Document:

EXHIBIT 10.28
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FUNCTIONAL MANAGEMENT TEAM  EMPLOYMENT AGREEMENT

THIS AGREEMENT is made between EXTENDED SYSTEMS OF IDAHO, INCORPORATED (ESI) and
Don Baumgartner (EMPLOYEE) for the employment of EMPLOYEE by ESI.

IT IS AGREED BETWEEN THE PARTIES:

1.   EMPLOYMENT: ESI hereby hires EMPLOYEE and EMPLOYEE accepts employment with
     ESI as Vice President of Worldwide Marketing.

2.   TERMS OF EMPLOYMENT: This Agreement shall commence the 18th day of
     December, 2001 and shall continue until terminated by either party pursuant
     to paragraph five.

3.   COMPENSATION: The EMPLOYEE shall receive as compensation for his/her
     services the amount of $12,530 per month plus all employee benefits as set
     forth in the current issue of the Extended Systems Employee Handbook.

4.   DUTIES OF EMPLOYEE: EMPLOYEE shall have the duties and authority as set
     forth in the job description.

5.   VACATION: EMPLOYEE shall accumulate paid vacation as set forth in Extended
     Systems Time-Off Policy.

6.   TRAVEL EXPENSES: EMPLOYEE shall be reimbursed for all authorized travel and
     lodging expenses.

7.   FRINGE BENEFITS: Fringe benefits shall be provided by ESI as set forth in
     the Extended Systems Employee Handbook which is located on the HR Intranet.
     I understand that I am responsible for familiarizing myself with the
     contents of the handbook. I understand that the contents in the Employee
     Handbook are subject to change at Extended Systems' discretion and do not
     create any contractual commitments by the Company. /s/ DJB (Employee
     Initials)

8.   DRUG AND ALCOHOL POLICY: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Drug and Alcohol Policy. Receipt of Drug and Alcohol
     Policy is hereby acknowledged. /s/ DJB (Employee Initials). -------

9.   NON-DISCLOSURE AGREEMENT: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Non-Disclosure Agreement.

10.  INSIDER TRADING POLICY: EMPLOYEE agrees to abide by the terms of Extended
     Systems' Insider Trading Policy.

11.  NOTICE OF TERMINATION: With or without good cause either party may
     terminate this agreement by giving fourteen (14) days written notice to the
     other party. Termination of this Agreement shall not terminate the
     NONDISCLOSURE AGREEMENT between the parties.

12.  SEVERANCE PAY: In the event EMPLOYEE is terminated without cause, EMPLOYEE
     shall be entitled to six (6) months of pay, at EMPLOYEE'S current base
     salary, plus $2,000.00 in lieu of fringe benefits, and payout of accrued
     vacation. In order to receive such salary and fringe benefits payment,
     EMPLOYEE must execute the then current company "Release of All Employment
     Claims." Participation in all stock option plans, stock purchase plans, and
     other company personnel benefits shall cease on the EMPLOYEE's date of
     termination, subject to the specific provisions of option agreements or
     plans that may extend EMPLOYEE's rights beyond date of termination. If
     EMPLOYEE is removed from the Functional Management Team (FMT) into another
     position within ESI, the EMPLOYEE shall only be entitled to receive a pro
     rata severance payment. For example, if EMPLOYEE is removed from the
     Functional Management Team into another position, and 3-months later is
     terminated without cause from the new position, EMPLOYEE would be entitled
     to receive a pro-rata amount of the 6-months termination pay and fringe
     benefits payment (3-months base salary and $1,000.00 fringe benefits
     payment). As another example, if EMPLOYEE is in the new position for
     9-months and is then terminated, no termination payment would be due under
     this agreement. In the event of a change of control of the company or if
     the company is acquired by another company, person or entity, the six (6)
     month base salary termination payment shall be increased to twelve (12)
     months. EMPLOYEE is responsible for any tax consequences triggered by
     severance payment or a change in control.

DATED this 17th day of January, 2002.

/s/ Donald J. Baumgartner                 /s/ Steven D. Simpson
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FUNCTIONAL MANAGEMENT TEAM EMPLOYEE       EXTENDED SYSTEMSEXHIBIT 10.29
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FUNCTIONAL MANAGEMENT TEAM  EMPLOYMENT AGREEMENT

THIS AGREEMENT is made between EXTENDED SYSTEMS OF IDAHO, INCORPORATED (ESI) and
Kerrin Pease (EMPLOYEE) for the employment of EMPLOYEE by ESI.

IT IS AGREED BETWEEN THE PARTIES:

1.   EMPLOYMENT: ESI hereby hires EMPLOYEE and EMPLOYEE accepts employment with
     ESI as Vice President of Worldwide R&D.

2.   TERMS OF EMPLOYMENT: This Agreement shall commence the 19th day of
     December, 2001 and shall continue until terminated by either party pursuant
     to paragraph five.

3.   COMPENSATION: The EMPLOYEE shall receive as compensation for his/her
     services the amount of $15,000 per month plus all employee benefits as set
     forth in the current issue of the Extended Systems Employee Handbook.

4.   DUTIES OF EMPLOYEE: EMPLOYEE shall have the duties and authority as set
     forth in the job description.

5.   VACATION: EMPLOYEE shall accumulate paid vacation as set forth in Extended
     Systems Time-Off Policy.

6.   TRAVEL EXPENSES: EMPLOYEE shall be reimbursed for all authorized travel and
     lodging expenses.

7.   FRINGE BENEFITS: Fringe benefits shall be provided by ESI as set forth in
     the Extended Systems Employee Handbook which is located on the HR Intranet.
     I understand that I am responsible for familiarizing myself with the
     contents of the handbook. I understand that the contents in the Employee
     Handbook are subject to change at Extended Systems' discretion and do not
     create any contractual commitments by the Company. /s/ KP (Employee
     Initials)

8.   DRUG AND ALCOHOL POLICY: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Drug and Alcohol Policy. Receipt of Drug and Alcohol
     Policy is hereby acknowledged. /s/ KP (Employee Initials).

9.   NON-DISCLOSURE AGREEMENT: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Non-Disclosure Agreement.

10.  INSIDER TRADING POLICY: EMPLOYEE agrees to abide by the terms of Extended
     Systems' Insider Trading Policy.

11.  NOTICE OF TERMINATION: With or without good cause either party may
     terminate this agreement by giving fourteen (14) days written notice to the
     other party. Termination of this Agreement shall not terminate the
     NONDISCLOSURE AGREEMENT between the parties.

12.  SEVERANCE PAY: In the event EMPLOYEE is terminated without cause, EMPLOYEE
     shall be entitled to six (6) months of pay, at EMPLOYEE'S current base
     salary, plus $2,000.00 in lieu of fringe benefits, and payout of accrued
     vacation. In order to receive such salary and fringe benefits payment,
     EMPLOYEE must execute the then current company "Release of All Employment
     Claims." Participation in all stock option plans, stock purchase plans, and
     other company personnel benefits shall cease on the EMPLOYEE's date of
     termination, subject to the specific provisions of option agreements or
     plans that may extend EMPLOYEE's rights beyond date of termination. If
     EMPLOYEE is removed from the Functional Management Team (FMT) into another
     position within ESI, the EMPLOYEE shall only be entitled to receive a pro
     rata severance payment. For example, if EMPLOYEE is removed from the
     Functional Management Team into another position, and 3-months later is
     terminated without cause from the new position, EMPLOYEE would be entitled
     to receive a pro-rata amount of the 6-months termination pay and fringe
     benefits payment (3-months base salary and $1,000.00 fringe benefits
     payment). As another example, if EMPLOYEE is in the new position for
     9-months and is then terminated, no termination payment would be due under
     this agreement. In the event of a change of control of the company or if
     the company is acquired by another company, person or entity, the six (6)
     month base salary termination payment shall be increased to twelve (12)
     months. EMPLOYEE is responsible for any tax consequences triggered by
     severance payment or a change in control.

DATED this 19th day of December, 2001.

/s/ Kerrin Pease                        /s/ Steven D. Simpson
-------------------------------------   ----------------------------------------
FUNCTIONAL MANAGEMENT TEAM EMPLOYEE     EXTENDED SYSTEMSQuitclaim, Release, and Assumption Agreement

QUITCLAIM, RELEASE AND ASSUMPTION AGREEMENT

This Quitclaim, Release and Assumption Agreement (this "Agreement") dated as
of December 6 , 2001, is among NATION ENERGY, INC., a Delaware corporation.
("Nation"), Suite 1320, 925 W. Georgia Street, Vancouver, BC V6C 3L2; VRD, INC.,
a Texas corporation ("VRD"), P.O. Box 469 Abilene, Texas 79604; and SAURUS RESOURCES
INCORPORATED, a   Texas  corporation ("Saurus"),
P.O. Box 373, Teton Village, Wyoming 80325.

RECITALS

A. Saurus and Nation are parties to an exploration agreement dated August 11,
1999, covering an oil and gas prospect in Sweetwater County, Wyoming (the "Exploration
Agreement")

B. Saurus, VRD and Nation are parties to a Joint Operation Agreement dated
December 1, 1999, naming Saurus as operator and VRD and Nation as non-operators
covering land in Sweetwater County (the "Operating Agreement"). The Operating
Agreement was entered into in furtherance of the Exploration Agreement.

C. Pursuant to the Exploration Agreement and the Operating Agreement and amending
and supplementing agreements, Saurus, VRD and Nation have participated in oil
and gas lease acquisitions and other oil and gas operations in Sweetwater County.

D. The oil and gas leasehold interests purchased and earned by or on behalf
of Nation in Sweetwater County have not been assigned to Nation. Saurus, VRD and
Nation disagree what oil and gas leasehold interests are due to Nation.

E. Saurus and VRD claim that Nation owes substantial amounts for operations
under the Operating Agreement and related activities. Nation disputes the amounts
claimed.

F. Saurus and VRD are affiliated companies.

G. Saurus, VRD and Nation have agreed to resolve all claims among them related
to operations in Sweetwater County as set forth in his Agreement.

In consideration of the mutual promises contained herein, the benefits to be
derived by each party hereunder and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Saurus, VRD and Nation
agree as follows:

AGREEMENT

1. Nation hereby assigns and quitclaims to VRD any and all right, title and
claim of Nation to any oil and gas lease or related agreement or contract covering
land in Sweetwater County obtained under the Exploration Agreement, the Operating
Agreement or any related agreement.

2. VRD hereby releases any claim VRD may have against Nation for unpaid obligations
of Nation due under the Exploration Agreement, the Operating Agreement or any
related agreement or for operations under such agreements. VRD further assumes
and agrees to assume responsibility for any unpaid obligations of Nation incurred
under the Exploration Agreement, the Operating Agreement or any related agreement
or for operations under such agreements owed to parties other than VRD.

3. Saurus hereby releases any claim Saurus may have against Nation for unpaid
obligations of Nation due under the Exploration Agreement, the Operating Agreement
or any related agreement or for operations under such agreements.

Executed as of the date first mentioned.

NATION ENERGY, INC.

By "Donald A. Sharpe"

President

VRD, Inc.

By "David R. Vletas" 

President

SAURUS RESOURCES INCORPORATED

By "David R. Vletas" 

President

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