Document:

EXHIBIT
      10.1

    EMPLOYMENT
      AGREEMENT

    This
      EMPLOYMENT AGREEMENT (this
“Agreement”) is made as of the 1st day of January 2004 by and between InterMetro
      Communications, Inc., a California corporation (the “Company”), and Charles
      Rice, an individual (“Employee”), and is made with respect to the following
      facts: 

    R
      E C I T A L
      S

    A.
      The Company and the Employee wish
      to ensure that the Company will receive the benefit of Employee’s loyalty and
      service. 

    B.
      In order to help ensure that the
      Company receives the benefit of Employee’s loyalty and service, the parties
      desire to enter into this formal Employment Agreement to provide Employee with
      appropriate compensation arrangements and to assure Employee of employment
      stability. 

    C.
      The parties have entered into
      this Agreement for the purpose of setting forth the terms of employment of
      the
      Employee by the Company. 

    NOW,
      THEREFORE, in
      consideration of the premises and mutual covenants herein contained, THE
      PARTIES HERETO AGREE AS FOLLOWS: 

    1.
Employment
      of Employee
      and Duties. The Company hereby hires Employee and Employee hereby
      accepts employment upon the terms and conditions described in this Agreement.
      The Employee will be the Chairman, Chief Executive Officer, and President of
      the
      Company with all of the duties, privileges and authorities usually attendant
      upon such office, including but not limited to responsibility for the day-to-day
      management and oversight of the Company and its subsidiaries. Subject to
      (a) the general supervision of the Board of Directors of the Company, and
      (b) the Employee’s duty to report to the Board of Directors periodically
      and to follow its directives and policies, Employee will have all of the
      authority to perform his employment duties for the Company. 

    2.
The
      Company’s
      Authority. Employee agrees to comply with the Company’s rules and
      regulations as adopted by the Company’s Chief Executive Officer and Board of
      Directors regarding performance of his duties, and to carry out and perform
      those orders, directions and policies established by the Company with respect
      to
      his engagement. Employee will promptly notify the Company’s Board of Directors
      of any objection he has to the Board’s directives and the reasons for such
      objection. 

    3.
Proprietary
      Information, Confidentiality, Loyalty, and Nonsolicitation.
      Employee agrees to execute the Employee Proprietary Information,
      Confidentiality, Loyalty, and Nonsolicitation Agreement attached to this
      Agreement as Exhibit A. 

     

    
      
        
        

      

      
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    4.
Term
      of
      Agreement. This Agreement will commence to be effective on
      January 1, 2004 (the “Commencement Date”), and will continue until for a
      period of five years, unless sooner terminated as provided in Section 13
      hereof. Thereafter, this Agreement will automatically be renewed for consecutive
      one (1) year periods unless either party provides the other party with
      written notification, at least sixty (60) days prior to the expiration of
      the then current term of this Agreement, of its intention not to renew this
      Agreement. 

    5.
      Compensation. During the term of this Agreement, the
      Company will pay the following compensation to Employee: 

    5.1
Annual
      Compensation. Employee will be paid a fixed salary of $220,000 per
      year, payable in two installments per month of approximately $9,167 each on
      the
      5th and 20th day of each month, commencing for the first period after the
      Commencement Date of this Agreement. Employee will receive an annual 11%
      increase in said fixed salary effective each January 1st
      during the term of this Agreement. 

    5.2
Additional
      Compensation. In addition to the compensation set forth in Sections
      5.1 and 5.3 of this Agreement, Employee may be paid a bonus or bonuses during
      each year at a target annual amount equal to one hundred percent (100%) of
      the Employee’s then in effect annual salary, as determined at the sole
      discretion of the Company’s Board of Directors based on the Board’s evaluation
      of the Employee’s definable efforts, accomplishments and similar contributions.

    5.3
Stock
      Incentives. On January 2, 2004 the Company will grant to the
      Employee 250,000 stock options to purchase 250,000 shares of the Company’s
      Common Stock pursuant to the Company’s 2004 Stock Option Plan for Directors,
      Officers, Employees, and Key Consultants of InterMetro Communications, Inc.
      (“Stock Option Plan”) having an exercise price of $0.05 per share and an
      exercise period of ten years after the date of grant, with a vesting schedule
      as
      follows: 20% upon grant and 1/16 of the balance each quarter thereafter until
      the remaining stock options have vested. The stock options granted to Employee
      pursuant to this Agreement will be governed by the terms and conditions of
      the
      Stock Option Plan and the stock option agreement executed by the Company which
      applies to the options. Upon recommendation of the Compensation Committee of
      the
      Company’s Board of Directors and approval of the Company’s full Board of
      Directors, the Employee may be granted additional stock options to purchase
      additional stock of the Company after the first year of the term of this
      Agreement. 

    6.
      Equipment. Employee will receive one laptop computer,
      one cellular phone, and one wireless handheld devise for his exclusive use
      during his employment with the Company. Within thirty (30) days after his
      termination as a director, officer, employee, and consultant of the Company,
      as
      the case may be, Employee agrees to either (i) return such computer,
      cellular phone, and wireless handheld devise to the Company or
      (ii) purchase such computer, cellular phone, and wireless handheld devise
      from the Company for an amount equal to the then fair market value of such
      computer, cellular phone, and wireless handheld devise. 

     

    
      
        
        

      

      
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    7.
Fringe
      Benefits. Employee will be entitled to all fringe benefits which
      the Company or its subsidiaries may make available from time-to-time for persons
      with comparable positions and responsibilities, as approved by duly adopted
      resolutions of the Company’s Board of Directors. Without limitation, such
      benefits will include participation in any life and disability insurance
      programs, profit incentive plans, pension or retirement plans, and bonus plans
      as are maintained or adopted from time-to-time by the Company. The Company
      will
      also provide Employee with medical group insurance coverage or equivalent
      coverage for Employee and his dependents. The medical insurance coverage will
      begin on the Commencement Date and will continue throughout the term of this
      Agreement. 

    8.
Office
      and
      Staff. In order to enable Employee to discharge his obligations and
      duties pursuant to this Agreement, the Company agrees that it will provide
      suitable office space for Employee in the Simi Valley Metropolitan Area,
      together with all necessary and appropriate supporting staff and secretarial
      assistance, equipment, stationery, books and supplies. The Company agrees to
      provide at its expense parking for one vehicle by the Employee at the Company’s
      executive offices. 

    9.
Reimbursement
      of
      Expenses. The Company will reimburse Employee for all reasonable
      travel, mobile telephone, promotional and entertainment expenses incurred in
      connection with the performance of Employee’s duties hereunder. Employee’s
      reimbursable expenses will be paid promptly by the Company upon presentment
      by
      Employee of an itemized list of invoices describing such expenses. All
      compensation provided in Sections 5, 7, and 9 of this Agreement will be subject
      to customary withholding tax and other employment taxes, to the extent required
      by law. 

    10.
      Vacation. Employee will be entitled to four weeks of
      paid vacation per year or pro rata portion of each year of service by Employee
      under this Agreement. The Employee will be entitled to the holidays provided
      in
      the Company’s established corporate policy for employees with comparable duties
      and responsibilities. 

    11.
Automobile
      and
      Electronic Communication Devices. Notwithstanding anything else
      herein to the contrary, the Company will pay to the Employee a fixed amount
      equal to (a) $500 per month on the last day of each month during the term
      of this Agreement as reimbursement to the Employee on a nonaccountable basis
      of
      all expenses incurred by the Employee for the use of his automobile, including
      but not limited to depreciation, repairs and insurance, and (b) $300 per
      month on the last day of each month during the term of this Agreement as
      reimbursement to the Employee on a nonaccountable basis for all expenses
      incurred by the Employee for the use of his electronic communication devices.
      

    12.
      Arbitration. Any dispute under this Agreement will be
      resolved by binding arbitration conducted in accordance with the rules and
      procedures of the American Arbitration Association as they are then in effect
      in
      the County of Los Angeles, State of California. In order to select an
      arbitrator, each party to the dispute will select an arbitrator of its choice,
      and those selected arbitrators will then select by mutual agreement a single
      arbitrator for the proceeding. The decision of the arbitrator shall be final
      and
      binding on the parties to this Agreement, and judgment thereon may be entered
      in
      the Superior Court for the County of Los Angeles or any other court having
      jurisdiction.
      Each party to this Agreement will advance one-half of the arbitrator’s fees;
      however, all costs of the arbitration proceeding to enforce this Agreement,
      including attorneys’ fees and witness expenses, shall be paid by the party
      against whom the arbitrator rules. It is expressly agreed that the parties
      to
      any such arbitration may take discovery as contemplated and provided for by
      California Code of Civil Procedure §1283.05. Notwithstanding anything herein to
      the contrary, the parties hereto will not be required to submit a claim to
      arbitration if the claim is for temporary or preliminary equitable or injunctive
      relief that could not practicably be heard in a timely fashion through the
      arbitration process. 

     

    
      
        
        

      

      
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    13.
      Termination. This Agreement may be terminated in the
      following manner and not otherwise: 

    13.1
Mutual
      Agreement. This Agreement may be terminated by the mutual written
      agreement of the Company and Employee to terminate. 

    13.2
Termination
      by
      Employee for Breach. Employee may at his option and in his sole
      discretion terminate this Agreement for the material breach by the Company
      of
      any term or provision of this Agreement. In the event of such termination,
      Employee will give the Company thirty (30) day’s prior written notice.

    13.3
Termination
      by the
      Company for Breach. The Company may at its option also terminate
      this Agreement in the event that the Employee acts in gross negligence in the
      performance of his duties under this Agreement which results in a breach of
      his
      fiduciary duty to the Company, to the Board of Directors or to the Company’s
      shareholders; provided, however, that the Company will give the Employee written
      notice of specific instances for the basis of any termination of this Agreement
      by the Company pursuant to Section 13.3 of this Agreement. Employee will
      have a period of thirty (30) days after said notice in which to cease the
      alleged violations before the Company may terminate this Agreement. If Employee
      ceases to commit the alleged violations within said thirty (30) day period,
      the Company may not terminate this Agreement pursuant to this Section. If
      Employee continues to commit the alleged violations after said thirty
      (30) day period, the Company may terminate this Agreement immediately upon
      written notification to Employee. Notwithstanding anything else herein to the
      contrary, if the Employee is removed pursuant to Section 13.3 of this
      Agreement, the Employee will receive all of the benefits provided in
      Section 14(iii) of this Agreement, regardless of the terms and conditions
      of the Company’s Stock Option Plan or any existing stock option agreements or
      any amendments thereto governing the options described in Sections 5.3 or
      14(iii) of this Agreement. 

    13.4
Termination
      Upon
      Death. This Agreement will terminate upon the death of the Employee
      and Employee’s estate shall be entitled to the payment positions set forth in
      Section 14 of this Agreement. 

    13.5
Termination
      Upon the
      Disability of the Employee. This Agreement will terminate upon the
      disability of the Employee. As used in the previous sentence, the term
“disability” means the complete disability to discharge Employee’s duties and
      responsibilities for a continuous period of not less than six months during
      any
      calendar year. Any physical or mental disability which does not prevent Employee
      from discharging his duties and responsibilities
      in accordance with
      usual standards of conduct as determined by the Company in its reasonable
      opinion will not constitute a disability under this Agreement. In the event
      of a
      termination of the Employee’s employment by reason of the Employee’s disability,
      Employee shall be entitled to the payment positions set forth in Section 14
      of this Agreement. 

     

    
      
        
        

      

      
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    13.6
Termination
      from or
      Changes in Position or Duties. Removal of the Employee from his
      position as the Chief Executive Officer and President of the Company will be
      deemed to be a termination subject to the severance payment positions set forth
      in Section 14 of this Agreement. The Company will not be entitled to place
      the Employee in any other employment position without the Employee’s consent.
      The Employee’s failure to consent will not be a breach of any provision of this
      Agreement. Additionally, in the event Employee’s duties as set forth in
      Section 1 of this Agreement are materially changed or Employee is compelled
      to take an involuntary leave of absence or vacation, a termination under
      Section 13.2 herein will be deemed to have occurred and Employee will be
      entitled to the severance payment positions set forth in Section 14 of this
      Agreement. 

    13.7
Non
      Renewal of Term
      Due to Change in Control. Delivery by the Company of a notice of
      non-renewal of the term of this Agreement following a change in control of
      the
      Company will be deemed to be a termination subject to the severance payment
      positions set forth in Section 14 of this Agreement. 

    13.8
Other
      Termination by
      Employee. If this Agreement is terminated by Employee in writing
      for a reason other than the Company’s breach of this Agreement (i.e. not for
      cause) then (a) Employer will not be entitled to assert any claim against
      the Employee for consequential or indirect damages or for lost profits as a
      result of the termination; and (b) Employee will not be entitled to any
      rights set forth in Section 14 of this Agreement except that Employee will
      be entitled to the right to exercise vested options for a period of ninety
      (90) days after the date of the written notification of termination by the
      Employee. 

    14.
Improper
      Termination. If this Agreement is terminated by Employee for any
      reason pursuant to Section 13.2 of this Agreement or by the Company in any
      manner except specifically in accordance with Section 13.1 or 13.3 of this
      Agreement, then (i) the Company will immediately pay to the Employee a lump
      sum payment equal to the greater of (a) the sum of the Employee’s entire
      annual compensation and accrued but unpaid bonus (if any, with respect to bonus)
      payable through the end of the term of this Agreement pursuant to Sections
      5.1
      and 5.2 herein, respectively or (b) the Employee’s annual base compensation
      as set forth in Section 5.1 herein , (ii) Employee will be entitled to
      all of the benefits under Section 7 of this Agreement, as amended, through
      the end of the term of this Agreement, and (iii) all unvested stock options
      owned by Employee will immediately vest, Employee will be entitled to exercise
      all vested stock options which he owns for the entire remaining exercise period
      of the stock options as set forth in Section 5.3 of this Agreement, no such
      stock options will terminate prior to said expiration dates, and no “severance”
will be deemed to have occurred under the Company’s Stock Option Plan or under
      existing Stock Option Agreements covering said stock options. It is specifically
      agreed that in such event Employee will have no duty to mitigate his damages
      by
      seeking comparable, inferior or different employment. 

     

    
      
        
        

      

      
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    15.
Indemnification
      of
      Employee. Pursuant to the provisions and subject to the limitations
      of the California Corporations Code, and in particular Sections 204 and 317
      therein, the Company will indemnify and hold Employee harmless as provided
      in
      Sections 15.1, 15.2 and 15.3 of this Agreement. The Company will, upon the
      request of Employee, assume the defense and directly bear all of the expense
      of
      any action or proceedings which may arise for which Employee is entitled to
      indemnification pursuant to this Section. The Company’s obligations to indemnify
      and hold Employee harmless as provided in Sections 15.1, 15.2 and 15.3 of this
      Agreement shall survive the termination of this Agreement and continue for
      a
      period of five years thereafter. 

    15.1
Indemnification
      of
      Employee for Actions by Third Parties. The Company hereby agrees to
      indemnify and hold Employee harmless from any liability, claims, fines, damages,
      losses, expenses, judgments or settlements actually incurred by him, including
      but not limited to reasonable attorneys’ fees and costs actually incurred by him
      as they are incurred, as a result of Employee being made at any time a party
      to,
      or being threatened to be made a party to, any proceeding (other than an action
      by or in the right of the Company, which is addressed in Section 15.2 of
      this Agreement), relating to actions Employee takes within the scope of his
      employment as the Chief Executive Officer and President of the Company or in
      any
      other employment capacity, or in his role as a director of the Company, provided
      that Employee acted in good faith and in a manner he reasonably believed to
      be
      in the best interest of the Company and, in the case of a criminal proceeding,
      had no reasonable cause to believe his conduct was unlawful. 

    15.2
Indemnification
      of
      Employee for Actions in the Right of the Company. The Company
      hereby agrees to indemnify and hold Employee harmless from any liability,
      claims, damages, losses, expenses, judgments or settlements actually incurred
      by
      him, including but not limited to reasonable attorneys’ fees and costs actually
      incurred by him as they are incurred, as a result of Employee being made a
      party
      to, or being threatened to be made a party to, any proceeding by or in the
      right
      of the Company to procure a judgment in its favor by reason of any action taken
      by Employee as an officer, director or agent of the Company, provided that
      Employee acted in good faith in a manner he reasonably believed to be in the
      best interests of the Company and its shareholders, and provided further, that
      no indemnification by the Company will be required pursuant to this
      Section 15.2 (i) for acts or omissions that involve intentional
      misconduct or a knowing and culpable violation of law, (ii) for acts or
      omissions that Employee believed to be contrary to the best interests of the
      Company or its shareholders or that involve the absence of good faith on the
      part of Employee, (iii) for any transaction from which Employee derived an
      improper personal benefit, (iv) for acts or omissions that show a reckless
      disregard by Employee of his duties to the Company or its shareholders in
      circumstances in which Employee was aware, or should have been aware, in the
      ordinary course of performing his duties, of a risk of serious injury to the
      Company or its shareholders, (v) for acts or omissions that constitute an
      unexcused pattern of inattention that amounts to an abdication of Employee’s
      duties to the Company or its shareholders, or (vi) for any other act by
      Employee for which Employee is not permitted to be indemnified under the
      California Corporations Code. Furthermore, the Company has no obligation to
      indemnify Employee pursuant to this Section 15.2 in any of the following
      circumstances: 

    A.
In
      respect of
      any claim, issue, or matter as to which Employee is adjudged to be liable to
      the
      Company in the performance of his duties to the Company and its shareholders,
      unless and only to the extent that the court in which such action was brought
      determines upon application that, in view of all the circumstances of the case,
      he is fairly and reasonably entitled to indemnity for the expenses and then
      only
      in the amount that the court will determine.

     

    
      
        
        

      

      
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    B.
In
      the event of
      the application of Section 15.2(A), then for amounts paid in settling or
      otherwise disposing of a threatened or pending action without court approval.
      

    C.
In
      the event of
      the application of Section 15.2(A), then for expenses incurred in defending
      a threatened or pending action which is settled or otherwise disposed of without
      court approval. 

    15.3
      Reimbursement. In the event that it is determined by a
      trier of fact that Employee is not entitled to indemnification by the Company
      pursuant to Sections 15.1 or 15.2 of this Agreement, then Employee is obligated
      to reimburse the Company for all amounts paid by the Company on behalf of
      Employee pursuant to the indemnification provisions of this Agreement. In the
      event that Employee is successful on the merits in the defense of any proceeding
      referred to in Sections 15.1 or 15.2 of this Agreement, or any related claim,
      issue or matter, then the Company will indemnify and hold Employee harmless
      from
      all fees, costs and expenses actually incurred by him in connection with the
      defense of any such proceeding, claim, issue or matter. 

    16.
Assignability
      of
      Benefits. Except to the extent that this provision may be contrary
      to law, no assignment, pledge, collateralization or attachment of any of the
      benefits under this Agreement will be valid or recognized by the Company. Except
      as provided by law, payment provided for by this Agreement will not be subject
      to seizure for payment of any debts or judgments against the Employee, nor
      will
      the Employee have any right to transfer, modify, anticipate or encumber any
      rights or benefits hereunder; provided that any stock issued by the Company
      to
      the Employee pursuant to this Agreement will not be subject to Section 16
      of this Agreement. 

    17.
Directors’
and
      Officers’ Liability Insurance. The Company will utilize its best
      efforts in good faith to purchase directors’ and officers’ liability insurance
      for the officers and directors of the Company, which would include the same
      coverage for Employee. The Company covenants to maintain in effect a directors’
and officers’ liability insurance policy on the same terms and conditions as
      applicable to all other officers and directors of the Company during the term
      of
      this Agreement and for a period of five years after the termination of this
      Agreement. 

    18.
Notice.
      Except as otherwise specifically provided, any notices to be given hereunder
      will be deemed given upon personal delivery, air courier or mailing thereof,
      if
      mailed by certified mail, return receipt requested, to the following addresses
      (or to such other address or addresses as will be specified in any notice
      given): 

     

    
      
        
        

      

      
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              In
                case of the
                Company:

            
	
            
	
              InterMetro
                Communications,
                Inc.

            
	
            
	
               

            
	
            
	
               

            
	
              Attention:
                Chairman of the
                Board of Directors

            
	
            
	
              In
                case of the
                Employee:

            
	
            
	
              Charles
                Rice

            
	
              The
                address listed below
                Mr. Rice’s

              signature
                to this
                Agreement.

            

    

    19.
Attorneys’
      Fees. In the event that any of the parties must resort to legal
      action in order to enforce the provisions of this Agreement or to defend such
      suit, the prevailing party will be entitled to receive reimbursement from the
      nonprevailing party for all reasonable attorneys’ fees and all other costs
      incurred in commencing or defending such suit. 

    20.
Entire
      Agreement. This Agreement embodies the entire understanding among
      the parties and merges all prior discussions or communications among them,
      and
      no party will be bound by any definitions, conditions, warranties, or
      representations other than as expressly stated in this Agreement or as
      subsequently set forth in a writing signed by the duly authorized
      representatives of all of the parties hereto. 

    21.
No
      Oral Change;
      Amendment. This Agreement may only be changed or modified and any
      provision hereof may only be waived by a writing signed by the party against
      whom enforcement of any waiver, change or modification is sought. This Agreement
      may be amended only in writing by mutual consent of the parties. 

    22.
      Severability. In the event that any provision of this
      Agreement will be void or unenforceable for any reason whatsoever, then such
      provision will be stricken and of no force and effect. The remaining provisions
      of this Agreement will, however, continue in full force and effect, and to
      the
      extent required, will be modified to preserve their validity. 

    23.
Applicable
      Law. This Agreement will be construed as a whole and in accordance
      with its fair meaning. This Agreement will be interpreted in accordance with
      the
      laws of the State of California, and venue for any action or proceedings brought
      with respect to this Agreement will be in the County of Los Angeles in the
      State
      of California. 

    24.
Successors
      and
      Assigns. Each covenant and condition of this Agreement will inure
      to the benefit of and be binding upon the parties hereto, their respective
      heirs, personal representatives, assigns and successors in interest. Without
      limiting the generality of the foregoing sentence, this Agreement will be
      binding upon any successor to the Company whether by merger, reorganization
      or
      otherwise. 

     

    
      
        
        

      

      
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    25.
Legal
      Expense
      Reimbursement. The Company agrees to reimburse the Employee, on
      demand, for all reasonable attorneys’ fees incurred by Employee in connection
      with or relating to the preparation and negotiation of this Agreement.

    26.
      Counterparts. This Agreement may be executed in two
      counterparts, each of which may be deemed an original, but both of which
      together shall constitute one and the same agreement. 

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

     

    
      	
            	
            	
            	
            	
            
	COMPANY:	 	INTERMETRO
              COMMUNICATIONS, INC.
	
            	 	a
              California corporation
	
            	
            	
            
	
            	 	By:	 	
              /s/
                VINCENT
                ARENA

               

            
	
            	 	
            	 	Vincent
              Arena, Chief Financial Officer and
              Director

    

     

    
      	
            
	
              Attest:

            
	
               

              /s/
                JONDEONG

            
	
              Jon
                deOng, Chief Technical
                Officer and Director

            
	
            

    

     

    
      	
            	
            	
            
	EMPLOYEE:	  	
              /s/
                CHARLES
                RICE

               

            
	
            	  	Charles
              Rice
	
            	  	
               

               

            
	
            	  	Street
              Address
	
            	  	
               

               

            
	
            	  	City,
              State and Zip Code

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

       

      EXHIBIT
        A

    

    EMPLOYEE
      PROPRIETARY
      INFORMATION, 

    CONFIDENTIALITY,
      LOYALTY,
      AND NONSOLICITATION 

    AGREEMENT
      

     

     

    
      
         

      

      
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    AMENDMENT
      TO

    EMPLOYMENT
      AGREEMENT

    This
      Amendment to Employment
      Agreement (the “Amendment”) is made as of this 23rd day of June 2006 by and
      between InterMetro Communications, Inc., a California corporation (“IMC”), and
      Charles Rice (“Employee”) with respect to the following facts: 

    R
      E C I T A L
      S

    A.
      IMC and Employee have entered
      into that certain Employment Agreement, dated as of January 1, 2004 (the
“Agreement”). 

    B.
      On or about May 11, 2006, IMC
      filed a Registration Statement on Form S-1 (the “Registration Statement”) with
      the Securities and Exchange Commission (the “Commission”) in connection with the
      initial public offering (the “Offering”) under the Securities Act of 1933, as
      amended (the “Securities Act”), of the common stock of InterMetro
      Communications, Inc., a Delaware corporation (the “Successor Corporation”).

    C.
      In recognition of the benefit
      that the Offering will confer upon Employee, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      Employee agrees, for the benefit of IMC and the Successor Corporation, to amend
      and restate the last sentence of Section 13.3 of the Agreement as set forth
      in
      this Amendment in order to eliminate the accelerated vesting of unvested stock
      options upon the removal of Employee pursuant to Section 13.3 of the Agreement.
      

    D.
      The terms used in this Amendment
      will have the meanings ascribed to them in the Agreement unless otherwise
      defined herein. 

    NOW,
      THEREFORE, for
      one dollar and other good and valuable consideration, THE PARTIES HERETO
      AGREE AS FOLLOWS: 

    1.
Amendment.

    Section
      4 of the Agreement is hereby
      amended and restated as follows: “This Agreement will commence to be effective
      on January 1, 2004 (the “Commencement Date”), and will continue until December
      31, 2010, unless sooner terminated as provided in Section 13 hereof. Thereafter,
      this Agreement will automatically be renewed for consecutive one (1) year
      periods unless either party provides the other party with written notification,
      at least sixty (60) days prior to the expiration of the then current term of
      this Agreement, of its intention not to renew this Agreement.” 

    The
      last sentence of Section 13.3 of
      the Agreement is hereby amended and restated as follows: “Notwithstanding
      anything else herein to the contrary, if the Employee is removed pursuant to
      Section 13.3 of this Agreement, Employee will receive all of the benefits
      provided in 

    Section
      14(iii) of this Agreement
      with respect to all vested stock options owned by Employee as of the date of
      the
      termination, regardless of the terms and conditions of the Company’s Stock
      Option Plan or any existing stock option agreements or any amendments thereto
      overning such options, and all unvested stock options owned by Employee will
      immediately expire.” 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    2.
Effect
      of
      Amendment.

    The
      Agreement will remain in full
      force and effect except as specifically modified by this Amendment. In the
      event
      of any conflict between the Amendment and the Agreement, the terms of this
      Amendment will govern. 

    3.
Counterparts.

    This
      Amendment may be executed
      simultaneously in any number of counterparts, each of which counterparts will
      be
      deemed to be an original and such counterparts will constitute but one and
      the
      same instrument. 

    4.
      Effectiveness.

    This
      Amendment will become effective
      as of the effective date of the Offering. 

    IN
      WITNESS WHEREOF,
      this Amendment is executed as of the date first above written. 

     

    
      	
            	
            	
            	
            	
            
	IMC:	 	INTERMETRO COMMUNICATIONS, INC.
	
            	
            	
            
	
            	 	By:	 	/s/                                    
	
            	 	
            	 	Charles Rice,
              President

    

    Attest:

     

    
      	
            
	
            
	/s/
	Vincent
              Arena, Director

    

    EMPLOYEE:
      

     

    
      	
            
	
            
	/s/
	Charles
              Rice

    

     

     

    
      
        
        

      

      
        -12-EXHIBIT
        10.2

      

      EMPLOYMENT
        AGREEMENT

      

      This
        EMPLOYMENT AGREEMENT (this “Agreement”) is made as of the 1st day of January,
        2004 by and between InterMetro Communications, Inc., a California corporation
        (the “Company”), and Jon deOng, an individual (“Employee”), and is made with
        respect to the following facts:

      

      RE
        ITALS

      

      A.
        The Company and the Employee wish to ensure that the Company will receive
        the
        benefit of Employee’s loyalty and service.

      

      B.
        In order to help ensure that the Company receives the benefit of Employee’s
        loyalty and service, the parties desire to enter into this formal Employment
        Agreement to provide Employee with appropriate compensation arrangements
        and to
        assure Employee of employment stability.

      

      C.
        The parties have entered into this Agreement for the purpose of setting forth
        the terms of employment of the Employee by the Company.

      

      NOW,
        THEREFORE,
        in consideration of the premises and mutual covenants herein
        contained,
        THE PARTIES HERETO AGREE AS FOLLOWS
        :

      

      1.
        Employment of Employee and Duties.
        The Company hereby hires Employee and Employee hereby accepts employment
        upon
        the terms and conditions described in this Agreement. The Employee will be
        the
        Chief Technical Officer of the Company with all of the duties, privileges
        and
        authorities usually attendant upon such office, including but not limited
        to
        responsibility for the day-to-day oversight of the Company’s technical
        operations. Subject to (a) the general supervision of the Chief Executive
        Officer, and (b) the Employee’s duty to report to the Chief Executive
        Officer and to follow Company directives and policies, Employee will have
        all of
        the authority to perform his employment duties for the Company.

      

      2.
        Time and Effort.
        Employee agrees to devote his full working time and attention to the management
        of the Company’s business affairs, the implementation of its strategic plan, as
        determined by the Chief Executive Officer and the Board of Directors, and
        the
        fulfillment of his duties and responsibilities as the Company’s Chief Technical
        Officer. Expenditure of a reasonable amount of time for personal matters
        and
        business and charitable activities will not be deemed to be a breach of this
        Agreement, provided that those activities do not materially interfere with
        the
        services required to be rendered to the Company under this
        Agreement.
 

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

       

        
          

        

      

       

      3.
        The Company’s Authority.
        Employee agrees to comply with the Company’s rules and regulations as adopted by
        the Company’s Chief Executive Officer and Board of Directors regarding
        performance of his duties, and to carry out and perform those orders, directions
        and policies established by the Company with respect to his engagement. Employee
        will promptly notify the Company’s Chief Executive Officer or Board of Directors
        of any objection he has to the Chief Executive Officer’s or the Board’s
        directives and the reasons for such objection.

      

      4.
        Noncompetition by Employee and Proprietary Information, Confidentiality,
        Loyalty, and Nonsolicitation.
        During the term of this Agreement, the Employee will not, directly or
        indirectly, either as an employee, employer, consultant, agent, principal,
        partner, stockholder (in a private company), corporate officer, director,
        or in
        any other individual or representative capacity, engage or participate in
        any
        business that is in competition with the business of the Company or its
        affiliates. Additionally, Employee agrees to execute the Employee Proprietary
        Information, Confidentiality, Loyalty, and Nonsolicitation Agreement attached
        to
        this Agreement as Exhibit A.

      

      5.
        Term of Agreement.
        This Agreement will commence to be effective on January 1, 2004 (the
“Commencement Date”), and will continue until for a period of five years, unless
        sooner terminated as provided in Section 14 hereof. Thereafter, this
        Agreement will automatically be renewed for consecutive one (1) year
        periods unless either party provides the other party with written notification,
        at least sixty (60) days prior to the expiration of the then current term
        of this Agreement, of its intention not to renew this Agreement.

      

      6.
        Compensation.
        During the term of this Agreement, the Company will pay the following
        compensation to Employee:

      

      6.1
        Annual Compensation.
        Employee will be paid a fixed salary of $185,000 per year, payable in two
        installments per month of $7,708 each on the 5th and 20th day of each month,
        commencing for the first period after the Commencement Date of this Agreement.
        Employee will receive an annual 11% increase in said fixed salary effective
        each
        January 1
        st
        during the term of this Agreement.

      

      6.2
        Additional Compensation.
        In addition to the compensation set forth in Sections 6.1 and 6.3 of this
        Agreement, Employee may be paid a bonus or bonuses during each year at a
        target
        annual amount equal to seventy-five percent (75%) of the Employee’s then in
        effect annual salary, as determined at the sole discretion of the Company’s
        Board of Directors based on the Board’s evaluation of the Employee’s definable
        efforts, accomplishments and similar contributions.

      

      6.3
        Stock Incentives.
        On January 2, 2004 the Company will grant to the Employee 250,000 stock
        options to purchase 250,000 shares of the Company’s Common Stock pursuant to the
        Company’s 2004 Stock Option Plan for Directors, Officers, Employees, and Key
        Consultants of InterMetro Communications, Inc. (“Stock Option Plan”) having an
        exercise price of $0.05 per share and an exercise period of ten years after
        the
        date of grant, with a vesting schedule as follows: 20% upon grant and 1/16
        of
        the balance each quarter thereafter until the remaining stock options have
        vested. The stock options granted to Employee pursuant to this Agreement
        will be
        governed by the terms and conditions of the Stock Option Plan and the stock
        option agreement executed by the Company which applies to the options. Upon
        recommendation of the Compensation Committee of the Company’s Board of Directors
        and approval of the Company’s full Board of Directors, the Employee may be
        granted additional stock options to purchase additional stock of the Company
        after the first year of the term of this Agreement.

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

        
          

        

      

       

      7.
        Equipment.
        Employee will receive one laptop computer, one cellular phone, and one wireless
        handheld devise for his exclusive use during his employment with the Company.
        Within thirty (30) days after his termination as a director, officer,
        employee, and consultant of the Company, as the case may be, Employee agrees
        to
        either (i) return such computer, cellular phone, and wireless handheld
        devise to the Company or (ii) purchase such computer, cellular phone, and
        wireless handheld devise from the Company for an amount equal to the then
        fair
        market value of such computer, cellular phone, and wireless handheld
        devise.

      

      8.
        Fringe Benefits.
        Employee will be entitled to all fringe benefits which the Company or its
        subsidiaries may make available from time-to-time for persons with comparable
        positions and responsibilities, as approved by duly adopted resolutions of
        the
        Company’s Board of Directors. Without limitation, such benefits will include
        participation in any life and disability insurance programs, profit incentive
        plans, pension or retirement plans, and bonus plans as are maintained or
        adopted
        from time-to-time by the Company. The Company will also provide Employee
        with
        medical group insurance coverage or equivalent coverage for Employee and
        his
        dependents. The medical insurance coverage will begin on the Commencement
        Date
        and will continue throughout the term of this Agreement.

      

      9.
        Office and Staff.
        In order to enable Employee to discharge his obligations and duties pursuant
        to
        this Agreement, the Company agrees that it will provide suitable office space
        for Employee in the Simi Valley Metropolitan Area, together with all necessary
        and appropriate supporting staff and secretarial assistance, equipment,
        stationery, books and supplies. The Company agrees to provide at its expense
        parking for one vehicle by the Employee at the Company’s executive
        offices.

      

      10.
        Reimbursement of Expenses.
        The Company will reimburse Employee for all reasonable travel, mobile telephone,
        promotional and entertainment expenses incurred in connection with the
        performance of Employee’s duties hereunder. Employee’s reimbursable expenses
        will be paid promptly by the Company upon presentment by Employee of an itemized
        list of invoices describing such expenses. All compensation provided in Sections
        6, 8, and 10 of this Agreement will be subject to customary withholding tax
        and
        other employment taxes, to the extent required by law.

      

      11.
        Vacation.
        Employee will be entitled to three weeks of paid vacation per year or pro
        rata
        portion of each year of service by Employee under this Agreement. The Employee
        will be entitled to the holidays provided in the Company’s established corporate
        policy for employees with comparable duties and
        responsibilities.

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      
        
          

        

         

      

      12.
        Automobile and Electronic Communication Devices.
        Notwithstanding anything else herein to the contrary, the Company will pay
        to
        the Employee a fixed amount equal to (a) $500 per month on the last day of
        each month during the term of this Agreement as reimbursement to the Employee
        on
        a nonaccountable basis of all expenses incurred by the Employee for the use
        of
        his automobile, including but not limited to depreciation, repairs and
        insurance, and (b) $300 per month on the last day of each month during the
        term of this Agreement as reimbursement to the Employee on a nonaccountable
        basis for all expenses incurred by the Employee for the use of his electronic
        communication devices.

      

      13.
        Arbitration.
        Any dispute under this Agreement will be resolved by binding arbitration
        conducted in accordance with the rules and procedures of the American
        Arbitration Association as they are then in effect in the County of Los Angeles,
        State of California. In order to select an arbitrator, each party to the
        dispute
        will select an arbitrator of its choice, and those selected arbitrators will
        then select by mutual agreement a single arbitrator for the proceeding. The
        decision of the arbitrator shall be final and binding on the parties to this
        Agreement, and judgment thereon may be entered in the Superior Court for
        the
        County of Los Angeles or any other court having jurisdiction. Each party
        to this
        Agreement will advance one-half of the arbitrator’s fees; however, all costs of
        the arbitration proceeding to enforce this Agreement, including attorneys’ fees
        and witness expenses, shall be paid by the party against whom the arbitrator
        rules. It is expressly agreed that the parties to any such arbitration may
        take
        discovery as contemplated and provided for by California Code of Civil Procedure
        §1283.05. Notwithstanding anything herein to the contrary, the parties hereto
        will not be required to submit a claim to arbitration if the claim is for
        temporary or preliminary equitable or injunctive relief that could not
        practicably be heard in a timely fashion through the arbitration
        process.

      

      14.
        Termination.
        This Agreement may be terminated in the following manner and not
        otherwise:

      

      14.1
        Mutual Agreement.
        This Agreement may be terminated by the mutual written agreement of the Company
        and Employee to terminate.

      

      14.2
        Termination by Employee for Breach.
        Employee may at his option and in his sole discretion terminate this Agreement
        for the material breach by the Company of any term or provision of this
        Agreement. In the event of such termination, Employee will give the Company
        thirty (30) day’s prior written notice.

      

      14.3
        Termination by the Company for Breach.
        The Company may at its option also terminate this Agreement in the event
        that
        the Employee acts in gross negligence in the performance of his duties under
        this Agreement which results in a breach of his fiduciary duty to the Company,
        to the Board of Directors or to the Company’s shareholders; provided, however,
        that the Company will give the Employee written notice of specific instances
        for
        the basis of any termination of this Agreement by the Company pursuant to
        Section 14.3 of this Agreement. Employee will have a period of thirty
        (30) days after said notice in which to cease the alleged violations before
        the Company may terminate this Agreement. If Employee ceases to commit the
        alleged violations within said thirty (30) day period, the Company may not
        terminate this Agreement pursuant to this Section. If Employee continues
        to
        commit the alleged violations after said thirty (30) day period, the
        Company may terminate this Agreement immediately upon written notification
        to
        Employee. Notwithstanding anything else herein to the contrary, if the Employee
        is removed pursuant to Section 14.3 of this Agreement, the Employee will
        receive all of the benefits provided in Section 15(iii) of this Agreement,
        regardless of the terms and conditions of the Company’s Stock Option Plan or any
        existing stock option agreements or any amendments thereto governing the
        options
        described in Sections 6.3 or 15(iii) of this Agreement.

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

        
          

        

      

       

      14.4
        Termination Upon Death.
        This Agreement will terminate upon the death of the Employee and Employee’s
        estate shall be entitled to the payment positions set forth in Section 15
        of this Agreement.

      

      14.5
        Termination Upon the Disability of the Employee.
        This Agreement will terminate upon the disability of the Employee. As used
        in
        the previous sentence, the term “disability” means the complete disability to
        discharge Employee’s duties and responsibilities for a continuous period of not
        less than six months during any calendar year. Any physical or mental disability
        which does not prevent Employee from discharging his duties and responsibilities
        in accordance with usual standards of conduct as determined by the Company
        in
        its reasonable opinion will not constitute a disability under this Agreement.
        In
        the event of a termination of the Employee’s employment by reason of the
        Employee’s disability, Employee shall be entitled to the payment positions set
        forth in Section 15 of this Agreement.

      

      14.6
        Non Renewal of Term Due to Change in Control.
        Delivery by the Company of a notice of non-renewal of the term of this Agreement
        following a change in control of the Company will be deemed to be a termination
        subject to the severance payment positions set forth in Section 15 of this
        Agreement.

      

      14.7
        Other Termination by Employee.
        If this Agreement is terminated by Employee in writing for a reason other
        than
        the Company’s breach of this Agreement (i.e. not for cause) then
        (a) Employer will not be entitled to assert any claim against the Employee
        for consequential or indirect damages or for lost profits as a result of
        the
        termination; and (b) Employee will not be entitled to any rights set forth
        in Section 15 of this Agreement except that Employee will be entitled to
        the right to exercise vested options for a period of 90 days after the date
        of
        the written notification of termination by the Employee.

      

      15.
        Improper Termination.
        If this Agreement is terminated by Employee for any reason pursuant to
        Section 14.2 of this Agreement or by the Company in any manner except
        specifically in accordance with Section 14.1 or 14.3 of this Agreement,
        then (i) the Company will immediately pay to the Employee a lump sum
        payment equal to the greater of (a) the sum of the Employee’s entire annual
        compensation and accrued but unpaid bonus (if any, with respect to bonus)
        payable through the end of the term of this Agreement pursuant to Sections
        6.1
        and 6.2 herein, respectively or (b) the Employee’s annual base compensation
        as set forth in Section 6.1 herein , (ii) Employee will be entitled to
        all of the benefits under Section 8 of this Agreement, as amended, through
        the end of the term of this Agreement, and (iii) all unvested stock options
        owned by Employee will immediately vest, Employee will be entitled to exercise
        all vested stock options which he owns for the entire remaining exercise
        period
        of the stock options as set forth in Section 6.3 of this Agreement, no such
        stock options will terminate prior to said expiration dates, and no “severance”
will be deemed to have occurred under the Company’s Stock Option Plan or under
        existing Stock Option Agreements covering said stock options. It is specifically
        agreed that in such event Employee will have no duty to mitigate his damages
        by
        seeking comparable, inferior or different employment.

      

        
          
            
            

          

          
            -5-

            
              

            

          

          
            
            

          

        

        
          

        

      

       

      16.
        Indemnification of Employee.
        Pursuant to the provisions and subject to the limitations of the California
        Corporations Code, and in particular Sections 204 and 317 therein, the Company
        will indemnify and hold Employee harmless as provided in Sections 16.1, 16.2
        and
        16.3 of this Agreement. The Company will, upon the request of Employee, assume
        the defense and directly bear all of the expense of any action or proceedings
        which may arise for which Employee is entitled to indemnification pursuant
        to
        this Section. The Company’s obligations to indemnify and hold Employee harmless
        as provided in Sections 16.1, 16.2 and 16.3 of this Agreement shall survive
        the
        termination of this Agreement and continue for a period of five years
        thereafter.

      

      16.1
        Indemnification of Employee for Actions by Third
        Parties.
        The Company hereby agrees to indemnify and hold Employee harmless from any
        liability, claims, fines, damages, losses, expenses, judgments or settlements
        actually incurred by him, including but not limited to reasonable attorneys’
fees and costs actually incurred by him as they are incurred, as a result
        of
        Employee being made at any time a party to, or being threatened to be made
        a
        party to, any proceeding (other than an action by or in the right of the
        Company, which is addressed in Section 16.2 of this Agreement), relating to
        actions Employee takes within the scope of his employment as the Chief Technical
        Officer of the Company or in any other employment capacity, or in his role
        as a
        director of the Company, provided that Employee acted in good faith and in
        a
        manner he reasonably believed to be in the best interest of the Company and,
        in
        the case of a criminal proceeding, had no reasonable cause to believe his
        conduct was unlawful.

      

      16.2
        Indemnification of Employee for Actions in the Right of the
        Company.
        The Company hereby agrees to indemnify and hold Employee harmless from any
        liability, claims, damages, losses, expenses, judgments or settlements actually
        incurred by him, including but not limited to reasonable attorneys’ fees and
        costs actually incurred by him as they are incurred, as a result of Employee
        being made a party to, or being threatened to be made a party to, any proceeding
        by or in the right of the Company to procure a judgment in its favor by reason
        of any action taken by Employee as an officer, director or agent of the Company,
        provided that Employee acted in good faith in a manner he reasonably believed
        to
        be in the best interests of the Company and its shareholders, and provided
        further, that no indemnification by the Company will be required pursuant
        to
        this Section 16.2 (i) for acts or omissions that involve intentional
        misconduct or a knowing and culpable violation of law, (ii) for acts or
        omissions that Employee believed to be contrary to the best interests of
        the
        Company or its shareholders or that involve the absence of good faith on
        the
        part of Employee, (iii) for any transaction from which Employee derived an
        improper personal benefit, (iv) for acts or omissions that show a reckless
        disregard by Employee of his duties to the Company or its shareholders in
        circumstances in which Employee was aware, or should have been aware, in
        the
        ordinary course of performing his duties, of a risk of serious injury to
        the
        Company or its shareholders, (v) for acts or omissions that constitute an
        unexcused pattern of inattention that amounts to an abdication of Employee’s
        duties to the Company or its shareholders, or (vi) for any other act by
        Employee for which Employee is not permitted to be indemnified under the
        California Corporations Code. Furthermore, the Company has no obligation
        to
        indemnify Employee pursuant to this Section 16.2 in any of the following
        circumstances:

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

      
        
          

        

         

      

      A.
        In respect of any claim, issue, or matter as to which Employee is adjudged
        to be
        liable to the Company in the performance of his duties to the Company and
        its
        shareholders, unless and only to the extent that the court in which such
        action
        was brought determines upon application that, in view of all the circumstances
        of the case, he is fairly and reasonably entitled to indemnity for the expenses
        and then only in the amount that the court will determine.

      

      B.
        In the event of the application of Section 16.2(A), then for amounts paid
        in settling or otherwise disposing of a threatened or pending action without
        court approval.

      

      C.
        In the event of the application of Section 16.2(A), then for expenses
        incurred in defending a threatened or pending action which is settled or
        otherwise disposed of without court approval.

      

      16.3
        Reimbursement.
        In the event that it is determined by a trier of fact that Employee is not
        entitled to indemnification by the Company pursuant to Sections 16.1 or 16.2
        of
        this Agreement, then Employee is obligated to reimburse the Company for all
        amounts paid by the Company on behalf of Employee pursuant to the
        indemnification provisions of this Agreement. In the event that Employee
        is
        successful on the merits in the defense of any proceeding referred to in
        Sections 16.1 or 16.2 of this Agreement, or any related claim, issue or matter,
        then the Company will indemnify and hold Employee harmless from all fees,
        costs
        and expenses actually incurred by him in connection with the defense of any
        such
        proceeding, claim, issue or matter.

      

      17.
        Assignability of Benefits.
        Except to the extent that this provision may be contrary to law, no assignment,
        pledge, collateralization or attachment of any of the benefits under this
        Agreement will be valid or recognized by the Company. Except as provided
        by law,
        payment provided for by this Agreement will not be subject to seizure for
        payment of any debts or judgments against the Employee, nor will the Employee
        have any right to transfer, modify, anticipate or encumber any rights or
        benefits hereunder; provided that any stock issued by the Company to the
        Employee pursuant to this Agreement will not be subject to Section 17 of
        this Agreement.

      

      18.
        Directors’ and Officers’ Liability Insurance.
        The Company will utilize its best efforts in good faith to purchase directors’
and officers’ liability insurance for the officers and directors of the Company,
        which would include the same coverage for Employee. The Company covenants
        to
        maintain in effect a directors’ and officers’ liability insurance policy on the
        same terms and conditions as applicable to all other officers and directors
        of
        the Company during the term of this Agreement and for a period of five years
        after the termination of this Agreement.

      

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

      
        
          

        

         

      

      19.
        Notice.
        Except as otherwise specifically provided, any notices to be given hereunder
        will be deemed given upon personal delivery, air courier or mailing thereof,
        if
        mailed by certified mail, return receipt requested, to the following addresses
        (or to such other address or addresses as will be specified in any notice
        given):

       

      
        	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                In
                  case of the Company:

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                InterMetro
                  Communications, Inc.

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Attention:
                  Chairman of the Board of Directors

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                In
                  case of the Employee:

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                Mr. Jon
                  deOng

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                The
                  address listed below Mr. deOng’s signature to this
                  Agreement.

              	
                 

              	
                 

              

      

      

      20.
        Attorneys’ Fees.
        In the event that any of the parties must resort to legal action in order
        to
        enforce the provisions of this Agreement or to defend such suit, the prevailing
        party will be entitled to receive reimbursement from the nonprevailing party
        for
        all reasonable attorneys’ fees and all other costs incurred in commencing or
        defending such suit.

      

      21.
        Entire Agreement.
        This Agreement embodies the entire understanding among the parties and merges
        all prior discussions or communications among them, and no party will be
        bound
        by any definitions, conditions, warranties, or representations other than
        as
        expressly stated in this Agreement or as subsequently set forth in a writing
        signed by the duly authorized representatives of all of the parties
        hereto.

      

      22.
        No Oral Change; Amendment.
        This Agreement may only be changed or modified and any provision hereof may
        only
        be waived by a writing signed by the party against whom enforcement of any
        waiver, change or modification is sought. This Agreement may be amended only
        in
        writing by mutual consent of the parties.

      

      23.
        Severability.
        In the event that any provision of this Agreement will be void or unenforceable
        for any reason whatsoever, then such provision will be stricken and of no
        force
        and effect. The remaining provisions of this Agreement will, however, continue
        in full force and effect, and to the extent required, will be modified to
        preserve their validity.

      

      24.
        Applicable Law.
        This Agreement will be construed as a whole and in accordance with its fair
        meaning. This Agreement will be interpreted in accordance with the laws of
        the
        State of California, and venue for any action or proceedings brought with
        respect to this Agreement will be in the County of Los Angeles in the State
        of
        California.

      

      25.
        Successors and Assigns.
        Each covenant and condition of this Agreement will inure to the benefit of
        and
        be binding upon the parties hereto, their respective heirs, personal
        representatives, assigns and successors in interest. Without limiting the
        generality of the foregoing sentence, this Agreement will be binding upon
        any
        successor to the Company whether by merger, reorganization or
        otherwise.

      

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

      
        
          

        

         

      

      26.
        Legal Expense Reimbursement.
        The Company agrees to reimburse the Employee, on demand, for all reasonable
        attorneys’ fees incurred by Employee in connection with or relating to the
        preparation and negotiation of this Agreement.

      

      27.
        Counterparts.
        This Agreement may be executed in two counterparts, each of which may be
        deemed
        an original, but both of which together shall constitute one and the same
        agreement.

      

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

       

      
        	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                COMPANY:

              	
                 

              	
                INTERMETRO
                  COMMUNICATIONS, INC.

              
	
                 

              	
                 

              
	
                 

              	
                 

              	
                a
                  California corporation

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                By:

              	
                 

              	
                /s/
                  CHARLES
                  RICE

                 

                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                Charles
                  Rice, Chief Executive Officer and President

              
	
                 

              	
                 

              	
                 

              
	
                Attest:

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

                 

                /s/
                  VINCENT
                  ARENA

                 

                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                Vincent
                  Arena, Chief Financial Officer and Director

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                EMPLOYEE:

              	
                 

              	
                 

              	
                 

              	
                /s/
                  JONDEONG

                 

                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                Jon
                  deOng

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                Street
                  Address

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                City,
                  State and Zip Code

              

      

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

        
          

        

      

       

      EXHIBIT
        A

      

      EMPLOYEE
        PROPRIETARY INFORMATION,

      

      CONFIDENTIALITY,
        LOYALTY, AND NONSOLICITATION

      

      AGREEMENT

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          

        

         

      

      AMENDMENT
        TO

      

      EMPLOYMENT
        AGREEMENT

      

      This
        Amendment to Employment Agreement (the “Amendment”) is made as of this 23rd day
        of June 2006 by and between InterMetro Communications, Inc., a California
        corporation (“IMC”), and Jon deOng (“Employee”) with respect to the following
        facts:

      

      R
        E C I T A L S

      

      A.
        IMC and Employee have entered into that certain Employment Agreement, dated
        as
        of January 1, 2004 (the “Agreement”).

      

      B.
        On or about May 11, 2006, IMC filed a Registration Statement on Form S-1
        (the
“Registration Statement”) with the Securities and Exchange Commission (the
“Commission”) in connection with the initial public offering (the “Offering”)
        under the Securities Act of 1933, as amended (the “Securities Act”), of the
        common stock of InterMetro Communications, Inc., a Delaware corporation (the
        “Successor Corporation”).

      

      C.
        In recognition of the benefit that the Offering will confer upon Employee,
        and
        for other good and valuable consideration, the receipt and sufficiency of
        which
        are hereby acknowledged, Employee agrees, for the benefit of IMC and the
        Successor Corporation, to amend and restate the last sentence of Section
        14.3 of
        the Agreement as set forth in this Amendment in order to eliminate the
        accelerated vesting of unvested stock options upon the removal of Employee
        pursuant to Section 14.3 of the Agreement.

      

      D.
        The terms used in this Amendment will have the meanings ascribed to them
        in the
        Agreement unless otherwise defined herein.

      

      NOW,
        THEREFORE,
        for one dollar and other good and valuable consideration,
        THE PARTIES HERETO AGREE AS FOLLOWS:

      

      1.
        Amendment.

      

      Section
        5 of the Agreement is hereby amended and restated as follows: “This Agreement
        will commence to be effective on January 1, 2004 (the “Commencement Date”), and
        will continue until December 31, 2010, unless sooner terminated as provided
        in
        Section 14 hereof. Thereafter, this Agreement will automatically be renewed
        for
        consecutive one (1) year periods unless either party provides the other party
        with written notification, at least sixty (60) days prior to the expiration
        of
        the then current term of this Agreement, of its intention not to renew this
        Agreement.”

      

      The
        last sentence of Section 14.3 of the Agreement is hereby amended and restated
        as
        follows: “Notwithstanding anything else herein to the contrary, if the Employee
        is removed pursuant to Section 14.3 of this Agreement, Employee will receive
        all
        of the benefits provided in Section 15(iii) of this Agreement with respect
        to
        all vested stock options owned by Employee as of the date of the termination,
        regardless of the terms and conditions of the Company’s Stock Option Plan or any
        existing stock option agreements or any amendments thereto governing such
        options, and all unvested stock options owned by Employee will immediately
        expire.”

      

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

       

        
          

        

      

       

      2.
        Effect of Amendment.

      

      The
        Agreement will remain in full force and effect except as specifically modified
        by this Amendment. In the event of any conflict between the Amendment and
        the
        Agreement, the terms of this Amendment will govern.

      

      3.
        Counterparts.

      

      This
        Amendment may be executed simultaneously in any number of counterparts, each
        of
        which counterparts will be deemed to be an original and such counterparts
        will
        constitute but one and the same instrument.

      

      4.
        Effectiveness.

      

      This
        Amendment will become effective as of the effective date of the
        Offering.

      

      IN
        WITNESS WHEREOF,
        this Amendment is executed as of the date first above written.

       

      
        	
                IMC:

              	
                 

              	
                INTERMETRO COMMUNICATIONS, INC.

              
	
                 

              	
                 

              	
                By:

              	
                 

              	
                /s/                                    

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                Charles Rice,
                  President

              

      

      

      Attest:

      

       

      
        	
                /s/                                                              
                  

              
	
                Vincent
                  Arena, Director

              

      

       

      
 

      EMPLOYEE:

      

       

      
        	
                
                  /s/                                                              
                    

                

              
	
                Jon
                  deOng

              

      

       

       

       

      
        
          
          

        

        
          -2-

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