Summary of XFONE INC. - Yahoo! Finance

Change in Directors or Principal Officers, Financial Statements and Exhibits

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On July 1, 2009, NTS Communications, Inc. ("NTS"), a wholly owned subsidiary of Xfone, Inc. (the "Company"), entered into an employment agreement (the "Employment Agreement") with Niv Krikov, the Company's Treasurer, Chief Financial Officer and Principal Accounting Officer, pursuant to which Mr. Krikov will serve as Executive Vice President of NTS. Mr. Krikov's employment with NTS is expected to begin on or about August 15, 2009, for a term that will end on July 31, 2010. His term of employment may be renewed by mutual agreement for additional one-year terms. In connection with this event, Mr. Krikov will be relocating from the headquarters of Xfone 018 in Israel to the Company's principal executive offices and NTS' headquarters in Lubbock, Texas. Mr. Krikov's relocation and the terms of the Employment Agreement were approved by the Company's Board of Directors (the "Company's Board"), upon the recommendation of the Compensation Committee of the Company's Board (the "Compensation Committee"), and were also approved by NTS' Board of Directors.

Under the terms of the Employment Agreement, Mr. Krikov will be paid an annual salary of $90,800, a per diem allowance at a monthly rate of $4,100, and will be eligible to participate in and receive benefits under the applicable NTS benefit plans for similarly situated employees. Additionally, NTS has agreed to bear expenses for housing and a motor vehicle for Mr. Krikov and his family, including all expenses associated therewith, as well as travel expenses and medical and life insurance coverage.

As previously disclosed, in accordance with a resolution of the Company's Board dated May 9, 2007, Mr. Krikov is entitled to be granted options to purchase a certain amount of the Company's shares of common stock, as to be recommended by the Chief Executive Officer of the Company and approved by the Company's Board. Such options, which have not yet been granted, will be granted under and subject to the Company's 2007 Stock Incentive Plan. In connection with its discussion of Mr. Krikov's relocation the Company's Board re-affirmed Mr. Krikov's abovementioned right to receive options.

The foregoing summary of the Employment Agreement is qualified in its entirety by reference to the definitive document, a copy of which is attached as Exhibit 10.132 to this Current Report on Form 8-K.