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exemployagmtoborn.htm

    
      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
              Exhibit
                10.30

               

              

            

          

        

        

         

        EMPLOYMENT
          AGREEMENT

         

        THIS
          EMPLOYMENT AGREEMENT (the “Agreement”) is
          made
          and entered into effective as of November 30, 2007 (the “Effective Date”), by
          and between Cognigen Networks, Inc., a Colorado corporation (the “Company”) and
          Patrick
          Oborn, an individual (the “Employee”).

         

        RECITAL

         

        WHEREAS,
          pursuant to the terms of that certain Asset Purchase and Reorganization
          Agreement (the “Purchase Agreement“)
          dated November 30, 2007 by and among the Company and Commission River Inc.
          (“Commission
          River”), the Company proposes to acquire substantially all of the assets
          of Commission River in exchange for shares of voting common stock of the
          Company
          (the “Transaction”);

         

        WHEREAS,
          an essential condition to the Transaction is the execution of an Employment
          Agreement to be entered into between the Employee and the Company;
          and

         

        WHEREAS,
          the Company desires to employ Employee and the Employee desires to be employed
          by the Company, upon the terms and subject to the conditions hereinafter
          set
          forth.

         

        NOW,
          THEREFORE, in consideration of the mutual premises and agreements hereinafter
          set forth, and for other good and valuable consideration the receipt and
          sufficiency of which are hereby acknowledged, Company and Employee, intending
          to
          be legally bound, agree as follows:

         

        AGREEMENT

         

        1. Employment.  Commencing
          on the Effective Date and continuing throughout the term of this Agreement,
          the
          Company hereby agrees to employ the Employee as the Vice President of the
          Company and President and General Manager of Commission River Operations
          or a
          similar position with a subsidiary of the Company, and the Employee hereby
          accepts employment with the Company or subsidiary of the Company, upon
          the terms
          and subject to the conditions set forth herein.

         

        2. Term.  The
          Employee shall be employed by the Company for a period of three (3) years
          from
          the Effective Date or until the Employee’s employment with the Company is
          terminated in accordance with Section
          6.

         

        3. Duties.

         

        (a) General
          Duties.  The Employee will initially be employed as the Vice
          President of the Company and President and General Manager of Commission
          River
          Operations, and will have and perform those duties and responsibilities
          which
          are appropriate and customary to the position held by the Employee and
          assigned
          or delegated to the Employee from time to time by the Company’s Board of
          Directors (the “Board”), President
          or
          Chief Executive Officer.  The Board or the Company’s President or
          Chief

         

        
          
            
              
                	
                        239277.2

                      	 	 

              

              

              

            

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Executive
          Officer may, in their sole discretion, alter, modify, or change the Employee’s
          duties, offices, positions, responsibilities and obligations set forth
          in this
          Agreement at any time (including employing the Employee with a subsidiary
          of the
          Company), consistent with the Employee’s status as Vice President of the Company
          and President and General Manager of Commission River Operations.

         

        (b) Performance.  To
          the best of the Employee’s ability and experience, the Employee will at all
          times loyally and conscientiously perform all duties, and discharge all
          responsibilities and obligations, required of and from the Employee pursuant
          to
          the terms hereof, and to the satisfaction of the
          Company.  Notwithstanding the foregoing, the Employee shall be free to
          engage in the business management and ownership of, or employment by, Telarus,
          Inc. (“Telarus”), as
          long as
          such engagement does not materially interfere with his employment with
          the
          Company.  For purposes of this Agreement, the scope of Telarus’
business in which Employee may be engaged shall be limited to (i) ownership
          of
          common shares of Telarus, and (ii) sales, marketing and consulting services
          in
          the area of commercial information technology, including without limitation
          telecommunications services and devices, networking services and devices,
          residential broadband sales and services through www.shop4DSL.com, software
          and software as a service (collectively, the “Telarus
          Business”).  Additional products, services and business pursuits may
          be added to the Telarus Business by written consent of the Company which
          consent
          will not be unreasonably withheld.

         

        (c) Place
          of
          Performance.  In connection with the Employee’s employment by
          the Company and unless the parties hereto mutually agree otherwise, the
          Employee
          will be based at the Company’s offices in Draper, Utah, except for required
          travel on Company business.

         

        4. Compensation
          and Related
          Matters.

         

        (a) Salary
          and
          Bonus.  In consideration for services rendered to the Company
          as provided herein, the Company will pay to the Employee a base salary
          (the
“Base Salary”)
          at a rate of: (x) $72,000 per annum for the first thirteen (13) months
          following
          the Effective Date; and (y) $100,000 per annum thereafter during the term
          of
          this Agreement.  The Base Salary shall be paid as
          follows:

         

        (i) For
          the
          first thirteen (13) months following the Effective Date and calculated
          on a per
          annum basis: (x) $24,000 of the Base Salary will be paid in cash according
          to
          the Company’s standard payroll policy as in effect from time to time, which
          currently provides for payments to be made twice a month, in arrears; and
          (y)
          $48,000 of the Base Salary will be paid within thirty (30) days of the
          Company’s
          fiscal year end, and shall be paid in shares of common stock of the Company
          (the
“Shares”).  The
          Company shall issue such Shares to Employee based on the stock price of
          $.03 per
          share of common stock of the Company.  The Company shall issue the
          Shares in compliance with all applicable state and federal securities
          laws.

         

         

        
          
            
            

          

          
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        (ii) Subsequent
          to the first thirteen (13) months following the Effective Date and calculated
          on
          a per annum basis, the Base Salary will be paid in cash according to the
          Company’s standard payroll policy as in effect from time to time, which
          currently provides for payments to be made twice a month, in
          arrears.

         

        (iii) The
          Employee shall also be eligible to receive bonuses (each a “Bonus”), payable
          in
          cash within forty-five (45) days after the Company’s fiscal year
          end.  Each Bonus will be based upon the Employee achieving certain
          performance objectives established and provided to the Employee by the
          Board or
          the Company’s President or Chief Executive Officer.

         

        Subject
          to Section 6(a)(iv) hereof, the Base Salary may be increased from time
          to time
          in accordance with normal business practices of the Company.

         

        (b) Expenses.  The
          Employee will be entitled to receive reimbursement for reasonable expenses
          incurred by the Employee in performing services hereunder, including expenses
          for travel and living expense while away from home on business in the service
          of
          the Company; provided that
          all
          expenses are incurred, documented, and accounted for in accordance with
          the
          policies and procedures as are from time to time established by the Company
          and
          expenses in excess of $5,000 are approved in advance by the President,
          Chief
          Executive Officer or Chief Financial Officer of the Company.

         

        (c) Employee
          Benefit
          Plans.  During the term of this Agreement, the Employee is
          entitled to participate in any employee benefit plans which may be made
          available by the Company to its employees generally, including, but not
          limited
          to, cafeteria plans and health, life, hospitalization, stock purchase plans,
          option plans, dental, disability or other insurance plans as may be in
          effect
          from time to time and in accordance with rules established from time to
          time for
          individual participation in such plans.

         

        (d) Paid
          Leave.  The Employee will be entitled to the number of paid
          leave days in each calendar year as is determined in accordance with the
          Company’s paid leave policy as in effect from time to time.  The
          Employee will also be entitled to all paid holidays given by the Company
          to its
          employees.  Use of paid leave (and, if applicable, accrual of and
          compensation for unused paid leave) will be subject to the Company’s
          policies.

         

        5. Facilities
          and Services
          Furnished.  The Company will furnish the Employee with office
          space, and such other facilities, furniture, equipment, and services as
          it may
          determine to be reasonably necessary for the performance of the Employee’s
          duties as set forth herein.

         

        6. Termination.

         

        (a) Termination
          Events.  The Employee’s employment hereunder may be terminated
          under any of the following circumstances:

         

        (i) Death.  The
          Employee’s employment hereunder shall terminate upon the Employee’s
          death.

         

         

        
          
            
            

          

          
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        (ii) Disability.  If
          the Employee is determined to be “disabled” in accordance with this Section 6(a)(ii), the
          Company may terminate the Employee’s employment hereunder.  For
          purposes of this Agreement, the Employee shall be considered “disabled”
if in
          the
          reasonable, good faith judgment of a licensed physician selected jointly by the
          Company and the Employee (or the Employee’s personal representative), the
          Employee is unable, after any accommodation required by applicable law,
          to
          perform the Employee’s customary duties as an employee of the Company because of
          a physical or mental impairment for a period of three (3) consecutive
          months.  The determination by the physician selected by the Company
          and the Employee (or the Employee’s personal representative) shall be binding
          and conclusive for all purposes.  If the Company and the Employee (or
          the Employee’s personal representative) cannot agree on a single physician, the
          Company and the Employee (or the Employee’s personal representative) may each
          designate a physician.  If the two (2) physicians do not agree on
          whether the Employee is “disabled” as defined in this Section 6(a)(ii),
          they shall jointly appoint a third (3rd) physician, whose judgment concerning
          whether the Employee is disabled shall be binding and conclusive on all
          parties.  The Employee agrees to submit to such physical examinations
          as may be ordered by any physician selected pursuant to this Section
          6(a)(ii).

         

        (iii) Cause.  The
          Company may terminate the Employee’s employment hereunder for Cause (as defined
          below) at any time upon delivery of written Notice of Termination (as defined
          below) to the Employee.  For purposes of this Agreement, “Cause”
shall
          mean (1)
          the conviction of (or the plea of guilty or no contest to) a felony, as
          evidenced by a judgment, order or decree of, or acceptance of a plea of
nolo
          contendere (or similar
          plea) by, a
          court of competent jurisdiction, which the Board reasonably determines
          is likely
          to have a material adverse effect on the ability of the Employee to effectively
          perform the Employee’s duties, (2) unreasonable neglect or refusal by the
          Employee to perform the Employee’s duties or responsibilities that remains
          uncured for at least ten (10) days following the Employee’s receipt of written
          notice of such neglect or refusal from the Board, (3) the Employee’s performance
          of an act or failure to perform an act which, if the Employee were prosecuted
          and convicted, would constitute a felony, (4) a material violation by the
          Employee of the Company’s established policies and procedures that remains
          uncured for at least ten (10) days following the Employee’s receipt of written
          notice of such violation from the Board, (5) the breach by the Employee
          of any
          of the Employee’s material obligations under this Agreement that remains uncured
          for at least ten (10) days following the Employee’s receipt of written notice of
          such breach from the Board; provided that
          the
          Employee shall not have any opportunity to cure any material breach of
Section 8 or Section
          9 hereof, or
          (6) the Employee’s commission of an act of fraud, misappropriation or
          embezzlement against the Company.  A determination of whether the
          Employee’s actions justify termination for Cause and the date on which such
          termination is effective shall in each case be made in good faith by the
          Board;
          provided that the mere allegation of any act described in clause (3) or
          (6)
          above shall not constitute a sufficient basis for “Cause” under such clause (3)
          or 

         

         

        
          
            
            

          

          
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          (6),
            as
            applicable, and the Employee shall be given in advance of such determination
            a
            full and detailed written statement of the basis of such claim and shall
            be
            given the opportunity to provide contrary proof before the Board, except
            that
            such opportunity will not be required to be given in the event of actual
            conviction of the type of felony referred to above.

        

         

        (iv) Other
          Events of
          Termination.  The Employee’s employment hereunder may be
          terminated (1) by the Company at any time for any other reason or no reason
          by
          providing written Notice of Termination to the Employee; (2) by the Employee,
          upon the Company’s breach of any material provision of this Agreement that is
          not cured by the Company within ten (10) days of the Company’s written receipt
          of written notice of such breach from Employee; or (3) by the Employee
          for “Good
          Reason” at any time, which shall mean (i) a change in the Employee’s position
          that materially reduces his level of authority or responsibility; (ii)
          a change
          in Employee’s reporting authority to the Company’s Chief Executive Officer or
          the Board; (iii) the Company’s failure to pay any amount due or owing to the
          Employee under the terms of this Agreement; (iv) the Company’s reduction of the
          Base Salary to an amount less than the amount provided for in Section 4(a)
          above; or (v) the Company’s breach of any material provisions of this Agreement
          not involving the payment of money and the expiration of ten (10) business
          days
          after the Company’s receipt of written notice of such breach from the Employee
          unless cured within twenty (20) business days following the notice
          period.

         

        (b) Notice
          of
          Termination.  “Notice
          of
          Termination” shall mean a notice which shall indicate the specific
          termination provision in this Agreement relied upon and shall set forth
          in
          reasonable detail the facts and circumstances claimed to provide a basis
          for
          termination of the Employee’s employment under the provision so
          indicated.

         

        (c) Effect
          of
          Termination.  In the event the Employee’s employment is
          terminated, all obligations of the Company and the Employee under this
          Agreement
          shall cease, except that if the Employee is terminated pursuant to Section
          6(a)(i), 6(a)(ii) or 6(a)(iii) hereof, the terms of Section 7 through
          Section 11
          shall survive such termination.  Upon termination for any reason, the
          Employee or the Employee’s representative or estate shall be entitled to receive
          any applicable compensation, benefits, and reimbursements set forth in
Section
          7.  The Employee acknowledges that, upon termination of the
          Employee’s employment, the Employee is entitled to no other compensation,
          severance or other benefits other than those specifically set forth under
          Section 7(b) or any other provision of this Agreement.

         

        7. Compensation
          and Severance
          Upon Termination.

         

        (a) In
          the
          event the Employee’s employment hereunder is terminated pursuant to Section
          6(a)(i), 6(a)(ii) or 6(a)(iii) above, the Employee or his estate shall
          only be
          entitled to receive the amount of the Base Salary payable through the date
          of
          termination, and shall not be entitled to any salary, compensation or benefits
          from the Company 

         

         

        
          
            
            

          

          
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          thereafter,
            except as otherwise specifically provided for under the Company’s employee
            benefit plans or as otherwise expressly required by applicable
            law.

        

         

        (b) In
          the
          event the Employee’s employment hereunder is terminated pursuant to Section
          6(a)(iv) above, Employee shall be entitled receive the following payments
          (all
          such payments will be made according to the Company’s standard payroll policy as
          in effect from time to time):

         

        (i) If
          Employee’s employment is terminated within the twelve (12) month period from the
          Effective Date, the Company shall pay to the Employee an amount that is
          equal to
          the sum of: (1) twelve (12) months of the Base Salary payable pursuant
          to
          Section 4(a)(x), and (2) any Bonus earned by the Employee in accordance
          with
          Section 4(a) hereof, all paid in cash pro rata over the twelve (12) month
          period
          commencing on the date of termination, plus the full medical, dental and
          vision
          premiums for continuation coverage under COBRA for the Employee and his
          dependents who qualify for continuation coverage under COBRA for one (1)
          year
          following the date of termination.

         

        (ii) If
          Employee’s employment is terminated at any time on or after the first
          anniversary of the Effective Date, the Company shall pay to the Employee
          an
          amount that is equal to the sum of three (3) months of the Base Salary
          for the
          year in which the termination occurred, plus the full medical, dental and
          vision
          premiums for continuation coverage under COBRA for the Employee and his
          dependents who qualify for continuation coverage under COBRA for three
          (3)
          months following the date of termination.

         

        8. Confidentiality
          and
          Inventions Assignment.

         

        (a) Confidential
          Information and
          Work for Hire.  The Employee and the Company hereby acknowledge
          and agree that in connection with the employment of the Employee, the Employee
          has been and will be provided with or shall otherwise be exposed to or
          receive
          certain confidential and/or proprietary information of the Company or of
          third
          parties and may develop certain products, services, methods, know-how,
          procedures, formulae, processes, specifications, and information of a similar
          nature that relate to the services provided by the Employee to the
          Company.  The Employee shall abide by the terms of this Section
          8.

         

        (b) Definitions.  As
          used herein:

         

        (i)           
          “Confidential
          Information” shall mean any and all tangible and intangible information,
          whether oral or in writing or in any other medium, relating to the management,
          business, strategy, plans, intellectual property, operations, products,
          inventions, financial condition, financial results, and financial projections
          of
          Commission River or the Company, including without limitation, any and
          all trade
          secrets, know-how, designs, drawings, schematics, formulations, ingredients,
          samples, processes, machines, prototypes, mock-ups, processing and control
          information, product performance data, manuals, supplier lists, customer
          

         

         

        
          
            
            

          

          
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          lists,
            purchase and sales records, marketing information and computer programs,
            whether
            developed by Commission River or the Company or furnished to Commission
            River or
            the Company by other third parties; and all information which relates
            to the
            analysis and evaluation of the Confidential Information and/or the use
            thereof
            developed or compiled by Commission River or the Company. Confidential
            Information shall not include Excluded Information (as defined
            below).

        

         

        (ii)           
          “Excluded
          Information” shall refer to information, if any, that would otherwise
          constitute Confidential Information and that (1) is generally available
          to or
          known by the public other than as a result of a disclosure made by Employee
          in
          breach of this Agreement; (2) was available to Employee on a nonconfidential
          basis prior to disclosure to Employee by the Company; (3) is disclosed
          to
          Employee on a nonconfidential basis from a source other than the Company;
provided that
          Employee is not, in good faith after reasonable inquiry, aware that such
          source
          is or was bound by a confidentiality agreement with the Company or otherwise
          prohibited from transmitting the information to Employee by any contractual,
          legal, or fiduciary obligation or by any other obligation enforceable by
          law or
          in equity; (4) is hereafter independently developed or compiled by Employee
          without the aid, application, or use of the Confidential Information; or
          (5) was
          available to the Employee or is hereinafter independently developed, compiled
          or
          obtained by the Employee while the Employee was engaged in the Telarus
          Business.  Excluded Information does not include information that
          would otherwise constitute Confidential Information during the period from
          the
          date the information was disclosed by the Company to Employee and the date
          that
          such information became Excluded Information.

         

        (iii)           
          “Person,”
          whether or not the term is capitalized, will be interpreted very broadly
          and
          will include, without limitation, any individual, corporation (including
          a
          business trust), partnership, joint stock company, limited liability company,
          trust, estate, unincorporated association, joint venture, or other entity,
          or a
          government or any political subdivision or agency thereof, whether or not
          any
          such person is an officer, director, employee, or agent of the
          Company.

         

        (c) Use
          of Confidential
          Information.  The Confidential Information will be used by the
          Employee solely for the purposes of performing services for the
          Company.  The Confidential Information will not, without the prior
          written consent of the Company, be used by the Employee, directly or indirectly,
          for any other purpose.  Such use shall cease at any time when this
          Agreement has terminated in accordance with its terms.

         

        (d) Nondisclosure.  The
          Employee agrees to safeguard the confidentiality of the Confidential Information
          and not to disclose any part of it to any Person except to those employees
          of
          the Company who need to know such information for the purposes of performing
          services for the Company.

         

        (e) Return
          of Confidential
          Information.  Promptly upon the request of the Company, the
          Employee will return to the Company all copies of Confidential 

         

         

        
          
            
            

          

          
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          Information
            furnished to the Employee by the Company, together with all copies of
            any of the
            same (whether in hard-copy form or on intangible media, such as electronic
            mail
            or computer files), or any part thereof, made by the Employee.  All
            notes, studies, reports, memoranda, and other documents prepared by the
            Employee
            that contain or reflect the Confidential Information shall also be returned
            to
            the Company.

        

         

        (f) Dispute
          as to Confidential
          Nature of Information.  In the event of a dispute or litigation
          between the Employee and the Company, the Employee shall have the burden
          of
          proving that any information disclosed to the Employee by the Company or
          used by
          the Employee, and which information the Employee claims does not constitute
          Confidential Information, is not in fact Confidential Information or a
          derivative thereof.

         

        (g) Subpoena;
          Court Order; Other
          Legal Requirement.  If the Employee is requested, under the
          terms of a subpoena or order or other compulsory instrument issued by or
          under
          the authority of a court of competent jurisdiction or by a governmental
          agency,
          or is advised in writing by counsel for any such party that there is otherwise
          a
          legal obligation to disclose (i) all or any part of the Confidential
          Information, (ii) the fact that the Confidential Information has been made
          available to the Employee, or (iii) any of the terms, conditions, or other
          facts
          with respect to the Employee’s employment with the Company or the services
          provided by the Employee to the Company, the Employee agrees to, at the
          Company’s expense: (1) provide the Company with prompt written notice of the
          existence, terms, and circumstances surrounding such request or requirement;
          (2)
          consult with the Company on the advisability of taking steps to resist
          or narrow
          that request; (3) if disclosure of Confidential Information is required,
          furnish
          only such portion of the Confidential Information as the Employee is advised
          in
          writing by the Employee’s counsel is legally required to be disclosed; and (4)
          cooperate with the Company, at the request of the Company and at the Company’s
          expense, in its efforts to obtain an order excusing the Confidential Information
          from disclosure, or an order or other reliable assurance that confidential
          treatment will be accorded to that portion of the Confidential Information
          that
          is required to be disclosed.

         

        (h) Inventions
          and Other
          Intellectual Property

         

        (i) Attached
          hereto as Schedule
          A is a list describing all inventions, original works of authorship,
          developments, improvements, and trade secrets which were owned or developed
          by
          the Employee prior to the Employee’s relationship with Commission River or the
          Company, which relate to the Company’s proposed businesses and products, and
          which are not assigned to the Company pursuant to this Section
          8(h).  If no such list is attached, the Employee represents
          that there are no such inventions. The Employee agrees to promptly make
          full
          written disclosure to the Company, to hold in trust for the sole right
          and
          benefit of the Company, and to assign to the Company all of the Employee’s
          right, title, and interest in and to any and all inventions, original works
          of
          authorship, developments, improvements, discoveries, ideas, know-how, processes,
          methods, formulae, techniques or trade secrets, whether or not patentable
          or
          copyrightable, which the Employee has solely or jointly conceived or developed
          or reduced to practice, may solely or jointly conceive or develop or

         

         

        
          
            
            

          

          
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          reduce
            to
            practice, or cause to be conceived or developed or reduced to practice,
            during
            the Employee’s relationship with the Company, whether as an officer, employee or
            other service provider.  The Employee acknowledges and understands
            that this Section
            8(h) will not apply to an invention as to which the Employee can prove
            the following:

        

         

        (1)           
          It was created by the Employee entirely on the Employee’s own time;

         

        (2)           
          It was not conceived, developed, reduced to practice or created by the
          Employee:

         

        (A)         
          within the scope of the Employee’s engagement or employment;

         

        (B)         
          on the Company’s time; or

         

        (C)         
          with the aid, assistance or use of any of the Company’s property, equipment,
          facilities, supplies, resources or intellectual property;

         

        (3)           
          It does not result from any work, services or duties performed by the Employee
          for the Company;

         

        (4)           
          It does not relate to the industry or trade of the Company; and

         

        (5)           
          It does not relate to the current or demonstrably anticipated business,
          research
          or development of the Company.

         

        The
          Employee acknowledges that all original works of authorship which are made
          by
          the Employee (solely or jointly with others) within the scope of the Employee’s
          work related to the Company and which are protectable by copyright are
“works
          made by hire,” as that term is defined in the United States Copyright Act (17
          U.S.C.A. § 101).  The Employee further agrees that, with respect to
          any “works made by hire” by the Employee (solely or jointly with others), the
          Employee will receive no royalty or other consideration therefor.

         

        (ii)           
          Maintenance
          of
          Records.  The Employee agrees to keep and maintain adequate and
          current written records of all inventions and original works of authorship
          made
          by the Employee (solely or jointly with others) during the term of the
          Employee’s relationship with the Company, whether as an officer, employee or
          other service provider, which will be in the form of notes, sketches, drawings,
          and any other format that may be specified by the Company; provided that
          the
          Employee shall not be required to maintain such records for any invention
          or
          original work of authorship made by the Employee in connection with the
          Employee’s services to Telarus related to the Telarus Business, as permitted
          hereunder.  Except as limited by the foregoing sentence, the records
          will be 

         

         

        
          
            
            

          

          
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          available
            to and remain the sole property of the Company at all times.  The
            records will include, but will not be limited to information as to all
            inventions, as well as information as to any studies or research projects
            undertaken on the Company’s behalf or with the aid, assistance or use of any of
            the Company’s property, equipment, facilities, supplies, resources or
            intellectual property, describing in detail the procedures employed and
            the
            results achieved, and any other information the Company
            requires.

        

         

        (iii)           
          Inventions Assigned
          to
          the United States.  The Employee agrees to assign to the United
          States government or any state or local government all of the Employee’s right,
          title, and interest in and to any and all inventions, original works of
          authorship, developments, improvements or trade secrets whenever such full
          title
          is required to be in the United States or any state or local government
          by
          contract between the Company and the United States government or any state
          or
          local government if applicable, except for inventions, original works of
          authorship, developments, improvements or trade secrets that are expressly
          excluded in this Agreement.

         

        (iv) Obtaining
          Letters Patent and
          Copyright Registrations.  The Employee agrees that the Employee
          will apply, at the Company’s expense and request, for United States and foreign
          letters patent or copyrights, either in the Employee’s name or otherwise as the
          Company desires, covering inventions and original works of authorship assigned
          hereunder to the Company.  The Employee further agrees that the
          Employee’s obligation to assist the Company to obtain such United States or
          foreign letters patent and copyright registrations will continue beyond
          the
          termination of the Employee’s relationship with the Company, whether as an
          officer, employee or other service provider, but the Company shall compensate
          the Employee for such assistance at a reasonable rate for time actually
          spent by
          the Employee beyond termination of the Employee’s relationship with the Company
          at the Company’s request.  If the Company is unable because of the
          Employee’s mental or physical incapacity or for any other reason to secure the
          Employee’s signature to apply for or to pursue any application for any United
          States or foreign letters patent or copyright registrations covering inventions
          or original works of authorship assigned to the Company pursuant to this
          Agreement, then the Employee hereby irrevocably designates and appoints
          the
          Company and its duly authorized officers and agents as the Employee’s agent and
          attorney in fact, to act for and in the Employee’s 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 letters patent or copyright
          registrations thereon with the same legal force and effect as if executed
          by the
          Employee.  The Employee hereby waives and quitclaims to the Company
          any and all claims, of any nature whatsoever, which the Employee now or
          may
          hereafter have for infringement of any patents or copyright resulting from
          any
          application for letters patent or copyright registrations assigned hereunder
          to
          the Company.

         

        9. Non-Competition

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        (a) Non-Competition
          Provision is
          Integral Part of Agreement.  The Company and the Employee have
          negotiated the non-competition provisions as an integral part of this
          Agreement.  The Company and the Employee agree to the non-competition
          and other provisions contained herein and agree that such provisions are
          reasonable and are necessary to induce the Company and the Employee to
          enter
          into this Agreement.  If, at the time of enforcement of any provision
          of this Agreement, a court or other tribunal shall hold that the restrictions
          herein are unreasonable or unenforceable under circumstances then existing,
          the
          Employee agrees that the maximum period, scope or geographical area reasonable
          under such circumstances shall be substituted for the period, scope or
          area
          stated herein.

         

        (b) Non-Competition.  The
          Employee agrees that during the term of the Employee’s employment with the
          Company and for a period of two (2) years thereafter (the “Restrictive
          Period”),
          the Employee will not, unless otherwise agreed by the Company in writing,
          directly or indirectly, as promoter, shareholder, agent, representative,
          manager, director, officers, owner, independent contractor or otherwise
          or in
          connection with any consultant, employee, agent, partner, relative, or
          affiliate
          of the Employee:

         

        (i) Anywhere
          in the world (the “Restricted Area”)
          own, manage, operate or control any business of the type and character
          engaged
          in and competitive with the Company or any affiliate thereof (for purposes
          of
          this paragraph, ownership of securities of not in excess of two percent
          (2%) of
          any class of securities of a public company shall not be considered to
          be
          competition with the Company or any affiliate thereof);

         

        (ii) Anywhere
          in the Restricted Area, act as an employee, officer, director, manager,
          member,
          advisor, representative, partner, consultant or agent for any business
          of the
          type and character engaged in and competitive with the Company, or any
          of its
          affiliates; or

         

        (iii) Solicit
          the employment of any employee or independent contractor of the Company
          or any
          of its affiliates.

         

        The
          Company hereby acknowledges and agrees that any of the Employee’s ownership
          interest in, or services to, Telarus during the Restricted Period shall
          not be
          deemed a breach of this Section 9 or any other provision of this agreement,
          provided that Telarus does not engage, directly or indirectly, in business
          other
          than the Telarus Business.

         

        (c) Definitions.  For
          purposes of this Agreement, the term “competitive
          with the
          Company” shall mean any business (other than the Telarus Business)
          located anywhere in the Restricted Area that (i) conducts business similar
          to
          the Company during the Employee’s employment with the Company or (ii) is engaged
          in the business of providing services and/or products similar to those
          of the
          Company during Employees employment with the Company related to providing
          technology, tools, and products to

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

        affiliate
          marketers and creating and managing affiliate programs for product vendors,
          but
          shall expressly exclude the Employee’s ownership of, providing services to, or
          employment by, Telarus.  As used in this Agreement, the term “affiliate”
shall
          mean
          any individual, joint venture, partnership, corporation, limited liability
          company, or shareholder which controls, is controlled by, or is under common
          control with, the Company, or in which the Company owns any interest, as
          required by the context of this Agreement.

         

        10. Availability
          of Equitable
          Remedies.  The Employee hereby acknowledges and agrees that a
          breach of any of the agreements contained in this Agreement will cause
          irreparable harm and damage to the Company, that the remedy at law for
          the
          breach or threatened breach of the agreements set forth in this Agreement
          will
          be inadequate, and that, in addition to all other remedies available to
          the
          Company for such breach or threatened breach (including, without limitation,
          the
          right to recover damages), the Company will be entitled to injunctive relief
          for
          any breach or threatened breach of the agreements contained in this
          Agreement.

         

        11. Representations
          and
          Warranties.

         

        (a) Restricted
          Securities.  The Employee understands that any Shares that may
          be issued to Employee hereunder have not been, and will not be, registered
          under
          the Securities Act of 1933, as amended (the “Securities Act”), by
          reason of a specific exemption from the registration provisions of the
          Securities Act which depends upon, among other things, the bona fide nature
          of
          the investment intent and the accuracy of the Employee’s representations as
          expressed herein.  The Company understands that the Shares are
“restricted securities” under applicable U.S. federal and state securities laws
          and that, pursuant to these laws, the Employee must hold the Shares indefinitely
          unless they are registered with the SEC and qualified by state authorities,
          or
          an exemption from such registration and qualification requirements is
          available.  The Employee acknowledges that the Company has no
          obligation to register or qualify the Shares for resale.  The Employee
          further acknowledges that if an exemption from registration or qualification
          is
          available, it may be conditioned on various requirements including, but
          not
          limited to, the time and manner of sale, the holding period for the Shares,
          and
          on requirements relating to the Company which are outside of the Employee’s
          control, and which the Company is under no obligation and may not be
          able to
          satisfy.

         

        (b) Limited
          Market.  The Employee understands that the Shares are quoted on
          the Over-the-Counter Bulletin Board and that a limited public market exists
          for
          the Shares.  The Company has made no assurances that an active public
          market will ever exist for the Shares.

         

        (c) Legends.  The
          Employee understands that the Shares and any securities issued in respect
          of or
          exchange for the Shares, may bear one or all of the following
          legends:

         

        (i)           
          “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
          THE
          SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
          A

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        VIEW
          TO,
          OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH
          TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
          THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
          THAT SUCH
          REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

         

        (ii)           
          Any legend required by the securities laws of any state to the extent such
          laws
          are applicable to the Shares represented by the certificate with such
          legend.

         

        (d) Adequate
          Knowledge; No
          Reliance Upon Representations.

         

        (i)           
          The Employee acknowledges and confirms that he has been given a reasonable
          opportunity to review all documents, books, records and materials of the
          Company
          pertaining to the Shares, has been supplied with all additional information
          concerning the Company and the Shares that has been requested, has had
          a
          reasonable opportunity to ask questions of and receive answers from the
          Company
          or its authorized representatives concerning the Shares and that all questions
          have been answered to the full satisfaction of Employee.

         

        (ii)           
          The Employee has received no representations, written or oral, from the
          Company
          or its officers, directors, employees, attorneys or agents other than those
          contained in this Agreement. In making the decision to receive the Shares
          as a
          portion of the Base Salary, the Employee has relied solely upon his review
          of
          the Company’s books and records, this Agreement, the Purchase Agreement and
          independent investigations made by him.

         

        12. Miscellaneous.

         

        (a) Severability.
          In the
          event that a court of competent jurisdiction determines that any portion
          of this
          Agreement is in violation of any statute or public policy, then only the
          portions of this Agreement which violate such statute or public policy
          shall be
          stricken.  All portions of this Agreement which do not violate any
          statute or public policy shall continue in full force and
          effect.  Further, any court order striking any portion of this
          Agreement shall modify the stricken terms to give as much effect as possible
          to
          the intentions of the parties under this Agreement.

         

        (b) Notices.  All
          notices, demands, and other communications provided for hereunder shall
          be in
          writing (including facsimile or similar transmission) and mailed (by U.S.
          certified mail, return receipt requested, postage prepaid), sent, or delivered
          (including by way of overnight courier service), (i) if to the Company,
          to
          Cognigen Networks, Inc., 1559 North Technology Way, Orem, Utah, Attn: Bob
          Bench,
          and in the case of facsimile transmission, to facsimile number (801) 705-9372;
          (ii) if to the Employee, to the address set forth opposite the Employee’s name
          on the signature page, and in the case of facsimile transmission, to the
          facsimile number set forth opposite the Employee’s name on the signature page
          or, as to each party, to such other person and/or 

         

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

           

          at
            such
            other address or number as shall be designated by such party in a written
            notice
            to the other party.  All such notices, demands, and communications, if
            mailed, shall be effective upon the earlier of (1) actual receipt by
            the
            addressee, (2) the date shown on the return receipt of such mailing,
            or (3)
            three (3) days after deposit in the mail.  All such notices, demands,
            and communications, if not mailed, shall be effective upon the earlier
            of (A)
            actual receipt by the addressee, (B) with respect to facsimile and similar
            electronic transmission, the earlier of (x) the time that electronic
            confirmation of a successful transmission is received, or (y) the date
            of
            transmission, if a confirming copy of the transmission is also mailed
            as
            described above on the date of transmission, and (C) with respect to
            delivery by
            overnight courier service, the day after deposit with the courier service,
            if
            delivery on such day by such courier is confirmed with the courier or
            the
            recipient orally or in writing.

        

         

        (c) Governing
          Law.  This Agreement shall be governed by the laws of the State
          of Utah without regard to its conflict of law provisions, and all claims
          or
          disputes arising hereunder shall be subject to the jurisdiction of the
          state and
          federal courts in the State of Utah.

         

        (d) Successors
          and
          Assigns.  The rights and obligations of the Company under this
          Agreement shall inure to the benefit of and shall be binding upon the successors
          and assigns of the Company.  This Agreement is for the unique personal
          services of the Employee, and the Employee shall not be entitled to assign
          any
          of Employee’s rights or obligations hereunder.

         

        (e) Entire
          Agreement;
          Amendment.  This Agreement constitutes the entire agreement and
          understanding between the parties with respect to the subject matter hereof,
          and
          supersedes all prior agreements and understandings with respect
          thereto.  This Agreement can be amended or modified only in a writing
          signed by the Employee and the Company.

         

        (f) No
          Waiver.  No waiver by either party at any time of any breach by
          the other party of, or compliance with, any condition or provision of this
          Agreement to be performed by the other party shall be deemed a waiver of
          similar
          or dissimilar provisions or conditions at the same time or any prior or
          subsequent time.

         

        (g) Headings.  The
          headings herein contained are for reference only and shall not affect the
          meaning or interpretation of any provision of this Agreement.

         

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

         

        (i) Attorneys’
          Fees.  In the event of any action at law, equity, or under this
          Agreement to enforce or interpret the terms of this Agreement, the prevailing
          party shall be entitled to reasonable attorneys’ fees and court costs in
          addition to any other relief to which such party may be entitled.

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        

         

        (j) Section
          409A of the Internal
          Revenue Code.  To the extent any payments under this
          Agreement are subject to the provisions of Section 409A of the Internal
          Revenue
          Code (the “Code”), it
          is
          intended that the Agreement will comply fully with and meet all the requirements
          of Code Section 409A. 

         

        

         

        (Remainder
          of Page Intentionally Left Blank)

         

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties have executed this Agreement as of the Effective
          Date.

        

         

        THE
          COMPANY:

         

        COGNIGEN
          NETWORKS, INC.

         

        
______________________________

        By: ________________________________                                                               
          

        Its: ________________________________                                                               
          

         

        

         

        THE
          EMPLOYEE:

         

        

         

        ____________________________________

                Patrick
          Oborn

         

        
          	
                   

                	
                  Address:

                	
                  12401
                    South 450 East 

                

        

        
          	
                   

                	
                  Suite
                    D-1 

                

                        Draper,
          Utah
          84062

        

         

        Facsimile
          Number: 801-407-1603

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        SCHEDULE
          A

         

        LIST
          OF
          PRIOR INVENTIONS

         

        AND
          ORIGINAL WORKS OF AUTHORSHIP

         

        Title                                                      
          Brief
          Description  Identifying
          Number

        

        NONE

        

        

        
          
            
            

          

          
            17The Dixie Group, Inc.

EXHIBIT 10.1

SUMMARY DESCRIPTION OF THE DIXIE GROUP, INC.

2008 ANNUAL INCENTIVE PLAN

The following is a description of the Company’s 2008 Incentive Plan (“Plan”) for its executive officers (including all individuals who are “named executive officers” for purposes of the Summary Compensation Table disclosures required in the Company’s annual Proxy Statement).

Cash Incentive Awards

For the CEO and all executive officers whose responsibilities are primarily related to corporate-level administration, the Cash Incentive Award component provides each participant with the opportunity to earn a cash incentive ranging from 10% to 75% of such participant’s base salary.  For executive officers in this category, 70% of the amount of the Cash Incentive Award is determined based on the achievement of specified levels of annual earnings before interest and taxes (“EBIT”) for the Company’s business units, as adjusted for unusual items and 30% of the amount is determined based on the achievement of specified levels of the Company’s consolidated annual EBIT, as adjusted for unusual items.  The committee may reduce the amount of any award by up to 30% of the amount otherwise earned based on the participant’s failure to achieve individual performance goals set by the Committee.

For executive officers whose responsibilities are primarily related to one of the Company’s business units, the Cash Incentive Award component provides each participant with the opportunity to earn a cash incentive ranging from 10% to 75% of such participant’s base salary.  For executive officers in this category, 70% of the amount of the Cash Incentive Award is determined based on the achievement of specified levels of their annual business unit EBIT, as adjusted for unusual items and 30% of the amount is determined based on the achievement of specified levels of annual EBIT of the Company’s other business units and the Company’s consolidated EBIT, as adjusted for unusual items.  The Committee may reduce the amount of any award by up to 30% of the amount otherwise earned based on failure of the participant to achieve individual performance goals set by the Compensation Committee.

Incentive Awards earned under the Plan will be based on the participant’s base salary as established by the Compensation Committee, and will be paid to participants in cash on or prior to March 15, 2009; provided, that the executive must be employed by the Company at the time of payment of the award.

Primary Long-Term Incentive Awards and Career Shares

A Primary Long-Term Incentive Award will be made in restricted shares to each executive officer, the value of which will be equal to 35% of the executive’s base salary plus any Cash Incentive Award paid for such year.  Career Shares will be awarded to each executive officer as an award of restricted stock valued at 20% of such officer’s base salary.  Such awards will be valued based on the market price of the Company’s 

common stock at the time of grant of the award.

Primary Long-Term Incentive Awards will vest over 3 years, and career shares will vest when the participant becomes (i) qualified to retire from the Company and (ii) has retained the career shares for 24 months following the grant date, subject to accelerated vesting or forfeiture as described below.  For any participant who becomes age 60 (or any participant who is already age 60 at the time of an award) restricted shares will vest equally over the stated vesting or retention period (three years in the case of Primary Long-Term Incentive awards and two years in the case of Career Shares awards; provided, that in no case will such awards be issued later than two and one half months following the year in which such awards vests or are no longer subject to substantial risk of forfeiture.

Special Conditions to Awards

The Primary Long-Term Incentive Awards and Career Share awards will only be made if the Company is profitable.  Death, disability or a change in control of the Company will cause immediate vesting of all restricted stock issued as Career Shares and as Primary Long-Term Incentive share awards.  Termination without cause will result in immediate vesting of all Career Share Awards, and acceleration of vesting of Primary Long-Term Incentive Share Awards to the extent such shares have been expensed by the Company. Voluntary termination of employment prior to retirement, or termination of employment for cause will result in the immediate forfeiture of all unvested awards under the Plan.  Upon an executive’s retirement vesting will accelerate to the extent that the Company has recognized compensation expense related to the shares.

Compensation Committee Oversight of Payments

The Compensation Committee has the authority to review and certify the achievement of the performance goals and to administer and interpret the Incentive Compensation Plan.  As set forth above, any award to a participant for 2008 may be reduced, but not increased, by the Compensation Committee in its sole discretion based on individual performance criteria.

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