Document:

Exhibit 10.22

 

SEPARATION AGREEMENT

 

This SEPARATION AGREEMENT (the “Agreement”) is made
this 13th day of May, 2008 by and between J. David Darnell, a
citizen and resident of the State of Texas (hereinafter referred to as “You” or
“you”), INTAC, a Nevada corporation with its principal place of business in
Atlanta, Georgia (“INTAC”), and HSW International, Inc., a Delaware
corporation with its principal place of business in Atlanta, Georgia (“HSWI”)
(INTAC and HSWI are referred to collectively herein as the “Company”).

 

1.             Termination of Employment.

 

a.     Termination Date.  Your employment with the Company and the
Executive Employment Agreement entered into by and between you and the INTAC on
June 11, 2002 (as amended or modified, the “Employment Agreement”) will
terminate effective July 31, 2008 (the “Termination Date”).  You acknowledge and agree that such
termination is as a result of mutual agreement of the Company and you, as
referenced in Section 5(a) of the Employment Agreement.  Such termination shall not affect those
provisions of the Employment Agreement which are intended to survive beyond
termination.  The Company will continue
to pay you your current base salary for all time worked, including any amounts
due you for unused vacation time, up to the Termination Date.

 

b.     Employee Benefits.   Except
as otherwise provided in this Agreement, as provided by the specific terms of a
benefit plan or as required by law, all of your employee benefits with the
Company will terminate upon the Termination Date.

 

2.             Severance Pay.  If you sign this Agreement, and if, on the
Termination Date, you sign the Release Agreement attached hereto and fully
incorporated by reference as Exhibit A (the “Release”) and do not
revoke it, you will receive from the Company a lump sum amount, payable in
cash, of  Two-Hundred Thousand Dollars
($200,000) (“Severance Pay”).  You hereby
acknowledge and agree that but for your execution of this Agreement and Release
attached hereto as Exhibit A, you would not be entitled to receive
the Severance Pay as set out herein. This Severance Pay will be paid less any
withholdings required by law or authorized by you.  The Severance Pay will be payable to you in
accordance with the Company’s payroll practices and procedures on the Company’s
next regular payday after the expiration of the Revocation Period (as defined
in Section 4 of the Release.)

 

3.             Equity Grants.  The stock options held by you and exercisable
for a total of 150,000 shares of HSWI common stock (“Employee Stock Options”)
are hereby automatically (and without further condition or requirement) amended
such that the expiration date applicable to such Employee Stock Options is and
shall be irrevocably extended until ten (10) years from the date of
original grant for those Employee Stock Options.   To the extent these Employee Stock Options
were incentive stock options, this Section renders these options
non-statutory stock options.  HSWI and
the Company hereby acknowledge and agree that the Employee Stock Options are
fully vested on the date 

 

 

hereof, shall be exercisable, upon the terms thereof, into shares of
HSWI common stock and such shares shall remain freely transferable by you under
HSWI’s S-8 or otherwise until such extended expiration date.

 

4.             Consulting Arrangement.  On the Termination Date, you agree to execute
the Consulting Agreement (the “Consulting Agreement”) attached hereto as Exhibit B
which provides for you to be a consultant for the Company for the time period
set forth under the Consulting Agreement (the “Consulting Period.”)

 

5.             Release of Claims. In
consideration of the Company paying you the Severance Pay, and as a condition
to you receiving the Severance Pay, you agree that (i) you have been given
a period of at least twenty-one (21) days to consider whether to execute the
Release attached hereto as Exhibit A, (ii) you will execute
this Release on the Termination Date, and (iii) you
will return the signed and dated copy of the Release to Bradley Zimmer at the
Company.  If you do
not sign the Release and return it to the Company in the manner set forth
herein, or if you sign the Release and then revoke it as set forth in Section 4
of the Release, you will not be entitled to the Severance Pay described in Section 2
of this Agreement.  Furthermore, your
refusal to sign the Release will constitute a material breach of this
Agreement.

 

6.             Section 409A.  This Agreement and the payments to be made
hereunder are compliant with Internal Revenue Code Section 409A, and you
shall not bear any responsibility for any tax or related charges under such Section 409A
as a result hereof.

 

7.             Indemnification  and  Advance  of  Expenses.  HSWI  hereby  reaffirms  its  obligations  of  indemnification  and  advancement  of  expenses  to  you,  as  set  forth  under  HSWI’s  Amended  and  Restated  Certificate  of  Incorporation,  Article  VII,  Sections  2  and  3,  and  HSWI’s  Second  Amended  and  Restated  Bylaws,  Article  IX,  all  of  which  expressly  survive  the  execution  and  delivery  hereof.

 

8.             Resignation as Director and
Officer.  By signing this Agreement, you
hereby resign (i) from your seat as member of the board of directors of
and (ii) from all positions as an officer of the Company, its parent
companies, affiliates, subsidiaries, divisions, and agents, and their
respective successors, assigns, heirs, executors and administrators, effective
as of the Termination Date.

 

9.             Return of Property. Following the
Consulting Period or earlier as deemed by the Company, you shall return all
property of the Company in your possession, including, without limitation, any
Company credit cards, Company-owned equipment, and all originals and any copies
of all disks, tapes, files, correspondence, data, notes and other documents
pertaining to the Company’s proprietary products, customers and business and
Proprietary Information as defined in the Employment Agreement.  Such property shall be in the same condition
as when provided to you, reasonable wear and tear excepted.  Your return of such property is an express
requirement of this Agreement and the Employment Agreement.

 

 

10.           Reaffirmation.  You hereby reaffirm and acknowledge your
continuing obligations under the Employment Agreement (which shall continue in
full force and effect in accordance with their terms notwithstanding the
termination of your employment) and that a breach of the Employment Agreement
will also constitute a breach of this present Agreement.

 

11.           No Disparagement.  You agree that you will not denigrate,
defame, disparage or cast aspersions upon the Company, the Company Parties (as
defined in the Release), their products, services, business and manner of doing
business, and that you will use your reasonable best efforts to prevent any
member of your immediate family from engaging in any such activity.  Upon inquiry from any third party, the
Company will release only your dates of employment and positions held, unless
you provide written authorization for the Company to release additional
information.

 

12.           Relief and Enforcement.  You
understand and agree that any breach of this Agreement by you will relieve the
Company of its obligation to continue paying you any then-unpaid Severance Pay
as set out in Section 2 above.  You also understand and agree that if
you violate the terms of Sections 5, 9, 10 or 11 of this Agreement, you will
cause injury to the Company and/or one or more of the Company Parties that will
be difficult to quantify or repair, and that monetary damages would be
insufficient to remedy any harm suffered by the Company and/or the Company
Parties.  Accordingly, you agree that if you violate Sections 5, 9, 10, or
11 of this Agreement, the Company or the Company Parties may obtain a temporary
restraining order or injunction, restraining you from any further breach of
this Agreement.  The Company’s right to equitable relief in the form of an
injunction or temporary restraining order is in addition to and not in lieu of
any other remedies that the Company or the Company Parties have, including but
not limited to monetary damage or any other remedies.

 

13.           No Modifications; Governing
Law; Entire Agreement.  This Agreement cannot be changed or
terminated orally, and no modification or waiver of any of the provisions of
this Agreement will be effective unless it is in writing and signed by both you
and the Company.  This Agreement is to be governed by and construed in accordance
with the laws of the State of Delaware.  This Agreement sets forth the
entire and fully integrated understanding between the parties, and there are no
representations, warranties, covenants or understandings, oral or otherwise,
that are not expressly set out herein.

 

14.           Voluntary Execution.  By
signing below, you acknowledge that you have read this Agreement, that you
understand its contents and that you have relied upon or had the opportunity to
seek the legal advice of your attorney, who is the attorney of your own
choosing.

 

15.           Miscellaneous.

 

a.     Should any portion, term or
provision of this Agreement be declared or determined by any court to be
illegal, invalid or unenforceable, the validity or the 

 

 

remaining portions, terms and provisions shall not be affected thereby,
and the illegal, invalid or unenforceable portion, term or provision shall be
deemed not to be part of this Agreement.

 

b.     The parties agree that the
failure of a party at any time to require performance of any provision of this
Agreement shall not affect, diminish, obviate or void in any way the party’s
full right or ability to require performance of the same or any other provision
of this Agreement at any time thereafter.

 

c.     This  Agreement  shall  inure  to  the  benefit  of  and  shall  be  binding  upon  you,  your  heirs,  administrators,  representatives,  executors,  successors  and  assigns  and  upon  the  successors  and  assigns  of  the  Company.

 

d.     The headings of the
paragraphs of this Agreement are for convenience only and are not binding on
any interpretation of this Agreement. 
This Agreement may be executed in counterparts.

 

[Signature page follows.]

 

 

	
   

  	
  INTAC:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INTAC
  International, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Henry N. Adorno

  	
   (SEAL)

  
	
   

  	
  Name:

  	
  Henry
  N. Adorno

  	
   

  
	
   

  	
  Title:

  	
  Vice
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSWI:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSW
  International, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Henry N. Adorno

  	
   (SEAL)

  
	
   

  	
  Name:

  	
  Henry
  N. Adorno

  	
   

  
	
   

  	
  Title:
  

  	
  Vice
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  YOU:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  J. David Darnell

  	
   (SEAL)

  
	
   

  	
  J.
  David Darnell

  	
   

  
					

 

 

EXHIBIT
A

 

RELEASE AGREEMENT

 

This RELEASE AGREEMENT (the “Release”) is made
this        day of                                   ,
2008, by and between J. David Darnell (“You” or “you”), HSW International, Inc.,
a Delaware corporation with its principal place of business in Atlanta, Georgia
(“HSWI”),  and INTAC International, Inc.,
a Nevada corporation with its principal place of business in Atlanta, Georgia (“INTAC”)
(HSWI and INTAC are referred to collectively herein as the “Company”).

 

WHEREAS, You and the Company have agreed that
your employment will terminate on the terms and conditions set forth in the
Separation Agreement to which this Release is attached (the “Separation
Agreement”);

 

WHEREAS, the Separation Agreement requires you
to execute this Release as a condition to receiving the severance payment
described in Section 2 thereof.

 

NOW, THEREFORE, in consideration of the mutual
promises and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly
acknowledged by all parties, the parties hereby agree as follows:

 

1.             Release of
Claims.  In exchange for the Company
providing you with the consideration described in the Separation Agreement, you
release and forever discharge the Company, as well as its parent companies,
affiliates, subsidiaries, divisions, officers, directors, stockholders,
employees, agents, representatives, attorneys, lessors, lessees, licensors and
licensees, and their respective successors, assigns, heirs, executors and
administrators (collectively, the “Company Parties”), from any and all claims,
demands, and causes of action of every kind and nature, whether known or
unknown, direct or indirect, accrued, contingent or potential, which you ever
had or now have arising out of or related to your employment with the Company
and the termination thereof (except where and to the extent that such a release
is expressly prohibited or made void by law).  The release includes,
without limitation, your release of the Company Parties from any claims by you
for lost wages or benefits, stock options, restricted stock, compensatory
damages, punitive damages, attorneys’ fees and costs, equitable relief or any
other form of damages or relief.  In addition, this release is meant to
release the Company Parties from all common law claims, including claims in
contract or tort, including, without limitation, claims for breach of contract,
wrongful or constructive discharge, intentional or negligent infliction of
emotional distress, misrepresentation, tortious interference with contract or
prospective economic advantage, invasion of privacy, defamation, negligence or
breach of any covenant of good faith and fair dealing.  You also
specifically and forever release the Company Parties (except where and to the
extent that such a release is expressly prohibited or made void by law) from
any claims based on unlawful employment discrimination or harassment, including claims under the federal Age Discrimination
in Employment Act (29 U.S.C. § 621 et  seq.).

 

You
acknowledge that this release applies both to known and unknown claims that may
exist between you and the Company Parties. 
You expressly waive and relinquish all rights and benefits which you may
have under any state or federal statute or common law principle that 

 

 

would
otherwise limit the effect of this Release to claims known or suspected prior
to the date you execute this Release, and do so understanding and acknowledging
the significance and consequences of such specific waiver.  Provided, however, that nothing in
this Release extinguishes any claims you may have against the Company for
breach of this Release or the Separation Agreement.

 

2.             No Admissions;
Covenant Not to Sue. You understand, acknowledge and agree that the
release set out above in Section 1 is not an admission by the Company or
the Company Parties that any such claims exist or that the Company or any of
the Company Parties are liable for any such claims.  Unless prohibited by
applicable law or regulation, you further agree not to hereafter, directly or
indirectly, sue, assist in or be a voluntary party to any litigation against
any one or more of the Company Parties for any claims relating to events
occurring prior to or simultaneously with the execution of this Release,
including but not limited to your termination of employment with the Company.

 

3.             Consideration.  In consideration of your executing this
Release, Company is providing you with the payments and benefits set out in Section 2
of the Separation Agreement.

 

4.             Right to Revoke.  ONCE SIGNED BY YOU, THIS RELEASE IS REVOCABLE
IN WRITING FOR A PERIOD OF SEVEN (7) DAYS (THE “REVOCATION PERIOD”).  IN ORDER TO REVOKE ACCEPTANCE OF THIS
AGREEMENT, YOU MUST DELIVER WRITTEN NOTICE TO BRADLEY ZIMMER AT THE COMPANY,
AND SUCH WRITTEN NOTICE MUST ACTUALLY BE RECEIVED BY BRADLEY ZIMMER WITHIN THE
SEVEN (7) DAY REVOCATION PERIOD.

 

5.             Voluntary Execution.  By signing below, you acknowledge that you
have read the foregoing Release, that you understand its contents and that you
have relied upon or had the opportunity to seek the legal advice of your
attorney, who is the attorney of your own choosing. YOU HEREBY ACKNOWLEDGE THAT
YOU HAVE BEEN GIVEN A PERIOD OF AT LEAST TWENTY-ONE (21) DAYS TO CONSIDER
WHETHER TO EXECUTE THIS RELEASE.  YOU
ALSO ACKNOWLEDGE THAT YOU WERE ADVISED BY THE COMPANY IN WRITING TO CONSULT
WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE.

 

6.             No Modifications; Governing Law; Entire
Agreement.  This Release cannot be changed or terminated
orally, and no modification or waiver of any of the provisions of this Release
is effective unless in writing and signed by all of the parties hereto.  The parties agree that this Release is to be
governed by and construed in accordance with the laws of the State of Delaware.
This Release sets forth the entire and fully integrated understanding between
the parties with respect to the matters addressed herein, and there are no
representations, warranties, covenants or understandings, oral or otherwise,
that are not expressly set out herein.

 

7.             Miscellaneous.

 

(a)           Should any portion, term or
provision of this Release be declared or determined by any court to be illegal,
invalid or unenforceable, the validity or the remaining 

 

 

portions,
terms and provisions shall not be affected thereby, and the illegal, invalid or
unenforceable portion, term or provision shall be deemed not to be part of this
Release.

 

(b)           The parties
agree that the failure of a party at any time to require performance of any
provision of this Release shall not affect, diminish, obviate or void in any
way the party’s full right or ability to require performance of the same or any
other provision of this Release at any time thereafter.

 

(c)           This Release
shall inure to the benefit of and shall be binding upon you, your  heirs, administrators, representatives, executors,
successors and assigns and upon the successors and assigns of the Company.

 

(d)           The headings of
the paragraphs of this Release are for convenience only and are not binding on
any interpretation of this Release.  This
Release may be executed in counterparts.

 

IN WITNESS WHEREOF, each of the parties hereto
acknowledges having read and understood the contents and effect of this Release
and has executed this Release freely and with full authority duly given, all as
of the date first above written.

 

[Signature page follows]

 

 

	
   

  	
  INTAC:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INTAC
  International, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
                                 

  	
  ,
  2008

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSWI:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSW
  International, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
                                 

  	
  ,
  2008

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  YOU:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   (SEAL)

  
	
   

  	
  J.
  David Darnell

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
                                 

  	
  ,2008

  	
   

  
										

 

 

EXHIBIT B

 

FORM OF CONSULTING AGREEMENT

 

INDEPENDENT CONTRACTOR AGREEMENT

 

THIS
INDEPENDENT CONTRACTOR AGREEMENT (this “Agreement”), effective             ,
by and between HSW International, Inc. a Delaware corporation  with its principal place of business at One
Capital City Plaza, 3350 Peachtree Rd., NE, Suite 1600,  Atlanta, Georgia 30326 (“HSWI”), and J. David
Darnell  (hereinafter “Contractor”).  (Contractor and HSWI are each referred to
herein as “Party” or “party” and collectively as the “Parties” or “parties”).

 

For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties mutually agree to enter into a
Consulting Agreement as follows:

 

1.             Services.  Contractor
will provide the consulting services (“Services”) to HSWI as described on Exhibit A
attached hereto, in accordance with the specifications and timetable
herein.  During the term hereof,
Contractor will, in Contractor’s reasonable discretion, agree to provide
services requested by HSWI in addition to those specifically described on Exhibit A
(“Additional Services”).

 

2.             Term of Agreement. 
The term of this Agreement (the “Term”) shall commence on August 1,
2008, and, unless otherwise terminated as provided herein, shall continue for
six (6) months.

 

3.             Fees, Expenses and Payment. 
In consideration for the Services:

 

(a)           HSWI shall pay Contractor the fee (“Fee”) of $20,000
per month during the Term.  Payments will
be made net 30 days in arrears upon completion of services and will be paid
upon receipt of an invoice from Contractor. 
The invoice will include an updated status report on Contractor’s
consulting efforts.

 

(b)           HSWI shall not be liable to Contractor for any
expenses paid or incurred by Contractor unless otherwise agreed to and approved
in advance in writing by HSWI (the “Expenses”). Any such Expenses shall be in
connection with this Agreement and fully conform with HSWI’s then-current
policies, as communicated from time to time.

 

(c)           Contractor will invoice HSWI for Expenses, which shall
be due and payable within thirty (30) days of the invoice date.  Contractor will include these expenses as
part of Contractor’s monthly Fee invoice, and shall include supporting
documentation for such expenses.

 

(d)           Payroll taxes, including federal, state and local
taxes, shall not be withheld or paid by HSWI on behalf of Contractor.
Contractor shall not be treated as an employee for federal or state tax
purposes with respect to the services performed under this agreement.
Contractor shall be responsible to pay all taxes as mandated by law.

 

 

4.             Performance. 
Contractor shall personally perform Contractor’s obligations hereunder
in a workmanlike and professional manner, and shall not employ or utilize any
other persons for the performance of such. 
Any materials provided to HSWI by Contractor hereunder shall be
Contractor’s original work, unencumbered by any third parties, unless expressly
authorized in writing by HSWI on a case-by-case basis.  Contractor agrees to cooperate with HSWI on
any matters related to the performance of services hereunder.

 

5.             Indemnification. Contractor agrees to indemnify and hold
harmless HSWI and its directors, officers, agents and employees from and
against any claims, liabilities, losses, damages, proceedings or actions
(whether pending or threatened) related to or arising out of the Services and
Additional Services, if any.  HSWI shall
give reasonable notice to the other of any such claim, loss, action, damage,
expense or other liability.  This Section 5
shall survive the termination of this Agreement.

 

6.             Notices.  All notices
required by either Party under this Agreement shall be in writing, and shall be
deemed to have been given on the date such noticed is presented personally, or
transmitted by facsimile (receipt confirmed), two (2) business days after
delivery by a nationally recognized courier service, or three (3) days
after mailed registered or certified, return receipt requested, to the other
Party at the following address , or such other address as a Party may designate
by notice to the other Party:

 

	
  If to HSWI:

  	
  HSW International, Inc.

  
	
   

  	
  Attn: Legal Department

  
	
   

  	
  One Capital City Plaza

  
	
   

  	
  3350 Peachtree Road, Suite 1600

  
	
   

  	
  Atlanta, Georgia 30326

  
	
   

  	
   

  
	
  If to Contractor:

  	
  J. David Darnell

  
	
   

  	
  Intac

  
	
   

  	
  12221 Merit Drive,
  Suite 600

  
	
   

  	
  Dallas, Texas 75251

  

 

7.             Ownership of Materials.

 

(a)           Contractor
covenants and agrees that all of Contractor’s Work Product (as defined below)
for HSWI, and all of the ideas and other intellectual property contained
therein, shall be the sole and exclusive property of HSWI and HSWI shall
maintain all worldwide right, title and interest therein. Contractor agrees
(without further compensation) to execute any applications, agreements and
instruments (including any assignment agreements and instruments) and to do all
other things reasonably requested by HSWI, at HSWI’s expense (both during and
after the Term of this Agreement) in order to vest more fully in HSWI all
worldwide ownership rights in such Work Product, including, without limitation,
United States and foreign patent or other proprietary rights and copyrights.
For purposes hereof, “Work Product” shall mean all works of authorship created,
conceived or developed by Contractor in the performance of Contractor’s
consulting duties.

 

 

(b)           If any one or
more of the Work Product are protectible by copyright and are deemed in any way
to fall within the definition of “work made for hire,” as such term is defined
in 17 U.S.C. § 101, such work shall be considered a “work made for hire,” the
copyright of which shall be owned solely, completely and exclusively by HSWI.
If any one or more of the aforementioned items are protectible by copyright and
are not considered to be included in the categories of works covered by the “work
made for hire” definition contained in 17 U.S.C. § 101, such items shall be
deemed to be assigned and transferred by Contractor completely and exclusively
to HSWI by virtue of the execution of this Agreement.

 

(c)           Contractor
hereby waives any and all claims that he may have in any jurisdiction to “moral
rights” or rights of “droit moral” with respect to the Work Product and
acknowledges, confirms and agrees that HSWI, without the necessity of any
further consideration or action on the part of HSWI or Contractor, shall have
the right to make (or have others on HSWI’s behalf make) enhancements and
derivative works of the same and that HSWI or its designee shall own all
worldwide right, title and interest in and to all such enhancements and
derivative works.

 

(d)           Upon completion or termination of this
Agreement, Contractor agrees to return to HSWI all lists, books, records,
company property, and Confidential Information (defined below) obtained in
connection with HSWI’s business, and any copies made thereof.

 

8.     Relationship of
the Parties.  During the
Term, Contractor and any individual or entity hired by Contractor in
connection with the performance of the Services will be an independent
contractor and not HSWI’s employee for any purpose, including, but not
limited to, the application of the Fair Labor Standards Act’s minimum wage and
overtime provisions, the Federal Insurance Contribution Act, the Social
Security Act, the Federal Unemployment Tax Act, the provisions of the Internal
Revenue Code, and all federal, state and local laws and regulations.  Contractor understands that HSWI will
not be responsible for withholding or paying any federal or state income,
social security or other taxes in connection with any compensation paid under
this Agreement, and Contractor agrees to pay all such taxes when due.  HSWI will provide Contractor with a Form 1099
to the extent required by law. 
Contractor hereby agrees to indemnify and hold HSWI harmless from
any and all claims, causes of action or other proceedings related to or
resulting from Contractor’ s failure to pay taxes in compliance with
applicable law.  Contractor further
understands and agrees that Contractor and any individual or entity hired by
Contractor in connection with the performance of the Services will not be
entitled to any medical, disability, pension or other employment benefits or
rights provided by HSWI (whether by agreement or by operation or law),
including but not limited to group insurance, liability insurance, disability
insurance, paid vacations, sick leave, retirement plans, health plans, premium overtime pay, and the
like.  In addition, HSWI will not
provide worker’s compensation coverage for Contractor or its employees.  Because Contractor is an independent
contractor, HSWI will have no obligations to pay Contractor or its employees
and agents overtime compensation under the Fair Labor Standards Act, or to make
any payments at any rate other than the rate agreed to in this Agreement.  It is Contractor’s sole responsibility to
provide worker’s compensation coverage and, if applicable, pay any premium
overtime rate, for any individual or entity hired by Contractor who is working
on any services for HSWI. 
Contractor agrees to provide HSWI with evidence of the payments and
insurance required by this Agreement whenever requested.  During the Term, Contractor will retain sole
and absolute discretion and judgment in the manner and means of carrying out
the Services.  Contractor 

 

 

further agrees that
during the Term, he has a full opportunity to find other business (so long as
such other business is not in violation of this Agreement), and that he will
use a high level of skill necessary to perform the Services.  During the Term, Contractor will not have the
authority to enter into any contract on behalf of HSWI or otherwise to
bind HSWI to any agreement, and Contractor agrees not to hold himself out
as having such authority unless expressly authorized in writing to do so,
and HSWI will not be liable for any obligation incurred by Contractor
during the Term.  During the
Term, Contractor shall indemnify and hold HSWI harmless from all
claims, losses, injuries or damages, and wages or any other form of
compensation (including, without limitation, reasonable attorneys’ fees and
costs) arising in connection with any claim, suit or proceeding alleging
that Contractor has or had a relationship with HSWI other than an
independent contracting relationship during the Term.

 

9.             Assignment.  Upon advance written notice HSWI may assign
this Agreement in its entirety to a parent, subsidiary or successor in interest
to the business of the party, provided such assignee is able to and does
fulfill the obligations of the assignor. 
Notwithstanding any such assignment, the assignor shall remain primarily
liable to the other party for the assignee’s performance under this
Agreement.  This Agreement may not be
otherwise assigned or transferred.

 

10.           Termination.

 

a.             Termination by Notice.  At any time prior to the end of the Term,
either Party hereto may terminate this Agreement by providing at least thirty
(30) days advance written notice of termination to the other party (“Termination
by Notice”).  Upon Termination by
Notice, HSWI will pay Contractor only that portion of the  Fee due to
Contractor for Services performed through the effective date of the termination
and any pre-approved Expenses in accordance with Section 3, above.

 

b.             Termination for Cause.  At any time prior to the end of the Term,
the HSWI may terminate this Agreement immediately and without advanced
notice for “Cause.”  For purposes of this
Agreement, “Cause” shall mean and include: 
(i) Contractor’s material breach of this Agreement; (ii) Contractor’s
commission of a felony or crime involving moral turpitude; (iii) any act
by Contractor involving dishonesty in the performance of the Services,
including, without limitation, fraud, misappropriation or embezzlement; (iv) Contractor’s
repeated failure or refusal to perform the Services; or (v) any willful or
grossly negligent act or omission by Contractor that is injurious to HSWI,
including injury to HSWI’s reputation. 
If HSWI terminates this Agreement for Cause, HSWI will pay
Contractor only that portion of the Fee due to Contractor for Services
performed through the effective date of the termination and any pre-approved
Expenses in accordance with Section 3, above.

 

c.             Other Termination.  This Agreement shall terminate immediately
upon Contractor’s death or “Disability.” 
For purposes of this Agreement, “Disability” is defined as Contractor’s
inability to perform the Services for a period of thirty (30) consecutive
days.  If this Agreement is terminated
due to Contractor’s death or Disability, HSWI will pay Contractor only that
portion of the Fee due to Contractor for Services performed
through the effective date of the termination and any pre-approved Expenses in
accordance with Section 3, above.

 

 

11.           Confidential Information. 
The terms set forth on Exhibit B, entitled “Confidential
Information,” are incorporated herein by this reference.  Without limiting such Exhibit B, each of
the parties hereto agrees that it will not, without the written consent of the
other party in each instance, (i) use in advertising, publicity or
otherwise (including, without limitation, on the Internet) the other party’s
name, domain name, any trademark, trade name, symbol or any abbreviation or
contraction thereof owned by or referring to that party; or (ii) represent,
directly or indirectly, that any product or service offered by the party has
been approved or endorsed by the other party.

 

12.           Covenant Not To Compete. 
During the Term of this Agreement and for a period of six (6) months
after its termination or completion, Contractor will not engage directly or
indirectly as employee, consultant, manager, proprietor or solicitor for
himself or others in a similar or competitive business which he is here
contracted by HSWI to do and perform, in any city or state where or within
which he shall have worked for HSWI under this Agreement.

 

13.           Non-Solicitation/Public Comments. Contractor agrees that during the term
of this Agreement and for twelve months after the termination or expiration of
this Agreement, Contractor shall not:

 

(a)   Solicit for employment and then employ any employee of
HSWI or any of its affiliates or subsidiaries;

 

(b)   Make any public statement concerning HSWI, any of its
affiliates or subsidiaries, employees, officers and directors unless such
statement is previously approved by an officer of HSWI, except as required by
law;

 

(c)   Disparage HSWI and its affiliated entities, or its
and/or their owners, officers, directors, members, employees or agents, or its
and/or their business, policies, practices or services, in any way whatsoever.

 

(d)   Induce, attempt to induce or knowingly encourage any
Customer of HSWI or any of its affiliates or subsidiaries to divert any
business or income from HSWI or its affiliates or subsidiaries or to stop or
alter the manner in which they are then doing business with HSWI or any of its
affiliates or subsidiaries. “Customer” shall mean any individual or entity that
was or is a customer or client or whose business was actively solicited by HSWI
or its affiliates or subsidiaries at any time, regardless of whether such
Customer was generated, in whole or in part, by Contractor’s efforts.

 

14.           Entire Agreement. 
These terms and conditions herein, including any Exhibits attached
hereto, constitute the entire agreement between the Parties with respect to the
subject matter hereof; all prior agreements, representations, statements,
negotiations and undertakings, whether written or oral, are superseded
hereby.  This Agreement may be
supplemented, amended or revised only by a writing that is signed by each of
the parties.

 

15.           Governing Law/Jurisdiction and Venue. 
This Agreement shall be exclusively governed by and construed under the
laws of the State of Delaware.

 

16.           Approval Signatures. 
Signature by authorized representatives of the respective Parties listed
below constitutes acceptance of and notice to proceed with the performance and 

 

 

provision of the
Services specified on Exhibit A. 
No additional work relating to any other project or engagement than that
described in this Agreement, shall be authorized without the express written
agreement of both Parties hereto.

 

17.           Non Waiver.  The failure
of either party to this Agreement to exercise any of its rights under this
Agreement at any time does not constitute a breach of this agreement and shall
not be deemed to be a waiver of such rights or a waiver of any subsequent
breach.

 

18.           Compliance With Laws. 
Contractor represents that he has complied and will continue to comply
with all relevant federal, state and local laws and regulations.

 

19.           Severability. 
If any part of this agreement is held to be unenforceable, the rest of
this agreement shall nevertheless remain in full force and effect.

 

20.           Survival.  Contractor
acknowledges and agrees that his obligations under Sections 5, 7, 8, 11, 12,
and 13 of this Agreement will survive the termination of this Agreement
regardless of the cause or manner of the termination.  Any waiver by HSWI of a breach of any
provision of this Agreement will not operate as a waiver of any subsequent
breach of that provision or any other provision of this Agreement.

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized representatives.

 

 

	
  CONTRACTOR:

  	
  HSWI:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  J.
  David Darnell

  	
  HSW
  International, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  J. David Darnell

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
								

 

 

EXHIBIT A

 

Consulting Services

 

Contractor
shall assist management and the accounting/finance group of HSWI with special
projects and the transition of his former duties as appropriate but shall not
function as an executive officer nor employee of HSWI nor retain liability as
such.  In the event of any inconsistency between the terms of this
Agreement and the terms of his Separation Agreement, the terms of the
Separation Agreement shall control.

 

 

EXHIBIT B

 

Confidential Information

 

During
the course of this relationship, it may be necessary or convenient for HSWI to
divulge Confidential Information (as herein defined) to Contractor. If
Confidential Information is disclosed by HSWI to Contractor, including any such
disclosed prior to the effective date of this Agreement, then the following
shall apply.

 

1.     The term “Confidential
Information” means all non-public information that: (i) HSWI
designates as being confidential information in connection with the disclosure
of such information; or (ii) is of a sensitive or proprietary nature,
including without limitation negotiations in progress, terms of agreements,
financial data, customer lists, advertising, marketing and promotional plans,
and business partner lists, including but not limited to trade secrets.

 

2.     Confidential Information
shall not include any information that (i) is at the time of disclosure or
subsequently becomes publicly available without Contractor’s breach of any
obligations owed to HSWI pursuant to this agreement; (ii) becomes known to
Contractor prior to HSWI’s disclosure of such information to Contractor; (iii) becomes
or became known to Contractor from a source other than HSWI who to Contractor’s
actual knowledge without any obligation of inquiry, obtained such information
without a breach of an obligation of confidentiality owed to HSWI; or (iv) is
independently developed by Contractor.

 

3.     Contractor shall retain in
strict confidence all of HSWI’s Confidential Information and take reasonable
security precautions, at least to the same extent as Contractor takes to
protect Contractor’s own confidential information, to insure that all of
Contractor’s and Contractor’s affiliates’ colleagues and employees hold in
strict confidence and do not disclose to any third party any of HSWI’s
Confidential Information during the Term of this Agreement and for five years
thereafter.  Notwithstanding the
foregoing, Contractor shall maintain the confidentiality of any trade secrets
in perpetuity.

 

4.     If Contractor has any
questions or uncertainties as to what constitutes Confidential Information, he
shall consult with an executive officer of HSWI.

 

5.     Notwithstanding the
foregoing restrictions, Contractor may use and disclose any Confidential
Information to the extent required by an order of any court or other
governmental authority, but in each case only after HSWI has been so notified and
has had the opportunity, if possible, to seek and obtain reasonable protection
for such information in connection with such disclosure.

 

 

6.     All Confidential Information
shall remain the exclusive property of HSWI and no license or similar rights of
any kind shall be or be deemed to have been created or implied by this
Agreement.

 

7.     The provisions of this Exhibit B
shall survive and be enforceable beyond the termination or completion of this
agreement.

 

8.     Without limiting the
remedies available to HSWI, Contractor acknowledges that a breach of any of the
covenants contained in this Exhibit B may result in material
irreparable injury to HSWI or any of its subsidiaries or affiliates for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of such a breach or
threat thereof, HSWI shall be entitled to obtain a temporary restraining order
or a preliminary injunction or permanent injunction restraining Contractor from
engaging in activities prohibited by this Exhibit B or such other
relief as may be required to specifically enforce any of the covenants
contained herein.Exhibit 10.52

 

EXHIBIT A

 

AMENDMENT
NO. 1 TO THE

EXECUTIVE EMPLOYMENT AGREEMENT 

BETWEEN 

CHRISTOPHER & BANKS CORPORATION 

AND 

LORNA NAGLER

 

This AMENDMENT NO. 1 TO THE EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”)
is made as of the 30th day of April, 2008, between Christopher &
Banks Corporation, a Delaware corporation (the “Corporation”), and Lorna Nagler
(the “Executive”).

 

WHEREAS, the Corporation and the Executive entered into the Executive
Employment Agreement dated August 30, 2007 (the “Agreement”);

 

WHEREAS, the Corporation and the Executive desire to make certain
modifications to the Agreement to reflect governance actions taken by the Board
of Directors since the date of the Agreement and to reflect more accurately the
understandings of the parties with respect to certain of the subjects covered
thereby; and

 

WHEREAS, Article 20 provides that modifications to the Agreement
must be in writing and signed by the parties to the Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Corporation and the Executive
hereby agree to amend the Agreement, effective as of the date hereof, as
follows:

 

1.                     The second
sentence in Section 4.1 of the Agreement is hereby amended in its entirety
to read as follows:

 

“If this Agreement remains in effect after the close
of fiscal year 2010, for each fiscal year thereafter, Executive’s base salary
shall be reviewed and adjustments, if any, shall be determined by the
Compensation Committee of the Board of Directors of the Corporation (or any
successor committee thereto, the “Compensation Committee”) in its sole
discretion; however, such base salary cannot be reduced below $850,000 or the
Executive’s base salary for fiscal year 2010, whichever is higher.”

 

2.                     The third
and fourth sentences in Section 4.2 of the Agreement are hereby amended in
their entirety to read as follows:

 

“On the date of the Corporation’s first Board of Director’s meeting in
2008, the Corporation shall grant to Executive non-qualified stock options
covering 1,300 shares, effective as of April 14, 2008, and vesting to the
extent of 434 shares on August 31, 2008 with an additional 433 shares
vesting on each of August 31, 2009 and August 31, 2010, respectively,
assuming Executive continues to be employed with the Corporation on 

 

 

such dates.  The exercise price
of such stock options will be the closing price of the Corporation’s Common
Stock on the New York Stock Exchange on April 14, 2008.”

 

3.                     The first
sentence in Section 4.3 of the Agreement is hereby amended in its entirety
to read as follows:

 

“As of the effective date of this Agreement, the Corporation shall
grant to Executive 40,000 shares of its Common Stock as a restricted stock
grant and, provided Executive continues to be employed by the Corporation as
its Chief Executive Officer and has not given any notice of resignation before
or on such dates, effective on the first day in the Corporation’s trading
window in 2008, 2009, 2010 and 2011 following the issuance and announcement of
the prior year’s earnings, the Corporation shall grant to Executive additional
restricted stock grants of 40,000 shares of the Corporation’s Common Stock on
each such date.”

 

4.                     Section 4.7
of the Agreement is hereby amended in its entirety to read as follows:

 

“Executive shall be entitled, during each full calendar year in which
this Agreement remains in effect, to 23 days of paid time off (“PTO”), and a
pro rata portion thereof for any partial calendar year of employment.  Except as expressly provided in the
Corporation’s PTO policy, any PTO not used during any such calendar year may
not be carried forward to any succeeding calendar year and shall be
forfeited.  Employee shall not be
entitled to receive any payment in cash for PTO remaining unused at the end of
any year.  At separation from employment,
the Corporation will pay Executive for any unused PTO in the year of such
separation, prorated from January 1 of the year of separation through
Executive’s last day of employment to the extent consistent with the terms of
the Corporation’s PTO policy.”

 

5.                     The second
sentence in Section 4.9 of the Agreement is hereby amended in its entirety
to read as follows:

 

“The Corporation will: (1) pay for Executives’ coach round-trip
airfare, lodging and car rental while on house-hunting trips to the
Minneapolis-St. Paul area; (2) pay for and arrange the pack and move of
Executive’s household goods through one of its preferred carriers; (3) pay
for the transport of up to two of Executive’s personal vehicles from Powell,
Ohio to the Minneapolis-St. Paul area; (4) pay up to $5,000 per month for
up to twelve (12) months of temporary living expenses in corporate
housing/apartment while Executive secures a permanent place of residence in the
Minneapolis-St. Paul area; (5) in the event that Executive purchases a
residence in the Minneapolis-St. Paul area before the end of her first eighteen
(18) months of employment but has not yet sold her home in Powell, Ohio during
such time period, reimburse Executive for her mortgage payments on the Powell,
Ohio residence up to $5,000 per month 

 

2

 

until the earlier of the sale of her Powell, Ohio residence or the end
of such eighteen (18) month period; (6) reimburse Executive for a maximum
of 6% realtor fees associated with the sale of her residence in Powell, Ohio; (7) reimburse
Executive for her closing costs in connection with her purchase of a home in
the Minneapolis-St. Paul area; (8) to protect Executive against a potential
loss on the sale of her home in Powell, Ohio, pay Executive an amount equal to
the difference, if any, between Executive’s purchase price of her home in
Powell, Ohio and the sale price for such home, up to $200,000; and (9) reimburse
Executive for up to $50,000 of other, miscellaneous expenses incurred in
connection with her move to the Minneapolis-St. Paul area and the sale of her
home, in each case with respect to this clause (9), at the sole discretion of,
and as approved in writing by, the Chairman of the Board of Directors.”

 

6.                     The third
sentence in Section 5.1 of the Agreement is hereby amended in its entirety
to read as follows:

 

“The death benefit shall be in the amount of $2,500,000, of which
$1,500,000 is in the form of whole life insurance and $1,000,000 is in the form
of term life insurance; provided, however, that the Corporation shall use
commercially reasonable efforts to convert the $1,000,000 in term life
insurance into whole life insurance as soon as reasonably practicable.”

 

7.                     The heading
of Article 20 of the Agreement shall be changed to “Entire Agreement;
Amendments” and the second sentence of Section 20.1 is hereby amended in
its entirety to read as follows:

 

“The parties further agree that no amendments of this Agreement may be
made except by means of a written agreement or memorandum signed by the parties
and approved by the Corporation’s Board of Directors or its Compensation
Committee.”

 

8.                     The first
sentence of Exhibit A is hereby amended in its entirety to read as
follows:

 

“Your employment agreement provides for the future grant of 40,000
shares of Restricted Stock to be made in each of the years 2008, 2009, 2010 and
2011 effective on the first day in the Corporation’s trading window in 2008,
2009, 2010 and 2011 following the issuance and announcement of the prior year’s
earnings, which grants shall each be subject to a risk of forfeiture that shall
lapse for each grant on the date that is one year after the date of that grant
(the grant “anniversary date”); provided that (i) you have been
continuously employed by the Corporation through such anniversary date and have
not given any notice of resignation before or on that date and (ii) the
Corporation has satisfied certain performance conditions for the fiscal year in
which the grant was made, as described below (such performance conditions to be
consistent with those set forth in the restricted stock agreements of the other
senior 

 

3

 

executives of the Corporation) or such alternative performance criteria
that you and the Corporation mutually agree upon.”

 

Further, the following
paragraph is hereby added to Exhibit A as a new, last paragraph thereof:

 

“Further, the Corporation agrees that, subject to the terms and
conditions established from time to time by the Compensation Committee of the
Corporation and set forth in the relevant forms of any plans and agreements
approved by that Committee, you will be eligible to participate in, and will
receive appropriate consideration by that Committee for, awards to be made
under long-term incentive equity award programs that are approved by such
Committee for use with senior executives of the Corporation.”

 

9.                     No other
terms or conditions of the Agreement are amended hereby, and all such terms and
conditions of the Agreement shall remain in full force and effect.

 

10.                   The parties
hereby agree that this Amendment shall be construed in accordance with the
internal laws of the State of Minnesota without regard to the conflict of laws
thereof.

 

11.                   The parties
hereby agree that they may amend and restate the Agreement to include all of
the substantive terms of this Amendment in a consolidated amended and restated
executive employment agreement.

 

IN WITNESS WHEREOF, the Corporation and the Executive have executed this
Amendment as of the date and year first written above.

 

 

	
   

  	
  CHRISTOPHER &
  BANKS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry
  Barenbaum

  
	
   

  	
   

  	
  Name:

  	
  Larry Barenbaum

  
	
   

  	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Lorna Nagler

  
	
   

  	
  Lorna Nagler

  
						

 

4

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