Document:

Unassociated Document

    SEPARATION AGREEMENT AND
RELEASE OF CLAIMS

    

    THIS AGREEMENT is made and entered into
by and between NexCen Brands,
Inc. (the “Company”) and Kenneth J. Hall (the
“Executive”).

    

    All
capitalized terms used herein unless otherwise defined in this Agreement shall
have the meaning assigned to them in the Employment Agreement (as defined
below).

    

    WHEREAS,
the Company and Executive entered into an employment agreement made as of March
19, 2008 and an Amendment No. 1. to that employment agreement made as of August
15, 2008 (collectively, with any exhibits attached thereto, the “Employment
Agreement”);

    

    WHEREAS,
on July 30, 2010 the Company completed the sale of substantially all of its
assets under the Acquisition Agreement, dated May 13, 2010, by and between the
Company and Global Franchise Group, LLC (the “Sales Transaction”);

    

    WHEREAS,
effective as of August 13, 2010 (“Termination Date”), Executive will be
terminated by the Company without Cause based upon a Change in Control, and
Executive will cease to hold any position as an officer of the Company or any
Subsidiary;

    

    WHEREAS, Executive desires to receive
separation pay and benefits, and the Company is willing to provide separation
pay and benefits on the condition that Executive enters into this
Agreement.

    

    THEREFORE,
in consideration of the mutual agreements and promises set forth within this
Agreement, the receipt and sufficiency of which are hereby acknowledged, the
Company and Executive agree as follows:

    

    
      	
              1. 

            	
              Consideration

            

    

    

    In
consideration of Executive's agreements and promises set forth below, the
Company will provide to Executive the following separation payments in
accordance with the Employment Agreement:

    

    
      	
               
      

            	
              a.

            	
              Base Salary, Bonus and Accrued
      Paid Time Off.   The Company shall pay to Executive
      any unpaid Base Salary and Quarterly Bonus (prorated based upon the number
      of days that the Executive is employed during the third calendar quarter
      of 2010) through and including the Termination
  Date.

            

    

    

    Executive
shall be paid all accrued but unused paid time off during the Employment Period
through and including the Termination Date.  The parties acknowledge
and agree that as of the Termination Date, Executive has accrued 15.5 days of
paid time off.  The Company shall pay all amounts for such paid time
off, less deductions for federal and/or state income tax withholding, FICA and
any other deduction from wages required by law or regulation, by including such
net amount in a payroll payment to be made pursuant to the Company’s normal
payroll practices, following the Termination Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              b.

            	
              Lump Sum Severance
      Payment.  The Company shall pay to Executive a Severance
      Payment totaling One
      Million, Nine Hundred Thousand, Nine Hundred Dollars
      ($1,999,900.00) (less standard statutory deductions for federal and
      state taxes and withholdings) in a lump sum by including such net amount
      in a payroll payment immediately following the Termination Date in
      accordance with the Company’s normal payroll
  practices.

            

    

    

    
      	
               
      

            	
              c.

            	
              Continued
      Participation in Company’s Group Medical
      Plan.  Subject to Executive’s timely election under the
      Consolidated Omnibus Budget Reconciliation Act (“COBRA”), Executive shall continue to be eligible to
      participate in the group medical plan
      of the Company or its
      successor
      sponsor on the same basis as he previously
      participated, until the earlier of eighteen months from the Terminate
      Date or the date
      Executive is provided with health insurance coverage by a successor
      employer.  Executive shall promptly inform the Company’s wind down consultant,
      XRoads Solutions
      Group, attention Dennis Simon, if and when he is provided with
      health insurance coverage by a successor
  employer.

            

    

    

    
      	
               
      

            	
              d.

            	
              Reimbursable
      Expenses.  The Company shall pay to Executive all
      reimbursable expenses due and owing to the Executive through the
      Termination Date in accordance with the Company’s expense reimbursement
      policy.  Executive agrees to use best efforts to submit all
      expense reports no later than 30 days following his Termination
      Date.

            

    

    

    
      	
               
      

            	
              e.

            	
              Computer and
      Blackberry.  The Company agrees to allow Executive to
      retain the computer equipment and the Blackberry device provided to him,
      at no cost to him.  All data contained on the retained computer
      equipment and Blackberry device shall be subject to the confidentiality
      provision of Section 1.5 of the Employment
  Agreement.

            

    

    

    
      	
               
      

            	
              f.

            	
              Stock
      Options.  Executive
      shall be fully vested as of the Termination Date in his outstanding Option
      Grants to purchase shares of the Company’s common
  stock.

            

    

    

    
      	
               
      

            	
              g.

            	
              Other
      Benefits.  Executive shall
      receive any vested benefits to which Executive is entitled in accordance
      with the terms of any
      of the Company's employee benefit plans or programs, including, without limitation, the Company's 401(k)
      plan.

            

    

    

    The terms of Paragraph 1 shall have no
force if Executive revokes his acceptance of this Agreement pursuant to
Paragraph 11 (Special Provisions for Age Discrimination).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              2. 

            	
              No
      Further Payments

            

    

    

    Except as provided for in Paragraph 1,
Executive is not entitled to and will not receive any further salary, wages,
benefits, severance or separation payments from the Company.

    

    
      	
              3. 

            	
              General
      Release

            

    

    

    Executive
on behalf of himself and his heirs, successors and assigns, in consideration of
the performance by the Company of its material obligations under the Employment
Agreement and this Agreement, do hereby release and forever discharge as of the
date hereof the Company, its Subsidiaries, its Affiliates, each such Person’s
respective successors and assigns and each of the foregoing Persons’ respective
present and former directors, officers, partners, stockholders, members,
managers, agents, representatives, employees (and each such Person’s respective
successors and assigns) (collectively, the “Released Parties”) to the
extent provided below.

    

    
      	
               
      

            	
              a.

            	
              Executive
      understands that payments or benefits paid or granted to him under this
      Agreement represent, in part, consideration for signing this Agreement and
      are not salary, wages or benefits to which he was already
      entitled.  Executive understands and agrees that he will not
      receive the payments and benefits specified in Paragraph 1 of this
      Agreement unless he executes this Agreement and does not revoke this
      Agreement within the time period permitted hereafter or breach this
      Agreement.

            

    

    

    
      	
               
      

            	
              b.

            	
              Executive
      knowingly and voluntarily releases and forever discharges the Company and
      the other Released Parties from any and all claims, controversies,
      actions, causes of action, cross-claims, counter-claims, demands, debts,
      compensatory damages, liquidated damages, punitive or exemplary damages,
      other damages, claims for costs and attorneys’ fees, or liabilities of any
      nature whatsoever in law and in equity, both past and present (through the
      date of this Agreement), whether under the laws of the United States or
      another jurisdiction and whether known or unknown, suspected or claimed
      against the Company or any of the Released Parties which Executive, his
      spouse, or any of his heirs, executors, administrators or assigns, have or
      may have, which arise out of or are connected with his employment with, or
      his separation from, the Company (including, but not limited to, any
      allegation, claim or violation, arising under: Title VII of the Civil
      Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age
      Discrimination in Employment Act of 1967, as amended (including the Older
      Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended;
      the Americans with Disabilities Act of 1990; the Family and Medical Leave
      Act of 1993; the Civil Rights Act of 1866, as amended; the Worker
      Adjustment Retraining and Notification Act; the Employee Retirement Income
      Security Act of 1974; any applicable Executive Order Programs; the Fair
      Labor Standards Act; or their state or local counterparts; or under any
      other federal, state or local civil or human rights law, or under any
      other local, state, or federal law, regulation or ordinance; or under any
      public policy, contract or tort, or under common law; or arising under any
      policies, practices or procedures of the Company or any of the Released
      Parties; or any claim for wrongful discharge, breach of contract,
      infliction of emotional distress, or defamation; or any claim for costs,
      fees, or other expenses, including attorneys’ fees incurred in these
      matters (all of the foregoing collectively referred to herein as the
      “Claims”); provided, however, that nothing contained in this Agreement
      shall apply to, or release the Company from, (i) any obligation of
      the Company contained in the Employment Agreement and this Agreement to be
      performed after the date hereof or (ii) any vested or accrued
      benefits pursuant to any employee benefit plan, program or policy of the
      Company.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              c.

            	
              Executive
      represents that he has made no assignment or transfer of any right, claim,
      demand, cause of action, or other matter covered by Paragraph 3.b.
      above.

            

    

    

    
      	
               
      

            	
              d.

            	
              Executive
      agrees that this Agreement does not waive or release any rights or claims
      that he may have under the Age Discrimination in Employment Act of 1967
      which arise after the date he executes this Agreement. Executive
      acknowledges and agrees that his separation from employment with the
      Company in compliance with the terms of the Employment Agreement and this
      Agreement shall not serve as the basis for any claim or action (including,
      without limitation, any claim under the Age Discrimination in Employment
      Act of 1967).

            

    

    

    
      	
               
      

            	
              e.

            	
              In
      signing this Agreement, Executive acknowledges and intends that the
      Agreement shall be effective as a bar to each and every one of the Claims
      hereinabove mentioned or implied.  Executive expressly consents
      that this General Release shall be given full force and effect according
      to each and all of its express terms and provisions, including those
      relating to unknown and unsuspected Claims (notwithstanding any state
      statute that expressly limits the effectiveness of a general release of
      unknown, unsuspected and unanticipated Claims), if any, as well as those
      relating to any other Claims hereinabove mentioned or
      implied.  Executive acknowledges and agrees that this waiver is
      an essential and material term of this Agreement and that without such
      waiver the Company would not have agreed to the terms of the
      Agreement.  Executive covenants that he shall not directly or
      indirectly, commence, maintain or prosecute or sue any of the Released
      Persons either affirmatively or by way of cross-complaint, indemnity
      claim, defense or counterclaim or in any other manner or at all on any
      Claim covered by this General Release.  Executive further agrees
      that in the event he should bring a Claim seeking damages against the
      Company, or in the event he should seek to recover against the Company in
      any Claim brought by a governmental agency on his behalf, this Agreement
      shall serve as a complete defense to such Claims. Executive further agree
      that he is not aware of any pending charge or complaint of the type
      described in Paragraph 3.b. as of the execution of this
      Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4. 

            	
              No
      Admission of Liability

            

    

    

    Executive
agrees that neither this Agreement, nor the furnishing of the consideration for
this Agreement, shall be deemed or construed at any time to be an admission by
the Company, any Released Party or Executive of any improper or unlawful
conduct.

    

    

    
      	
              5. 

            	
              Affirmation
      of Employment Agreement; Waiver of Non-Compete
  Covenant

            

    

    

    Except as
otherwise provided in this Agreement, the parties hereby expressly re-affirm the
Employment Agreement, including, but not limited to, Executive’s obligations
under Sections 1.5, 1.6, 1.7 (except as provided in Paragraph 1.e. hereof),
1.8(b), 1.10 and 3.1 of the Employment Agreement and the Company’s obligations
under Section 1.3(g) of the Employment Agreement.

    

    Notwithstanding
anything to the contrary in the Employment Agreement, the parties acknowledge
that pursuant to the Sales Transaction the Company no longer has a continuing
business.  The Company hereby waives the non-compete covenant in
Section 1.8(a) of the Employment Agreement, and the Executive shall not be
precluded from participating in or otherwise being employed by or providing
services to any Person.

     

    
      	
              6. 

            	
              Validity

            

    

    

    Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

    

    
      	
              7.

            	
              Successors and
      Assigns

            

    

    

    This Agreement shall inure to and be
binding upon the parties hereto and to their respective heirs, legal
representatives, successors, and assigns.

    

    
      	
              8.

            	
              Governing
    Law

            

    

    

    This Agreement shall be construed in
accordance with the laws of
the state of New York and any applicable federal laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              Special
      Notification

            

    

    

    Because this Agreement includes a waiver
and release of claims arising under the Age Discrimination in Employment Act,
federal law provides that Executive may have forty-five (45) days from receipt of the Agreement to
review and consider this Agreement and the disclosure information
attached hereto as Exhibit A (which is provided pursuant to the Older Workers
Benefit Protection Act) before
executing it.  Federal law also provides that the
Company must advise Executive to consult with an attorney before signing
this Agreement.  Executive understands that it is
Executive’s decision whether or not to consult an
attorney.

    

    Pursuant to federal law, Executive is
further advised that the
release and covenant not to sue contained herein do not apply to claims that
arise after the execution of this Agreement.  Executive further
understands and agrees that Executive is receiving additional consideration that
Executive would not be entitled to receive under
the Employment Agreement, any Company policy, practice or plan of if Executive
did not execute this Agreement which includes the waiver and release of claims
under the Age Discrimination in Employment Act.

    

    Executive represents and warrants that he has
had ample opportunity to consider this Agreement and has had an opportunity to
consult an attorney before executing this Agreement.

    

    
      	
              10.

            	
              Revocation of
      Agreement

            

    

    

    Federal law also provides that, because
this Agreement waives and
releases claims arising under the Age Discrimination in Employment Act, that
Executive may revoke this Agreement within seven (7) days after Executive
executes it.  For this revocation to be effective, written notice must
be received by XRoads
Solutions Group, attention
Dennis Simon, no later than
the close of business on the seventh day after Executive has executed this
Agreement.  If Executive revokes the Agreement, it will not be
effective or enforceable, and Executive will not receive the payments or benefits described in Paragraph
1.

    

    
      	
              11. 

            	
              Acknowledgement.

            

    

    

    BY
SIGNING THIS AGREEMENT, EXECUTIVE REPRESENTS AND AGREES THAT:

    

    (a) EXECUTIVE
HAS READ IT CAREFULLY;

    

    (b) EXECUTIVE
UNDERSTANDS ALL OF ITS TERMS AND KNOW THAT HE IS GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED;
THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

    

    (c) EXECUTIVE
VOLUNTARILY CONSENTS TO EVERYTHING IN THE AGREEMENT;

    

    (d) EXECUTIVE
HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY (VIA THIS AGREEMENT) BEFORE
EXECUTING IT AND EXECUTIVE HAS DONE SO OR, AFTER CAREFUL READING AND
CONSIDERATION, EXECUTIVE HAS CHOSEN NOT TO DO SO OF HIS OWN
VOLITION;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (e) EXECUTIVE
HAS HAD AT LEAST 45 DAYS FROM THE DATE OF HIS RECEIPT OF THE LANGUAGE OF THE
GENERAL RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON AUGUST 4, 2010 TO CONSIDER IT
AND THE DISCLOSURE INFORMATION ATTACHED HERETO AS EXHIBIT A (WHICH IS PROVIDED
PURSUANT TO THE OLDER WORKERS BENEFIT PROTECTION ACT); AND THE CHANGES MADE
SINCE THE AUGUST 4, 2010 VERSION OF THE GENERAL RELEASE ARE NOT MATERIAL AND
WILL NOT RESTART THE REQUIRED 45-DAY PERIOD;

    

    (f) THE
CHANGES TO THE LANGUAGE OF THE GENERAL RELEASE SINCE AUGUST 4, 2010 EITHER ARE
NOT MATERIAL OR WERE MADE AT HIS REQUEST.

    

    (g) EXECUTIVE
HAS SIGNED THIS AGREEMENT KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY
COUNSEL RETAINED TO ADVISE HIM WITH RESPECT TO IT; AND

    

    (h) EXECUTIVE
AGREES THAT THE PROVISIONS OF THIS AGREEMENT MAY NOT BE AMENDED, WAIVED, CHANGED
OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY EXECUTIVE.

     

    IN WITNESS WHEREOF, the Parties have
executed this Agreement as of the date indicated below.

    

    

     

    
      	
              /s/ Kenneth J. Hall

            	
               

            

    

     

    KENNETH J. HALL

    Date:                      August 5, 2010

    

     

     

    NEXCEN BRANDS,
INC.

     

    
      	
              By:

            	/s/
      David Oros	
               

            

    

     

    Name:  David Oros

    Title:  Chairman of the Board of
Directors

    Date:  August 4, 2010

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

    

    DISCLOSURE INFORMATION PROVIDED PURSUANT
TO THE

    OLDER WORKERS BENEFIT PROTECTION
ACT

    

    Eligibility Factors and Time Limitations
Applicable to

    Eligible
Employees for Severance Benefits

    

    NexCen Brands, Inc. (the “Company”) has
decided to terminate the employment of certain of its
employees.  Employees receiving notification of termination of their
employment in connection therewith may be eligible to receive severance benefits
in exchange for their execution of (and subject to) the attached Separation
Agreement and General Release (“Agreement”) in accordance with the terms set
forth therein.

    

    Each selected employee age 40 or over
will have at least forty-five (45) days from such employee’s receipt of the
Agreement and this disclosure information to provide the Company with a fully
executed Agreement in order to receive the severance benefits pursuant to the
Agreement.  Employees age 40 or over who timely execute and return the
Agreement will have a period of seven (7) calendar days from the date that the
Agreement is signed to revoke it by delivering written notice of revocation as
provided in the Agreement.

    

    The job titles and ages of all of the
Company employees at the decisional unit affected by the terminations who are,
and are not, selected for termination are listed below.

     

    
      
        	
                Titles

              	
                Age

              	
                Selected

              	
                Not
      Selected

              
	
                Chief
      Executive Officer

              	
                52

              	
                X

              	 
      
	
                General
      Counsel and Secretary

              	
                40

              	
                X

              	 
      
	
                Chief
      Accounting Officer

              	
                48

              	
                X

              	 
      
	
                Vice
      President, Corporate Development

              	
                30

              	
                X

              	 
      
	
                Director
      of Financial Reporting

              	
                45

              	
                X

              	 
      
	
                Corporate
      Staff Accountant

              	
                34

              	
                X

              	 
      
	
                Corporate
      Senior Accountant

              	
                47

              	
                XUnassociated Document

    
      SEPARATION AGREEMENT AND
RELEASE OF CLAIMS

      

      THIS AGREEMENT is made and entered into
by and between NexCen Brands,
Inc. (the “Company”) and Sue J. Nam (the
“Executive”).

       

      All
capitalized terms used herein unless otherwise defined in this Agreement shall
have the meaning assigned to them in the Employment Agreement (as defined
below).

       

      WHEREAS,
the Company and Executive entered into an employment agreement made as of August
29, 2007, Amendment No. 1 to the employment agreement as of June 30, 2008,
Amendment No. 2  as of September 26, 2008 and Amendment No. 3 as of
June 30, 2009   (collectively, with
any exhibits attached thereto, the “Employment Agreement”);

       

      WHEREAS,
on July 30, 2010 the Company completed the sale of substantially all of its
assets under the Acquisition Agreement, dated May 13, 2010, by and between the
Company and Global Franchise Group, LLC (the “Sales Transaction”);

      

      WHEREAS,
effective as of August 17, 2010 (“Termination Date”), Executive will be
terminated by the Company without Cause based upon a Change in Control, and
Executive will cease to hold any position as an officer of the Company or any
Subsidiary;

      

      WHEREAS, Executive desires to receive
separation pay and benefits, and the Company is willing to provide separation
pay and benefits on the condition that Executive enters into this
Agreement.

       

      THEREFORE,
in consideration of the mutual agreements and promises set forth within this
Agreement, the receipt and sufficiency of which are hereby acknowledged, the
Company and Executive agree as follows:

       

      
        	
                1. 

              	
                Consideration

              

      

       

      In
consideration of Executive's agreements and promises set forth below, the
Company will provide to Executive the following separation payments in
accordance with the Employment Agreement:

       

      
        	
                 
      

              	
                a.

              	
                Base Salary, Bonus and Accrued
      Paid Time Off.   The Company shall pay to Executive
      any unpaid Base Salary and Quarterly Bonus (prorated based upon the number
      of days that the Executive is employed during the third calendar quarter
      of 2010) through and including the Termination
  Date.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Executive
shall be paid all accrued but unused paid time off during the Employment Period
through and including the Termination Date.   The parties
acknowledge and agree that as of the Termination Date, Executive has accrued 13
days of paid time off.  The Company shall pay all amounts for such
paid time off, less deductions for federal and/or state income tax withholding,
FICA and any other deduction from wages required by law or regulation, by
including such net amount in a payroll payment to be made pursuant to the
Company’s normal payroll practices, following the Termination Date.

       

      
        	
                 
      

              	
                b.

              	
                Lump Sum Severance
      Payment.  The Company shall pay to Executive a Severance
      Payment totaling Five
      Hundred Sixteen Thousand Dollars ($516,000.00) (less standard
      statutory deductions for federal and state taxes and withholdings) in a
      lump sum by including such net amount in a payroll payment immediately
      following the Termination Date in accordance with the Company’s normal
      payroll practices.

              

      

       

      
        	
                 
      

              	
                c.

              	
                Continued Participation in
      Company’s Group Medical Plan.   Subject to Executive’s
      timely election under the Consolidated Omnibus Budget Reconciliation Act
      (“COBRA”), Executive shall continue to be eligible to participate in the
      group medical plan of the Company or its successor sponsor on the same
      basis as she previously participated, until the earlier of twelve months
      from the Terminate Date or the date Executive is provided with health
      insurance coverage by a successor employer.  Executive shall
      promptly inform the Company’s wind down consultant XRoads Solutions Group,
      attention Dennis Simon, if and when she is provided with health insurance
      coverage by a successor employer.

              

      

       

      
        	
                 
      

              	
                d.

              	
                Reimbursable
      Expenses.  The Company shall pay to Executive all
      reimbursable expenses due and owing to the Executive through the
      Termination Date in accordance with the
      Company’s expense reimbursement policy.  Executive agrees
      to use best efforts to submit all expense reports no later than 30 days
      following her Termination Date.

              

      

       

      
        	
                 
      

              	
                e.

              	
                Computer and
      Blackberry.  The Company agrees to allow Executive to
      retain the computer equipment and the Blackberry device provided to her,
      at no cost to her.  All data contained on the retained computer
      equipment and Blackberry device shall be subject to the confidentiality
      provision of Section 1.5 of the Employment
  Agreement.

              

      

       

      
        	
                 
      

              	
                f.

              	
                Stock Options. Executive
      shall be fully vested as of the Termination Date in her outstanding Option
      Grants to purchase shares of the Company’s common
  stock.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                g.

              	
                Other
      Benefits.  Executive shall receive any vested benefits to
      which Executive is entitled in accordance with the terms of any of the
      Company's employee benefit plans or programs, including without limitation
      the Company's 401(k) plan.

              

      

       

      The terms of Paragraph 1 shall have no
force if Executive revokes her acceptance of this Agreement pursuant to
Paragraph 11 (Special Provisions for Age Discrimination).

       

      
        	
                2. 

              	
                No
      Further Payments

              

      

       

      Except as provided for in Paragraph 1,
Executive is not entitled to and will not receive any further salary, wages,
benefits, severance or separation payments from the Company.

       

      
        	
                3. 

              	
                General
      Release

              

      

       

      Executive
on behalf of himself and her heirs, successors and assigns, in consideration of
the performance by the Company of its material obligations under the Employment
Agreement and this Agreement, do hereby release and forever discharge as of the
date hereof the Company, its Subsidiaries, its Affiliates, each such Person’s
respective successors and assigns and each of the foregoing Persons’ respective
present and former directors, officers, partners, stockholders, members,
managers, agents, representatives, employees (and each such Person’s respective
successors and assigns) (collectively, the “Released Parties”) to the
extent provided below.

      

      
        	
                 
      

              	
                a.

              	
                Executive
      understands that payments or benefits paid or granted to him under this
      Agreement represent, in part, consideration for signing this Agreement and
      are not salary, wages or benefits to which she was already
      entitled.  Executive understands and agrees that she will not
      receive the payments and benefits specified in Paragraph 1 of this
      Agreement unless she executes this Agreement and does not revoke this
      Agreement within the time period permitted hereafter or breach this
      Agreement.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Executive
      knowingly and voluntarily releases and forever discharges the Company and
      the other Released Parties from any and all claims, controversies,
      actions, causes of action, cross-claims, counter-claims, demands, debts,
      compensatory damages, liquidated damages, punitive or exemplary damages,
      other damages, claims for costs and attorneys’ fees, or liabilities of any
      nature whatsoever in law and in equity, both past and present (through the
      date of this Agreement), whether under the laws of the United States or
      another jurisdiction and whether known or unknown, suspected or claimed
      against the Company or any of the Released Parties which Executive, her
      spouse, or any of her heirs, executors, administrators or assigns, have or
      may have, which arise out of or are connected with her employment with, or
      her separation from, the Company (including, but not limited to, any
      allegation, claim or violation, arising under: Title VII of the Civil
      Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age
      Discrimination in Employment Act of 1967, as amended (including the Older
      Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended;
      the Americans with Disabilities Act of 1990; the Family and Medical Leave
      Act of 1993; the Civil Rights Act of 1866, as amended; the Worker
      Adjustment Retraining and Notification Act; the Employee Retirement Income
      Security Act of 1974; any applicable Executive Order Programs; the Fair
      Labor Standards Act; or their state or local counterparts; or under any
      other federal, state or local civil or human rights law, or under any
      other local, state, or federal law, regulation or ordinance; or under any
      public policy, contract or tort, or under common law; or arising under any
      policies, practices or procedures of the Company or any of the Released
      Parties; or any claim for wrongful discharge, breach of contract,
      infliction of emotional distress, or defamation; or any claim for costs,
      fees, or other expenses, including attorneys’ fees incurred in these
      matters (all of the foregoing collectively referred to herein as the
      “Claims”); provided, however, that nothing contained in this Agreement
      shall apply to, or release the Company from, (i) any obligation of
      the Company contained in the Employment Agreement and this Agreement to be
      performed after the date hereof or (ii) any vested or accrued
      benefits pursuant to any employee benefit plan, program or policy of the
      Company.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                c.

              	
                Executive
      represents that she has made no assignment or transfer of any right,
      claim, demand, cause of action, or other matter covered by Paragraph 3.b.
      above.

              

      

      

      
        	
                 
      

              	
                d.

              	
                Executive
      agrees that this Agreement does not waive or release any rights or claims
      that she may have under the Age Discrimination in Employment Act of 1967
      which arise after the date she executes this Agreement. Executive
      acknowledges and agrees that her separation from employment with the
      Company in compliance with the terms of the Employment Agreement and this
      Agreement shall not serve as the basis for any claim or action (including,
      without limitation, any claim under the Age Discrimination in Employment
      Act of 1967).

              

      

      

      
        	
                 
      

              	
                e.

              	
                In
      signing this Agreement, Executive acknowledges and intends that the
      Agreement shall be effective as a bar to each and every one of the Claims
      hereinabove mentioned or implied. Executive expressly consents that this
      General Release shall be given full force and effect according to each and
      all of its express terms and provisions, including those relating to
      unknown and unsuspected Claims (notwithstanding any state statute that
      expressly limits the effectiveness of a general release of unknown,
      unsuspected and unanticipated Claims), if any, as well as those relating
      to any other Claims hereinabove mentioned or implied. Executive
      acknowledges and agrees that this waiver is an essential and material term
      of this Agreement and that without such waiver the Company would not have
      agreed to the terms of the Agreement. Executive covenants that she shall
      not directly or indirectly, commence, maintain or prosecute or sue any of
      the Released Persons either affirmatively or by way of cross-complaint,
      indemnity claim, defense or counterclaim or in any other manner or at all
      on any Claim covered by this General Release. Executive further agrees
      that in the event she should bring a Claim seeking damages against the
      Company, or in the event she should seek to recover against the Company in
      any Claim brought by a governmental agency on her behalf, this Agreement
      shall serve as a complete defense to such Claims. Executive further agree
      that she is not aware of any pending charge or complaint of the type
      described in Paragraph 3.b. as of the execution of this
      Agreement.

              

      

      

      
        	
                4. 

              	
                No
      Admission of Liability

              

      

       

      Executive
agrees that neither this Agreement, nor the furnishing of the consideration for
this Agreement, shall be deemed or construed at any time to be an admission by
the Company, any Released Party or Executive of any improper or unlawful
conduct.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                5. 

              	
                Affirmation
      of Employment Agreement; Waiver of Non-Compete
  Covenant.

              

      

       

      Except as
otherwise provided in this Agreement, the parties hereby expressly re-affirm the
Employment Agreement, including but not limited to the Executive’s obligations
under Sections 1.5, 1.6, 1.7 (except as provided in Paragraph 1.e hereof),
1.8(b), 1.10 and 3.1 of the Employment Agreement and the Company’s obligations
under Section 1.3(g) of the Employment Agreement.

      

      Notwithstanding
anything to the contrary in the Employment Agreement, the parties acknowledge
that pursuant to the Sales Transaction the Company no longer has a continuing
business.  The Company hereby waives the non-compete covenant in
Section 1.8(a) of the Employment Agreement, and the Executive shall not be
precluded from participating in or otherwise being employed by or providing
services to any Person.

      

      
        	
                6. 

              	
                Validity

              

      

       

      Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

      

      
        	
                7. 

              	
                Successors
      and Assigns

              

      

       

      This
Agreement shall inure to and be binding upon the parties hereto and to their
respective heirs, legal representatives, successors, and assigns.

       

      
        	
                8. 

              	
                Governing
      Law

              

      

       

      This
Agreement shall be construed in accordance with the laws of the state of New
York and any applicable federal laws.

       

      
        	
                9. 

              	
                Special
      Notification

              

      

       

      Because
this Agreement includes a waiver and release of claims arising under the Age
Discrimination in Employment Act, federal law provides that Executive may have
forty-five (45) days from receipt of the Agreement to review and consider this
Agreement and the disclosure information attached
hereto as Exhibit A (which is provided pursuant to the Older Workers Benefit
Protection Act) before
executing it.  Federal law also provides that the Company must advise
Executive to consult with an attorney before signing this
Agreement.  Executive understands that it is Executive’s decision
whether or not to consult an attorney.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Pursuant
to federal law, Executive is further advised that the release and covenant not
to sue contained herein do not apply to claims that arise after the execution of
this Agreement.  Executive further understands and agrees that
Executive is receiving additional consideration that Executive would not be
entitled to receive under the Employment Agreement, any Company policy, practice
or plan of if Executive did not execute this Agreement which includes the waiver
and release of claims under the Age Discrimination in Employment
Act.

       

      Executive
represents and warrants that she has had ample opportunity to consider this
Agreement and has had an opportunity to consult an attorney before executing
this Agreement.

       

      
        	
                10. 

              	
                Revocation
      of Agreement

              

      

       

      Federal
law also provides that, because this Agreement waives and releases claims
arising under the Age Discrimination in Employment Act, that Executive may
revoke this Agreement within seven (7) days after Executive executes
it.  For this revocation to be effective, written notice must be
received by XRoad Solutions Group, attention Dennis Simon, no later than the
close of business on the seventh day after Executive has executed this
Agreement.  If Executive revokes the Agreement, it will not be
effective or enforceable, and Executive will not receive the payments or
benefits described in Paragraph 1.

       

      
        	
                11. 

              	
                Acknowledgement.

              

      

       

      BY
SIGNING THIS AGREEMENT, EXECUTIVE REPRESENTS AND AGREES THAT:

      

      (a) EXECUTIVE
HAS READ IT CAREFULLY;

      

      (b) EXECUTIVE
UNDERSTANDS ALL OF ITS TERMS AND KNOW THAT SHE IS GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED;
THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

      

      (c) EXECUTIVE
VOLUNTARILY CONSENTS TO EVERYTHING IN THE AGREEMENT;

      

      (d) EXECUTIVE
HAS BEEN ADVISED TO CONSULT WITH AN ATTORNEY (VIA THIS AGREEMENT) BEFORE
EXECUTING IT AND EXECUTIVE HAS DONE SO OR, AFTER CAREFUL READING AND
CONSIDERATION, EXECUTIVE HAS CHOSEN NOT TO DO SO OF HER OWN
VOLITION;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      (e) EXECUTIVE
HAS HAD AT LEAST 45 DAYS FROM THE DATE OF HER RECEIPT OF THE LANGUAGE OF THE
GENERAL RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON AUGUST 5, 2010 TO CONSIDER IT AND THE DISCLOSURE INFORMATION ATTACHED HERETO AS
EXHIBIT A (WHICH IS PROVIDED PURSUANT TO THE OLDER WORKERS BENEFIT PROTECTION
ACT); AND THE CHANGES MADE SINCE THE AUGUST 5, 2010 VERSION OF THE GENERAL RELEASE ARE NOT
MATERIAL AND WILL NOT RESTART THE REQUIRED 45-DAY PERIOD;

      

      (f) THE
CHANGES TO THE LANGUAGE OF THE GENERAL RELEASE SINCE AUGUST 5, 2010 EITHER ARE
NOT MATERIAL OR WERE MADE AT HER REQUEST.

      

      (g) EXECUTIVE
HAS SIGNED THIS AGREEMENT KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY
COUNSEL RETAINED TO ADVISE HIM WITH RESPECT TO IT; AND

      

      (h) EXECUTIVE
AGREES THAT THE PROVISIONS OF THIS AGREEMENT MAY NOT BE AMENDED, WAIVED, CHANGED
OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY EXECUTIVE.

       

      IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date
indicated below.

       

       

       

      
        
          	
                  /s/ Sue J. Nam

                	
                   

                

        

         

        SUE J. NAM

        Date:                      August 5, 2010

        

         

         

        NEXCEN BRANDS,
INC.

         

        
          	
                  By:

                	/s/
      Kenneth J. Hall	
                   

                

        

         

      

      
        Name: 
Kenneth J. Hall

        Title:
Chief Executive Officer

        Date: 
August 5, 2010

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

      

      DISCLOSURE
INFORMATION PROVIDED PURSUANT TO THE

      OLDER
WORKERS BENEFIT PROTECTION ACT

      

      Eligibility
Factors and Time Limitations Applicable to

      Eligible Employees for
Severance Benefits

      

      NexCen Brands, Inc. (the “Company”) has
decided to terminate the employment of certain of its
employees.  Employees receiving notification of termination of their
employment in connection therewith may be eligible to receive severance benefits
in exchange for their execution of (and subject to) the attached Separation
Agreement and General Release (“Agreement”) in accordance with the terms set
forth therein.

      

      Each selected employee age 40 or over
will have at least forty-five (45) days from such employee’s receipt of the
Agreement and this disclosure information to provide the Company with a fully
executed Agreement in order to receive the severance benefits pursuant to the
Agreement.  Employees age 40 or over who timely execute and return the
Agreement will have a period of seven (7) calendar days from the date that the
Agreement is signed to revoke it by delivering written notice of revocation as
provided in the Agreement.

      

      The job titles and ages of all of the
Company employees at the decisional unit affected by the terminations who are,
and are not, selected for termination are listed below.

      

      
        	
                Titles

              	
                Age

              	
                Selected

              	
                Not
      Selected

              
	
                Chief
      Executive Officer

              	
                52

              	
                X

              	 
      
	
                General
      Counsel and Secretary

              	
                40

              	
                X

              	 
      
	
                Chief
      Accounting Officer

              	
                48

              	
                X

              	 
      
	
                Vice
      President, Corporate Development

              	
                30

              	
                X

              	 
      
	
                Director
      of Financial Reporting

              	
                45

              	
                X

              	 
      
	
                Corporate
      Staff Accountant

              	
                34

              	
                X

              	 
      
	
                Corporate
      Senior Accountant

              	
                47

              	
                X

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