Document:

Exhibit
10.1

SEPARATION AGREEMENT

This Separation Agreement (this “Agreement”) is made
and entered into by and between Michael H. Owens, M.D. (“Dr. Owens”) and iVow,
Inc. (the “Company”) as of September 5, 2006, and inures to the benefit of each
of the Company’s current, former and future parents, subsidiaries, related
entities, employee benefit plans and each of their respective fiduciaries,
predecessors, successors, officers, directors, stockholders, agents, attorneys,
employees and assigns.

RECITALS

A.            Dr.
Owens has been serving as an employee, officer and director of the Company.

B.            Dr.
Owens wishes to resign from the Company and end his service as an employee,
officer and director of the Company pursuant to the terms and conditions of
this Agreement.

AGREEMENT

THEREFORE, in consideration of the mutual promises and
covenants contained herein, it is hereby agreed by and between Dr. Owens, on
the one hand, and the Company, on the other, as follows:

1.   Resignation.  Dr. Owens hereby confirms his resignation as
an employee of the Company, his resignation from his positions as Chief
Executive Officer and President of the Company, and his resignation from his
position as a director on the Company’s Board of Directors, each resignation
effective as of 10:00 a.m. (Pacific time) on September 5, 2006 (the “Resignation
Date”).

2.   Wages, Vacation Time and Expenses Paid,
Severance and Bonus to be Paid.

2.1   Wages,
Vacation Time and Expenses.  Dr.
Owens hereby agrees that the Company has paid him all of his wages and all of
his accrued and unused vacation time through the Resignation Date, subject to
federal and state withholding and other applicable taxes, and has been
reimbursed by the Company for all reimbursable business expenses through the
Resignation Date.

2.2   Severance.  Contingent upon this Agreement and the
Release attached hereto as Exhibit A becoming effective as provided in
Section 20 of this Agreement, Dr. Owens shall also be entitled to receive
severance in an amount equal to six (6) months of his base salary (less payroll
deductions and all required withholdings) that Dr. Owens was receiving
immediately prior to the Resignation Date, payable in six (6) equal monthly
payments beginning on the Effective Date (the “Severance Period”).

2.3   2005
Bonus.  Upon Dr. Owens’ execution of
this Agreement, the Company’s Board of Directors has agreed to issue Dr. Owens
20,000 shares of restricted Common Stock pursuant to the Company’s 1997 Stock
Option/Stock Issuance Plan in connection with his services as the Company’s
Chief Executive Officer and President during fiscal year 2005 (the 

 

“Bonus”) at the Company’s Board meeting scheduled for September
5, 2006.  The Company shall be liable to
pay all federal and state withholding taxes on the Bonus, including a gross-up
amount to cover the federal and state withholding taxes owed by Dr. Owens as a
result of the Company’s payment of the federal and state withholding taxes on
the Bonus.  Dr. Owens agrees that upon
payment of the Bonus (and the applicable federal and state withholding taxes)
by the Company, he is not entitled to any other bonus or other compensation
payments from the Company through the Resignation Date.

2.4   Beneficiaries.  The Company’s obligation to make any payments
to Dr. Owens pursuant to Sections 2.1 and 2.2 of this Agreement shall survive
Dr. Owens’ death, and shall inure to the benefit of Dr. Owens’ beneficiaries,
either by will or intestacy, as applicable.

3.   Equity Holdings.

3.1   Stock.  Dr. Owens hereby acknowledges that he holds
60,162 shares of Common Stock, including the 20,000 shares issued pursuant to
the Bonus.

3.2   Options.  In addition, the Company has granted Dr.
Owens the following options (the “Stock Options”) to purchase the indicated
shares of Common Stock at the indicated exercise price:

	
  Option Grant

  Date

  	
   

  	
  Number of

  Shares

  	
   

  	
  Per Share

  Exercise Price

  	
   

  	
  Number of

  Vested Shares

  as of the

  Resignation Date

  	
   

  
	
  09/08/03

  	
   

  	
  6,000

  	
   

  	
  $

  	
  18.40

  	
   

  	
  5,810

  	
   

  
	
  12/14/04

  	
   

  	
  5,750

  	
   

  	
  $

  	
  13.80

  	
   

  	
  5,565

  	
   

  
	
  01/04/05

  	
   

  	
  9,708

  	
   

  	
  $

  	
  10.30

  	
   

  	
  5,380

  	
   

  
	
  01/04/05

  	
   

  	
  2,441

  	
   

  	
  $

  	
  10.30

  	
   

  	
  1,340

  	
   

  
	
  03/23/05

  	
   

  	
  10,000

  	
   

  	
  $

  	
  9.20

  	
   

  	
  3,536

  	
   

  
	
  06/02/06

  	
   

  	
  210,389

  	
   

  	
  $

  	
  2.61

  	
   

  	
  21,195

  	
   

  
	
  Total:

  	
   

  	
  244,288

  	
   

  	
   

  	
   

  	
  42,826

  	
   

  

 

Dr. Owens understands and agrees that as of the
Resignation Date he has vested in an aggregate of 42,826 shares of Common Stock
under his Stock Options as set forth in the table above.

 -2-
 

 

3.3   Warrants.  Dr. Owens holds no warrants (the “Warrants”)
to purchase shares of the Company’s capital stock.

3.4   Acknowledgement.  Dr. Owens acknowledges and agrees that the
Common Stock listed in Section 3.1 and the Stock Options to acquire shares of
Common Stock listed in Section 3.2 sets forth Dr. Owens’s, including Dr. Owens’s
spouse, executors, administrators, assigns and successors, entire interest in
or right to acquire the capital stock of the Company (or rights or other securities
exercisable or convertible into the capital stock of the Company), and that neither he
nor his spouse, executors, administrators, assigns and successors has any right
to acquire or purchase any additional shares of capital stock or rights or
other securities exercisable or convertible for capital stock.

4.   Health Benefits.  Provided that Dr. Owens makes a timely
election to continue coverage under the Company’s group health plan pursuant to
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) in
connection with a Covered Event, the Company will pay Dr. Owens’s COBRA
premiums for a maximum period of six (6) months following the effective date of
such Covered Event (the “COBRA Continuation Period”).  In addition, if Dr. Owens’s spouse and/or
dependents were enrolled in the Company’s group health plan on the date of the
Covered Event, the Company will pay the COBRA premiums for Dr. Owens’s eligible
dependents during the COBRA Continuation Period, but only to the same extent
that such dependents’ premiums under such plan were paid by the Company prior
to the date of such Covered Event.  No
provision of this Agreement will affect the continuation coverage rules under
COBRA, except that the Company’s payment of any applicable premiums during the
COBRA Continuation Period will be credited as payment by Dr. Owens for purposes
of the Dr. Owens’s payment required under COBRA.  At the conclusion of the COBRA Continuation
Period, Dr. Owens will be responsible for the entire payment of premiums required
under COBRA for the remaining duration of eligibility for COBRA, if any.  Nothing in this Section 4 shall restrict the
ability of the Company or its successor from changing the provider and/or some
or all of the terms of such health insurance plan, provided that all similarly
situated participants are treated the same and provided, further, that Dr.
Owens and his eligible dependents receive approximately the same benefits they
were eligible to receive prior to the change in provider and/or some or all of
the terms of such health insurance plan.

5.   Contractual Obligations

5.1   Existing
Agreements.  Dr. Owens acknowledges
that he is a party to and bound by the terms and conditions of that certain
Employment Disclosure by and between the Company and him, dated February 15,
2005 (the “Employment Disclosure”), attached hereto as Exhibit B.

5.2   Proprietary
Information and Inventions Agreement. 
In exchange for the general release given and the other promises and
covenants made by the Company under this Agreement, Dr. Owens agrees to execute
and deliver to the Company the Proprietary Information and Inventions Agreement
attached hereto as Exhibit C (the “Proprietary Agreement”), which shall
be effective as of Dr. Owens’ first day of employment at the Company.

 -3-
 

 

5.3   Remedies.  Dr. Owens understands and agrees that the
Employment Disclosure and the Proprietary Agreement and his duties thereunder,
survive the termination of his employment with the Company.  Dr. Owens acknowledges that a remedy at law
for any breach by him of the provisions of the Employment Disclosure and/or
Proprietary Agreement would be inadequate, and he therefore agrees that the
Company shall be entitled to injunctive relief in case of any such breach or
any affirmative action taken by Dr. Owens to breach the provisions of the
Employment Disclosure and/or Proprietary Agreement.

5.4   No
Competition During Severance Period. 
During the Severance Period, Dr. Owens agrees that he will not, directly
or indirectly through a third party (i.e., person, corporation, firm,
partnership or other entity), whether as an officer, director, stockholder,
partner, proprietor, associate, representative, consultant, or in any capacity
whatsoever engage in, become financially interested in, be employed by, provide
services to, or have any business connection with, any other person,
corporation, firm, partnership or other entity whatsoever that competes with
the Company in the United States in any line of business engaged in by the
Company as of the date of this Agreement.  Dr. Owens agrees that if he is contemplating
an affiliation of any sort with a third party (i.e., person, corporation, firm,
partnership or other entity) that competes with the Company in the United
States in any line of business engaged in by the Company as of the date of this
Agreement, he shall notify the Company in writing so that a determination may
be made by the Company as to whether it intends to enforce its rights provided
in the preceding sentence.  Any such
determination will be made by the Board in good faith.  However, notwithstanding anything above to
the contrary, Dr. Owens may own, as a passive investor, securities of any
publicly traded competitor corporation, so long as his direct holdings in any
one such corporation shall not in the aggregate constitute more than 1% of the
voting stock of such corporation.

Further, notwithstanding anything above to the
contrary, iVOW acknowledges that Dr. Owens is a board certified internal
medical physician and that nothing in this or any other section of this
Agreement is to be construed as to prevent him from the clinical practice of
medicine. iVOW also acknowledges that Dr. Owens is a Certified Physician
Executive and prior to joining iVOW earned his living as an independent
consultant and that nothing in this or any other section of this Agreement is
to be construed as to prevent him from utilizing his consulting expertise in
any line of business other than that which the Company is engaged in as of the
date of this Agreement.

5.5   Savings
Clause.  If any restriction set forth
above within this Section is held to be unreasonable, then Dr. Owens agrees,
and hereby submits, to the reduction and limitation of such prohibition to such
area or period as shall be deemed reasonable.

5.6   Injunctive
Relief for iVow.  Dr. Owens expressly
agrees that the covenants set forth in this Section 5 are reasonable and
necessary to protect the Company and its legitimate business interests, and to
prevent the unauthorized dissemination of confidential information to
competitors of the Company.  Dr. Owens
also agrees that the Company will be irreparably harmed and that damages alone
cannot adequately compensate the Company if there is a violation of the
provisions of this Section 5 by Dr. Owens, and that injunctive relief against
Dr. Owens is essential for the protection of the Company.  Therefore, in the event of any such breach,
it is agreed that, in addition to any other remedies available, the Company
shall be 

 -4-
 

 

entitled as a matter of right to injunctive relief in any court of
competent jurisdiction, plus attorneys’ fees actually incurred for the securing
of such relief.

5.7   Injunctive
Relief for Dr. Owens.  iVOW expressly
agrees that the agreements and acknowledgements of the Company set forth in the
second paragraph in Section 5.3 are reasonable and necessary to protect Dr.
Owens’ legitimate business interests. 
iVOW agrees that should it seek to prevent Dr. Owens from clinically
practicing medicine or utilizing his expertise as a Certified Physician
Executive as outlined in the second paragraph in Section 5.3, Dr. Owens will be
irreparably harmed and that damages alone cannot adequately compensate Dr.
Owens if the Company violates the second paragraph in Section Section 5.3, and
that injunctive relief against iVOW is essential for the protection of Dr.
Owens.  Therefore, in the event of any
such breach, it is agreed that, in addition to any other remedies available,
Dr. Owens shall be entitled as a matter of right to injunctive relief in any
court of competent jurisdiction, plus attorneys’ fees actually incurred for the
securing of such relief.

6.   Non-Solicitation.  For one (1) year immediately following the
Effective Date of this Agreement (the “Non-Solicitation Period”), Dr. Owens
agrees not to interfere with the business of the Company by soliciting,
inducing, or otherwise causing (i) any employee or consultant of the Company to
terminate his or her employment or engagement with the Company, or to reduce
his or her time commitment or scope of services provided to the Company, or
(ii) any customer or client of the Company to purchase or obtain the products
or services of any firm or business organization which competes in the United
States in any line of business engaged in by the Company as of the date of this
Agreement.  The foregoing restrictions
shall apply to Dr. Owens regardless of whether he is acting directly or
indirectly, alone or in concert with others.

Notwithstanding the
foregoing, Dr. Owens and the Company are exploring a potential business
transaction in which Dr. Owens would purchase certain assets related to the
Company’s bariatric disease management consulting business.  In connection with this potential
transaction, Dr. Owens has requested permission to contact certain of the
Company’s employees regarding their interest to leave the Company if he (or a
third party formed by Dr. Owens) successfully purchases these business assets
from the Company.  The Company agrees
that Dr. Owens shall be entitled to contact the Company’s employees for such
purposes on the following conditions: (a) Dr. Owens notifies the Company’s
Chairman of the Board in writing (including email) prior to each such
communication and identifies the employee or employees he desires to contact,
(b) Dr. Owens does not contact the employee until he receives permission for
such communication in writing (including email) from the Chairman of the Board
and (c) Dr. Owens shall cease all communications with the Company’s employees
(in accordance with the terms set forth in the first paragraph of this Section
6) during the Non-Solicitation Period upon notice by the Company that it is
ending discussions with Dr. Owens regarding a potential transaction between him
and the Company.

7.   Outside Activities.  Except as prohibited and/or limited by the
provisions of Sections 5 and 6 above, it is expressly understood and agreed
that during the Severance Period, Dr. Owens may accept other employment.  Dr. Owens may also engage in civic and
not-for-profit activities, except as limited by the provisions of Sections 5 and
6.

 -5-
 

 

8.   Nondisparagement.  Dr. Owens agrees that he will not make any
voluntary statements, written or verbal, or cause or encourage others to make
any such statements that defame, disparage or in any way criticize the
reputation, business practices or conduct of the Company or the Company
Releasees (as defined in the Release). 
iVOW agrees that it nor any of the Company Releasees (as defined in the
Release) will make any voluntary statements, written or verbal, or cause or
encourage others to make any such statements that defame, disparage or in any
way criticize the reputation, performance, business practices or conduct of Dr.
Owens as an employee or Director of the Company.

9.   Promise to Refrain from Suit or
Administrative Action. 
Dr. Owens promises and agrees that he will never sue the Company or any
of the other Company Releasees, or otherwise institute or participate in any
legal or administrative proceedings against the Company or any of the other
Company Releasees, with respect to any claim covered by the Release.

10.          Integrated Agreement.  The parties acknowledge and agree that no
promises or representations were made to them concerning the subject matter of
this Agreement which do not appear written herein and that this Agreement
contains the entire agreement of the parties on the subject matter
thereof.  The parties further acknowledge
and agree that parol evidence shall not be required to interpret the intent of
the parties.  The parties further agree
and acknowledge that the Retention Agreement, dated April 19, 2006, is
terminated upon the parties execution of this Agreement.

11.          Voluntary Execution.  The parties hereby acknowledge that they have
read and understand this Agreement and that they sign this Agreement
voluntarily and without coercion.

12.          Waiver, Amendment and Modification
of Agreement.  The
parties agree that no waiver, amendment or modification of any of the terms of
this Agreement shall be effective unless in writing and signed by all parties
affected by the waiver, amendment or modification.  No waiver of any term, condition or default
of any term of this Agreement shall be construed as a waiver of any other term,
condition or default.

13.          Representation by Counsel.  The parties acknowledge that they have the
right to have been represented in by counsel of their own choosing.  Dr. Owens further acknowledges and agrees
that Heller Ehrman LLP (“Heller Ehrman”) is legal counsel for the Company
solely, and that he is not relying on the Company or Heller Ehrman for legal
advice regarding this Agreement.  The
parties further acknowledge that they have entered into this Agreement
voluntarily, without coercion, and based upon their own judgment and not in
reliance upon any representations or promises made by the other party or
parties, other than those contained within this Agreement.  The parties further agree that if any of the
facts or matters upon which they now rely in making this Agreement hereafter
prove to be otherwise, this Agreement will nonetheless remain in full force and
effect.

14.          California Law.  The parties agree that this Agreement and its
terms shall be construed under California law.

 -6-
 

 

15.          Drafting.  The parties agree that this Agreement shall
be construed without regard to the drafter of the same and shall be construed
as though each party to this Agreement participated equally in the preparation
and drafting of this Agreement.

16.          Counterparts.  This Agreement may be signed in counterparts
and said counterparts shall be treated as though signed as one document.

17.          Return of Company Property.  Dr. Owens has returned to the Company all of
his keys to the Company’s premises and his Company laptop.  It is understood and agreed that Dr. Owens
shall return all other property in his possession which belongs to the Company
immediately upon demand therefor.  Dr.
Owens specifically promises and agrees that he shall not retain copies of any
company documents or files following the termination of this Agreement.

18.          Attorneys’ Fees.  Each party shall be
responsible for its own legal fees incurred in connection with the entering
into of this Agreement.

19.          Period to Consider Terms of
Agreement.  Dr.
Owens acknowledges that this Agreement was first presented to him on September
5, 2006, that the terms of this Agreement have been negotiated by both parties,
and that he is entitled to have 21 days’ time in which to consider the
Agreement.  Dr. Owens acknowledges that
he understands that he has the right to obtain the advice and counsel from the
legal representative of his choice, and that he executes this Agreement having
had sufficient time within which to consider its terms.  Dr. Owens represents that if he executes this
Agreement before 21 days have elapsed, he does so voluntarily, and that he
voluntarily waives any remaining consideration period.

20.          Revocation of Agreement.  Dr. Owens understands that after executing
this Agreement, he has the right to revoke it within seven (7) days after his
execution of it.  Dr. Owens understands
that this Agreement will not become effective and enforceable unless the seven
day revocation period passes and Dr. Owens does not revoke the Agreement in
writing.  Dr. Owens understands that this
Agreement may not be revoked after the seven day revocation period has passed.  Dr. Owens understands that any revocation of
this Agreement must be made in writing and delivered to the Company (to the
attention of John Lyon) within the seven day period, and that if he does so
revoke the Agreement, he shall not be entitled to receive any of the benefits
described herein.

21.          Effective Date.  This Agreement shall become effective on the
eighth (8th) day after execution by Dr. Owens, so long as Dr. Owens has not
revoked it within the time and in the manner specified in Section 20 of this
Agreement.

[THE REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 -7-
 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the dates below:

	
  Dated: September 5, 2006

  	
  /s/ Michael H. Owens

  	
   

  
	
   

  	
  Michael H. Owens, M.D.

  	
   

  
	
   

  	
  iVOW, INC.

  	
   

  
	
  Dated: September
  5, 2006

  	
  By:

  	
  /s/ John R. Lyon

  	
   

  
	
   

  	
   

  	
  John R. Lyon

  	
   

  
	
   

  	
   

  	
  Chairman of the Board

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO
SEPARATION AGREEMENT]

 -8-

Exhibit A

RELEASE

Certain
capitalized terms used in this Release are defined in the Separation Agreement
(the “Agreement”) which each party hereto has executed and of which this
Release is a part.

Except as
otherwise set forth in this Release, each party hereto hereby releases, acquits
and forever discharges the other party, such other party’s parents and
subsidiaries, and their officers, directors, agents, servants, employees,
shareholders, successors, assigns and affiliates (the “Company Releasees” or
the “Owens Releasees”, as applicable), of and from any and all claims,
liabilities, demands, causes of action, costs, expenses, attorneys fees,
damages, indemnities and obligations of every kind and nature, in law, equity,
or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed (other than any claim for indemnification one party hereto may have
against the other party hereto), arising out of or in any way related to
agreements, events, acts or conduct at any time prior to the date of execution
of this Release, including, but not limited to: 
all such claims and demands directly or indirectly arising out of or in
any way connected with Dr. Owens’s employment with the Company or the
termination of that employment, including but not limited to, claims of
intentional and negligent infliction of emotional distress, any and all tort
claims for personal injury, claims or demands related to salary, bonuses,
commissions, stock, stock options, or any other ownership interests in the
Company, vacation pay, fringe benefits, expense reimbursements, severance pay,
or any other form of disputed compensation; claims pursuant to any federal,
state or local law or cause of action including, but not limited to, the
federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in
Employment Art of 1967, as amended (“ADEA”); the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with
Disabilities Act of 1990; tort law; contract law; statutory law; common law;
wrongful discharge; discrimination; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing; provided,
however, that nothing in this paragraph shall be construed in any way to
release the Company from its obligation to indemnify Dr. Owens pursuant to the
Company’s indemnification obligation pursuant to agreement or applicable law;
and provided further, however, that nothing herein shall release the Company
from claims by Dr. Owens arising after the date of this Release based solely on
Dr. Owens’s rights as a stockholder of the Company.

In giving this
release, which includes claims that may be unknown at present, each party
hereto acknowledges that it has read and understand Section 1542 of the California
Civil Code which reads as follows: “A general release does not extend to claims
which the creditor does not know or suspect to exist in his favor at the time
of executing the release, which if known by him must have materially affected
his settlement with the debtor.” Each party hereto expressly waives and
relinquishes all rights and benefits under Section 1542 of the California Civil
Code and any law of any jurisdiction of similar effect with respect to the
release of any unknown or unsuspected claims against the other party.

 

Dr. Owens
acknowledges that he is knowingly and voluntarily waiving and releasing any
rights he may have under ADEA.  Dr. Owens
also acknowledges that the consideration given under the Agreement for the
waiver and release in the preceding paragraph hereof is in addition to anything
of value to which he was already entitled. Dr. Owens further acknowledges that
he has been advised by this writing, as required by the ADEA, that: (A) the
waiver and release herein do not apply to any rights or claims that may arise
on or after the date of execution of this Release; (B) he has the right to
consult with an attorney prior to executing this Release; (C) he has twenty-one
(21) days to consider this Release (although he may choose to voluntarily
execute this Release earlier); (D) he has seven (7) days following the
execution of this Release by the parties to revoke the Release; and (E) this
Release shall not be effective until the date upon which the revocation period
has expired, which shall be the eighth day after this Release is executed by
Dr. Owens.

	
  Dated: September 5, 2006

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael H. Owens, M.D.

  	
   

  
	
   

  	
   

  	
  iVOW, INC.

  	
   

  
	
  Dated: September
  5, 2006

  	
   

  	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  John R. Lyon

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Chairman of the
  Board

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 -2-

 

Exhibit B

Employment
Disclosure

[Intentionally
Omitted]

Exhibit C

PROPRIETARY INFORMATION AND
INVENTIONS AGREEMENT

This Proprietary Information and Inventions Agreement
(the “Agreement”) confirms the understanding between me and iVow, Inc., a
Delaware corporation (hereafter referred to as “the Company”), and is a
material part of the consideration for my employment by or service to the
Company:

1.                                       I
understand that the Company possesses and will possess Proprietary Information
which is important to its business.  For
purposes of this Agreement, “Proprietary Information” is information that was
developed, created, or discovered by the Company, or which became known by, or
was conveyed to the Company.  “Proprietary
Information” includes, but is not limited to, trade secrets, copyrights, ideas,
techniques, know-how, inventions (whether patentable or not), and/or any other
information of any type relating to computer programs, computer code, software
source documents, software design and architecture,  product and service requirements and
specifications, devices, designs, configurations, documentation, recorded data,
schematics, algorithms, flow charts, formulae, works of authorship, mechanisms,
research, improvements, intellectual property, including patents and patent
applications, business plans, past or future financing, marketing, forecasts,
pricing, customers, the salaries, duties, qualifications, performance levels,
and terms of compensation of employees, and/or cost or other financial data
concerning any of the foregoing or the Company and its operations generally. “Proprietary
Information” shall not include the amount of my wages or salary.  I understand that my employment creates a
relationship of confidence and trust between me and the Company with respect to
Proprietary Information.

2.                                       I
understand that the Company possesses and will possess “Company Materials”
which are important to its business.  For
purposes of this Agreement, “Company Materials” are documents or other media
that contain Proprietary Information or any other information concerning the
business, operations or plans of the Company, whether such documents have been
prepared by me or by others.  “Company
Materials” include, but are not limited to, photographs, charts, graphs,
notebooks, customer lists, computer disks, tapes or printouts, sound recordings
and other printed, typewritten or handwritten documents.

3.                                       In
consideration of my employment by or service to the Company and the
compensation received by me from the Company from time to time, I hereby agree
as follows:

·                  All Proprietary
Information and all patents, copyrights and other rights in connection
therewith shall be the sole property of the Company.  I hereby assign to the Company any rights I
may have or acquire in such Proprietary Information.  At all times, both during my employment by or
service to the Company and after its termination, I will keep in confidence and
trust and will not use or disclose any Proprietary Information or anything
relating to it without the prior written consent of an officer of the Company,
except as may be necessary in the ordinary course of performing my duties to
the Company.

·                  I agree to make
and maintain adequate and current written records, in a form specified by the
Company, of all inventions, trade secrets, and works of authorship assigned or
to be assigned pursuant to this Agreement. 
All Company Materials shall be the sole property of the Company.  I agree that during my employment by or
service to the Company, I will not remove or electronically transmit any
Company Materials from the business premises of the Company or deliver any
Company Materials to any person or entity outside the Company, except as I am
required to do in connection with performing the duties of my employment or
service.  I further agree that,
immediately upon the termination of my employment or service by me or by the
Company for any reason, or during my employment or service if so requested by
the Company, I will return all Company Materials and other physical property,
or any reproduction of such property, excepting only (i) my personal copies of
records relating to my compensation; (ii) my personal copies of any materials
previously distributed generally to stockholders of the Company; and (iii) my
copy of this Agreement.

 

·                  I will promptly
disclose in writing to my immediate supervisor, with a copy to the Chairman of
the Board of the Company, or to any persons designated by the Company, all “Inventions,”
which includes all improvements, inventions, discoveries, works of authorship,
mask works, computer programs, formulae, ideas, processes, techniques,
know-how, and data, whether or not patentable, made or conceived or reduced to
practice or developed by me, either alone or jointly with others, during the
time I am providing services to the Company (whether prior to or following the
execution of this Agreement).

·                  I agree that all
Inventions which I make, conceive, reduce to practice or develop (in whole or
in part, either alone or jointly with others) during the time I am providing
services to the Company (whether prior to or following the execution of this
Agreement) shall be the sole property of the Company to the maximum extent
permitted by law.  This assignment shall
not extend to Inventions, the assignment of which is prohibited by California
Labor Code Section 2870.  A copy of
Section 2870 of the California Labor Code is attached as Exhibit A.  The Company shall be the sole owner of all
patents, copyrights and other intellectual property or other rights in
connection therewith.  I further
acknowledge and agree that any copyrights in such Inventions, including in any
computer programs, programming documentation, and other works of authorship,
are “works made for hire” for purposes of the Company’s rights under copyright
laws.  I hereby assign to the Company any
rights I currently have or may acquire at any time in the future in such
Inventions.

·                  I agree to
perform, during and after my employment or service, all acts deemed necessary
or desirable by the Company to permit and assist it, at the Company’s expense,
in obtaining and enforcing patents, copyrights or other rights on such
Inventions and improvements in any and all countries.  Such acts may include, but are not limited
to, execution of documents and assistance or cooperation in legal
proceedings.  I hereby irrevocably designate
and appoint the Company and its duly authorized officers and agents, as my
agents and attorney-in-fact to act for and on my behalf and instead of me, to
execute and file any applications or related findings and to do all other
lawfully permitted acts to further the prosecution and issuance of patents,
copyrights or other rights thereon with the same legal force and effect as if
executed by me.

·                  Any assignment
of copyright hereunder includes all rights of paternity, integrity, disclosure
and withdrawal and any other rights that may be known or referred to as “moral
rights” (collectively “Moral Rights”). 
To the extent such Moral Rights cannot be assigned under applicable law
and to the extent the following is permitted by the laws in those countries where
Moral Rights are recognized, I hereby waive such Moral Rights and consent to
any action of the Company that would violate such Moral Rights in the absence
of such consent.  I will confirm such
waiver and consent from time to time as requested by the Company.

4.                                       I
have attached as Exhibit B a complete list of all Inventions or
improvements to which I claim ownership and that I desire to remove from the
operation of this Agreement, and I acknowledge and agree that such list is
complete.  If no such list is attached to
this Agreement, I represent that I have no such Inventions and improvements at
the time of signing this Agreement.

5.                                       I
represent that my performance of all the terms of this Agreement and as an
employee of the Company does not and will not breach any agreement to keep
in  confidence proprietary information,
knowledge or data acquired by me in confidence or in trust prior to my
employment by or service to the Company, and I will not disclose to the Company,
or induce the Company to use, any confidential or proprietary information or
material belonging to any previous employers or others.  I represent and warrant that I have returned
all property and confidential information belonging to all prior employers.  I have not entered into, and I agree I will
not enter into, any agreement either written or oral in conflict herewith or in
conflict with my employment with the Company. 
I further agree to conform to the rules and regulations of the Company.

 -2-
 

 

6.                                       I
agree that in addition to any other rights and remedies available to the
Company for any breach by me of my obligations under this Agreement, the
Company shall be entitled to enforcement of my obligations hereunder by court
injunction.

7.                                       I
acknowledge that this Agreement is not an employment contract and that I have
the right to resign and the Company has the right to terminate my employment at
any time, for any reason, with or without cause.  My employment by or service to the Company is
“at will.”  I understand that this means
that the employment relationship may be terminated by me or by the Company at
any time, with or without cause or advance notice.  The at-will nature of my employment by the
Company may only be changed by a writing signed by me and by the President of
the Company.

8.                                       I
acknowledge and understand that this Agreement does not purport to set forth
all of the terms and conditions of my employment, and that as an employee of
the Company I have obligations to the Company which are not set forth in this
Agreement.  I agree that my obligations
under this Agreement shall continue in effect after termination of my
employment or service, regardless of the reason or reasons for termination or
whether such termination is voluntary or involuntary on my part.  I acknowledge that the Company is entitled to
communicate my obligations under this Agreement to any future employer or
potential employer of mine.

9.                                       If
one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provisions shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provisions were so
excluded and shall be enforceable in accordance with its terms.

10.                                 This
Agreement shall be effective as of the first day of my employment with or
service to the Company and shall be binding upon me, my heirs, executor,
assigns, and administrators, and shall inure to the benefit of the Company, its
subsidiaries, successors and assigns.

 -3-
 

 

11.                                 This
Agreement can only be modified by a subsequent written agreement executed by an
officer of the Company.

12.                                 Although
I may work for the Company outside of California or the United States, I
understand and agree that this Agreement shall be interpreted and enforced in
accordance with the laws of the State of California.

 I HAVE READ THIS AGREEMENT CAREFULLY AND I
UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT
RESERVATION.  I SIGN THIS AGREEMENT
VOLUNTARILY AND FREELY.

	
  Michael H. Owens, M.D.

  	
   

  	
   

  
	
  Employee Name
  (Please Print)

  	
   

  	
   

  
	
   

  	
   

  	
  Date: September 5, 2006

  
	
  Employee
  Signature

  	
   

  	
   

  

 

Accepted and agreed to:

iVOW, INC.

	
  By: 

  	
   

  	
   

  	
   

  	
  Date: September 5, 2006

  
	
  John R. Lyon, Chairman of the Board

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO PROPRIETARY
INFORMATION

AND INVENTIONS AGREEMENT]

 

 -4-

 

EXHIBIT A

Section 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 his 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.

 

 A-1

 

EXHIBIT B

1.                                       The
following is a complete list of all Inventions or Improvements relevant to the
subject matter of my employment by iVow, Inc. (“the Company”) that have been
made or conceived or first reduced to practice by me or jointly with others
prior to my employment by the Company that I desire to remove from the
operation of the Company’s Proprietary Information and Inventions Agreement:

____                    No inventions
or improvements.

____                    See
below:  Any and all inventions regarding:

____                    Additional
sheets attached.

 

 

 

 

 

 

 

 

 

 

2.                                       I
propose to bring to my employment the following materials and documents of a
former employer:

____                    No materials
or documents

____                    See below:

 

	
  Michael H. Owens, M.D.

  	
   

  	
  Date: September 5, 2006

  
	
  Employee
  Signature

  	
   

  	
   

  

 

 

 B-1Exhibit 10.1

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

This fourth
amendment to the Employment Agreement (as defined below), dated as of September
7, 2006 (this “Amendment”), is made between Asbury Automotive Group, Inc., a
Delaware corporation (the “Company”), and Kenneth B. Gilman (“Executive”).

RECITALS

WHEREAS Asbury
Automotive Group, L.L.C. and Executive entered into the Employment Agreement,
dated as of December 3, 2001, as amended February 26, 2004, November 8,
2004 and November 3, 2005 (the “Employment Agreement”);

WHEREAS, on March
19, 2002, the Company became the successor in interest of Asbury Automotive
Group, L.L.C.;

WHEREAS, Executive
has indicated his desire to renew the term of the Employment Agreement;

WHEREAS the
Company and Executive have agreed to renew the term of the Employment Agreement
for an additional year through December 31, 2007, as contemplated by
Section 12(c) of the Employment Agreement, and to provide that the Company
has an option to further extend the term of the Employment Agreement to April
30, 2008; and

WHEREAS the
Company and Executive desire to amend the Employment Agreement as set forth
below.

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.                                       The
term of the Employment Agreement is hereby renewed through December 31,
2007, unless extended at the option of the Company through April 30, 2008 (by
delivering notice to Executive at least two (2) months prior to December 31,
2007), unless, in each case, terminated earlier pursuant to Section 15 of
the Employment Agreement.  For the
avoidance of doubt, should the Company choose to exercise its option to extend
the term of the Employment Agreement through April 30, 2008, “Renewal Term” as
used in the Employment Agreement shall also include such extension.

2.                                       Section
3(b) of the Employment Agreement is hereby amended to read in its entirety as
follows:

(b) Executive shall report directly and exclusively to
the Board of Directors, and no other executive officer shall be appointed with
authority over the business operations of the Company superior to that of
Executive; provided that nothing herein shall be construed to prevent
the appointment of the Company’s Chief Operating Officer to the Board of
Directors and the exercise by such Chief Operating Officer of any duties and
responsibilities within the scope of membership on the Board of Directors.  No other officers, except for the Company’s
Chief Financial Officer, shall report directly to the Board of Directors; provided,
however, that this sentence shall not be deemed breached by any other
officer’s reporting to the Board in order to comply with the Sarbanes-Oxley Act
of 2002 or other applicable law or regulation (including applicable stock
exchange requirements).  During the Term,
the Company shall use its reasonable best efforts to ensure that Executive is
elected and re-elected as a director of the Company.

3.                                       Section
3(c) of the Employment Agreement is hereby amended by deleting the first
sentence thereof and replacing such sentence with the following:

(c) Executive shall perform such services and duties
for the Company as are customarily performed by an executive in Executive’s
position at a business such as the Company’s business (in which, among other
things, a chief financial officer and a chief operating officer also perform

 

 

 

customary services and duties for such positions and a chief operating
officer serves as a member of the board of directors with duties and responsibilities
within the scope of such membership) and as the Board of Directors may
reasonably assign or delegate to him from time to time.

4.                                       Section
12(a) of the Employment Agreement is hereby amended by replacing the first
sentence thereof with the following:

If Executive’s employment is terminated for any
reason, then, in addition to the other applicable benefits set forth in this
Section 12, Executive shall be entitled to receive (i) his Base Salary through
the date of his termination, (ii) any Target Bonus or Additional Bonus earned
in a previous year that has not yet been paid and (iii) if Executive’s
employment is terminated after June 30, 2007, a cash payment equal to (A) the
Target Bonus that the Executive was eligible to earn pursuant to Section 5 for
the year of such termination (as determined without regard to any discretionary
ability to reduce the amount of the bonus that would otherwise be payable under
the applicable formula), multiplied by (B) a fraction (x) the numerator of
which is the number of days in such year up to the date of termination and (y)
the denominator of which is 365 (the “Accrued Obligations”).

5.                                       Sections
12(b)(i)(A) and (B) of the Employment Agreement are hereby amended to read in
their entirety as follows:

(A) a lump sum cash payment in the amount of 200% of
the present value, as of the date of such termination, of his current Base
Salary, said present value to be determined in good faith by the Board of
Directors based on an assumption that such amount would be paid over a 24 month
period, using the Prime Rate reported by JP Morgan Chase Manhattan Bank as of
the close of business on the date of such termination; and

(B) an amount equal to the total bonus, if any,
actually earned by Executive pursuant to Section 5 for the year preceding the
year in which such termination occurred; provided, however, that
if the Company elects to extend the Term of this Agreement through April 30,
2008, and Executive’s employment is terminated as set forth above in Section
12(b)(i) at any time from and including January 1, 2008, through and including
April 30, 2008, then the total bonus amount calculated pursuant to this clause
(B) will be based on the total bonus amount, if any, actually earned by
Executive pursuant to Section 5 in 2006.

6.                                       Section
12(d)(ii)(C) of the Employment Agreement is hereby amended to read in its
entirety as follows:

(C) any substantial diminution in Executive’s duties
or responsibilities set forth herein, except in connection with the termination
of Executive’s employment for Good Cause; provided, however, that
no such substantial diminution will be deemed to have occurred merely as a
result of the appointment by the Board of Directors of a Chief Operating
Officer for the Company and the assignment of customary responsibilities to
such Chief Operating Officer that are not inconsistent with Section 3(c) or the
appointment of such Chief Operating Officer to the Board of Directors or the
exercise by such Chief Operating Officer of any duties or responsibilities
within the scope of his membership on the Board of Directors;

7.                                       Section
12(d)(ii)(E) of the Employment Agreement is hereby amended to read in its
entirety as follows:

 

 2
 

 

 

(E) the existence of a direct reporting relationship
between the Board of Directors and any employee of the Company other than
Executive or the Company’s Chief Financial Officer; provided, however,
that this clause (E) shall not be deemed breached by any other officer
reporting to the Board of Directors in order to comply with the Sarbanes-Oxley
Act of 2002 or other applicable law or regulation (including applicable stock
exchange requirements) or by the appointment of the Company’s Chief Operating
Officer to the Board of Directors;

8.             Section 12(c) of the Employment Agreement is hereby
amended to read in its entirety as follows:

Upon non-renewal of the Employment Agreement by either party at the
expiration of the Term or Renewal Term, as applicable, (i) Executive’s
employment shall terminate at the expiration of the Term or the Renewal Term,
as applicable, and (ii) the Company shall pay to Executive (in addition to the
Accrued Obligations) within 30 days of such termination (after execution and
delivery by Executive of a Termination Release as defined above) as severance
pay the amounts described in Section 12(b)(i)(A) and (B), provided that,
for the avoidance of doubt,  Executive
shall not be entitled to receive duplicate severance pay under Section 12(b) in
the event that severance is paid under this Section 12(c).

9.                                       Except
as specifically amended hereby, the other terms and conditions of the
Employment Agreement shall remain in full force and effect.

10.                                 This
Amendment may be executed in one or more counterparts, all of which shall be
considered one and the same agreement.

11.                                 This
Amendment shall be deemed to be made in, and in all respects shall be
interpreted, construed and governed by and in accordance with, the laws of the
State of New York, without regard to the conflicts of law principles of such
State.

 

 3
 

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed as
of the day and year first written above.

	
  

  	
  ASBURY AUTOMOTIVE GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Durham

  	
   

  
	
   

  	
  Name:

  	
  Michael Durham

  
	
   

  	
  Title:

  	
  Non Executive Chairman

  
	
   

  
	
   

  
	
   

  
	
   

  	
  /s/ Kenneth B. Gilman

  	
   

  
	
   

  	
  Kenneth B. Gilman

  

 

 4

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