COLDWATER CREEK INC
SEPARATION & RELEASE AGREEMENT FOR DUANE HUESERS DATED DECEMBER 27,2005
<DOCUMENT>
<TYPE>EX-10.16
<SEQUENCE>3
<FILENAME>dex1016.htm
<DESCRIPTION>SEPARATION & RELEASE AGREEMENT FOR DUANE HUESERS DATED DECEMBER 27,2005
<TEXT>
<HTML><HEAD>
<TITLE>Separation &amp; Release Agreement for Duane Huesers dated December 27,2005</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.16 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B>Separation and Release Agreement for Duane Huesers dated December&nbsp;27, 2005 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B><U>December&nbsp;27, 2005
</U></B></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>SEPARATION AND RELEASE AGREEMENT </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">THIS SEPARATION AND RELEASE AGREEMENT (hereinafter referred to as &#147;Agreement&#148;) is made and entered into by DUANE A. HUESERS (hereinafter referred to as &#147;Huesers&#148;), and COLDWATER CREEK INC., its
successors, assigns, subsidiaries, related companies, directors, officers, owners, shareholders, managers, employees, agents, insurers, attorneys, accountants, affiliates, benefit plans, benefit administrators and providers, and control persons
(hereinafter collectively referred to as &#147;CWC&#148; except as otherwise specifically noted). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Huesers and CWC desire to
settle fully and finally any and all differences between them that have or might arise out of Huesers&#146; employment with CWC; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in
consideration of the mutual promises set forth herein, it is agreed as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. Huesers has submitted a written resignation of
employment to CWC that is to be effective at the close of business on January&nbsp;31, 2006. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>2. CWC shall provide the following payment
and benefits at the time of Huesers&#146; separation of employment with CWC on January&nbsp;31, 2006: </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>(a) <U>Severance Payment</U>: CWC agrees to
pay Huesers a severance payment in the amount of four (4)&nbsp;months of his last base salary at CWC, less applicable federal and state withholding taxes; </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><I>(b) <U>Accrued Vacation</U>: CWC shall pay Huesers all accrued, unused vacation pay through the time of his separation of employment on January&nbsp;31, 2006; </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><I>(c) <U>COBRA Benefits</U>: CWC shall pay four (4)&nbsp;months of Huesers&#146; COBRA health insurance premiums following his employment separation date conditioned upon Huesers timely exercising his rights and
necessary paperwork to obtain COBRA benefits; and </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>(d) <U>401(k) Benefits</U>: Huesers shall not be entitled to make or receive any 401(k)
contributions after January&nbsp;31, 2006. </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><I>3. No benefits or compensation other than described above shall be owing by CWC to
Huesers.</I> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. Huesers agrees and acknowledges that the payments and other consideration made pursuant to this Agreement constitute valid
consideration for his release of any and all claims, and that the payments made to him exceed any payments or benefits to which Huesers may be entitled to receive from CWC. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <U>Full Release.</U> In consideration of the payments and benefits set forth above, Huesers, on behalf of himself and his marital community, heirs,
estates, executors, administrators, successors, and assigns <B><U>DOES FULLY RELEASE AND DISCHARGE</U></B> CWC from any and all claims, causes of action, judgments, obligations, damages, or liabilities of whatsoever kind and character, including,
but not limited to, all claims arising out of or relating to Huesers&#146; employment with CWC, or to any acts or events involving Huesers and CWC, <B><U>WHETHER CURRENTLY KNOWN OR SUSPECTED, OR UNKNOWN OR UNSUSPECTED</U></B>. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Huesers represents and warrants that he has not assigned any such claims or authorized any other person or entity to
assert any such claims on Huesers&#146; behalf. Further, Huesers agrees that under this Agreement he waives any and all claims for damages incurred at any time after the date of this Agreement because of alleged continuing effects of any alleged
acts or omissions involving CWC which may have occurred on or before the date of this Agreement, and any right to sue CWC for monetary or injunctive relief against the alleged continuing effects of any alleged past acts or omissions occurring prior
to the date of this Agreement. No portion of this Agreement shall be construed to waive any rights or obligations of the parties under the Industrial Insurance laws for the State of Idaho. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">HUESERS UNDERSTANDS AND EXPRESSLY AGREES THAT <B><U>THIS AGREEMENT EXTENDS TO ANY AND ALL FEDERAL AND STATE LAW CLAIMS OF EVERY NATURE AND KIND
WHATSOEVER, KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, PRESENT OR PAST, IF ANY</U>, </B>WHICH EXIST THROUGH THE SEPARATION OF HIS EMPLOYMENT ON JANUARY 31, 2006, INCLUDING, BUT NOT LIMITED TO, ALL CLAIMS INVOLVING SEX, SEXUAL HARASSMENT,
RETALIATION, WHISTLEBLOWER, PUBLIC POLICY WRONGFUL DISCHARGE, AGE, DISABILITY OR HANDICAP DISCRIMINATION, EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA), COBRA, WARN ACT, OR ANY CLAIMS IN TORT OR CONTRACT OR IMPLIED CONTRACT RELATED TO
HUESERS&#146; EMPLOYMENT OR TO ANY ALLEGED ACTS OR OMISSIONS OF CWC INVOLVING HUESERS. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Specifically, but without in any way limiting the
generality of the foregoing, Huesers agrees to refrain from and shall not institute, prosecute, file, process or assist or cooperate in any Human Rights Commission charges, EEOC charges, claims under the <B><U>AGE DISCRIMINATION IN EMPLOYMENT ACT OF
1967 AS AMENDED, THE CIVIL RIGHTS ACT OF 1991, THE AMERICANS WITH DISABILITIES ACT, AND THE OLDER WORKERS BENEFIT PROTECTION ACT</U></B>, wrongful termination or discrimination laws or any other claims or actions arising out of Huesers&#146;
employment with CWC. Any such claims, known or unknown, are hereby knowingly waived and released. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>6. HUESERS EXPRESSLY REPRESENTS THAT
HE HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT. HUESERS REPRESENTS THAT HIS SIGNATURE BELOW CONSTITUTES AN EXPRESS REPRESENTATION THAT HUESERS UNDERSTANDS THE TERMS OF THIS AGREEMENT AND HAS VOLUNTARILY SIGNED
THIS AGREEMENT. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. Huesers will not testify or give evidence in a lawsuit or any other forum concerning his affiliation or employment
with CWC unless required by law or requested in writing by an authorized official of CWC. Notwithstanding the foregoing, if Huesers is requested in writing to do so by an authorized official of CWC or under subpoena issued lawfully, he will fully
and completely cooperate with CWC in any investigation it may conduct in connection with any events which occurred while he was an employee and/or officer of CWC. Huesers shall be entitled to legal representation and indemnification provided by CWC
for claims made relating to his period of employment with CWC to the extent required and authorized for officers of CWC by the bylaws and/or articles of incorporation of CWC. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8. Huesers understands and agrees that effective at the end of business on January&nbsp;31, 2006, Huesers is no longer authorized to incur any expense,
obligation, or liability, or make any commitment on behalf of CWC, and Huesers warrants that he will not incur any such expense, obligation, liability or commitment on behalf of CWC subsequent to such date. Any reimbursable expenses incurred by
Huesers prior to the end of business on January&nbsp;31, 2006 will only be reimbursed if such expenses are properly submitted to CWC no later than February&nbsp;10, 2006. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. Huesers has returned or will immediately return to CWC all CWC property, including, but not limited
to, the following items acquired during or related to Huesers&#146; employment with CWC: cellular telephones; computers; reports; strategic plans; financial information; employee information; stock and shareholder information; files; memoranda;
records; software; credit cards; card key passes; door and file keys; computer access codes; computer disks and/or instruction manuals; and all other physical and personal property which Huesers received or prepared or helped to prepare in
conjunction with his employment with CWC, and Huesers warrants that he has not retained and will not retain any copies, duplicates, reproductions, or excerpts thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">10. Huesers and CWC shall not make any statements or criticism, written or oral, or take any action which is adverse to the interests of or that would cause the other injury, embarrassment or humiliation, or to cause
the other to be held in disrepute by the public or by CWC&#146;s clients, shareholders, customers, competitors, or business partners or employees. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">11. This Agreement shall not in any way be construed as an admission by CWC that it has acted in any manner wrongfully with respect to Huesers or to any other person, or that Huesers has any rights, other than those specifically provided
for in this Agreement, against CWC. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">12. Huesers represents and acknowledges that in executing this Agreement he does not rely upon and has
not relied upon any representations made by CWC&#146;s agents, representatives, or attorneys with regard to the subject matter, basis or effect of this Agreement or otherwise. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any and all prior arrangements, understandings, or
agreements between the parties hereto; provided, however, the parties agree that the <B>COLDWATER CREEK INC. CONFIDENTIALITY AND INTELLECTUAL PROPERTY AGREEMENT, AND AGREEMENT FOR NON-SOLICITATION OR RECRUITMENT AND CODE OF BUSINESS CONDUCT </B>that
was previously executed by Huesers, is incorporated herein by reference, and shall remain in full force and effect for the periods set forth therein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">14. The provisions of this Agreement are severable. If any part of the Agreement is found to be unenforceable, the other parts shall remain fully valid and enforceable. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. This Agreement is governed by the laws of the State of Idaho. Venue of any dispute over the terms of this Agreement shall be in Bonner County. The
prevailing party to any lawsuit concerning the violation or breach of this Agreement shall be entitled to recover reasonable attorney&#146;s fees and costs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">16. Huesers shall have seven (7)&nbsp;days from his execution and return of this Agreement to CWC to revoke it by written notice delivered to Greg Dieffenbach of CWC. No payments or benefits under this Agreement shall
be provided to Huesers until this revocation period has expired without revocation. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, this Agreement has been executed on the 16th day of January, 2006. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="7%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Duane A. Huesers</FONT></P></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">DUANE A. HUESERS</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">COLDWATER CREEK INC.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Greg Dieffenbach</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">VP Human Resources</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>OLDER WORKERS BENEFIT PROTECTION ACT NOTICE </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I hereby acknowledge that: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. COLDWATER
CREEK INC. (&#147;Company&#148;), has provided me a copy of the Release and Severance Agreement dated December&nbsp;27, 2005, in the upper right hand corner of the first page (&#147;Agreement&#148;) for review. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. I have been advised by Company that I have the right to consult with an attorney prior to entering into the Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. My right to receive severance pay and benefits pursuant to the Agreement is conditional on my prior execution and return of the Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. I have twenty-one (21)&nbsp;days from the date hereof to consider whether to accept the Agreement. While it is my right to accept, enter into, and
execute the Agreement before the end of the 21-day period, I am under no obligation to do so. However, by returning the signed Agreement prior to the expiration of the 21-day period, I will have voluntarily terminated that required period for
considering the Agreement. I acknowledge that the Agreement shall be considered withdrawn if not signed within the 21-day consideration period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">5. By signing the Agreement, I am expressly waiving any and all claims I may have against the parties set forth in the Agreement, including claims under the Age Discrimination in Employment Act (&#147;ADEA&#148;). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. I have the right to revoke the Agreement for a period of seven (7)&nbsp;days following my execution of the same. If I do not revoke the Agreement as
provided in this paragraph, it will become binding and enforceable seven (7)&nbsp;days following the date it is signed by me. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">PLEASE READ
CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>ACKNOWLEDGMENT OF RECEIPT </U></B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I hereby acknowledge receipt of a copy of the Release and Severance Agreement on the date indicated below. I further acknowledge that I have read the
foregoing notice and understand its terms. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0">

<TR>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="33%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2"><B>/s/ Duane A. Huesers</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><B>Date: January 16, 2006</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">DUANE A. HUESERS</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>

</BODY></HTML>
</TEXT>
</DOCUMENT>
