Document:

Unassociated Document

    Exhibit
      10.77

     

    ESCROW
      AGREEMENT

     

    THIS
      ESCROW AGREEMENT (this “Agreement”)
      is
      made as of June 19, 2006, by and among Xfone, Inc., a corporation incorporated
      under the laws of Nevada (the “Company”),
      the
      purchasers signatory hereto (each a “Purchaser”
and
      together the “Purchasers”),
      and
      Alon Reisser, Advocate, with an address at 6/19 Rabbi Yehuda Hanasi Street,
      Modiin Illit 71919, Israel (the “Escrow
      Agent”).
      Capitalized terms used but not defined herein shall have the meanings set forth
      in the Securities Purchase Agreement referred to in the first
      recital.

     

    W
      I T N E
      S S E T H:

     

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

     

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

     

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

     

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

     

     

    
      
         

      

      
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    ARTICLE
      1

     

    TERMS
      OF
      THE ESCROW

     

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

     

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

     

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

     

    FIBI
      BANK

    46
      AVNEY
      NEZER STREET

    KIRYAT
      SEFER, MODIIN ILLIT, 71919, ISRAEL

    BRANCH
      NUMBER: 180

    ACCOUNT
      NO: 715123

    ACCOUNT
      NAME: ALON REISSER, ADVOCATE - CLIENTS ESCROW ACCOUNT

    SWIFTCODE:
      FIRBILITXXX

    REMARK:
      XFONE/FIBI

    

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

     

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

    

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

    

    
      
         

      

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

    

    1.5 [RESERVED]

     

    1.6 Once
      the
      Escrow Agent receives Release Notices in the form attached hereto as
Exhibit
      X
      executed
      by the Company and each Purchaser, it shall wire 100% of the aggregate
      Subscription Amounts (including any interest thereon) per the instructions
      of
      the Company.

     

    1.7 If
      the
      Escrow Agent has not received all the Release Notices from the Purchasers on
      or
      before December 31, 2006, the Escrow Agent shall return the respective
      Subscription Amounts (including any interest thereon) to the
      Purchasers.

     

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

     

    ARTICLE
      II

     

    MISCELLANEOUS

     

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

     

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

     

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

     

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

     

    
      
         

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
         

      

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

     

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

     

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

    
      
         

      

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

     

    XFONE,
      INC.

     

    By:
      /s/
      Guy Nissenson

     

    Name:
      Guy
      Nissenson

     

    Title:
      President &CEO

     

     

    

     

    ESCROW
      AGENT:

     

    ALON
      REISSER

    

    /s/
      Alon Reisser

     

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO XFN ESCROW]

     

    Name
      of
      Holder: ____________________________________

    Signature
      of Authorized Signatory of Holder:
      __________________________

    Name
      of
      Authorized Signatory: _________________________

    Title
      of
      Authorized Signatory: __________________________

    

    

    

    [SIGNATURE
      PAGES CONTINUE]

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    Exhibit
      X to

     

    Escrow
      Agreement

     

    RELEASE
      NOTICE

     

    The
      UNDERSIGNED, pursuant to the Escrow Agreement, dated as of June 19, 2006, among
      Xfone, Inc., the Purchasers signatory thereto and Alon Reisser, Advocate, as
      Escrow Agent (the “Escrow
      Agreement”;
      capitalized terms used herein and not defined shall have the meaning ascribed
      to
      such terms in the Escrow Agreement), hereby notify the Escrow Agent that each
      of
      the conditions precedent to the purchase and sale of the Shares set forth in
      the
      Purchase Agreement have been satisfied. The Company and the undersigned
      Purchaser hereby confirm that all of their respective representations and
      warranties contained in the Purchase Agreement remain true and correct and
      authorize the release by the Escrow Agent of the funds and documents to be
      released at the Closing as described in the Escrow Agreement. This Release
      Notice shall not be effective until executed by the Company and the Purchasers.
      

     

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

     

    IN
      WITNESS WHEREOF, the undersigned have caused this Release Notice to be duly
      executed and delivered as of this ___ day of _______, 200_.

     

    XFONE,
      INC.

    

    

    By:
      ___________________________________

    Name:
      Guy
      Nissenson

    Title:
      President & CEO

    

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
        ||

         

      

      
        -8-

        
          

        

      

      
         

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO XFN RELEASE]

     

    Name
      of
      Holder: ____________________________________

    Signature
      of Authorized Signatory of Holder:
      __________________________

    Name
      of
      Authorized Signatory: _________________________

    Title
      of
      Authorized Signatory: __________________________

    

    

    

    
      
         

      

      
        -9-Prepared and filed by St Ives Financial

Exhibit 10.1

MIVA, Inc

Policy for Compensation

For Independent Members of

The Board of Directors

As adopted on June 14, 2006

     This policy provides a compensation program for the independent members of the board of directors designed to adequately compensate them for their time and effort.  Board members who do not qualify as independent directors under NASDAQ rules, as they are established from time to time, are not included in this program.  

     The overall goals of this policy are:

	•	 	To align the interests of shareholders and directors and

	 	 	 
	•	 	To provide value to directors for value received.

     The program provides for cash and equity payments.  The equity payments are in the form of Restricted Stock Units (“RSUs”).  Each RSU consists of the right to receive one share of stock upon reaching a vesting event, a predetermined point in time.  At the request of a board member or pursuant to the terms of the RSU Agreement, the RSU may be settled partially in stock and partially in cash to facilitate the payment of any tax liability arising from settlement of the RSU.

     One compensation scheme is applicable to all independent board members.  A second scheme provides for additional compensation for the extra efforts and responsibilities for independent directors in the positions of chair of the board and lead independent director.

General Board Compensation

     Board members are to be given an RSU grant for their service on the board and cash stipends for participation in board and committee meetings.  The RSU grant shall be for the whole number of shares that could be purchased for $40,000 based on the closing price of the company’s stock on the first trading day of the calendar year.  The RSUs will vest at the rate of one-twelfth (1/12) of the total at the end of each month of the calendar year.  While the vesting will occur on a monthly basis, administratively the actual issuance of shares will take place at the end of each quarter.  If an individual becomes an independent member of the board of directors after January 1 of a year, (i) the RSU award will be based
on a fractional portion of the full year dollar amount the numerator of which will be the number of months in which the individual will be on the board and the denominator of which is twelve (12), (ii) the fraction for monthly vesting will be a numerator of one (1) and a denominator of the number of months in which the individual will be on the board, and (iii) the number of shares will be based on the closing stock price the trading day preceding the date the individual becomes a member.  Any RSUs that are unvested as of the date of termination of service as a director are automatically forfeited.

 

The cash stipends, which are to be paid at the end of each calendar quarter, are as follows:

Board meeting

$2,000 per board meeting attended in person.

$500 per board meeting attended telephonically

Committee meetings

	 	$1,000 per committee meeting attended in person, except the audit committee chairman who shall receive $2,000 per meeting.

	 	 
	 	$500 per meeting attended telephonically, except for the audit committee chairman who shall receive $1,000 per meeting.

Chair and Lead Director Compensation

In addition to the general board compensation,
 the board member holding the position of chair of the board and the board member holding the
 position of lead independent director shall each be given the following additional RSU grant
 and cash stipend.

	 	RSU grant

	 	 
	 	The RSU grant shall be for the whole number of shares that could be purchased for $15,000 based on the closing price of the company’s stock on the first trading day of the calendar year.  The RSUs will vest at the rate of one-fourth (1/4) of the total at the end of each quarter of the calendar year.

	 	 
	 	Cash stipend

	 	 
	 	The cash stipend, one-fourth (1/4) of which is to be paid at the end of each calendar quarter of the year, shall be $15,000.

	 	 
	 	Any RSUs that are unvested or any cash stipend that is not due and payable as of the date of termination of service as the Chairman of the Board or lead independent director are automatically forfeited.

Transition

For the year 2006 the following transitional policy shall apply.

  

	 	•	The number of RSUs for general board compensation, chair compensation, and lead director compensation shall be based on the closing stock price on the trading day preceding the date this policy is adopted.

	 	 	 
	 	•	A proportion of the number of RSUs for general board compensation will immediately vest on the date this policy is adopted based on a fraction the numerator of which is the number of completed months for the year and the denominator of which is twelve (12). 

	 	 	 
	 	•	The chair and lead director compensation will be effective as of April 1, 2006, and will operate for nine (9) months of 2006.  Accordingly, for the year 2006  the RSU grants and cash stipends will each be based on $11,250 and one-third (1/3) will be vested/paid at the end of each of the remaining quarters of the calendar year, subject to such person serving in such capacity on the vesting or payment date.

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