Document:

Unassociated Document

    Amendment
to Employment Agreement

     

    This
Amendment to Employment Agreement (this “Amendment”) dated as of May
18, 2010 (“Effective Date”), by and between PharmAthene, Inc., a Delaware
corporation (“Company”)
and Eric Richman (“Executive”).  Executive
and Company are sometimes each referred to in this Amendment as a “Party” and collectively as the
“Parties.”

     

    Background

     

    WHEREAS,
the Parties are parties to that certain Employment Agreement dated as of April
18, 2008, pursuant to which Executive was appointed as Senior Vice President,
Business Development & Strategic Planning of the Company (the “Employment
Agreement”);

     

    WHEREAS,
on March 25, 2010, Executive was appointed President and Chief Operating Officer
of the Company, on May 2, 2010 Executive was appointed as interim Chief
Executive Officer of the Company and on May 17, 2010, he was appointed to serve
as a member of the Board of Directors of the Company (the “Board”), and the
Company and Executive wish to amend the Employment Agreement in the manner set
forth in this Amendment; and

     

    NOW, THEREFORE, in
consideration of the mutual promises, covenants and conditions set forth herein,
the Parties, intending to be legally bound, hereby agree as
follows:

     

    1.           It
is understood and agreed that, in accordance with clause (b) of Section 2 of the
Employment Agreement, Executive has been appointed to the position of President
& interim Chief Executive Officer.  Accordingly, it is expressly
understood that in this capacity Executive will report to the Board, until
otherwise specified by the Board.  Section 2 of the Employment
Agreement is hereby amended accordingly.

     

    2.           The
Parties agree that on the Effective Date Executive was granted a stock option to
purchase 100,000 shares of the Company’s common stock (the “Stock Option”) pursuant to the
Company’s 2007 Long-Term Incentive Plan, as amended (“2007 Plan”), and subject
to the terms and conditions of the 2007 Plan and of a stock option agreement
dated as of the Effective Date by the Company and the Executive.  The
Stock Option shall have a term of 10 years and, subject to possible acceleration
of vesting as otherwise provided for herein, the Stock Option shall vest in full
on May 2, 2011.  The per share exercise price of the Stock Option
shall be the fair market value of a share of the common stock of the Company on
the date of grant as determined by the Company in accordance with the terms of
the 2007 Plan.  In the event during the Employment Period (i) the
Executive is not appointed as the Chief Executive Officer of the Company, (ii) a
Change in Control (as defined below) occurs, or (iii) the Executive’s employment
is terminated due to a Termination Without Cause, for Good Reason, or due to
death or Disability, the Stock Option held by the Executive and not then vested
shall become immediately and fully vested.  In the event the Executive
is not appointed as the Chief Executive Officer of the Company and someone other
than the Executive is appointed as Chief Executive Officer of the Company (the
“Successor CEO”), all
equity-based awards issued by the Company (including the Stock Option) held by
the Executive and not then vested that would otherwise vest during the 12-month
period following the appointment of the Successor CEO shall become immediately
and fully vested.  In the event of a Change in Control during the
Employment Period and a Termination Without Cause or a termination of the
Executive’s employment for Good Reason occurs on or within 3 months of the consummation of
the Change in Control, all equity-based awards issued by the Company held by the
Executive and not then vested shall become immediately and fully
vested.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           As
used herein and in the Employment Agreement, “Change in Control” means: (i) an
acquisition subsequent to the date hereof by any person, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the “Exchange
Act”)), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 30% or more of either (A) the then
outstanding shares of common stock of the Company (“Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors; excluding, however, the
following: (1) any acquisition directly from the Company, other than an
acquisition by virtue of the exercise of a conversion privilege unless the
security being so converted was itself acquired directly from the Company, (2)
any acquisition by the Company and (3) any acquisition by an employee benefit
plan (or related trust) sponsored or maintained by the Company; (ii) the
approval by the stockholders of the Company of a merger, consolidation,
reorganization or similar corporate transaction, whether or not the Company is
the surviving corporation in such transaction, in which outstanding shares of
Common Stock are converted into (A) shares of stock of another company, other
than a conversion into shares of voting common stock of the successor
corporation (or a holding company thereof) representing 80% of the voting power
of all capital stock thereof outstanding immediately after the merger or
consolidation or (B) other securities (of either the Company or another company)
or cash or other property; (iii) the approval by stockholders of the Company of
the issuance of shares of Common Stock in connection with a merger,
consolidation, reorganization or similar corporate transaction in an amount in
excess of 40% of the number of shares of Common Stock outstanding immediately
prior to the consummation of such transaction; (iv) the approval by the
stockholders of the Company of (A) the sale or other disposition of all or
substantially all of the assets of the Company or (B) a complete liquidation or
dissolution of the Company; or (v) the adoption by the Board of Directors of the
Company of a resolution to the effect that any person has acquired effective
control of the business and affairs of the Company.

     

    4.           The
Parties agree that, effective immediately upon the hiring of the Successor CEO
and/or upon the Executive’s termination of employment with the Company for any
reason, Executive shall resign as a director of the Company’s Board of
Directors.

     

    5.           The
Parties agree that Section 3 of the Employment Agreement is hereby amended as
follows:

     

    (i)     the
phrase “$275,126.00” contained in Clause (a) of Section 3 shall be amended to
read “$350,000.00” effective as of May 2, 2010;

     

    (ii)    Clause
(b) of Section 3 is amended and superseded in its entirety as follows, without
any further action of any Party:

     

    
      
        
        

      

      
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    “b.           Bonus.  The
Executive shall be eligible to receive an annual cash bonus of up to an
additional 60% of the Executive’s base salary based upon, in the case of the
fiscal year ending December 31, 2010, the achievement of certain pre-determined
corporate objectives (the achievement of such objectives being determined by the
Compensation Committee), and, for future years, at such percentages and with
such corporate objectives determined by the Compensation Committee in
consultation with the Executive.  In addition, the Executive shall be
eligible for an additional cash bonus of 60% of the Executive’s base salary if,
and at such time as, the Executive is not named as the Chief Executive Officer
of the Company during the Employment Period, irrespective of whether the
Executive continues his employment with the Company or if the Executive’s
employment with the Company is terminated.”

     

    ;
and

     

    (iii)   the
phrase “the costs associated with the use of an automobile in an amount not to
exceed $1,000 per month” contained in Clause (f) of Section 3 shall be amended
to read “the costs associated with the use of an automobile in an amount not to
exceed $1,000 per month through December 31, 2010.”

     

    6.           The
Parties agree that Section 8 of the Employment Agreement is amended and
superseded in its entirety as follows:

     

    “8.         Termination by Executive for
Good Reason.  Any termination of the employment of the
Executive by the Executive for Good Reason which shall be deemed to be
equivalent to a Termination Without Cause. For purposes of this Agreement “Good
Reason” means (i) any material breach by the Company of any of its obligations
under this Agreement; (ii) any material reduction in the Executive’s duties,
authority or responsibilities without the Executive’s consent; (iii) any
assignment to the Executive of duties or responsibilities materially
inconsistent with the Executive’s position and duties contained in this
Agreement without the Executive’s consent; (iv) a relocation of the Company’s
principal executive offices or the Company determination to require the
Executive to be based anywhere other than within 25 miles of the location at
which the Executive on the date hereof performs the Executive’s duties; (v) the
taking of any action by the Company which would deprive the Executive of any
material benefit plan (including, without limitation, any medical, dental,
disability or life insurance); (vi) the failure of the Company to appoint the
Executive as its Chief Executive Officer prior to the time this Agreement
provides for notice of non-extension in respect of the Employment Period
commencing April 18, 2011; (vii) the appointment of a Successor CEO; or (viii)
the failure by the Company to obtain the specific assumption of this Agreement
by any successor or assignee of the Company or any person acquiring
substantially all of the Company’s assets; provided, however, that the Executive
may not terminate the Employment Period for Good Reason unless the Executive
first provides the Company with written notice specifying the Good Reason and
providing the Company with 20 days in which to remedy the stated
reason.  Notwithstanding the foregoing, an event described in clause
(vii) above will not constitute Good Reason unless the Executive terminates his
employment within 60 days after the appointment of a Successor
CEO.”

     

    
      
        
        

      

      
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    7.           The
Parties agree that Clause (b) of Section 9 of the Employment Agreement is
amended and superseded in its entirety as follows:

     

    “b.         Termination Without Cause;
Termination for Good Reason. Upon the termination of the Executive’s
employment as a result of a Termination Without Cause or for Good Reason, the
Executive shall not have any further rights or claims against the Company under
this Agreement except the right to receive (i) the payments and other rights
provided for in Section 9(a) hereof, (ii) severance payments in the form of a
continuation of the Executive’s base salary as in effect immediately prior to
such termination for a period of 12 (twelve) months following the effective date
of such termination, (iii) the accelerated vesting of equity-based awards
specifically as set forth in Section 2 of the Amendment to the Employment
Agreement dated as of May 18, 2010 by and between the Executive and the Company,
and (iv) to the extent that the Executive has elected and is continuing to
receive COBRA continuation coverage under the Company’s group health plan in
accordance with Section 4980B of the Internal Revenue of 1986, as amended (the
“Code”), the Company shall reduce the COBRA premiums that the Executive is
required to pay during the first 12 (twelve) months following his termination of
employment to that the Company charges to its active employees for the same
level of group health coverage.

     

    Notwithstanding the foregoing, the
severance benefits described in clause (ii) and (iii) above and the COBRA
premium subsidy described in clause (iv) above shall be provided in
consideration for, and expressly conditioned upon, the Executive’s execution of
a binding General Release (which shall be provided on or about the date of
termination) containing terms reasonably satisfactory to the Company within 45
days of the Executive’s termination of employment.  Subject to Section
24, if the Executive timely executes such General Release and the applicable
revocation period with respect to such General Release lapses, the Executive
will receive the first two months of severance payments 60 days after his
termination of employment and the remaining payments in accordance with the
Company’s payroll practices.  If the Executive does not timely execute
the General Release or if the Executive revokes the General Release within the
applicable revocation period prescribed by law, the Executive shall not be
entitled to receive any severance payments and the Executive will be required to
pay 102% of the applicable premium (as defined in Code Section 4980B) for any
COBRA continuation coverage elected by the Executive.”

     

    8.           The
Parties agree that Section 9 of the Employment Agreement is amended to add the
following new Clause (e) to the end thereof:

     

    
      
        
        

      

      
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    “e.         Rabbi
Trust.  If the Executive becomes entitled to receive severance
payments under Clause (b) above, the Executive’s General Release described in
Clause (b) above becomes binding and enforceable, the Company shall establish an
irrevocable grantor trust (a “rabbi trust”), appoint a federally or state
chartered bank or trust company as the trustee for such rabbi trust and shall
contribute 12 months of salary continuation payments to such rabbi
trust.  The assets of such rabbi trust shall be used solely to make
the severance payments to the Executive as required under this Agreement (or to
reimburse the Company for severance payments it makes to the Executive); or to
satisfy the claims of the Company’s unsecured general creditors in the event of
the Company’s insolvency or bankruptcy.  The rabbi trust may be
terminated and any remaining assets therein shall revert to the Company after
the Executive has received all of the severance payments to which he is entitled
hereunder.  Notwithstanding the foregoing, the provisions of this
Section 9(e) shall not apply if the funding of the rabbi trust would subject the
Executive to acceleration of taxation and tax penalties under Section 409A(b) of
the Code.”

     

    9.           The
Parties agree that the Employment Agreement is amended so that the following
sentence is added at the end of Section 12 of the Employment
Agreement:

     

    “The
Company shall not, and shall use commercially reasonable efforts to cause its
directors and executive officers not to, disparage the Executive to any person
or entity.  Notwithstanding the foregoing, the Company may confer with
its advisors and make truthful statements required by law.  In
addition, it is understood and agreed that factual statements made by either
Party in the ordinary course of business, as well as factual statements made in
legal actions, legal proceedings, or government investigative proceedings that
are protected by a qualified privilege or immunity are not intended to be
construed as disparagement.”

     

    10.         For
clarity, and for purposes of the Employment Agreement, the appointment of a
Successor CEO shall constitute a material reduction in the Executive’s duties,
authorities or responsibilities (i.e., a “Good Reason” resignation); provided,
however, that the Executive shall only have 60 days following the appointment of
the Successor CEO to tender a resignation for such Good Reason.  After
such time, the executive’s duties, authorities and responsibilities shall be
deemed to be those established by the Board and the CEO at such
time.

     

    11.         The
Parties agree that Section 24 of the Employment Agreement is amended and
superseded in its entirety as follows:

     

     

    “24.       409A
Compliance.  If Executive is a “specified employee” (as
determined in accordance with Treasury Regulation Section 1.409A-1(i) or any
written Company policy implementing such regulation) at the time of his
termination of employment, then his severance payments that are otherwise
payable during the first six month period following the Executive’s termination
of employment (to the extent that such severance payments constitute
nonqualified deferred compensation within the meaning of Section 409A of the
Code and the regulations promulgated thereunder) shall be deferred until the
date that is six months after the Executive’s termination of employment (or, if
earlier, upon his death).  Each salary continuation payment that is
due under this Agreement shall be treated as a separate payment for purposes of
Section 409A Code.  This Agreement shall be interpreted to comply, or
otherwise be exempt from, with the requirements of Code Section
409A.  Accordingly, references to termination of employment hereunder
shall be interpreted to mean “separation from service” as defined in regulations
under Section 409A of the Code.  All expenses under this Agreement
that are reimbursable in accordance with Company policy shall be made as soon as
practicable after Executive’s submission of such expenses in accordance with the
Company’s policy, but in no event later than the last day of the taxable year
following the taxable year in which the expense was incurred.”

     

    
      
        
        

      

      
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    12.         Initially
capitalized terms used in this Amendment shall have the meaning given to such
terms in the Employment Agreement (unless otherwise defined herein). Other than
as specifically amended pursuant to this Amendment, all other provisions of the
Employment Agreement shall remain in full force and effect.  Upon
execution and delivery of this Agreement by the Parties, the Company will
reimburse Executive for his reasonable legal fees and expenses incurred in
connection with the negotiation and execution of this Amendment in an amount up
to $10,000.  All reasonable legal fees paid or incurred by Executive
in any litigation or dispute to enforce Executive’s rights under the Employment
Agreement, as amended hereby, shall be paid or reimbursed by the Company if
Executive is the prevailing party in such litigation or
dispute.

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly
executed as of the date first written above.

     

    
      
        
          
            	 
      	
                    PHARMATHENE,
      INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	      
                    /s/ Joel McCleary

                  
	 
      	
                    Name: 

                  	
                    Joel McCleary

                  
	 
      	
                    Title:

                  	
                    Chairman, Compensation
      Committee

                  
	 
      	 
      	 
      
	 
      	
                    EXECUTIVE

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	      
                    /s/
      Eric Richman

                  
	 
      	
                    Name:

                  	
                    Eric
      Richman

                  

          

        

      

    

     

    
      
         

      

      
        7Unassociated Document

     

    Exhibit
4.2

     

    WAIVER
AND FORBEARANCE AGREEMENT

     

    THIS
WAIVER AND FORBEARANCE AGREEMENT is made on May 24, 2010 (this “Agreement”),
by and between Bison Capital Equity Partners II-A, L.P., a Delaware limited
partnership, and Bison Capital Equity Partners II-B, L.P., a Delaware limited
partnership (collectively, “Purchaser”),
on the one hand, and The Center for Wound Healing, Inc., a Nevada corporation
(the “Company”),
on the other hand.  Any capitalized term used but not otherwise
defined herein shall have the same meaning as set forth in the Securities
Purchase Agreement dated as of March 31, 2008 by and between Purchaser and the
Company, as amended by the First Amendment to Securities Purchase Agreement
dated as of April 16, 2009 and the Second Amendment to Securities Purchase
Agreement dated February 12, 2010 (as otherwise amended, the “Securities
Purchase Agreement”).

     

    WHEREAS,
the Company is in Default under the Securities Purchase Agreement for violation
of the covenant set forth in Section 9.3(a) of the
Securities Purchase Agreement by reason of the consummation of the mergers among
certain of the Credit Parties as more fully described on Exhibit A (the “Merger
Default”); and

     

    WHEREAS,
the Company is in Default under the Securities Purchase Agreement for violation
of the covenant set forth in Section 9.4 of the
Securities Purchase Agreement by reason of the change by certain of the Credit
Parties by reason of the changes by certain of the Credit Parties of their names
as more fully described on Exhibit A (the “Name Change
Default”);

     

    WHEREAS,
the Company is in Default under the Securities Purchase Agreement for violation
of the financial covenant set forth in Section 9.18(a) of
the Securities Purchase Agreement (the “EBITDA
Covenant”) for the twelve-month period ending on March 31, 2010, as more
fully described on Exhibit B (the “EBITDA Covenant
Default”);

     

    WHEREAS,
the Company is in Default under the Securities Purchase Agreement for violation
of the financial covenant set forth in Section 9.18(b) of
the Securities Purchase Agreement (the “Consolidated
Leverage Ratio Covenant”)
for the twelve-month period ending on March 31, 2010, as more fully described on
Exhibit C (the
“Consolidated
Leverage Ratio Covenant
Default”);

     

    WHEREAS,
the parties desire to waive certain provisions of the Securities Purchase
Agreement subject to the terms and conditions set forth herein; and

     

    WHEREAS,
the parties desire that Purchaser forbear from enforcing certain rights of
Purchaser under the Transaction Documents subject to the terms and conditions
set forth herein.

     

    NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows:

     

    1.           Subject
to the effectiveness of this Agreement, Purchaser hereby waives the Merger
Default and the Name Change Default. The Company hereby acknowledges and agrees
that the waiver given by Purchaser pursuant to the foregoing sentence (a) does
not constitute a waiver of any other Default or Event of Default under the
Transaction Documents, and (b) is not, and is not intended as, a waiver by
Purchaser of or in respect of any breach, Default or Event of Default under the
Transaction Documents occurring from and after the date hereof except as
expressly provided herein. In connection with the foregoing, the Company agrees
to cause the Credit Parties agree to execute and deliver such documents as
Purchaser may reasonably request in connection with the mergers that are the
subject of the Merger Default and the changes of name that are the subject of
the Name Change Default.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

       

    

    2.           Subject
to the effectiveness of this Agreement, Purchaser hereby waives the EBITDA
Covenant Default and Consolidated Leverage Ratio Covenant Default effective as
of March 31, 2010 and waives any failure of the Company to comply with the
EBITDA Covenant and Consolidated Leverage Ratio Covenant for the measuring
period ended June 30, 2010.  The Company hereby acknowledges and
agrees that the waiver given by Purchaser pursuant to the foregoing sentence (a)
does not constitute a waiver of any other Default or Event of Default under the
Transaction Documents, and (b) is not, and is not intended as, a waiver by
Purchaser of or in respect of any breach, Default or Event of Default under the
Transaction Documents occurring from and after the date hereof except as
expressly provided herein.

     

    3.           Effective
as of March 31, 2010, Purchaser agrees to forbear from accelerating the
Obligations as a result of a breach of the EBITDA Covenant and Consolidated
Leverage Ratio Covenant until the earliest of (a) April 1, 2011, (b) the
issuance of a notice of default, event of default or breach by the Senior
Lender, (c) the occurrence of a Default or Event of Default other than with
respect to a breach of the EBITDA Covenant or Consolidated Leverage Ratio
Covenant, (d) the issuance of a “going concern” opinion by the Company’s
auditors, (e) the Consolidated Adjusted EBITDA for the trailing twelve months
ending on any fiscal quarter being less than $3,500,000, and (f) the date that
written notice from the Company is delivered to Purchaser stating that the
Company no longer requires Purchaser to forbear from accelerating the
Obligations as set forth in this Section 3) (such
period of time from March 31, 2010 through the earliest of the foregoing to
occur, the “Forbearance
Period”).

     

    4.           In
partial consideration of Purchaser’s agreement to enter into this Agreement, the
Company shall pay to Purchaser the following amounts:

     

    (a)           on
each fiscal quarter end during the Forbearance Period (including the fiscal
quarter ended March 31, 2010), at the Company’s election:  (i)
Purchaser shall receive $150,000 in cash or (ii) $150,000 shall be added to the
outstanding principal amount under the Note; provided, however, that if the
Forbearance Period terminates as a result of Section 3(e), then
solely for purposes of this Section 4(a) the
Forbearance Period shall be deemed to end on and include the fiscal quarter end
that follows the date of delivery of written notice from the
Company;

     

    (b)           prior
to the effectiveness of this Agreement, all attorneys’ fees and other
Purchaser’s Expenses incurred by or on behalf of Purchaser pursuant to, in
respect of or otherwise in connection with this Agreement or the Existing
Default; and

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    (c)           Notwithstanding
anything in any Transaction Document to the contrary (including, without
limitation, the Second Amendment to Securities Purchase Agreement dated February
12, 2010 by and between Purchaser and the Company (the “Second
Amendment”)) and irrespective of whether any default under the Note,
Default or Event of Default exists, the Note shall bear interest for each day
during the Forbearance Period at a rate equal to 16.5% per annum (and the
Scheduled Cash Interest Rate shall be twelve percent (12%) per annum, and the
Scheduled PIK Interest Rate shall be four and a half percent (4.5%) per
annum).  Following the end of the Forbearance Period, the Note shall bear
interest at the Scheduled Interest Rate in accordance with the Second
Amendment.

     

    The
payment of all such fees and other amounts described in Sections 4(a)(i),
(b) and (c) shall be made by
wire transfer of immediately available funds to an account designated by
Purchaser.  Such fees and other amounts shall be fully earned upon
becoming due and payable in accordance with the terms hereof, shall be
nonrefundable for any reason whatsoever and shall be in addition to any other
fees, costs and expenses payable pursuant to the Transaction
Documents.  For the avoidance of doubt, the obligations set forth in
this Agreement are also part of “Obligations” as defined in the Securities
Purchase Agreement.

     

    5.           Each
of the Company, its subsidiaries, affiliates, officers, directors and
representatives (together, the “Releasing
Parties”) fully releases and discharges forever Purchaser and its current
and former agents, employees, officers, directors, owners, partners,
shareholders, trustees, representatives, attorneys, subsidiaries, divisions,
related corporations, assigns, successors, and affiliated organizations
(hereafter referred to collectively as the “Released
Parties”), and each and all of them, from any and all liabilities,
claims, causes of action, charges, complaints, obligations, costs, losses,
damages, injuries, attorneys’ fees, and other legal responsibilities, of any
form whatsoever, whether known or unknown, unforeseen, unanticipated,
unsuspected or latent, which the Releasing Parties have incurred or expect to
incur, or now own or hold, or have at any time heretofore owned or held, or may
at any time own, hold, or claim to hold by reason of any matter or thing arising
from any cause whatsoever prior to the date of this Agreement.  This
Agreement does not purport to release claims that cannot be released as a matter
of law.

     

    Each
Releasing Party acknowledges and intends that the Released Parties are being
released from unknown and unforeseen claims to the fullest extent permitted by
law and each Releasing Party waives any defenses based thereon.  Each
Releasing Party expressly waives and relinquishes all rights and benefits that
the Releasing Party may have under any statute or other applicable law
comparable to Section 1542 of the California Civil Code, which Section 1542 is
intended to protect against an inadvertent release of unknown or unsuspected
claims, and reads as follows:

    

    “Section
1542. [General Release; extent.] A general release does not extend to claims
which the creditor does not know or suspect to exist in his or her favor at the
time of executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor.”

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

    Each
Releasing Party, being aware of said Section 1542, hereby expressly waives any
rights the Releasing Party may have under any statutes, other applicable law or
common law principles of similar effect, with respect to the claims purported to
be released hereby.

     

    Each
Releasing Party covenants and agrees never to commence, prosecute or assist in
any way, or cause, permit or advise to be commenced or prosecuted, any action,
proceeding, or discovery against any Released Party based on any released
claim.

     

    Each
Releasing Party agrees to indemnify and hold Purchaser and the other persons and
entities released by this Agreement harmless from and against any and all claims
arising from or in connection with any action or proceeding brought by it or for
its benefit or on its initiative contrary to the provisions of this
Agreement.  This Agreement shall be deemed breached and a cause of
action shall accrue immediately upon the commencement of any action or
proceeding contrary to this Agreement, and in any such action or proceeding this
Agreement may be pleaded as a defense by any person or entity released by this
Agreement, or may be asserted by way of cross-complaint, counterclaim or
cross-claim in any such action or proceeding.

     

    6.           This
Agreement shall not be effective until the date upon which Purchaser receives
each of the following (in each case in form and substance satisfactory
to  Purchaser):

     

    (a)           counterparts
of this Agreement, duly executed by the Company;

     

    (b)           the
Consent of Guarantors, in the form attached hereto as Exhibit D, duly
executed by each of Guarantor listed on the signature pages
thereto;

     

    (c)           a
consent with respect to the execution, delivery and performance of this
Agreement, duly executed by Senior Lender; and

     

    (d)           the
fees and expenses described in Section
4.

     

    7.           This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original as against any party whose signature appears hereon,
and all of which shall together constitute one and the same
instrument.  This Agreement shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the signatures
of all of the parties reflected hereon as the signatories.

     

    8.           Sections 14.5, 14.6, 14.7 and 14.8 of the
Securities Purchase Agreement are hereby incorporated by reference and made a
part of this Agreement mutatis
mutandis, except that the references therein to “this Agreement” shall
include this Agreement.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

       

    

    9.           The
Company confirms and agrees that this Agreement shall constitute a Transaction
Document under the Securities Purchase Agreement.  Accordingly, it
shall be an Event of Default under the Securities Purchase Agreement if any
representation or warranty made or deemed made by the Company under or in
connection with this Agreement shall have been incorrect in any material respect
when made or deemed made or if the Company fails to perform or comply with any
covenant or agreement contained herein.

     

    [Signature
Page Follows]

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly
signed as of the date first above written.

     

    
      
        	 	
                BISON
      CAPITAL EQUITY PARTNERS II-A, L.P.

              	 
	 	 	 
	 	      
                By:
      BISON CAPITAL PARTNERS II, LLC, its general partner

              	 
	 	 	 	 
	
              	
                By:
      

              	/s/
      Douglas B . Trussler	 
	 	 	Name: Douglas
      B. Trussler	 
	 	 	Title: Managing
      Member	 

      

    

    
       

      
        
          	 	
                  BISON
      CAPITAL EQUITY PARTNERS II-B, L.P.

                	 
	 	 	 
	 	      
                  By:
      BISON CAPITAL PARTNERS II, LLC, its general partner

                	 
	 	 	 	 
	
                	
                  By:
      

                	/s/
      Douglas B . Trussler	 
	 	 	Name: Douglas
      B. Trussler	 
	 	 	Title: Managing
      Member	 

        

      

    

    
      
         

        
          
            	 	
                          
                      THE
      CENTER FOR WOUND HEALING, INC.

                    

                  	 
	 	 	 	 
	
                  	
                    By:
      

                  	      
                    /s/
      Andrew G. Barnett

                  	 
	 	 	Name: Andrew
      G. Barnett	 
	 	 	Title: Chief
      Executive Officer	 

          

        

      

       

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    

     

    Exhibit
A

     

    Merger Default and Name
Change Default

    

    Credit
Parties Organized under the laws of the State of Delaware

    

    Credit
Party merged into Atlantic Associates LLC:

    New York Hyperbaric & Wound Care
Centers LLC

    

    Atlantic
Associates LLC has been renamed CFWH (Delaware), LLC

    

    Credit
Parties Organized under the laws of the State of Massachusetts

    

    Credit
Party merged into Massachusetts Hyperbaric, LLC:

    Lowell Hyperbaric, LLC

    

    Massachusetts
Hyperbaric, LLC has been renamed CFWH (Massachusetts), LLC

    

    Credit
Parties Organized under the laws of the State of New Jersey

    

    Credit
Parties merged into NJ Hyperbaric LLC:

    JFK Hyperbaric LLC

    Muhlenberg Hyperbaric LLC

    South Ocean County Hyperbaric
LLC

    Trenton Hyperbaric LLC

    

    NJ
Hyperbaric LLC has been renamed CFWH (New Jersey) LLC

    

    Credit
Parties Organized under the laws of the State of New York

    

    Credit
Parties merged into Atlantic Hyperbaric LLC

    CEF Products LLC

    South Nassau Hyperbaric,
LLC

    South N Hyperbaric LLC

    Maimonides Hyperbaric LLC

    

    Atlantic
Hyperbaric LLC has been renamed CFWH (New York) LLC

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Credit
Parties Organized under the laws of the State of Pennsylvania

    

    Credit
Party merged into CMC Hyperbaric LLC:

    Scranton Hyperbaric, LLC

    

    CMC
Hyperbaric LLC has been renamed CFWH (Pennsylvania), LLC

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Exhibit
B

     

    EBITDA Covenant
Default

     

    The
Company’s Consolidated Adjusted EBITDA  for the trailing twelve months
ended March 31, 2010 was $$4,473,577, which failed to comply with the minimum
requirement of $7,000,000 for such period.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Exhibit
C

     

    Consolidated Leverage Ratio
Covenant Default

     

    The
Company’s Consolidated Leverage Ratio  for the trailing twelve months ended
March 31, 2010 was 6.21, which failed to comply with the maximum permitted
Consolidated Leverage Ratio of 4.50 for such period.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Exhibit
D

     

    Consent of
Guarantors

     

    See
attached.

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