collection of any check delivered to it hereunder. The Escrow Agent, within a
reasonable time, shall return to the Issuer any check received which is
dishonored, together with the Subscription Information, if any, which
accompanied such check.

      5.5 The Escrow Agent shall be entitled to rely upon the accuracy, act in
reliance upon the contents, and assume the genuineness of any notice,
instruction, certificate, signature, instrument or other document which is given
to the Escrow Agent pursuant to this Agreement without the necessity of the
Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall not
be obligated to make any inquiry as to the authority, capacity, existence or
identity of any person purporting to give any such notice or instructions or to
execute any such certificate, instrument or other document.

      5.6 If the Escrow Agent is uncertain as to its duties or rights hereunder
or shall receive instructions with respect to the Bank Account, the Escrow
Amounts or the Fund which, in its sole determination, are in conflict either
with other instructions received by it or with any provision of this Agreement,
it shall be entitled to hold the Escrow Amounts, the Fund, or a portion thereof,
in the Bank Account pending the resolution of such uncertainty to the Escrow
Agent's sole satisfaction, by final judgment of a court or courts of competent
jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit
the Fund (and any other Escrow Amounts that thereafter become part of the Fund)
with the clerk of a court of competent jurisdiction in a proceeding to which all
parties in interest are joined. Upon the deposit by the Escrow Agent of the Fund
with the Clerk of any court, the Escrow Agent shall be relieved of all further
obligations and released from all liability hereunder.

      5.7 The Escrow Agent shall not be liable for any action taken or omitted
hereunder, or for the misconduct of any employee, agent or attorney appointed by
it, except in the case of willful misconduct or gross negligence. The Escrow
Agent shall be entitled to consult with counsel of its own choosing and shall
not be liable for any action taken, suffered or omitted by it in accordance with
the advice of such counsel.

      5.8 The Escrow Agent shall have no responsibility at any time to ascertain
whether or not any security interest exists in the Escrow Amounts, the Fund or
any part thereof or to file any financing statement under the Uniform Commercial
Code with respect to the Fund or any part thereof.

      5.9 The Issuer covenants that Escrow Agent shall:

      (a) Not be charged with any knowledge or be bound by or be under any duty
to enforce any terms or conditions of the proposed public offering of Issuer's
Securities as described in the Information Sheet;

      (b) Be under no duty to accept any check, draft or instrument for the
payment of money unless it is payable in United States of America Dollars;

      (c) Be entitled to consult with its counsel and shall not be liable for
any action taken or omitted by it in accordance with the opinion and advice of
such counsel whether such counsel be a member of its staff or independent
counsel; and

      (d) Not be liable to the Issuer or to any person with respect to any
action taken or omitted to be taken by it in good faith.

      5.10 Issuer hereby acknowledges that the status of Escrow Agent is that of
agent only for the limited purposes set forth herein, and hereby agrees that in
offering the Securities for sale to the public, it will not represent or imply
that Escrow Agent, by serving as escrow agent hereunder or otherwise, has
investigated the desirability or advisability of investment in the Securities,
or has approved, endorsed or passed upon the merits of the investments, nor
shall they use the name Escrow Agent in any manner in connection with the offer
or sale of the Securities other than by acknowledgement that it has agreed to
serve as escrow agent for the limited purposes herein set forth.

      6. Amendment; Resignation. This Agreement may be altered or amended only
with the written consent of the Issuer and the Escrow Agent. The Escrow Agent
may resign for any reason upon three (3) business days' written notice to the
Issuer. Should the Escrow Agent resign as herein provided, it shall not be
required to accept any deposit, make any disbursement or otherwise dispose of
the Escrow Amounts or the Fund, but its only duty shall be to hold the Escrow
Amounts until they clear the banking system and the Fund for a period of not
more than five (5) business days following the effective date of such
resignation, at which time (a) if a successor escrow agent shall have been
appointed and written notice thereof (including the name and address of such
successor escrow agent) shall have been given to the resigning Escrow Agent by
the Issuer and such successor escrow agent, then the resigning Escrow Agent
shall pay over to the successor escrow agent the Fund, less any portion thereof

                                       3
<PAGE>

previously paid out in accordance with this Agreement; or (b) if the resigning
Escrow Agent shall not have received written notice signed by the Issuer and a
successor escrow agent then the resigning Escrow Agent shall promptly refund the
amount in the Fund to each prospective purchaser, without interest thereon or
deduction therefrom, and the resigning Escrow Agent shall promptly notify the
Issuer in writing of its liquidation and distribution of the Fund; whereupon, in
either case, the Escrow Agent shall be relieved of all further obligations and
released from all liability under this Agreement. Without limiting the
provisions of Section 8 hereof, the resigning Escrow Agent shall be entitled to
be reimbursed by the Issuer and the underwriter for any expenses incurred in
connection with its resignation, transfer of the Fund to a successor escrow
agent or distribution of the Fund pursuant to this Section 6.

      7. Representations and Warranties. The Issuer hereby represents and
warrants to the Escrow Agent that:

      7.1 No party other than the parties hereto and the prospective purchasers
have, or shall have, any lien, claim or security interest in the Escrow Amounts
or the Fund or any part thereof.

      7.2 No financing statement under the Uniform Commercial Code is on file in
any jurisdiction claiming a security interest in or describing (whether
specifically or generally) the Escrow Amounts or the Fund or any part thereof.

      7.3 The Subscription information submitted with each deposit shall, at the
time of submission and at the time of the disbursement of the Fund, be deemed a
representation and warranty that such deposit represents a bona fide payment by
the purchaser described therein for the amount of Securities set forth in such
Subscription Information.

      7.4 All of the information contained in the Information Sheet is, as of
the date hereof, and will be, at the time of any disbursement of the Fund, true
and correct.

      8. Fees and Expenses. The Escrow Agent shall be entitled to the Escrow
Agent Fees set forth on the Information Sheet payable as and when stated
therein. In addition, the Issuer agrees to reimburse the Escrow Agent for any
reasonable expenses incurred in connection with this Agreement, including, but
not limited to, reasonable counsel fees. Upon receipt of the Minimum Dollar
Amount, the Escrow Agent shall have a lien upon the Fund to the extent of its
fees for services as Escrow Agent.

      9. Indemnification and Contribution.

      9.1 The Issuer (the "Indemnitor") agrees to indemnify the Escrow Agent and
its officers, directors, employees, agents and shareholders (collectively
referred to as the "Indemnitees") against, and hold them harmless of and from,
any and all loss, liability, cost, damage and expense, including without
limitation, reasonable counsel fees, which the Indemnitees may suffer or incur
by reason of any action, claim or proceeding brought against the Indemnitees
arising out of or relating in any way to this Agreement or any transaction to
which this Agreement relates, unless such action, claim or proceeding is the
result of the willful misconduct or gross negligence of the Indemnitees.

      9.2 If the indemnification provided for in Section 9.1 is applicable, but
for any reason is held to be unavailable, the Indemnitor shall contribute such
amounts as are just.and equitable to pay, or to reimburse the Indemnitees for,
the aggregate of any and all losses, liabilities, costs, damages and expenses,
including counsel fees, actually incurred by the Indemnitees as a result of or
in connection with, and any amount paid in. settlement of, any action, claim or
proceeding arising out of or relating in any way to any actions or omissions of
the Indemnitor.

      9.3 The provisions of this Article 9 shall survive any termination of this
Agreement, whether by disbursement of the Fund, resignation of the Escrow Agent
or otherwise.

      10. Governing Law and Assignment. This Agreement shall be construed in
accordance with -and governed by the laws of the State of Florida and shall be
binding upon the parties hereto and their respective successors and assigns;
provided however, that any assignment or transfer by any party of its rights
under this Agreement or with respect to the Escrow Amounts or the Fund shall be
void as against the Escrow Agent unless (a) written notice thereof shall be
given to the Escrow Agent; and (b) the Escrow Agent shall have consented in
writing to such assignment or transfer.

      11. Notices. All notices required to be given in connection with this
Agreement shall be sent by registered or certified mail, return receipt
requested, or by hand delivery with receipt acknowledged, or by the Express Mail
service offered by the United States Post Office, and addressed, if to the
Issuer, at its address set forth on the Information Sheet, and if to the Escrow
Agent at its address set forth above, to the attention of Michael L. Metter,
Chief Executive Officer.

      12. Severability. If any provision of this Agreement or the application
thereof to any person or circumstance shall be determined to be invalid or
unenforceable, the remaining provisions of this Agreement or the application of
such provision to persons or circumstances other than those to which it is held
invalid or unenforceable shall not be affected thereby and shall be valid and
enforceable to the fullest extent permitted by law.

      13. Execution in Several Counterparts. This Agreement may be executed in
several counterparts or by separate instruments, and all of such counterparts
and instruments shall constitute one agreement, binding on all of the parties
hereto.

      14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings (written or oral) of the
parties in connection therewith.

                                       4
<PAGE>

      15. Attorney Fees. In connection with any litigation, including appellate
proceedings arising out of this agreement, the prevailing party shall be
entitled to recover reasonable attorneys fees and costs.

      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
day and year first above written.

      SPONGETECH DELIVERY SYSTEMS, INC.     CONTINENTAL STOCK TRANSFER &
                                            TRUST COMPANY

      By:                                   By:
         ------------------------------        --------------------------------
         Michael L. Metter
         Chief Executive Officer

                                       5
<PAGE>

ESCROW AGREEMENT INFORMATION SHEET

1. The Issuer Name: Spongetech Delivery Systems, Inc.

Address: The Empire State Building, 350 Fifth Avenue
         New York, New York 10118
         212-594-4175

State of incorporation of organization: Delaware

2. The Securities

Units, each Unit consisting of one share of Common Stock and one class A
redeemable common stock purchase warrant Offering price per unit: $0.25

3. Minimum Amounts Required for Disbursement of the Escrow Account Aggregate
dollar amount which must be collected before the Escrow Account may be disbursed
to the Issuer:

("Minimum Dollar Amount"): $500,000
("Maximum Dollar amount"): $2,000,000

Total amount of securities which must be subscribed for before the Escrow
Account may be disbursed to the Issuer: ("Minimum Securities Amount"): 2,000,000
Units ("Maximum Securities Amount"): 8,000,000 Units

4. Plan of Distribution of the Securities Offering Period: 90 calendar days
Extension Period: of 90 days Collection Period: ___ business days

5. Title of Escrow Account: Continental Stock Transfer & Trust Company, Escrow
Agent for Spongetech Delivery Systems, Inc.

6. Escrow Agent Fees

Fee for each check disbursed pursuant to the terms of the Escrow Agreement:
$_____

Fee for each check returned pursuant to the terms of the Escrow Agreement:
$_____CALYPSO
WIRELESS, INC.

EXECUTIVE
EMPLOYMENT AGREEMENT

THIS
EXECUTIVE EMPLOYMENT AGREEMENT
("Agreement"), effective as of March 2, 2005, by and between CALYPSO
WIRELESS,
INC., a
Delaware corporation (“CALYPSO”), and GEORGE SCHILLING (the
“Executive”).

WHEREAS, CALYPSO
has experienced considerable success in the business of designing, engineering,
researching and developing wireless technology, cellular telephones and other
equipment; and 

 

WHEREAS, CALYPSO
wishes to employ Executive in the capacity of PRESIDENT & CHIEF EXECUTIVE
OFFICER for a minimum period of One (1) year; and 

 

WHEREAS, the
Executive wishes to become an employee of CALYPSO as its PRESIDENT & CHIEF
EXECUTIVE OFFICER; and

 

WHEREAS, the
parties believe it to be in their mutual interest to set forth in writing the
terms and con-ditions of Executive’s employment by CALYPSO; and

 

WHEREAS, the
Agreement shall govern the employment relationship between the parties from and
after the effective date hereof and it supersedes all previous employment
agreements between them, except as defined below, either written or oral,
heretofore made.

NOW,
THEREFORE, in
consideration of the foregoing, the parties agree as follows:

1.  Recitals. The
above recitals are true and correct and fully incorporated herein and form an
integral part of this Agreement.

2.  Intent
and Scope of Agreement. The
purpose of this agreement is for Calypso to execute an employment agreement that
allows it to procure the services of the Executive as its Chief Executive
Officer.

 

3.  Employment. CALYPSO
hereby employs the Executive to serve as its President & Chief Executive
Officer, and the Executive hereby accepts such employment with CALYPSO upon the
terms and conditions hereinafter set forth. The duties, responsibilities and
requisites of Executive shall be at a minimum as set forth in the attached job
description, but shall remain commensurate with such title and shall not
diminish in quality from that currently experienced by Executive.

4.  Term. The
term (which, for purposes of the Agreement, shall include any extensions) of the
Agreement shall commence as of the date of the signing of this Agreement, and,
except as otherwise provided in Section 12 hereof, shall terminate one year from
such commencement date (the “Initial Term”), and shall include all additional
periods, as extended. At the expiration date, and each year thereafter, this
Agreement shall be renewed upon mutual consent and agreed upon terms, of CALYPSO
and Executive for an additional period to be negotiated by the
parties.

 

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

5.  Compensation.

 

A. Base
Compensation. For all
services rendered during the term of this Agreement by the Executive to CALYPSO,
the Executive shall receive base compensation of $ 120,000.00 per annum (One
Hundred Twenty Thousand US Dollars) (the “Base Compensation”). Commencing on
April 15th, 2005. CALYPSO shall pay Executive the Base Compensation in
twenty-four (24) equal Semi-Monthly payments commencing on the commencement date
as provided in section 4 hereof, and paid every 15th and
every 30th of the
month (except the month of February which shall be paid on the 28th).

Commencing
April 15, 2005, the Company will provide a monthly stipend, in addition to his
salary, of $ 2,500.00 (Two Thousand Five Hundred US Dollars) per moth for the
duration of this Employment Agreement.

B. Bonus
Payment.
Executive shall receive an additional compensation of 10,000 (Ten Thousand)
restricted shares of CALYPSO every month commencing on April 15th, 2005 for the
duration of this Employment Agreement. The stock certificates will be delivered
to the Executive every (90) ninety days. A true and correct copy of the Stock
Grant is attached hereto as Exhibit “A”. 

 

C. Additional
Compensation to Executive. In
addition to the compensation stated above, Executive shall receive 333,333
(Three Hundred Thirty Three Thousand Three Hundred Thirty Three) stock options
at a price of .98 cents (Ninety Eight cents) per share of CALYPSO per year for
the duration of this Employment Agreement that shall vest pursuant to a
pro-rated vesting schedule attached a exhibit “A” and providing that he is not
terminated pursuant to the provisions of paragraph 14 (B).

 

In the
Event of a Change in Control (as defined in No. 15) within the next twelve
months, the Executive shall receive an additional compensation of 666,666 (Six
Hundred Sixty Six Thousand Six Hundred Sixty Six) stock options of CALYPSO at a
price of .98 cents (Ninety Eight cents) per share that shall vest upon the
consummation of the change of control.

 

D. Board
of Directors Compensation. If
during the term of this Agreement the Executive participates as a member of the
Board of Directors, in addition to the compensation stated above, Executive
shall receive a compensation for serving as a member of the Board of Directors
of Calypso Wireless, Inc. in the amount determined by the Board of Directors of
CALYPSO in its absolute and sole discretion for all members of the Board. Said
Board of Directors Compensation shall be in addition to the base compensation
and all other forms of compensation described herein in 5(A)-(C).

2

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

6. Duties
and Restrictions.

6.1 Position.
During the term of this Agreement, the Executive shall serve as President &
Chief Executive Officer of CALYPSO and shall devote time, attention, energy and
skills to the faithful and diligent performance of his duties, including,
without limitation, participating in the prosecution or defense of any
litigation on behalf of CALYPSO, which may include traveling as reasonably
requested by CALYPSO. Except as otherwise agreed between CALYPSO and EXECUTIVE
from time to time Employee agrees to devote 100% of his business time,
attention, skill, and efforts to the performance of his duties and
responsibilities on behalf of CALYPSO which shall be assigned to him from time
to time by the CALYPSO. “100% of his business time” shall mean Monday through
Friday, excluding holidays as defined in 8(a) of this Agreement. Executive shall
also devote reasonable additional time (such as travel) from time to time as
requested by CALYPSO. Nothing in this Agreement shall preclude Executive from
devoting reasonable periods required for:

	
      
	
      (a)
	
      serving
      as a director or member of a committee of any organization or corporation
      involving no conflict of interest with the interests of
      Calypso;

	
      
	
      (b)
	
      serving
      as a consultant or an academic faculty in his area of expertise (in areas
      other than in connection with the business of Calypso), to government,
      industrial, and academic panels where it does not conflict with the
      interests of Calypso; and

	
      
	
      (c)
	
      managing
      his personal investments or engaging in any other noncompeting
      business;

provided
that such activities do not materially interfere with the regular performance of
his duties and responsibilities under this Agreement. “The Business of Calypso”
for purposes of this paragraph and this Agreement shall mean work in the area of
telecommunications. 

 

6.2
 Non-Disclosure.
Executive agrees that he will not disclose, now or at anytime in the future, any
information which is treated by Calypso as confidential, including, but not
limited to, information relating to the business of Calypso, any of Calypso's
products, customers, affairs, trade secrets, developments, methods of
distribution and any other information relating to Calypso which Calypso shall
deem proprietary, to any person, firm, company, corporation, association, or any
other entity provided that disclosure of confidential information may be made
(i) to the extent that such information is generally available and known in the
industry, through no action of Executive, or (ii) as required by
law.

6.3
 Return
of Documents. Upon the
expiration or termination of this Agreement, Executive shall not remove from
Calypso, without written consent of Calypso, any manuals, records, drawings,
blueprints, data, tables, calculations, letters, documents, or any copy or other
reproduction thereof, or any other property or confidential information, of or
pertaining to Calypso or any of its subsidiaries. All of the foregoing shall be
returned to Calypso on or before the date of expiration or termination of
employment.

3

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

6.4 No
Actions In Conflict of Calypso’s Interest.
 
Executive recognizes that the services to be performed by him pursuant to this
Agreement are special, unique and extraordinary. The parties confirm that it is
reasonably necessary for the protection of Calypso’s goodwill that Executive
agree not to act in any way that would be detrimental to Calypso and constitute
a conflict of interest. Therefore, during the term of this Agreement, Executive
will not, directly or indirectly, except for the benefit of
Calypso:

	
      
	
      
	
      (i)
	
      
	
      solicit,
      cause or authorize, directly or indirectly, to be solicited for or on
      behalf of himself or third parties from parties who are or were customers
      of Calypso (including its present and future subsidiaries and affiliates)
      at any time during the term of this Agreement, any business similar to the
      business transacted by Calypso with such customer. This shall not preclude
      Executive from soliciting the services of a supplier or customer of
      Calypso in furtherance of a noncompeting business as allowed under
      Paragraph 6(a) hereof; or

	 	 	 	 	 

	 	 	(ii)	 	accept or cause or authorize, directly or indirectly, to
      be accepted for or on behalf of himself or third parties, business from
      any such customers of Calypso (including its present and future
      subsidiaries and affiliates), except as allowed in the last sentence of
      Paragraph 6.4 (i) above; or

	 	 	 	 	 

	 	 	(iii)	 	solicit, or cause or authorize, directly or indirectly,
      to be solicited for employment for or on behalf of himself or third
      parties, any persons who was at any time during the term of this
      Agreement, employees of Calypso (including its present and future
      subsidiaries and affiliates); or

	 	 	 	 	 

	 	 	(iv)	 	employ or cause or authorize, directly or indirectly, to
      be employed for or on behalf of himself or third parties, any such
      employees of Calypso (including its present and future subsidiaries and
      affiliates); or

 

	
       
	
      
	
      (v)
	
      
	
      use
      the trade names, trademarks, or trade dress of any of the products of
      Calypso (including its present and future subsidiaries and affiliates); or
      any substantially similar trade name, trademark or trade dress likely to
      cause, or having the effect of causing, confusion in the minds of
      manufacturers, customers, suppliers and retail outlets and the public
      generally.

6.5 Assignment
of Inventions. If at any time during the term of this Agreement (either alone or
with others) Executive makes, conceives, creates, discovers, invents or reduces
to practice any invention, modification, discovery, design, development,
improvement, process, software program, work of authorship, documentation,
formula, data, technique, know-how, trade secret, or intellectual property right
whatsoever or any interest therein (whether or not patentable or registrable
under copyright, trademark or similar statutes or subject to analogous
protection (each, an “Invention”) that (i) relates to the Business of Company or
any of its Affiliates or any customer of or supplier to Company or any of its
Affiliates or any of the products or services being developed, manufactured or
sold by Calypso or any of its Affiliates or which may be used in relation
therewith; or (ii) results from tasks assigned to Executive by Calypso or any of
its Affiliates; or (iii) results from the use of premises or personal property
(whether tangible or intangible) owned, leased or contracted for by Calypso or
any of its Affiliates, then all such Inventions and the benefits thereof are and
shall immediately become the sole and absolute property of Calypso and its
assigns, as works made for hire or otherwise. Executive hereby agrees that he
shall promptly disclose to Calypso (or any persons designated by it) each such
Invention. Executive hereby assigns all rights (including, but not limited to,
rights to any inventions, patentable subject matter, copyrights and trademarks)
he may have or may acquire in the Inventions and all benefits and/or rights
resulting therefore to Calypso and its assigns without further compensation and
shall communicate, without cost or delay, and without disclosing to others the
same, all available information relating thereto (with all necessary plans and
models) to Calypso. Notwithstanding anything contained in this Agreement or in
this Paragraph, any Invention that does not relate to the area
of telecommunications shall remain the exclusive property of Executive and
Calypso shall have no claim to such Invention, and under no circumstances shall
Executive have the duty or obligation to assign all rights (including,
but not limited to, rights to any inventions, patentable subject matter,
copyrights and trademarks) he may
have or may acquire to such Inventions and all benefits and/or rights resulting
therefore.

 

4

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

7. Facilities.
The Executive shall be furnished with such facilities and services as are
adequate and sufficient in the reasonable opinion of the Executive for the
per-formance of his duties, this shall include without limitation a private
office, computer equipment, administrative assistant, office furniture and
similar facilities..

8. Employee
Benefits. CALYPSO agrees to provide the Executive with the following
benefits:

A.  Vacation.
The Executive shall be entitled each year to vacation time that totals two (2)
weeks, during which time his compensation shall be paid in full. All vaca-tion
time shall be taken at times and in duration convenient to CALYPSO. The vacation
time provided herein shall not be cumulative and not carried forward to any
subsequent year(s) by the Executive.

B.  Holidays.
Executive shall be entitled to the following Holidays: New Year’s Day, Good
Friday, Memorial Day, 4th of July, Labor Day, Thanksgiving, the Friday after
Thanksgiving, Christmas Eve, Christmas Day, and one Floating
Holiday.

C.  Employee
Benefits.During
the Term of this Agreement, CALYPSO shall provide the Executive with any other
fringe benefits generally available to employees of CALYPSO, such as medical -
health plan.

5

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

9. Development
and Other Activity Expenses. CALYPSO
recognizes that the Executive will have to incur certain out-of-pocket expenses,
including, but not limited to, travel expenses, relating to his services and
CALYPSO’s business, and CALYPSO agrees to promptly reimburse the Executive for
all reasonable expenses necessarily incurred by him in the performance of his
duties to CALYPSO upon presentation of a receipt, voucher, copy of credit card
statement or documentation indicating the amount and business purposes of any
such expenses. These expenses include, but are not limited to, travel, meals,
entertainment, etc. 

10. Sick
Leave. The
Executive shall be entitled to five (5) days sick leave during each calendar
year, which amounts shall not be cumulative.

11. Office
and Support Staff. During
the term of this Agreement, Executive shall be entitled to an office of a size
and with furnishings and other appointments, and to secretarial and other
assistants, at least equal to those provided to other management level employees
of CALYPSO and as further addressed in section 7 herein.

12. Termination.

A.  Grounds.
This agreement is at will and may be terminated by either party at any time.
This Agreement shall also terminate in the event of the Executive’s death. In
the case of the Executive’s Disability, CALYPSO may elect to terminate the
Executive as a result of such Disability provided such Disability prevents the
Executive from performing his duties as defined in Section 13.A. 

B.  Notice of
Termination. Any termination by CALYPSO shall be communicated by Notice of
Termination to the Executive and vice versa. For purposes of this Agreement, a
“Notice of Termination” means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon and (ii) the date of
termination in accordance with (c) below. 

C.  Date of
Termination. “Date of Termination” means (i) if CALYPSO intends to treat the
termination as a termination based upon the Executive’s Disability, the
Executive’s employment with CALYPSO shall terminate effective on the fifth day
after receipt of Notice of Termination by CALYPSO or on the date mentioned on
the Notice of Termination; (ii) if the Executive’s employment is terminated by
reason of Death, the Date of Termination shall be the date of death of the
Executive; (iii) if the Executive’s employment is terminated for any other
reason, the Date of Termination shall be fifty (15) days from the date of the
Notice of Termination. In addition, the Executive shall be deemed to have
terminated his employment by Voluntary Termination if the Executive voluntary
refuses to provide substantially all of the services described in Section 6
hereof for a period greater than one (1) consecutive weeks In such event, the
Date of Termination shall be the last day substantially all of the services
described in Section 6 hereof were performed; 

6

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

13. Definitions. For the
purposes of this Agreement, the following terms shall have the following
definitions:

 

A. “Disability”
means a complete physical or mental inability, confirmed by an independent
licensed physician, to perform substantially all of the services described in
Section 3 hereof that continues for a period of 30 consecutive days during any
six month period.

B. “Voluntary
Termination” means the Executive’s voluntary termination of his employment.
Voluntary refusal to perform services shall not include taking a vacation in
accordance with Section 8.(A.) hereof, or the Executive’s failure to perform
services on account of his illness or the illness of a member of his immediate
family, provided such illness is adequately substantiated at the reasonable
request of CALYPSO, or any other absence from service with written consent of
the Board of Directors.

 

14. Compensation
Upon Termination - Obligations of CALYPSO Upon
Termination.

A. If the
Executive shall suffer a death or a termination hereunder based upon Executive’s
Disability, as defined under Section 13, CALYPSO shall pay the Executive the
following:

(i). the
Executive’s full Base Compensation up to the Date of Termination at the rate in
effect on the Date of Termination;

 

	B.  	
      If
      the Executive shall suffer a Termination based upon any of the following
      circumstances, he shall receive no compensation, separation pay, stock
      options or any employment benefits referenced in this or any other
      agreement:

	1.  	
      He
      commits a felony, or any misdemeanor criminal offense involving a crime of
      dishonesty, moral turpitude or violence;

	2.  	
      He
      abuses alcohol or uses illegal narcotics;

	3.  	
      Engages
      in insubordination;

	4.  	
      He
      commits gross negligence in the performance of his
  duties;

	5.  	
      He
      breaches his fiduciary obligations as President and Chief Executive
      Officer;

 

	C.  	
      If
      the Executive is terminated for any other reason, (other than death,
      disability or reasons enumerated in B (1 - 5), he shall receive ninety
      (90) days pay, plus pro-rated stock options as enumerated
      herein.

 

7

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

15. Change
in Control. In the
event of a Change in Control, as defined below, the Executive or CALYPSO, shall
have the option at any time within 30 days after the Change in Control occurs to
terminate Executive’s employment.

A. Notice. Written
notice that a “Change in Control” has occurred must be delivered by CALYPSO
within five (5) days after such “Change in Control” occurs. Proper notice to
effectuate a termination upon Change in Control shall be the date the Executive
or CALYPSO receive written notice which (i) indicates that this Employment
Agreement is being terminated on the basis of Change in Control, and, (ii) sets
forth in reasonable detail the facts and circumstances claimed to provide a
basis for such termination.

B. Definitions
- Change in Control.

	(i)  	
      “Acquiring
      Person” means that a Person, considered alone or together with all Control
      Affiliates and Associates of that Person, is or becomes directly or
      indirectly the beneficial owner of securities representing at least
      fifty-one (51) percent of CALYPSO’s then outstanding securities entitled
      to vote generally in the election of the
Board.

	(ii)  	
      “Affiliate”
      means any “subsidiary” or “parent” corporation (within the meaning of
      Section 424 of the Code) of CALYPSO.

	(iii)  	
      “Board”
      means the Board of Directors of CALYPSO.

	(iv)  	
      “Control
      Affiliate” with respect to any Person, means an Affiliate as defined in
      Rule 12B-2 of the General Rules and Regulations under the Exchange Act, as
      amended as of January 1, 1990.

	(v)  	
      “Exchange
      Act” means the Securities Exchange Act of 1934, as amended and as in
      effect from time to time.

	(vi)  	
      “Person”
      means any human being, firm, corporation, partnership, or other entity.
      Person also includes any human being, firm, corporation, partnership, or
      other entity as defined in Section 13(d)(3) and 14 (d)(2) of the Exchange
      Act, as amended as of January 1, 1990. The term Person does not include
      CALYPSO or any related entity within the meaning of Code Section 1563(a),
      414(b) or 414(c), and the term Person does not include any
      employee-benefit plan maintained by CALYPSO or by any Related Entity, and
      any Person or entity organized, appointed, or established by CALYPSO or by
      any subsidiary for or pursuant to the terms of any such employee-benefit
      plan, unless the Board determines that such an employee-benefit plan, or
      such Person or entity is a Person

8

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

 

	(vii)  	
      “Change
      in Control”. For purposes of this Agreement, a “Change in Control” shall
      mean any of the following events:

	(a)  	
      In
      the event a Person is or becomes an Acquiring
Person;

	(b)  	
      In
      the event a Person enters into a agreement that would result in that
      Person becoming an Acquiring Person;

	(c)  	
      In
      the event that CALYPSO enters into any agreement with Person that involves
      the transfer of at least fifty-one (51) percent of CALYPSO’s total assets
      on a consolidated basis, as reported in CALYPSO’s consolidated financial
      statements filed with the Securities and Exchange Commission, or, if
      CALYPSO is not required to file consolidated financial statements with the
      Securities and Exchange Commission, similar financial
      statements;

	(d)  	
      In
      the event that CALYPSO enters into an agreement to merge or consolidate
      CALYPSO or to effect a statutory share exchange with another Person, where
      the Person and its subsidiaries and affiliates own at least fifty-one (51)
      percent of the company, if CALYPSO is not intended to be the surviving or
      resulting entity after the merger, consolidation, or statutory share
      exchange;

	(e)  	
      A
      complete liquidation or dissolution of
CALYPSO;

	(f)  	
      Notwithstanding
      the foregoing, a Change in Control shall not be deemed to occur solely
      because any Person acquired Beneficial Ownership as defined in the
      Exchange Act of more than the permitted amount of the then outstanding
      securities as a result of the acquisition of securities by CALYPSO which
      by reducing the number of securities then outstanding, increased the
      proportional number of shares Beneficially Owned by the subject Person(s)
      provided that if a Change in Control would occur as a result of the
      acquisition of securities by CALYPSO, and after such share acquisition by
      CALYPSO, the Person becomes the Beneficial Owner of any additional
      securities which increases the percentage of the then outstanding
      securities Beneficially Owned by the subject Person, then a Change in
      Control shall occur. 

9

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

C.
 Compensation
Upon Termination Based Upon Change in Control - Payment of Excise
Taxes. If a
termination occurs upon a Change in Control as defined above, and the change
control takes place during the first twelve months of this agreement hen the
Company shall pay the Executive those same amounts at the same time as indicated
in Section (14).

 

16. Notices. All
notices required to be given under the Agreement shall be in writing, sent
certified mail, return receipt requested, postage prepaid, to the following
addresses:

(A) If to the
Executive, then to:

George
Schilling

710
7th
Lane

Palm
Beach, FL. 33418

 

(B) If to
CALYPSO, then to: 

 

Calypso
Wireless, Inc.

5753 NW
158th 

Miami
Lakes, FL 33014

Attention:
 Board Of
Directors

 

17. Governing
Law and Venue. The
Agreement shall be governed by and construed in accordance with the laws of the
State of Florida. Venue for any action or suit brought hereunder or in
connection herewith, or relating hereto, shall lie with the Courts in and for
Miami-Dade County, Florida.

18. Waiver. The
waiver by either party hereto of any breach of any provision of the Agreement
shall not operate or be construed as a waiver of any subsequent breach by either
party hereto.

19. Binding
Effect and Assignment. The
Executive acknowledges that his services are unique and personal. Accordingly,
the Executive may not assign his rights or delegate his duties or obligations
under this Agreement. The Executive’s rights and obligations under this
Agreement shall inure to the benefit of and shall be binding upon the
Executive’s heirs, personal representatives and successors and assigns. The
Agreement shall be binding upon CALYPSO’s successors and/or assigns.

20. Attorneys
Fees. In the
event either party files any action or suit regarding any of the terms of this
Agreement or in relation to, or involving, Executive’s employment by CALYPSO,
then the prevailing party shall be entitled to recover upon final judgment on
the merits its or his reasonable attorney's fees and court costs (including,
without limitation, appellate attorney’s fees and court costs) incurred in
bringing such action and all costs or expenses, including, without limitation,
attorney’s fees and court costs, incurred in collecting any judgment
..

10

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

 

21. Indemnification
and Hold Harmless Provision. CALYPSO
hereby agrees to indemnify Executive, his heirs, successors, and assigns and
hold Executive harmless from any and all liabilities, obligations, expenses,
fees, and costs (including attorney’s and professional fees) of every kind,
nature, and description, which now exist or may exist now or hereafter with
respect to Executive’s activities, duties, or responsibilities as President
& Chief Executive Officer of
CALYPSO, or any subsequent position, or in relation to any of CALYPSO’s
subsidiaries, affiliates, or related entities. Such indemnification and hold
harmless benefits shall be payable by CALYPSO whenever incurred by Executive so
long as such costs or expenses relate to or arise from such activities, duties,
and responsibilities of Executive and shall not be in any way be dependent upon
Executive’s employment with CALYPSO. Calypso shall be required to purchase
adequate directors/officers insurance, or other adequate insurance insuring
Calypso’s obligation as set forth in this Section 21. 

In the
event Executive is made a party to a lawsuit or is involved in a legal
proceeding in any manner (including by subpoena or as a witness), which relates
directly or indirectly to Calypso or the Executive’s performance of his duties
under this Agreement, in which Executive in his sole discretion believes that it
is in his best interest to retain independent legal and other professional
counsel.

22.  Non-Compete
Clause. For a
period of two (2) years after the conclusion of his employment with Calypso, the
Executive shall not engage in any employment or work for any company or third
party, including consulting engagements, that is directly or indirectly involved
in competition with Calypso Wireless or any of its subsidiaries or successors in
interest. This shall include but not be limited to any business entity involved
in the development, servicing or manufacture of wireless communications of any
type, including but not limited to cellular telephones. In addition, the
Executive shall not directly or indirectly solicit any Calypso employees,
contractors, or vendors to gain employment or business affiliation with any
business that competes directly or indirectly with Calypso. 

23.  Entire
Understanding; Amendment. The
Agreement contains the entire understanding of the parties relating to the
employment of the Executive by CALYPSO and supersedes any and all previous
agreements among the parties. It may not be changed orally but only by an
agreement in writing signed by the party or par-ties against whom enforcement of
any waiver, change, modifica-tion, extension or discharge is
sought.

****

[The
balance of this page is intentionally left blank]

11

Calypso
Wireless, Inc.

George
Schilling Executive

Employment
Agreement

IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the
day and year first above written.

 

	 	EXECUTIVE:

      

      George
      Schilling

       

      _________________________

      
 

      CALYPSO
      WIRELESS, INC.,

      A
      DELAWARE CORPORATION

      

      __________________________

      Name:
      Antonio Zapata

      Title:
      Chairman of the Board

      

      

      

      __________________________ 

      Name:
      Julietta Moran

      Title:
      Board Member - Secretary

 

12

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