Document:

Unassociated Document

    Exhibit
      10.7

    

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (this Agreement), dated July 1, 2007, is by
      and
      between NORTH PITTSBURGH TELEPHONE COMPANY, a Pennsylvania business corporation
      (hereinafter called “Employer”), and NORTH PITTSBURGH SYSTEMS, INC., a
      Pennsylvania corporation and the sole shareholder of Employer (“NPSI”), each
      having its principal office at 4008 Gibsonia Road, Gibsonia, Pennsylvania
      15044-9311, on the one hand, and HARRY R. BROWN (hereinafter called “Employee”),
      on the other hand.

    

    WHEREAS,
      Employee is currently employed by Employer as an executive officer pursuant
      to
      the terms of an Amended and Restated Executive Employment Agreement dated as
      of
      April 19, 2002 as extended and amended by an Extension of Amended and Restated
      Executive Employment Agreement and Retention Payment Program, dated October
      28,
      2003, and a letter agreement dated in March 2002 between Employer and Employee
      pertaining to and headed “Retention Payment Program” (such Amended and Restated
      Executive Employment Agreement as so extended and amended, and such letter
      agreement headed “Retention Payment Program”, are hereinafter referred to
      collectively as the “Existing Agreement”);

     

    WHEREAS,
      the Existing Agreement terminated at 5 p.m. on January 5, 2007, but Employer
      has
      continued to employ Employee, and Employee has continued to work for Employer,
      since then as if the Existing Agreement were still in effect and such informal
      extension of the Existing Agreement, if any, is included hereafter in this
      Agreement within the meaning of “Existing Agreement”;

     

    WHEREAS,
      Employer believes that it is in the best interests of Employer, and Employee
      is
      willing to agree, that the employment arrangements between Employer and Employee
      be extended and otherwise amended as provided in this Agreement;

     

    WHEREAS,
      Employee also is an executive officer of NPSI;

     

    WHEREAS,
      retaining Employee’s skills and his experience with and understanding of the
      business and operations of NPSI and its subsidiaries would be extremely valuable
      to maximizing benefits for NPSI’s shareholders and NPSI’s subsidiaries’
customers and other constituencies;

     

    WHEREAS,
      NPSI therefore wishes to encourage Employee to continue his employment with
      Employer and his services to NPSI and its other subsidiaries and deems it
      appropriate to compensate Employee for the benefits that Employee would help
      to
      achieve for NPSI’s shareholders and NPSI’s and its subsidiaries’
constituencies;

     

    NOW,
      THEREFORE, for and in consideration of the mutual promises, agreements and
      covenants herein contained, the parties, intending to be legally bound, hereby
      agree as follows:

     

    1.           Termination
      of Existing Agreement.  The Existing Agreement is hereby
      terminated, effective as of the date of this Agreement; provided,
however, that such termination shall neither affect any right of either
      Employer or Employee that arose prior to (including but

    

    
      
        
           

        

        
           

          
            

          

        

        
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    not
      limited to any right based on facts or circumstances occurring prior to but
      becoming known to the party with such right only after) such termination of
      the
      Existing Agreement nor relieve either Employer or Employee of responsibility
      for
      satisfying or the consequences of having failed to satisfy any obligation under
      the Existing Agreement that under the Existing Agreement it or he was to satisfy
      prior to such termination of the Existing Agreement.

     

    2.           Employment.  Employer
      shall continue to employ Employee, and Employee accepts such continued
      employment by Employer, upon the terms and conditions of this
      Agreement.

     

    3.           Term.  The
      term of employment under this Agreement (the “Term”) shall commence on the date
      of this Agreement and shall terminate at 5 p.m. on March 31, 2008.

     

    4.           Fidelity
      Payment.  Employee and Employer each agrees and confirms that
      neither has any further obligation to the other with respect to any “Fidelity
      Payment” (as such term is used in the Existing Agreement).

     

    5.           Compensation
      and Benefits.

     

    (a)           By
      Employer.  For all services rendered by Employee hereunder, Employer
      shall (i) pay Employee a base annual salary, payable in equal monthly
      installments, one at the end of each monthly period, with the base annual salary
      presently in effect through December 31, 2007 being $310,400; (ii) include
      the
      Employee as a participant in the Employer’s salaried employees’ benefit programs
      and provide to Employee benefits under each such salaried employees’ benefit
      program that are no less favorable to Employee than the benefits that were
      provided to Employee under such benefit plan on May 31, 2007 (or would have
      been
      provided to Employee under such benefit plan as of May 31, 2007 if Employee
      had
      been employed by Employer and covered by such benefit plan on May 31, 2007),
      including but not limited to post retirement benefits; and (iii) provide
      Employee with the use of an automobile.  Use of the automobile shall
      be subject to such rules and limitations as Employer may establish from time
      to
      time.  Salary payments shall be subject to withholding and other
      applicable taxes.  All compensation payable under the Executive Bonus
      Plans referred to in subparagraph (c) immediately below shall be included in
      the
      calculation of Employee’s retirement benefits.  In addition to any
      other benefits that may apply to Employee, or that may be implemented during
      the
      term of this Agreement, Employer shall provide to Employee such additional
      life
      insurance on the life of Employee as shall be necessary to cause the aggregate
      of the life insurance provided by Employer on the life of Employee to equal
      not
      less than three and one-fourth (31⁄4) times Employee’s base salary, and the costs
      of all such life insurance aggregating three and one-fourth (31⁄4) times
      Employee’s base salary shall be borne 100% by Employer.

     

    In
      addition, if Employee dies before he retires from his employment with Employer,
      Employer will pay for Employee’s wife’s benefit, in one lump sum payment, the
      actuarial differential between the aggregate benefits payable under the North
      Pittsburgh Telephone Company Retirement Plan and the North Pittsburgh Telephone
      Company Retirement Income Restoration Plan if he had retired as of the date
      of
      his death and the aggregate benefits payable under such Plans as a result of
      his
      death while still employed with Employer under this Agreement.

    

    
      
        
           

        

        
           

          
            

          

        

        
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    (b)           Annual
      Review of Base Salary.  Employer will review Employee’s base
      salary on at least an annual basis for the purpose of determining any increase
      which may be justified or merited.

     

    (c)           Bonus
      Plan.  NPSI shall (and shall use its best efforts to cause its
      successors, if any, as the majority shareholder of Employer to) maintain an
      Executive Bonus Plan in effect throughout the Term and include Employee as
      a
      participant in each such Executive Bonus Plan; provided, however,
      that NPSI (and any such successor to NPSI) annually may modify or amend the
      targets and matrices on the basis of which bonuses are to be determined,
      calculated or awarded under any such Executive Bonus Plan, so long as such
      targets and matrices as so modified or amended are reasonably related to the
      reasonable expectations and goals of NPSI’s (or such successor’s) business for
      the relevant period.

     

    6.           Duties
      and Office.   Employee is serving, at the direction of Employer’s
      President and/or Board of Directors, as an executive officer of Employer with
      the title of President (and, at the direction of the Board of Directors of
      NPSI,
      as an executive of NPSI with the titles of President and Chief Executive
      Officer), and Employee’s duties in that capacity are as set forth in Schedule A
      attached hereto, with the understanding that Employee’s duties may from time to
      time be modified or expanded by Employer’s President and/or Board of Directors
      as the business interests of Employer may require.  It is expressly
      understood and agreed that Employer’s Board of Directors may elect or assign
      Employee to a different position having different responsibilities and duties
      than those set forth in such Schedule A and different compensation and benefits
      than those set forth in Paragraph 5 hereof, provided that:

     

    (a)           Prior
      to the occurrence of a Change of Control (as defined below), the different
      position to which Employee is so elected or assigned shall be an executive
      office with responsibilities and duties equal to or greater than those set
      forth
      in this Agreement and the Schedule A attached hereto; and

     

    (b)           Upon
      and after the occurrence of a Change of Control, the limitations set forth
      in
      clause (a) immediately above shall not apply, and the different position to
      which Employee is then so elected or assigned may be a non-executive position
      with responsibilities and duties lesser than those set forth in this Agreement
      and the Schedule A attached hereto; and

     

    provided,
      further, however, that in no event, whether before or after the
      occurrence of a Change of Control and regardless of any change in the position,
      responsibilities and/or duties of Employee hereunder, shall the compensation
      and
      benefits provided to Employee under this Agreement be less than those set forth
      in Paragraph 5 hereof.

     

    For
      purposes of this Agreement, a Change of Control shall be deemed to have occurred
      in the event of:  (i) the acquisition, directly or indirectly, by
      any person or entity (other than NPSI), or persons or entities acting in concert
      (a “group”), whether by purchase, merger, consolidation or otherwise, of voting
      power over that number of shares of the capital stock of either Employer or
      NPSI
      which, when combined with the existing voting power of such person, entity
      or
      group, aggregates voting power over such number of shares of the capital stock
      of Employer or NPSI as then has the right to cast fifty percent (50%) or more
      of
      the votes which all shareholders of

    

    
      
        
           

        

        
           

          
            

          

        

        
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    Employer
      or NPSI would be entitled to cast in the election of directors of Employer
      or
      NPSI, respectively, under normal circumstances (that is, for example, without
      giving effect to any such voting rights of preferred shares existing by reason
      of a default in the payment of preferred dividends) and without giving effect
      to
      any elimination of voting rights of “control shares” (as defined in 15 Pa. C.S.
      Section 2562) pursuant to Subchapter G of Chapter 25 of the Pennsylvania
      Business Corporation Law of 1988, as amended, or any successor or comparable
      statute (a “controlling interest”) or (ii) the sale, lease, exchange or
      other transfer (in one transaction or a series of related transactions) of
      all,
      or substantially all, of the assets of Employer or NPSI to a transferee or
      transferees other than NPSI, Employer, an entity of which a controlling interest
      is owned, directly or indirectly, by Employer or NPSI, or a person, entity
      or
      group which, prior to the sale, lease, exchange or other transfer of assets,
      owns, directly or indirectly, a controlling interest in Employer or
      NPSI.  All fringe and other employee benefits applicable to Employee
      which have a vesting schedule shall be deemed fully vested as of the date of
      a
      Change of Control.

     

    7.           Exclusivity
      of Employment.  Employee agrees to work full-time and, except to
      the extent permitted otherwise pursuant to the following provisions of this
      Paragraph 7, exclusively for Employer, NPSI and NPSI’s other subsidiaries and
      devote his talents, skills, attention, best efforts and time during normal
      business hours and such other times as may be necessary, to the business and
      affairs of Employer, NPSI and NPSI’s other subsidiaries and to discharge the
      responsibilities assigned to him and to use his best efforts to perform
      faithfully and efficiently the responsibilities assigned to
      him.  Employee shall not during the term of this Agreement be engaged
      in any other employment without the consent of Employer.  Employee may
      (i) serve on civic or charitable boards or committees, (ii) perform volunteer
      work for any charitable, educational, civic or other nonprofit organization,
      including but not limited to youth sports teams and clubs, and (iii) participate
      in non-competing family-owned businesses, so long as such activities do not
      interfere with the performance of Employee’s job responsibilities under this
      Agreement.

     

    8.           Non-solicitation
      of Employees or Customers.  Employee agrees that during his
      employment with Employer and continuing for fifteen (15) months thereafter,
      Employee shall not, directly or indirectly, for his own account or as an agent,
      servant or employee of any business or organization, engage, hire or offer
      to
      hire or entice away any then current officer, employee, agent or customer of
      Employer, NPSI or any of Employer’s or NPSI’s subsidiaries, joint ventures or
      related entities, or in any other manner persuade or attempt to persuade any
      then current officer, employee, agent or customer of Employer, NPSI or any
      of
      Employer’s or NPSI’s  subsidiaries, joint ventures or related entities
      to discontinue his or her relationship therewith for any reason.

     

    9.           Confidential
      Information & Employer Materials.

     

    (a)           Employee
      acknowledges that Employer has, through Employee and other key personnel,
      developed valuable confidential information such as, but not limited to, plans,
      diagrams, equipment specifications, business strategies, pricing methods,
      policies, resolutions, negotiations, customer/client lists, technical data,
      computer programs, algorithms and trade secrets relating to the business of
      Employer, NPSI or other subsidiaries of NPSI.  Confidential
      information includes information which is not generally known in the business
      conducted by

    

    
      
        
           

        

        
           

          
            

          

        

        
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    Employer,
      NPSI or any of NPSI’s subsidiaries or affiliates, but does not include general
      skills, generally known knowledge and experience acquired by Employee during
      his
      employment with Employer.  Employee covenants and agrees not to
      disclose this confidential information outside Employer and expressly covenants
      and agrees (i) not to provide any such confidential information to any new
      employer of Employee and (ii) to use his best efforts both during and after
      his
      employment with Employer to prevent the dissemination of any such confidential
      information outside Employer.  Employee further covenants and agrees
      to use such confidential information exclusively for the benefit of Employer,
      NPSI and/or NPSI’s other subsidiaries and to make any new employer of Employee
      aware of Employee’s obligations under this Paragraph 9.

     

    (b)           Any
      such confidential information developed by Employee, whether developed during,
      before or after the term of this Agreement, shall be the property of
      Employer.  Should Employer elect to apply for any patent, copyright or
      other right relating to any of the confidential information or to any
      development made by Employee on behalf of Employer, NPSI or any of NPSI’s other
      subsidiaries or affiliates during Employee’s employment with Employer or any of
      NPSI’s subsidiaries or affiliates (whether during or before the term of this
      Agreement), Employee shall, upon written request of Employer, assign and
      transfer to Employer (or such other entity or person as Employer shall direct)
      Employee’s entire right, title and interest therein.  Employee further
      agrees to assist Employer with the prosecution of any such application, whether
      such assistance is requested during or after the term of this
      Agreement.

     

    (c)           All
      documents and materials of any nature pertaining to activities of Employer,
      NPSI
      or any of NPSI’s subsidiaries or affiliates, which are in Employee’s possession
      or control, including but not limited to memoranda, notebooks, notes, data
      sheets, papers, tapes and computer disks, and whether in writing or in any
      electronic or other recording medium, are and shall be the sole property of
      Employer, and each such item and all copies and reproductions of them shall
      be
      given to Employer upon Employee’s separation from employment with Employer and
      at any earlier time when requested by Employer.

     

    10.           Expenses.  Employer
      shall reimburse Employee for all reasonable and necessary expenses incurred
      by
      Employee in carrying out Employee’s duties under this
      Agreement.  Employee shall present to Employer, on a monthly basis, an
      itemized account of such expenses in any form required by the
      Employer.

     

    11.           Termination
      By Employee.  Employee may, with or without cause,
      terminate his employment with Employer by giving not less than thirty (30)
      days’
prior written notice to Employer.  Employee shall continue to render
      his services to Employer in accordance with this Agreement until the effective
      date of such termination unless Employer states otherwise, and Employee shall
      be
      paid his regular compensation to the date of termination.

     

    12.           Termination
      of Employee by Employer.

     

    (a)           Without
      Cause.  Employer shall have the right, without cause or stated
      reason, to terminate Employee’s employment at any time.

    

    
      
        
           

        

        
           

          
            

          

        

        
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    (b)           For
      “Just or Good Cause”.  Employer may terminate Employee’s
      employment at any time for “just or good cause.”  “Just or good cause”
may include, but is not limited to:

     

    
      	
               

            	
              (i)

            	
              Violation
                by Employee of any of the provisions of this Agreement (including
                but not
                limited to those set forth in Paragraphs 7, 8 and 9
                hereof);

            

    

     

    
      	
               

            	
              (ii)

            	
              Employee’s
                disloyalty, insubordination or dishonesty toward Employer or commission
                or
                conviction (whether that conviction be a consequence of plea, finding
                or
                verdict) of a felony or of any crime involving moral
                turpitude;

            

    

     

    
      	
               

            	
              (iii)

            	
              Employee’s
                persistent incompetence or persistent neglect of his assigned
                duties;

            

    

     

    
      	
               

            	
              (iv)

            	
              Employee’s
                public actions which may damage the business interests
                or image of Employer, NPSI or any of NPSI’s subsidiaries or affiliates;
                or

            	
               

            

    

     

    
      	
               

            	
              (v)

            	
              Employee’s
                actions in the workplace which violate Employer’s standards of employee
                conduct.

            

    

     

    13.           Severance
      Compensation.

     

    (a)           Termination
      by Employer Other Than for “Just or Good Cause”.  If prior to the
      expiration of Employee’s term of employment under this Agreement, Employer
      terminates Employee’s employment under this Agreement other than for “just or
      good cause”, then Employer shall be obligated to pay to Employee, within thirty
      (30) days after the date of such termination (or such longer period after such
      termination as then shall be prescribed by or advisable under Section 409A
      of
      the Internal Revenue Code (the “Code”) or the regulations promulgated
      thereunder), a severance amount equal to the aggregate of Employee’s annual base
      salary (at its level as of the date of termination) which would be payable
      to
      Employee for the balance of the present term of employment under this Agreement;
      provided, however, that in no event shall the severance amount to
      be paid Employee under this provision exceed two hundred and fifty percent
      (250%) of Employee’s annual base salary (at its level as of the date of such
      termination) or be less than one hundred twenty-five percent (125%) of such
      annual base salary.

     

    (b)           Termination
      by Employer for “Just or Good Cause” or by Employee by Retirement or
      Resignation.  In the event of the termination of Employee’s
      employment by Employer for just or good cause (as described in Paragraph 12(b)
      above) or by Employee by his retirement or resignation, Employer shall have
      no
      obligation to pay Employee any severance amount described in this Paragraph
      13.

     

    14.           Bona
      Fide Executive/High Policy Making Employee Retirement
      Program.  Employee acknowledges that he is presently a bona fide
      executive and/or high policy making employee of Employer and that he recognizes
      and has been informed that Employer may, at its discretion, require that
      Employee retire at the age of sixty-five (65) years or older if for the two
      (2)
      year period immediately before retirement Employee has remained employed in
      a
      bona fide executive or high policy making position and if at that time Employee
      is entitled to an immediate

    

    
      
        
           

        

        
           

          
            

          

        

        
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    nonforfeitable
      annual retirement benefit from a pension, profit sharing savings, or deferred
      compensation plan, or any combination of such plans of Employer, which benefit
      equals in the aggregate at least $44,000 annually or such greater amount as
      may
      be set forth in the provisions of the federal Age Discrimination in Employment
      Act, as amended, which Act concerns mandatory retirement of bona fide executives
      or high policy makers.

     

    15.           Death
      During Employment.  If Employee dies during the term of his
      employment hereunder, Employer shall pay to Employee’s estate the compensation
      that would otherwise be payable to Employee up to the end of the month in which
      his death occurs.

     

    16.           Interpretation.  This
      Agreement shall be construed in accordance with, and be governed by, the laws
      of
      the Commonwealth of Pennsylvania.

     

    17.           Notices.  Any
      notice required or desired to be given under this Agreement shall be deemed
      given if in writing and sent by certified mail, return receipt requested, to
      Employee’s residence (if the notice is being given to Employee) or to Employer’s
      principal office, to the attention of the President (or, if Employee is the
      President, to the attention of the Chairman of the Board of Directors) of
      Employer (if the notice is being given to Employer); except
      that  Employer may deliver the written notice to the person of
      Employee in lieu of such mailing.

     

    18.           Waiver
      of Breach.   Employer’s waiver of, or failure to act upon, a
      breach of any provision in this Agreement by Employee shall not operate or
      be
      construed as a waiver of any subsequent breach by Employee.  No waiver
      shall be valid unless in writing and signed by an authorized officer of
      Employer.

     

    19.           Assignment.  
      Employee acknowledges that his services are unique and are personal to
      Employer.  Employee may not assign his rights or delegate his duties
      or obligations under this Agreement.  Employer’s rights and
      obligations under this Agreement shall inure to the benefit of, and shall be
      binding upon, Employer’s successors and assigns.  Employer shall
      provide to any person, entity or group that Employer is aware is likely to
      acquire a controlling interest in Employer or NPSI a copy of this Agreement,
      make that person/entity/group aware of the provisions of this Agreement and
      require that person/entity/group, as a condition of the acquisition, to
      acknowledge and agree to the provisions of this Agreement.

     

    20.           Arbitration
      of Claims and Disputes.  Except to the extent expressly set forth
      to the contrary in the second paragraph of this Paragraph 20, no civil action
      concerning any dispute, controversy or claim between Employee and Employer
      or
      NPSI arising out of or in connection with this Agreement or out of Employee’s
      employment with or the termination of Employee’s employment with Employer or any
      affiliate of Employer shall be instituted before any court; all such disputes,
      controversies and claims shall instead be submitted to final and binding
      arbitration under the auspices of The American Arbitration Association in
      Pittsburgh, Pennsylvania.  Such arbitration shall be conducted in
      accordance with the rules, protocols and procedures of The American Arbitration
      Association.  Except to the extent expressly set forth to the contrary
      in the second paragraph of this Paragraph 20, this provision shall apply to
      any
      and all such disputes, controversies and claims, whether asserted by or against
      Employer or NPSI and/or against any employee, officer, alleged agent, director
      or affiliate of Employer or NPSI with regard to any matter arising out of or
      in
      connection with this Agreement or out of or in connection with

    

    
      
        
           

        

        
           

          
            

          

        

        
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    Employee’s
      employment with or the termination of Employee’s employment with Employer or any
      affiliate of Employer, including, but not limited to, any claim relating to
      the
      purported validity, interpretation, enforceability or breach of Employer’s
      standards of Employee conduct or this Agreement and/or any other claim or
      controversy arising out of the employment relationship (or the nature of the
      relationship) or the commencement or termination of that relationship,
      including, but not limited to, claims for violation of law and/or for breach
      of
      covenant, breach of implied covenant of good faith and fair dealing, wrongful
      termination, breach of contract, and/or intentional infliction of emotional
      distress, defamation, breach of right of privacy, interference with the
      advantageous or contractual relations, conspiracy and/or other tort claims
      of
      any kind.  All costs and expenses of the arbitration, including but
      not limited to reasonable attorneys’ fees, shall be allocated among the parties
      according to the arbitrators’ discretion.  The arbitrators’ award
      resulting from such arbitration shall be final, binding and nonappealable and
      may be confirmed and entered as a final judgment in any court of competent
      jurisdiction and enforced accordingly.  Furthermore, the parties
      hereto expressly agree that, except to the extent expressly set forth to the
      contrary in the second paragraph of this Paragraph 20, proceeding to arbitration
      and obtaining an award thereunder shall be a condition precedent to the bringing
      or maintaining of any action in any court with respect to any dispute arising
      under or in connection with this Agreement.

     

    The
      first
      paragraph of this Paragraph 20 shall not apply to any dispute, controversy
      or
      claim arising under any of Paragraphs 7, 8 and 9 of this
      Agreement.  This Paragraph 20 shall not give Employee the right to
      seek a stay or injunction of any Employer action pending resolution of a claim
      or dispute through arbitration.

     

    21.           Entire
      Agreement.  This Agreement contains the entire understanding of
      the parties with respect to the subject matter hereof, and all prior
      understandings and previously executed employment agreements between Employer
      and/or NPSI, on the one hand, and Employee, on the other hand, if any,
      (including but not limited to the Existing Agreement) are hereby
      superceded.  This Agreement may not be changed orally but only by an
      agreement in writing signed by all the parties hereto.

     

    22.           Headings.  The
      headings in this Agreement are for convenience only and shall not be deemed
      to
      or used to interpret or construe any provision of this Agreement.

     

    23.           Counterparts.  This
      Agreement may be executed in two (2) or more counterparts, each of which shall
      be deemed an original but all of which together shall constitute one and the
      same instrument.

     

    24.           Counsel.  Employee
      acknowledges that he has been provided with notice that he may review this
      Agreement with legal counsel of his choosing prior to
      signing.  Employee further acknowledges that Employee has had adequate
      time to exercise the opportunity to consult

     

    [Remainder
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    with
      legal counsel of his choosing with regard to this Agreement and that he is
      entering into this Agreement after having had full opportunity to review its
      provisions.

     

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

     

    
      
        
          	 	 	 	 	 	 
	 	 	 	NORTH
                  PITTSBURGH TELEPHONE COMPANY 	 
	 	 	 	 	 	 
	 	
                   

                	 	By 	
                  /s/
                    Matthew D.
                    Poleski 

                	 

        

        
          
            	 	 	 	 	 	 
	Attest 	
                    /s/
                      N. William
                      Barthlow 

                  	 	 	
                     

                  	 
	 	
                     

                  	 	 	
                     

                  	
                    (Seal) 

                  

          

          
            
              	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	NORTH
                      PITTSBURGH SYSTEMS, INC. 	 
	 	 	 	 	 	 
	 	
                       

                    	 	By 	
                      /s/
                        Matthew D.
                        Poleski

                    	 

            

            
              
                	 	 	 	 	 	 
	Attest 	
                        /s/
                          N. William
                          Barthlow

                      	 	 	
                         

                      	 
	 	
                         

                      	 	 	
                         

                      	
                        (Seal) 

                      

              

            

          

        

        
          
            	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

          

          
            	 	
                     

                  	 	(Employee)  
                    	
                     /s/
                      H. R.
                      Brown 

                  	 	 

          

          
            
              	 	 	 	 	 	 
	Attest 	
                      /s/
                        N. William
                        Barthlow

                    	 	 	
                       

                    	 

            

            
              
                	 	 	 	 	 	 

              

            

          

        

      

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
      A

    

    

    NOTE:  This
      Exhibit includes general responsibilities of the Officer position listed below.
      This description of responsibilities is not all-inclusive.

    

    RESPONSIBILITIES
      – President

    

    
      	
              1.

            	
              President
                of North Pittsburgh Telephone Company (“NPTC”)– Responsible for the
                management and operation of NPTC as directed by the Board of Directors
                of
                North Pittsburgh Systems, Inc. (“NPSI”), and serve as NPTC’s
                President.

            

    

    

    
      	
              2.

            	
              President
                of NPSI– Responsible for the management of NPSI as directed by the
                Board of Directors of NPSI, and serve as NPSI’s
                President.

            

    

    

    
      	
              3.

            	
              Corporate
                Objectives– Develop corporate strategic plans, financial objectives
                and goals of NPSI and NPTC and, in consultation with their Presidents,
                of
                NPSI’s other subsidiaries, including Penn Telecom, Inc. (“PTI”) and
                Pinnatech, Inc. (“Pinnatech”), which will be presented to the companies’
                respective Boards of Directors on an annual
                basis.

            

    

    

    
      	
              4.

            	
              Operations
                of NPSI and Subsidiaries– Responsible for overall operations of NPSI
                and NPTC and, through their Presidents, of each of NPSI’s other
                subsidiaries, including PTI and Pinnatech. Provide leadership to
                the Vice
                Presidents of NPSI and its subsidiaries and to the Presidents of
                PTI and
                Pinnatech, giving direction and support in achieving NPSI’s and its
                subsidiaries’ goals and objectives.

            

    

    

    
      	
              5.

            	
              Salary
                Committee & Employee Union– Give final approval to all union
                negotiations and grievance procedures involving any of NPSI’s
                subsidiaries. Provide direction to NPSI’s and its subsidiaries’ Salary
                Committees during review of management employees’ evaluations,
                establishing of wage schedules and approving of management wage
                increases.

            

    

    

    
      	
              6.

            	
              Future
                Planning– Provide direction and support in all areas of planning,
                funding and budgeting of NPSI and its subsidiaries to assure customer
                service and profitability meet NPSI’s and its subsidiaries’
                objectives.

            

    

    

    

    Note:  Although
      the employee is a full-time employee of NPTC, the time and expenses incurred
      in
      the employee’s providing services to NPSI or any of NPSI’s subsidiaries other
      than NPTC, as contemplated above, will be allocated to and charged against
      the
      account of NPSI or such other subsidiary of NPSI.Unassociated Document

    Exhibit
      10.8

    

    

    NORTH
      PITTSBURGH SYSTEMS, INC.

    2007
      EXECUTIVE OFFICERS BONUS PLAN

    

    

    Purpose
      of Plan

    

    
      	
              1.

            	
              The
                purpose of this Bonus Plan (the “Plan” or “this Bonus Plan”) is to further
                the long-term growth and earnings of North Pittsburgh Systems, Inc.
                (“NPSI” or “Company”) and its subsidiaries by offering bonus incentives to
                supplement the base salaries of those officers of NPSI who will be
                largely
                responsible for such growth. The bonuses are for achievements that
                are
                above and beyond what would normally be expected. NPSI considers
                its
                executives to be well compensated and with their base salaries comes
                an
                expectation of superior performance. The bonuses are for even better
                performance.

            

    

    

    Bonus
      Determination Period

    

    
      	
              2.

            	
              This
                Bonus Plan shall be in effect for Calendar Year 2007 (that is, from
                January 1, 2007 through December 31, 2007), except that, if a Change
                of
                Control (as defined in Paragraph 10 below) occurs before December
                31,
                2007, this Bonus Plan shall be in effect for only such shorter period
                that
                begins with January 1, 2007 and ends with the date on which the Change
                of
                Control occurs. The period during which this Bonus Plan is in effect
                is
                hereafter referred to as the “Bonus Determination Period.”  The
                establishment of any bonus plans for subsequent periods shall be
                by action
                of NPSI’s Board of Directors upon the recommendation of its Compensation
                Committee.

            

    

    

    Eligibility
      and Participation

    

    
      	
              3.

            	
              Each
                person who is a Vice President or President of NPSI (each such office
                is
                hereafter referred to as an “Eligible Office”) at the end of the Bonus
                Determination Period or who held an Eligible Office at the time of
                his/her
                death, retirement or termination during the Bonus Determination Period
                will participate in the Plan for the period of time during the Bonus
                Determination Period that such person held any Eligible Office, provided
                that, in accordance with Paragraph 9 below, the retired or terminated
                person does not seek or enter employment with a competing business.
                The
                persons who pursuant to this Paragraph 3 participate in the Plan
                are
                hereafter referred to collectively as the “Participants” and individually
                as a “Participant.”

            

    

    

    Total
      Potential Maximum Aggregate Bonus Amount

    

    
      	
              4(a).

            	
              If
                the Bonus Determination Period is a full calendar year, the total
                maximum
                amount potentially payable to all Participants in the aggregate for
                the Bonus Determination Period (the “Total Potential Maximum Aggregate
                Bonus Amount”) will be determined at the end of the Bonus Determination
                Period by multiplying the aggregate total base salaries paid throughout
                Year 2007 to all Participants by
                20%.

            

    

     

    

      
        	
                4(b).

              	
                If
                  a Change of Control (as defined in Paragraph 10 below) occurs before
                  December 31, 2007, the aggregate bonus payable to all Participants
                  shall
                  be the total bonus amount for each Eligible Executive Officer.
                  For
                  purposes of the determination of the Total Potential Maximum Aggregate
                  Bonus Amount when a Change of Control has occurred, it shall be
                  assumed
                  that the base salaries of all Participants in effect immediately
                  prior to
                  the Change of Control would have continued for the entire
                  year.

              

      

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

    

     

    Bonus
      Criteria

    

    
      	
              5.

            	
              The
                portion of the Total Potential Maximum Aggregate Bonus Amount which
                will
                be awarded to Participants for 2007 will be determined by the Board
                of
                Directors upon the recommendation of the Compensation Committee.
                In
                determining the magnitude of the actual aggregate bonus amount, the
                Board
                of Directors and Compensation Committee shall, among other things,
                consider, within the context of the Company’s Business Plan, for selected
                services, new service growth measured on a net adds
                basis.  Successful completion during 2007 of the North
                Pittsburgh Telephone Company’s Fiber-to-the-Node Project and associated
                multi megabit broadband equipment and products, and the successful
                completion of Phase 1 of the migration of the North Pittsburgh Telephone
                Company IT System to a new Data Center provider shall also be
                considered.

            

    

    

    Payment
      of Bonuses Generally

    

    
      	
              6.

            	
              The
                payment of any bonuses is contingent upon the NPSI Shareholders receiving
                dividends during 2007 of not less than $.80 per share.  This
                contingency will encourage the Officers to continue managing NPSI
                in a
                manner that will produce adequate free cash flow to enable the Board
                to
                declare the ongoing payment of dividends at least equal to the prior
                year.

            

    

    

    Payment
      of Individual Bonuses

    

    
      	
              7.

            	
              The
                individual bonuses payable under the Plan shall be distributed in
                equal
                amounts among all Participants, except that, unless the Board of
                Directors
                upon the recommendation of its Compensation Committee shall determine
                otherwise, in the event that a Participant held an Eligible Office
                for
                less than the full Bonus Determination Period, (x) that Participant’s
                share of the bonus payable under the Plan will be a fraction of a
                full
                share, the numerator of which is the number of days the Participant
                held
                any Eligible Office during the Bonus Determination Period, and the
                denominator of which is the total number of days in the Bonus
                Determination Period, and (y) the value of a full share shall equal
                the
                bonus payable under the plan divided by the sum of (i) the number
                of
                Participants who held an Eligible Office throughout the full Bonus
                Determination Period and (ii) all of the fractions of full shares
                determined pursuant to clause (x) in this Paragraph
                7.

            

    

    

    All
      bonuses for a Bonus Determination Period (subject to withholding of all
      applicable income and employment taxes) will be determined and paid as soon
      as
      practicable following the Bonus Determination Period and, in the event of a
      Change of Control, no later than 30 days following the occurrence of the Change
      of Control.

    

    Death
      of a Participant

    

    
      	
              8.

            	
              If
                a Participant dies during the Bonus Determination Period or thereafter
                before the bonus is paid, the payment of the bonus will be made to
                the
                Participant’s beneficiary (as designated in a writing signed and dated by
                the Participant and delivered to NPSI), or to the Participant’s estate if
                no such beneficiary has been
                designated.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Retirement/Termination
      of a Participant

    

    
      	
              9.

            	
              If
                a person retires from an Eligible Office or is terminated therefrom
                during
                the Bonus Determination Period and does not seek and/or enter employment
                with any business that competes with NPSI or any of NPSI’s subsidiaries,
                the retiring or terminated person shall be considered a Participant
                for
                the portion of the Bonus Determination Period prior to retirement
                or
                termination and his/her bonus shall be determined in accordance with
                Paragraphs 3, 5 and 7 of this Bonus Plan. However, under no circumstances
                shall a retiring or terminated holder of an Eligible Office, who
                seeks
                and/or enters employment with a business that competes with NPSI
                or any of
                NPSI’s subsidiaries, be considered a Participant for any portion of the
                Bonus Determination Period, either prior to or after retirement or
                termination.

            

    

     

    
      Change
        of Control

       

    

    
      	
              10.

            	
              A
                Change of Control shall be deemed to have occurred in the event of:
                (i)
                the acquisition, directly or indirectly, by any person or entity
                (other
                than NPSI), or persons or entities acting in concert, whether by
                purchase,
                merger, consolidation or otherwise, of voting power over that number
                of
                shares of the capital stock of NPSI or North Pittsburgh Telephone
                Company
                (“NPTC”) which, when combined with the existing voting power of such
                persons or entities, aggregates voting power over that number of
                shares of
                the capital stock of NPSI or NPTC as has the right to cast fifty
                percent
                (50%) or more of the votes which all shareholders of NPSI or NPTC
                would be
                entitled to cast in the election of directors of NPSI or NPTC,
                respectively, under normal circumstances (that is, for example, without
                giving effect to any such voting rights of preferred shares existing
                by
                reason of a default in the payment of preferred dividends or to any
                elimination of voting rights of “control shares” (as defined in 15 Pa.C.S.
                § 2562) pursuant to Subchapter G of Chapter 25 of the Pennsylvania
                Business Corporation Law of 1988, as amended, or any successor or
                comparable statute) or (ii) the sale, lease, exchange or other transfer
                (in one transaction or a series of related transactions) of all,
                or
                substantially all, of the assets of NPSI or NPTC to a transferee
                other
                than NPSI or NPTC, an entity of which a controlling interest is owned
                by
                NPSI or NPTC, or an entity which, prior to the Change of Control,
                owns,
                directly or indirectly, a controlling interest in NPSI or
                NPTC.

            

    

    

    Administration
      of the Plan

    

    
      	
              11.

            	
              The
                Plan shall be administered by the Compensation Committee of the Board
                of
                Directors of NPSI. All decisions and determinations by such Committee
                shall be final and binding upon all parties. Such Committee shall
                have the
                authority to interpret the Plan, to establish and revise rules and
                regulations relating to the Plan, and to make any other determinations
                that it believes necessary or advisable for administration of the
                Plan.

            

    

    

    Non-Exclusivity

    

    
      	
              12.

            	
              Nothing
                contained in the Plan shall be deemed to preclude NPSI from establishing
                other compensation or bonus plans, or limit other plans which may
                be in
                effect from time to time, or limit the authority of NPSI to exercise
                its
                corporate rights and powers with respect to compensation and incentives
                to
                the fullest extent permitted by
                law.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NPSI
      EXECUTIVE OFFICER BONUS PLAN

    

    Criteria
      Components

     

     

     

    Section
      I - Criteria Summary

     

     

    A.      Complete
      installation of  the NPTC Fiber-to-the-Node Project within all NPTC
      Exchanges.

      
See
      Section
      II.A.

    

    B.      Increase
      Multi Meg Broadband Products by specified levels.  See Section
      II.B.

    

    C.      Complete
      Phase 1 of the IT System Migration to a new Data Center Provider.  See
      II.C.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2007
      NPSI EXECUTIVE OFFICER BONUS PLAN

    

    Criteria
      Components

     

     

     

    Section
      II - Bonus Computation

    

    

    
      	
              A.

            	
              Criterion
                1– 40% of the Maximum Total Benefit Amount as defined in Paragraph
                4(a) of the recommended 2007 Executive Bonus Plan Criterion 1 shall
                be
                based upon the complete installation of the NPTC Fiber-to-the-Node
                Project
                within all NPTC Exchanges.

            

    

    

    
      	
              Complete
                Installation of NPTC

              Fiber-to-the-Node
                Project

            	 	
               

              Bonus

            
	 	
              =

            	
              $138,028

            

    

    

    

    
      	
              B.

            	
              Criterion
                2– 40% of the Maximum Total Benefit Amount as defined in Paragraph
                4(a) of the recommended 2007 Executive Bonus Plan.  Criterion 2
                shall be based upon Multi Meg Broadband Products as
                follows:

            

    

    

    
      	
              Projected
                Increase 2007

              Multi
                Meg Broadband

              Products

            	 	
               

              Bonus

            
	
              900
                – 1,100

            	
              =

            	
                $34,507

            
	
              1,101
                – 1,301

            	
              =

            	
                $69,014

            
	
              1,302
                – 1,502

            	
              =

            	
              $103,521

            
	
              1,503

            	
              =

            	
              $138,028

            

    

    

    The
      above
      bonus amounts are not additive.  A bonus under this criterion will
      only be awarded for the highest level attained.

    

    
      	
              C.

            	
              Criterion
                3 – 20% of the Maximum Total Benefit Amount as defined in Paragraph
                4(a) of the recommended 2007 Executive Bonus Plan.  Criterion 3
                shall be based upon the completion of Phase 1 of the migration of
                the
                North Pittsburgh Telephone Company IT System to a new
                provider.  Phase 1 will consist of evaluating and choosing a new
                data center provider, completion of a short-term contract with the
                provider, finalizing new contracts with all software providers and
                development of a schedule to complete the total
                project.

            

    

    

    
      	
              Complete
                Phase 1 of IT System Migration

            	 	
               

              Bonus

            
	 	
              =

            	
              $69,014

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2007
      NPSI EXECUTIVE OFFICER BONUS PLAN

    

    Criteria
      Components

    

    

    

    

    
      	
              SALARY
                FOR SEVEN (7) EXECUTIVE OFFICERS YR 2007
                TOTAL    $1,725,348

            
	
              EXECUTIVE
                BONUS POOL = 20%       $345,070
                (TOTAL)

            
	
              DIVIDED
                BY SEVEN (7) OFFICERS
                =          $49,296

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              CRITERIA

            	
              POOL

            	 	
              CRITERIA

            	 	 	
              PER

            
	
              NO

            	
              ALLOCATION

            	
              AMOUNT

            	
               DESCRIPTION

            	
              ALLOCATION
                SPLIT

            	
               AMOUNT

            	
               OFFICER

            
	 	 	 	 	 	 	 
	
              1

            	
              40%

            	
              $138,028

            	
              FIBER-TO-THE-NODE

              COMPLETION

            	
              100%
                OF 40%

            	
              $138,028

            	
              $19,718

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              2

            	
                           40%

               

               

            	
              $138,028

            	
               PROJECTED
                INCREASE 2007

              MULTI
                MEG BROADBAND

              PRODUCTS

            	 	 	 
	 	 	 	
              900-1100

              1101-1301

            	
              25%
                OF 40%

              50%
                of 40%

            	
               $34,507

              $69,014

            	
               $4,930

              $9,859

            
	 	 	 	
              1302-1502

            	
              75%
                OF 40%

            	
              $103,521

            	
               $14,789

            
	 	 	 	
                1503

            	
                     100%
                OF 40%

            	
               $138,028

            	
                          $19,718

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              3

            	
              20%

            	
              $69,014

            	
              COMPLETION
                OF PHASE 1

              IT
                SYSTEM MIGRATION

            	 	 	 
	 	 	 	 	
              100%
                OF 20%

            	
              $69,014

            	
              $9,859

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