Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Mobiventures Inc. - Exhibit 10.4

EXHIBIT 10.4 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE
SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S
PROMULGATED UNDER THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR
RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT. THIS WARRANT MAY NOT
BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED
STATES OR A U.S. PERSON UNLESS THE WARRANT AND THE UNDERLYING SHARES AND
WARRANTS HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND THE APPLICABLE
SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. 

MOBIVENTURES INC.
A Nevada Corporation (the
“Company”) 
Suite 3.19 MLS Business Centre 
130 Shaftsbury Avenue

London, England W1D 5EU 

COMMON STOCK PURCHASE WARRANT CERTIFICATE 
September 3rd,
2007 

WARRANT CERTIFICATE NO. <>

	Name of Holder: 	<> 
	Address of Holder: 	<> 
	Number of Shares: 	<> Shares of the
      Company’s Common Stock 
	Exercise Price: 	US$0.05 per Share for a period
      of 5 years from the date of issuance until the Expiry Date
  
	Expiry Date: 	September 3rd, 2012
  

THIS WARRANT CERTIFIES THAT, for value received, the
above named holder or its registered assigns (the “Holder”), shall have the
right to purchase from the Company the above referenced number of fully paid and
non-assessable shares (the “Shares”) of the Company’s common stock (the “Common
Stock”) at an exercise price equal to the exercise price set forth above (the
"Exercise Price"), subject to further adjustment as set forth in this
Certificate, at any time from the date hereof until 5:00 p.m., GMT, on the
expiry date set forth above (the “Expiry Date”). This Warrant is issued pursuant
to the terms outlined in the Executive Director compensation agreement of the
Company dated September 3rd, 2007. The exercise of this Warrant shall be
subject to the provisions, limitations and restrictions contained herein.

1.        
Exercise. 

           
1.1         Procedure for
Exercise of Warrant. The Holder may exercise this Warrant by delivering
the following to the principal office of the Company in accordance with Section
5.1 hereof: 

	 	(a) 	
      a duly executed Notice of Exercise in substantially the
      form attached as Schedule A,

	 	 	 
	 	(b) 	
      either (i) a written certification that the Holder is not
      a U.S. person, as defined under Regulation S of the Securities Act, and
      that the Warrant is not being exercised on behalf of a U.S. person, which
      written certificate may be contained in the Notice of Exercise delivered
      pursuant to sub-paragraph (a) above; or (ii) a written opinion of counsel
      to the effect that the Warrant and the Shares have been registered under
      the Securities Act or are exempt from registration thereunder;

	 	 	 
	 	(c) 	
      payment of the Exercise Price then in effect for each of
      the Shares being purchased, as designated in the Notice of
  Exercise

	 	 	 
	 	(d) 	
      this Warrant.

Payment of the Exercise Price may be in cash, certified or
official bank check payable to the order of the Company, or wire transfer of
funds to the Company’s account (or any combination of any of the foregoing) in
the amount of the Exercise Price for each share being purchased.

           
1.2         Delivery of
Certificate and New Warrant. In the event of any exercise of the rights
represented by this Warrant, a certificate or certificates for the shares of
Common Stock so purchased, registered in the name of the Holder, together with
any other securities or other property which the Holder is entitled to receive
upon exercise of this Warrant, shall be delivered to the Holder hereof, at the
Company’s expense, within a reasonable time, not exceeding fifteen (15) calendar
days, after the rights represented by this Warrant shall have been so exercised;
and, unless this Warrant has expired, a new Warrant representing the number of
Shares (except a remaining fractional share), if any, with respect to which this
Warrant shall not then have been exercised shall also be issued to the Holder
hereof within such time. The person in whose name any certificate for shares of
Common Stock is issued upon exercise of this Warrant shall for all purposes be
deemed to have become the holder of record of such shares on the date on which
the Warrant was surrendered and payment of the Exercise Price was received by
the Company, irrespective of the date of delivery of such certificate.

           
1.3         Restrictive
Legend. This Warrant and the Shares have not been registered under the
Securities Act of 1933, as amended, (the "Securities Act") and the Warrants have
been and the Shares, upon exercise of the Warrants, will be issued pursuant to
exemptions from the registration requirements of the Securities Act. Neither
this Warrant nor any of the Shares or any other security issued or issuable upon
exercise of this Warrant may be sold, transferred, pledged or hypothecated in
the absence of an effective registration statement under the Act relating to
such security or an exemption from the registration requirements of the
Securities Act. Each certificate for the Warrant, the Shares and any other
security issued or issuable upon exercise of this Warrant shall contain a legend
on the face thereof, in form and substance satisfactory to counsel for the
Company, setting forth the restrictions on transfer contained in this Section.
The Holder understands that this Warrant constitutes and the Shares upon
issuance will constitute “restricted securities” under the Securities Act. The
holder acknowledges and agrees that all certificates representing the Shares
will be endorsed with the following legend: 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED 

UNDER THE ACT. SUCH SECURITIES MAY
NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.” 

           
1.4         Fractional
Shares. No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded
down to the nearest whole Share. If a fractional share interest arises upon any
exercise or conversion of the Warrant, the Company shall eliminate such
fractional share interest by paying to Holder an amount computed by multiplying
the fractional interest by the current market price of a full Share.

           
1.5         Vesting.
Warrants to purchase 600,000 common shares will be vested and immediately
exercisable upon execution of this Warrant Certificate by the Company.

2.        
Covenants of the Company. 

           
2.1         Authorized Shares. The
Company covenants and agrees that the Company will at all times have authorized
and reserved, free from preemptive rights, a sufficient number of shares of
Common Stock to provide for the exercise in full of the rights represented by
this Warrant.

           
2.2         Issuance of Shares. The
Company covenants and agrees that all shares of Common Stock that may be issued
upon the exercise of the rights represented by this Warrant will, upon issuance,
be validly issued, fully paid and non-assessable, and free from all transfer
taxes, liens and charges with respect to the issue thereof.

3.        
Transfer and Replacement.

           
(a)        
Subject to compliance with any applicable securities laws and the
conditions set forth herein, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the
principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Shares without having a new
Warrant issued.

           
(b)        
The Company agrees to maintain, at its aforesaid office, books for the
registration and the registration of transfer of the Warrants. 

           
(c)        
If, at the time of the surrender of this Warrant in connection with any
transfer of this Warrant, the transfer of this Warrant shall not be registered
pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws, the Company may require, as
a condition of allowing such transfer that (i) the Holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of
counsel in comparable transactions) to the effect that such transfer may be made
without registration under the Securities Act and under applicable state
securities or blue sky laws, and (ii) that the holder or transferee execute and
deliver to the Company such documentation as is necessary to establish that the
shares are being transferred pursuant to an exemption 

from the registration requirements of the Securities Act and
applicable state securities laws or in an offshore transaction pursuant to and
in accordance with Rule 904 of Regulation S of the Securities Act. 

           
(d)        
The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant or any stock certificate relating to the Shares, and in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it (which, in the case of the Warrant, shall not include the posting of any
bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such
Warrant or stock certificate. 

4.        
Adjustments of Exercise Price and/or Number of
Shares.

           
4.1         Subdivision or
Combination of Shares. The number and kind of securities purchasable
upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of any of the following. In case
the Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, or (iv) issue any shares of its
capital stock in a reclassification of the Common Stock, then the number of
Shares purchasable upon exercise of this Warrant immediately prior thereto shall
be adjusted so that the Holder shall be entitled to receive the kind and number
of Shares or other securities of the Company which it would have owned or have
been entitled to receive had such Warrant been exercised in advance thereof.
Upon each such adjustment of the kind and number of Shares or other securities
of the Company which are purchasable hereunder, the Holder shall thereafter be
entitled to purchase the number of Shares or other securities resulting from
such adjustment at an Exercise Price per Warrant Share or other security
obtained by multiplying the Exercise Price in effect immediately prior to such
adjustment by the number of Shares purchasable pursuant hereto immediately prior
to such adjustment and dividing by the number of Shares or other securities of
the Company resulting from such adjustment. An adjustment made pursuant to this
paragraph shall become effective immediately after the effective date of such
event retroactive to the record date, if any, for such event. 

           
4.2         Reorganization,
Reclassification, Consolidation, Merger or Sale. If any
recapitalization, reclassification or reorganization of the share capital of the
Company, or any consolidation or merger of the Company with another Company, or
the sale of all or substantially all of its shares and/or assets or other
transaction (including, without limitation, a sale of substantially all of its
assets followed by a liquidation) shall be effected in such a way that holders
of Common Stock shall be entitled to receive shares, securities or other assets
or property, then, as a condition of such recapitalizations, reclassifications,
reorganizations, consolidations, mergers or sales, lawful and adequate
provisions shall be made by the Company whereby the Holder hereof shall
thereafter have the right to purchase and receive (in lieu of the Common Stock
of the Company immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby) such shares, securities or other
assets or property as may be issued or payable with respect to or in exchange
for the number of outstanding Common Stock which such Holder would have been
entitled to receive had such Holder exercised this Warrant immediately prior to
the consummation of such recapitalizations, reclassifications, reorganizations,
consolidations, mergers or sales. The Company or its successor shall promptly
issue to Holder a new Warrant for such new securities or other property. The new
Warrant shall provide for adjustments which shall be as nearly equivalent as may
be practicable to give effect to the adjustments provided for in this Section 4
including, without limitation, adjustments to the Exercise Price and to the
number of securities or property issuable upon exercise of the new Warrant. The
provisions of this Section 4.2 shall similarly apply to successive
recapitalizations, reclassifications, reorganizations, consolidations, mergers
or sales.

           
4.3         Notice of
Adjustment. Whenever the number of Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant or
the Exercise Price is adjusted, as herein provided, the Company shall give
notice thereof to the Holder, which notice shall state the number of Shares (and
other securities or property) purchasable upon the exercise of this Warrant and
the Exercise Price of such Shares (and other securities or property) after such
adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made.

5.        
Miscellaneous Provisions. 

           
5.1         Notices.
Any notice or other document required or permitted to be given or delivered to
the Holder shall be delivered or forwarded to the Holder at the address for
Holder provide on the first page of this Warrant or to such other address or
number as shall have been furnished to the Company in writing by the Holder. Any
notice or other document required or permitted to be given or delivered to the
Company shall be delivered or forwarded to the Company at the address set forth
above, Attention: President or to such other address or number as shall have
been furnished to Holder in writing by the Company. All notices, requests and
approvals required by this Warrant shall be in writing and shall be conclusively
deemed to be given (a) when hand-delivered to the other party, (b) when received
if sent by facsimile at the address and number set forth above; provided that
notices given by facsimile shall not be effective, unless either (i) a duplicate
copy of such facsimile notice is promptly given by depositing the same in the
mail, postage prepaid and addressed to the party as set forth below or (ii) the
receiving party delivers a written confirmation of receipt for such notice by
any other method permitted under this paragraph; and further provided that any
notice given by facsimile received after 5:00 p.m. (recipient’s time) or on a
non-business day shall be deemed received on the next business day; (c) five (5)
business days after deposit in the United States mail, certified, return receipt
requested, postage prepaid, and addressed to the party as set forth below; or
(d) the next business day after deposit with an international overnight delivery
service, postage prepaid, addressed to the party as set forth below with next
business day delivery guaranteed; provided that the sending party receives
confirmation of delivery from the delivery service provider.

           
5.2         Limitation of
Liability. No provision hereof, in the absence of affirmative action by
the Holder to purchase shares of Common Stock, and no mere enumeration herein of
the rights or privileges of the Holder, shall give rise to any liability of the
Holder for the Exercise Price hereunder or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the
Company.

           
5.3         No Rights as
Stockholder. This Warrant shall not entitle the Holder to any of the
rights of a stockholder of the Company except upon exercise in accordance with
the terms hereof.

           
5.4         Governing
Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of Nevada as applied to agreements among Nevada residents
made and to be performed entirely within the State of Nevada, without giving
effect to the conflict of law principles thereof.

           
5.5         Waiver, Amendments
and Headings. This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by both
parties (either generally or in a particular instance and either retroactively
or prospectively). The headings in this Warrant are for purposes of reference
only and shall not affect the meaning or construction of any of the provisions
hereof.

IN WITNESS WHEREOF, the Company has caused this Warrant
  to be signed by its duly authorized officer effective as of the 03rd day of
  September, 2007.

 

	  	MOBIVENTURES INC. 
	 	 
	  	Per: 
	Signature of Authorized Signatory: 	 
    
	 	 
	Name of Authorized Signatory: 	<> 
	 	 
	Position of Authorized Signatory: 	<>Exhibit
10.1

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN

CHRISTOPHER & BANKS
CORPORATION

AND

LORNA
NAGLER

THIS AGREEMENT is effective when
fully executed by the parties, by and between Christopher & Banks
Corporation, a corporation duly organized and existing under the laws of the
State of Delaware (the “Corporation”), and Lorna Nagler (“Executive”).

ARTICLE 1

EMPLOYMENT

1.1                                 Commencing
as of August 31, 2007, the Corporation hereby employs Executive, and Executive
agrees to be employed by the Corporation as its President and Chief Executive
Officer (“CEO”).  Further, the Board of
Directors of the Corporation shall at its October 2007 Board Meeting vote to
add Executive as a voting member of the Board of Directors.

ARTICLE 2

TERM

2.1                                 The
term of this Agreement shall be the period commencing on August 31, 2007 and
ending when terminated as hereinafter provided in Articles 12 or 13.

ARTICLE 3

DUTIES

3.1                                 Executive
agrees to perform such duties as are customarily incident to her position as
CEO and as are assigned to her from time to time by the Board of Directors of
the Corporation.  Executive agrees to
devote her full business time and effort, to the best of her ability, to carry
out her duties as an Executive of the Corporation for the profit, benefit and
advantage of the business of the Corporation. 
Executive shall report directly to the Board of Directors.

ARTICLE 4

COMPENSATION AND BENEFITS

4.1                                 The
Corporation agrees to pay Executive an annualized base salary, less required
and authorized deductions and withholding, as follows:

	
  

  	
   

  	
        Annualized amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The remainder of
  Fiscal Year 2008

  	
   

  	
   

  	
   

  	
  $

  	
  800,000

  	
   

  
	
   

  	
   

  	
  Fiscal Year 2009

  	
   

  	
   

  	
  $

  	
  850,000

  	
   

  
	
   

  	
   

  	
  Fiscal Year 2010

  	
   

  	
   

  	
  $

  	
  850,000

  	
   

  
											

 

 1
 

If this Agreement
remains in effect after the close of fiscal year 2010, for each fiscal year
thereafter, Executive’s base salary shall be reviewed and adjustments, if any,
shall be determined by the Board of Directors in its sole discretion; however,
such base salary cannot be reduced below $850,000 or the Executive’s base
salary for fiscal year 2010, whichever is higher.  Executive’s base salary shall be payable at
the same intervals as the Corporation pays other executives.

4.2                                 As
of the effective date of this Agreement the Corporation shall grant to
Executive non-qualified stock options covering 98,700 shares, vesting in equal
installments over three years starting one year from Executive’s first date of
employment.  The exercise price of the
stock options will be the closing price of the Corporation’s Common Stock on
the New York Stock Exchange on Executive’s first date of employment.  On the date of the Corporation’s first board
meeting in 2008, the Corporation shall grant to Executive non-qualified stock
options covering 1,300 shares, vesting to the extent of 434 shares on the first
anniversary of the Executive’s first date of employment with an additional 433
shares vesting on each of the second and third anniversaries of the first date
of employment.  The exercise price of
such stock options will be the closing price of the Corporation’s Common Stock
on the New York Stock Exchange on date of the first board meeting in 2008.  The options will be granted under the
Corporation’s 2005 Stock Incentive Plan, and will be subject to Option Agreements.

4.3                                 As
of the effective date of this Agreement the Corporation shall grant to
Executive 40,000 shares of its Common Stock as a restricted stock grant and,
provided Executive continues to be employed by the Corporation as its Chief
Executive Officer and has not given any notice of resignation before or on such
dates, on each of May 31, 2008, 2009, 2010 and 2011, the Corporation shall
grant to Executive additional restricted stock grants of 40,000 shares of the
Corporation’s Common Stock.  The
restricted stock will be granted under the Corporation’s 2005 Stock Incentive
Plan, and will be subject to Restricted Stock Agreements.  The first grant of 40,000 shares will be
subject to a Restricted Stock Agreement entered into by Executive concurrently
with this Employment Agreement.  The
subsequent annual grants of 40,000 shares will be subject to Restricted Stock
Agreements to be entered into on the date of grant, each of which shall have
risks of forfeiture as described in Exhibit A to this Agreement.

4.4                                 
Provided Executive remains employed by the Corporation through February 28,
2008, the Corporation will pay Executive a guaranteed bonus of $250,000, less
required and authorized withholding and deductions, for Fiscal Year 2008.  Thereafter, provided Executive remains
employed by the Corporation the entire fiscal year, Executive shall be eligible
to earn an annual bonus each fiscal year of up to 100% of her then-current base
salary in accordance with the Corporation’s senior executive incentive plan as
in effect and approved by the Board of Directors from time to time.  The bonus is earned at the close of the
fiscal year and will be paid to Executive regardless of whether she is employed
on the date the bonus is actually paid. Notwithstanding anything herein to the
contrary,  if Executive’s employment
terminates for any reason other than termination with Cause or resignation
without Good Reason, she will be eligible to earn the annual bonus for the
fiscal year of her termination pro rata for the number of months she was
employed during the fiscal year.  If a
bonus is earned, it will be paid to Executive between March 1 and May 15
following the close of the fiscal year.

4.5                                 Subject
to the terms and conditions of such plans and programs, Executive shall be
entitled to participate in the various other employee benefit plans and
programs applicable to senior executives of the Corporation including, but not
limited to, medical insurance, disability insurance and other benefits.  In

 2
 

addition,
Executive shall be eligible for the Corporation’s short and long term
disability benefit plan on August 31, 2007, and, if for any reason Executive
can not be covered by that plan on that date, the Corporation will provide
comparable long and short term disability coverage to Executive until she is
eligible to participate in the plan. 
Further, the Corporation will pay to Executive her current COBRA premium
for the period prior to Executive becoming eligible for the Corporation’s
health insurance plan, and that amount will be the amount of her then current
COBRA payment, grossed up for tax purposes.

4.6                                 The
Corporation shall pay to Executive a car allowance of $1,250 per month.

4.7                                 Executive
shall be entitled during each full calendar year in which this Agreement
remains in effect to four (4) weeks (20 business days) of paid vacation time,
and a pro rata portion thereof for any partial calendar year of
employment.  Any vacation time not used
during any such calendar year may not be carried forward to any succeeding
calendar year and shall be forfeited. 
Employee shall not be entitled to receive any payment in cash for
vacation time remaining unused at the end of any year.  At separation from employment, the Corporation
will pay Executive for any unused vacation in the year of such separation,
prorated from January 1 to Executive’s last day of employment.

4.8                                 The
Corporation will reimburse Executive for all reasonable and documented business
expenses in accordance with its expense reimbursement policy, including,
without limitation, Executive’s travel-related expenses for Executive’s travel
from Ohio to Plymouth, Minnesota prior to her establishing a personal residence
in the Minneapolis-St. Paul area.

4.9.                              The
Executive agrees that she will establish a personal residence in the
Minneapolis-St. Paul area within 12 months of her commencement of employment
with the Corporation.  The Corporation
will: (1) pay for Executives’ coach round-trip airfare, lodging and car rental
while on house-hunting trips to the Minneapolis-St. Paul area; (2) pay for and
arrange the pack and move of Executive’s household goods through one of its
preferred carriers; (3) pay for the transport of up to two of Executive’s
personal vehicles from Powell, Ohio to the Minneapolis-St. Paul area; (4) pay
up to $5,000 per month for up to twelve (12) months of temporary living
expenses in corporate housing/apartment while Executive secures a permanent
place of residence in the Minneapolis-St. Paul area; (5) in the event that
Executive purchases a residence in the Minneapolis-St. Paul area before the end
of her first twelve (12) months of employment but has not yet sold her home in
Powell, Ohio during such time period, reimburse Executive for her mortgage
payments on the Powell, Ohio residence up to $5,000 per month until the earlier
of the sale of her Powell, Ohio residence or the end of such twelve (12) month
period; (6) reimburse Executive for a maximum of 6% realtor fees associated
with the sale of her residence in Powell, Ohio; (7) reimburse Executive for her
closing costs in connection with her purchase of a home in the Minneapolis-St.
Paul area; and (8) to protect Executive against a potential loss on the sale of
her home in Powell, Ohio, pay Executive an amount equal to the difference, if
any, between Executive’s purchase price of her home in Powell, Ohio and the
average of three appraisals of current market value conducted by real estate
experts for such home, up to $200,000. 
The Corporation shall also pay or reimburse Executive, as the case may
be, a tax gross up of the foregoing items to the extent that such items are
included in the Executive’s taxable income or are nondeductible for federal
income tax purposes by the Executive.

If
Executive’s employment should terminate for any reason other than termination
with Cause or resignation without Good Reason, any reimbursements under this
section not yet made shall be made to or on behalf of Executive and all
payments under this section shall be made to or on behalf of Executive in

 3
 

accordance with
this section for the balance of the twelve month period, including, but not
limited to, the monthly allowance, the reimbursement of realtor fees, closing
costs and sale differential.

4.10                           In
addition to any other rights as set forth in this Agreement, upon termination
of Executive’s employment, regardless of the reason, Executive shall be
entitled to receive the accrued but unpaid portion of Executive’s salary
through the date of termination, any accrued but unused vacation balance
through the date of termination, any properly incurred and submitted unpaid
expenses, and benefits that are vested as of the date of termination.

ARTICLE 5

LIFE AND
LONG-TERM CARE INSURANCE

5.1                                 The
Corporation, at its own expense, shall provide life insurance coverage on
Executive’s life in accordance with this section.  The Corporation will use its best efforts to
establish such coverage as soon as possible following August 31, 2007.   The death benefit shall be in the amount of
$2,500,000, $1,000,000 in the form of whole life insurance, $1,000,000 in the
form of term life insurance, and $500,000 in the form of either whole life
insurance or term life insurance as mutually agreed by the parties.  The Executive will be the owner of both
policies.  The death benefit shall be
payable to a beneficiary designated solely by Executive.  In addition, the Executive will be eligible
to participate in the Corporation’s Life Insurance and Supplemental Life
Insurance benefit applicable to senior executives of the Corporation, subject
to the terms and conditions of such plans and programs.  The Corporation shall have the right at its
own expense and for its own benefit to purchase additional insurance on
Executive’s life, and Executive shall cooperate by providing necessary
information, submitting to required medical examinations, and otherwise
complying with the insurance carrier’s requirements.

5.2                                 The
Corporation shall have the right to maintain a term life insurance policy in
the amount of $2,000,000 on Executive’s life, naming the Corporation as
beneficiary.

5.3                                 Executive
shall be entitled to “long-term care insurance,” which insurance shall be
provided at the expense of the Corporation in accordance with this
section.  The Corporation will use its
best efforts to establish such insurance as soon as possible following August
31, 2007.  The annual premiums for such
insurance will be paid by the Corporation during Executive’s employment based
upon a ten-year paid schedule.

ARTICLE 6

DEFINITIONS

6.1                                 “Cause”
shall mean a determination that the Executive (i) has been convicted of, or
entered a plea of nolo contendere to, a crime that constitutes a felony under
Federal or state law, (ii) has engaged in willful gross misconduct in the
performance of the Executive’s duties to the Corporation or an Affiliate or
(iii) has committed a material breach of this Agreement.  If Executive is a member of the Board of
Directors, she shall neither vote on any such determination of “Cause,” nor
shall she be counted for purposes of determining a majority of the directors
with respect to any such determination. 
Provided further that in connection with an event described in Section
6.1(ii) or (iii) above, Executive shall first have received a written notice
from the Corporation which sets forth in reasonable detail the manner in which
Executive has materially failed to perform her job duties or materially
breached this Agreement, and Executive shall have a

 4
 

period of ten (10)
business days to cure the same, but the Corporation shall neither be required
to give written notice of, nor shall Executive have a period to cure, the same
or any similar failure which was the subject of an earlier written notice to
Executive hereunder.

6.2                                 A
“Change in Control” shall be deemed to have occurred upon:

(i)
the occurrence of (A) an acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or l4(d)(2) of the Exchange Act) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of a percentage of the combined voting power of the then outstanding
voting securities of the Corporation entitled to vote generally in the election
of directors (the “Corporation Voting Securities”) (but excluding (1) any
acquisition directly from the Corporation (other than an acquisition by virtue
of the exercise of a conversion privilege of a security that was not acquired
directly from the Corporation), (2) any acquisition by the Corporation or an
Affiliate and (3) any acquisition by an employee benefit plan (or related
trust) sponsored or maintained by the Corporation or any Affiliate) (an “Acquisition”)
that is thirty percent (30%) or more of the Corporation Voting Securities;

(ii)
at any time during a period of two (2) consecutive years or less, individuals
who at the beginning of such period constitute the Board (and any new directors
whose election by the Board or nomination for election by the Corporation’s
shareholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was so approved) cease
for any reason (except for death, Disability or voluntary retirement) to
constitute a majority thereof;

(iii)
an Acquisition that is fifty percent (50%) or more of the Corporation Voting
Securities;

(iv)
the consummation of a merger, consolidation, reorganization or similar
corporate transaction, whether or not the Corporation is the surviving
Corporation in such transaction, other than a merger, consolidation, or
reorganization that would result in the Persons who are beneficial owners of
the Corporation Voting Securities outstanding immediately prior thereto
continuing to beneficially own, directly or indirectly, in substantially the
same proportions, at least fifty percent (50%) of the combined voting power of
the Corporation Voting Securities (or the voting securities of the surviving
entity) outstanding immediately after such merger, consolidation or
reorganization;

(v)
the sale or other disposition of all or substantially all of the assets of the
Corporation;

(vi)
the approval by the shareholders of the Corporation of a complete liquidation
or dissolution of the Corporation; or

(vii)
the occurrence of any transaction or event, or series of transactions or
events, designated by the Board in a duly adopted resolution as representing a
change in the effective control of the business and affairs of the Corporation,
effective as of the date specified in any such resolution.

6.3                                 “Confidential
Information” means any information that is not generally known, including trade
secrets, outside the Corporation and that is proprietary to the Corporation,
relating to any phase of the Corporation’s existing or reasonably foreseeable
business which is disclosed to Executive during Executive’s employment by the
Corporation including information conceived, discovered or developed by
Executive.

 5
 

Confidential
Information includes, but is not limited to, business plans; financial
statements and projections; operating forms (including contracts) and procedures;
payroll and personnel records; marketing materials and plans; proposals;
supplier information; customer information; software codes and computer
programs; customer lists; project lists; project files; training manuals;
policies and procedures manuals; health and safety manuals; target lists for
new stores and information relating to potential new store locations; price
information and cost information; administrative techniques or documents or
information that is designated by the Corporation as “Confidential” or
similarly designated.

6.4                                 A
“Competitor” means The Cato Corporation, Talbots, Inc., Chico’s FAS, Inc.,
Coldwater Creek, Inc., Dress Barn Inc., United Retail Group, Inc and Ann
Taylor.  This list may be amended by
mutual written agreement of the parties. 
“Competitor” shall also include all divisions and subsidiaries of the
stores identified in this Section 6.4, as may be amended by the parties.

6.5                                 “Fiscal
year” means March 1 of one year until February 28 of the following year; for
example, the 2008 fiscal year for the Corporation runs from March 1, 2007 to
February 28, 2008.

6.6                                 “Good
Reason” means a resignation of employment by the Executive within sixty (60)
days following the occurrence of any one or more of the following events
without the Executive’s written consent (i) any reduction in Executive’s
position, title or base compensation, 
(ii) a requirement that the Executive’s location of employment be
relocated by more than fifty (50) miles from her then-current location of
employment, or (iii) the Corporation’s material breach of this Agreement.   A Good Reason resignation shall be
communicated by written notice to the Corporation, and shall be deemed to occur
on the date such notice is delivered to the Corporation, unless the
circumstances giving rise to the Good Reason resignation are cured within ten
(10) business days of the Corporation’s receipt of such notice.

ARTICLE 7

NONCOMPETITION AND NONSOLICITATION

7.1                                 During
Executive’s employment, Executive will not plan, organize or engage in any
business competitive with any product or service marketed or planned for
marketing by the Corporation or conspire with others to do so.

7.2                                 During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not, without the written permission of the
Corporation, directly or indirectly (i) engage in activities with or provide
services to a Competitor or (ii) own (whether as a shareholder, partner or
otherwise, other than as a 5% or less shareholder of a publicly held company)
any interest in a Competitor, or (iii) be connected as an officer, director,
advisor, consultant or employee of, or participate in the management of, any
Competitor.

7.3                                 During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not, directly or indirectly, solicit, entice, or
induce (or attempt to do so) any employee of the Corporation to be employed by
any other party or to terminate such employee’s employment with the
Corporation.  This Section 7.3 shall
apply to then-current employees and employees employed by the Corporation at
the time of the Executive’s termination.

 6
 

7.4                                 During
Executive’s employment and for a period of one year after termination of
Executive’s employment with the Corporation for any reason, whether voluntary
or involuntary, Executive will not, directly or indirectly, engage (or attempt
to do so, directly or indirectly) any vendor of the Corporation on behalf of a
Competitor or encourage or induce any vendor of the Corporation to curtail or
cease its relationship with the Corporation. 
This Section 7.4 shall apply to then-current vendors and any vendor who
was a vendor of the Corporation at any time in the one-year period immediately
prior to Executive’s termination date.

ARTICLE 8

CONFIDENTIAL
INFORMATION AND COMPANY PROPERTY

8.1                                 Unless
authorized in writing by the Corporation, Executive will not directly or
indirectly divulge, either during or after the term of her employment, or until
such information becomes generally known, to any person not authorized by the
Corporation to receive or use it any Confidential Information for any purpose
whatsoever.

8.2                                 All
documents or other tangible property relating in any way to the business of the
Corporation which are conceived by Executive or come into her possession during
her employment shall be and remain the exclusive property of the Corporation
and Executive agrees to return all such documents and tangible property to the
Corporation upon termination of her employment or at such earlier time as the
Corporation may request of Executive.

ARTICLE 9

INVENTIONS AND COPYRIGHT

9.1                           Executive hereby irrevocably assigns to the
Corporation and its successors, assigns, and legal representatives:

i)                                  Except as provided by any statutory notice
provided herewith, the entire right, title and interest to all Inventions;

“Inventions”, as used herein, means all
inventions conceived or made or reduced to practice in whole or in part by
Executive during employment by the Corporation, including discoveries,
improvements, designs, processes, techniques, equipment, trademarks, and ideas
(whether patentable or not and including, without limitation, those that might
be copyrightable).

ii)                                  The entire right, title and interest to any
United States or foreign Letters Patents which may issue or that has issued
with respect to Inventions;

iii)                               The entire right, title and interest to any
renewals, reissues, extensions, substitutions, continuations, continuations-in-part,
or divisions that may be filed with respect to the Inventions, applications,
and patents;

iv)                              The right to apply for Letters Patents in foreign
countries in its own name and to claim any priority rights to which such
foreign applications are entitled under international

 7
 

conventions, treaties or
otherwise; and

v)                                     The right to sue for past, present, and future
infringement of such Inventions and Letters Patent.

Executive further agrees to
provide written disclosure of all Inventions to the Corporation, even if a
particular Invention is not assigned according to terms of any statutory notice
provided herewith.  Executive hereby
authorizes and request the Commissioner of Patents and Trademarks to issue to
the Corporation any Letters Patents which may be granted in accordance with
this Assignment.  This Agreement
does not apply to an invention for which no equipment, supplies, facility or
trade secret information of the Corporation was used and which was developed
entirely on Executive’s own time, and (1) which does not relate (a) directly to
the business of the Corporation or (b) to the Corporation’s actual or
demonstrably anticipated research or development, or (2) which does not result
from any work performed by Executive for the Corporation.

9.2                                 Executive
hereby acknowledges and agrees that, to the extent any work performed by
Executive for the Corporation gives rise to the creation of any copyrightable
material (“Work”), all such Work, including all text, software, source code,
scripts, designs, diagrams, documentation, writings, visual works, or other
materials shall be deemed to be a work made for hire for the Corporation.  To the extent that title to any Work may not,
by operation of law, vest in the Corporation or such Work may not be considered
work made for hire for the Corporation, all rights, title and interest therein
were assigned and are hereby irrevocably assigned to the Corporation, including
but not limited to the right to sue for past, present, and future infringement
of any Work.  All such Work shall belong
exclusively to the Corporation, with the Corporation having the right to obtain
and to hold in its own name, copyrights, registrations or such other protection
as may be appropriate to the subject matter, and any extensions and renewals
thereof.  To the extent that title to any
Work may not be assigned to the Corporation, Executive hereby grants the
Corporation a worldwide, nonexclusive, perpetual, irrevocable, fully paid-up,
royalty-free, unlimited, transferable, sublicensable license, without right of
accounting, in such Work.  Executive
agrees to execute and deliver without further consideration such documents and
to perform such other lawful acts as the Corporation, its successors and
assigns may deem necessary to fully secure the Corporation’s rights, title or
interest in all Works and Inventions as set forth in this Agreement.

ARTICLE 10

JUDICIAL
CONSTRUCTION AND SEVERABILITY

10.1                           Executive
believes and acknowledges that the provisions contained in this Agreement,
including the covenants contained in Articles 7, 8 and 9 of this Agreement, are
fair and reasonable, and necessary to protect the Corporation’s legitimate
business interests.  Nonetheless, it is
agreed that if a court finds any of these provisions to be invalid in whole or
in part under the laws of any state, such finding shall not invalidate the
covenants, nor the Agreement in its entirety, but rather the covenants shall be
construed and/or bluelined, reformed or rewritten by the court as if the most
restrictive covenants permissible under applicable law were contained
herein.  If the invalid part cannot be so modified, that part may be severed and
the other parts of the Agreement shall remain enforceable.

 8
 

ARTICLE
11

RIGHT TO INJUNCTIVE RELIEF

11.1                           Executive
acknowledges that a breach by Executive of any of the terms of Articles 7, 8 or
9 of this Agreement will render irreparable harm to the Corporation.  Accordingly, the Corporation shall therefore
be entitled to any and all equitable relief, including, but not limited to,
injunctive relief, and to any other remedy that may be available under any
applicable law or agreement between the parties.

ARTICLE 12

CHANGE OF
CONTROL

12.1                           If
Executive’s employment is terminated by the Corporation or its successor
without Cause or by the Executive by resignation with Good Reason upon or
within twelve (12) months following a Change in Control, all restricted stock
held by Executive shall vest immediately for the benefit of Executive, and the
Board of Directors will use its reasonable efforts to register such shares
under the Securities Act of 1933, as amended, if necessary.

12.2                           If
Executive’s employment is terminated by the Corporation or its successor
without Cause or by the Executive by resignation with Good Reason upon or
within twelve (12) months following a Change in Control, Executive shall be
entitled to receive from the Corporation or its successor (A) a lump sum
payment equivalent to one (1) year of her then-current base salary, (B)
provided Executive is eligible for and timely elects COBRA coverage, payment of
Executive’s COBRA premiums for a period not to exceed twelve (12) months and
that amount will be the amount of her then current COBRA payment, grossed up
for tax purposes, and (C) any other compensation and benefits owed at
termination of employment pursuant to Article 4.  This payment shall be made by the Corporation
or its successor within sixty (60) business days following Executive’s
termination date, subject to the application of Code Section 409A as set forth
in Section 13.1 of this Employment Agreement. 
This payment shall be in lieu of, and not in addition to, any severance
pay or benefits set forth in Section 13.1 of this Employment Agreement.  Executive shall be entitled to the payment
set forth in this Section 12.2 only if she is in compliance with Articles 7, 8
and 9 of this Agreement and first executes, returns, does not rescind and
complies with a release of claims agreement in favor of the Corporation or its
successor in a form substantially similar to the document attached hereto as
Exhibit B.

12.3                           In the
event any Change of Control Benefit, as defined below, payable to Executive
would constitute an “excess parachute payment” as defined in Code Section 280G,
Executive shall receive a “tax gross-up” payment sufficient to pay the initial
excise tax applicable to such excess parachute payment (but excluding the
income and excise taxes, if any, applicable to the tax gross-up payment).  Such additional cash payment shall be made
within sixty (60) days following the effective date of the Change of Control,
subject to the application of Code Section 409A as set forth in Section 13.1 of
this Agreement.  For purposes of this
Section 12.3, a “Change of Control Benefit” shall mean any payment, benefit or
transfer of property in the nature of compensation paid to or for the benefit
of Executive under any arrangement which is considered contingent on a Change
of Control for purposes of Code Section 280G, including, without limitation,
any and all of the Corporation’s salary, bonus, incentive, restricted stock,
stock option, equity-based compensation or benefit plans, programs or other
arrangements, and shall include benefits payable under this Agreement.

 9

ARTICLE 13

TERMINATION

13.1                           Notwithstanding
anything herein to the contrary, the Corporation may terminate the employment
of Executive at any time without Cause by written notice of termination of
employment to Executive.  Further, the
Executive may terminate her employment at any time with Good Reason.

In
the event that the Corporation terminates the employment of Executive without
Cause or the Executive resigns her employment with the Corporation with Good
Reason, Executive shall receive (A) severance payments equal to her
then-current base salary (i) from the date of termination until August 31, 2010
or (ii) for a period of twelve (12) months, whichever period of time is
greater, (B) provided Executive is eligible for and timely elects COBRA
coverage, payment of Executive’s COBRA premiums for a period equivalent to the
applicable severance period but not to exceed eighteen (18) months and that
amount will be the amount of her then current COBRA payment, grossed up for tax
purposes, and (C) any other compensation and benefits owed at termination of
employment pursuant to Article 4.  If,
however, following the three month anniversary of her termination date,
Executive has already secured or secures other employment, self employment or a
consulting position, the remaining severance amount payable to or on behalf of
Executive by the Corporation shall be offset and reduced by such other cash
compensation Executive earns through such other employment or consulting
arrangements during the severance period hereunder.  Executive agrees to immediately notify the
Corporation of the amount of compensation earned by her through other
employment, self-employment or consulting during the severance period
hereunder, following the three month anniversary of her termination date.  Severance pay due to Executive hereunder will
be made over time in accordance with the Corporation’s regular payroll schedule
after expiration of any applicable rescission periods, subject to the
application of Code Section 409A as set forth below.  Executive shall be entitled to the severance
pay and benefits set forth in this Section 13.1 only if she is in compliance
with Articles 7, 8 and 9 of this Agreement and first executes, returns, does
not rescind and complies with a release of claims agreement in favor of the
Corporation in a form substantially similar to the document attached hereto as
Exhibit B.

Except
as provided in Article 12 and this Section 13.1, all compensation and benefits,
including the vesting of outstanding restricted stock, provided to Executive
under this Agreement shall immediately cease upon her termination, subject to
applicable employment laws and regulations.

Notwithstanding
the foregoing, if the severance payments described in this Section 13.1 or the
change of control payments described in Section 12.2 are subject to the
requirements of Code Section 409A and the Corporation determines that Executive
is a “specified employee” as defined in Code Section 409A as of the date of the
termination, such payments shall not be paid or commence earlier than the date
that is six months after the termination, but shall be paid or commence during
the calendar year following the year in which the termination occurs and within
30 days of the earliest possible date permitted under Code Section 409A.

Notwithstanding
anything herein to the contrary, this Section 13.1 shall not apply if Executive’s
employment is terminated by the Corporation or its successor without Cause, or
Executive resigns her employment for Good Reason, upon or within twelve (12)
months following a Change in Control.  In
such case, Section 12 of this Agreement shall control.

13.2                           The
Corporation may terminate Executive’s employment at any time for Cause, and the

 10
 

Executive may
resign her employment without Good Reason; provided, however, that in the event
of Executive’s resignation without Good Reason, she must provide at least
ninety (90) calendar days advance written notice of resignation of employment
to the Corporation.  All compensation and
benefits provided to Executive under this Agreement shall immediately cease
upon her termination or resignation under this Section 13.2 (including, but not
limited to, bonus eligibility), subject to applicable employment laws and
regulations, except Executive shall receive any compensation and benefits owed
at termination of employment pursuant to Article 4.

13.3                           This
Agreement will terminate upon Executive’s death or upon Executive’s disability
that prevents her from performing her essential job functions under this
Agreement, with or without reasonable accommodation, for a continuous period of
180 calendar days or for periods aggregating 180 calendar days in any eighteen
(18) month period.  At such time all
compensation and benefits provided to Executive under this Agreement shall
immediately cease upon such termination, subject to applicable employment laws
and regulations, except, (A) if termination is due to disability and provided
Executive is eligible for and timely elects COBRA coverage, the Corporation
will pay Executive’s COBRA premiums for a period of eighteen (18) months and
that amount will be the amount of her then current COBRA payment, grossed up
for tax purposes, and (B) if termination is due to death or disability the
Executive will be entitled to receive any other compensation and benefits owed
at termination of employment pursuant to Article 4.

ARTICLE 14

INDEMNIFICATION

14.1                           Executive
as a director, officer, agent, and employee of the Corporation, shall be
entitled to all the protection from liability and all the rights to
indemnification provided by Minnesota law and any other applicable state or
federal law, whether statutory or common law, to current and former directors,
officers, agents, or employees of the Corporation, and shall be entitled to
protection from liability and to indemnification afforded by applicable
Corporation by-laws, resolutions, and/or insurance for current and former
directors, officers, agents and/or employees.

ARTICLE
15

ASSIGNMENT

15.1                           Executive
consents to and the Corporation shall have the right to assign this Agreement
to its successors or assigns. 
Additionally, Executive consents to and the Corporation shall have the
right to assign this Agreement to any subsidiary, and all covenants or
agreements hereunder shall inure to the benefit of and be enforceable by or
against its successors or assigns.  The
terms “successors” and “assigns” shall include any corporation which buys all
or substantially all of the Corporation’s assets, or a controlling portion of
its stock, or with which it merges or consolidates.

15.2                           This
Agreement inures to the benefit of Executive’s legal representative, executor,
administrator, or heirs.  In the event of
Executive’s death prior to payment of any amounts earned and due under this
Agreement to Executive (excluding any severance payments and COBRA benefits
under Articles 12 or 13 of this Agreement), such payments shall be made to
Executive’s spouse, or is she is not survived by her spouse, then to her
estate.

 11
 

ARTICLE 16

FAILURE
TO DEMAND PERFORMANCE AND WAIVER

16.1                           Either
parties failure to demand strict performance and compliance with any part of
this Agreement during Executive’s employment or thereafter shall not be deemed
to be a waiver of such party’s rights under this Agreement or by operation of
law.  Any waiver by either party of a
breach of any provision of this Agreement shall not operate as or be construed
as a waiver of any subsequent breach thereof.

ARTICLE 17

GOVERNING
LAW AND VENUE

17.1                           The parties acknowledge that the
Corporation’s principal place of business is located in the State of
Minnesota.  The parties hereby agree that
this Agreement shall be construed in accordance with the internal laws of the
State of Minnesota without regard to the conflict of laws thereof.  The parties agree that the exclusive venue
for any litigation commenced by the Corporation or the Executive relating to
this Agreement or Executive’s employment shall be the state courts located in
Hennepin County, Minnesota and the United States District Court, District of
Minnesota in Hennepin County, Minnesota. 
The parties waive any rights to object to venue as set forth herein,
including any argument of inconvenience for any reason.

ARTICLE 18

SURVIVAL

18.1                           The
parties agree that Articles 7, 8 and 9 of this Agreement, and those provisions
necessary for the enforcement of Articles 7, 8 and 9 of this Agreement, shall
survive termination of this Agreement and termination of Executive’s employment
for any reason.  The parties further
agree that both parties shall retain the right to enforce any rights or claims
for breach of this Agreement during its term or for breach of any provisions
required to be performed by the Executive or the Corporation or its
successor(s) after its term and such rights shall survive termination of this
Agreement and termination of Executive’s employment for any reason.

ARTICLE 19

UNDERSTANDINGS

19.1                           Executive
hereby acknowledges that (a) the Corporation informed her, prior to her
accepting employment with the Corporation under the terms and conditions set
forth in this Agreement, that the restrictive covenants contained in Articles
7, 8 and 9 of this Agreement would be required as part of the terms and
conditions of her employment with the Corporation under this Agreement; (b) her
employment with the Corporation under this Agreement constitutes good and
valuable consideration in exchange for the restrictive covenants contained in
Articles 7, 8 and 9 of this Agreement, (c) she has carefully considered the
restrictions contained in this Agreement and determined that they are fair and
reasonable, and necessary to protect the Corporation’s legitimate business
interests; and (d) the restrictions in this Agreement will not unduly restrict
Executive in securing other employment or earning a livelihood in the event of
her termination from the Corporation.

19.2                           By
signing below, Executive authorizes the Corporation to notify third parties
(including, but

 12
 

not
limited, Executive’s actual or potential future employers) of Articles 7, 8 and
9 of this Agreement, and those provisions necessary for the enforcement of
Articles 7, 8 and 9 of this Agreement, and Executive’s responsibilities
thereunder.

19.3                           Executive
represents and warrants to the Corporation that she has provided to the
Corporation a true and correct copy of her Covenant Not to Compete and Covenant
Not to Solicit with Charming Shoppes, Inc. made and entered into on July 25,
2007.  It has been determined in good
faith that such Covenants do not prevent, limit, or impair in any way the
performance by Executive of her obligations hereunder.  Executive further represents and warrants to
the Corporation that she is not under, or bound to be under in the future, any
other obligation to any person, firm, or corporation that is or would be inconsistent
or in conflict with this Agreement or would prevent, limit, or impair in any
way the performance by her of her obligations hereunder.

19.4                           If Executive possesses any information that she
knows or should know is considered by any third party, such as a former
employer of Executive’s, to be confidential, trade secret, or otherwise
proprietary, Executive shall not disclose such information to the Corporation
or use such information to benefit the Corporation in any way.

19.5                           All
notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person,
when delivered by an express delivery service or courier service to the address
listed below, or three (3) business days after it is mailed, certified, return
receipt requested, postage prepaid:

If to Executive,
addressed to:

Lorna Nagler

2190 Strathshire Hall
Lane

Powell, Ohio 43065

If to the Corporation, addressed to:

Larry Barenbaum

Chair of Board of
Directors

Christopher & Banks
Corporation

2400 Xenium Lane North

Plymouth, MN 
55441

Any party hereto
may, from time to time, by written notice to the other party, designate a
different address, or in the case of the Corporation a different Board Chair,
which shall be substituted for the one specified above for such party.

ARTICLE 20

ENTIRE
AGREEMENT

20.1                           The
Corporation and Executive acknowledge that this Agreement contains the full and
complete agreement between and among the parties, that there are no oral or
implied agreements or other modifications not specifically set forth herein,
and that this Agreement supersedes any prior agreements or

 13
 

understandings, if
any, between the Corporation and Executive, whether written or oral, including,
without limitation, Larry Barenbaum’s letters to Executive dated August 1, 2007
and August 14, 2007.  The parties further
agree that no modifications of this Agreement may be made except by means of a
written agreement or memorandum signed by the parties.  Notwithstanding anything in this Agreement to
the contrary, the Corporation expressly reserves the right to amend this
Agreement without Executive’s consent to the extent necessary to comply with
Code Section 409A, as it may be amended from time to time, and the regulations,
notices and other guidance of general applicability issued thereunder.

ARTICLE 21

COUNTERPARTS

21.1                           This Agreement may be executed simultaneously in
two or more counterparts, each of which shall be deemed an original and all of
which, when taken together, constitute one and the same document.  The signature of any party to any counterpart
(including signatures transmitted by facsimile) shall be deemed a signature to,
and may be appended to, any other counterpart.

IN
WITNESS WHEREOF, the Corporation has hereunto signed its name and Executive
hereunder has signed her name, all as of the day and year first above written.

	
  

  	
   

  	
   

  	
  CHRISTOPHER & BANKS CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  8/30/07

  	
   

  	
  By:

  	
  /s/ Larry
  Barenbaum

  	
   

  
	
   

  	
   

  	
  Larry Barenbaum

  
	
  Chairman of the Board

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
  Date:

  	
  8/30/07

  	
   

  	
  /s/ Lorna Nagler

  	
   

  
	
   

  	
  Lorna Nagler

  	
   

  	
   

  	
   

  
									

 

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EXHIBIT A

Your employment agreement provides for the future
grant of 40,000 shares of Restricted Stock on each of May 31, 2008, 2009, 2010
and 2011 which grants shall each be subject to a risk of forfeiture that shall
lapse for each grant on the date that is one year after the date of that grant
(the grant “anniversary date”) provided that (i) you have been continuously
employed by the Company through such anniversary date and have not given any
notice of resignation before or on that date and (ii) the Company has satisfied certain performance conditions for the fiscal
year in which the grant was made, as described below (these are consistent with
those set forth in the restricted stock agreements of other executives) or such
alternative performance criteria that you and the Company mutually agree upon.

Unless alternative conditions are agreed upon, which
shall then control, the lapse of the risk of forfeiture for each annual grant
of restricted stock shall be subject to the following performance conditions: (i) the Operating Income (as defined below) for
the fiscal year in which the grant was made must be greater than the Operating
Income in the prior fiscal year; and (ii) the Operating Income for the fiscal
year in which the grant was made is equal to or greater than the Operating
Income set forth in the budget for such fiscal year approved by the Board of
Directors before or shortly after the beginning of such fiscal year (the “Budgeted
Operating Income”).  For purposes of this
offer, Operating Income shall mean income before interest and taxes determined
in accordance with U.S. generally accepted accounting principles (“GAAP”) but
prior to accruing expense for any award hereunder and excluding the impact
(whether positive or negative) thereon of any change in accounting standards or
extraordinary item as defined by GAAP.  In
addition to the foregoing, the risk of forfeiture shall lapse for the following
portion of each annual 40,000 share grant on the first anniversary of such
grant if condition (i) above is satisfied, and regarding condition (ii), the
Operating Income for the fiscal year in which the grant was made is at least
95% of the Budgeted Operating Income.  At
95% of Budgeted Operating Income the risk of forfeiture shall lapse with
respect to 50% of the available shares under the grant (20,000 shares) and the
number of shares will increase by an additional .10% of the eligible shares for
each basis point over 95%, such that the risk of forfeiture shall lapse for
100% of the eligible shares (or 40,000 shares) at 100% of the Budgeted
Operating Income.

In the event the Company modifies the performance
conditions described above for any other executive officer of the Company in a
manner favorable to such executive officer, the Company will modify your
agreement in the same manner.

 15
 

EXHIBIT B

RELEASE OF CLAIMS

I, Lorna Nagler, agree as follows:

1.                                       Release of Claims. 
Specifically in consideration of the severance pay and benefits
described in my Executive Employment Agreement, to which I would not otherwise
be entitled, by signing this Release of Claims, I, for myself and anyone who
has or obtains legal rights or claims through me, agree to the following:

a.                                       I hereby release, agree not to sue, and forever
discharge Christopher & Banks (as defined below) of and from any and all
manner of claims, demands, actions, causes of action, administrative claims,
liability, damages, claims for punitive or liquidated damages, claims for
attorney’s fees, costs and disbursements, individual or class action claims, or
demands of any kind whatsoever, I have or might have against them or any of
them, whether known or unknown, in law or equity, contract or tort, arising out
of or in connection with my employment with Christopher & Banks, or the
termination of that employment, or otherwise, and however originating or
existing, from the beginning of time through the date of my signing this
Release of Claims.

b.                                      This release includes, without limiting the
generality of the foregoing, any claims I may have for wages, bonuses,
commissions, penalties, deferred compensation, vacation pay, severance
benefits, employee benefits (except those listed in Section 1(d)), defamation,
invasion of privacy, negligence, emotional distress, breach of contract,
estoppel, improper discharge (based on contract, common law, or statute,
including any federal, state or local statute or ordinance prohibiting
discrimination or retaliation in employment), violation of the United States
Constitution, the Minnesota Constitution, the Age Discrimination in Employment
Act, 29 U.S.C. § 621 et  seq., the Minnesota Human Rights Act,
Minn. Stat. § 363A.01 et  seq., Title VII of the Civil Rights Act,
42 U.S.C. § 2000e et  seq., the Americans with Disabilities Act,
42 U.S.C. § 12101 et  seq., the Employee Retirement Income
Security Act of 1974, 29 U.S.C. § 1001 et  seq., the Family and
Medical Leave Act, 29 U.S.C. § 2601 et  seq., the National Labor
Relations Act, 29 U.S.C. § 151 et  seq., the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. § 2101 et seq., the Sarbanes-Oxley Act, 15 U.S.C. § 7201 et  seq.,
any claim arising under Minn. Stat. Chapters 177 and 181, Minn. Stat. § 176.82,
Minn. Stat. § 181.932, and any claim for retaliation, harassment or
discrimination based on sex, race, color, creed, religion, age, national
origin, marital status, sexual orientation, disability, status with regard to
public assistance, military status or any other protected class, or sexual or
other harassment.  I hereby waive any and
all relief not provided for in the Executive Employment Agreement.  I understand and agree that, by signing this
Release of Claims, I waive and release any past, present, or future claim to
employment with Christopher & Banks.

c.                                       If I file, or have filed on my behalf, a charge,
complaint, or action, I agree that the payments and benefits described in my
Executive Employment Agreement are in complete satisfaction of any and all
claims in connection with such charge, complaint, or action and I waive,
and agree not to take, any award of money or other damages from such charge,
complaint, or action.

d.                                      I am not, by signing this Release of Claims,
releasing or waiving (1) any vested interest I may have in any 401(k) or profit
sharing plan by virtue of my employment with Christopher & Banks, (2) any
rights or claims that may arise after this Release of Claims is signed, (3) the
post-employment payments and benefits specifically promised to me under the
Executive Employment Agreement, (4) the right to institute legal

 16
 

action for the purpose of enforcing
all of the provisions of the Executive Employment Agreement, (5) my rights to
indemnification and/or insurance for my acts or omissions that occurred within
the scope of my employment with Christopher & Banks, (6) any rights I may
have under state unemployment compensation benefits law, (7) any rights I may
have under workers compensation benefits laws, or (8) the right to file a
charge of discrimination with a governmental agency, although, as noted above,
I agree that I will not be able to recover any award of money or damages if I
file such a charge or have a charge filed on my behalf.

e.                                       Christopher & Banks, as used in this Release
of Claims, shall mean Christopher & Banks Corporation, Christopher &
Banks, Inc., and its and their subsidiaries, divisions, affiliated or related
entities, insurers, and its and their present and former officers, directors,
shareholders, trustees, employees, agents, attorneys, representatives and
consultants, and the successors and assigns of each, whether in their individual
or official capacities, and the current and former trustees or administrators
of any pension or other benefit plan applicable to the employees or former
employees of Christopher & Banks, in their official and individual
capacities.

2.                                       Notice of Right to Consult Attorney and
Twenty-One (21) Calendar Day Consideration Period.  By
signing this Release of Claims, I acknowledge and agree that Christopher &
Banks has informed me by this Release of Claims that (1) I have the right to
consult with an attorney of my choice prior to signing this Release of Claims,
and (2) I am entitled to twenty-one (21) calendar days from the receipt of this
Release of Claims to consider whether the terms are acceptable to me.  Christopher & Banks encourages me to use
the full 21-day period to consider this Release of Claims but I have the right,
if I choose, to sign this Release of Claims prior to the expiration of the
twenty-one (21) day period.

3.                                       Notification of Rights under the Minnesota Human
Rights Act (Minn. Stat. Chapter 363A) and the Federal Age Discrimination in
Employment Act (29 U.S.C. § 621 et seq.).  Christopher & Banks hereby
notifies me of my right to rescind the release of claims contained in this
Release of Claims with regard to claims arising under the Minnesota Human
Rights Act, Minnesota Statutes Chapter 363A, within fifteen (15) calendar days
of my signing this Release of Claims, and with regard to my rights arising
under the federal Age Discrimination in Employment Act, 29 U.S.C. § 621 et
seq., within seven (7) calendar days of my signing this Release of
Claims.  The two rescission periods shall
run concurrently.  In order to be
effective, the rescission must (a) be in writing; (b) delivered to
[name], [title], Christopher & Banks Corporation, 2400 Xenium Lane North,
Plymouth, MN 55441 by hand or mail within the required period; and (c) if
delivered by mail, the rescission must be postmarked within the required
period, properly addressed to [name], as set forth above, and sent by certified
mail, return receipt requested.  This
Release of Claims will be effective upon the expiration of the 15-day period
without rescission.  I understand that if
I rescind any part of this Release of Claims in accordance with this paragraph,
I will not receive the post-employment payments and benefits described in the
Executive Employment Agreement and I will be obligated to return any such
payments and benefits if already received.

4.                                       Non-Disparagement.  I
promise and agree not to disparage Christopher & Banks (as defined in Section
1(e) above).  Likewise, Christopher &
Banks’ Board of Directors and those management-level employees of Christopher
& Banks who are aware of this Agreement promise and agree not to disparage
you.

5.                                       Acknowledgment of Reading and Understanding.  By signing
this Release of Claims, I acknowledge that I have read this Release of Claims,
and understand that the release of claims is a full and final release of all
claims I may have against Christopher & Banks and the other entities and
individuals covered by the release.

 17
 

By signing, I also acknowledge
and agree that I have entered into this Release of Claims knowingly and
voluntarily.

ACKNOWLEDGMENT AND
SIGNATURE

By signing below, I, Lorna
Nagler, acknowledge and agree to the following:

·                  I have had adequate time to consider whether to
sign this Release of Claims.

·                  I have read this Release of Claims carefully.

·                  I understand and agree to all of the terms of the
Release of Claims.

·                  I am knowingly and voluntarily releasing my
claims against Christopher & Banks to the extent expressly set forth in
this Release of Claims.

·                  I have not, in signing this Release of Claims,
relied upon any statements or explanations made by Christopher & Banks
except as for those specifically set forth in this Release of Claims and the
Executive Employment Agreement.

·                  I intend this Release of Claims to be legally
binding.

·                  I am signing this Release of Claims on or after
my last day of employment with Christopher & Banks.

Accepted this        day
of                                ,
        .

	
   

  	
   

  
	
  Lorna Nagler

  

 

 18

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