Document:

Unassociated Document

    FIRST
      AMENDMENT TO AGREEMENT AND PLAN OF MERGER

    

    This
      First Amendment to Agreement and Plan of Merger (this “Amendment”),
      is
      made and entered into as of December 8, 2006, by and among ISRAEL
      TECHNOLOGY ACQUISITION CORP.,
      a
      Delaware corporation (“Parent”),
      ITAC
      ACQUISITION SUBSIDIARY CORP.,
      a
      Delaware corporation and a wholly-owned subsidiary of Parent (“Merger
      Sub”),
      and
IXI
      MOBILE, INC.,
      a
      Delaware corporation (“Company”).
      The
      parties hereto hereby agree as follows:

    

    RECITALS

    

    WHEREAS,
      the
      parties have previously entered into that certain Agreement and Plan of Merger
      dated as of February 28, 2006 (the "Merger
      Agreement");
      and

    

    WHEREAS,
      the
      parties now wish to amend the Merger Agreement as set forth in this Amendment
      so
      as to reduce the ownership percentage of the stockholders of the Company and
      Derivative Holders required to be subject to lockup restrictions with respect
      to
      any shares of Parent Common Stock that such holders may receive pursuant to
      the
      Merger Agreement from 95% to 90% (on a fully diluted basis) and so as to clarify
      the type of lock-up agreement required by the Parent to be executed by such
      holders. 

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing and for other good and valuable consideration,
      the receipt and adequacy of which are hereby acknowledged, the parties hereby
      agree as follows:

    

    Unless
      otherwise defined below, all capitalized terms herein shall have the meanings
      assigned to such terms in the Merger Agreement

    

    1. Amendment
      of the Merger Agreement.

     

    1.1 Section
      6.20 of the Merger Agreement is hereby amended and restated in its entirety
      to
      read as follows:

     

    "6.20  Stockholder
      Transfer Restrictions.
      Prior
      to the Effective Time, the Company shall cause (a) each of the executive
      officers of the Company to enter into an Executive Lock-Up Agreement
      substantially in the form attached hereto as Exhibit D (an “Executive Lock-Up
      Agreement”) and (b) each of the stockholders of the Company, holders of Employee
      Options and holders of Company Warrants listed on Schedule 6.20 to enter into
      a
      Stockholder Lock-Up Agreement substantially in the form attached hereto as
      Exhibit E (a “Stockholder Lock-Up Agreement” and together with the Executive
      Lock-Up Agreement, the “Lock-Up Agreements”). The Company agrees to use its
      reasonable best efforts to cause all stockholders of the Company , other than
      those listed on Schedule 6.20, to enter into a Stockholder Lock-Up Agreement
      or
      be otherwise subject to restrictions with respect to the transfer of any shares
      of Parent Common Stock that such holders may receive pursuant to this Agreement
      for a period of not less than one hundred eighty (180) days after the Closing.
      The certificates representing the shares of Parent Common Stock to be received
      by any stockholder of the Company, holder of Employee Options or holders of
      Company Warrants who has executed a Stockholder Lock-Up Agreement, an Executive
      Lock-Up Agreement or any other lock-up agreement shall bear legends to the
      effect that such shares of Parent Common Stock may not be transferred except
      upon compliance with the registration requirements of the Securities Act (or
      an
      exemption therefrom) or the provisions of the applicable Lock-Up
      Agreement."

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    1.2 Section
      7.3(o) of the Merger Agreement is hereby amended and restated in its entirety
      to
      read as follows: 

     

    "7.3(o)  Transfer
      Restrictions.
      Immediately prior to the Closing, stockholders of the Company and Derivative
      Holders who hold not less than 90% of the issued and outstanding shares of
      Company Common Stock on a fully diluted basis shall either (i) be subject to
      the
      restrictions contained in a Lock-Up Agreement or (ii) be otherwise subject
      to
      restrictions with respect to the transfer of any shares of Parent Common Stock
      that such holders may receive pursuant to this Agreement for a period of not
      less than one hundred eighty (180) days after the Closing."

    

    2. No
      Other Modifications.
      Except
      as expressly set forth herein, all other terms and conditions of the Merger
      Agreement shall remain in full force and effect.

     

    3. Miscellaneous.
      

     

    3.1 Counterparts;
      Fax Signatures.
      This
      Amendment may be executed in counterparts, each of which shall constitute an
      original, but all of which together shall constitute one and the same Amendment.
      Originally executed counterparts may be delivered by facsimile and any such
      delivery shall be valid for all purposes as delivery of a manual signature
      and
      equally admissible in any legal proceedings to which any of the Company, the
      Parent Guarantor, or the Lender is a party.

     

    3.2 Severability.
      If any
      provision of this Amendment or the application thereof, shall for any reason
      and
      to any extent be determined by a court of competent jurisdiction to be invalid
      or unenforceable under applicable law, the remaining provisions of this
      Amendment shall be interpreted so as best to reasonably effect the intent of
      the
      parties hereto.

     

    3.3 Entire
      Agreement.
      This
      Amendment, together with the Merger Agreement and all exhibits thereto,
      constitute the entire understanding and agreement of the parties with respect
      to
      the transactions contemplated herein and supersede all prior and contemporaneous
      understandings and agreements, whether written or oral, with respect to such
      transactions.

     

    3.4 Governing
      Law.
      This
      Amendment shall be governed in all respects by Section 10.7 of the Merger
      Agreement.

     

    [Remainder
      of Page Intentionally Left Blank]

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the parties have executed this First Amendment to Merger
      Agreement as of the date first written above. 

    

    

    
      	 	
              ISRAEL
                TECHNOLOGY ACQUISITION CORP.

            
	 	 	 
	 	
              By:

            	
              /s/
                Israel Frieder

            
	 	 	
              Name:
                Israel Frieder

            
	 	 	
              Title:
                Chairman

            
	 	 	 
	 	 	 
	 	
              ITAC
                ACQUISITION SUBSIDIARY CORP.

            
	 	 	 
	 	
              By:

            	
              /s/
                Israel Frieder

            
	 	 	
              Name:
                Israel Frieder

            
	 	 	
              Title:
                Chairman

            
	 	 	 
	 	 	 
	 	
              IXI
                MOBILE, INC.

            
	 	 	 
	 	
              By:

            	
              /s/
                Amit Haller

            
	 	 	
              Name:
                Amit Haller

            
	 	 	
              Title:
                Chief Executive Officer

            

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to IXI/ITAC Merger
      Agreement]Unassociated Document

    Resignation
      and Severance Agreement

    and
      General Release

    

    Resignation
      and Severance Agreement
      and General Release
      (the
      "Agreement") made and executed as of December ___, 2006, by and between Clarus
      Corporation (the “Company") with offices at One Landmark Square, 22nd
      Floor,
      Stamford, Connecticut 06901, and Nigel P. Ekern ("Employee") residing at 741
      Hollow Tree Ridge Road, Darien, Connecticut 06820.

    

    W
      I T N E S S E T H

    

    Whereas,
      Employee
      is employed by the Company as Chief Administrative Officer of the Company
      pursuant to an agreement dated as of December 6, 2002, between the Company
      and
      the Employee, as amended by an agreement dated as of May 1, 2006, between the
      Company and the Employee (collectively, the "Employment
      Agreement");

    

    Whereas,
      the
      Employee desires to voluntarily resign from his position effective as of
      December 31, 2006, but nonetheless remain an employee of the Company until
      December 31, 2006 (the “End Date”) and accept the severance and benefits set
      forth herein in lieu of all severance and benefits otherwise provided in the
      Employment Agreement;

    

    Whereas,
      Company
      desires to accept such resignation, to allow Employee to remain an employee
      of
      the Company until the End Date and to provide Employee with the severance and
      benefits set forth herein; 

    

    Whereas,
      the
      parties desire to set forth their agreement and understanding concerning the
      termination of the Employee’s employment.

    

    Now,
      Therefore,
      in
      consideration of the foregoing premises and the mutual promises herein
      contained, it is agreed as follows: 

    

    1. Separation
      from Employment, etc.

    

    (a) Resignation.
      The
      parties acknowledge and agree that Employee’s resignation as an officer of the
      Company and the Company’s direct and indirect subsidiaries and affiliates shall
      be effective as of December 31, 2006. The parties acknowledge and agree that
      Employee’s resignation as an employee of the Company and the Company’s direct
      and indirect subsidiaries and affiliates, and Employee’s separation from
      employment with the Company and all of the Company’s direct or indirect
      subsidiaries or affiliates shall be effective as of the End Date; provided,
      however, that until the Company has filed its Annual Report on Form 10-K for
      the
      year ending December 31, 2006, the Employee will make himself available to
      the
      Company as and when reasonably requested by the Company to facilitate the
      transition of administration of the Company to other executives and to prepare
      such Annual Report. The Company shall continue to pay the Employee all salary
      and benefits to which he is entitled under his Employment Agreement, subject
      to
      the Company’s continuing customary payroll practices, until December 31,
      2006.

    

    
      
         

      

      
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    (b) Confidentiality.
      For
      purposes of this Agreement, all references to the Company shall be deemed to
      include all of the Company's affiliates and direct and indirect
      subsidiaries.

    

    (i) Confidential
      Information.
      The
      Employee acknowledges that as a result of his employment with the Company,
      the
      Employee has and will continue to have knowledge of, and access to, proprietary
      and confidential information of the Company (in written, graphic, electronic,
      oral and other forms, and in electronic, magnetic, paper and other media),
      including, without limitation, information regarding the Company’s assets,
      properties, business, plans, strategies, operations, and business and product
      development, including without limitation, acquisitions and new lines of
      business, trade secrets, novel ideas, inventions, know-how, customers, business
      affiliates, techniques, training materials, algorithms, computer programs
      (including source codes and object codes), designs, formulas, test plans, data,
      analyses and results, services, costs, finances, financial statements and
      projections, financial and marketing information, markets, sales, vendors,
      suppliers, personnel, pricing policies, plans for future developments,
      acquisition or disposition strategies, specifications, technology, research
      and
      development, and other similar information in respect of the Company
      (collectively, the "Confidential Information"), and that such information,
      even
      though it may be contributed, developed or acquired by the Employee, constitutes
      valuable, special and unique assets of the Company developed at great expense
      which are the exclusive property of the Company. Ac-cord-ingly, the Employee
      shall not, at any time, either during the term of his employment with the
      Company or subsequent to the End Date, use (whether for personal gain or
      otherwise), reveal, report, publish, transfer or otherwise disclose to any
      person, corporation or other entity, any of the Con-fi-dential Information
      without the prior written consent of the Company, except to responsible officers
      and employees of the Company and other responsible persons who are in a
      contractual or fiduciary relationship with the Company and who have a need
      for
      such information for pur-poses in the best interests of the Company, and except
      (i) for such information which is or be-comes of general public knowledge
      from authorized sources other than the Employee, and (ii) as may be
      required by law, regulation, legal proceeding or court order. The Employee
      acknow-ledges that the Company would not enter into this Agreement without
      the
      assurance that all such Confi-dential Information will be used for the exclusive
      benefit of the Company.

    

    (ii) Return
      of Confidential Information.
      The
      Employee shall promptly, but in any event no later than the End Date, deliver
      to
      the Company all drawings, manuals, letters, notes, notebooks, reports and copies
      thereof and all other materials relating to the Company's business, including
      without limitation any materials incorporating Confidential Information, which
      are in the Employee's possession or control. In the event that any such
      materials are provided to Employee in connection with Section 9(F) of this
      Agreement during the six month period following the End Date, then Employee
      shall, within 10 business days following the expiration of such six-month
      period, deliver to the Company all such materials which are in Employee’s
      possession or control, except for such having a de minimus
      value to
      the Company.

    

    (iii) Return
      of Company Property.
      The
      Employee covenants and agrees that on or before the End Date, he will return
      to
      the Company all property of the Company which has theretofore been furnished
      to
      him, including without limitation cell phones, computers, Blackberries and
      other
      equipment.

    

    
      
         

      

      
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    (iv) Inventions,
      etc.
      The
      Employee will promptly disclose to the Com-pany all designs, processes,
      inventions, improvements, discoveries and other information related to the
      business of the Company (collectively "developments") conceived, developed
      or acquired by the Employee alone or with others during the term of the
      Employee's employment with the Company, whether or not conceived during regular
      working hours, through the use of Company time, material or facilities or
      otherwise, whether prior to or within eighteen (18) months after the End Date.
      All such developments shall be the sole and exclusive property of the Company,
      and upon request the Employee shall deliver to the Com-pany all draw-ings,
      models and other data and records relating to such developments. In the event
      any such developments shall be deemed by the Company to be patentable or
      copyrightable, the Employee shall, at the expense of the Company, assist the
      Company in obtaining any patents or copyrights thereon and execute all documents
      and do all other things necessary or proper to obtain letters patent and
      copyrights and to vest the Company with full title thereto.

    

    (c) Non-competition.
      The
      Employee will not utilize his special knowledge of the business of the Company
      and his rela-tionships with customers, suppliers of the Company and others
      to
      compete with the Company. Subject to the fourth sentence of this Section 1
      (c)
      for a period of three years from the date hereof, the Employee shall not engage,
      directly or in-directly, or have an interest, directly or indirectly, anywhere
      in the United States of America or any other geographic area where the Company
      does business or in which its products or services are marketed, alone or in
      association with others, as principal, officer, agent, employee, director,
      partner or stockholder, or through the investment of capital, lending of money
      or property, ren-dering of services or otherwise, in any business competitive
      with or substantially similar to that engaged in or, to the knowledge of the
      Employee, contemplated to be engaged in, by the Company or any vendor, supplier
      or distributor of the Company during the term of Employee’s employment by the
      Company, or any line of business or acquisition that the Company has obtained
      due diligence or other information on during Employee’s employment with the
      Company. Subject to the fourth sentence of this Section 1 (c) during the same
      period, the Employee shall not, and shall not permit any of his employees,
      agents or others under his control to, directly or indirectly, on behalf of
      himself or any other person, (i) call upon, accept business from, or
      solicit the business of any person who is, or who had been at any time during
      the preceding two (2) years, a customer of the Company or any successor to
      the
      business of the Company, or otherwise divert or attempt to divert any busi-ness
      from the Company or any such successor, or (ii) directly or indirectly
      recruit or other-wise solicit or induce any person who is an employee of, or
      otherwise engaged by, the Company or any successor to the business of the
      Company to terminate his or her employment or other rela-tionship with the
      Company or such successor, or hire any person who has left the employ of the
      Company or any such successor during the preceding two (2) years. The
      Employee shall not at any time, directly or indirectly, use or purport to
      authorize any person to use any name, mark, logo, trade dress or other
      identifying words or images which are the same as or similar to those used
      at
      any time by the Company in connection with any product or service, whether
      or
      not such use would be in a business competitive with that of the Company. Any
      breach or violation by the Employee of the provisions of Section 1(b)(iv) or
      this Section 1(c) shall toll the running of any time periods set forth in this
      Section 1(c) for the duration of any such breach or violation. Notwithstanding
      any provision in this Agreement to the contrary, the parties hereto agree and
      understand that the ownership by the Employee of five percent (5%) or less
      of
      the stock of any company listed on a national securities exchange shall not
      be
      deemed a violation of this Section 1(c) and it being further understood that
      nothing herein shall prevent the Employee from engaging in the business of
      investing, reinvesting or trading in securities or other financial
      instruments.

    

    
      
         

      

      
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    (d) Remedies.
      The
      restrictions set forth in Sections 1(b) and 1(c) are con-sidered by the parties
      to be fair and reasonable. The Employee acknowledges that the restrictions
      contained in Sections 1(b) and 1(c) will not prevent him from earning a
      livelihood. The Em-ployee further acknowledges that the Company would be
      irreparably harmed and that monetary damages would not provide an adequate
      remedy in the event of a breach of the provisions of Sections 1(b) or 1(c).
      Accordingly, the Employee agrees that, in addition to any other remedies
      available to the Company, the Company (i) shall be entitled to specific
      performance, injunction, and other equitable relief to secure the enforcement
      of
      such provisions, (ii) shall not be required to post bond in connection with
      seeking any such equitable remedies, and (iii) shall be entitled to receive
      reimbursement from the Employee for all reasonable attorneys' fees and expenses
      in-curred by the Company in enforcing such provisions if the Company prevails
      in
      any action brought to enforce Sections 1(b) or 1(c) hereof. If any provisions
      of
      Sections 1(b), 1(c), or 1(d) relating to the time period, scope of activities
      or
      geographic area of restrictions is declared by a court of competent jurisdiction
      to exceed the maximum permissible time period, scope of acti-vities or
      geographic area, the maximum time period, scope of activities or geographic
      area, as the case may be, shall be reduced to the maximum which such court
      deems
      enforceable. If any pro-visions of Sections 1(b), 1(c), or 1(d) other than
      those
      described in the preceding sentence are adjudicated to be invalid or
      unenforceable, the invalid or unenforceable provisions shall be deemed amended
      (with respect only to the jurisdiction in which adjudication is made) in such
      manner as to render them enforceable and to effectuate as nearly as possible
      the
      original inten-tions and agreement of the parties.

    

    2. Employee’s
      and Company’s Representations and Covenants.
      The
      Employee rep-re-sents that he has not filed any claims, complaints, charges
      or
      lawsuits (collectively “Actions”) against the Company and any parent, subsidiary
      and related corporations and divi-sions of any of them, and the members, owners,
      stockholders, predecessors, successors, assigns, agents, direc-tors, officers,
      employees and representatives of any of them) with any governmental agency,
      arbitrator, or any court with respect to his employment or separation from
      employment, and that he will not do so at any time hereafter; provided, however,
      this clause shall not limit the Em-ployee from filing a lawsuit for the sole
      purpose of enforcing his rights under this Agreement. The Company represents
      that it has not filed any Actions against the Employee with any govern-mental
      agency, arbitrator, or any court with respect to his employment or separation
      from em-ploy-ment as of the date hereof

    

    3. Acknowledgment
      of Payment and Receipt.
      The
      parties acknowledge that all pay-ments for wages and benefits due to the
      Employee through the date hereof, including payment for all accrued vacation
      pay
      and any expense reimbursements, have been paid by the Company and received
      by
      the Employee, and that there are no further obligations of the Company to the
      Employee except as specifically set forth in this Agreement. The parties
      acknowledge that Employee may incur certain business expenses between the date
      hereof and the End Date, and the Company agrees to reimburse Employee for all
      such business expenses that were properly incurred on behalf of Company business
      upon submission of appropriate receipts therefor.

     

    
      
         

      

      
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    4. Severance
      Payments and Benefits to Employee Not Required by Law or
      Contract.
      

    

    In
      full
      settlement of all Claims as hereinafter defined in Section 10.A (“Release of the
      Com-pany”), and in consideration of the obligations, agreements and undertakings
      of the Employee herein, including, without limitation, the confidentiality
      and
      non-competition provisions and release of the Company by the Employee, and,
      provided that Employee has not breached and is not then in breach of his
      representations, warranties, covenants or obligations under this Agreement,and
      with respect to a breach of Sections 1(b)(ii), (iii) or (iv), has not cured
      any
      such breach within 10 days after written notice thereof is sent by the Company,
      the Company shall provide the following to the Employee (hereinafter
      collectively referred to as “Severance Benefits”):

    

    A. (i) Commencing
      January 1, 2007, the Company shall make severance payments in the aggregate
      amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000), which shall
      be payable to Employee in accordance with the Company's usual payroll practices,
      but not less frequently than once each month, commencing with the first pay
      period ending after January 1, 2007, in each case payable subject to Sections
      16
      ("Right of Setoff and Liquidated Damages") and 17 ("IRC
      Section 409A") hereof,
      and subject to withholding for applicable taxes and other mutually agreed
      amounts. Such payments shall continue notwithstanding Employee's employment
      with
      another company, provided that such employment does not violate the terms of
      this Agreement or prevent the Employee's full compliance with this Agreement
      and
      his obligations hereunder.

    

    (ii) Annexed
      hereto as Exhibit A, is a complete list of all options and restricted stock
      grants presently outstanding to Employee. All stock options granted to the
      Employee which are not presently vested as set forth in columns 1 and 2 of
      Exhibit ‘A’ shall be deemed fully vested as of December 15, 2006 (the "Option
      Vesting Date"). Employee shall be considered an “active” participant under the
      Option agreement until December 31, 2007. The parties agree that all stock
      options shall terminate on December 31, 2007, unless sooner exercised by
      Employee or terminated in accordance with their terms. All restricted stock
      awards and all shares of restricted stock which are not presently vested as
      set
      forth in column 3 of Exhibit A shall vest in full as of January 1, 2007 (the
      "RSA Vesting Date"). All restrictions on transfer with respect to the shares
      acquirable upon exercise of any options shall terminate as of the Option Vesting
      Date, and all such restrictions with respect to shares of restricted stock
      shall
      terminate as of the RSA Vesting Date, in each case, except as otherwise required
      by law. The Employee agrees and acknowledges that he will not have the right
      to
      pay the with-holding taxes due upon exercise of the vested options or upon
      vesting of shares of restricted stock on a net cash basis, but rather, Employee
      shall pay to the Company any tax due in respect of the exercise of options
      or
      the vesting of restricted shares of stock in cash, or at the Company's election,
      by retaining or receiving shares of Company stock owned by the Employee having
      a
      fair market value on the Vesting Date equal to the amount of taxes required
      to
      be withheld, consistent with past practice.

    

    B. Effective
      on the End Date, (i) the Employee shall not be entitled to make any
      additional contributions to the Company’s 401(k) Plan; and (ii) the
      Company shall not make any further payments or contribute matching funds to
      the
      Employee’s 401(k) account.

    

    
      
         

      

      
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    5. COBRA
      Rights and Assignment of Life Insurance.
      A.
      The
      Employee shall be entitled to elect rights under COBRA to which he is legally
      entitled, at his expense. The Employee shall further be entitled to such
      continuing rights under all other employee benefit plans of the Company as
      may
      be provided to terminated employees in such plans, as he may timely elect in
      the
      manner provided under such plans.

    

    B. If
      any
      insurance policy owned by the Company on the life of the Em-ployee is assignable
      by its terms, the Company shall, upon Employee's written notice, assign such
      policy to the Employee, and the Employee shall pay the premiums therefor for
      periods on and after the End Date. Any prepaid premiums by the Company and
      cash
      surrender value accruing on or before the End Date shall be reimbursed by the
      Employee to the Company upon the effectiveness of any such
      assignment.

    

    6. No
      Re-Employment.
      The
      Employee acknowledges and agrees that the Company and any of its subsidiaries,
      affiliates or related companies are under no legal or contractual duty to
      re-employ, rehire or retain him in any capacity and that he will not apply
      for
      re-employment with the Company or any of its subsidiaries, affiliates or related
      companies in any capacity. Without limiting the generality of the foregoing,
      Employee will not reapply and the Company and its subsidiaries, affiliates
      or
      related companies will have no legal or contractual duty to hire or retain
      the
      Employee in any capacity, whether as an employee, consultant, independent
      contractor, distributor, broker, finder or in any other commercial
      relationship.

    

    7. No
      Denigration.
      The
      Employee shall not directly or indirectly denigrate or de-fame the Company,
      its
      subsidiaries, affiliates and related companies, including, without limita-tion,
      their respective officers, directors, agents or employees, or cause any negative
      publicity to be disseminated about the Company, its subsidiaries, affiliates
      and
      related companies including, without limitation, their respective officers,
      directors, agents or employees, and their respective products and services
      either orally or in writing. 

    

    8. [Intentionally
      Omitted]

    

    9. Employee’s
      Agreements and Representations.
      The
      Employee’s right to receive the Severance Benefits set forth in Section 4 and
      the benefits (other than as required by law) under Section 5 above are
      specifically contingent on the following agreements, covenants and
      representations:

    

    A. Unless
      in
      connection with obligations pursuant to Section 9 hereof or otherwise at the
      direction of the Company or any of its officers or directors, the Employee
      agrees to refrain from making any internal use of the Company e-mail and voice
      mail systems effective on the End Date and acknowledges that the Company will
      terminate his access to these systems effective on the End Date, unless the
      Company chooses to extend access beyond such date.

    

    B. Effective
      after the End Date, except as otherwise specifically provided herein, the
      Employee shall have no Company property in his possession or control, and on
      or
      before the End Date, he shall have returned all Company property in his
      possession or control to the Company, except for such having de
      minimus
      value to
      the Company. .

    

    
      
         

      

      
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    C. Without
      limiting the generality of Section 9.B hereof, the Employee represents, warrants
      and covenants that except as otherwise specifically provided herein, he has
      or
      will have, on or before the End Date, returned to the Company all Company
      property, in-cluding, without limitation, all Company files, records and other
      papers in Employee’s pos-ses-sion or control, including, without limitation,
      Employee’s notes, analyses and other work pro-duct. The Employee further
      represents and warrants that all charges for expense reimburse-ments submitted
      or to be submitted on or before the End Date by Employee, and all charges paid
      or to be paid prior to the End Date by the Company on Employee’s behalf, have
      been for valid and proper Company-related business expenses, and in the event
      of
      any breach of this representation, the Company shall have the right, among
      other
      things, to set-off the amount of any such impro-per charges against the
      Company’s payment obligations to Employee hereunder.

    

    D. The
      Employee represents that he has not violated any applicable laws, rules or
      regulations in the course of his employment with the Company and the performance
      of his duties.

    

    E. The
      Employee acknowledges that he has no right, title or interest in or to any
      intellectual property of the Company, including, but not limited to, any patent,
      trademark, trade dress, service mark, copyright, design or products and shall
      not assert any claim thereto.

    

    F. Until
      the
      Company's Annual Report on Form 10-K for the year ending December 31, 2006,
      is
      filed with the Securities and Exchange Commission, the Employee shall:
      (i) assist in the orderly transition of the Employee’s former
      responsibilities as the Chief Administrative Officer of the Company to such
      officers or managers as the Chief Executive Officer or the Board of Directors
      (the “Board”) may request from time to time; (ii) render such services to
      the Company as may reasonably be requested by the Chief Executive Officer or
      the
      Board from time to time; and (iii) assist the Company’s management and
      Board on various Company matters, including but not limited to the preparation
      and filing with the Securities and Exchange Commission of the Company's Annual
      Report on Form 10-K for the year ending December 31, 2006, all as may reasonably
      be requested by the Board from time to time, in each case at such times as
      will
      not unduly interfere with the Employee's other business obligations..

    

    G. For
      a
      period of three years commencing from the End Date, the Employee agrees to
      assist the Company in connection with any legal action, arbitration,
      administrative proceeding, investigation or other action (each, a “Proceeding”)
      in which he may be requested to testify, consult or otherwise collaborate with
      the Company. The Company shall reimburse the Employee for his reasonable
      out-of-pocket expenses incurred in connection with providing such assistance,
      which expenses shall be pre-approved by the Company prior to being incurred
      by
      the Employee and which pre-approval shall not be unreasonably withheld,
      conditioned or delayed. In addition to the reimbursement of expenses as set
      forth above, the Company will reimburse Employee at the per diem rate of
      $1,000.00 per day in the event that Employee’s services are requested pursuant
      to this Section 9.G during the period commencing one year after the End Date
      and
      ending three years after the End Date which will not unduly burden the
      Employee.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    10. General
      Release.

    

    A. Release
      of the Company.
      In
      consideration of the Severance Benefits provided hereunder, and the covenants,
      obligations and undertakings of the Company hereunder, the Employee irrevocably,
      unconditionally and generally releases, acquits and forever discharges the
      Company, any related corporation, entity and affiliates of each of the
      foregoing, and each of its members, owners, stockholders, predecessors,
      successors, assigns, agents, directors, officers, employees, representatives
      and
      affiliates thereof, and all persons acting by, through, under or in concert
      with
      any of them (collectively “Releasees”) from any and all claims, charges,
      complaints, liabilities, obligations, promises, agreements, controversies,
      damages, actions, causes of action, suits, rights, demands, costs, losses,
      debts
      and expenses (including reasonable attorneys’ fees and costs actually incurred)
      of any nature whatsoever (collectively, “Claims”), and arising out of or
      relating to any matter or thing whatsoever including, but not limited to, any
      and all Claims whatsoever arising from the Employment Agreement, and the
      Employee’s employment with and separation from the Company (including without
      limitation, wrongful discharge and breach of contract), any and all Claims
      arising from federal, state or local statute or regulation (including without
      limitation Title VII of the Civil Rights Act of 1964, as amended, Americans
      with
      Disabilities Act, Age Discrimination in Employment Act, Family & Medical
      Leave Act, Fair Labor Standards Act, state and local laws against
      discrimination, state and local wage and hour and state and local labor laws),
      and any and all Claims arising under common law, whether in contract or in
      tort.
      Excluded from the scope of this Release of the Company are the Company’s
      obligations under this Agreement and the Company’s indemnity obligations under
      the Delaware General Corporation Law and the by-laws of the Company for the
      benefit of officers and directors, provided that all applicable conditions
      to
      such indemnification have been satisfied. The Company shall make available
      to
      Employee any director and officer liability insurance policy coverage that
      had
      been maintained during Employee’s employment with the Company, provided Employee
      has satisfied all coverage requirements.

    

    B. The
      scope
      of the release above given is from the beginning of the world through the date
      of this Agreement and binds the Employee, his, heirs, distributees, successors,
      assigns, estate and representatives. 

    

    11. Complete
      Agreement, No Representations, No Modification.
      All
      prior understandings between the parties are merged herein; provided, however,
      that except as modified herein that certain Indemnification Agreement dated
      as
      of December 6, 2002 between the parties and any stock option or grant agreements
      shall remain in effect; and in the event of any conflict between any such
      agreement and this Agreement, the provisions of this Agreement shall control;
      no
      representations or promises have been made by either the Company or the Employee
      to the other unless set forth herein; and any modification or termination of
      this Agreement must be in writing signed by the party to be
      charged.

     

    12. Acknowledgment
      of Statutory Notice.
      The
      Employee acknowledges that before execution of this Agreement, he received
      a
      copy of this Agreement with a cover letter from the Company advising:
      (a) that he has the right, and is encouraged, to consult an attorney with
      regard to this Agreement and (b) that he had twenty-one (21) days to
      consider the Agreement and (c) that once the Agreement was signed, he could
      revoke it during the immediate seven (7) days following the signing of this
      Agreement. The Employee acknowledges that he has been en-couraged by the Company
      to consult with an attorney of his choosing in the negotiation of this Agreement
      and has so consulted with an attorney to the extent the Employee has deemed
      appropriate. The Employee further acknowledges that notwithstanding his right
      to
      consider this Agreement for 21 days, if he has signed this Agreement sooner
      than
      the expiration of said 21 days, he has done so knowingly and voluntarily, and
      expressly waives his right to consider this Agreement for the balance of the
      21
      days.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    13. Right
      to Revoke.
      This
      Agreement may be revoked by the Employee within seven (7) days of its execution
      by written notice to the Company. In the event that the Employee exercises
      his
      right to revoke this Agreement within such 7 day period, the entire Agreement
      including, without limitation, the Company's obligation to pay the Severance
      Benefits, shall be null and void. The Employee’s and the Company’s payment
      obligations to each other at the signing of this Agreement shall be deferred
      until the expiration of the seven (7) day period referred to herein, and such
      payments shall be due and payable immediately thereafter, provided that such
      period has expired and Employee has not exercised such right of
      revocation.

    

    14. Counterpart
      Originals.
      This
      Agreement may be executed in identical counterpart documents each of which
      shall
      be deemed an original, but all of which together shall constitute one and the
      same agreement. Facsimile signatures shall be deemed acceptable and binding
      on
      the parties.

     

    15. Notice.
      Any
      demand, request or notice (collectively "Notice") served pursuant to this
      Agreement must be written, and may be served personally, or by certified mail,
      return receipt requested, on a party at the addresses set forth in the opening
      paragraph of this Agreement, or such different address a party may designate
      by
      Notice. Any Notice served upon the Company must be directed to the Chairman
      of
      the Board or President, with a copy to Robert L. Lawrence, Esq., Kane Kessler,
      P.C., 1350 Avenue of the Americas, New York, New York 10019. Copies of Notices
      to Employee shall be directed to Employee at the address set forth
      above.

    

    16. Right
      of Set-Off and Liquidated Damages.
      If the
      Employee breaches any repre-sentation, warranty, covenant or obligation
      contained in this Agreement, not cured within any applicable grace period,
      or if
      the Company in good faith and in its commercially reasonable judgment believes
      that either (i) Employee has breached any representation, warranty,
      covenant or obligation contained in this Agreement, or (ii) during his
      tenure with the Company, Employee has conducted himself in a manner that
      con-sti-tuted a breach of his duties as an employee and/or Chief Administrative
      Officer of the Com-pany, then (x) the Company’s obligation to pay or
      otherwise make any Severance Payments to Employee shall terminate,
      (y) because it would be difficult to quantify the damages suffered by the
      Company from such breach or con-duct, Employee agrees to pay to the Company,
      as
      liquidated damages, an amount equal to the payments received hereunder by the
      Employee, and shall return to the Company all shares of re-stricted stock,
      whether vested or unvested, which were awarded to him, or, if such shares have
      been sold, the proceeds thereof, and (z) the Company’s obligations under
      this Agreement shall terminate but Employee’s obligations under this Agree-ment
      shall remain in full force and effect. 

    

    17. IRC
      Section 409A.
      The
      parties to this Agreement intend that the Agreement shall comply with Section
      409A of the Internal Revenue Code of 1986, as amended (the “Code”), where
      applicable, and this Agreement shall be interpreted in a manner consistent
      with
      that intention. Notwithstanding any contrary or inconsistent provision of this
      Agreement, no pay-ment or other distribution required to be made to the Employee
      hereunder (including any pay-ment of cash, any transfer of property or any
      provision of taxable benefits) as a result of the Em-ployee's termination with
      the Company shall be made prior to the earliest date that Employee may receive
      such payments without a penalty, remedial measure or similar effect being
      imposed against the Company or the Employee pursuant to Section 409A of the
      Code.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    18. Severability.
      In the
      event that any one or more of the provisions contained in this Agreement shall
      be declared invalid, void or unenforceable, the remainder of the provisions
      of
      this Agreement shall remain in full force and effect, and such invalid, void
      or
      unenforceable pro-vision shall be interpreted as closely as possible to the
      manner in which it was written.

    

    19. Applicable
      Law.
      This
      Agreement has been negotiated in and shall be deemed exe-cuted and delivered
      within the State of New York and is made in contemplation of its inter-pretation
      and effect being construed in accordance with the laws of the State of New
      York,
      appli-cable to contracts fully executed, delivered and performed in the State
      of
      New York, and it is ex-pressly agreed that it shall be construed in accordance
      with the laws of the State of New York with-out giving effect to the principles
      of its conflicts of laws rules. All litigation arising out of or relating to
      this Agreement or any of the transactions contemplated hereby shall be brought
      exclu-sively in the Federal or State courts of the State of New York, County
      of
      New York, and the par-ties consent to personal jurisdiction therein, and further
      consent to service by certified mail, re-turn receipt requested.

    

    20. Headings,
      etc.
      The
      headings and captions contained in this Agreement are for convenience of
      reference only and in no way define, limit or describe the scope or intent
      of
      this Agreement or in any way affect this Agreement. Unless the context otherwise
      specifically re-quires, words importing the singular include the plural and
      vice-versa. The terms "hereunder", "hereto", "herein" and similar terms relate
      to this entire Agreement not to any particular para-graph or provision of this
      Agreement.

    

    21. Entire
      Agreement.
      This
      Agreement, including the terms of the Employment Agreement specifically
      incorporated herein by reference, contains every obligation and under-standing
      between the parties relating to the subject matter hereof and merges all prior
      discus-sions, negotiations and agreements between them. None of the parties
      shall be bound by any agreements, covenants, conditions, definitions,
      understandings, warranties or representations other than as expressly provided
      or referred to herein.

    

    22. Knowing
      and Voluntary Agreement.
      This
      Agreement has been entered into after negotiation and review of its terms and
      conditions by parties under no compulsion to execute and deliver a
      disadvantageous agreement. No ambiguity or omission in this Agreement shall
      be
      con-strued or resolved against any party on the ground that this Agreement
      or
      any of its provi-sions was drafted or proposed by that party. 

    

    [Signature
      Page Follows:]

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    In
      Witness Whereof,
      the
      parties have made and executed this Resignation and Sever-ance Agreement and
      General Release on
      the
      date first set forth above.

    

    
      	
              Clarus
                Corporation,
                a
                Delaware corporation

               

              By:
                _________________________________

              Warren
                B. Kanders

              Chairman
                of the Board of Directors

            	
               

               

              _____________________________________

              Nigel
                P. Ekern

            

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Exhibit
      A

    

    
      	 	 	
              Column
                1.

            	 	
              Column
                2.

            	 	
              Column
                3.

            	 
	 	 	 	 	 	 	 	 	 	 	 	 
	
              CLRS
                Values

            	 	
              Vesting
                over

              5-years

              6-Dec-02

              Option

              ISO
                Shares

            	 	
              Vesting
                over

              5-years

              6-Dec-02

              Option

              NQ
                Shares

            	 	
              Vesting
                over

              3-years

              11-Mar-04

              Option

              Shares

            	 	
              Vesting

              on
                15-Mar-07

              Restricted

              Shares

            	 	
              Vested
                on

              10-Mar-06

              $25,000

              Restricted

              Shares

            	 
	
              CLRS

            	 	 	
              93,455

            	 	 	
              106,545

            	 	 	
              20,000

            	 	 	
              5,882

            	 	 	
              2,904

            	 
	
              Price

            	 	
              $

            	
              5.35

            	 	
              $

            	
              5.35

            	 	
              $

            	
              8.61

            	 	
              $

            	
              8.50

            	 	
              $

            	
              8.61

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Lock
                Up until

              6-Dec-07

            	 	 	
              18,691

            	 	 	
              21,309

            	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Lock
                Up until

              11-Mar-07

            	 	 	 	 	 	 	 	 	
              6,667

            	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Unvested
                until

              15-Mar-07

            	 	 	 	 	 	 	 	 	 	 	 	
              5,882

            	 	 	 	 

    

    

    
      
         

      

      
        12

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