Document:

Exhibit 10.5 Jefferey S. Frichner Employment Agreement

     

    Exhibit
      10.5

    EMPLOYMENT
      AGREEMENT

     

    Jeffrey
      S. Frichner
      ("Employee") hereby accepts the offer of Left
      Behind Games Inc.
      ("LBG"
      or the "Company") for employment as President and Secretary beginning March
      1,
      2003. Employee
      and the Company are sometimes individually referred to herein as a "party"
      and
      collectively as the "parties."

     

    1.  Employment
      and Employment Term.
      The
      Company shall employ Employee, and Employee shall serve the Company, for a
      term
      beginning on the date of this Agreement and ending on February 28, 2004, unless
      sooner terminated pursuant to the provisions of this Agreement (the "Initial
      Term"). Thereafter, this Agreement renews automatically for successive one
      (1)
      year terms unless either party provides ninety (90) days prior written notice
      to
      the other of its intent not to renew this Agreement (the Initial Term together
      with any renewal hereof, is the "Term"). 

     

    2.  Prior
      Communication.
      Employee
      and LBG further understand and agree that nothing in any prior correspondence
      or
      communication between them is intended to be and nothing therein should be
      construed to be a limitation of LBG's right to terminate, transfer, demote,
      suspend and administer discipline at any time for any reason. Employee and
      LBG
      understand and agree nothing in any prior correspondence or communication is
      intended to, and nothing in any prior correspondence or
      communication should
      be
      construed to, create an implied or express contract of employment contrary
      to
      this Agreement.

     

    3.  Position
      and Responsibilities.
      During
      employment, Employee shall have such responsibilities, duties and authority
      as
      LBG through its Board of Directors may from time to time assign to Employee,
      and
      that are normal and customary duties of a President and Secretary engaged in
      the
      business of the Company. Employee's initial title shall be President and
      Secretary.

     

    4.  Compensation. 

     

            a. As
      compensation for the services to be rendered by Employee to LBG pursuant to
      this
      Agreement, Employee shall be paid the following compensation and shall receive
      the following benefits:

     

    i.
       Base
      Salary.
      Employee's base salary will be at a rate of $95,000 per year, payable no less
      frequently than monthly.

     

    ii.
       Stock
      Options, Savings, and Retirement Plans.  Employee
      shall be entitled to participate in all stock option, savings, and retirement
      plans, policies, and programs made available by the Company to other peer
      employees of the Company.

     

    iii.
       Automobile.
      Company
      shall pay Employee, in addition to his base salary, a monthly car allowance
      up
      to a maximum of $1,000 per month, plus his actual maintenance, repair and
      automobile insurance costs, payable on the first day of each month during the
      term hereof.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    iv.
       Employee
      Benefits.
      Employee
      shall be entitled to participate during the period of his employment under
      this
      Agreement
      in
      standard employee benefits or any other written compensation arrangement
      approved by the Board of Directors of LBG.

     

            b. Notwithstanding
      any other provision in this Agreement to the contrary, the compensation
      specified in Section 4(a) above will accrue on the date the Company closes
      an
      initial private offering of the Company's stock. 

     

    5.  Termination.
      In the
      event of termination or resignation, the following terms and conditions will
      apply:

     

            a.  Without
      Cause, Severance Benefit.
      In the
      event Employee is terminated by LBG without cause, Employee shall be entitled
      to
      receive a severance benefit, including standard employee benefits available
      to
      other employees of LBG, in an amount equal to six (6) months' compensation.
      One
      half of any severance benefit owing hereunder shall be paid within ten (10)
      days
      of termination and the balance shall be paid on a bi-weekly basis over the
      severance period. As part of Employee's severance benefits, he shall be allowed
      (i) to keep all personal business equipment used by him in his office or work
      space during his employment such as computers, electronic equipment, software
      and (ii) to be provided, upon his request, copies of such non-confidential
      information created or prepared by him during his employment.

     

            b.  With
      Cause, No Severance Benefit.
      LBG may
      terminate Employee with cause, which shall be limited to the occurrence of
      one
      or more of the following events: (i) the Employee's commission of any fraud
      against LBG; (ii) Employee's intentional appropriation for his or her
      personal use or benefit the funds of the Company not authorized by the Board
      of
      Directors; (iii) Employee's conviction of any crime involving moral turpitude;
      (iv) Employee's conviction of a violation of any state or federal law which
      could result in a material adverse impact upon the business of LBG; (v) the
      Employee engaging in any other professional employment or consulting or directly
      or indirectly participating in or assisting any for profit business which is
      a
      current or potential customer, broker or competitor of LBG without prior written
      approval from the Board of Directors of LBG, or (vi) when Employee has been
      disabled and is unable to perform the essential functions of the position for
      any reason notwithstanding reasonable accommodation and has received from LBG
      compensation in an amount equivalent to his or her severance benefit payment.
      No
      severance benefit shall be due to Employee if Employee is terminated for
      cause.

     

            c.  Resignation
      or Retirement, No Severance Pay.
      No
      severance pay shall be due to Employee if Employee resigns or retires from
      employment.

     

    6.  Termination
      Obligations.

     

            a.  Return
      of LBG Company Property.
      Employee shall take all reasonable steps to make sure all LBG Company Property
      (as defined in Attachment #1) is returned to LBG within two (2) business days
      following termination of employment and request by LBG for return of LBG Company
      Property.

     

            b.  Employee
      Cooperation.
      Following any termination of employment, Employee shall cooperate fully with
      LBG
      in all matters relating to completing pending work on behalf of LBG and the
      orderly transfer of work to other employees of LBG. Employee shall also
      cooperate in the defense of any action brought by any third party against LBG
      that relates in any way to Employee's acts or omissions while employed by
      LBG.

     

            c.  Survival
      of Obligations.
      Employee's obligations under this Section shall survive the termination of
      employment and the expiration or termination of this Agreement.

     

    7.  Confidential
      Information and Inventions.
      Employee
      and LBG hereby agree to the Confidential Information and Assignment Agreement,
      Covenant of Exclusivity and Covenant Not to Compete attached hereto and made
      a
      part hereof as Attachment #1. Employee's obligations under this Section shall
      survive the termination of employment and the expiration or termination of
      this
      Agreement.

     

    8.  Competitive
      Activity.
      Employee
      covenants, warrants and represents that during the period of his or her
      employment with LBG, Employee shall not engage anywhere directly or indirectly
      in (as a principal, shareholder, partner, director, officer, agent, employee,
      consultant or otherwise) or be financially interested in any for profit business
      which is involved in business activities which are the same as, similar to,
      or
      in competition with business activities carried on by LBG or any business that
      is a current or potential customer, broker or competitor of LBG without prior
      written approval from the Board of Directors of LBG.

     

    9.  Employee
      Conduct. 

     

            a. Employee
      covenants, warrants and represents that during the period of his or her
      employment with LBG, Employee shall not accept or encourage the offering of
      gifts or gratuities from any customer, broker or other person doing business
      with LBG. Employee represents and understands that acceptance or encouragement
      of any gift or gratuity may create a perceived financial obligation and/or
      conflict of interest for LBG and shall not be permitted as a means to influence
      business decisions, transactions or service. In this situation, as in all other
      areas of employment, Employee is expected to conduct himself or herself using
      the highest ethical standard.

     

            b. Employee
      has performed services for non-profit organizations for many years and intends
      to continue providing services for non-profit organizations during his
      employment with the Company. Provided his services do not materially prevent
      his
      diligent performance of his responsibilities and obligations to the Company,
      Employee shall be allowed to provide services for non-profit
      organizations.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    10.  Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties. It supersedes
      any
      and all other agreements, either oral or in writing, between the parties hereto
      with respect to Employee's employment by LBG. Each party to this Agreement
      acknowledges that no representations, inducements, promises or agreements,
      oral
      or otherwise, have been made by any party, or anyone acting on behalf of any
      party, which are not embodied herein and acknowledges that no other agreement,
      statement or promise not contained in this Agreement shall be valid or binding.
      This Agreement may not be modified or amended by oral agreement or course of
      conduct, but only by an agreement in writing signed by the Board of Directors
      of
      LBG and Employee. To the extent the practices, policies or procedures of LBG,
      now or in the future, are inconsistent with the terms of this Agreement, the
      provisions of this Agreement shall control.

     

    11.  Governing
      Law.
      This
      Employment Agreement shall be construed and enforced in accordance with the
      laws
      of the State of California.

     

    12.  Provisions
      Separable.
      Should
      any part or provision of this Employment Agreement be held unenforceable or
      in
      conflict with the law of any jurisdiction, the validity of the remaining parts
      shall not be affected by such holding.

     

    13.  Attorney's
      Fees.
      Should
      any party institute any action, arbitration or proceeding to enforce, interpret
      or apply any provision of this Employment Agreement, the parties agree that
      the
      prevailing party shall be entitled to reimbursement by the non-prevailing party
      of all recoverable costs and expenses, including, but not limited to, reasonable
      attorney fees.

     

    14.  Interpretation.
      This
      Agreement shall be construed as a whole, according to its fair meaning, and
      not
      in favor of or against any party. By way of example and not in limitation,
      this
      Agreement shall not be construed in favor of the party receiving a benefit
      nor
      against the party responsible for any particular language in this
      Agreement.

     

    15.  Mediation.
      The
      Parties shall use reasonable good faith efforts to directly resolve any dispute
      arising this Agreement. Either Party may request non-binding mediation with
      the
      assistance of a neutral mediator from a recognized mediation service. The
      Parties shall participate in the mediation in good faith and shall devote
      reasonable time and energy to the mediation so as to promptly resolve the
      dispute or conclude with the mediator that
      they
      cannot resolve the dispute within 30 days of notice from the dispute. The
      persons attending the mediation shall have the authority to accept a settlement.
      LBG shall bear the cost of mediation.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              EMPLOYEE

               

              /s/
                Jeffrey S. Frichner

              ________________________

              Jeffrey
                S. Frichner

               

               

              LEFT
                BEHIND GAMES INC.

              a
                Delaware corporation

               

              /s/
                Troy A. Lyndon

              By:_____________________________________

              Troy
                A. Lyndon, CEO

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

        
        

      

    

    ATTACHMENT
      #1

     

    CONFIDENTIAL
      INFORMATION AND INVENTION ASSIGNMENT AGREEMENT, COVENANT OF EXCLUSIVITY AND
      COVENANT NOT TO COMPETE

     

    This
      Confidential Information And Invention Assignment Agreement ("Agreement") is
      made between Left
      Behind Games Inc.,
      a
      Delaware corporation ("Company") and the undersigned Employee.

     

    In
      consideration of and as a condition of my prospective and continued employment
      relationship with the Company (which for purposes of this Agreement shall be
      deemed to include any subsidiaries or affiliates of the Company where
      "affiliate" shall mean any person or entity that directly or indirectly
      controls, is controlled by, or is under common control with the Company), the
      receipt of confidential information while associated with the Company, and
      other
      good and valuable consideration, I agree to the following, and I agree the
      following shall be in addition to the terms and conditions of any Confidential
      Information and Invention Assignment Agreement executed by employees of the
      Company generally, and which I may execute in addition hereto:

     

    1.  Inventions.

     

            a.  Disclosure.
      I will
      disclose promptly in writing to the appropriate officer or other representative
      of the Company, any idea, invention, work of authorship, design, formula,
      pattern, compilation, program, device, method, technique, process, improvement,
      development or discovery, whether or not patentable or copyrightable or entitled
      to legal protection as a trade secret, trademark service mark, trade name or
      otherwise ("Invention"), that I may conceive, make, develop, reduce to practice
      or work on, in whole or in part, solely or jointly with others ("Invent"),
      during the period of my employment with the Company.

     

    i.  The
      disclosure required by this Section 1a. applies to each and every Invention
      that
      I Invent (1) whether during my regular hours of employment or during my time
      away from work (2) whether or not the Invention was made at the suggestion
      of
      the Company, and (3) whether or not the Invention was reduced to or embodied
      in
      writing, electronic media or tangible form. 

     

    ii.  The
      disclosure required by this Section 1 a. also applies to any Invention which
      may
      relate at the time of conception or reduction to practice of the Invention
      to
      the Company's business or actual or demonstrably anticipated research or
      development of the Company, and to any Invention which results from any work
      performed by me for the Company. 

     

    iii.  The
      disclosure required by this Section 1 a. shall be received in confidence by
      the
      Company within the meaning of and to the extent required by California Labor
      Code §2871, the provisions of which are set forth on Exhibit "A" hereto.

     

    iv.  To
      facilitate the complete and accurate disclosures described above, I shall
      maintain complete written records of all Inventions and all work, study and
      investigation done by me during my employment, which records shall be the
      Company's property. 

     

    v.  I
      agree
      that during my employment I shall have a continuing obligation to supplement
      the
      disclosure required by this Section 1 a. on a monthly basis if I Invent an
      Invention during the period of employment. In order to facilitate the same,
      the
      Company and I shall periodically review every six months the written records
      of
      all Inventions as outlined in this Paragraph 1 a. to determine whether any
      particular invention is in fact related to Company business.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

            b.  Assignment.
      I
      hereby assign to the Company without royalty or any other further consideration
      my entire right, title and interest in and to each and every Invention I am
      required to disclose under Section 1a. other than an Invention that I have
      or
      shall have developed entirely on my own time without using the Company's
      Confidential Information or trade secrets. I acknowledge that the Company has
      notified me that the assignment provided for in this Section l b. does not
      apply
      to any Invention to which the assignment may not lawfully apply under the
      provisions of Section §2870 of the California Labor Code, a copy of which is
      attached as Exhibit "A" hereto. I shall bear the full burden of proving to
      the
      Company that an invention qualifies fully under Section §2870.

     

            c.  Additional
      Assistance and Documents.
      I will
      assist the Company in obtaining, maintaining and enforcing patents, copyrights,
      trade secrets, trademarks, service marks, trade names and other proprietary
      rights in connection with any Invention I have assigned to the Company under
      Section l b., and I further agree that my obligations under this Section l
      c.
      shall continue beyond the termination of my employment with the Company. Among
      other things, for the foregoing purposes I will (i) testify at the request
      of
      the Company in any interference, litigation or other legal proceeding that
      may
      arise during or after my employment, and (ii) execute, verify, acknowledge
      and
      deliver any proper document and, if, because of my mental or physical incapacity
      or for any other reason whatsoever, the Company is unable to obtain my signature
      to apply for or to pursue any application for any United States or foreign
      patent or copyright covering Inventions assigned to the Company by me, I hereby
      irrevocably designate and appoint each of the Company and its duly authorized
      officers and agents as my agent and attorney in fact to act for me and in my
      behalf and stead to execute and file any such applications and to do all other
      lawfully permitted acts to further the prosecution and issuance of any United
      States or foreign patent or copyright thereon with the same legal force and
      effect as if executed by me. I shall be entitled to reimbursement of any
      out-of-pocket expenses incurred by me in rendering such assistance and, if
      I am
      required to render such assistance after the termination of my employment,
      the
      Company shall pay me a reasonable rate of compensation for time spent by me
      in
      rendering such assistance to the extent permitted by law (provided, I understand
      that no compensation shall be paid for my time in connection with preparing
      for
      or rendering any testimony or statement under oath in any judicial proceeding,
      arbitration or similar proceeding).

     

            d.  Prior
      Contracts and Inventions; Rights of Third Parties.
      I
      represent to the Company that, except as set forth on Exhibit "B" hereto, there
      are no other contracts to assign Inventions now in existence between me and
      any
      other person or entity (and if no Exhibit "B" is attached hereto or there is
      no
      such contract(s) described thereon, then it means that by signing this
      Agreement, I represent to the Company that there is no such other contract(s)).
      In addition, I represent to the Company that I have no other employments or
      undertaking which do or would restrict or impair my performance of this
      Agreement. I further represent to the Company that Exhibit "C" hereto sets
      forth
      a brief description of all Inventions made or conceived by me prior to my
      employment with the Company which I desire to be excluded from this Agreement
      (and if no Exhibit "C" is attached hereto or there is no such description set
      forth thereon, then it means that by signing this Agreement I represent to
      the
      Company that there is no such Invention made or conceived by me prior to my
      employment with the Company). In connection with my employment with the Company,
      I promise not to use or disclose to the Company any patent, copyright,
      confidential trade secret or other proprietary information of any previous
      employer or other person that I am not lawfully entitled so to use or disclose.
      If in the course of my employment with the Company I incorporate into an
      Invention or any product process or service of the Company any Invention made
      or
      conceived by me prior to my employment with the Company, and do so without
      first
      executing a separate assignment agreement, I hereby grant to the Company a
      royalty-free, irrevocable, worldwide nonexclusive license to make, have made,
      use and sell that Invention without restriction as to the extent of my ownership
      or interest.

     

    2.  Confidential
      Information.

     

            a.  Company
      Confidential Information.
      I will
      not use or disclose Confidential Information, whether before, during or after
      the period of my employment except to perform my duties as an employee of the
      Company based on my reasonable judgment as an Officer of the Company, or in
      accordance with instruction or authorization of the Company, without prior
      written consent of the Company or pursuant to process or requirements of law
      after I have disclosed such process or requirements to the Company so as to
      afford it the opportunity to seek appropriate relief therefrom. "Confidential
      Information" means any Invention of any person in which the Company has a
      written agreement and in addition means any financial, client, customer,
      supplier, marketing, distribution and other information of a confidential or
      private nature connected with the business of the Company or any person with
      whom it has a written agreement, provided by the Company to me or to which
      I
      have access during or in the course of any employment. Confidential Information
      is to be broadly defined, and includes all information that has or could have
      commercial value or other utility in the business in which the Company is
      engaged or contemplates engaging, and all information of which the unauthorized
      disclosure could be detrimental to the interests of the Company, whether or
      not
      such information is identified as Confidential Information by the Company.
      Confidential Information does not include any business or personal relationship
      developed by Employee during the course of his employment with whom the Company
      does not have a written agreement.

     

            b.  Third
      Party Information.
      I
      acknowledge that during my employment with the Company I may have access to
      patent, copyright, confidential, trade secret or other proprietary information
      of third parties subject to restrictions on the use or disclosure thereof by
      the
      Company. During the period of my employment and thereafter I will not use or
      disclose any such information other than consistent with the restrictions and
      my
      duties as an employee of the Company.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.  Property
      of the Company.
      All
      equipment and all tangible and intangible information relating to LBG, its
      employees and its customers or vendors furnished to, obtained by or prepared
      by
      Employee or any other person during the course of or incident to employment
      by
      LBG are and shall remain the sole property of LBG ("LBG Company Property").
      LBG
      Company Property shall include, but not be limited to, computer equipment,
      books, manuals, records, reports, notes, correspondence, contracts, customer
      lists, business cards, advertising, sales, financial, personnel, operations,
      and
      manufacturing materials and information, data processing reports, computer
      programs, software, customer information and records, business records, price
      lists or information, and samples, and in each case shall include all copies
      thereof in any medium, including paper, electronic and magnetic media and all
      other forms of information storage. Upon termination of employment and request
      by LBG, all tangible LBG Company Property shall be returned promptly to
      LBG.

     

    4.  No
      Solicitation of Company Employees.
      While
      employed by the Company and for a period of one year after termination of my
      employment with the Company, I agree not to induce or otherwise encourage any
      employee of the Company to terminate their employment with the
      Company.

     

    5.  Covenant
      of Exclusivity and Not to Compete.
      During
      the period of my employment with the Company, I will not engage in any other
      professional employment or consulting or directly or indirectly participate
      in
      or assist any for profit business which is a current or potential supplier,
      customer or competitor of the Company without prior written approval from the
      Board of Directors of the Company.

     

    6.  General.

     

            a.  Assignments,
      Successors and Assignees.
      All
      representations, warranties, covenants and agreements of the parties shall
      bind
      their respective heirs, executors, personal representatives, successors and
      assignees ("transferees") and shall inure to the benefit of their respective
      permitted transferees. Neither party shall have the right to assign any or
      all
      of its rights or to delegate any or all of its obligations hereunder without
      the
      prior written consent of the other party.

     

            b.  Number
      and Gender, Headings.
      Each
      number and gender shall be deemed to include each other number and gender as
      the
      context may require. The headings and captions contained in this Agreement
      shall
      not constitute a part thereof and shall not be used in its construction or
      interpretation.

     

            c.  Severability.
      If any
      provision of this Agreement is found by any court or arbitral tribunal of
      competent jurisdiction to be invalid or unenforceable, the invalidity of such
      provision shall not affect the other provisions of this Agreement and all
      provisions not affected by the invalidity shall remain in full force and
      effect.

     

            d.  Amendment
      and Modification.
      This
      Agreement may only be amended or modified in writing, by the
      parties.

     

            e.  Government
      Law.
      The
      laws of California shall govern the construction, interpretation and performance
      of this Agreement and all transactions under it.

     

            f.  No
      Effect on Other Terms or Conditions of Employment.
      I
      acknowledge that this Agreement does not affect any term or condition of my
      employment except as expressly provided in this Agreement, and that this
      Agreement does not give rise to any right or entitlement on my part to
      employment or continued employment with the Company. I further acknowledge
      that
      this Agreement does not affect in any way the right of the Company to terminate
      my employment.

     

            g.  Consent.
      My
      signature below signifies that I have read, understand and agree to this
      Agreement.

     

    EMPLOYEE

     

    /s/
      Jeffrey S. Frichner

    

    ____________________________________

    Jeffrey
      S. Frichner

    

    ACCEPTED:

    

    LEFT
      BEHIND GAMES INC.

    a
      Delaware corporation

    

    /s/
      Troy
      A. Lyndon

    By:_____________________________________

    Troy
      A.
      Lyndon, CEO

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      "A" TO ATTACHMENT #1

     

    California
      Labor Code

     

    §
      2870. Invention on Own Time-Exemption from Agreement.

     

    (a)  Any
      provision in an employment agreement which provides that an employee shall
      assign, or offer to assign, any of his or her rights in an invention to his
      or
      her employer shall not apply to an invention that the employee developed
      entirely on his or her own time without using the employer's equipment,
      supplies, facilities or trade secret information except for those inventions
      that either:

     

    (1)  Relate
      at
      the time of conception or reduction to practice of the invention to the
      employer's business, or actual or demonstrably anticipated research or
      development of the employer.

     

    (2)  Result
      from any work performed by the employee for the employer.

     

    (b)  To
      the
      extent a provision in an employment agreement purports to require an employee
      to
      assign an invention otherwise excluded from being required to be assigned under
      subdivision (a), the provision is against the public policy of this state and
      is
      unenforceable.

     

    §
      2871. Restrictions on Employer for Condition of Employment.

     

    No
      employer shall require a provision made void or unenforceable by Section 2870
      as
      a condition of employment or continued employment. Nothing in this article
      shall
      be construed to forbid or restrict the right of an employer to provide in
      contracts of employment for disclosure, provided that any such disclosures
      be
      received in confidence, of all of the employee's inventions made solely or
      jointly with others during the period of his or her employment, a review process
      by the employer to determine such issues as may arise, and for full title to
      certain patents and inventions to be in the United States, as required by
      contracts between the employer and the United States or any of its
      agencies.

     

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

        
        

      

    

    
 

    
 

    EXHIBIT
      "B" TO ATTACHMENT #1

    

    Except
      as
      set forth below, Employee represents to the Company that there are no other
      contracts to assign Inventions now in existence between Employee and any other
      person or entity (see Section l d. of the Agreement):

    

    

    

    

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

     

    
 

    

    EXHIBIT
      "C" TO ATTACHMENT #1

    

    Set
      forth
      below is a brief description of all Inventions made or conceived by Employee
      prior to Employee's employment with the Company, which Employee desires to
      be
      excluded from this Agreement (see Section l d. of the Agreement):

     

    
 

    

    10Exhibit 10.8 Thomas H. Axelson Employment Agreement

     

    Exhibit
      10.8

    EMPLOYMENT
      AGREEMENT

     

    Thomas
      H. Axelson
      ("Employee") hereby accepts the offer of Left
      Behind Games Inc.
      ("LBG"
      or the "Company") for employment as Chief Financial Officer beginning March
      1,
      2003. Employee
      and the Company are sometimes individually referred to herein as a "party"
      and
      collectively as the "parties."

     

    1.  Employment
      and Employment Term.
      The
      Company shall employ Employee, and Employee shall serve the Company, for a
      term
      beginning on the date of this Agreement and ending on February 28, 2004, unless
      sooner terminated pursuant to the provisions of this Agreement (the "Initial
      Term"). Thereafter, this Agreement renews automatically for successive one
      (1)
      year terms unless either party provides ninety (90) days prior written notice
      to
      the other of its intent not to renew this Agreement (the Initial Term together
      with any renewal hereof, is the "Term").

     

    2.  Prior
      Communication.
      Employee
      and LBG further understand and agree that nothing in any prior correspondence
      or
      communication between them is intended to be and nothing therein should be
      construed to be a limitation of LBG's right to terminate, transfer, demote,
      suspend and administer discipline at any time for any reason. Employee and
      LBG
      understand and agree nothing in any prior correspondence or communication is
      intended to, and nothing in any prior correspondence or
      communication should
      be
      construed to, create an implied or express contract of employment contrary
      to
      this Agreement.

     

    3.  Position
      and Responsibilities.
      During
      employment, Employee shall have such responsibilities, duties and authority
      as
      LBG through its Board of Directors may from time to time assign to Employee,
      and
      that are normal and customary duties of a Chief Financial Officer engaged in
      the
      business of the Company. Employee's initial title shall be Chief Financial
      Officer.

     

    4.  Compensation. 

     

            a. As
      compensation for the services to be rendered by Employee to LBG pursuant to
      this
      Agreement, Employee shall be paid the following compensation and shall receive
      the following benefits:

     

    i.
       Base
      Salary.
      Employee's base salary will be at a rate of $95,000 per year, payable no less
      frequently than monthly.

     

    ii.
       Stock
      Options, Savings, and Retirement Plans.  Employee
      shall be entitled to participate in all stock option, savings, and retirement
      plans, policies, and programs made available by the Company to other peer
      employees of the Company.

     

    iii.
       Automobile.
      Company
      shall pay Employee, in addition to his base salary, a monthly car allowance
      up
      to a maximum of $1,000 per month, plus his actual maintenance, repair and
      automobile insurance costs, payable on the first day of each month during the
      term hereof.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    iv.
       Employee
      Benefits.
      Employee
      shall be entitled to participate during the period of his employment under
      this
      Agreement
      in
      standard employee benefits or any other written compensation arrangement
      approved by the Board of Directors of LBG.

     

            b. Notwithstanding
      any other provision in this Agreement to the contrary, the compensation
      specified in Section 4(a) above will accrue on the date the Company closes
      an
      initial private offering of the Company's stock. 

     

    5.  Termination.
      In the
      event of termination or resignation, the following terms and conditions will
      apply:

     

            a.  Without
      Cause, Severance Benefit.
      In the
      event Employee is terminated by LBG without cause, Employee shall be entitled
      to
      receive a severance benefit, including standard employee benefits available
      to
      other employees of LBG, in an amount equal to six (6) months' compensation.
      One
      half of any severance benefit owing hereunder shall be paid within ten (10)
      days
      of termination and the balance shall be paid on a bi-weekly basis over the
      severance period. As part of Employee's severance benefits, he shall be allowed
      (i) to keep all personal business equipment used by him in his office or work
      space during his employment such as computers, electronic equipment, software
      and (ii) to be provided, upon his request, copies of such non-confidential
      information created or prepared by him during his employment.

     

            b.  With
      Cause, No Severance Benefit.
      LBG may
      terminate Employee with cause, which shall be limited to the occurrence of
      one
      or more of the following events: (i) the Employee's commission of any fraud
      against LBG; (ii) Employee's intentional appropriation for his or her
      personal use or benefit the funds of the Company not authorized by the Board
      of
      Directors; (iii) Employee's conviction of any crime involving moral turpitude;
      (iv) Employee's conviction of a violation of any state or federal law which
      could result in a material adverse impact upon the business of LBG; (v) the
      Employee engaging in any other professional employment or consulting or directly
      or indirectly participating in or assisting any for profit business which is
      a
      current or potential customer, broker or competitor of LBG without prior written
      approval from the Board of Directors of LBG, or (vi) when Employee has been
      disabled and is unable to perform the essential functions of the position for
      any reason notwithstanding reasonable accommodation and has received from LBG
      compensation in an amount equivalent to his or her severance benefit payment.
      No
      severance benefit shall be due to Employee if Employee is terminated for
      cause.

     

            c.  Resignation
      or Retirement, No Severance Pay.
      No
      severance pay shall be due to Employee if Employee resigns or retires from
      employment.

          

          6.  Termination
      Obligations.

     

            a.  Return
      of LBG Company Property.
      Employee shall take all reasonable steps to make sure all LBG Company Property
      (as defined in Attachment #1) is returned to LBG within two (2) business days
      following termination of employment and request by LBG for return of LBG Company
      Property.

     

            b.  Employee
      Cooperation.
      Following any termination of employment, Employee shall cooperate fully with
      LBG
      in all matters relating to completing pending work on behalf of LBG and the
      orderly transfer of work to other employees of LBG. Employee shall also
      cooperate in the defense of any action brought by any third party against LBG
      that relates in any way to Employee's acts or omissions while employed by
      LBG.

     

            c.  Survival
      of Obligations.
      Employee's obligations under this Section shall survive the termination of
      employment and the expiration or termination of this Agreement.

     

    7.  Confidential
      Information and Inventions.
      Employee
      and LBG hereby agree to the Confidential Information and Assignment Agreement,
      Covenant of Exclusivity and Covenant Not to Compete attached hereto and made
      a
      part hereof as Attachment #1. Employee's obligations under this Section shall
      survive the termination of employment and the expiration or termination of
      this
      Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8.  Competitive
      Activity.
      Employee
      covenants, warrants and represents that during the period of his or her
      employment with LBG, Employee shall not engage anywhere directly or indirectly
      in (as a principal, shareholder, partner, director, officer, agent, employee,
      consultant or otherwise) or be financially interested in any for profit business
      which is involved in business activities which are the same as, similar to,
      or
      in competition with business activities carried on by LBG or any business that
      is a current or potential customer, broker or competitor of LBG without prior
      written approval from the Board of Directors of LBG.

     

    9.  Employee
      Conduct. 

     

            a. Employee
      covenants, warrants and represents that during the period of his or her
      employment with LBG, Employee shall not accept or encourage the offering of
      gifts or gratuities from any customer, broker or other person doing business
      with LBG. Employee represents and understands that acceptance or encouragement
      of any gift or gratuity may create a perceived financial obligation and/or
      conflict of interest for LBG and shall not be permitted as a means to influence
      business decisions, transactions or service. In this situation, as in all other
      areas of employment, Employee is expected to conduct himself or herself using
      the highest ethical standard.

     

            b. Employee
      has performed services for non-profit organizations for many years and intends
      to continue providing services for non-profit organizations during his
      employment with the Company. Provided his services do not materially prevent
      his
      diligent performance of his responsibilities and obligations to the Company,
      Employee shall be allowed to provide services for non-profit
      organizations.

     

    10.  Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties. It supersedes
      any
      and all other agreements, either oral or in writing, between the parties hereto
      with respect to Employee's employment by LBG. Each party to this Agreement
      acknowledges that no representations, inducements, promises or agreements,
      oral
      or otherwise, have been made by any party, or anyone acting on behalf of any
      party, which are not embodied herein and acknowledges that no other agreement,
      statement or promise not contained in this Agreement shall be valid or binding.
      This Agreement may not be modified or amended by oral agreement or course of
      conduct, but only by an agreement in writing signed by the Board of Directors
      of
      LBG and Employee. To the extent the practices, policies or procedures of LBG,
      now or in the future, are inconsistent with the terms of this Agreement, the
      provisions of this Agreement shall control.

     

    11.  Governing
      Law.
      This
      Employment Agreement shall be construed and enforced in accordance with the
      laws
      of the State of California.

     

    12.  Provisions
      Separable.
      Should
      any part or provision of this Employment Agreement be held unenforceable or
      in
      conflict with the law of any jurisdiction, the validity of the remaining parts
      shall not be affected by such holding.

     

    13.  Attorney's
      Fees.
      Should
      any party institute any action, arbitration or proceeding to enforce, interpret
      or apply any provision of this Employment Agreement, the parties agree that
      the
      prevailing party shall be entitled to reimbursement by the non-prevailing party
      of all recoverable costs and expenses, including, but not limited to, reasonable
      attorney fees.

     

    14.  Interpretation.
      This
      Agreement shall be construed as a whole, according to its fair meaning, and
      not
      in favor of or against any party. By way of example and not in limitation,
      this
      Agreement shall not be construed in favor of the party receiving a benefit
      nor
      against the party responsible for any particular language in this
      Agreement.

     

    15.  Mediation.
      The
      Parties shall use reasonable good faith efforts to directly resolve any dispute
      arising this Agreement. Either Party may request non-binding mediation with
      the
      assistance of a neutral mediator from a recognized mediation service. The
      Parties shall participate in the mediation in good faith and shall devote
      reasonable time and energy to the mediation so as to promptly resolve the
      dispute or conclude with the mediator that
      they
      cannot resolve the dispute. The persons attending the mediation shall have
      the
      authority to accept a settlement. LBG shall bear the cost of
      mediation.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              EMPLOYEE

               

              /s/
                Thomas H. Axelson

              ________________________

              Thomas
                H. Axelson

               

               

              LEFT
                BEHIND GAMES INC.

              a
                Delaware corporation

               

              /s/
                Jeffrey S. Frichner

              By:_____________________________________

              Jeffrey
                S. Frichner, President

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

        
        

      

    

    ATTACHMENT
      #1

     

    CONFIDENTIAL
      INFORMATION AND INVENTION ASSIGNMENT AGREEMENT, COVENANT OF EXCLUSIVITY AND
      COVENANT NOT TO COMPETE

     

    This
      Confidential Information And Invention Assignment Agreement ("Agreement") is
      made between Left
      Behind Games Inc.,
      a
      Delaware corporation ("Company") and the undersigned Employee.

     

    In
      consideration of and as a condition of my prospective and continued employment
      relationship with the Company (which for purposes of this Agreement shall be
      deemed to include any subsidiaries or affiliates of the Company where
      "affiliate" shall mean any person or entity that directly or indirectly
      controls, is controlled by, or is under common control with the Company), the
      receipt of confidential information while associated with the Company, and
      other
      good and valuable consideration, I agree to the following, and I agree the
      following shall be in addition to the terms and conditions of any Confidential
      Information and Invention Assignment Agreement executed by employees of the
      Company generally, and which I may execute in addition hereto:

     

        
      1.    Inventions.

     

            a.  Disclosure.
      I will
      disclose promptly in writing to the appropriate officer or other representative
      of the Company, any idea, invention, work of authorship, design, formula,
      pattern, compilation, program, device, method, technique, process, improvement,
      development or discovery, whether or not patentable or copyrightable or entitled
      to legal protection as a trade secret, trademark service mark, trade name or
      otherwise ("Invention"), that I may conceive, make, develop, reduce to practice
      or work on, in whole or in part, solely or jointly with others ("Invent"),
      during the period of my employment with the Company.

     

    i.  The
      disclosure required by this Section 1a. applies to each and every Invention
      that
      I Invent (1) whether during my regular hours of employment or during my time
      away from work (2) whether or not the Invention was made at the suggestion
      of
      the Company, and (3) whether or not the Invention was reduced to or embodied
      in
      writing, electronic media or tangible form. 

     

    ii.  The
      disclosure required by this Section 1 a. also applies to any Invention which
      may
      relate at the time of conception or reduction to practice of the Invention
      to
      the Company's business or actual or demonstrably anticipated research or
      development of the Company, and to any Invention which results from any work
      performed by me for the Company. 

     

    iii.  The
      disclosure required by this Section 1 a. shall be received in confidence by
      the
      Company within the meaning of and to the extent required by California Labor
      Code §2871, the provisions of which are set forth on Exhibit "A" hereto.

     

    iv.  To
      facilitate the complete and accurate disclosures described above, I shall
      maintain complete written records of all Inventions and all work, study and
      investigation done by me during my employment, which records shall be the
      Company's property. 

     

    v.  I
      agree
      that during my employment I shall have a continuing obligation to supplement
      the
      disclosure required by this Section 1 a. on a monthly basis if I Invent an
      Invention during the period of employment. In order to facilitate the same,
      the
      Company and I shall periodically review every six months the written records
      of
      all Inventions as outlined in this Paragraph 1 a. to determine whether any
      particular invention is in fact related to Company business.

     

            b.  Assignment.
      I
      hereby assign to the Company without royalty or any other further consideration
      my entire right, title and interest in and to each and every Invention I am
      required to disclose under Section 1a. other than an Invention that I have
      or
      shall have developed entirely on my own time without using the Company's
      Confidential Information or trade secrets. I acknowledge that the Company has
      notified me that the assignment provided for in this Section l b. does not
      apply
      to any Invention to which the assignment may not lawfully apply under the
      provisions of Section §2870 of the California Labor Code, a copy of which is
      attached as Exhibit "A" hereto. I shall bear the full burden of proving to
      the
      Company that an invention qualifies fully under Section §2870.

     

            c.  Additional
      Assistance and Documents.
      I will
      assist the Company in obtaining, maintaining and enforcing patents, copyrights,
      trade secrets, trademarks, service marks, trade names and other proprietary
      rights in connection with any Invention I have assigned to the Company under
      Section l b., and I further agree that my obligations under this Section l
      c.
      shall continue beyond the termination of my employment with the Company. Among
      other things, for the foregoing purposes I will (i) testify at the request
      of
      the Company in any interference, litigation or other legal proceeding that
      may
      arise during or after my employment, and (ii) execute, verify, acknowledge
      and
      deliver any proper document and, if, because of my mental or physical incapacity
      or for any other reason whatsoever, the Company is unable to obtain my signature
      to apply for or to pursue any application for any United States or foreign
      patent or copyright covering Inventions assigned to the Company by me, I hereby
      irrevocably designate and appoint each of the Company and its duly authorized
      officers and agents as my agent and attorney in fact to act for me and in my
      behalf and stead to execute and file any such applications and to do all other
      lawfully permitted acts to further the prosecution and issuance of any United
      States or foreign patent or copyright thereon with the same legal force and
      effect as if executed by me. I shall be entitled to reimbursement of any
      out-of-pocket expenses incurred by me in rendering such assistance and, if
      I am
      required to render such assistance after the termination of my employment,
      the
      Company shall pay me a reasonable rate of compensation for time spent by me
      in
      rendering such assistance to the extent permitted by law (provided, I understand
      that no compensation shall be paid for my time in connection with preparing
      for
      or rendering any testimony or statement under oath in any judicial proceeding,
      arbitration or similar proceeding).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

            d.  Prior
      Contracts and Inventions; Rights of Third Parties.
      I
      represent to the Company that, except as set forth on Exhibit "B" hereto, there
      are no other contracts to assign Inventions now in existence between me and
      any
      other person or entity (and if no Exhibit "B" is attached hereto or there is
      no
      such contract(s) described thereon, then it means that by signing this
      Agreement, I represent to the Company that there is no such other contract(s)).
      In addition, I represent to the Company that I have no other employments or
      undertaking which do or would restrict or impair my performance of this
      Agreement. I further represent to the Company that Exhibit "C" hereto sets
      forth
      a brief description of all Inventions made or conceived by me prior to my
      employment with the Company which I desire to be excluded from this Agreement
      (and if no Exhibit "C" is attached hereto or there is no such description set
      forth thereon, then it means that by signing this Agreement I represent to
      the
      Company that there is no such Invention made or conceived by me prior to my
      employment with the Company). In connection with my employment with the Company,
      I promise not to use or disclose to the Company any patent, copyright,
      confidential trade secret or other proprietary information of any previous
      employer or other person that I am not lawfully entitled so to use or disclose.
      If in the course of my employment with the Company I incorporate into an
      Invention or any product process or service of the Company any Invention made
      or
      conceived by me prior to my employment with the Company, and do so without
      first
      executing a separate assignment agreement, I hereby grant to the Company a
      royalty-free, irrevocable, worldwide nonexclusive license to make, have made,
      use and sell that Invention without restriction as to the extent of my ownership
      or interest.

     

        
2.   Confidential
      Information.

     

            a.  Company
      Confidential Information.
      I will
      not use or disclose Confidential Information, whether before, during or after
      the period of my employment except to perform my duties as an employee of the
      Company based on my reasonable judgment as an Officer of the Company, or in
      accordance with instruction or authorization of the Company, without prior
      written consent of the Company or pursuant to process or requirements of law
      after I have disclosed such process or requirements to the Company so as to
      afford it the opportunity to seek appropriate relief therefrom. "Confidential
      Information" means any Invention of any person in which the Company has a
      written agreement and in addition means any financial, client, customer,
      supplier, marketing, distribution and other information of a confidential or
      private nature connected with the business of the Company or any person with
      whom it has a written agreement, provided by the Company to me or to which
      I
      have access during or in the course of any employment. Confidential Information
      is to be broadly defined, and includes all information that has or could have
      commercial value or other utility in the business in which the Company is
      engaged or contemplates engaging, and all information of which the unauthorized
      disclosure could be detrimental to the interests of the Company, whether or
      not
      such information is identified as Confidential Information by the Company.
      Confidential Information does not include any business or personal relationship
      developed by Employee during the course of his employment with whom the Company
      does not have a written agreement.

     

            b.  Third
      Party Information.
      I
      acknowledge that during my employment with the Company I may have access to
      patent, copyright, confidential, trade secret or other proprietary information
      of third parties subject to restrictions on the use or disclosure thereof by
      the
      Company. During the period of my employment and thereafter I will not use or
      disclose any such information other than consistent with the restrictions and
      my
      duties as an employee of the Company.

     

    3.  Property
      of the Company.
      All
      equipment and all tangible and intangible information relating to LBG, its
      employees and its customers or vendors furnished to, obtained by or prepared
      by
      Employee or any other person during the course of or incident to employment
      by
      LBG are and shall remain the sole property of LBG ("LBG Company Property").
      LBG
      Company Property shall include, but not be limited to, computer equipment,
      books, manuals, records, reports, notes, correspondence, contracts, customer
      lists, business cards, advertising, sales, financial, personnel, operations,
      and
      manufacturing materials and information, data processing reports, computer
      programs, software, customer information and records, business records, price
      lists or information, and samples, and in each case shall include all copies
      thereof in any medium, including paper, electronic and magnetic media and all
      other forms of information storage. Upon termination of employment and request
      by LBG, all tangible LBG Company Property shall be returned promptly to
      LBG.

     

    4.  No
      Solicitation of Company Employees.
      While
      employed by the Company and for a period of one year after termination of my
      employment with the Company, I agree not to induce or otherwise encourage any
      employee of the Company to terminate their employment with the
      Company.

     

    5.  Covenant
      of Exclusivity and Not to Compete.
      During
      the period of my employment with the Company, I will not engage in any other
      professional employment or consulting or directly or indirectly participate
      in
      or assist any for profit business which is a current or potential supplier,
      customer or competitor of the Company without prior written approval from the
      Board of Directors of the Company.

     

    6.  General.

     

            a.  Assignments,
      Successors and Assignees.
      All
      representations, warranties, covenants and agreements of the parties shall
      bind
      their respective heirs, executors, personal representatives, successors and
      assignees ("transferees") and shall inure to the benefit of their respective
      permitted transferees. Neither party shall have the right to assign any or
      all
      of its rights or to delegate any or all of its obligations hereunder without
      the
      prior written consent of the other party.

     

            b.  Number
      and Gender, Headings.
      Each
      number and gender shall be deemed to include each other number and gender as
      the
      context may require. The headings and captions contained in this Agreement
      shall
      not constitute a part thereof and shall not be used in its construction or
      interpretation.

     

    c.  Severability.
      If any
      provision of this Agreement is found by any court or arbitral tribunal of
      competent jurisdiction to be invalid or unenforceable, the invalidity of such
      provision shall not affect the other provisions of this Agreement and all
      provisions not affected by the invalidity shall remain in full force and
      effect.

     

    d.  Amendment
      and Modification.
      This
      Agreement may only be amended or modified in writing, by the
      parties.

     

    e.  Government
      Law.
      The
      laws of California shall govern the construction, interpretation and performance
      of this Agreement and all transactions under it.

     

    f.  No
      Effect on Other Terms or Conditions of Employment.
      I
      acknowledge that this Agreement does not affect any term or condition of my
      employment except as expressly provided in this Agreement, and that this
      Agreement does not give rise to any right or entitlement on my part to
      employment or continued employment with the Company. I further acknowledge
      that
      this Agreement does not affect in any way the right of the Company to terminate
      my employment.

     

    g.  Consent.
      My
      signature below signifies that I have read, understand and agree to this
      Agreement.

     

    EMPLOYEE

    

    /s/
      Thomas H. Axelson

    ____________________________________

    Thomas
      H.
      Axelson

    

    ACCEPTED:

    

    LEFT
      BEHIND GAMES INC.

    a
      Delaware corporation

    

    /s/
      Jeffrey S. Frichner 

    By:_____________________________________

    Jeffrey
      S. Frichner, President

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      "A" TO ATTACHMENT #1

     

    California
      Labor Code

     

    §
      2870. Invention on Own Time-Exemption from Agreement.

     

    (a)  Any
      provision in an employment agreement which provides that an employee shall
      assign, or offer to assign, any of his or her rights in an invention to his
      or
      her employer shall not apply to an invention that the employee developed
      entirely on his or her own time without using the employer's equipment,
      supplies, facilities or trade secret information except for those inventions
      that either:

     

    (1)  Relate
      at
      the time of conception or reduction to practice of the invention to the
      employer's business, or actual or demonstrably anticipated research or
      development of the employer.

     

    (2)  Result
      from any work performed by the employee for the employer.

     

    (b)  To
      the
      extent a provision in an employment agreement purports to require an employee
      to
      assign an invention otherwise excluded from being required to be assigned under
      subdivision (a), the provision is against the public policy of this state and
      is
      unenforceable.

     

    §
      2871. Restrictions on Employer for Condition of Employment.

     

    No
      employer shall require a provision made void or unenforceable by Section 2870
      as
      a condition of employment or continued employment. Nothing in this article
      shall
      be construed to forbid or restrict the right of an employer to provide in
      contracts of employment for disclosure, provided that any such disclosures
      be
      received in confidence, of all of the employee's inventions made solely or
      jointly with others during the period of his or her employment, a review process
      by the employer to determine such issues as may arise, and for full title to
      certain patents and inventions to be in the United States, as required by
      contracts between the employer and the United States or any of its
      agencies.

     

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      "B" TO ATTACHMENT #1

    

    Except
      as
      set forth below, Employee represents to the Company that there are no other
      contracts to assign Inventions now in existence between Employee and any other
      person or entity (see Section l d. of the Agreement):

    
 

    

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    
 

    EXHIBIT
      "C" TO ATTACHMENT #1

    

    Set
      forth
      below is a brief description of all Inventions made or conceived by Employee
      prior to Employee's employment with the Company, which Employee desires to
      be
      excluded from this Agreement (see Section l d. of the Agreement):

    

     

     

     

     

    9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]