Document:

Exhibit 10.01

                    COLONIAL COMMERCIAL CORP. 2006 STOCK PLAN
                                    DIRECTORS

(Please  sign  and  return  this  document to Riannon Russo, Colonial Commercial
Corp., 275 Wagaraw Road, Hawthorne, New Jersey 07506 within 10 days of receipt.)

          Name

          Tax ID Number

          Grant Date                  December 6, 2006

          Option to Purchase the      25,000
          Following Number of
          Shares of Common Stock

          Character of Option         Non-Qualified

          Exercise Price              $1.85

          Last Date to Exercise       December 6, 2016
          ("Expiration Date")

I  am pleased to advise you that you have been granted a stock option ("Option")
under  this  grant  letter  ("Grant  Letter")  to  purchase  shares  of Colonial
Commercial Corp. (the "Company") common  stock ("Common Stock"), pursuant to the
Company's  2006  Stock  Plan (the "Plan"), a copy of which is attached hereto as
Exhibit  A.

1.   Stock Option. Your Option is to purchase the number of shares of our common
     stock set forth above (the "Option Shares") at the Exercise Price set forth
     above.  Your  Option will expire at the close of business on the Expiration
     Date,  subject  to  earlier  termination  set  forth in the Plan or herein.

2.   Additional  Terms.

     a.   Vesting.  Subject  to  the  terms  of  the  Plan,  you  are  vested in
          10,000  Option  Shares  on  the  Grant Date. You will vest as to 5,000
          additional  Option  Shares on each of the first three anniversaries of
          the  Grant  Date,  but  only if you continue to serve as a Director on
          such  respective  anniversaries.

     b.   Exercise.  Subject  to  Section  2(c)(iii),  you  may  exercise all or
          any  portion  of  your  Option  to the extent it has vested and to the
          extent  it is valid and outstanding, at any time and from time to time
          prior to the Expiration Date, by delivering to the Company (i) written
          notice containing the information and representations appearing on the
          form  attached as Exhibit B, and (ii) payment of the Exercise Price in
          cash.  All  exercises  must  take place before the Expiration Date, or
          such  earlier  date  as is set forth either herein or in the Plan. The
          number  of Option Shares you may purchase as of any date cannot exceed
          the  total  number of Option Shares issuable upon exercise of the then
          vested  portion  of  your  Option,  less  any Option Shares previously
          issued.

<PAGE>
     c.   Sale  or  merger  of  the  Company.

          (i)  A "change  of  control"  shall  be  deemed  to  have  occurred if
               the  Company  is merged, consolidated or reorganized into or with
               another  corporation  or other entity, or the Company enters into
               an  agreement  whereby  a party that is not an "affiliate" of the
               Company  (as  such  term is defined under the Securities Exchange
               Act  of  1934),  by  tender  offer  or  otherwise,  is to acquire
               securities  of  the  Company,  and  as  a  result  of the merger,
               consolidation, reorganization or transactions contemplated by the
               agreement,  less  than a majority of the combined voting power of
               the  then-outstanding  securities  of  the  corporation or entity
               immediately after the transaction is held in the aggregate by the
               holders  of  voting  stock  immediately prior to the transaction.

          (ii) Your Option  shall  automatically  vest  in  full  simultaneously
               with  the  consummation  of a change of control if you are then a
               Director  of  the  Company.

          (iii) Unless  you  exercise  your  Option  simultaneously  with  the
               consummation  of  a  change  of control, the Company shall in its
               discretion  have  the  right  to:

               (1)  terminate  your  Option  by  paying  you  in  cash the value
                    of  the  then  vested  portion  of  your  Option  using  the
                    Black-Scholes  or other recognized formula to determine such
                    value  (which  shall  be  binding  on  you),  or

               (2)  convert  all  or  any  portion  of  your Option into options
                    to  purchase stock in the acquiring company on such terms as
                    the  Company  in  its  discretion  deems  equitable,  or

               (3)  take none  of  these  actions.

     d.   Non  Transferability  of  Option;  Service  Requirements.

          (i)  Your Option  is  personal  to  you  and  is  not  transferable by
               you  other  than by will or the laws of descent and distribution.
               During  your  lifetime,  only  you  can  exercise  your  Option.

          (ii) In the  event  of  the  termination  of  your  services  as  a
               Director  by  you,  the  Company  or  its  stockholders,  whether
               voluntary  or  involuntary,  all  further vesting of shares under
               this  grant stops, and all unvested shares are canceled. You will
               have  sixty (60) days after your services as a Director ceases or
               is  suspended to exercise your vested shares, and in the event of
               your death or total disability, your estate will have a period of
               twelve  (12)  months  to  exercise  any  vested  shares.

     e.   Securities  Laws  Restrictions.  You  represent  that  when  you
          exercise your Option you will be purchasing Option Shares for your own
          account  and  not  on behalf of others. You understand and acknowledge
          that  federal and state securities laws govern and restrict your right
          to  offer,  sell  or  otherwise  dispose  of  any Option Shares unless
          otherwise  covered  by  a  Form S-8 or other registration statement or
          unless  your  offer,  sale or other disposition thereof, is registered
          under the Securities Act of 1933 (the "1933 Act") and state securities
          laws  or, in the opinion of the Company's counsel, such offer, sale or
          other  disposition  is  exempt  from  the registration thereunder. You
          agree  that  you  will  not  offer,  sell  or  otherwise

<PAGE>
          dispose  of  any  Option  Shares  in  any  manner  which  would:  (i)
          require  the  Company  to  file any registration statement (or similar
          filing under state law) with the Securities and Exchange Commission or
          to  amend  or  supplement any such filing or (ii) violate or cause the
          Company to violate the l933 Act, the rules and regulations promulgated
          thereunder  or  any other state or federal law. You further understand
          that  the  Company  is  not  obligated  to  file any Form S-8 or other
          registration  statement,  and  that  the  certificates  for any Option
          Shares  you  purchase  will  bear  such  legends  as the Company deems
          necessary or desirable in connection with the l933 Act or other rules,
          regulations  or laws. You further understand that section 16(b) of the
          Securities Exchange Act of 1934 further restricts your ability to sell
          or  otherwise  dispose  of  Option  Shares.

3.   Incentive  Stock  Option  Qualification.  To  the  extent  your  Option  is
     designated  as  an Incentive Stock Option above, your Option is intended to
     qualify  as an Incentive Stock Option under federal income tax law, but the
     Company  does not represent or guarantee that the Option qualifies as such.

     To  the extent your Option has been designated as an Incentive Stock Option
     and  the  aggregate  fair market value (determined as of the Grant Date) of
     the  shares  of  Common  Stock  subject  to  the all of the Incentive Stock
     Options  you  hold  that  first become exercisable during any calendar year
     exceeds  $100,000,  any  excess  portion  will be treated as a nonqualified
     stock  option.  A  portion  of your Option may be treated as a nonqualified
     stock  option  if certain events cause the exercisability of your Option to
     accelerate.

4.   Notice  of  Disqualifying  Disposition.  To the extent your Option has been
     designated  as  an  Incentive  Stock Option, to obtain certain tax benefits
     afforded  Incentive  Stock  Options, you must hold the Option Shares issued
     upon  exercise  of  your  Option for two years after the Grant Date and one
     year  after  the  date  of  exercise. You may be subject to the alternative
     minimum  tax  at  the  time  of exercise. You should obtain tax advice when
     exercising  your  Option and prior to the disposition of the Option Shares.
     By  accepting  your Option, you agree to promptly notify the Company if you
     dispose  of  any  of  the  Option  Shares within one year from the date you
     exercise  all  or  part  of  your Option or within two years from the Grant
     Date.

5.   Taxes,  Withholding and Disposition of Stock. In the event that the Company
     determines  that  any  federal,  state, local or foreign tax or withholding
     payment is required relating to the exercise or sale of shares arising from
     this  grant, the Company shall have the right to require such payments from
     you.

6.   Conformity  With  Plan.  Your Option is intended to conform in all respects
     with,  and  is  subject to all applicable provisions of, the Plan, which is
     incorporated  herein  by reference. Inconsistencies between this letter and
     the  Plan  shall  be  resolved in accordance with the terms of the Plan. By
     executing  and  returning the enclosed copy of this letter, you acknowledge
     your  receipt  of the Plan and agree to be bound by all of the terms of the
     Plan.  All  definitions  stated  in  the  Plan  shall apply to this letter.

7.   Employment  And  Successors. Nothing herein confers any right or obligation
     on  you to continue in the employ of, or to continue any other relationship
     with,  the  Company or any subsidiary or shall affect in any way your right
     or  the  right  of  the  Company  or any subsidiary, as the case may be, to
     terminate  your  employment  or  other

<PAGE>
     relationship  at  any  time.  The  agreement contained in this letter shall
     be  binding  upon  and  inure  to  the  benefit  of  any  successor.

8.   Entire  Agreement.  This  Grant Letter constitutes the entire understanding
     between  you  and  the  Company relating to your Option, and supersedes all
     other  agreements, whether written or oral, with respect to the acquisition
     by  you  of  Common  Stock  upon  the  exercise  of  such  Option.

The grant, holding and exercise of your Option and the sale or other disposition
of the underlying Option Shares may generate tax and securities law consequences
and impose requirements that must be satisfied in order to avoid certain adverse
consequences  (e.g.,  income  tax  recognition upon exercise; Code section 83(b)
elections;  sales  restrictions  on underlying Option Shares).  Accordingly, you
should  consult  with  your  tax  and legal advisor(s) regarding your Option and
underlying  Option  Shares.

The undersigned hereby acknowledges having read this Grant Letter, the Plan, and
the  other  enclosures  to  this  letter,  and  hereby agrees to be bound by all
provisions  set  forth  herein  and  in  the  Plan.

------------------------------          ------------------------------
Optionee (Signature)                    Social Security Number

------------------------------          ------------------------------
Please Print Name                       Date

Please  sign  the  extra copy of this letter in the space above and return it to
the Secretary of the Company to confirm your understanding and acceptance of the
agreements  contained  in  this  letter.
Very truly yours,

Colonial Commercial Corp.

By:

Name:  William Pagano

Title: Chief Executive Officer

Enclosures:     1.  Extra copy of this letter.
                2.  Copy of the Plan - Exhibit A
                3.  Notice of Exercise of Stock Option - Exhibit B

Date:
                          --------------------------Resignation
      and Severance Agreement

    and
      General Release

    

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

    

    W
      I T N E S S E T H

    

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

    

    Whereas,
      the
      Employee desires to voluntarily resign from his position effective as of the
      day
      following the date on which the Company files its Quarterly Report on Form
      10-Q
      for the Quarter Ended September 30, 2006, with the Securities and Exchange
      Commission (the “End Date”) and accept the severance and benefits set forth
      herein in lieu of all severance and benefits otherwise provided in the
      Employment Agreement;

    

    Whereas,
      Company
      desires to accept such resignation and to provide Employee with the severance
      and benefits set forth herein; 

    

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

    

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

    

    1.  Separation
      from Employment, etc.

    

    (a)  Resignation.
      The
      parties acknowledge and agree that Employee’s resignation as an officer and
      employee of the Company and the Company’s direct and indirect subsidiaries and
      affiliates, and Employee’s separation from employment with the Company and all
      of the Company’s direct or indirect subsidiaries or affiliates shall be
      effective as of the End Date. The Company shall continue to pay the Employee
      all
      salary and benefits to which he is entitled under his Employment Agreement,
      subject to the Company’s customary payroll practices, until the End
      Date.

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

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

    

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

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (i) One
      business day following the filing of the Company's Quarterly Report on Form
      10-Q
      for the Quarter Ended September 30, 2006 (or such later date on which the
      Employee's right to revoke this Agreement under Section 13 hereof shall have
      expired), the Company shall pay to the Employee the sum of $150,000 (the "10-Q
      Payment");

    

    (ii) On
      January 2, 2007, (or such later date on which the Employee's right to revoke
      this Agreement under Section 13 hereof shall have expired), the Company shall
      pay to the Employee the sum of $350,000 (the "January Payment," and,
      collectively with the 10-Q Payment, the "Severance Payments").

    

    The
      Severance Payments are, in each case, payable subject to Sections 16 ("Right
      of
      Setoff and Liquidated Damages") and 17 ("IRC
      Section 409A") hereof,
      and subject to withholding for applicable taxes and other mutually agreed
      amounts.

    

    C. Annexed
      hereto as Exhibit ‘A’, is a complete list of all options and restricted stock
      grants presently outstanding to Employee. All restricted stock held by or
      awarded to the Employee which is not presently vested shall fully vest on the
      original vesting date of each grant as set forth on Exhibit A (the "Vesting
      Dates"). Employee agrees and acknowledges that he will not have the right to
      pay
      the withholding taxes of any vested shares of restricted stock on a net cash
      basis, but rather, Employee shall pay to the Company any tax in respect of
      shares of stock in cash, or at the Company's election, by retaining or receiving
      shares of the Employee having a fair market value on the Vesting Dates equal
      to
      the amount of taxes required to be withheld, consistent with past practice.
      All
      restrictions on transfer with respect to the restricted stock shall terminate
      as
      of the Vesting Dates, or such earlier date as may be provided in any applicable
      agreement.

    

    5.  COBRA
      Rights and Group Term Life Insurance.
      The
      Employee hereby declines to receive any benefits under COBRA or under any other
      employee benefit plan of the Company.

    

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

    

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

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    8.  [Intentionally
      Omitted]

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    G.  For
      a
      period commencing on the date hereof and ending on December 31, 2009, the
      Employee agrees to assist the Company in connection with any legal action,
      arbitration, administrative proceeding, investigation or other action (each,
      a
“Proceeding”) in which he may be requested to testify, consult or otherwise
      collaborate with the Company. The Company shall reimburse the Employee for
      his
      reasonable out-of-pocket expenses incurred in connection with providing such
      assistance, which expenses shall be pre-approved by the Company prior to being
      incurred by the Employee and which pre-approval shall not be unreasonably
      withheld, conditioned or delayed. In addition to the reimbursement of expenses
      as set forth above, the Company will reimburse Employee at the per diem rate
      of
      $1,000 per day in the event that Employee’s services are requested pursuant to
      this Section 9.H during the period commencing January 1, 2008 and ending
      December 31, 2009, which will not unduly burden the Employee. 

    

    10.  General
      Release.

    

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

    

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

    

    11.  Complete
      Agreement, No Representations, No Modification.
      All
      prior under-standings between the parties are merged herein; provided that,
      except as modified herein, any outstanding stock option and grant agreements
      shall continue in full force and effect; no representations or promises have
      been made by either the Company or the Employee to the other unless set forth
      herein; and any modification or termination of this Agreement must be in writing
      signed by the party to be charged.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

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

    

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

    

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

     

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

    

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

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

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

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

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

    

    [Signature
      Page Follows:]

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

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

     

    
      	Net Perceptions,
              Inc.,
              a
              Delaware corporation	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	
              
Name:	 	 	
              

              Nigel
                P. Ekern

            
	 	Title:	 	 	 

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Exhibit
      ‘A’

    

    
      Net
        Perceptions Values

    
      	 	 	
              Vesting
                on 

            	 	
              Vesting
                on

            	 	
              Vested
                on

            	 	
              Vested
                on

            	 
	 	 	
              31-Mar-07

            	 	
              21-Apr-07

            	 	
              21-Apr-05

            	 	
              21-Apr-06

            	 
	 	 	
              $50,000

            	 	
              $121,582

            	 	
              $74,003

            	 	
              $87,007

            	 
	 	 	
              Restricted

            	 	
              Restricted

            	 	
              Restricted

            	 	
              Restricted

            	 
	 	 	
              Shares

            	 	
              Shares

            	 	
              Shares

            	 	
              Shares

            	 
	
              Net
                Perceptions

            	 	 	
              66,667

            	 	 	
              121,582

            	 	 	
              74,003

            	 	 	
              87,007

            	 
	
              Price

            	 	
              $

            	
              0.75

            	 	
              $

            	
              0.48

            	 	
              $

            	
              0.48

            	 	
              $

            	
              0.48

            	 

    

     

    
      
         

      

        12

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