Document:

Unassociated Document

    
      Exhibit
        10.61

      

       

      EXHIBIT
        D

       

      ESCROW
        AGREEMENT

       

      THIS
        ESCROW AGREEMENT (this “Agreement”)
        is
        made as of September 28, 2005, by and among Xfone, Inc., a corporation
        incorporated under the laws of Nevada (the “Company”),
        the
        purchasers signatory hereto (each a “Purchaser”
        and
        together the “Purchasers”),
        and
        Feldman Weinstein LLP, with an address at 420 Lexington Avenue, New York,
        New
        York 10170-0002 (the “Escrow
        Agent”).
        Capitalized
        terms used but not defined herein shall have the meanings set forth in the
        Securities Purchase Agreement referred to in the first
        recital.

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Purchasers will be purchasing from the Company Common Stock and Warrants
        on
        the Closing Date as set forth in the Securities Purchase Agreement (the
“Purchase
        Agreement”)
        dated
        the date hereof between the Purchasers and the Company, which securities
        will be
        issued under the terms contained herein and in the Purchase Agreement;
        and

       

      WHEREAS,
        it is intended that the purchase of the securities be consummated in accordance
        with the requirements set forth in Regulation D promulgated under the Securities
        Act of 1933, as amended; and

       

      WHEREAS,
        the Company and the Purchasers have requested that the Escrow Agent hold
        the
        Subscription Amounts in escrow until the Escrow Agent has received the Release
        Notice in the form attached hereto from the Company and each
        Purchaser;

       

      NOW,
        THEREFORE, in consideration of the covenants and mutual promises contained
        herein and other good and valuable consideration, the receipt and legal
        sufficiency of which are hereby acknowledged and intending to be legally
        bound
        hereby, the parties agree as follows:

       

       

      ARTICLE
        1  

       

       

      TERMS
        OF
        THE ESCROW

       

      1.1.  The
        parties hereby agree to establish an escrow account with the Escrow Agent
        whereby the Escrow Agent shall hold the funds for the purchase Common Stock
        and
        Warrants as contemplated by the Purchase Agreement.

       

      1.2.  Upon
        the
        Escrow Agent’s receipt of the aggregate Subscription Amounts for the Closing
        into its master escrow account, together with executed counterparts of this
        Agreement, the Purchase Agreement and the Registration Rights Agreement,
        it
        shall telephonically advise the Company, or the Company’s designated attorney or
        agent, of the amount of funds it has received into its master escrow
        account.

       

      1.3.  Wire
        transfers to the Escrow Agent shall be made as follows:

       

      STERLING
        NATIONAL BANK

      622
        3RD
        AVENUE

      NEW
        YORK,
        NY 10017

      ACCOUNT
        NAME: FELDMAN WEINSTEIN LLP

      ABA
        ROUTING NO: 026007773

      ACCT
        NO:
        0814180101

      REMARK:
        XFN/[FUND NAME]

      

      1.4  The
        Company, promptly following being advised by the Escrow Agent that the Escrow
        Agent has received the Subscription Amounts for the Closing along with facsimile
        copies of counterpart signature pages of the Purchase Agreement, Registration
        Rights Agreement and this Agreement from each Purchaser, shall deliver to
        the
        Escrow Agent the certificates representing the certificates evidencing the
        Securities to be issued to each Purchaser at the Closing together
        with:

       

      (a)  the
        Company’s executed counterpart of the Purchase Agreement;

      

      (b)  the
        Company’s executed counterpart of the Registration Rights Agreement;

      

      (c)  the
        executed opinion of Company Counsel; and

      

      (d)  the
        Company’s original executed counterpart of this Escrow Agreement.

      

      1.5  In
        the
        event that the foregoing items are not in the Escrow Agent’s possession within
        five (5) Trading Days of the Escrow Agent notifying the Company that the
        Escrow
        Agent has custody of the Subscription Amount for the Closing, then each
        Purchaser shall have the right to demand the return of their portion of the
        Subscription Amount.

       

      1.6  Once
        the
        Escrow Agent receives Release Notices in the form attached hereto as
Exhibit
        X
        executed
        by the Company and each Purchaser, it shall (a) wire 100% of the aggregate
        Subscription Amounts per the instructions of the Company, net of $30,000
        for the
        legal fees and expenses of Crestview per the instructions of Crestview and
        (b)
        wire the remaining 0% of the aggregate Subscription Amounts per the written
        instructions of Oberon Securities, LLC.

       

      1.7  If
        the
        Escrow Agent has not received all the Release Notices from the Purchasers
        on or
        before October 31, 2005, the Escrow Agent shall return the respective
        Subscription Amounts to the Purchasers net of each Purchaser’s pro-rata share of
        $25,000 (based on such Purchaser’s Subscription Amount to all Subscription
        Amounts) which shall be wired per the instructions of Crestview.

       

      1.8  Once
        the
        funds (as set forth above) have been sent per the Company’s instructions, the
        Escrow Agent shall then arrange to have the Shares, the Purchase Agreement,
        the
        Registration Rights Agreement, the Warrants, the Escrow Agreement and the
        opinion of counsel delivered to the appropriate parties.

       

      ARTICLE
        II

       

      MISCELLANEOUS

       

      2.1  No
        waiver
        or any breach of any covenant or provision herein contained shall be deemed
        a
        waiver of any preceding or succeeding breach thereof, or of any other covenant
        or provision herein contained. No extension of time for performance of any
        obligation or act shall be deemed an extension of the time for performance
        of
        any other obligation or act.

       

      2.2  
        All
        notices or other communications required or permitted hereunder shall be
        in
        writing, and shall be sent as set forth in the Purchase Agreement.

       

      2.3  
        This
        Escrow Agreement shall be binding upon and shall inure to the benefit of
        the
        permitted successors and permitted assigns of the parties hereto.

       

      2.4  
        This
        Escrow Agreement is the final expression of, and contains the entire agreement
        between, the parties with respect to the subject matter hereof and supersedes
        all prior understandings with respect thereto. This Escrow Agreement may
        not be
        modified, changed, supplemented or terminated, nor may any obligations hereunder
        be waived, except by written instrument signed by the parties to be charged
        or
        by its agent duly authorized in writing or as otherwise expressly permitted
        herein.

       

      2.5  
        Whenever
        required by the context of this Escrow Agreement, the singular shall include
        the
        plural and masculine shall include the feminine. This Escrow Agreement shall
        not
        be construed as if it had been prepared by one of the parties, but rather
        as if
        all parties had prepared the same. Unless otherwise indicated, all references
        to
        Articles are to this Escrow Agreement.

       

      2.6  
        The
        parties hereto expressly agree that this Escrow Agreement shall be governed
        by,
        interpreted under and construed and enforced in accordance with the laws
        of the
        State of New York. Any action to enforce, arising out of, or relating in
        any way
        to, any provisions of this Escrow Agreement shall only be brought in a state
        or
        Federal court sitting in New York City.

       

      2.7  
        The
        Escrow Agent’s duties hereunder may be altered, amended, modified or revoked
        only by a writing signed by the Company, each Purchaser and the Escrow
        Agent.

       

      2.8  
        The
        Escrow Agent shall be obligated only for the performance of such duties as
        are
        specifically set forth herein and may rely and shall be protected in relying
        or
        refraining from acting on any instrument reasonably believed by the Escrow
        Agent
        to be genuine and to have been signed or presented by the proper party or
        parties. The Escrow Agent shall not be personally liable for any act the
        Escrow
        Agent may do or omit to do hereunder as the Escrow Agent while acting in
        good
        faith and in the absence of gross negligence, fraud and willful misconduct,
        and
        any act done or omitted by the Escrow Agent pursuant to the advice of the
        Escrow
        Agent’s attorneys-at-law shall be conclusive evidence of such good faith, in the
        absence of gross negligence, fraud and willful misconduct.

       

      2.9  
        The
        Escrow Agent is hereby expressly authorized to disregard any and all warnings
        given by any of the parties hereto or by any other person or corporation,
        excepting only orders or process of courts of law and is hereby expressly
        authorized to comply with and obey orders, judgments or decrees of any court.
        In
        case the Escrow Agent obeys or complies with any such order, judgment or
        decree,
        the Escrow Agent shall not be liable to any of the parties hereto or to any
        other person, firm or corporation by reason of such decree being subsequently
        reversed, modified, annulled, set aside, vacated or found to have been entered
        without jurisdiction.

       

      2.10  The
        Escrow Agent shall not be liable in any respect on account of the identity,
        authorization or rights of the parties executing or delivering or purporting
        to
        execute or deliver the Purchase Agreement or any documents or papers deposited
        or called for thereunder in the absence of gross negligence, fraud and willful
        misconduct.

       

      2.11  The
        Escrow Agent shall be entitled to employ such legal counsel and other experts
        as
        the Escrow Agent may deem necessary properly to advise the Escrow Agent in
        connection with the Escrow Agent’s duties hereunder, may rely upon the advice of
        such counsel, and may pay such counsel reasonable compensation; provided
        that
        the costs of such compensation shall be borne by the Escrow Agent. The
        Escrow Agent has acted as legal counsel for Crestview, and may continue to
        act
        as legal counsel for Crestview from time to time, notwithstanding its duties
        as
        the Escrow Agent hereunder. The Company and the other Investors consent to
        the
        Escrow Agent in such capacity as legal counsel for Crestview and waives any
        claim that such representation represents a conflict of interest on the part
        of
        the Escrow Agent. The Company understands that Crestview and the Escrow Agent
        are relying explicitly on the foregoing provision in entering into this Escrow
        Agreement.

       

      2.12  The
        Escrow Agent’s responsibilities as escrow agent hereunder shall terminate if the
        Escrow Agent shall resign by giving written notice to the Company and the
        Purchasers. In the event of any such resignation, the Purchasers and the
        Company
        shall appoint a successor Escrow Agent and the Escrow Agent shall deliver
        to
        such successor Escrow Agent any escrow funds and other documents held by
        the
        Escrow Agent.

       

      2.13  If
        the
        Escrow Agent reasonably requires other or further instruments in connection
        with
        this Escrow Agreement or obligations in respect hereto, the necessary parties
        hereto shall join in furnishing such instruments.

       

      2.14  It
        is
        understood and agreed that should any dispute arise with respect to the delivery
        and/or ownership or right of possession of the documents or the escrow funds
        held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed
        in the Escrow Agent’s sole discretion (1) to retain in the Escrow Agent’s
        possession without liability to anyone all or any part of said documents
        or the
        escrow funds until such disputes shall have been settled either by mutual
        written agreement of the parties concerned by a final order, decree or judgment
        or a court of competent jurisdiction after the time for appeal has expired
        and
        no appeal has been perfected, but the Escrow Agent shall be under no duty
        whatsoever to institute or defend any such proceedings or (2) to deliver
        the
        escrow funds and any other property and documents held by the Escrow Agent
        hereunder to a state or Federal court having competent subject matter
        jurisdiction and located in the City of New York in accordance with the
        applicable procedure therefore

       

      2.15  The
        Company and each Purchaser agree jointly and severally to indemnify and hold
        harmless the Escrow Agent and its partners, employees, agents and
        representatives from any and all claims, liabilities, costs or expenses in
        any
        way arising from or relating to the duties or performance of the Escrow Agent
        hereunder or the transactions contemplated hereby or by the Purchase Agreement
        other than any such claim, liability, cost or expense to the extent the same
        shall have been determined by final, unappealable judgment of a court of
        competent jurisdiction to have resulted from the gross negligence, fraud
        or
        willful misconduct of the Escrow Agent.

       

      ************************

       

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement as
        of
        date first written above.

       

      XFONE,
        INC.

       

      

      By:______________________________________

      Name:
        Guy
        Nissenson

      Title:
        President &CEO

      

       

      ESCROW
        AGENT:

       

      FELDMAN
        WEINSTEIN LLP

      By:______________________________________

      Name:

      Title:

      

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      

        
          

        

      

      

      

      [SIGNATURE
        PAGE OF HOLDERS TO XFN ESCROW]

      Name
        of
        Holder: __________________________

      Signature
        of Authorized Signatory of Holder:
        __________________________

      Name
        of
        Authorized Signatory: _________________________

      Title
        of
        Authorized Signatory: __________________________

      

      

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
          

        

      

      Exhibit
        X to

       

      Escrow
        Agreement

       

      RELEASE
        NOTICE

       

      The
        UNDERSIGNED, pursuant to the Escrow Agreement, dated as of September 28,
        2005,
        among Xfone, Inc., the Purchasers signatory thereto and Feldman Weinstein
        LLP,
        as Escrow Agent (the “Escrow
        Agreement”;
        capitalized terms used herein and not defined shall have the meaning ascribed
        to
        such terms in the Escrow Agreement), hereby notify the Escrow Agent that
        each of
        the conditions precedent to the purchase and sale of the Shares set forth
        in the
        Purchase Agreement have been satisfied. The Company and the undersigned
        Purchaser hereby confirm that all of their respective representations and
        warranties contained in the Purchase Agreement remain true and correct and
        authorize the release by the Escrow Agent of the funds and documents to be
        released at the Closing as described in the Escrow Agreement. This Release
        Notice shall not be effective until executed by the Company and the Purchasers.
        

       

      This
        Release Notice may be signed in one or more counterparts, each of which shall
        be
        deemed an original.

       

      IN
        WITNESS WHEREOF, the undersigned have caused this Release Notice to be duly
        executed and delivered as of this ___ day of October, 2005.

       

      XFONE,
        INC.

      

      

      By:
        ___________________________________

      Name:
        Guy
        Nissenson

      Title:
        President & CEO

      

      [SIGNATURE
        PAGE OF HOLDERS FOLLOWS]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      [SIGNATURE
        PAGE OF HOLDERS TO XFN RELEASE]

      Name
        of
        Holder: __________________________

      Signature
        of Authorized Signatory of Holder:
        __________________________

      Name
        of
        Authorized Signatory: _________________________

      Title
        of
        Authorized Signatory: __________________________

      

      

      

      [PURCHASERS’
        SIGNATURE PAGE FOLLOWS]Ex 10.1 Letter Agreement

POSITRON CORPORATION 

1304 Langham Creek, #300
Houston, Texas 77084 

September 29, 2005 

Mr. Gary Brooks
1914 Royal
Downs Drive 
Katy, Texas 77450 

Dear Gary: 

          This
will confirm the terms of your separation from Positron Corporation (the
“Company”). These terms are as follows: 

               1.       
          Effective Date. The “effective date” of your resignation will
          be September 29, 2005. You will resign as an officer and director of the
          Company. 

               2.       
          Severance Payments. You will receive the following severance payments:
          (i) your unpaid salary through the effective date, (ii) your accrued but unused
          vacation pay, if any, through the effective date, (iii) severance payments of
          $18,583.33 per month for a period of six months from the effective date in
          accordance with the Company’s usual payroll practices; and (iv)
          post-termination medical insurance benefits as provided in the Company’s
          personnel manual. 

               3.       
          Options and Warrants. The expiration date of all of the stock options
          currently held by you and set forth on Exhibit A shall be
          September 30, 2006, notwithstanding any earlier expiration date set
          forth in your applicable stock option agreement. In addition, notwithstanding
          the Warrant Purchase Agreement entered into by you and the Company on June 15,
          1999, or any other subsequent agreement affecting your Warrants, all outstanding
          Warrants owned by you (see Exhibit A) shall not expire until the later of
          (i) date set forth on Exhibit A, or (ii) the date on which a registration
          statement filed with the Securities Exchange Commission permitting a sale of the
          shares underlying such warrants shall have become effective and shall have
          remained effective for a period of six months. The Company agrees to waive any
          repurchase or buy-back rights with respect to any warrants. The common shares
          underlying the warrants will be included in the Company’s next registration
          statement (except any registration statement relating to option plans where the
          underlying shares would not be eligible for registration.) 

               4.       
          Release. In exchange for the payment set forth in Section 2 above, you
          and your representatives, agents, heirs, successors, and assigns release all
          Claims that you have or may have against the Company, its partners, officers,
          directors, trustees, employees, affiliates, parent or related companies,
          predecessors, successors, representatives and /or agents (“Released
          Parties”), except that you are not releasing any rights or claims under the
          federal Age Discrimination in Employment Act (“ADEA”). The released
          claims include, without limitation, claims under any federal state, or local
          constitution, statute, law, ordinance, bylaw or regulation dealing with either
          employment, employment discrimination, retaliation and/or employment benefits
          including, without limitation those laws, statutes or regulations concerning
          payment of wages or compensation of any type; discrimination, harassment, or
          retaliation (other than under the federal ADEA); any federal, state or local law
          or regulation concerning securities, stock or stock options; any contract,
          whether oral or written, express or implied; any tort; or common law. You
          acknowledge that you have not suffered any occupational illness or injury, and
          have no claims against the Company. 

               5.       
          Employment Agreement. Except for the provisions of Section 5.1.1
          (Confidential Information) and 5.1.2 (Property of the Company) the Executive
          Employment Agreement between you and the Company dated as of August 1, 1999, as
          amended, shall be terminated as of the effective date of this letter. 

               6.       
          Non Disparagement. The Company and you agree that neither will, at any
          time after the date of this Settlement Agreement and Release, in any manner
          disparage or in any manner demean each other to third parties. Further, if a
          third Party seeks information about your employment with the Company, the
          Company will simply provide the dates of employment and inform the third party
          that you voluntarily resigned your employment. The Company also agrees to ensure
          that your personnel file reflects that you resigned voluntarily. 

               7.       
          Sole Agreement. This letter sets forth the complete and sole agreement
          between the parties and supersedes any and all other employment related
          agreements, understandings and/or representations between or by the parties,
          whether oral or written. 

          If
the foregoing accurately reflects our agreement, please sign and return the enclosed copy
of this letter. 

			Very truly yours,

POSITRON CORPORATION

/S/  Patrick G. Rooney
——————————————

Patrick G. Rooney
Chairman

Agreed to: 

——————————————

Gary H. Brooks

EXHIBIT A 

Warrants and Option 

	Type   
 	Shares   
 	Price  
  	Expiration  
  
	Warrant	 	3,000,000	 	$    0.02	 	10/31/07	 
	Warrant	 	4,000,000	 	$    0.02	 	10/31/07	 
	Warrant	 	500,000	 	$    0.02	 	6/09	 
	Options	 	500,000	 	$    0.05

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