Document:

EXHIBIT 10.2

Scientific Learning Corporation

2005 Management Incentive Plan

Purpose 

To provide significant cash awards to participants for the achievement and over-achievement of Scientific Learning’s collective financial goals, as well as each participant’s individual goals and overall performance in adding value for shareholders, customers and employees. 

Participants

All members of the Leadership Team, director-level employees and selected manager-level employees. The total number of participants at March 2005 is approximately 35 persons. The regional sales directors (K-12 and private sector) who are included in sales incentive compensation plans are excluded from this Plan. 

Target Incentive Awards

Intended to deliver market average incentive compensation at 100% achievement of goals. Awards increase for overachievement.

	 

	Title 	Target Award

(% of Base Salary Awarded at 100%

Achievement of Goals)	Max Award 

(Max % of Base Salary Awarded  

on Overachievement)
	
	
	

	CEO	50%	100%
	VP, Sales K-12 	50%	100%
	CFO	40%	80%
	Chief Ed. Officer, Other VPs	30%	60%
	Directors	20%	30%
	Managers	10%	15%

	 
	Goals 
All participants in the Plan will have shared Company financial goals and individual goals closely related to the individual’s own area of responsibility.

Shared Goals

Shared goals for the 2005 Plan are: 

	 

	 	 	Hurdle Level

(Minimum for 

Payment of Bonus)	 	Target Level

(100% Goal 

Achievement) 	 	Max. Overachievement 

Level	 
	 	 	
	 	
	 	
	 
	Operating Cash Flow*	 	$   5.4 million 	 	$   7.5 million 	 	$   8.5 million 	 
	Booked sales	 	$ 45.0 million	 	$ 48.7 million	 	$ 52.5 million 	 
	 	 	 	 	 	 	 	 

	 	* Operating cash flow is defined as GAAP cash flow from operating and investing activities, excluding repayment of management loans and accrued interest.
	 	 
	

	Individual Goals
Individual goal performance under the 2005 Plan is based on both the following. 

	 	 
	•	Achievement of agreed-upon individual goals closely related to the individual’s area of responsibility. These goals will be agreed in writing between the participant and his/her manager. 
	 	 
	•	Contribution to adding value for shareholders, customers and employees. 
	 	 
	•	Hurdle level for individual goals is 80%. Maximum overachievement level is 200%.

	 
	Weighting of Shared Goals and Individual Performance 

	 

	 	Goal	 	% of Target Award 

Allocated to Goal	 
	 	
	 	
	 
	 	Operating cash flow	 	30%	 
	 	Booked sales 	 	40%	 
	 	Individual performance 	 	30%	 

	 
	*For managers and director-level employees, the CEO has discretion to allocate the bonus opportunity differently among the various goals to reflect the priorities and responsibilities of that particular person. 

Hurdles and Scaling 

The bonus payout starts for each goal when the specified hurdle level for that goal is achieved. At the hurdle level, 50% of that goal’s portion of the target award is earned. At 100% of the goal, then 100% of that goal’s target award is earned. Between the hurdle level and 100% achievement of the goal, the portion of the award earned is scaled ratably. 

Overachievement

	 

	•	Officers can double their bonus through overachievement and directors and managers can increase their bonus by 50% through overachievement. 
		 
	•	The overachievement potential is divided among the goals in the same percentage as the bonus for achievement. 
		 
	•	The maximum overachievement award is paid at the maximum overachievement levels specified above. 
		 
	•	Between 100% achievement and the maximum bonus overachievement level, each goal’s portion of the award is scaled ratably. 

	 
	Illustration 

The attached chart illustrates, for particular positions, the percentage of base salary payable for each goal, at the hurdle, 100% and maximum overachievement levels. 

Timing

Awards will be paid in the first quarter of 2006, following the completion of the 2005 audit. Plan participants must be employed at Scientific Learning in a position that is eligible for an award under this Plan when the awards are paid in order to receive an award. Participants hired or promoted in to a MIP eligible position prior to October 1, 2005 will be eligible for a pro-rated award (unless otherwise agreed to, in writing, at the time of the employment action).

Compensation Committee Discretion

The Compensation Committee has discretion to pay awards to reflect achievement even if specific goals are not met, and to interpret the terms of the Plan. 

	 
	

	% of Base Salary Available as MIP Award at Specified Levels of Achievement of Goals

	 

	 	% of Base Salary Available as Bonus	 
	 	
	 
	  	Operating Income 	  	Booked Sales	  	Individual Goals	  	Total	  
	 	
	 	
	 	
	 	
	 
	 	At

  Hurdle	 	100%	 	Max

  Over	 	At

  Hurdle	 	100%	 	Max

  Over	 	At

  Hurdle	 	100%	 	Max 

  Over	 	At 

  Hurdle	 	100%	 	Max 

  Over	 
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 	
	 
	       CEO

  VP Sales K-12	7.5	%	15	%	30	%	10	%	20	%	40	%	7.5	%	15	%	30	%	25	%	50	%	100	%
	       CFO	6	%	12	%	24	%	8	%	16	%	32	%	6	%	12	%	24	%	20	%	40	%	80	%
	Chief Ed Officer,

    other VPs	4.5	%	9	%	18	%	6	%	12	%	24	%	4.5	%	9	%	18	%	15	%	30	%	60	%
	    Directors*	3	%	6	%	9	%	4	%	8	%	12	%	3	%	6	%	9	%	10	%	20	%	30	%
	    Managers*	1.5	%	3	%	4.5	%	2	%	4	%	6	%	1.5	%	3	%	4.5	%	5	%	10	%	15	%

	 
	* Subject to adjustment by the CEO, as described above.EMPLOYMENT AGREEMENT

         This Agreement is entered into between Richard Schiffmann ("Employee")
and ICOA, Inc. ("Company") as of December 16 2004, upon the following terms and
conditions:

     1. Duties;  At-Will Employment. Employee will be appointed as President of
Company no later than March 31,  2005, and will perform for Company such duties
as may be designated by Company from time to time. Employee is hereby  retained
by Company for no specified term, and may be terminated by Company at any time,
with or without  cause,  and with or without  notice.  Similarly, Employee  may
terminate Employee's employment with Company at any time, with or without
cause, and with or without notice.

     2.  Compensation. In exchange for the services  Employee  will perform for
Company, the Company agrees to provide the following compensation to Employee:

        2.1 Salary.  Employee  shall be paid an annual salary of $120,000,
payable semi-monthly. Effective  beginning  March 31, 2005,  Employee  shall be
paid an annual salary of $144,000, payable semi-monthly.

        2.2 Severance. In the event that Employee's employment is terminated
involuntarily without Cause, Employee will be entitled to a severance payment
equivalent to one year's salary, to be payable quarterly, in advance,
commencing with such termination. "Cause" means (i) incompetence, fraud,
personal dishonesty, embezzlement or acts of gross negligence or gross
misconduct on the part of Employee in the course of his or her employment or
services, (ii) a Employee's engagement in conduct that is materially injurious
to the Company,(iii) a Employee's conviction by a court of competent
jurisdiction of, or pleading "guilty" or "no contest" to, (x) a felony, or (y)
any other criminal charge (other than minor traffic violations) which could
reasonably be expected to have a material adverse impact on the Company's or an
Affiliate's reputation or business; (iv) public or consistent drunkenness by a
Employee or his illegal use of narcotics which is, or could reasonably be
expected to become, materially injurious to the reputation or business of the
Company or an Affiliate or which impairs, or could reasonably be expected to
impair, the performance of a Employee's duties to the Company; or (v) willful
failure by a Employee to follow the lawful directions of a superior officer or
the Board. Where Cause is based upon a willful and continued failure by
Employee to perform material duties owed to the Corporation (other than any
such failure resulting from incapacity due to physical or mental illness), Cause
shall arise only after a written demand for substantial performance is
delivered to Employee by the Corporation's Board of Directors which identifies
the manner in which the Board believes that Employee has not substantially
performed such duties, and what actions are needed to cure such condition

        2.3 Benefits. Employee is eligible for group health insurance, 401(k)
plan participation, expense reimbursement and other benefits as they are
offered to senior management of the Company.

        2.4 Vacation. Employee shall be entitled to four (4) weeks of paid
vacation per year. This vacation time shall accrue monthly and not be subject
to any form of cap or maximum. These provisions may be superseded by the
Company's  adoption of a comprehensive set of employment policies and
parameters.

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        2.5 Relocation Allowance. Employee shall be entitled to a relocation
allowance of $20,000 for expenses incurred in his relocation to commence
employment with the Company.

        2.6 Equity Compensation. Employee shall be entitled to equity
compensation comparable to that of similarly situated senior management of
similarly sized publicly traded companies. All negotiations related to equity
compensation shall be conducted in good faith.

        2.7 Bonus Plan  Participation.  Employee shall be entitled to bonus
plan  participation  comparable to that of similarly  situated management
personnel. All negotiations related to equity compensation shall be conducted
in good faith.

        2.8 Accrued Expenses and Equity Conversion. The Corporation has an
obligation to reimburse Employee a total of $122,605 for accrued but unpaid
expenses and fees for the time that Employee was working as a contractor to the
Corporation, through June 10, 2004. Such reimbursement shall occur no later
than June 30, 2005.

        2.9 Directors' and Officers' Insurance Policy. By March 31, 2005, the
Corporation shall obtain directors' and officers' insurance covering Employee
as an insured in an amount not less than $5,000,000 with coverage provisions
comparable to those of other publicly traded companies. In the event that the
Corporation does not obtain such coverage by such date, Employee shall be
entitled to obtain such coverage for himself at his own expense, and be
reimbursed for such insurance by the Corporation.

     3.  Confidentiality and Proprietary  Information. Employee and the Company
agree that the following  confidentiality and proprietary information terms and
conditions shall govern their relationship:

        3.1 Definition of Confidential Information. "Confidential Information"
as used in this Agreement shall mean valuable information concerning Company's
business which is not generally known to the public and is disclosed to
Employee during the period of and pursuant to the scope of his employment with
Company."Confidential Information" shall include trade secrets, know-how,
inventions, techniques, processes, algorithms, software programs, schematics,
software source documents, contracts, customer lists, financial information,
and sales and marketing plans and information.

        3.2 Confidentiality Obligations. Employee agrees to use Confidential
Information, and to use reasonable care to disclose Confidential Information
only to those persons who need to know such Confidential Information, for the
purpose of performing his duties of employment to the Company.

        3.3 Exclusions from Confidentiality Obligations. Employee's
obligations under Section 3.2 ("Confidentiality Obligations") with respect to
any portion of Confidential Information shall not apply to such portion that
Employee can demonstrate that: (a) was known to Employee at the time of
disclosure, (b) was publicly known at or subsequent to the time such portion
was communicated to Employee by Company through no fault of Employee; (c) was
in Employee's possession free of any obligation of confidence at or subsequent
to the time such portion was communicated to Employee by Company; (d) was
developed by Employee independently of and without reference to any of the

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Confidential  Information  communicated to Employee by Company; (e) was required
to be  disclosed  in response to a valid order by a court or other  governmental
body or to establish the rights of either party under this Agreement, or (f) was
approved for release by written authorization of Company.

        3.4 Ownership of Materials. All materials (including, without
limitation, documents, drawings, models, apparatus, sketches, designs and
lists)furnished to Employee by Company, and which are designated in writing to
be the property of Company, shall remain the property of Company. Employee
shall return to Company or destroy such materials and all copies thereof upon
the written request of Company.

        3.5 Term. This Agreement shall govern all communications from Company to
Employee that are made during the period from the Effective Date to the date
upon which Employee's employment with Company ceases, provided, however, that
Employee's obligations under Section 3.2 ("Confidentiality Obligations") with
respect to Confidential Information which Employee has received prior to the
termination of Employee's employment shall continue for one (1) year after the
date of such termination of employment unless terminated earlier pursuant to
Section 3.3 ("Exclusions from Confidentiality Obligations").

     4. No Conflict of  Interest.  During  Employee's  period of  employment  by
Company  and for one  year  thereafter  (except  where  Employee  is  terminated
involuntarily  without  Cause),  Employee will not engage in  employment  with a
competing provider of internet access services of a comparable size to Company.

     5. Survival.  Other than Section 2  ("Compensation"),  this Agreement:  (a)
shall survive Employee's employment by Company, to the extent delineated herein;
(b) does not in any way  restrict  Employee's  right or the right of  Company to
terminate  Employee's  employment at any time,  for any reason or for no reason;
(c) inures to the  benefit of  successors  and  assigns of  Company;  and (d) is
binding upon Employee's heirs and legal representatives.

     6. No Solicitation.  During the term of Employee's  employment with Company
and for a period  of  twelve  months  thereafter,  Employee  will  not  solicit,
encourage,  or cause others to solicit or encourage any  employees,  independent
contractors,  or clients of Company to terminate their employment,  contractual,
or client relationship with Company.

     7. Notices.  Any notice required or permitted by this Agreement shall be in
writing  and  shall  be  delivered  as  follows,  with  notice  deemed  given as
indicated: (a) by personal delivery, when delivered personally; (b) by overnight
courier,  upon  written  verification  of receipt;  (c) by telecopy or facsimile
transmission,  upon acknowledgment of receipt of electronic transmission; or (d)
by certified or registered mail, return receipt requested,  upon verification of
receipt.  Notices shall be sent to such address as either party may designate in
writing to the other.

     8. Disputes; Governing Law.

     (a)Any and all disputes  arising out of or in any way related to Employee's
employment with, or separation from, Company, as well as any and all disputes or
claims  arising  out of or in any  way  related  to this  Agreement,  including,
without limitations,  fraud in the inducement of this Agreement,  or relating to

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the general validity or enforceability of this Agreement, shall be submitted to
final and binding  arbitration before an arbitrator of the American Arbitration
Association, Providence, Rhode Island, in accordance with the rules of that
body governing  commercial  disputes,  and  prevailing  party  shall be
entitled  to reasonable  costs and  attorneys'  fees.  Judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.

     (b) This  Agreement  shall be governed  in all  respects by the laws of the
United States of America and by the laws of the State of Rhode  Island,  as such
laws are applied to agreements  entered into and to be performed entirely within
Rhode Island  between Rhode Island  residents.  Each of the parties  irrevocably
consents to the exclusive personal  jurisdiction of the federal and state courts
located  in Rhode  Island,  as  applicable,  for any  matter  arising  out of or
relating to this Agreement,  except that in actions seeking to enforce any order
or any judgment of such federal or state courts  located in Rhode  Island,  such
personal jurisdiction shall be nonexclusive.

     9.  Severability.  If any provision of this Agreement is held by a court of
law to be illegal, invalid or unenforceable,  (i) that provision shall be deemed
amended  to  achieve  as  nearly as  possible  the same  economic  effect as the
original  provision,  and (ii) the legality,  validity and enforceability of the
remaining  provisions  of this  Agreement  shall  not be  affected  or  impaired
thereby.

     10. Waiver; Amendment;  Modification.  The waiver by either party of a term
or  provision  of  this  Agreement,  or of a  breach  of any  provision  of this
Agreement, shall not be effective unless such waiver is in writing signed by the
party  against  whom  enforcement  is sought.  No waiver by either  party of, or
consent  by either  party to, a breach by the other  party,  will  constitute  a
waiver of, consent to or excuse of any other or subsequent breach by such party.
This Agreement may be amended or modified only with the written  consent of both
parties. No oral waiver,  amendment or modification shall be effective under any
circumstances whatsoever.

     11.  Entire  Agreement.   This  Agreement   represents   Employee's  entire
understanding  with Company with respect to the subject matter of this Agreement
and supersedes all previous understandings, written or oral.

     Agreed and acknowledged as of the date first written above.

ICOA, Inc.

By:/s/ Erwin Vahlsing, Jr.               Signature: /s/ Richard Schiffmann
   ------------------------------------             ----------------------------
   Erwin Vahlsing, Jr., CFO                         Richard Schiffmann

Dated: December 16, 2004                 Dated: December 16, 2004
      -------------------                      -------------------

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