Document:

EXHIBIT 10.1

                          INDEPENDENT AUDITOR'S CONSENT

         We consent to the use of our reports included herein and to the
reference to our firm under the heading "Statement by Experts" in the
registration statement.

KPMG
Adelaide, Australia

August 21, 2003EXHIBIT 10.1

                          KNAISCH EMPLOYMENT AGREEMENT

         This AGREEMENT (the "Agreement") is made as of the date signed (the
"Effective Date"), by and between Front Porch Digital, Inc., a Nevada
corporation with its headquarters located in Mt. Laurel, New Jersey, (the
"Employer"), and Michael C. Knaisch (the "Executive"). In consideration of the
mutual covenants contained in this Agreement, the Employer and the Executive
agree as follows:

         1. EMPLOYMENT. The Employer agrees to employ the Executive and the
Executive agrees to be employed by the Employer on the terms and conditions set
forth in this Agreement.

         2. CAPACITY; LOCATION. The Executive shall serve the Employer as Chief
Executive Officer and as a member of the Employer's Board of Directors for as
long as he is employed as the Chief Executive Officer. In his capacity of Chief
Executive Officer, Executive will report to the Board of Directors, and shall be
responsible for all strategic and operational matters relating to the Employer's
overall business requirements subject to the direction of the Board of
Directors. In such capacity, the Executive shall perform such services and
duties in connection with the business, affairs and operations of the Employer
as may be assigned or delegated to the Executive from time to time by or under
the authority of the Board of Directors. Executive's employment with Employer
will be based in Employer's Colorado offices; PROVIDED, that Employee may be
required from time to time to travel in connection with Employer's business
needs.

         3. TERM. Unless earlier terminated as provided in this Agreement, the
term of the Executive's employment under this Agreement shall be for a period of
one (1) year beginning on the date hereon and automatically renewed a year
later.

         4. COMPENSATION AND BENEFITS. The regular compensation and benefits
payable to the Executive under this Agreement shall be as follows:

               (a) BASE SALARY. For all services rendered by the Executive under
         this Agreement, the Employer shall pay the Executive a base salary (the
         "Salary") at the annual rate of Two Hundred Thousand Dollars
         ($200,000.00), subject to increase from time to time at the discretion
         of the Compensation Committee of the Board of Directors (the
         "Compensation Committee"). The Salary shall be payable in periodic
         installments in accordance with the Employer's usual practice for its
         senior executives.

               (b) BONUS. For the year ending December 31, 2003 Executive shall
         be eligible for an annual bonus of up to $100,000.00 based upon
         performance at 100% of plan. If performance exceeds plan by 10% or
         more, the Executive is eligible for an additional bonus payment.
         Performance is evaluated by the Board and any non-guaranteed bonus is
         at their discretion. Thereafter, Executive shall be eligible to
         participate in an incentive program established by the Compensation
         Committee, with such terms as may be established in the sole discretion
         of the Compensation Committee.

<PAGE>

               (c) REGULAR BENEFITS. The Executive shall be reimbursed for an
         individual health insurance policy to a maximum of Seven Hundred, Fifty
         Dollars ($750.00) per month or shall be entitled to health insurance
         benefits from Employer, and shall also be entitled to participate in
         any employee benefit plans, life insurance plans, disability income
         plans, retirement plans, expense reimbursement plans and other benefit
         plans which the Employer may from time to time have in effect for all
         or most of its executive management employees. Such participation shall
         be subject to the terms of the applicable plan documents, generally
         applicable policies of the Employer, applicable law and the discretion
         of the Board of Directors, the Compensation Committee or any
         administrative or other committee provided for in or contemplated by
         any such plan. Except with respect to the aforementioned health
         insurance benefits, nothing contained in this Agreement shall be
         construed to create any obligation on the part of the Employer to
         establish any such plan or to maintain the effectiveness of any such
         plan that may be in effect from time to time.

               (d) ADDITIONAL LIFE INSURANCE: The Company will provide
         additional term life insurance in the amount of three times the
         Executive's salary.

               (e) VACATION. The Executive shall be entitled to four weeks of
         vacation, such vacation time to accrue on a per-pay-period basis.

               (f) CAR ALLOWANCE: The Executive shall be entitled to a car
         allowance of $750.00 per month for the life of the contract term.

               (g) TAXATION OF PAYMENTS AND BENEFITS. The Employer shall
         undertake to make deductions, withholdings and tax reports with respect
         to payments and benefits under this Agreement to the extent that it
         reasonably and in good faith believes that it is required to make such
         deductions, withholdings and tax reports. Payments under this Agreement
         shall be in amounts net of any such deductions or withholdings. Nothing
         in this Agreement shall be construed to require the Employer to make
         any payments to compensate the Executive for any adverse tax effect
         associated with any payments or benefits or for any deduction or
         withholding from any payment or benefit.

               (h) EXPENSES. The Employer shall reimburse the Executive for all
         reasonable and necessary business related travel expenses incurred or
         paid by the Executive in performing his duties under this Agreement and
         which are consistent with applicable policies of the Employer. All
         payments for reimbursement of such expenses shall be made upon
         presentation by the Executive of expense statements or vouchers and
         such other supporting information as the Employer may from time to time
         reasonably request.

               (i) STOCK OPTIONS. Executive shall also be eligible for
         participation in Employer's Stock Option Plan subject to approval by
         the Board of Directors.

               (j) EXCLUSIVITY OF SALARY AND BENEFITS. The Executive shall not
         be entitled to any payments or benefits other than those provided under
         this Agreement.

                                       2
<PAGE>

         5. EXTENT OF SERVICE. During the Executive's employment under this
Agreement, the Executive shall devote the Executive's full business time, best
efforts and business judgment, skill and knowledge to the advancement of the
Employer's interests and to the discharge of the Executive's duties and
responsibilities under this Agreement. The Executive shall not engage in any
other business activity, except as may be approved by the Board of Directors;
PROVIDED, that nothing in this Agreement shall be construed as preventing the
Executive from:

               (a) investing the Executive's assets in any company or other
         entity in a manner not prohibited by Section 7(d) and in such form or
         manner as shall not require any material activities on the Executive's
         part in connection with the operations or affairs of the companies or
         other entities in which such investments are made; and

               (b) engaging in religious, charitable or other community or
         non-profit activities that do not impair the Executive's ability to
         fulfill the Executive's duties and responsibilities under this
         Agreement.

               (c) taking no more than two Board positions with other companies
         with prior approval of the Front Porch Digital Board of Directors.

         6. TERMINATION AND TERMINATION BENEFITS. Notwithstanding the provisions
of Section 3, the Executive's employment under this Agreement shall terminate
under the following circumstances set forth in this Section 6.

               (a) TERMINATION BY THE EMPLOYER FOR CAUSE. The Executive's
         employment under this Agreement may be terminated for "Cause" without
         further liability on the part of the Employer, effective immediately
         upon a vote of the Board of Directors and written notice to the
         Executive. Only the following shall constitute "Cause" for such
         termination:

                           (i) dishonest or fraudulent statements or acts of the
                  Executive with respect to the Employer or any affiliate of the
                  Employer;

                           (ii) the Executive's conviction of, or entry of a
                  plea of guilty or nolo contendere for, (A) a felony or (B) any
                  misdemeanor (excluding minor traffic violations) involving
                  deceit, dishonesty or fraud;

                           (iii) gross negligence, willful misconduct or
                  insubordination of the Executive with respect to the Employer
                  or any affiliate of the Employer; or

                           (iv) material breach by the Executive of any of the
                  Executive's obligations under this Agreement, or any other
                  agreement to which Executive and Employer are now or hereafter
                  a party to.

               (b) TERMINATION BY THE EXECUTIVE. The Executive may terminate the
         Executive's employment under this Agreement by written notice to
         Employer at least thirty (30) days prior to such termination.

                                       3
<PAGE>

               (c) TERMINATION BY THE EMPLOYER WITHOUT CAUSE. Subject to the
         payment of Termination Benefits pursuant to Section 6(d), the
         Executive's employment under this Agreement may be terminated by the
         Employer without Cause upon written notice to the Executive (a
         termination "Without Cause").

               (d) CERTAIN TERMINATION BENEFITS. Unless otherwise specifically
         provided in this Agreement or otherwise required by law, all
         compensation and benefits payable to the Executive under this Agreement
         shall terminate on the date of termination of the Executive's
         employment under this Agreement. Notwithstanding the foregoing, in the
         event of termination of the Executive's employment with the Employer
         Without Cause pursuant to Section 6(c) above, the Employer shall
         provide to the Executive the following termination benefits
         ("Termination Benefits"):

                           (i) payment of the Executive's Base Salary at the
                  rate then in effect pursuant to Section 4(a) for the period
                  from the date of termination until the date that is twelve
                  (12) months after the date of termination or until Executive
                  is employed elsewhere, whichever first occurs. Base Salary
                  payments will be made on a monthly basis.

                           (ii) continuation of group health plan benefits to
                  the extent authorized by and consistent with 29 U.S.C. ss.
                  1161 ET SEQ. (commonly known as "COBRA"), with the cost of the
                  regular premium for such benefits shared in the same relative
                  proportion by the Employer and the Executive as in effect on
                  the date of termination for twelve (12) months and at a cost
                  of 102% of premium provided under COBRA, for up to an
                  additional six (6) months. If Executive does not enroll in the
                  group health plan, but has an individual health policy
                  instead, the monthly premium will be paid for up to twelve
                  (12) months or the date the Executive is employed elsewhere,
                  whichever first occurs.

                           The Termination Benefits set forth in subclause (i)
         above shall be paid in twelve (12) monthly installments from the date
         of termination, and the Termination Benefits set forth in subclause
         (ii) above shall continue effective until twelve (12) months after the
         date of termination or the date the Executive is employed elsewhere,
         whichever first occurs. If the termination is the result of a change of
         control, the base salary will be paid in full upon termination, not
         made payable on a monthly basis.

                           Notwithstanding the foregoing, nothing in this
         Section 6(d) shall be construed to affect the Executive's right to
         receive COBRA continuation (if enrolled in the group health plan)
         entirely at the Executive's own cost to the extent that the Executive
         may continue to be entitled to COBRA continuation after the Executive's
         right to cost sharing under Section 6(d)(ii) ceases.

               (e) DISABILITY. If the Executive shall be disabled so as to be
         unable to perform the essential functions of the Executive's then
         existing position or positions under this Agreement with reasonable
         accommodation, the Board may remove the Executive from any
         responsibilities and/or reassign the Executive to another position with
         the Employer

                                       4
<PAGE>

         during the period of such disability. Notwithstanding any such removal
         or reassignment, the Executive shall continue to receive the
         Executive's full Salary (less any disability pay or sick pay benefits
         to which the Executive may be entitled under the Employer's policies)
         and benefits under Section 4 of this Agreement (except to the extent
         that the Executive may be ineligible for one or more such benefits
         under applicable plan terms) for a period of time equal to nine (9)
         months. If any question shall arise as to whether during any period the
         Executive is disabled so as to be unable to perform the essential
         functions of the Executive's then existing position or positions with
         reasonable accommodation, the Executive may, and at the request of the
         Employer shall, submit to the Employer a certification in reasonable
         detail by a physician selected by the Employer to whom the Executive or
         the Executive's guardian has no reasonable objection as to whether the
         Executive is so disabled or how long such disability is expected to
         continue, and such certification shall for the purposes of this
         Agreement be conclusive of the issue. The Executive shall cooperate
         with any reasonable request of the physician in connection with such
         certification. If such question shall arise and the Executive shall
         fail to submit such certification, the Employer's determination of such
         issue shall be binding on the Executive. Nothing in this Section 6(e)
         shall be construed to waive the Executive's rights, if any, under
         existing law including, without limitation, the Family and Medical
         Leave Act of 1993, 29 U.S.C. ss.2601 ET SEQ. and the Americans with
         Disabilities Act, 42 U.S.C. ss.12101 ET SEQ.

         7. CONFIDENTIAL INFORMATION, NONCOMPETITION AND COOPERATION.

               (a) CONFIDENTIAL INFORMATION. As used in this Agreement,
         "Confidential Information" means information belonging to the Employer
         which is of value to the Employer in the course of conducting its
         business and the disclosure of which could result in a competitive or
         other disadvantage to the Employer. Confidential Information includes,
         without limitation, financial information, reports, and forecasts;
         inventions, improvements and other intellectual property; trade
         secrets; know-how; designs, processes or formulae; software; market or
         sales information or plans; customer lists; and business plans,
         prospects and opportunities (such as possible acquisitions or
         dispositions of businesses or facilities) which have been discussed or
         considered by the management of the Employer. Confidential Information
         includes information developed by the Executive in the course of the
         Executive's employment by the Employer, as well as other information to
         which the Executive may have access in connection with the Executive's
         employment. Confidential Information also includes the confidential
         information of others with which the Employer has a business
         relationship. Notwithstanding the foregoing, Confidential Information
         does not include information in the public domain, unless due to breach
         of the Executive's duties under Section 7(b).

               (b) CONFIDENTIALITY. The Executive understands and agrees that
         the Executive's employment creates a relationship of confidence and
         trust between the Executive and the Employer with respect to all
         Confidential Information. At all times, both during the Executive's
         employment with the Employer and after its termination, the Executive
         will keep in confidence and trust all such Confidential Information,
         and will not use or disclose any such Confidential Information without
         the written consent of the

                                       5
<PAGE>

         Employer, except as may be necessary in the ordinary course of
         performing the Executive's duties to the Employer.

               (c) DOCUMENTS, RECORDS, ETC. All documents, records, data,
         apparatus, equipment and other physical property, whether or not
         pertaining to Confidential Information, which are furnished to the
         Executive by the Employer or are produced by the Executive in
         connection with the Executive's employment will be and remain the sole
         property of the Employer. The Executive will return to the Employer all
         such materials and property as and when requested by the Employer. In
         any event, the Executive will return all such materials and property
         immediately upon termination of the Executive's employment for any
         reason. The Executive will not retain with the Executive any such
         material or property or any copies thereof after such termination.

               (d) NONCOMPETITION AND NONSOLICITATION. Without the prior written
         consent of the Board of Directors, during the period that Executive is
         employed by Employer and for one (1) year thereafter, the Executive (i)
         will not, directly or indirectly, whether as owner, partner,
         shareholder, consultant, agent, employee, co-venturer or otherwise,
         engage, participate, assist or invest in any Competing Business (as
         hereinafter defined); and for two (2) years thereafter will refrain
         from directly or indirectly employing, attempting to employ, recruiting
         or otherwise soliciting, inducing or influencing any person to leave
         employment with the Employer; and (iii) will refrain from soliciting or
         encouraging any customer or supplier to terminate or otherwise modify
         adversely its business relationship with the Employer. The Executive
         understands that the restrictions set forth in this Section 7(d) are
         intended to protect the Employer's interest in its Confidential
         Information and established employee, customer and supplier
         relationships and goodwill, and agrees that such restrictions are
         reasonable and appropriate for this purpose. For purposes of this
         Agreement, the term "Competing Business" shall mean any business that
         provides or intends to provide the same or similar types of services or
         products as those provided or targeted by Employer or any of its
         subsidiaries in any geographic area then served or targeted by Employer
         or any of its subsidiaries. Notwithstanding the foregoing, the
         Executive may own up to two percent (2%) of the outstanding stock of a
         publicly held corporation.

               (e) THIRD-PARTY AGREEMENTS AND RIGHTS. The Executive hereby
         confirms that the Executive is not bound by the terms of any agreement
         with any previous employer or other party which restricts in any way
         the Executive's use or disclosure of information or the Executive's
         engagement in any business. The Executive represents to the Employer
         that the Executive's execution of this Agreement, the Executive's
         employment with the Employer and the performance of the Executive's
         proposed duties for the Employer will not violate any obligations the
         Executive may have to any such previous employer or other party. In the
         Executive's work for the Employer, the Executive will not disclose or
         make use of any information in violation of any agreements with or
         rights of any such previous employer or other party, and the Executive
         will not bring to the premises of the Employer any copies or other
         tangible embodiments of non-public information belonging to or obtained
         from any such previous employment or other party.

                                       6
<PAGE>

               (f) LITIGATION AND REGULATORY COOPERATION. During and after the
         Executive's employment, the Executive shall cooperate fully with the
         Employer in the defense or prosecution of any claims or actions now in
         existence or which may be brought in the future against or on behalf of
         the Employer which relate to events or occurrences that transpired
         while the Executive was employed by the Employer. The Executive's full
         cooperation in connection with such claims or actions shall include,
         but not be limited to, being available to meet with counsel to prepare
         for discovery or trial and to act as a witness on behalf of the
         Employer at mutually convenient times. During and after the Executive's
         employment, the Executive also shall cooperate fully with the Employer
         in connection with any investigation or review of any federal, state or
         local regulatory authority as any such investigation or review relates
         to events or occurrences that transpired while the Executive was
         employed by the Employer. The Employer shall reimburse the Executive
         for any reasonable out-of-pocket expenses incurred in connection with
         the Executive's performance of obligations pursuant to this Section
         7(f) and shall pay the Executive for his time at his annual salary rate
         in effect at the time of the termination of his employment.

               (g) INJUNCTION. The Executive agrees that it would be difficult
         to measure any damages caused to the Employer which might result from
         any breach by the Executive of the promises set forth in this Section
         7, and that in any event money damages would be an inadequate remedy
         for any such breach. Accordingly, subject to Section 8 of this
         Agreement, the Executive agrees that if the Executive breaches, or
         proposes to breach, any portion of this Agreement, the Employer shall
         be entitled, in addition to all other remedies that it may have, to an
         injunction or other appropriate equitable relief to restrain any such
         breach without showing or proving any actual damage to the Employer.

         8. ARBITRATION OF DISPUTES. Any controversy or claim arising out of or
relating to this Agreement or the breach thereof or otherwise arising out of the
Executive's employment or the termination of that employment (including, without
limitation, any claims of unlawful employment discrimination whether based on
age or otherwise) shall, to the fullest extent permitted by law, be settled by
arbitration in any forum and form agreed upon by the parties or, in the absence
of such an agreement, under the auspices of the American Arbitration Association
("AAA") in Denver, Colorado in accordance with the Employment Dispute Resolution
Rules of the AAA, including, but not limited to, the rules and procedures
applicable to the selection of arbitrators. In the event that any person or
entity other than the Executive or the Employer may be a party with regard to
any such controversy or claim, such controversy or claim shall be submitted to
arbitration subject to such other person or entity's agreement. Judgment upon
the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. This Section 8 shall be specifically enforceable.
Notwithstanding the foregoing, this Section 8 shall not preclude either party
from pursuing a court action for the sole purpose of obtaining a temporary
restraining order or a preliminary injunction in circumstances in which such
relief is appropriate; PROVIDED, that any other relief shall be pursued through
an arbitration proceeding pursuant to this Section 8.

         9. CONSENT TO JURISDICTION. To the extent that any court action is
permitted consistent with or to enforce Section 8 of this Agreement, the parties
hereby consent to the jurisdiction of

                                       7
<PAGE>

the courts of the State of Colorado. Accordingly, with respect to any such court
action, the Executive (a) submits to the personal jurisdiction of such courts;
(b) consents to service of process; and (c) waives any other requirement
(whether imposed by statute, rule of court, or otherwise) with respect to
personal jurisdiction or service of process.

         10. INTEGRATION. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and supersedes all
prior agreements between the parties with respect to any related subject matter.

         11. ASSIGNMENT; SUCCESSORS AND ASSIGNS, ETC. Neither the Employer nor
the Executive may make any assignment of this Agreement or any interest herein,
by operation of law or otherwise, without the prior written consent of the other
party; PROVIDED, that the Employer may assign its rights under this Agreement
without the consent of the Executive in the event that the Employer shall effect
a reorganization, consolidate with or merge into any other corporation,
partnership, organization or other entity, or transfer all or substantially all
of its properties or assets to any other corporation, partnership, organization
or other entity. This Agreement shall inure to the benefit of and be binding
upon the Employer and the Executive, their respective successors, executors,
administrators, heirs and permitted assigns.

         12. ENFORCEABILITY. If any portion or provision of this Agreement
(including, without limitation, any portion or provision of any section of this
Agreement) shall to any extent be declared illegal or unenforceable by a court
of competent jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby,
and each portion and provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.

         13. WAIVER. No waiver of any provision hereof shall be effective unless
made in writing and signed by the waiving party. The failure of any party to
require the performance of any term or obligation of this Agreement, or the
waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.

         14. NOTICES. Any notices, requests, demands and other communications
provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by a nationally recognized overnight courier service or by
registered or certified mail, postage prepaid, return receipt requested, to the
Executive at the last address the Executive has filed in writing with the
Employer or, in the case of the Employer, at 1140 Pearl Street, Boulder, CO
80302, ATTN: Board of Directors, and shall be effective on the date of delivery
in person or by courier or three (3) days after the date mailed.

         15. AMENDMENT. This Agreement may be amended or modified only by a
written instrument signed by the Executive and by a duly authorized
representative of the Employer.

                                       8
<PAGE>

         16. GOVERNING LAW. This is a Colorado contract and shall be construed
under and be governed in all respects by the laws of the State of Colorado,
without giving effect to the conflict of laws principles of such State.

         17. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same
document.

         IN WITNESS WHEREOF, this Agreement has been executed by the Employer
and by the Executive as of the Effective Date.

                                            FRONT PORCH DIGITAL, INC.:

                                            By: /s/ THOMAS P. SWEENEY, III
                                                -----------------------------
                                            Name:  Thomas P. Sweeney, III
                                            Title: Board of Directors

                                            EXECUTIVE:

                                            /s/ MICHAEL C. KNAISCH
                                            ---------------------------------
                                            Michael C. Knaisch

                                            June 1, 2003
                                            ---------------------------------
                                            Date

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]