Rosetta Stone 2011 Annual Report Download - page 182

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Exhibit 10.22
AMENDMENT
TO
EXECUTIVE EMPLOYMENT AGREEMENT
AMENDMENT ("Amendment") made effective on December 22, 2011 to the Executive Employment Agreement, dated as
of November 9, 2010 (the "Employment Agreement"), among Rosetta Stone Ltd., a Delaware corporation (together with its successors
and assigns, the "Company"), and Stephen Swad (the "Executive").
WHEREAS, the Company and the Executive have previously entered into the Employment Agreement; and
WHEREAS, the Company and the Executive desire to amend the Employment Agreement to modify the excise tax gross-up
provision in the Employment Agreement.
NOW, THEREFORE, in consideration for continued employment by the Company and for other good and valuable
consideration as described below, the Executive and the Company agree that the Employment Agreement shall be amended as
follows, effective on the date set forth above.
Recitals
A. If the Executive signs this Amendment, then the Company shall pay the Executive the sum of $1.00, which will be
subject to all applicable taxes and withholdings. This amount shall be paid in a single payment on the Company's normal and
customary payroll date which is coincident with, or immediately follows, the execution of this Amendment.
B. The Executive acknowledges that he must sign this Amendment as a condition of continued employment with the
Company.
C. The Executive further agrees and acknowledges that the consideration stated in this Amendment is adequate and
sufficient consideration for this Amendment.
1.
Section [13] of the Employment Agreement is amended by deleting it in its entirety and substituting the following therefor:
"[13.] Certain Additional Payments by the Company; Code Section 280G.
(a) Anything in this Agreement to the contrary notwithstanding, if any payment or benefit Executive would
receive pursuant to this Agreement ("Payment") would (i) constitute a "parachute payment" within the meaning of
Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the "Excise Tax"), then such Payment shall be reduced to the Reduced Amount. The "Reduced Amount" shall be either
(x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or
(y) the largest portion, up to and