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    EXHIBIT
      10.107.3

    
       

      EMPLOYMENT
        AGREEMENT

       

      This
        Employment Agreement (this "Agreement") is executed as of ___________ ____,
        2007
        by NTS Communications, Inc. (the "Employer"), and Jerry Hoover, an individual
        (the "Executive") to be effective on the date of consummation of the
        transactions contemplated by the Stock Purchase Agreement (as defined herein)
        (the “Effective Date”).

       

      RECITALS

       

      The
        Executive is currently the Executive Vice President – Chief Financial Officer
        and a shareholder of the Employer.  Concurrently with the execution
        and delivery of this Agreement, XFone, Inc. (“XFone” or “Parent”) is purchasing
        the issued and outstanding common stock of NTS Communications, Inc. pursuant
        to
        and in accordance with that certain Stock Purchase Agreement dated ___________
        ____, 2007 among the Company, the Employer, and the shareholders of the Company
        (the "Stock Purchase Agreement").  The Executive's continued
        employment with the Employer after the stock purchase and the Employee's
        execution of this Agreement is a condition to the consummation of the stock
        purchase pursuant to the Stock Purchase Agreement by XFone.  The
        Employer agrees to employ the Executive, and the Executive wishes to accept
        such
        continued employment, upon the terms and conditions set forth in this
        Agreement.

       

      AGREEMENT

       

      The
        parties, intending to be legally bound, agree as follows:

       

      1.  DEFINITIONS

       

      For
        the
        purposes of this Agreement, the following terms have the meanings specified
        or
        referred to in this Section 1.

       

      "Agreement"--this
        Employment Agreement, as amended from time to time.

       

      "Compensation"--Salary
        and Benefits.

       

      "Benefits"--as
        defined in Section 3.1(b).

       

      "Board
        of Directors"--the board of directors of the Employer.

       

      "Confidential
        Information" means any and all of the following with respect to the
        Employer or XFone, their Subsidiaries or any of their affiliates (the “XFone
        Companies”):

       

      (a)  trade
        secrets concerning the business and affairs of the XFone Companies, product
        specifications, data, know-how, formulae, compositions, processes, designs,
        sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
        current, and planned research and development, current and planned manufacturing
        or distribution methods and processes, customer lists, current and anticipated
        customer requirements, price lists, market studies, business plans, computer
        software and programs (including object code and source code), computer software
        and database technologies, systems, structures, and architectures (and related
        formulae, compositions, processes, improvements, devices, know-how, inventions,
        discoveries, concepts, ideas, designs, methods and information, any other
        confidential or proprietary information or data), and any other information,
        however documented, that is a trade secret within the meaning of any applicable
        federal or state laws; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  information
        concerning the business and affairs of the XFone Companies (which includes
        but
        is not limited to historical financial statements, financial projections
        and
        budgets, historical and projected sales, capital spending budgets and plans,
        the
        names and backgrounds of key personnel, personnel training and techniques
        and
        materials, interconnect agreements, supply sources, marketing, production
        or
        merchandising systems or plans), however documented; and

       

      (c)  notes,
        analysis, compilations, studies, summaries, and other material prepared by
        or
        for the XFone Companies containing or based, in whole or in part, on any
        information included in the foregoing.

       

      "Disability"—as
        defined in Section 6.4.

       

      "Effective
        Date"--the date stated in the first paragraph of the
        Agreement.

       

      "Executive
        Invention"--any idea, invention, technique, modification, process,
        or improvement (whether patentable or not), any industrial design (whether
        registerable or not), any mask work, however fixed or encoded, that is suitable
        to be fixed, embedded or programmed in a semiconductor product (whether
        recordable or not), and any work of authorship (whether or not copyright
        protection may be obtained for it) created, conceived, or developed by the
        Executive, either solely or in conjunction with others, during the Employment
        Period with Employer or any predecessor or successor of the Employer, or
        a
        period that includes a portion of the Employment Period, that relates in
        any way
        to, or is useful in any manner in, the business then being conducted or proposed
        to be conducted by the Employer, and any such item created by the Executive,
        either solely or in conjunction with  others, following termination of
        the Executive's employment with the Employer, that is based upon or uses
        Confidential Information.

       

      "Employment
        Period"--the term of the Executive's employment under this
        Agreement, as the same may be extended and as used herein the term "Employment
        Year" means each twelve month period occurring during the employment period.
        "Employment Year 1" shall mean the first twelve months of employment from
        the
        Effective Date, "Employment Year 2" shall mean the 12 month period following
        Employment Year 1, "Employment Year 3" shall mean the 12 month period following
        Employment Year 2, "Employment Year 4" shall mean the 12 month period following
        Employment Year 3, and "Employment Year 5" shall mean the 12 month period
        following Employment Year 4.

       

      "Fiscal
        Year"--the Employer's fiscal year, as it exists on the Effective
        Date or as changed from time to time.

       

      "For
        cause"--as defined in Section 6.2.

       

      "For
        good reason"--as defined in Section 6.3.

       

      "Parent
        Common Stock" shall mean shares of the common stock of the
        Parent.

       

      "Person"--any
        individual, corporation (including any non-profit corporation), general or
        limited partnership, limited liability company, joint venture, estate, trust,
        association, organization, or governmental body.

       

      "Post-Employment
        Period"--as defined in Section 8.2.

       

      "Proprietary
        Items"--as defined in Section 7.2(a)(iv).

       

      "Salary"--as
        defined in Section 3.1(a).

       

      “Subsidiaries”–
        shall mean, with respect to any Person (the “parent”) at any date, any
        corporation, limited liability company, partnership, association or other
        entity
        the accounts of which would be consolidated with those of the parent in the
        parent’s consolidated financial statements if such financial statements were
        prepared in accordance with GAAP as of such date, as well as any other
        corporation, limited liability company, partnership, association or other
        entity
        of which securities or other ownership interests representing more than 50%
        of
        the equity securities or more than 50% of the voting securities or, in the
        case
        of a partnership, more than 50% of the general partnership interests are,
        as of
        such date, owned, controlled or held, directly or indirectly, by one or more
        of
        the parent and its Subsidiaries.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.  EMPLOYMENT
        TERMS AND DUTIES

       

      2.1  EMPLOYMENT

       

      The
        Employer hereby employs the Executive, and the Executive hereby accepts
        employment by the Employer, upon the terms and conditions set forth in this
        Agreement.

       

      2.2  TERM

       

      Subject
        to the provisions of Section 6, the term of the Executive's employment under
        this Agreement will be five (5) years, beginning on the Effective Date and
        ending on the fifth anniversary of the Effective Date.

       

      2.3  DUTIES

       

      The
        Executive will have such duties as are assigned or delegated to the Executive
        by
        the Board of Directors or Chairman of the Board, and will initially serve
        as
        Executive Vice President – Chief Financial Officer of the
        Employer.  The Executive will devote his entire business time,
        attention, skill, and energy exclusively to the business of the Employer,
        will
        use his best efforts to promote the success of the Employer's business, and
        will
        cooperate fully with the Board of Directors in the advancement of the best
        interests of the Employer.  If the Executive is elected as a director
        of the Employer or as a director or officer of any of the XFone Companies,
        the
        Executive will fulfill his duties as such director or officer without additional
        compensation.

       

      3.  COMPENSATION

       

      (a)  Salary.  The
        Executive will be paid an annual salary of $243,840.00 for Employment Year
        1 and
        the Salary for each employment year thereafter shall be set by the Board
        of
        Directors of the Employer which in no event shall be less than the Salary
        for
        Employment Year 1 (the "Salary").  The Salary will be payable in equal
        periodic installments according to the Employer's customary payroll practices,
        but no less frequently than monthly, and shall be subject to all applicable
        withholding and other applicable taxes as required by law.

       

      (b)  Benefits.  The
        Executive will, during the Employment Period, be permitted to participate
        in
        such life insurance, hospitalization, major medical, and other Executive
        benefit
        plans of the Employer that may be in effect from time to time, to the extent
        the
        Executive is eligible under the terms of those plans (collectively, the
        "Benefits"); provided that such Benefits will be substantially similar to
        those
        enjoyed by the Employee under the terms of his employment with the Company
        as of
        the Effective Date.

       

      (c)  Bonus.  On
        the Effective Date, Executive will receive a one-time cash signing bonus
        in the
        amount of $243,840.00.  Executive acknowledges that this signing bonus
        paid by Employer is in lieu of any “stay pay” bonuses previously approved by the
        board of the Employer, and by accepting the signing bonus Executive agrees
        to
        forego any such “stay pay” bonuses previously approved by the
        Employer.

       

      (d)  Stock
        Option Plan.  The Executive will receive options to purchase
        Parent Common Stock as set forth below:

       

      
        	
                (i)  

              	
                On
                  the Effective Date, the Employee shall be granted fully vested
                  options
                  with a term of five years for 400,000 shares of Parent Common Stock
                  with a
                  strike price of 10% above the average closing price for the prior
                  ten
                  trading days immediately prior to the date of execution of the
                  Stock
                  Purchase Agreement; and

              

      

       

      
        	
                (ii)  

              	
                At
                  the end of the Second Employment Year, the Employee shall be granted
                  fully
                  vested options with a term of five years for an additional 267,000
                  shares
                  of the Parent Common Stock with a strike price of $5.00 per
                  share.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.  FACILITIES
        AND EXPENSES

       

      The
        Employer will furnish the Executive office space, equipment, supplies, and
        such
        other facilities and personnel as the Employer deems necessary or appropriate
        for the performance of the Executive's duties under this Agreement.

       

      5.  VACATIONS
        AND HOLIDAYS

       

      The
        Executive will be entitled to four weeks' paid vacation each Employment Year
        in
        accordance with the vacation policies of the Employer in effect for its
        executive officers from time to time. Vacation must be taken by the Executive
        at
        such time or times as approved by the Chairman of the Board. The Executive
        will
        also be entitled to the paid holidays set forth in the Employer's policies.
        Up
        to ten vacation days during any Employment Year that are not used by the
        Executive during such Employment Year may be used in any subsequent Employment
        Year.  The Executive shall be allowed to keep and use 61 accrued sick
        days that have been earned during the course of his employment with the Company
        prior to the execution date of this Agreement.

       

      6.  TERMINATION

       

      6.1  EVENTS
        OF
        TERMINATION

       

      The
        Employment Period, the Executive's Compensation, and any and all other rights
        of
        the Executive under this Agreement or otherwise as an Executive of the Employer
        will terminate (except as otherwise provided in this Section 6):

       

      (a)  upon
        the
        death of the Executive;

       

      (b)  for
        cause
        (as defined in Section 6.2), immediately upon notice from the Employer to
        the
        Executive, or at such later time as such notice may specify;

       

      (c)  for
        good
        reason (as defined in Section 6.3) upon not less than thirty days' prior
        notice
        from the Executive to the Employer;

       

      (d)  upon
        termination of employment by Executive for any reason other than for good
        reason
        (as defined in Section 6.3); or

       

      (e)  upon
        the
        disability of the Executive (as defined in Section 6.4).

       

      6.2  DEFINITION
        OF "FOR CAUSE"

       

      For
        purposes of Section 6.1, the phrase "for cause" means: (a) the Executive's
        breach of this Agreement which remains uncorrected for 30 days following
        notice
        from the Employer; (b) the Executive's failure to adhere to any written
        Employer policy if the Executive has been given a reasonable opportunity
        to
        comply with such policy or cure the failure to comply (which reasonable
        opportunity must be granted during the ten-day period preceding termination
        of
        this Agreement); (c) the appropriation (or attempted appropriation) of a
        material business opportunity of the Employer, including attempting to secure
        or
        securing any personal profit in connection with any transaction entered into
        on
        behalf of the Employer; (d) the misappropriation (or attempted
        misappropriation) of any of the Employer's funds or property; or (e) after
        the Execution Date hereof, the conviction of, the indictment for (or its
        procedural equivalent), or the entering of a guilty plea or plea of no contest
        with respect to, a felony, the equivalent thereof, or any other crime with
        respect to which imprisonment is a possible punishment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.3  DEFINITION
        OF "FOR GOOD REASON"

       

      For
        purposes of Section 6.1, the phrase "for good reason" means the Employer's
        material breach of this Agreement which is not cured within 30 days from
        the
        date of notice from the Executive.

       

      6.4  DEFINITION
        OF "DISABILITY"

       

      For
        purposes of Section 6.1, the Executive will be deemed to have a
        "disability" if, for physical or mental reasons, the Executive is unable
        to
        perform the Executive's duties under this Agreement for 60 consecutive calendar
        days or more or 90 calendar days or more during any twelve month period,
        as
        determined in accordance with this Section 6.4. The disability of the
        Executive will be determined by a medical doctor selected by written agreement
        of the Employer and the Executive upon the request of either party by notice
        to
        the other. If the Employer and the Executive cannot agree on the selection
        of a
        medical doctor, each of them will select a medical doctor and the two medical
        doctors will select a third medical doctor who will determine whether the
        Executive has a disability. The determination of the medical doctor selected
        under this Section 6.4 will be binding on both parties. The Executive must
        submit to a reasonable number of examinations by the medical doctor making
        the
        determination of disability under this Section 6.4, and the Executive hereby
        authorizes the disclosure and release to the Employer of such determination
        and
        all supporting medical records. If the Executive is not legally competent,
        the
        Executive's legal guardian or duly authorized attorney-in-fact will act in
        the
        Executive's stead, under this Section 6.4, for the purposes of submitting
        the
        Executive to the examinations, and providing the authorization of disclosure,
        required under this Section 6.4.

       

      6.5  TERMINATION
        PAY

       

      Effective
        upon the termination of this Agreement, the Employer will be obligated to
        pay
        the Executive (or, in the event of his death, his designated beneficiary
        as
        defined below) only such compensation as is provided in this Section 6.5,
        and in
        lieu of all other amounts and in settlement and complete release of all claims
        the Executive may have against the Employer. For purposes of this Section
        6.5,
        the Executive's designated beneficiary will be such individual beneficiary
        or
        trust, located at such address, as the Executive may designate by notice
        to the
        Employer from time to time or, if the Executive fails to give notice to the
        Employer of such a beneficiary, the Executive's estate. Notwithstanding the
        preceding sentence, the Employer will have no duty, in any circumstances,
        to
        attempt to open an estate on behalf of the Executive, to determine whether
        any
        beneficiary designated by the Executive is alive or to ascertain the address
        of
        any such beneficiary, to determine the existence of any trust, to determine
        whether any person or entity purporting to act as the Executive's personal
        representative (or the trustee of a trust established by the Executive) is
        duly
        authorized to act in that capacity, or to locate or attempt to locate any
        beneficiary, personal representative, or trustee.

       

      (a)  Termination
        by the Executive for Good Reason.  If the Executive terminates
        this Agreement for good reason, the Employer will pay the Executive the
        Executive's Salary for the remainder of the term of this Agreement (the
        "Remainder Term") as and when such salary would otherwise become due and
        payable.  Notwithstanding the preceding sentence, if the Executive
        obtains other employment or becomes self-employed as a consultant or otherwise
        prior to the end of the Remainder Term, he must promptly give notice thereof
        to
        the Employer, and the Salary payments under this Agreement for any period
        after
        the Executive obtains such other employment will be reduced by the amount
        of the
        cash compensation received and to be received by the Executive from the
        Executive's other employment for services performed during such
        period.

       

      (b)  Termination
        by the Employer for Cause or Termination by Executive without Good
        Reason.  If the Executive terminates his employment for any reason
        other than for good reason (as defined in Section 6.3), the Executive will
        be
        entitled to receive his Salary only through the date such termination is
        effective and any unexercised vested options for Parent Common Stock and
        rights
        to receive any additional options for Parent Common Stock shall be
        cancelled.  If the Employer terminates this Agreement for cause, the
        Executive will be entitled to receive his Salary through the date such
        termination is effective and any option for Parent Common Stock issued in
        any
        year subsequent to Employment Year 1 shall be cancelled.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  Termination
        upon Death/Expiration.  If this Agreement is terminated because of
        the Executive's death, the Executive will be entitled to receive his Salary
        through the end of the calendar month in which his death occurs and any right
        to
        receive any additional options for Parent Stock shall be
        cancelled.  If this Agreement expires after the performance for the
        full term hereof and the Employer and Employee can not agree on the terms
        for
        the extension of this Agreement or a new employment agreement to replace
        this
        Agreement, and the Employee terminates employment, then in such event the
        Employee will be entitled to receive him salary for a period of three (3)
        months
        following the date of such termination as severance pay.

       

      (d)  Termination
        Upon Disability.  If this Agreement is terminated by either party
        as a result of the Executive's disability, as determined under Section 6.4,
        the
        Employer will pay the Executive his Salary through the remainder of the calendar
        month during which such termination is effective and any right to receive
        any
        additional options for Parent Stock shall be cancelled.

       

      (e)  Benefits.  The
        Executive's accrual of, or participation in plans providing for, the Benefits
        will cease at the effective date of the termination of this Agreement, and
        the
        Executive will be entitled to accrued Benefits pursuant to such plans only
        as
        provided in such plans.  The Executive will only receive, as part of
        his termination pay pursuant to this Section 6, any payment or other
        compensation for any vacation, holiday, sick leave, or other leave unused
        on the
        date the notice of termination is given under this Agreement if the termination
        is due to the death or disability of Executive or termination by the Executive
        for Good Reason per Section 6.3.

       

      6.6  TERMINATION
        DAMAGES PAYABLE BY EXECUTIVE

       

      The
        Executive and the Employer agree that it is impossible to determine with
        any
        reasonable accuracy the amount of the prospective damages to the Employer
        if the
        Executive's employment is terminated for any reason other than death, disability
        or for good reason (as defined in Section 6.3) by the Executive (such
        termination referred to in this paragraph as "Executive Termination Without
        Cause").  In the event of any Executive Termination Without Cause, the
        Executive agrees to pay as liquidated damages to the Employer an amount equal
        as
        follows:

       

      (a)  If
        the
        Executive Termination Without Cause occurs during Employment Year 1, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $487,680.00.

       

      (b)  If
        the
        Executive Termination Without Cause occurs during Employment Year 2, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $390,144.00.

       

      (c)  If
        the
        Executive Termination Without Cause occurs during Employment Year 3, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $292,608.00.

       

      (d)  If
        the
        Executive Termination Without Cause occurs during Employment Year 4, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $195,072.00.

       

      (e)  If
        the
        Executive Termination Without Cause occurs during Employment Year 5, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $97,536.00.

       

      7.  NON-DISCLOSURE
        COVENANT; EXECUTIVE INVENTIONS; NON-COMPETE

       

      7.1  ACKNOWLEDGMENTS
        BY THE EXECUTIVE

       

      The
        Executive acknowledges that (a) during the Employment Period and his prior
        employment period with the Employer and as a part of his employment with
        the
        Employer, the Executive was and will continue to be afforded access to
        Confidential Information; (b) public disclosure of such Confidential
        Information could have an adverse effect on the Employer and its business;
        (c) because the Executive possesses substantial technical expertise and
        skill with respect to the Employer's business, the Employer desires to obtain
        exclusive ownership of each Executive Invention, and the Employer will be
        at a
        substantial competitive disadvantage if it fails to acquire exclusive ownership
        of each Executive Invention; (d) Employer has required that the Executive
        make the covenants in this Section 7 as a condition to the stock purchase
        pursuant to the Stock Purchase Agreement and the continued employment of
        the
        Executive under this Employment Agreement; and (e) the provisions of this
        Section 7 are reasonable and necessary to prevent the improper use or disclosure
        of Confidential Information and to provide the Employer with exclusive ownership
        of all Executive Inventions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.2  AGREEMENTS
        OF THE EXECUTIVE

       

      In
        consideration of the compensation and benefits to be paid or provided to the
        Executive by the Employer under this Agreement, the Executive covenants as
        follows:

       

      (a)  Confidentiality.

       

      
        	
                (i)  

              	
                During
                  and following the Employment Period, the Executive will hold in
                  confidence
                  the Confidential Information and will not disclose it to any person
                  except
                  with the specific prior written consent of the Employer or except
                  as
                  otherwise expressly permitted by the terms of this
                  Agreement.

              

      

       

      
        	
                (ii)  

              	
                Any
                  trade secrets of the Employer will be entitled to all of the protections
                  and benefits under any applicable federal or state trade secret
                  law and
                  any other applicable law. If any information that the Employer
                  deems to be
                  a trade secret is found by a court of competent jurisdiction not
                  to be a
                  trade secret for purposes of this Agreement, such information will,
                  nevertheless, be considered Confidential Information for purposes
                  of this
                  Agreement. The Executive hereby waives any requirement that the
                  Employer
                  submits proof of the economic value of any trade secret or posts
                  a bond or
                  other security.

              

      

       

      
        	
                (iii)  

              	
                None
                  of the foregoing obligations and restrictions applies to any part
                  of the
                  Confidential Information that the Executive demonstrates was or
                  became
                  generally available to the public other than as a result of a disclosure
                  by the Executive.

              

      

       

      
        	
                (iv)  

              	
                The
                  Executive will not remove from the Employer's premises (except
                  to the
                  extent such removal is for purposes of the performance of the Executive's
                  duties at home or while traveling, or except as otherwise specifically
                  authorized by the Employer) any document, record, notebook, plan,
                  model,
                  component, device, or computer software or code, whether embodied
                  in a
                  disk or in any other form (collectively, the "Proprietary Items").
                  The
                  Executive recognizes that, as between the Employer and the Executive,
                  all
                  of the Proprietary Items, whether or not developed by the Executive,
                  are
                  the exclusive property of the Employer. Upon termination of this
                  Agreement
                  by either party, or upon the request of the Employer during the
                  Employment
                  Period, the Executive will return to the Employer all of the Proprietary
                  Items in the Executive's possession or subject to the Executive's
                  control,
                  and the Executive shall not retain any copies, abstracts, sketches,
                  or
                  other physical embodiment of any of the Proprietary
                  Items.

              

      

       

      (b)  Executive
        Inventions.  Each Executive Invention will belong exclusively to
        the Employer.  The Executive acknowledges that all of the Executive's
        writing, works of authorship, and other Executive Inventions are works made
        for
        hire and the property of the Employer, including any copyrights, patents,
        or
        other intellectual property rights pertaining thereto. If it is determined
        that
        any such works are not works made for hire, the Executive hereby assigns
        to the
        Employer all of the Executive's right, title, and interest, including all
        rights
        of copyright, patent, and other intellectual property rights, to or in such
        Executive Inventions. The Executive covenants that he will
        promptly:

       

      
        	
                (i)  

              	
                disclose
                  to the Employer in writing any Executive
                  Invention;

              

      

       

      
        	
                (ii)  

              	
                assign
                  to the Employer or to a party designated by the Employer, at the
                  Employer's request and without additional compensation, all of
                  the
                  Executive's right to the Executive Invention for the United States
                  and all
                  foreign jurisdictions;

              

      

       

      
        	
                (iii)  

              	
                execute
                  and deliver to the Employer such applications, assignments, and
                  other
                  documents as the Employer may request in order to apply for and
                  obtain
                  patents or other registrations with respect to any Executive Invention
                  in
                  the United States and any foreign
                  jurisdictions;

              

      

       

      
        	
                (iv)  

              	
                sign
                  all other papers necessary to carry out the above obligations;
                  and

              

      

       

      
        	
                (v)  

              	
                give
                  testimony and render any other assistance in support of the Employer's
                  rights to any Executive Invention.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.3  DISPUTES
        OR CONTROVERSIES

       

      The
        Executive recognizes that should a dispute or controversy arising from or
        relating to this Agreement be submitted for adjudication to any court,
        arbitration panel, or other third party, the preservation of the secrecy
        of
        Confidential Information may be jeopardized. All pleadings, documents,
        testimony, and records relating to any such adjudication will be maintained
        in
        secrecy and will be available for inspection by the Employer, the Executive,
        and
        their respective attorneys and experts, who will agree, in advance and in
        writing, to receive and maintain all such information in secrecy, except
        as may
        be limited by them in writing.

       

      8.  NON-COMPETITION
        AND NON-INTERFERENCE

       

      8.1  ACKNOWLEDGMENTS
        BY THE EXECUTIVE

       

      The
        Executive acknowledges that:  (a) the services to be performed by
        him under this Agreement are of a special, unique, unusual, extraordinary,
        and
        intellectual character; (b) the Employer's business is currently regional
        in scope and its products are marketed or may be marketed throughout the
        States
        of Mississippi, Alabama, Georgia, Tennessee, Florida, Kentucky, Louisiana,
        North
        Carolina, South Carolina, Texas, Arizona, Colorado, Kansas, New Mexico and
        Oklahoma (the "Restricted Area"); (c) the Employer competes with other
        businesses that are or could be located in any part of the Restricted Area;
        (d) the Employer has required that the Executive make the covenants set
        forth in this Section 8 as a condition to the stock purchase under the Stock
        Purchase Agreement and the continued employment of the Executive under this
        Agreement; and (e) the provisions of this Section 8 are reasonable and
        necessary to protect the Employer's business.

       

      8.2  COVENANTS
        OF THE EXECUTIVE

       

      In
        consideration of the acknowledgments by the Executive, and in consideration
        of
        the compensation and benefits to be paid or provided to the Executive by
        the
        Employer, as a material inducement to the Employer to enter into and perform
        its
        obligations under this Agreement, and in order to preserve and protect the
        trade
        secrets and proprietary, confidential information of the Employer and XFone
        Companies, the Executive covenants as follows:

       

      (a)  For
        the
        greater of (i) 5 years from the date of this Agreement or (ii) the Employment
        Period and for a period of two (2) years following the date that the employment
        by the Employer (or an affiliate thereof) of the Executive ends (the
        "Noncompetition Period"), the Executive will not, directly or indirectly,
        either for himself or for any partnership, limited liability company,
        individual, corporation, joint venture or any other entity "participate in"
        (as
        defined below) any business (including, without limitation, any division,
        group
        or franchise of a larger organization) which engages in the "Telecommunications
        Business" in the States of Mississippi, Alabama, Georgia, Tennessee, Florida,
        Kentucky, Louisiana, North Carolina, South Carolina, Texas, Arizona, Colorado,
        Kansas, New Mexico and Oklahoma (the "Restricted Area").  For purposes
        of this Agreement, "Telecommunications Business" shall mean the business
        of providing any type of telecommunication services or internet access services
        to any person or customer within the Restricted Area, including, without
        limitation, local, long distance, broadband, dial up data services, wireless,
        DSL, Voice-over-Internet Protocol (VoIP) and any other service or product
        being
        offered or provided by the Employer or any of the XFone
        Companies.  For purposes of this Agreement, the term "participate in"
        shall include, without limitation, having any direct or indirect interest
        in any
        corporation, partnership, limited liability company, joint venture or other
        entity, whether as a sole proprietor, owner, shareholder, partner, member,
        manager, joint venturer, creditor or otherwise, or rendering any direct or
        indirect service or assistance to any individual corporation, partnership,
        limited liability company, joint venture and other business entity (whether
        as a
        director, officer, manager, supervisor, employee, agent, consultant or
        otherwise).  Notwithstanding the foregoing, nothing in this Section
        8.2 shall prohibit the Executive from owning not more than five percent (5%)
        of
        the debt or equity securities of a publicly traded corporation which may
        compete
        with the Employer or XFone Companies.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  During
        the Noncompetition Period, and in order to preserve and protect the trade
        secrets and proprietary, confidential information of the Employer or XFone
        Companies after the Effective Date, neither the Executive shall not (i) induce
        or attempt to induce any employee of the Employer or XFone Companies to leave
        the employ of the Employer or XFone Companies, or in any way interfere with
        the
        relationship between the Employer or XFone Companies and any employee thereof,
        (ii) hire directly or through another entity any individual employed by the
        Employer or XFone Companies, or (iii) induce or attempt to induce any customer,
        supplier, licensee, distributor or other business relation of the Employer
        or
        XFone Companies to cease doing business with the Employer or XFone Companies,
        or
        in any way interfere with the relationship between any such customer, supplier,
        licensee, distributor or business relation and the Employer or XFone Companies
        (including, without limitation, making any negative statements or communications
        concerning the Employer or XFone Companies).

       

      (c)  If,
        at
        the time of enforcement of this Section 8.2, a court shall hold that the
        duration, scope or area restrictions stated herein are unreasonable under
        circumstances then existing, the parties hereto agree that the maximum duration,
        scope or area reasonable under such circumstances shall be substituted for
        the
        stated duration, scope or area and that the court shall be allowed to revise
        the
        restrictions contained herein to cover the maximum period, scope and area
        permitted by law.  The Executive agrees that the restrictions
        contained in this Section 8.2 are reasonable.

       

      (d)  If
        at any
        time during the Noncompetition Period the Executive desires to participate
        in an
        activity that he or he believes might be prohibited by this Section 8.2,
        such
        person may request in writing (a "Clarification Request") a determination
        by Employer as to whether such proposed activity would violate this Section
        8.2.  The Employer shall respond in writing to such Clarification
        Request (a "Clarification Response") within thirty (30) days of receipt
        thereof from the requesting person.

       

      If
        any
        covenant in this Section 8.2 is held to be unreasonable, arbitrary, or against
        public policy, such covenant will be considered to be divisible with respect
        to
        scope, time, and geographic area, and such lesser scope, time, or geographic
        area, or all of them, as a court of competent jurisdiction may determine
        to be
        reasonable, not arbitrary, and not against public policy, will be effective,
        binding, and enforceable against the Executive.

       

      The
        period of time applicable to any covenant in this Section 8.2 will be extended
        by the duration of any violation by the Executive of such covenant.

       

      The
        Executive will, while the covenant under this Section 8.2 is in effect, give
        notice to the Employer, within ten days after accepting any other employment,
        of
        the identity of the Executive's employer. The Employer may notify such employer
        that the Executive is bound by this Agreement and, at the Employer's election,
        furnish such employer with a copy of this Agreement or relevant portions
        thereof.

       

      9.  GENERAL
        PROVISIONS

       

      9.1  INJUNCTIVE
        RELIEF AND ADDITIONAL REMEDY

       

      The
        Executive acknowledges that the injury that would be suffered by the Employer
        as
        a result of a breach of the provisions of this Agreement (including any
        provision of Sections 7 and 8) would be irreparable and that an  award
        of monetary damages to the Employer for such a breach would be an inadequate
        remedy. Consequently, the Employer will have the right, in addition to any
        other
        rights it may have, to obtain injunctive relief to restrain any breach or
        threatened breach or otherwise to specifically enforce any provision of this
        Agreement, and the Employer will not be obligated to post bond or other security
        in seeking such relief.  Without limiting the Employer's rights under
        this Section 9 or any other remedies of the Employer, if the Executive breaches
        any of the provisions of Section 7 or 8, the Employer will have the right
        to
        cease making any payments otherwise due to the Executive under this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.2  COVENANTS
        OF SECTIONS 7 AND 8 ARE ESSENTIAL AND INDEPENDENT COVENANTS

       

      The
        covenants by the Executive in Sections 7 and 8 are essential elements of
        this
        Agreement, and without the Executive's agreement to comply with such covenants,
        the Employer would not have consummated the stock purchase under the Stock
        Purchase Agreement and the Employer would not have entered into this Agreement
        or employed or continued the employment of the Executive. The Employer and
        the
        Executive have independently consulted their respective counsel and have
        been
        advised in all respects concerning the reasonableness and propriety of such
        covenants, with specific regard to the nature of the business conducted by
        the
        Employer.

       

      The
        Executive's covenants in Sections 7 and 8 are independent covenants and the
        existence of any claim by the Executive against the Employer under this
        Agreement or otherwise, or against the Employer, will not excuse the Executive's
        breach of any covenant in Section 7 or 8.

       

      If
        the
        Executive's employment hereunder expires or is terminated, this Agreement
        will
        continue in full force and effect as is necessary or appropriate to enforce
        the
        covenants and agreements of the Executive in Sections 7 and 8.

       

      9.3  REPRESENTATIONS
        AND WARRANTIES BY THE EXECUTIVE

       

      (a)  The
        Executive represents and warrants to the Employer that the execution and
        delivery by the Executive of this Agreement do not, and the performance by
        the
        Executive of the Executive's obligations hereunder will not, with or without
        the
        giving of notice or the passage of time, or both: (a) violate any judgment,
        writ, injunction, or order of any court, arbitrator, or governmental agency
        applicable to the Executive; or (b) conflict with, result in the breach of
        any provisions of or the termination of, or constitute a default under, any
        agreement to which the Executive is a party or by which the Executive is
        or may
        be bound.

       

      (b)  The
        Employer represents and warrants to the Executive that the execution and
        delivery by the Employer of this Agreement do not, and the performance by
        the
        Employer of the Employer's obligations hereunder will not, with or without
        the
        giving of notice or the passage of time, or both: (a) violate any judgment,
        writ, injunction, or order of any court, arbitrator, or governmental agency
        applicable to the Employer; or (b) conflict with, result in the breach of
        any provisions of or the termination of, or constitute a default under, any
        agreement to which the Employer is a party or by which the Employer is or
        may be
        bound.

       

      9.4  OBLIGATIONS
        CONTINGENT ON PERFORMANCE

       

      The
        obligations of the Employer hereunder, including its obligation to pay the
        compensation provided for herein, are contingent upon the Executive's
        performance of the Executive's obligations hereunder.

       

      9.5  WAIVER

       

      The
        rights and remedies of the parties to this Agreement are cumulative and not
        alternative. Neither the failure nor any delay by either party in exercising
        any
        right, power, or privilege under this Agreement will operate as a waiver
        of such
        right, power, or privilege, and no single or partial exercise of any such
        right,
        power, or privilege will preclude any other or further exercise of such right,
        power, or privilege or the exercise of any other right, power, or privilege.
        To
        the maximum extent permitted by applicable law, (a) no claim or right
        arising out of this Agreement can be discharged by one party, in whole or
        in
        part, by a waiver or renunciation of the claim or right unless in writing
        signed
        by the other party; (b) no waiver that may be given by a party will be
        applicable except in the specific instance for which it is given; and
        (c) no notice to or demand on one party will be deemed to be a waiver of
        any obligation of such party or of the right of the party giving such notice
        or
        demand to take further action without notice or demand as provided in this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.6  BINDING
        EFFECT; DELEGATION OF DUTIES PROHIBITED

       

      This
        Agreement shall inure to the benefit of, and shall be binding upon, the parties
        hereto and their respective successors, assigns, heirs, and legal
        representatives, including any entity with which the Employer may merge or
        consolidate or to which all or substantially all of its assets may be
        transferred. The duties and covenants of the Executive under this Agreement,
        being personal, may not be delegated.

       

      9.7  NOTICES

       

      All
        notices, consents, waivers, and other communications under this Agreement
        must
        be in writing and will be deemed to have been duly given when (a) delivered
        by hand (with written confirmation of receipt), (b) sent by facsimile (with
        written confirmation of receipt), provided that a copy is mailed by registered
        mail, return receipt requested, or (c) when received by the addressee, if
        sent by a nationally recognized overnight delivery service (receipt requested),
        in each case to the appropriate addresses and facsimile numbers set forth
        below
        (or to such other addresses and facsimile numbers as a party may designate
        by
        notice to the other parties):

       

      
            If
          to Employer:

          
 

          
            	 	c/o
                    XFone, Inc.
	 	
                    Britannia
                      House

                  
	 	
                    960
                      High Road

                  
	 	
                    London,
                      N129RY

                  
	 	
                    United
                      Kingdom        

                  

          

          
            	
                     

                  	
                    Attention:

                  	
                    Guy
                      Nissenson

                  

          

          
            	
                     

                  	
                    Telephone:

                  	
                    +44
                      208-446-9494

                  

          

          
            	
                     

                  	
                    Facsimile:

                  	
                    +44
                      208-446-7010

                  

          

          
            	
                     

                  	
                    Email:

                  	
                    guy@xfone.com

                  

          

           

              with
            a copy to:

           

           

          
            	 	Watkins
                    Ludlam Winter & Stennis, P.A.
	 	
                    633
                      North State Street (39202)

                  
	 	
                    P.
                      O. Box 427

                  
	 	
                    Jackson,
                      MS 39205-0427

                  

          

          
            	
                     

                  	
                    Attention:

                  	
                    Gina
                      M. Jacobs

                  

          

          
            	
                     

                  	
                    Telephone:

                  	
                    601-949-4705

                  

          

          
            	
                     

                  	
                    Facsimile:

                  	
                    
                      
                        601-949-4804

                      

                    

                  

          

          
            	
                     

                  	
                    Email:

                  	
                    gjacobs@watkinsludlam.com

                  

          

           

           

          If
            to the Executive:

           

          
            	 	Jerry
                    Hoover
	 	
                     

                  
	 	
                     

                  
	 	Telephone:
	 	Facsimile:
	 	Email:

          

        

      

       

      [Note:
        Need notice
        information]

       

      9.8  ENTIRE
        AGREEMENT; AMENDMENTS

       

      This
        Agreement, the Stock Purchase Agreement, and the documents executed in
        connection with the Stock Purchase Agreement, contain the entire agreement
        between the parties with respect to the subject matter hereof and supersede
        all
        prior agreements and understandings, oral or written, between the parties
        hereto
        with respect to the subject matter hereof. This Agreement may not be amended
        orally, but only by an agreement in writing signed by the parties
        hereto.

       

      9.9  GOVERNING
        LAW

       

      This
        Agreement will be governed by the laws of the State of Texas without regard
        to
        conflicts of laws principles.

       

      9.10  JURISDICTION

       

      Any
        action or proceeding seeking to enforce any provision of, or based on any
        right
        arising out of, this Agreement may be brought against either of the parties
        in
        the courts of the State of Texas, or, if it has or can acquire jurisdiction,
        in
        any of the United States District Courts in Texas, and each of the parties
        consents to the jurisdiction of such courts (and of the appropriate appellate
        courts) in any such action or proceeding and waives any objection to venue
        laid
        therein. Process in any action or proceeding referred  to in the
        preceding sentence may be served on either party anywhere in the
        world.

       

      9.11  SECTION
        HEADINGS, CONSTRUCTION

       

      The
        headings of Sections in this Agreement are provided for convenience only and
        will not affect its construction or interpretation. All references to "Section"
        or "Sections" refer to the corresponding Section or Sections of this Agreement
        unless otherwise specified. All words used in this Agreement will be construed
        to be of such gender or number as the circumstances require. Unless otherwise
        expressly provided, the word "including" does not limit the preceding words
        or
        terms.

       

      9.12  SEVERABILITY

       

      If
        any
        provision of this Agreement is held invalid or unenforceable by any court
        of
        competent jurisdiction, the other provisions of this Agreement will remain
        in
        full force and effect. Any provision of this Agreement held invalid or
        unenforceable only in part or degree will remain in full force and effect
        to the
        extent not held invalid or unenforceable.

       

      9.13  COUNTERPARTS

       

      This
        Agreement may be executed in one or more counterparts, each of which will
        be
        deemed to be an original copy of this Agreement and all of which, when taken
        together, will be deemed to constitute one and the same agreement.

       

      9.14  WAIVER
        OF
        JURY TRIAL

       

      THE
        PARTIES HERETO HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION WITH RESPECT TO
        THIS
        AGREEMENT.

       

      9.15  PIGGYBACK
        REGISTRATION RIGHTS

       

      On
        or
        after the Effective Date, and continuing until this Agreement expires or
        is
        earlier terminated, whenever the Parent proposes to file a registration
        statement under the Securities Act of 1933, as amended, to register any shares
        of the Parent Common Stock for sale in a secondary offering, and the
        registration form to be used may be used for the registration of the restricted
        Parent Common Stock the Executive may hold as a result of exercising any
        options
        granted hereunder or the Parent Common Stock underlying the options which
        the
        Executive holds (a "Piggyback Registration"), the Company will give prompt
        written notice to the Executive of its intention to effect such a registration
        and will include in such registration such of the Employee’s registerable
        securities of the Parent as the Executive has requested be included in such
        Piggyback Registration by notice to the Parent within 15 days after the receipt
        of the Parent’s notice.  The Parent will pay the registration expenses
        with respect to such Piggyback Registrations.  The Executive shall
        fully cooperate by giving such information as is required for such Piggyback
        Registration.

       

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

       

      
        	 

                EMPLOYER:

                 

                NTS
                  Communications, Inc.

                 

              	 	 	 

                EXECUTIVE:

              	 
	
                By:

              	 	 	
                 

              	 
	
                
                  Guy
                    Nissenson, Chairman

                

              	 	 	
                Jerry
                  Hoover, IndividuallyUnassociated Document

    
      EXHIBIT
        10.107.4

      EMPLOYMENT
        AGREEMENT

       

      This
        Employment Agreement (this "Agreement") is executed as of ___________ ____,
        2007
        by NTS Communications, Inc. (the "Employer"), and Brad Worthington, an
        individual (the "Executive") to be effective on the date of consummation
        of the
        transactions contemplated by the Stock Purchase Agreement (as defined herein)
        (the “Effective Date”).

       

      RECITALS

       

      The
        Executive is currently the Executive Vice President – Chief Operating Officer
        and a shareholder of the Employer.  Concurrently with the execution
        and delivery of this Agreement, XFone, Inc. (“XFone” or “Parent”) is purchasing
        the issued and outstanding common stock of NTS Communications, Inc. pursuant
        to
        and in accordance with that certain Stock Purchase Agreement dated ___________
        ____, 2007 among the Company, the Employer, and the shareholders of the Company
        (the "Stock Purchase Agreement").  The Executive's continued
        employment with the Employer after the stock purchase and the Employee's
        execution of this Agreement is a condition to the consummation of the stock
        purchase pursuant to the Stock Purchase Agreement by XFone.  The
        Employer agrees to employ the Executive, and the Executive wishes to accept
        such
        continued employment, upon the terms and conditions set forth in this
        Agreement.

       

      AGREEMENT

       

      The
        parties, intending to be legally bound, agree as follows:

       

      1.  DEFINITIONS

       

      For
        the
        purposes of this Agreement, the following terms have the meanings specified
        or
        referred to in this Section 1.

       

      "Agreement"--this
        Employment Agreement, as amended from time to time.

       

      "Compensation"--Salary
        and Benefits.

       

      "Benefits"--as
        defined in Section 3.1(b).

       

      "Board
        of Directors"--the board of directors of the Employer.

       

      "Confidential
        Information" means any and all of the following with respect to the
        Employer or XFone, their Subsidiaries or any of their affiliates (the “XFone
        Companies”):

       

      (a)  trade
        secrets concerning the business and affairs of the XFone Companies, product
        specifications, data, know-how, formulae, compositions, processes, designs,
        sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
        current, and planned research and development, current and planned manufacturing
        or distribution methods and processes, customer lists, current and anticipated
        customer requirements, price lists, market studies, business plans, computer
        software and programs (including object code and source code), computer software
        and database technologies, systems, structures, and architectures (and related
        formulae, compositions, processes, improvements, devices, know-how, inventions,
        discoveries, concepts, ideas, designs, methods and information, any other
        confidential or proprietary information or data), and any other information,
        however documented, that is a trade secret within the meaning of any applicable
        federal or state laws; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  information
        concerning the business and affairs of the XFone Companies (which includes
        but
        is not limited to historical financial statements, financial projections
        and
        budgets, historical and projected sales, capital spending budgets and plans,
        the
        names and backgrounds of key personnel, personnel training and techniques
        and
        materials, interconnect agreements, supply sources, marketing, production
        or
        merchandising systems or plans), however documented; and

       

      (c)  notes,
        analysis, compilations, studies, summaries, and other material prepared by
        or
        for the XFone Companies containing or based, in whole or in part, on any
        information included in the foregoing.

       

      "Disability"--as
        defined in Section 6.4.

       

      "Effective
        Date"--the date stated in the first paragraph of the
        Agreement.

       

      "Executive
        Invention"--any idea, invention, technique, modification, process,
        or improvement (whether patentable or not), any industrial design (whether
        registerable or not), any mask work, however fixed or encoded, that is suitable
        to be fixed, embedded or programmed in a semiconductor product (whether
        recordable or not), and any work of authorship (whether or not copyright
        protection may be obtained for it) created, conceived, or developed by the
        Executive, either solely or in conjunction with others, during the Employment
        Period with Employer or any predecessor or successor of the Employer, or
        a
        period that includes a portion of the Employment Period, that relates in
        any way
        to, or is useful in any manner in, the business then being conducted or proposed
        to be conducted by the Employer, and any such item created by the Executive,
        either solely or in conjunction with  others, following termination of
        the Executive's employment with the Employer, that is based upon or uses
        Confidential Information.

       

      "Employment
        Period"--the term of the Executive's employment under this
        Agreement, as the same may be extended and as used herein the term "Employment
        Year" means each twelve month period occurring during the employment period.
        "Employment Year 1" shall mean the first twelve months of employment from
        the
        Effective Date, "Employment Year 2" shall mean the 12 month period following
        Employment Year 1, "Employment Year 3" shall mean the 12 month period following
        Employment Year 2, "Employment Year 4" shall mean the 12 month period following
        Employment Year 3, and "Employment Year 5" shall mean the 12 month period
        following Employment Year 4.

       

      "Fiscal
        Year"--the Employer's fiscal year, as it exists on the Effective
        Date or as changed from time to time.

       

      "For
        cause"--as defined in Section 6.2.

       

      "For
        good reason"--as defined in Section 6.3.

       

      "Parent
        Common Stock" shall mean shares of the common stock of the
        Parent.

       

      "Person"--any
        individual, corporation (including any non-profit corporation), general or
        limited partnership, limited liability company, joint venture, estate, trust,
        association, organization, or governmental body.

       

      "Post-Employment
        Period"--as defined in Section 8.2.

       

      "Proprietary
        Items"--as defined in Section 7.2(a)(iv).

       

      "Salary"--as
        defined in Section 3.1(a).

       

      “Subsidiaries”–
        shall mean, with respect to any Person (the “parent”) at any date, any
        corporation, limited liability company, partnership, association or other
        entity
        the accounts of which would be consolidated with those of the parent in the
        parent’s consolidated financial statements if such financial statements were
        prepared in accordance with GAAP as of such date, as well as any other
        corporation, limited liability company, partnership, association or other
        entity
        of which securities or other ownership interests representing more than 50%
        of
        the equity securities or more than 50% of the voting securities or, in the
        case
        of a partnership, more than 50% of the general partnership interests are,
        as of
        such date, owned, controlled or held, directly or indirectly, by one or more
        of
        the parent and its Subsidiaries.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.  EMPLOYMENT
        TERMS AND DUTIES

       

      2.1  EMPLOYMENT

       

      The
        Employer hereby employs the Executive, and the Executive hereby accepts
        employment by the Employer, upon the terms and conditions set forth in this
        Agreement.

       

      2.2  TERM

       

      Subject
        to the provisions of Section 6, the term of the Executive's employment under
        this Agreement will be five (5) years, beginning on the Effective Date and
        ending on the fifth anniversary of the Effective Date.

       

      2.3  DUTIES

       

      The
        Executive will have such duties as are assigned or delegated to the Executive
        by
        the Board of Directors or Chairman of the Board, and will initially serve
        as
        Executive Vice President – Chief Operating Officer of the
        Employer.  The Executive will devote his entire business time,
        attention, skill, and energy exclusively to the business of the Employer,
        will
        use his best efforts to promote the success of the Employer's business, and
        will
        cooperate fully with the Board of Directors in the advancement of the best
        interests of the Employer.  If the Executive is elected as a director
        of the Employer or as a director or officer of any of the XFone Companies,
        the
        Executive will fulfill his duties as such director or officer without additional
        compensation.

       

      3.  COMPENSATION

       

      (a)  Salary.  The
        Executive will be paid an annual salary of $243,840.00 for Employment Year
        1 and
        the Salary for each employment year thereafter shall be set by the Board
        of
        Directors of the Employer which in no event shall be less than the Salary
        for
        Employment Year 1 (the "Salary").  The Salary will be payable in equal
        periodic installments according to the Employer's customary payroll practices,
        but no less frequently than monthly, and shall be subject to all applicable
        withholding and other applicable taxes as required by law.

       

      (b)  Benefits.  The
        Executive will, during the Employment Period, be permitted to participate
        in
        such life insurance, hospitalization, major medical, and other Executive
        benefit
        plans of the Employer that may be in effect from time to time, to the extent
        the
        Executive is eligible under the terms of those plans (collectively, the
        "Benefits"); provided that such Benefits will be substantially similar to
        those
        enjoyed by the Employee under the terms of his employment with the Company
        as of
        the Effective Date.

       

      (c)  Bonus.  On
        the Effective Date, Executive will receive a one-time cash signing bonus
        in the
        amount of $243,840.00.  Executive acknowledges that this signing bonus
        paid by Employer is in lieu of any “stay pay” bonuses previously approved by the
        board of the Employer, and by accepting the signing bonus Executive agrees
        to
        forego any such “stay pay” bonuses previously approved by the
        Employer.

       

      (d)  Stock
        Option Plan.  The Executive will receive options to purchase
        Parent Common Stock as set forth below:

       

      
        	
                (i)  

              	
                On
                  the Effective Date, the Employee shall be granted fully vested
                  options
                  with a term of five years for 400,000 shares of Parent Common Stock
                  with a
                  strike price of 10% above the average closing price for the prior
                  ten
                  trading days immediately prior to the date of execution of the
                  Stock
                  Purchase Agreement; and

              

      

       

      
        	
                (ii)  

              	
                At
                  the end of the Second Employment Year, the Employee shall be granted
                  fully
                  vested options with a term of five years for an additional 267,000
                  shares
                  of the Parent Common Stock with a strike price of $5.00 per
                  share.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.  FACILITIES
        AND EXPENSES

       

      The
        Employer will furnish the Executive office space, equipment, supplies, and
        such
        other facilities and personnel as the Employer deems necessary or appropriate
        for the performance of the Executive's duties under this Agreement.

       

      5.  VACATIONS
        AND HOLIDAYS

       

      The
        Executive will be entitled to four weeks' paid vacation each Employment Year
        in
        accordance with the vacation policies of the Employer in effect for its
        executive officers from time to time. Vacation must be taken by the Executive
        at
        such time or times as approved by the Chairman of the Board. The Executive
        will
        also be entitled to the paid holidays set forth in the Employer's policies.
        Up
        to ten vacation days during any Employment Year that are not used by the
        Executive during such Employment Year may be used in any subsequent Employment
        Year.  The Executive shall be allowed to keep and use 33 accrued sick
        days that have been earned during the course of his employment with the Company
        prior to the execution date of this Agreement.

       

      6.  TERMINATION

       

      6.1  EVENTS
        OF
        TERMINATION

       

      The
        Employment Period, the Executive's Compensation, and any and all other rights
        of
        the Executive under this Agreement or otherwise as an Executive of the Employer
        will terminate (except as otherwise provided in this Section 6):

       

      (a)  upon
        the
        death of the Executive;

       

      (b)  for
        cause
        (as defined in Section 6.2), immediately upon notice from the Employer to
        the
        Executive, or at such later time as such notice may specify;

       

      (c)  for
        good
        reason (as defined in Section 6.3) upon not less than thirty days' prior
        notice
        from the Executive to the Employer;

       

      (d)  upon
        termination of employment by Executive for any reason other than for good
        reason
        (as defined in Section 6.3); or

       

      (e)  upon
        the
        disability of the Executive (as defined in Section 6.4).

       

      6.2  DEFINITION
        OF "FOR CAUSE"

       

      For
        purposes of Section 6.1, the phrase "for cause" means: (a) the Executive's
        breach of this Agreement which remains uncorrected for 30 days following
        notice
        from the Employer; (b) the Executive's failure to adhere to any written
        Employer policy if the Executive has been given a reasonable opportunity
        to
        comply with such policy or cure the failure to comply (which reasonable
        opportunity must be granted during the ten-day period preceding termination
        of
        this Agreement); (c) the appropriation (or attempted appropriation) of a
        material business opportunity of the Employer, including attempting to secure
        or
        securing any personal profit in connection with any transaction entered into
        on
        behalf of the Employer; (d) the misappropriation (or attempted
        misappropriation) of any of the Employer's funds or property; or (e) after
        the Execution Date hereof, the conviction of, the indictment for (or its
        procedural equivalent), or the entering of a guilty plea or plea of no contest
        with respect to, a felony, the equivalent thereof, or any other crime with
        respect to which imprisonment is a possible punishment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.3  DEFINITION
        OF "FOR GOOD REASON"

       

      For
        purposes of Section 6.1, the phrase "for good reason" means the Employer's
        material breach of this Agreement which is not cured within 30 days from
        the
        date of notice from the Executive.

       

      6.4  DEFINITION
        OF "DISABILITY"

       

      For
        purposes of Section 6.1, the Executive will be deemed to have a
        "disability" if, for physical or mental reasons, the Executive is unable
        to
        perform the Executive's duties under this Agreement for 60 consecutive calendar
        days or more or 90 calendar days or more during any twelve month period,
        as
        determined in accordance with this Section 6.4. The disability of the
        Executive will be determined by a medical doctor selected by written agreement
        of the Employer and the Executive upon the request of either party by notice
        to
        the other. If the Employer and the Executive cannot agree on the selection
        of a
        medical doctor, each of them will select a medical doctor and the two medical
        doctors will select a third medical doctor who will determine whether the
        Executive has a disability. The determination of the medical doctor selected
        under this Section 6.4 will be binding on both parties. The Executive must
        submit to a reasonable number of examinations by the medical doctor making
        the
        determination of disability under this Section 6.4, and the Executive hereby
        authorizes the disclosure and release to the Employer of such determination
        and
        all supporting medical records. If the Executive is not legally competent,
        the
        Executive's legal guardian or duly authorized attorney-in-fact will act in
        the
        Executive's stead, under this Section 6.4, for the purposes of submitting
        the
        Executive to the examinations, and providing the authorization of disclosure,
        required under this Section 6.4.

       

      6.5  TERMINATION
        PAY

       

      Effective
        upon the termination of this Agreement, the Employer will be obligated to
        pay
        the Executive (or, in the event of his death, his designated beneficiary
        as
        defined below) only such compensation as is provided in this Section 6.5,
        and in
        lieu of all other amounts and in settlement and complete release of all claims
        the Executive may have against the Employer. For purposes of this Section
        6.5,
        the Executive's designated beneficiary will be such individual beneficiary
        or
        trust, located at such address, as the Executive may designate by notice
        to the
        Employer from time to time or, if the Executive fails to give notice to the
        Employer of such a beneficiary, the Executive's estate. Notwithstanding the
        preceding sentence, the Employer will have no duty, in any circumstances,
        to
        attempt to open an estate on behalf of the Executive, to determine whether
        any
        beneficiary designated by the Executive is alive or to ascertain the address
        of
        any such beneficiary, to determine the existence of any trust, to determine
        whether any person or entity purporting to act as the Executive's personal
        representative (or the trustee of a trust established by the Executive) is
        duly
        authorized to act in that capacity, or to locate or attempt to locate any
        beneficiary, personal representative, or trustee.

       

      (a)  Termination
        by the Executive for Good Reason.  If the Executive terminates
        this Agreement for good reason, the Employer will pay the Executive the
        Executive's Salary for the remainder of the term of this Agreement (the
        "Remainder Term") as and when such salary would otherwise become due and
        payable.  Notwithstanding the preceding sentence, if the Executive
        obtains other employment or becomes self-employed as a consultant or otherwise
        prior to the end of the Remainder Term, he must promptly give notice thereof
        to
        the Employer, and the Salary payments under this Agreement for any period
        after
        the Executive obtains such other employment will be reduced by the amount
        of the
        cash compensation received and to be received by the Executive from the
        Executive's other employment for services performed during such
        period.

       

      (b)  Termination
        by the Employer for Cause or Termination by Executive without Good
        Reason.  If the Executive terminates his employment for any reason
        other than for good reason (as defined in Section 6.3), the Executive will
        be
        entitled to receive his Salary only through the date such termination is
        effective and any unexercised vested options for Parent Common Stock and
        rights
        to receive any additional options for Parent Common Stock shall be
        cancelled.  If the Employer terminates this Agreement for cause, the
        Executive will be entitled to receive his Salary through the date such
        termination is effective and any option for Parent Common Stock issued in
        any
        year subsequent to Employment Year 1 shall be cancelled.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  Termination
        upon Death/Expiration.  If this Agreement is terminated because of
        the Executive's death, the Executive will be entitled to receive his Salary
        through the end of the calendar month in which his death occurs and any right
        to
        receive any additional options for Parent Stock shall be
        cancelled.  If this Agreement expires after the performance for the
        full term hereof and the Employer and Employee can not agree on the terms
        for
        the extension of this Agreement or a new employment agreement to replace
        this
        Agreement, and the Employee terminates employment, then in such event the
        Employee will be entitled to receive him salary for a period of three (3)
        months
        following the date of such termination as severance pay.

       

      (d)  Termination
        Upon Disability.  If this Agreement is terminated by either party
        as a result of the Executive's disability, as determined under Section 6.4,
        the
        Employer will pay the Executive his Salary through the remainder of the calendar
        month during which such termination is effective and any right to receive
        any
        additional options for Parent Stock shall be cancelled.

       

      (e)  Benefits.  The
        Executive's accrual of, or participation in plans providing for, the Benefits
        will cease at the effective date of the termination of this Agreement, and
        the
        Executive will be entitled to accrued Benefits pursuant to such plans only
        as
        provided in such plans.  The Executive will only receive, as part of
        his termination pay pursuant to this Section 6, any payment or other
        compensation for any vacation, holiday, sick leave, or other leave unused
        on the
        date the notice of termination is given under this Agreement if the termination
        is due to the death or disability of Executive or termination by the Executive
        for Good Reason per Section 6.3.

       

      6.6  TERMINATION
        DAMAGES PAYABLE BY EXECUTIVE

       

      The
        Executive and the Employer agree that it is impossible to determine with
        any
        reasonable accuracy the amount of the prospective damages to the Employer
        if the
        Executive's employment is terminated for any reason other than death, disability
        or for good reason (as defined in Section 6.3) by the Executive (such
        termination referred to in this paragraph as "Executive Termination Without
        Cause").  In the event of any Executive Termination Without Cause, the
        Executive agrees to pay as liquidated damages to the Employer an amount equal
        as
        follows:

       

      (a)  If
        the
        Executive Termination Without Cause occurs during Employment Year 1, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $487,680.00.

       

      (b)  If
        the
        Executive Termination Without Cause occurs during Employment Year 2, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $390,144.00.

       

      (c)  If
        the
        Executive Termination Without Cause occurs during Employment Year 3, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $292,608.00.

       

      (d)  If
        the
        Executive Termination Without Cause occurs during Employment Year 4, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $195,072.00.

       

      (e)  If
        the
        Executive Termination Without Cause occurs during Employment Year 5, then
        the
        Executive shall immediately pay to the Employer an amount equal to
        $97,536.00.

       

      7.  NON-DISCLOSURE
        COVENANT; EXECUTIVE INVENTIONS; NON-COMPETE

       

      7.1  ACKNOWLEDGMENTS
        BY THE EXECUTIVE

       

      The
        Executive acknowledges that (a) during the Employment Period and his prior
        employment period with the Employer and as a part of his employment with
        the
        Employer, the Executive was and will continue to be afforded access to
        Confidential Information; (b) public disclosure of such Confidential
        Information could have an adverse effect on the Employer and its business;
        (c) because the Executive possesses substantial technical expertise and
        skill with respect to the Employer's business, the Employer desires to obtain
        exclusive ownership of each Executive Invention, and the Employer will be
        at a
        substantial competitive disadvantage if it fails to acquire exclusive ownership
        of each Executive Invention; (d) Employer has required that the Executive
        make the covenants in this Section 7 as a condition to the stock purchase
        pursuant to the Stock Purchase Agreement and the continued employment of
        the
        Executive under this Employment Agreement; and (e) the provisions of this
        Section 7 are reasonable and necessary to prevent the improper use or disclosure
        of Confidential Information and to provide the Employer with exclusive ownership
        of all Executive Inventions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.2  AGREEMENTS
        OF THE EXECUTIVE

       

      In
        consideration of the compensation and benefits to be paid or provided to
        the
        Executive by the Employer under this Agreement, the Executive covenants as
        follows:

       

      (a)  Confidentiality.

       

      
        	
                (i)  

              	
                During
                  and following the Employment Period, the Executive will hold in
                  confidence
                  the Confidential Information and will not disclose it to any person
                  except
                  with the specific prior written consent of the Employer or except
                  as
                  otherwise expressly permitted by the terms of this
                  Agreement.

              

      

       

      
        	
                (ii)  

              	
                Any
                  trade secrets of the Employer will be entitled to all of the protections
                  and benefits under any applicable federal or state trade secret
                  law and
                  any other applicable law. If any information that the Employer
                  deems to be
                  a trade secret is found by a court of competent jurisdiction not
                  to be a
                  trade secret for purposes of this Agreement, such information will,
                  nevertheless, be considered Confidential Information for purposes
                  of this
                  Agreement. The Executive hereby waives any requirement that the
                  Employer
                  submits proof of the economic value of any trade secret or posts
                  a bond or
                  other security.

              

      

       

      
        	
                (iii)  

              	
                None
                  of the foregoing obligations and restrictions applies to any part
                  of the
                  Confidential Information that the Executive demonstrates was or
                  became
                  generally available to the public other than as a result of a disclosure
                  by the Executive.

              

      

       

      
        	
                (iv)  

              	
                The
                  Executive will not remove from the Employer's premises (except
                  to the
                  extent such removal is for purposes of the performance of the Executive's
                  duties at home or while traveling, or except as otherwise specifically
                  authorized by the Employer) any document, record, notebook, plan,
                  model,
                  component, device, or computer software or code, whether embodied
                  in a
                  disk or in any other form (collectively, the "Proprietary Items").
                  The
                  Executive recognizes that, as between the Employer and the Executive,
                  all
                  of the Proprietary Items, whether or not developed by the Executive,
                  are
                  the exclusive property of the Employer. Upon termination of this
                  Agreement
                  by either party, or upon the request of the Employer during the
                  Employment
                  Period, the Executive will return to the Employer all of the Proprietary
                  Items in the Executive's possession or subject to the Executive's
                  control,
                  and the Executive shall not retain any copies, abstracts, sketches,
                  or
                  other physical embodiment of any of the Proprietary
                  Items.

              

      

       

      (b)  Executive
        Inventions.  Each Executive Invention will belong exclusively to
        the Employer.  The Executive acknowledges that all of the Executive's
        writing, works of authorship, and other Executive Inventions are works made
        for
        hire and the property of the Employer, including any copyrights, patents,
        or
        other intellectual property rights pertaining thereto. If it is determined
        that
        any such works are not works made for hire, the Executive hereby assigns
        to the
        Employer all of the Executive's right, title, and interest, including all
        rights
        of copyright, patent, and other intellectual property rights, to or in such
        Executive Inventions. The Executive covenants that he will
        promptly:

       

      
        	
                (i)  

              	
                disclose
                  to the Employer in writing any Executive
                  Invention;

              

      

       

      
        	
                (ii)  

              	
                assign
                  to the Employer or to a party designated by the Employer, at the
                  Employer's request and without additional compensation, all of
                  the
                  Executive's right to the Executive Invention for the United States
                  and all
                  foreign jurisdictions;

              

      

       

      
        	
                (iii)  

              	
                execute
                  and deliver to the Employer such applications, assignments, and
                  other
                  documents as the Employer may request in order to apply for and
                  obtain
                  patents or other registrations with respect to any Executive Invention
                  in
                  the United States and any foreign
                  jurisdictions;

              

      

       

      
        	
                (iv)  

              	
                sign
                  all other papers necessary to carry out the above obligations;
                  and

              

      

       

      
        	
                (v)  

              	
                give
                  testimony and render any other assistance in support of the Employer's
                  rights to any Executive Invention.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.3  DISPUTES
        OR CONTROVERSIES

       

      The
        Executive recognizes that should a dispute or controversy arising from or
        relating to this Agreement be submitted for adjudication to any court,
        arbitration panel, or other third party, the preservation of the secrecy
        of
        Confidential Information may be jeopardized. All pleadings, documents,
        testimony, and records relating to any such adjudication will be maintained
        in
        secrecy and will be available for inspection by the Employer, the Executive,
        and
        their respective attorneys and experts, who will agree, in advance and in
        writing, to receive and maintain all such information in secrecy, except
        as may
        be limited by them in writing.

       

      8.  NON-COMPETITION
        AND NON-INTERFERENCE

       

      8.1  ACKNOWLEDGMENTS
        BY THE EXECUTIVE

       

      The
        Executive acknowledges that:  (a) the services to be performed by
        him under this Agreement are of a special, unique, unusual, extraordinary,
        and
        intellectual character; (b) the Employer's business is currently regional
        in scope and its products are marketed or may be marketed throughout the
        States
        of Mississippi, Alabama, Georgia, Tennessee, Florida, Kentucky, Louisiana,
        North
        Carolina, South Carolina, Texas, Arizona, Colorado, Kansas, New Mexico and
        Oklahoma (the "Restricted Area"); (c) the Employer competes with other
        businesses that are or could be located in any part of the Restricted Area;
        (d) the Employer has required that the Executive make the covenants set
        forth in this Section 8 as a condition to the stock purchase under the Stock
        Purchase Agreement and the continued employment of the Executive under this
        Agreement; and (e) the provisions of this Section 8 are reasonable and
        necessary to protect the Employer's business.

       

      8.2  COVENANTS
        OF THE EXECUTIVE

       

      In
        consideration of the acknowledgments by the Executive, and in consideration
        of
        the compensation and benefits to be paid or provided to the Executive by
        the
        Employer, as a material inducement to the Employer to enter into and perform
        its
        obligations under this Agreement, and in order to preserve and protect the
        trade
        secrets and proprietary, confidential information of the Employer and XFone
        Companies, the Executive covenants as follows:

       

      (a)  For
        the
        greater of (i) 5 years from the date of this Agreement or (ii) the Employment
        Period and for a period of two (2) years following the date that the employment
        by the Employer (or an affiliate thereof) of the Executive ends (the
        "Noncompetition Period"), the Executive will not, directly or indirectly,
        either for himself or for any partnership, limited liability company,
        individual, corporation, joint venture or any other entity "participate in"
        (as
        defined below) any business (including, without limitation, any division,
        group
        or franchise of a larger organization) which engages in the "Telecommunications
        Business" in the States of Mississippi, Alabama, Georgia, Tennessee, Florida,
        Kentucky, Louisiana, North Carolina, South Carolina, Texas, Arizona, Colorado,
        Kansas, New Mexico and Oklahoma (the "Restricted Area").  For purposes
        of this Agreement, "Telecommunications Business" shall mean the business
        of providing any type of telecommunication services or internet access services
        to any person or customer within the Restricted Area, including, without
        limitation, local, long distance, broadband, dial up data services, wireless,
        DSL, Voice-over-Internet Protocol (VoIP) and any other service or product
        being
        offered or provided by the Employer or any of the XFone
        Companies.  For purposes of this Agreement, the term "participate in"
        shall include, without limitation, having any direct or indirect interest
        in any
        corporation, partnership, limited liability company, joint venture or other
        entity, whether as a sole proprietor, owner, shareholder, partner, member,
        manager, joint venturer, creditor or otherwise, or rendering any direct or
        indirect service or assistance to any individual corporation, partnership,
        limited liability company, joint venture and other business entity (whether
        as a
        director, officer, manager, supervisor, employee, agent, consultant or
        otherwise).  Notwithstanding the foregoing, nothing in this Section
        8.2 shall prohibit the Executive from owning not more than five percent (5%)
        of
        the debt or equity securities of a publicly traded corporation which may
        compete
        with the Employer or XFone Companies.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  During
        the Noncompetition Period, and in order to preserve and protect the trade
        secrets and proprietary, confidential information of the Employer or XFone
        Companies after the Effective Date, neither the Executive shall not (i) induce
        or attempt to induce any employee of the Employer or XFone Companies to leave
        the employ of the Employer or XFone Companies, or in any way interfere with
        the
        relationship between the Employer or XFone Companies and any employee thereof,
        (ii) hire directly or through another entity any individual employed by the
        Employer or XFone Companies, or (iii) induce or attempt to induce any customer,
        supplier, licensee, distributor or other business relation of the Employer
        or
        XFone Companies to cease doing business with the Employer or XFone Companies,
        or
        in any way interfere with the relationship between any such customer, supplier,
        licensee, distributor or business relation and the Employer or XFone Companies
        (including, without limitation, making any negative statements or communications
        concerning the Employer or XFone Companies).

       

      (c)  If,
        at
        the time of enforcement of this Section 8.2, a court shall hold that the
        duration, scope or area restrictions stated herein are unreasonable under
        circumstances then existing, the parties hereto agree that the maximum duration,
        scope or area reasonable under such circumstances shall be substituted for
        the
        stated duration, scope or area and that the court shall be allowed to revise
        the
        restrictions contained herein to cover the maximum period, scope and area
        permitted by law.  The Executive agrees that the restrictions
        contained in this Section 8.2 are reasonable.

       

      (d)  If
        at any
        time during the Noncompetition Period the Executive desires to participate
        in an
        activity that he or he believes might be prohibited by this Section 8.2,
        such
        person may request in writing (a "Clarification Request") a determination
        by Employer as to whether such proposed activity would violate this Section
        8.2.  The Employer shall respond in writing to such Clarification
        Request (a "Clarification Response") within thirty (30) days of receipt
        thereof from the requesting person.

       

      If
        any
        covenant in this Section 8.2 is held to be unreasonable, arbitrary, or against
        public policy, such covenant will be considered to be divisible with respect
        to
        scope, time, and geographic area, and such lesser scope, time, or geographic
        area, or all of them, as a court of competent jurisdiction may determine
        to be
        reasonable, not arbitrary, and not against public policy, will be effective,
        binding, and enforceable against the Executive.

       

      The
        period of time applicable to any covenant in this Section 8.2 will be extended
        by the duration of any violation by the Executive of such covenant.

       

      The
        Executive will, while the covenant under this Section 8.2 is in effect, give
        notice to the Employer, within ten days after accepting any other employment,
        of
        the identity of the Executive's employer. The Employer may notify such employer
        that the Executive is bound by this Agreement and, at the Employer's election,
        furnish such employer with a copy of this Agreement or relevant portions
        thereof.

       

      9.  GENERAL
        PROVISIONS

       

      9.1  INJUNCTIVE
        RELIEF AND ADDITIONAL REMEDY

       

      The
        Executive acknowledges that the injury that would be suffered by the Employer
        as
        a result of a breach of the provisions of this Agreement (including any
        provision of Sections 7 and 8) would be irreparable and that an  award
        of monetary damages to the Employer for such a breach would be an inadequate
        remedy. Consequently, the Employer will have the right, in addition to any
        other
        rights it may have, to obtain injunctive relief to restrain any breach or
        threatened breach or otherwise to specifically enforce any provision of this
        Agreement, and the Employer will not be obligated to post bond or other security
        in seeking such relief.  Without limiting the Employer's rights under
        this Section 9 or any other remedies of the Employer, if the Executive breaches
        any of the provisions of Section 7 or 8, the Employer will have the right
        to
        cease making any payments otherwise due to the Executive under this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.2  COVENANTS
        OF SECTIONS 7 AND 8 ARE ESSENTIAL AND INDEPENDENT COVENANTS

       

      The
        covenants by the Executive in Sections 7 and 8 are essential elements of
        this
        Agreement, and without the Executive's agreement to comply with such covenants,
        the Employer would not have consummated the stock purchase under the Stock
        Purchase Agreement and the Employer would not have entered into this Agreement
        or employed or continued the employment of the Executive. The Employer and
        the
        Executive have independently consulted their respective counsel and have
        been
        advised in all respects concerning the reasonableness and propriety of such
        covenants, with specific regard to the nature of the business conducted by
        the
        Employer.

       

      The
        Executive's covenants in Sections 7 and 8 are independent covenants and the
        existence of any claim by the Executive against the Employer under this
        Agreement or otherwise, or against the Employer, will not excuse the Executive's
        breach of any covenant in Section 7 or 8.

       

      If
        the
        Executive's employment hereunder expires or is terminated, this Agreement
        will
        continue in full force and effect as is necessary or appropriate to enforce
        the
        covenants and agreements of the Executive in Sections 7 and 8.

       

      9.3  REPRESENTATIONS
        AND WARRANTIES BY THE EXECUTIVE

       

      (a)  The
        Executive represents and warrants to the Employer that the execution and
        delivery by the Executive of this Agreement do not, and the performance by
        the
        Executive of the Executive's obligations hereunder will not, with or without
        the
        giving of notice or the passage of time, or both: (a) violate any judgment,
        writ, injunction, or order of any court, arbitrator, or governmental agency
        applicable to the Executive; or (b) conflict with, result in the breach of
        any provisions of or the termination of, or constitute a default under, any
        agreement to which the Executive is a party or by which the Executive is
        or may
        be bound.

       

      (b)  The
        Employer represents and warrants to the Executive that the execution and
        delivery by the Employer of this Agreement do not, and the performance by
        the
        Employer of the Employer's obligations hereunder will not, with or without
        the
        giving of notice or the passage of time, or both: (a) violate any judgment,
        writ, injunction, or order of any court, arbitrator, or governmental agency
        applicable to the Employer; or (b) conflict with, result in the breach of
        any provisions of or the termination of, or constitute a default under, any
        agreement to which the Employer is a party or by which the Employer is or
        may be
        bound.

       

      9.4  OBLIGATIONS
        CONTINGENT ON PERFORMANCE

       

      The
        obligations of the Employer hereunder, including its obligation to pay the
        compensation provided for herein, are contingent upon the Executive's
        performance of the Executive's obligations hereunder.

       

      9.5  WAIVER

       

      The
        rights and remedies of the parties to this Agreement are cumulative and not
        alternative. Neither the failure nor any delay by either party in exercising
        any
        right, power, or privilege under this Agreement will operate as a waiver
        of such
        right, power, or privilege, and no single or partial exercise of any such
        right,
        power, or privilege will preclude any other or further exercise of such right,
        power, or privilege or the exercise of any other right, power, or privilege.
        To
        the maximum extent permitted by applicable law, (a) no claim or right
        arising out of this Agreement can be discharged by one party, in whole or
        in
        part, by a waiver or renunciation of the claim or right unless in writing
        signed
        by the other party; (b) no waiver that may be given by a party will be
        applicable except in the specific instance for which it is given; and
        (c) no notice to or demand on one party will be deemed to be a waiver of
        any obligation of such party or of the right of the party giving such notice
        or
        demand to take further action without notice or demand as provided in this
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.6  BINDING
        EFFECT; DELEGATION OF DUTIES PROHIBITED

       

      This
        Agreement shall inure to the benefit of, and shall be binding upon, the parties
        hereto and their respective successors, assigns, heirs, and legal
        representatives, including any entity with which the Employer may merge or
        consolidate or to which all or substantially all of its assets may be
        transferred. The duties and covenants of the Executive under this Agreement,
        being personal, may not be delegated.

       

      9.7  NOTICES

       

      All
        notices, consents, waivers, and other communications under this Agreement
        must
        be in writing and will be deemed to have been duly given when (a) delivered
        by hand (with written confirmation of receipt), (b) sent by facsimile (with
        written confirmation of receipt), provided that a copy is mailed by registered
        mail, return receipt requested, or (c) when received by the addressee, if
        sent by a nationally recognized overnight delivery service (receipt requested),
        in each case to the appropriate addresses and facsimile numbers set forth
        below
        (or to such other addresses and facsimile numbers as a party may designate
        by
        notice to the other parties):

       

          If
        to Employer:

        
 

        
          	 	c/o
                  XFone, Inc.
	 	
                  Britannia
                    House

                
	 	
                  960
                    High Road

                
	 	
                  London,
                    N129RY

                
	 	
                  United
                    Kingdom        

                

        

        
          	
                   

                	
                  Attention:

                	
                  Guy
                    Nissenson

                

        

        
          	
                   

                	
                  Telephone:

                	
                  +44
                    208-446-9494

                

        

        
          	
                   

                	
                  Facsimile:

                	
                  +44
                    208-446-7010

                

        

        
          	
                   

                	
                  Email:

                	
                  guy@xfone.com

                

        

         

            with
          a copy to:

         

         

        
          	 	Watkins
                  Ludlam Winter & Stennis, P.A.
	 	
                  633
                    North State Street (39202)

                
	 	
                  P.
                    O. Box 427

                
	 	
                  Jackson,
                    MS 39205-0427

                

        

        
          	
                   

                	
                  Attention:

                	
                  Gina
                    M. Jacobs

                

        

        
          	
                   

                	
                  Telephone:

                	
                  601-949-4705

                

        

        
          	
                   

                	
                  Facsimile:

                	
                  
                    
                      601-949-4804

                    

                  

                

        

        
          	
                   

                	
                  Email:

                	
                  gjacobs@watkinsludlam.com

                

        

         

         

        If
          to the Executive:

         

        
          	 	Brad
                  Worthington
	 	
                  3517
                    158th Street

                
	 	
                  Lubbock,
                    Texas 79423

                

        

        
          	
                   

                	
                  Telephone:

                	
                  806-441-8200

                

        

        
          	
                   

                	
                  Facsimile:

                	
                  806-788-3398

                

          	
                   

                	
                  Email:

                	
                  
                    bdw@nts-online.net

                  

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.8  ENTIRE
        AGREEMENT; AMENDMENTS

       

      This
        Agreement, the Stock Purchase Agreement, and the documents executed in
        connection with the Stock Purchase Agreement, contain the entire agreement
        between the parties with respect to the subject matter hereof and supersede
        all
        prior agreements and understandings, oral or written, between the parties
        hereto
        with respect to the subject matter hereof. This Agreement may not be amended
        orally, but only by an agreement in writing signed by the parties
        hereto.

       

      9.9  GOVERNING
        LAW

       

      This
        Agreement will be governed by the laws of the State of Texas without regard
        to
        conflicts of laws principles.

       

      9.10  JURISDICTION

       

      Any
        action or proceeding seeking to enforce any provision of, or based on any
        right
        arising out of, this Agreement may be brought against either of the parties
        in
        the courts of the State of Texas, or, if it has or can acquire jurisdiction,
        in
        any of the United States District Courts in Texas, and each of the parties
        consents to the jurisdiction of such courts (and of the appropriate appellate
        courts) in any such action or proceeding and waives any objection to venue
        laid
        therein. Process in any action or proceeding referred  to in the
        preceding sentence may be served on either party anywhere in the
        world.

       

      9.11  SECTION
        HEADINGS, CONSTRUCTION

       

      The
        headings of Sections in this Agreement are provided for convenience only
        and
        will not affect its construction or interpretation. All references to "Section"
        or "Sections" refer to the corresponding Section or Sections of this Agreement
        unless otherwise specified. All words used in this Agreement will be construed
        to be of such gender or number as the circumstances require. Unless otherwise
        expressly provided, the word "including" does not limit the preceding words
        or
        terms.

       

      9.12  SEVERABILITY

       

      If
        any
        provision of this Agreement is held invalid or unenforceable by any court
        of
        competent jurisdiction, the other provisions of this Agreement will remain
        in
        full force and effect. Any provision of this Agreement held invalid or
        unenforceable only in part or degree will remain in full force and effect
        to the
        extent not held invalid or unenforceable.

       

      9.13  COUNTERPARTS

       

      This
        Agreement may be executed in one or more counterparts, each of which will
        be
        deemed to be an original copy of this Agreement and all of which, when taken
        together, will be deemed to constitute one and the same agreement.

       

      9.14  WAIVER
        OF
        JURY TRIAL

       

      THE
        PARTIES HERETO HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION WITH RESPECT TO
        THIS
        AGREEMENT.

       

      9.15  PIGGYBACK
        REGISTRATION RIGHTS

       

      On
        or
        after the Effective Date, and continuing until this Agreement expires or
        is
        earlier terminated, whenever the Parent proposes to file a registration
        statement under the Securities Act of 1933, as amended, to register any shares
        of the Parent Common Stock for sale in a secondary offering, and the
        registration form to be used may be used for the registration of the restricted
        Parent Common Stock the Executive may hold as a result of exercising any
        options
        granted hereunder or the Parent Common Stock underlying the options which
        the
        Executive holds (a "Piggyback Registration"), the Company will give prompt
        written notice to the Executive of its intention to effect such a registration
        and will include in such registration such of the Employee’s registerable
        securities of the Parent as the Executive has requested be included in such
        Piggyback Registration by notice to the Parent within 15 days after the receipt
        of the Parent’s notice.  The Parent will pay the registration expenses
        with respect to such Piggyback Registrations.  The Executive shall
        fully cooperate by giving such information as is required for such Piggyback
        Registration.

       

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

       

      
        	
                EMPLOYER:

                 

                NTS
                  Communications, Inc.

                 

              	 	 	
                EXECUTIVE:

                 

                 

              	 
	
                By:

              	 	 	
                 

              	 
	
                Guy
                  Nissenson, Chairman

              	 	 	
                Brad
                  Worthington, Individually

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