Document:

Exhibit 10.5

EMPLOYMENT AGREEMENT

In
consideration of the mutual covenants set forth herein and other good and
valuable consideration, the receipt and sufficiency of which the parties
acknowledge, Investools Inc., a corporation having an address of 13947 S.
Minuteman Drive, Draper, UT, 84020, (the “Company”) and Ainslie Simmonds, of 36
Glen Avenue, Norwalk, CT, 06850, (“Employee”) intending to be legally bound,
hereby agree as follows:

1.             EMPLOYMENT.  The Company agrees to employ Employee and
Employee hereby accepts such employment on an at-will basis pursuant to the
terms and conditions of this Agreement on February 15, 2007 for an approximate
two (2) year period commencing on the date of this Agreement and terminating,
unless otherwise terminated earlier in accordance with Section 5 (“Employment
Period”) on December 31, 2008.  Employee
represents that she shall not disclose to the Company any confidential
information obtained from a third party or otherwise violate any
confidentiality obligations Employee may have incurred with a third party.

2.             SERVICES. 
During the Employment Period, Employee shall be employed as “Chief
Marketing/Product Development Officer and Senior Vice President” with job
responsibilities related thereto. Employee shall report to the Chief Executive
Officer and shall devote her full time efforts to the faithful performance of
her duties on behalf of the Company. 
Employee shall also perform such other duties, and may have job
responsibilities modified from time to time as may be requested by the Chief
Executive Officer, provided such duties are generally consistent with the level
of responsibility currently held by Employee. 
Employee’s principal place of performance of her duties during the term
of this Agreement shall be the corporate offices located in 45 Rockefeller
Center, New York City.  Employee shall
not engage in additional gainful employment of any kind or undertake any role
or position which would affect her ability to perform her responsibilities,
whether or not for compensation, with any person or entity during the term of
this Agreement without advance written approval of the Chief Executive Officer.

3.             ADHERENCE
TO COMPANY RULES.  Employee,
at all times during the Employment Period, shall strictly adhere to and obey
all of the Company’s written rules, regulations and policies, including without
limitation the Investools Code of Business Ethics (attached hereto as Exhibit
A), which will be provided to Employee and are now in effect, or as
subsequently adopted or modified by the Company and provided to Employee which
govern the operation of the Company’s business and the conduct of employees of
the Company.

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4.             COMPENSATION.

a.             Salary.  Employee shall receive an annual base salary
of $265,000 payable in bi-weekly gross amounts of  $10,192.31 Employee’s salary shall be subject
to all appropriate federal and state withholding taxes and shall be payable in
accordance with the normal payroll procedures of the Company.  Employee’s salary may be increased or
decreased by the Company at any time, in its sole discretion, upon providing
Employee thirty (30) days notice of such change.

b.             Benefits.  During the Employment Period, Employee shall
be entitled to participate in the employee benefit plans provided by the
Company for all employees generally, subject to the terms and conditions of the
applicable plan.  Additionally, Employee
shall be entitled to additional travel insurance (Accidental Life &
Dismemberment).  The Company shall be
entitled to change, amend or terminate such plans from time to time in its sole
discretion.

c.             Paid Time Off.  During
the Employment Period, Employee shall be entitled to four (4) weeks of paid
personal time (PTO) off per year, which shall accrue at a rate of 6.1538 hours
per bi-weekly pay period.  Employee shall
take her PTO time in accordance with Company policies and procedures.

d.             Expenses.  Employee shall be entitled to reimbursement
of her ordinary and necessary business expenses incurred in the performance of
her duties in accordance with Company policy.

e.             Discretionary
Bonus.  During
the Employment Period, Employee shall be entitled to an annual bonus up to
maximum of 35% of Employee’s
base salary as determined in the sole discretion of the Company, provided that
Employee and/or the Company meet performance goals as established by the
Company in its sole discretion.

f.              Stock Options.  Executive shall be eligible to receive
future additional stock option grants, as determined by the Compensation
Committee, in its sole discretion.

g.             Restricted
Shares.  Executive shall be eligible to receive
future additional Restricted Shares, as determined by the Compensation
Committee, in its sole discretion.

h.             During
the Employment Period, Executive shall be entitled to an annual complete
physical exam at Cooper Clinic or a medical equivalent, and said annual benefit
shall not exceed an amount equal to $15,000.

5.             TERMINATION.  The Company or Employee may terminate this
Agreement and Employee’s employment as provided below:

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a.             Termination by the Company for Cause.  The Company shall have the right to
immediately terminate Employee’s employment at any time for any of the
following reasons (each of which is referred to herein as “Cause”) by giving
Employee written notice of the effective date of termination (which effective
date may be the date of such notice):

(i)                                     willful
and material breach by Employee of any provision of this Agreement;

(ii)                                  any
act by Employee of fraud or dishonesty including, but not limited to, stealing
or falsification of Company records, with respect to any aspect of the Company’s
business;

(iii)                               failure
by Employee to follow the lawful instructions or directions from the Chief
Executive Officer of the Company;

(iv)                              failure
by Employee to perform in any manner under this Agreement after being given
reasonable notice of such failure by the Company, along with an explanation of
such failure of performance;

(v)                                 misappropriation
of Company funds or of any corporate opportunity;

(vi)                              conviction
of Employee of a felony, or of a crime that the Company, in its sole
discretion, determines involves a subject matter which may reflect negatively
on the Company’s reputation or business (or a plea of nolo
contendere thereto);

(vii)                           acts
by Employee attempting to secure or securing any personal profit not fully disclosed
to and approved by the Chief Executive Officer and/or the Board of Directors (“Board”)
of the Company in connection with any transaction entered into on behalf of the
Company;

(viii)                        gross,
willful or wanton negligence, misconduct, or conduct which constitutes a breach
of any fiduciary duty or duty of loyalty owed to the Company by Employee;

(ix)                                material
violation of any lawful Company policy, rule, regulation or directive;

(x)                                   conduct
on the part of Employee, even if not in connection with the performance of her
duties contemplated under this Agreement, 

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that could result in serious prejudice to the interests of the Company,
as determined by the Company in its sole discretion, and Employee fails to
cease such conduct immediately upon receipt of notice to cease such conduct;

(xi)                                acceptance
by Employee of employment with another employer; or

(xii)                             violation
of material federal or state securities laws as determined in the sole
discretion of the Company.

If the Company terminates
Employee’s employment for any of the reasons set forth above, the Company shall
have no further obligations to Employee hereunder from and after the effective
date of termination and shall have all other rights and remedies available
under this or any other agreement and at law or in equity and Employee receives
nothing else.

b.             Termination by the Company Without Cause.  The Company shall have the right to terminate
Employee without Cause for any reason by providing thirty (30) days’ written
notice to Employee.  If the Company
terminates Employee without Cause by providing thirty (30) days’ notice and
Employee is diligently and effectively rendering services to the Company (as
determined by the Company in its sole discretion) as directed in Section 2
above at the time of her termination, the Company shall pay Employee through
the date of termination and, subject to the limitations set forth below, the
Company shall provide Employee with severance compensation in an amount equal
to the greater of (i) six (6) month’s base salary (based on Employee’s annual
salary on the date of termination), less applicable taxes or (ii) the severance
pay to which Employee would be entitled under a severance pay plan, if any, in
effect at the time of Employee’s termination without Cause.  Such severance compensation shall be paid in
bi-weekly installments (“Installment Severance Payments”) over the following
six months (referred to herein as the “Severance Period”) in accordance with
the Company’s normal payroll practices and schedule.  Employee shall also be entitled to the full
vesting of all options granted to the termination date, subject to the terms
and conditions of the applicable plan and agreement.  All other provisions of the Stock Options
Agreement will remain in force.   In the
event Employee is in violation of Sections 7, 8, 9, 10 or 12 of this Agreement
at any time during the Severance Period, the Company shall be entitled to
immediately cease the payment of the Installment Severance Payments, the
Company’s severance obligation shall terminate and expire, and the Company
shall have no further obligations hereunder from and after the date of such
other employment or violation and shall have all other rights and remedies
available under this Agreement or any other agreement and at law or in equity.

c.             Voluntary
Termination by Employee.  In the event that Employee’s employment with the Company is voluntarily terminated
by Employee for any reason, the Company shall have no further obligations
hereunder from and after the date of such 

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termination
and shall have all other rights and remedies available under this Agreement or
any other agreement and at law or in equity.

d.             Termination Upon Death.  In the event that Employee shall die during
her employment by the Company, the Company shall pay to Employee’s estate any
compensation due that would otherwise have been payable through the date of
death.

e.             Termination
Upon Disability. 
In the event that Employee shall become disabled during her employment
by the Company, Employee’s employment hereunder shall terminate and the Company
shall provide Employee with severance payments equal to three (3) months’
salary (based on Employee’s monthly salary on the date of termination), less
applicable taxes.  Such severance
payments shall be paid bi-weekly over a period of three months in accordance
with the Company’s normal payroll practices and schedule.   For purposes of this Agreement, Employee shall become “disabled” if she
shall become, because of illness or incapacity, unable to perform the essential
functions of her job under this Agreement with or without reasonable
accommodation for a continuous period of one hundred and eighty (180) days
during the Employment Period.  In
addition, she shall be conclusively deemed to be disabled if she is determined
eligible to receive disability benefits from:

(i)                                     any
policy of disability insurance issued by a commercial insurer; or

(ii)                                  a
waiver of premium benefit forming a part of any policy of life insurance; or

(iii)                               Social
Security.

If
there is a dispute regarding the existence or continuation of a disability, the
Company may require the Employee to submit to an examination by a medical
doctor licensed to practice medicine at such reasonable times as it may require
but not more frequently than once in any 120 day period.  The Company shall pay for such examinations.

6.             CHANGE OF
CONTROL.

a.             For purposes of
this Agreement, a “Change in Control” of the Company shall be deemed to have
occurred at such time as:

i.              any
“person” (as the term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of voting securities of the Company representing more 

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than 50% of
the Company’s outstanding voting securities or rights to acquire such
securities except for any voting securities issued or purchased under any
employee benefit plan of the Company or its subsidiaries;  or

ii.            a
plan of reorganization, merger, consolidation, sale of all or substantially all
of the assets of the Company or similar transaction occurs or is effectuated in
which the Company is not the resulting or surviving entity; provided, however,
that such an event listed above will be deemed to have occurred or to have been
effectuated only upon receipt of all required regulatory approvals not
including the lapse of any required waiting periods; or

iii.           the
Board determines in its sole discretion that a Change in Control has occurred.

b.             Benefits Upon Change in Control.

i.              Severance Benefits. 
If a Change of Control occurs within the first  two (2) years of Employee’s employment
pursuant to this Agreement, and Employee is terminated as a result of the
Change of Control event, Employee shall have the right to resign within one
hundred eighty (180) days following the Change of Control and be entitled to
receive a cash severance benefit in an amount equal to twelve (12) month’s base
salary (based on Employee’s annual salary on the date of the Change of Control),
less applicable taxes.  Such amount shall
be paid in bi-weekly installments in accordance with the Company’s normal
payroll practices and schedule.  
Employee shall also be entitled to the full vesting of all options and
restricted shares granted to the termination date, subject to the terms and
conditions of the applicable plan and agreement.  All other provisions of the Stock Options
Agreement and Restrictive Stock Award Agreement  will
remain in force. Provided however, the Company shall have no obligation to
provide Employee with any severance compensation or options vesting under this
Section 6 if Employee is in breach or violation of any of the covenants
contained in Sections 7, 8, 9, 10 or 12, during the time period in which the
Company is making the severance payments.

7.         NONDISCLOSURE.  During the Employment Period, the Company
agrees and promises to provide, and Employee will acquire, knowledge with
respect to the Company’s business operations, including, by way of
illustration, the Company’s Work Product (as defined below), trade secrets,
processes, methodologies and methods for analyzing and investing in the stock
market, software, databases, and other technical information, business
information, customer lists and information, customer preferences, promotional
and marketing materials, marketing plans and strategies, business planning,
financial, and costing information related thereto, regardless of the form or
media containing such information, and confidential information relating to the
Company’s policies and employees (all of such information herein referred to as

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the “Confidential Information”).  The protection of the Confidential
Information against unauthorized disclosure or use is of critical importance to
the Company.  Employee agrees that
Employee will not, during her employment, divulge to any person, directly or
indirectly, except to the Company or its officers and agents (including Company
attorneys or accountants) or as reasonably required in connection with Employee’s
duties on behalf of the Company, or use, except on behalf of the Company, any
Confidential Information acquired by Employee during her employment.  Employee agrees that her confidentiality
obligation applies to all Confidential Information she has received, learned or
accessed, no matter when she accessed, learned or received such
information.  Employee further agrees
that Employee will not, at any time after her employment has ended (for
whatever reason), use or divulge to any person directly or indirectly any
Confidential Information, or use any Confidential Information in any subsequent
employment or business of any nature; provided however that Employee shall not be liable for disclosure or
use of any Confidential Information:

(i)                                     if it was disclosed after written approval of
the Company; or

(ii)                                  the Confidential Information is required to
be disclosed under applicable law or regulation.

  If
Employee is subpoenaed, or is otherwise required by law to testify concerning
Confidential Information, Employee agrees to immediately notify Company upon
receipt of a subpoena, or upon belief that such testimony shall be
required.  Employee shall not copy or
remove from the Company’s places of business any of the of the Company’s
documents, materials or items containing Confidential Information except with
the express written permission of the Company or in the normal course of
employment.

8.             NON-INTERFERENCE
OR SOLICITATION. 
Employee agrees that during the Employment Period, and for a period of
six (6) months following the termination of her employment (for whatever
reason), that Employee shall not knowingly, directly or indirectly, induce,
solicit, or attempt to persuade, directly or indirectly, (1) any former,
current or future employee, agent, contractor, manager, consultant, director or
other participant in the Company, or (2) any person who has purchased a program
or product of the Company during the term of this Agreement, or (3) any person
or entity who has collaborated or was affiliated with the Company during the
term of this Agreement, (all the foregoing three groups being collectively
referred to herein as “Participant”) to enter into any business relationship
with Employee, except for the benefit of the Company, or any business
organization in which Employee is involved or which is in competition with the
Restricted Business.  In addition, during
the Employment Period and for a period of six (6) months following the
termination of her employment (for whatever reason), Employee shall not (1)
directly or indirectly contact any person or entity having a Relationship (as
defined below) with the Company or disclosed by the Company to Employee for the
purpose of taking advantage of a business opportunity to the detriment of the
Company, (2) otherwise circumvent a Relationship with the Company or, to the
detriment of the Company, establish a Relationship with a party with whom the
Company has a Relationship, or (3) seek to establish any

 

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rights, including but not limited to
intellectual property rights, anywhere in the world in conflict with any
intellectual property rights related to Work Product.

For purposes
of this Agreement, the term “Restricted Business” shall mean the area of business
dealing with providing telemarketing, and seminar products, workshops, and
self-study programs, all relating to stocks and stock market investing
information and analysis, as well as any other area of business in which the
Company is engaged.   For purposes of
this Agreement, “directly or indirectly” means as a paid or unpaid director,
officer, agent, representative, manager, employee of, or consultant to any
enterprise, or acting as a proprietor of an enterprise, or holding any direct
or indirect participating role in any enterprise as an owner, partner, limited
partner, member, manager, joint venturer, shareholder or creditor.  For purposes of this Agreement, the term “Relationship”
shall mean a business arrangement, transaction, contract, understanding or
other business relationship.  The
foregoing prohibition against soliciting Participants shall include Employee
agreeing to enter into any such prohibited relationship, even if Participant
made the initial contact regarding such relationship.

9.             NON-COMPETITION.  In consideration of the numerous mutual
promises and agreements contained in this Agreement between the Company and
Employee, including, without limitation, those involving, employment,
compensation, and Confidential Information, and in order to protect the Company’s
Confidential Information and other legitimate business interests and to reduce
the likelihood of irreparable damage which would occur in the event such
information is provided to or used by a competitor of the Company, Employee
agrees that during her employment and for an additional period of six (6)
months immediately following the termination of her employment (for whatever
reason) (the “Noncompetition Term”), she shall not directly or indirectly enter
into or attempt to enter into the Restricted Business in the United States or
Canada.

Employee
hereby acknowledges that the geographic boundaries, scope of prohibited
activities and the time duration of the provisions of this Section 9 are
reasonable and are no broader than are necessary to protect the legitimate
business interests of the Company. This noncompetition provision shall survive
the termination of Employee’s employment (for any reason) and can only be
revoked or modified by a writing signed by the parties which specifically states
an intent to revoke or modify this provision. 
Employee acknowledges that the Company would not employ her or provide
her with access to its Confidential Information but for her covenants or
promises contained in this Section.

The
Company and Employee agree and stipulate that the agreements and covenants not
to compete contained in this Section 9 hereof are fair and reasonable in light
of all of the facts and circumstances of the relationship between Employee and
the Company; however, Employee and the Company are aware that in certain
circumstances courts have refused to enforce certain terms of agreements not to
compete.  Therefore, in furtherance of,
and not in derogation of the provisions of this Section 9, the Company and
Employee agree that in the event a court should decline to enforce any terms of
any of the provisions of this Section 9, that Section 9 shall be deemed to be
modified or reformed to restrict Employee’s competition with the Company to the

 8
 

maximum extent, as to time, geography and business scope,
which the court shall find enforceable; provided, however, in no event shall
the provisions of this Section 9 be deemed to be more restrictive to Employee
than those contained herein.

10.          WORK PRODUCT.  For purposes of this Section 10, “Work
Product” shall mean all intellectual property rights, including all trade
secrets, U.S. and international copyrights, trademarks, trade names, patentable
inventions, discoveries and other intellectual property rights in any
programming, design, documentation, technology, or other work product that is
created in connection with Employee’s work. 
In addition, all rights in any preexisting programming, design,
documentation, technology, or other Work Product provided to the Company during
Employee’s employment shall automatically become part of the Work Product
hereunder, whether or not it arises specifically out of Employee’s “Work.”  For purposes of this Agreement, “Work” shall
mean (i) any direct assignments and required performance by or for the Company,
and (2) any other productive output that relates to the business of the Company
and is produced during the course of Employee’s employment or engagement by the
Company.  For this purpose, Work may be
considered present even after normal working hours, away from the Company’s
premises, on an unsupervised basis, alone or with others.  Unless otherwise approved in writing by the
Chief Executive Officer of the Company, this Agreement shall apply to all Work
Product created in connection with all Work conducted before or after the date
of this Agreement.

The
Company shall own all rights in the Work Product.  To this end, all Work Product shall be
considered work made for hire for the Company. 
If any of the Work Product may not, by operation of law or agreement, be
considered Work made by Employee for hire for the Company (or if ownership of
all rights therein do not otherwise vest exclusively in the Company
immediately), Employee agrees to assign, and upon creation thereof does hereby
automatically assign, without further consideration, the ownership thereof to
the Company.  Employee hereby irrevocably
relinquishes for the benefit of the Company and its assigns any moral rights in
the Work Product recognized by applicable law. 
The Company shall have the right to obtain and hold, in whatever name or
capacity it selects, copyrights, registrations, and any other protection
available in the Work Product.

Employee
agrees to perform upon the request of the Company, during or after Employee’s
Work or employment, such further acts as may be necessary or desirable to
transfer, perfect, and defend the Company’s ownership of the Work Product,
including by (1) executing, acknowledging, and delivering any requested
affidavits and documents of assignment and conveyance, (2) obtaining and/or
aiding in the enforcement of copyrights, trade secrets, and (if applicable)
patents with respect to the Work Product in any countries, and (3) providing
testimony in connection with any proceeding affecting the rights of the Company
in any Work Product.

Employee
also agrees to develop all Work Product in a manner that avoids even the
appearance of infringement of any third party’s intellectual property rights.

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11.          NO
EXCLUSIONS.  Employee hereby
represents that Employee has not heretofore created any Work Product or
prepared any work, which is the subject of any Work Product, that Employee
wishes to exclude from the provisions of Section 10 above.

12.          RETURN OF DOCUMENTS.  Employee agrees that if Employee’s
relationship with the Company is terminated (for whatever reason), Employee
shall not take with Employee, but will leave with the Company, all Work
Product, Confidential Information, records, files, memoranda, reports, price
lists, customer lists, supplier lists, financial information, documents and
other information, in whatever form (including on computer disk), and any
copies thereof, or if such items are not on the premises of the Company,
Employee agrees to return such items immediately upon Employee’s
termination.  Employee acknowledges that
all such items are and remain the property of the Company.

13.          INJUNCTIVE
RELIEF.  Employee acknowledges
that breach of any of the agreements contained herein, including, without
limitation, the confidentiality, nonsolicitation and noncompetition covenants
specified in Sections 7, 8 and 9, will give rise to irreparable injury to the
Company, inadequately compensable in damages. 
Accordingly, Employee agrees that the Company shall be entitled to
injunctive relief to prevent or cure breaches or threatened breaches of the
provisions of this Agreement and to enforce specific performance of the terms
and provisions hereof in any court of competent jurisdiction, in addition to
any other legal or equitable remedies which may be available.  Employee further acknowledges and agrees that
the enforcement of a remedy hereunder by way of injunction shall not prevent
Employee from earning a reasonable livelihood. 
Employee further acknowledges and agrees that the covenants contained
herein are necessary for the protection of the Company’s legitimate business
interests and Confidential Information and are reasonable in scope and content.

14.          SEVERABILITY AND REFORMATION.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of Employee or the Company under this Agreement would
not be materially and adversely affected thereby, such provision shall be fully
severable, and this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part thereof,
the remaining provisions of this Agreement shall remain in full force and
effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom, and in lieu of such illegal, invalid or
unenforceable provision, there shall be added automatically as a part of this
Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible, and the Company
and Employee hereby request the court to whom disputes relating to this
Agreement are submitted to reform the otherwise unenforceable covenant in
accordance with this Section 14.

15.          HEADINGS,
GENDER, ETC. 
The headings used in this Agreement have been inserted for convenience
and do not constitute matter to be construed or interpreted in connection with
this Agreement.  Unless the context of
this Agreement otherwise requires, (i) words of any gender shall be deemed to
include each other gender; (ii) words using the singular or plural number shall
also include the plural or singular number, respectively; and (iii) the terms 

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“hereof,” “herein,” “hereby,” “hereto,” and
derivative or similar words shall refer to this entire Agreement.

16.          GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF “NEW YORK” WITHOUT GIVING
EFFECT TO ANY PRINCIPLE OF CONFLICT OF LAWS THAT WOULD REQUIRE THE APPLICATION
OF THE LAW OF ANY OTHER JURISDICTION.

17.          VENUE.  The venue for any dispute arising out of this
Agreement or Employee’s employment with the Company shall be any state or
federal court of competent jurisdiction in New York, New York.

18.          SURVIVAL.  Employee’s termination from employment and/or
the termination of this Agreement, for whatever reason, shall not reduce or
terminate Employee’s covenants and agreements set forth herein and all such
covenants, including those contained in Sections 7, 8, 9, 10, & 12 shall
survive the termination of this Agreement.

19.          NOTICES.  Any notice necessary under this Agreement
shall be in writing and shall be considered delivered three days after mailing
if sent certified mail, return receipt requested, or when received, if sent by
telecopy, prepaid courier, express mail or personal delivery to the following
addresses:

If
to the Company:               Investools
Inc.

_________________________________

_________________________________

_________________________________

_________________________________

If
to Employee:

_________________________________

_________________________________

_________________________________

_________________________________

 

20.          ENTIRE
AGREEMENT.  This Agreement
contains the entire understanding and agreement between the parties, and
supersedes any other agreement between Employee and the Company, whether oral
or in writing, with respect to the subject matter hereof.  This Agreement may only be modified pursuant
to Section 24.

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21.          NO WAIVER.  The forebearance or failure of one of the
parties hereto to insist upon strict compliance by the other with any
provisions of this Agreement, whether continuing or not, shall not be construed
as a waiver of any rights or privileges hereunder.  No waiver of any right or privilege of a
party arising from any default or failure hereunder of performance by the other
shall affect such party’s rights or privileges in the event of a further
default or failure of performance.

22.          ASSIGNMENT. 
This Agreement is personal to Employee and may not be assigned in any way
by Employee without the prior written consent of the Company.  This Agreement shall be assignable or
delegable by the Company.  The rights and
obligations under this Agreement shall inure to the benefit of and shall be
binding upon the heirs, legatees, administrators and personal representatives
of Employee and upon the successors, representatives and assigns of the
Company.

23.          BINDING EFFECT.  This Agreement shall be binding on and inure
to the benefit of the parties and their respective permitted successors and
assigns.

24.          MODIFICATION.  This Agreement may be modified only by a
written agreement signed by both parties. 
Any such written modification may only be signed by the President or
Chief Executive Officer of the Company.

25.          COUNTERPARTS.  This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original instrument, and all of which together shall constitute one and the
same Agreement.

26.          INDEMNIFICATION
In the event that Employee is made a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative,
other than an action by or in the right of the Company, by reason of the fact
that the Executive is or was an officer, employee, or agent of the Company,
Employee shall be indemnified by the Company against expenses, including
attorneys’ fees, judgments, fines and amounts paid in settlement actually and
reasonably incurred by Employee in connection with such action, suit or
proceeding if Employee acted in good faith and in a manner Employee reasonably
believed to be in or not opposed to the best interests of the Company, and,
with respect to any criminal action or proceeding, had no reasonable cause to believe
her conduct was unlawful;  provided,
that funds paid or required to be paid to Employee as a result of
the provisions of this Section shall be returned to the Company or reduced, as
the case may be, to the extent that Employee receives funds pursuant to an
indemnification from any other corporation or organization.  Expenses incurred in defending a civil,
criminal, administrative or investigative action, suit or proceeding may be
paid by the Company in advance of the final disposition of such action, suit or
proceeding as authorized by the Board of Directors in the specific case upon
receipt of an undertaking by the Executive to repay such amount if it shall
ultimately be determined that Employee is not entitled to be indemnified by the
Company.  The indemnification hereby
provided shall not be deemed exclusive of any other rights to which Employee
may be entitled under any law, bylaw, agreement, vote of stockholders 

 12
 

or disinterested directors, or otherwise,
both as to action in an official capacity and as to action in another capacity
while holding such office, and shall continue as to Employee once she has
ceased to provide services to the Company.

27.          EMPLOYEE
ACKNOWLEDGEMENT.   
Employee acknowledges that she has had the opportunity to consult legal
counsel in regard to this Agreement, that she has read and understands this
Agreement, that she is fully aware of its legal effect, and that she has
entered into it freely and voluntarily and based on her own judgment and not on
any representations or promises other than those contained in this Agreement.

IN
WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as
of the day and year first above written.

	
  

  	
   

  	
   

  
	
  /s/ Ainslie Simmonds

  	
   

  	
   

  
	
  AINSLIE SIMMONDS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  2/15/07

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INVESTOOLS INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  /s/ Lee Barba

  	
   

  
	
   

  	
  LEE BARBA

  	
   

  
	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  2/15/07

  	
   

  
							

 

 13Exhibit
10.6

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (the “Agreement”) is made and entered into as of the 15th day of February,
2007, by and between Tom Sosnoff (the “Executive”) and INVESTools Inc. (the “Company”).

WHEREAS, pursuant to
that certain Agreement and Plan of Merger, dated as of September 18, 2006,
among INVESTools Inc., Atomic Acquisition Corp. and thinkorswim Group, Inc.
(the “Merger Agreement”), the Company will acquire all of the outstanding
common stock of thinkorswim Group, Inc.;

WHEREAS, pursuant to
the Merger Agreement, the Company will acquire Executive’s equity interest in
thinkorswim Group, Inc. for the consideration set forth in the Merger
Agreement;

WHEREAS, the Company
desires to employ Executive and to enter into an agreement, subject to the
Closing (as defined in the Merger Agreement) and effective as of the Effective
Date, embodying the terms of such employment; and

WHEREAS, Executive
desires to accept such employment and enter into such an agreement, subject to
the Closing and Effective as of the Effective Time;

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein and for other good
and valuable consideration, the parties agree as follows:

1.     Term
of Employment.  Subject to the provisions of Section 8 of
this Agreement, Executive shall be employed by the Company for a period
commencing on the Effective Date and ending on the third anniversary of the
Effective Date (the “Employment Term”); provided, however, the
Employment Term may be extended for additional one-year periods by mutual
written agreement of the Company and Executive.

2.     Position.

a.             During
the Employment Term, Executive shall serve as the President of thinkorswim
Group, Inc. (“thinkorswim”) and its subsidiaries.  In such position, Executive shall have such
duties and authority as shall be determined from time to time by the Chief
Executive Officer of the Company consistent with such position.  If requested, Executive shall also serve as a
member of the Boards of Directors of the Company and any of its subsidiaries
without additional compensation.  During
the Employment Term, no officer of thinkorswim or any of its subsidiaries shall
hold an office at thinkorswim or any of its subsidiaries that is more senior
than President.

b.             During the Employment Term, Executive will devote Executive’s
full business time and best efforts
to the performance of Executive’s duties hereunder and will not engage in any
other business, profession or occupation for compensation or otherwise which 

would
conflict or interfere with the rendition of such services, either directly or
indirectly, without the prior written consent of the Chief Executive Officer of
the Company; provided that nothing herein shall preclude Executive,
subject to the prior approval of the Chief Executive Officer of the Company,
which approval will not be unreasonably withheld, from accepting appointment to
or continuing to serve on any board of directors or trustees of any business
corporation or any charitable organization; provided, in each case, and
in the aggregate, that such activities do not conflict or interfere with the
performance of Executive’s duties hereunder or conflict with Section 9 or
Section 10.  Set forth on Exhibit A
hereto is a complete list, as of the Effective Date, of the Executive’s
positions on any board of directors or trustees of any business corporation or
any charitable organization.

c.             At
all times during the Employment Term, Executive shall adhere to and obey all of
the Company’s written rules, regulations and policies, including without
limitation the INVESTools code of business ethics, which govern the operation
of the Company’s business and the conduct of employees of the Company.

3.     Base
Salary.  During the Employment Term, the Company shall
pay Executive a base salary at the annual rate of $120,000, payable in regular
installments in accordance with the Company’s usual payment practices.  Executive shall be entitled to such increases
in Executive’s base salary, if any, as may be determined from time to time in
the sole discretion of the Compensation Committee of the Board of Directors of
the Company (the “Compensation Committee”). 
Executive’s annual base salary, as in effect from time to time, is
hereinafter referred to as the “Base Salary.”

4.     Annual
Bonus.  With respect to each full fiscal year during
the Employment Term, Executive shall be eligible to earn an annual bonus award
(an “Annual Bonus”) in such amount, if any, as determined in the sole
discretion of the Compensation Committee of the Company, but in no event less
than $225,000 (“Bonus Floor”).  The Bonus
Floor will be deemed to be earned ratably on a monthly basis throughout the
applicable fiscal year.  The Annual Bonus
shall be paid to Executive within two and one-half (2.5) months after the end
of the applicable fiscal year.

5.     Initial
Stock Option Award. On or as soon as practicable following the Effective
Date, Executive will be granted a non-qualified stock option under the Company’s Amended and
Restated 2001 Stock Option Plan (the “Option Plan”), to purchase up to 230,891 shares of the Company’s common
stock, and a non-qualified stock option under the Option Plan to purchase up to
230,891 shares of the Company’s common stock, each subject to the terms and
conditions of the Company’s Amended and Restated Stock Option Plan, and subject
to the action of the committee that administers such plan (each, a “Stock
Option”).  Such Stock Options will
include the following terms.  The
per-share exercise price for one such Stock Option will be the fair market
value of a share of the Company’s common stock on the date of grant, and the
per-share exercise price for the other such Stock Option will be 150% of the
fair market value of a share of the Company’s common stock on the date of grant,
in each case determined in accordance with the terms of the Option Plan.  Each Stock Option will vest, subject to
Executive’s continuous service through the applicable vesting date, with
respect to 25% of the shares initially covered by the Option on each of the
first, second, third and fourth anniversaries of the date of grant.  In the event a “Change of Control” of the
Company (as 

2

defined
under the Option Plan) occurs during the Employment Term or a subsequent
Consulting Period (as defined in Section 12), any unvested Stock Option shall
become vested immediately prior to such Change of Control.  Each Stock Option shall have a ten year term,
subject to earlier expiration upon and following Executive’s termination of
continuous service during the periods as specified in Section 7(f)-(j) of the
Option Plan.

6.     Employee
Benefits.  During the Employment Term, Executive shall
be entitled to participate in the employee benefit plans of the Company or
thinkorswim Group, Inc. (other than annual bonus plans, severance plans, and
incentive plans) as in effect from time to time (collectively, “Employee
Benefits”), on the same basis as those benefits are generally made available to
other similarly situated executives.

7.     Business
Expenses.  During the Employment Term, reasonable
business expenses incurred by Executive in the performance of Executive’s
duties hereunder shall be reimbursed by the Company in accordance with Company
policies.

8.     Termination.  The Employment Term
and Executive’s employment hereunder may be terminated by either party at any
time and for any reason; provided that Executive will be required to
give the Company at least 15 days advance written notice of any resignation of
Executive’s employment other than for Constructive Termination and the Company
will be required to give Executive at least 15 days advance written notice of
termination if terminated by the Company without Cause.  Notwithstanding any other provision of this
Agreement, the provisions of this Section 8 shall exclusively govern Executive’s
rights upon termination of employment with the Company and its affiliates.

a.             By
the Company For Cause or By Executive Resignation Other Than For Constructive
Termination.

(i)  The Employment Term and
Executive’s employment hereunder may be terminated by the Company for Cause (as
defined below) and shall terminate automatically upon Executive’s resignation
other than for Constructive Termination (as defined below); provided
that Executive shall be required to give the Company at least 15 days advance
written notice of a resignation other than for Constructive Termination.

For purposes of this Agreement, “Cause” shall mean:

 

(A)                              Executive becomes subject to
a statutory or other disqualification that prevents Executive from performing
Executive’s assigned duties under this Agreement;

 

(B)                                willful and material breach
by Executive of any provision of this Agreement; provided the Company has
delivered to Executive a written notice setting forth with particularity such
breach and shall have given Executive an opportunity to meet with the Company
and to cure such breach within 15 business days following delivery of such
written notice;

 

3

(C)                                  any act by Executive of
material fraud or dishonesty including, but not limited to, stealing or
falsification of company records, with respect to any aspect of the business of
the Company or its affiliates;

 

(D)                               material failure by
Executive to follow the lawful instructions or directions of the Chief
Executive Officer of the Company; provided the Company has delivered to
Executive a written notice setting forth with particularity such failure and
shall have given Executive an opportunity to meet with the Company and to cure
such failure within 15 business days following delivery of such written notice;

 

(E)                                 failure by Executive to
perform in any material manner under this Agreement other than due to
Disability; provided the Company has delivered to Executive a written notice
setting forth with particularity such failure and shall have given Executive an
opportunity to meet with the Company and to cure such failure within 15
business days following delivery of such written notice;

 

(F)                                   misappropriation
of company funds or of any corporate opportunity;

 

(G)                                  conviction of
Executive of a felony, or of a crime that the Company, in its sole discretion,
determines involves a subject matter which may reflect negatively on the
reputation or business of the Company or any of its affiliates (or a plea of nolo contendere thereto);

(H)                               acts by Executive attempting
to secure or securing any personal profit not fully disclosed to and approved
by the Chief Executive Officer of the Company in connection with any
transaction entered into on behalf of the Company or any of its affiliates;

(I)                                    gross, willful or wanton
negligence or misconduct which constitutes a breach of any fiduciary duty or
duty of loyalty owed to the Company by Executive;

 

(J)                                   material violation of any
lawful policy, rule, regulation or directive of the Company or any of its
affiliates; provided the Company has delivered to Executive a written notice
setting forth with particularity such violation and shall have given Executive
an opportunity to meet with the Company and to cure such violation within 15
business days following delivery of such written notice;

 

(K)                               conduct on the part of
Executive, even if not in connection with the performance of Executive’s duties
contemplated under this 

 

4

                                                Agreement, that
could result in serious prejudice to the interests of the Company or any of its
affiliates, as determined by the Company in its sole discretion, and failure by
Executive to cease such conduct within 15 business days following receipt of
notice to cease such conduct;

 

(L)                                 acceptance by Executive of
employment with another employer without the consent of the Company; or

 

(M)                            violation of any material
federal or state securities laws, rules or regulations; provided the Company has
delivered to Executive a written notice setting forth with particularity such
violation and shall have given Executive an opportunity to meet with the
Company and to cure such violation within 15 business days following delivery
of such written notice.

 

(ii)  If Executive’s employment is
terminated by the Company for Cause, or if Executive resigns other than for
Constructive Termination, Executive shall be entitled to receive:

(A)          the Base Salary
through the date of termination;

(B)           any Annual
Bonus earned, but unpaid, as of the date of termination for the immediately
preceding fiscal year, paid in accordance with Section 4;

(C)           reimbursement,
within 30 days following submission by Executive to the Company of appropriate
supporting documentation, for any unreimbursed business expenses properly
incurred by Executive in accordance with Company policy prior to the date of
Executive’s termination; provided claims for such reimbursement
(accompanied by appropriate supporting documentation) are submitted to the Company
within 90 days following the date of Executive’s termination of employment; and

(D)          such Employee
Benefits, if any, as to which Executive may be entitled under the employee
benefit plans as described in Section 6 (the amounts described in clauses (A)
through (D) hereof being referred to as the “Accrued Rights”).

Following such termination of Executive’s employment
by the Company for Cause or resignation by Executive other than for
Constructive Termination, except as set forth in this Section 8(a)(ii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

b.             Disability
or Death.

(i)  The Employment Term and
Executive’s employment hereunder shall terminate upon Executive’s death and may
be terminated by the Company if Executive becomes physically or mentally
incapacitated and is therefore unable for a period of six (6) consecutive 

5

months or for an aggregate of nine (9) months in any
twenty-four (24) consecutive month period to perform Executive’s duties (such
incapacity is hereinafter referred to as “Disability”).  Any question as to the existence of the
Disability of Executive as to which Executive and the Company cannot agree
shall be determined in writing by a qualified independent physician mutually
acceptable to Executive and the Company. 
If Executive and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing.  The determination of Disability made in
writing to the Company and Executive shall be final and conclusive for all
purposes of the Agreement.

(ii)  Upon termination of
Executive’s employment hereunder for either Disability or death, Executive or
Executive’s estate (as the case may be) shall be entitled to receive:

(A)          the Accrued
Rights; and

(B)           subject to
Executive’s continued compliance with the provisions of Sections 9 and 10,
continued payment of the Base Salary in accordance with the Company’s normal
payroll practices, as in effect on the date of termination of Executive’s
employment, for a period of three months following the date of such
termination.

Following Executive’s termination of employment due to
death or Disability, except as set forth in this Section 8(b)(ii), Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

c.             By
the Company Without Cause.

(i)  The Employment Term and
Executive’s employment hereunder may be terminated by the Company without
Cause.

(ii)  If Executive’s employment is
terminated by the Company without Cause (other than by reason of death or
Disability), Executive shall be entitled to receive:

(A)          the Accrued
Rights; and

(B)           subject to
Executive’s continued compliance with the provisions of Sections 9 and 10,
continued payment of the Base Salary in accordance with the Company’s normal
payroll practices, as in effect on the date of termination of Executive’s
employment, for a period equal to the longer of (i) 12 months following the
date of such termination and (ii) the end of the Employment Term.

Following Executive’s
termination of employment by the Company without Cause (other than by reason of
Executive’s death or Disability), except as set forth in this Section 8(c)(ii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

d.             Termination
by Executive for Constructive Termination.

6

(i)  The Employment Term and
Executive’s employment hereunder may be terminated by the Executive for
Constructive Termination (as defined below).

For purposes of this Agreement, “Constructive
Termination” shall mean:

 

(A)
a material breach of the terms of this Agreement by the Company which remains
uncorrected for 30 days following written notice setting forth with
particularity such breach given by Executive to the Company;

 

                (B) a material diminution in
Executive’s title, duties, responsibilities or authority or the assignment to
Executive of duties materially inconsistent with his position which remains
uncorrected for 30 days following written notice setting forth with
particularly such events given by Executive to the Company; or

 

                (C) relocation of Executive from
the Chicago office of thinkorswim or relocation of the Chicago office of
thinkorswim without the consent of Executive;

 

provided that, in each
case, Executive must have notified the Company in writing of the event
constituting Good Reason not later than sixty (60) days following the later to
occur of the occurrence of the event constituting Good Reason or Executive’s
actual knowledge thereof.

 

(ii)  If Executive’s employment is
terminated by the Executive for Constructive Termination, Executive shall be
entitled to receive:

(A)          the Accrued
Rights; and

(B)           subject to Executive’s continued
compliance with the provisions of Sections 9 and 10, continued payment of the
Base Salary in accordance with the Company’s normal payroll practices, as in
effect on the date of termination of Executive’s employment, for a period equal
to the longer of (i) twelve months following the date of such termination and
(ii) the end of the Employment Term.

                               Following Executive’s resignation for
Constructive Termination, except as set forth in this Section 8(d)(ii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

e.             Expiration
of Employment Term.

(i)  Unless Executive’s
employment is earlier terminated pursuant to paragraphs (a), (b), (c) or (d) of
this Section 8, Executive’s termination of employment hereunder (whether or not
Executive continues as an employee of the Company thereafter) shall be deemed
to occur on the close of business on the last day of the Employment Term
(including any extensions pursuant to Section 1) and Executive shall be
entitled to receive the Accrued Rights.

7

Following such termination
of Executive’s employment hereunder as a result of the expiration of the
Employment Term, except as set forth in this Section 8(d)(i), Executive shall
have no further rights to any compensation or any other benefits under this
Agreement.

(ii)  Unless the parties otherwise
agree in writing, continuation of Executive’s employment with the Company
beyond the expiration of the Employment Term shall be deemed an employment
at-will and shall not be deemed to extend any of the provisions of this
Agreement and Executive’s employment may thereafter be terminated at will by
either Executive or the Company; provided that the provisions of
Sections 9, 10 and 11 of this Agreement shall survive any termination of this
Agreement or Executive’s termination of employment hereunder.

f.              Notice
of Termination.  Any purported termination of employment by
the Company or by Executive (other than due to Executive’s death) shall be
communicated by written Notice of Termination to the other party hereto in
accordance with Section 14(i) hereof. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under
the provision so indicated.

g.             Board/Committee
Resignation.  Upon termination of Executive’s employment
for any reason, Executive agrees to resign, as of the date of such termination
and to the extent applicable, from the Board of Directors of the Company (and
any committees thereof) and the Board of Directors (and any committees thereof)
of any of the Company’s affiliates.

9.     Non-Competition.

a.             Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees as follows:

(1)   During the Employment Term
and for a period of 12 months following the date Executive ceases to be
employed by the Company, or, if longer, for a period lasting through the
scheduled expiration date of the Employment Term as though no such termination
of employment had occurred (the “Restricted Period”), Executive will not,
whether on Executive’s own behalf or on behalf of or in conjunction with any
person, firm, partnership, joint venture, association, corporation or other
business organization, entity or enterprise whatsoever (“Person”), directly or
indirectly:

(i)                                     engage in any
business that competes with the businesses of the Company or its affiliates
(including, without limitation, businesses which the Company or its affiliates
have specific plans to conduct in the future and in connection with which the
Company and/or its affiliates have expended more than nominal time and/or
capital and as to which plans Executive is aware) in any geographical area in
which the Company or its affiliates produces, sells, leases, rents, licenses or
otherwise provides its products or services, including without limitation any
retail and institutional securities and brokerage business that has a niche
market in or is focused on offering services that

8

 

                                                facilitate
the trading of exchange traded equity and index options (an “Options B-D”), the
investor education business, and the business of developing financial services
software or technology for an Options B-D or the investor education market (a “Competitive
Business”);

(ii)                                  enter
the employ of, or render any services to, any Person (or any division or
controlled or controlling affiliate of any Person) who or which engages in a
Competitive Business;

(iii)                               acquire
a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

(iv)                              interfere
with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company or any of
its affiliates and customers, clients, contractors, managers, consultants,
suppliers or investors of the Company or its affiliates.

(2)   Notwithstanding anything to the
contrary in this Agreement, Executive may, directly or indirectly, own, solely
as an investment, securities of any Person engaged in the business of the
Company or its affiliates which are publicly traded on a national or regional
stock exchange or on the over-the-counter market if Executive (i) is not a
controlling person of, or a member of a group which controls, such person and
(ii) does not, directly or indirectly, own 5% or more of any class of
securities of such Person.

(3)   During the Restricted Period,
Executive will not, whether on Executive’s own behalf or on behalf of or in
conjunction with any Person, directly or indirectly:

(i)                                     solicit
or encourage any employee of the Company or any of its affiliates to leave the
employment of the Company or its affiliates; provided that the foregoing shall
not prohibit a general solicitation for employment not directed to employees of
the Company or any of its affiliates; or

(ii)                                  hire
any employee who was employed by the Company or its affiliates as of the date
of Executive’s termination of employment with the Company or who left the
employment of the Company or its affiliates coincident with, or within six
months prior to or after, the termination of Executive’s employment with the
Company;

provided
that the foregoing restrictions of this Paragraph (3) shall not apply to the
employee who served as Executive’s secretary (or administrative assistant) at
the time of Executive’s termination of employment.

 9
 

 

(4)   During
the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage to cease to work with the Company or its affiliates any consultant
then under contract with the Company or its affiliates.

b.             It is
expressly understood and agreed that although Executive and the Company
consider the restrictions contained in this Section 9 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that
the time or territory or any other restriction contained in this Agreement is
an unenforceable restriction against Executive, the provisions of this
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.  Alternatively, if any court of competent
jurisdiction finds that any restriction contained in this Agreement is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the other
restrictions contained herein.  The
provisions of this Section 9 shall survive the termination of Executive’s
employment for any reason.

10.   Confidentiality;
Intellectual Property.

a.             Confidentiality.

(i) 
Executive will not at any time (whether during or after Executive’s
employment with the Company) (x) retain or use for the benefit, purposes or
account of Executive or any other Person, or (y) disclose, divulge, reveal,
communicate, share, transfer or provide access to any Person outside the
Company (other than its professional advisers who are bound by confidentiality
obligations), any non-public, proprietary or confidential information
(including without limitation trade secrets, research and development,
software, consulting techniques, source codes, databases, inventions,
processes, formulae, methods and methodologies for analyzing and investing in
the stock market, software, databases, technology, designs and other
intellectual property, information concerning finances, investments,
projections, profits, strategies, pricing, costs, products, services, service
providers, vendors, customers, clients, partners, investors, personnel,
compensation, recruiting, training, advertising, sales, marketing, promotions,
government and regulatory activities and approvals), in whatever form or media,
concerning the past, current or future business, activities and operations of
the Company, its subsidiaries or affiliates and/or any third party that has
disclosed or provided any of same to the Company on a confidential basis,
including any such information obtained prior to the Effective Date (“Confidential
Information”) without the prior written authorization of the Chief Executive
Officer of the Company.

(ii)  “Confidential
Information” shall not include any information that is (x) generally known to
the industry or the public other than as a result of Executive’s breach of this
covenant, (y) made legitimately available to Executive by a third party without
breach of any confidentiality obligation, or (z) required by law to be
disclosed; provided that Executive shall give prompt written notice to
the Company of such requirement, disclose no more information than is so
required, and cooperate with any attempts by the Company, at the Company’s
expense, to obtain a protective order or similar treatment.

 10
 

 

(iii)  Upon termination of Executive’s
employment with the Company for any reason, Executive shall (y) cease and not
thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade
secret, trademark, trade name, logo, domain name or other source indicator)
owned or used by the Company or any of its affiliates and (z) immediately
destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers,
plans, computer files, letters and other data) in Executive’s possession or
control (including any of the foregoing stored or located in Executive’s
office, home, laptop or other computer, whether or not company property) that
contain Confidential Information or otherwise relate to the business of the
Company or any of its affiliates, except that Executive may retain only those
portions of any personal notes, notebooks and diaries that do not contain any
Confidential Information.

b.             Intellectual
Property.

(i)  If Executive creates, invents,
designs, develops, contributes to or improves any works of authorship,
inventions, materials, documents or other work product fixed in any tangible
medium of expression (including without limitation, research, reports,
software, databases, systems, applications, presentations, textual works,
content, or audiovisual materials), either alone or with third parties, at any
time during Executive’s employment by the Company and within the scope of such
employment and/or with the use of any the Company resources (“Company Works”),
Executive shall promptly and fully disclose same to the Company and hereby
irrevocably assigns, transfers and conveys, to the maximum extent permitted by
applicable law, all rights and intellectual property rights therein (including
rights under patent, industrial property, copyright, trademark, trade secret,
unfair competition and related laws) to the Company to the extent ownership of
any such rights does not vest originally in the Company.

(ii)  Executive
shall take all reasonably requested actions and execute all reasonably
requested documents (including any licenses or assignments required by a
government contract) at the Company’s expense (but without further
remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s
rights in the Company Works.  If the
Company is unable for any other reason to secure Executive’s signature on any
document for this purpose, then Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Executive’s
agent and attorney in fact, to act for and in Executive’s behalf and stead to
execute any documents and to do all other lawfully permitted acts in connection
with the foregoing.

(iii)  Executive
shall comply with all relevant policies and guidelines of the Company,
including regarding the protection of confidential information and intellectual
property and potential conflicts of interest. 
Executive acknowledges that the Company may amend any such policies and
guidelines from time to time, and that Executive remains at all times bound by
their most current version.

(iv)  The
provisions of Section 10 shall survive the termination of Executive’s
employment for any reason.

 11
 

 

11.   Specific Performance.  Executive acknowledges and agrees that the
Company’s remedies at law for a breach or threatened breach of any of the
provisions of Section 9 or Section 10 would be inadequate and the Company would
suffer irreparable damages as a result of such breach or threatened
breach.  In recognition of this fact,
Executive agrees that, in the event of such a breach or threatened breach, in
addition to any remedies at law, the Company, without posting any bond, shall
be entitled to cease making any payments or providing any benefit otherwise
required by this Agreement and obtain equitable relief in the form of specific
performance, temporary restraining order, temporary or permanent injunction or
any other equitable remedy which may then be available.

12.   Consulting Period. 
In the event that, during the Employment Term and prior to a Change of
Control of the Company (as defined under the Option Plan), Executive’s
employment hereunder is terminated by the Company without Cause or by Executive
for Constructive Termination, and at the time of such termination the Company
is actively engaged in substantive negotiations (and has conducted more than
preliminary due diligence investigations) with respect to a transaction that,
if consummated, would result in a Change of Control of the Company, then
Executive agrees to continue to serve the Company and its Subsidiaries and Affiliates as a consultant for a
period of 12 months following such termination of Executive’s employment and
the Employment Term (the “Consulting Period”). 
In such role, Executive will advise the Chief Executive Officer of the
Company on such matters as the Chief Executive Officer shall reasonably request
(including advising on strategic matters and working with the Chief Executive
Officer towards the successful completion of a Change in Control of the
Company), shall meet with the Board periodically as requested by it, and shall
assume such other responsibilities as the Executive and the Company’s Chief
Executive Officer or the Board shall mutually agree.  Executive shall not be required to provide
such consulting services in any Company office or to maintain any specified or
minimum office hours, but agrees to make himself reasonably available to the
Company in connection with such consulting services.  As consideration for such consulting
services, Executive shall continue to vest in Executive’s then unvested Stock
Options in accordance with the normal vesting schedule during the period of
continuous service (i.e., with the period of consultancy being treated as “continuous
services” for purposes of the Stock Options, and with the potential for accelerated
vesting in connection with a Change of Control
during the Consulting Period,), Executive shall be paid a per diem amount for
his consulting services, and Executive shall be promptly reimbursed for travel,
food, lodging and other out-of pocket expenses reasonably incurred by Executive
in performing such services, in each case on terms mutually agreed to by the
Executive and the Company’s Chief Executive Officer or the Board.  If the Change of Control occurs prior to the
end of such 12 month period, then the Consulting Period shall terminate
immediately following the effective date of the Change of Control.

13.   Exams;
Form U-4’s; Rules and Regulations. 
Executive shall register all of Executive’s securities licenses with
thinkorswim, Inc. and shall remain registered with thinkorswim, Inc. during the
Employment Term.  Executive represents
and warrants to the Company that Executive has passed the following
qualification examinations and Executive’s registrations associated with such
examinations have not lapsed:

[EXECUTIVE
TO COMPLETE]

 12
 

 

 Executive covenants and agrees to promptly
report in writing to the Compliance Department of thinkorswim Inc. (with a copy
to the Chief Executive Officer of the Company) any material changes to
Executive’s Form U-4.

Executive
certifies and agrees that all statements made by Executive on any application
form submitted to the Company for the Company’s use or for filing with any
federal or state authority or any regulatory or self-regulatory organization
are and will be true and accurate to the best of Executive’s knowledge, after
reasonable investigation.

14.   Background Check.  Executive hereby authorizes and requests any
and all former employers, and any other person with whom Executive was
associated in a business capacity, to furnish to the Company or to any other
person authorized to act on the Company’s behalf, any information they have
concerning the background and creditworthiness of Executive.  Executive hereby grants to the Company and to
anyone authorized to act on the Company’s behalf the right to conduct a
thorough investigation of past employment, engagement and associations,
creditworthiness, character, ability, activities and reputation.

15.   Miscellaneous.

a.             Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Illinois
without regard to conflicts of laws principles thereof.

b.             Entire
Agreement/Amendments.  This Agreement
contains the entire understanding of the parties with respect to the employment
of Executive by the Company.  There are
no restrictions, agreements, promises, warranties, covenants or undertakings
between the parties with respect to the subject matter herein other than those
expressly set forth herein.  This
Agreement may not be altered, modified, or amended except by written instrument
signed by the parties hereto.

c.             No
Waiver.  The failure of a party to
insist upon strict adherence to any term of this Agreement on any occasion
shall not be considered a waiver of such party’s rights or deprive such party
of the right thereafter to insist upon strict adherence to that term or any
other term of this Agreement.

d.             Severability.  In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining
provisions of this Agreement shall not be affected thereby.

e.             Assignment.  This Agreement, and all of Executive’s rights
and duties hereunder, shall not be assignable or delegable by Executive.  Any purported assignment or delegation by
Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the Company
to a person or entity which is an affiliate or a successor in interest to
substantially all of the business operations of the Company.  Upon such assignment, the rights and
obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity.

 13
 

 

f.              No
Mitigation; Set-Off.  Executive shall
not be required to mitigate the amount of any payment provided for pursuant to
this Agreement by seeking other employment. 
The Company’s obligation to pay Executive the amounts provided and to
make the arrangements provided hereunder shall be subject to set-off,
counterclaim or recoupment of amounts owed by Executive to the Company or its
affiliates in his capacity as an employee of the Company and its affiliates.

g.             Compliance with
IRC Section 409A.  Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s termination
of employment with the Company Executive is a “specified employee” as defined
in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and the deferral of the commencement of any payments or benefits otherwise
payable hereunder as a result of such termination of employment is necessary in
order to prevent any accelerated or additional tax under Section 409A of the
Code, then the Company will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in such payments or
benefits ultimately paid or provided to Executive) until the date that is six
months following Executive’s termination of employment with the Company (or the
earliest date as is permitted under Section 409A of the Code) and (ii) if any
other payments of money or other benefits due to Executive hereunder could
cause the application of an accelerated or additional tax under Section 409A of
the Code, such payments or other benefits shall be deferred if deferral will
make such payment or other benefits compliant under Section 409A of the Code,
or otherwise such payment or other benefits shall be restructured, to the
extent possible without any additional liability for the Company, in a manner,
determined by the Chief Executive Officer of the Company, that does not cause
such an accelerated or additional tax.

h.             Successors;
Binding Agreement.  This Agreement
shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

i.              Notice.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered by hand or overnight
courier or three days after it has been mailed by United States registered
mail, return receipt requested, postage prepaid, addressed to the respective
addresses set forth below in this Agreement, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except
that notice of change of address shall be effective only upon receipt.

If to the Company:

INVESTools Inc.

13947 South Minuteman Drive

Draper, UT 84020

Attention: Chief Financial Officer

Fax 801-816-6010

Attention:

 14
 

 

If to Executive:

To the
most recent address of Executive set forth in the personnel records of the
Company.

j.              Executive
Representation.  Executive hereby
represents to the Company that the execution and delivery of this Agreement by
Executive and the Company and the performance by Executive of Executive’s
duties hereunder shall not constitute a breach of, or otherwise contravene, the
terms of any employment agreement or other agreement or policy to which
Executive is a party or otherwise bound.

k.             Prior
Agreements.  This Agreement
supercedes all prior agreements and understandings (including verbal
agreements) between Executive and the Company and/or its affiliates regarding
the terms and conditions of Executive’s employment with the Company and/or its
affiliates.

l.              Cooperation.  Executive shall provide Executive’s
reasonable cooperation in connection with any action or proceeding (or any
appeal from any action or proceeding) which relates to events occurring during
Executive’s employment hereunder.  This
provision shall survive any termination of this Agreement.

m.            Withholding
Taxes.  The Company may withhold from
any amounts payable under this Agreement such Federal, state and local taxes as
may be required to be withheld pursuant to any applicable law or regulation.

n.             Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 15
 

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the day and year first
above written.

	
  INVESTOOLS INC.

  	
   

  	
  TOM SOSNOFF

  
	
   

  	
   

  	
   

  
	
  /s/ Lee K. Barba

  	
   

  	
  /s/ Tom Sosnoff

  
	
  By: Lee K. Barba

  	
   

  	
   

  
	
  Title: Chief Executive Officer

  	
   

  	
   

  

 

 16

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