Document:

Exhibit 10.10

                                                            Royal Bank of Canada
                                                   Commercial Financial Services
                                           1055 West Georgia Street - 36th Floor
                                             Vancouver, British Columbia V6E 3S5
                                                            Tel.: (604) 665-3135
                                                             Fax: (604) 665-6368

July 29, 2008

Private and Confidential

BRAINTECH, INC.
Suite 102
930 West 1st Street
North Vancouver, BC
V7P 3N4

ROYAL BANK OF CANADA (the "Bank") hereby confirms the credit facilities
described below (the "Credit Facilities") subject to the terms and conditions
set forth below and in the attached Terms & Conditions and Schedules
(collectively the "Agreement"). This Agreement supersedes and cancels the
existing agreement dated November 2, 2006 and any amendments thereto. Any amount
owing by the Borrower to the Bank under such previous agreement is deemed to be
a Borrowing under this Agreement. Any and all security that has been delivered
to the Bank and is set forth as Security below, shall remain in full force and
effect, is expressly reserved by the Bank and shall apply in respect of all
obligations of the Borrower under the Credit Facilities. Unless otherwise
provided, all dollar amounts are in Canadian currency.

BORROWER:         Braintech, Inc. (the "Borrower")

CREDIT FACILITIES
The aggregate of Facility #1 and Facility #2 shall not exceed $2,405,000 at any
time.

Facility #1:      $250,000 revolving demand facility by way of:

a) RBP based loans ("RBP Loans")

<TABLE>
<CAPTION>
------------------------------- ------------------- ------------------------------ -----------------------
<S>                             <C>                 <C>                            <C>
Revolve in increments of:       $5,000              Minimum retained balance:      $0
------------------------------- ------------------- ------------------------------ -----------------------
Revolved by:                    Bank                Interest rate (per annum):     RBP + .50%
------------------------------- ------------------- ------------------------------ -----------------------

b) RBUSBR based loans in US currency ("RBUSBR Loans")

------------------------------- ------------------- ------------------------------ -----------------------
Revolve in increments of:       $5,000              Minimum retained balance:      $0
------------------------------- ------------------- ------------------------------ -----------------------
Revolved by:                    Bank                Interest rate (per annum):     RBUSBR + .50%
------------------------------- ------------------- ------------------------------ -----------------------
</TABLE>

c) Letters of Credit in Canadian currency or US currency ("LCs")
--------------------------------------------------------------------------------
Fees to be advised on a transaction-by-transaction basis. Fees and drawings to
be charged to Borrower's accounts.
--------------------------------------------------------------------------------

d) Letters of Guarantee in Canadian currency or US currency ("LGs")

--------------------------------------------------------------------------------
Fees to be advised on a transaction-by-transaction basis. Fees and drawings to
be charged to Borrower's accounts. Minimum fee of $100 in the currency of issue.
--------------------------------------------------------------------------------

<PAGE>

AVAILABILITY
The Borrower may borrow, convert, repay and reborrow up to the amount of this
facility provided this facility is made available at the sole discretion of the
Bank and the Bank may cancel or restrict the availability of any unutilized
portion at any time and from time to time.

Borrowings outstanding under this facility plus the Borrowings outstanding under
Facility #2 and plus $45,000 must not exceed at any time the aggregate of the
following, less Potential Prior-Ranking Claims (the "Borrowing Limit"):

a)   100% of irrevocable and unconditional auto renewable standby letters of
     credit and/or letters of guarantee issued by an issuer acceptable to the
     Bank, confirmed by the Bank and in form and substance satisfactory to the
     Bank.

The aggregate Borrowings outstanding under this facility plus the aggregate
Borrowings outstanding under Facility #2 must not exceed the lesser of (i) the
Borrowing Limit and, (ii) $2,405,000 at any time.

REPAYMENT
Notwithstanding compliance with the covenants and all other terms and conditions
of this Agreement, and regardless of the maturities of any outstanding
instruments or contracts, Borrowings under this facility are repayable on
demand.

GENERAL ACCOUNT
The Borrower shall establish current accounts with the Bank in each of Canadian
currency and US currency (each a "General Account") for the conduct of the
Borrower's day-to-day banking business. The Borrower authorizes the Bank daily
or otherwise as and when determined by the Bank, to ascertain the balance of
each General Account and:
a)   if such position is a debit balance the Bank may, subject to the revolving
     increment amount and minimum retained balance specified in this Agreement,
     make available a Borrowing by way of RBP Loans, or RBUSBR Loans as
     applicable, under this facility; or
b)   if such position is a credit balance, where the facility is indicated to be
     Bank revolved, the Bank may, subject to the revolving increment amount and
     minimum retained balance specified in this Agreement, apply the amount of
     such credit balance or any part as a repayment of any Borrowings
     outstanding by way of RBP Loans, or RBUSBR Loans as applicable, under this
     facility.

Facility #2       $2,405,000 non-revolving term facility by way of:

a) RBP Loans                    Interest rate (per annum): RBP + .50%

b) RBUSBR Loans                 Interest rate (per annum): RBUSBR + .50%

c) Libor based loans in US
   currency ("Libor Loans")     Interest rate (per annum): Libor + 1.50%

AVAILABILITY
The Borrower may borrow and convert up to the amount of this term facility
provided an Event of Default shall not have occured and be continuing at the
time of any Borrowing. At any time after August 31, 2008, or such later date as
may be agreed upon between the Bank and the Borower, any unutilized portion of
this facility shall be cancelled by the Bank.

Borrowings outstanding under this facility plus the Borrowings outstanding under
Facility #1 and plus $45,000 must not exceed at any time the Borrowing Limit.

The aggregate Borrowings outstanding under this facility plus the aggregate
Borrowings outstanding under Facility #1 must not exceed the lesser of (i) the
Borrowing Limit and, (ii) $2,405,000 at any time.

<TABLE>
<CAPTION>
REPAYMENT
--------------------------- -------------------------- -------------------------- --------------------------
<S>                         <C>                        <C>                        <C>
Payment Amount:             $100,208                   Payment Frequency:         Monthly
--------------------------- -------------------------- -------------------------- --------------------------
Payment Type:               Principal Plus Interest    First payment date:        August 11, 2008
--------------------------- -------------------------- -------------------------- --------------------------
Repayable in full on:       July 11, 2009              Original Amortization      24
                                                       (months)
--------------------------- -------------------------- -------------------------- --------------------------
</TABLE>

                                       2
<PAGE>

OTHER FACILITIES
The Credit Facilities are in addition to the following facilities (the "Other
Facilities"). The Other Facilities will be governed by this Agreement and
separate agreements between the Borrower and the Bank. In the event of a
conflict between this Agreement and any such separate agreement, the terms of
the separate agreement will govern.

a) VISA Business to a maximum amount of $45,000.

FEES
One Time Fee:                               Monthly Fees:
Payable upon acceptance of this Agreement.  Payable in arrears on the same day
                                            of each month.
                                            Revolving Funds Arrangement Fee: $25
Application Fee:  $1,000                    Administration Fee: $25

SECURITY
Security for the Borrowings and all other obligations of the Borrower to the
Bank (collectively, the "Security"), shall include:

a)   General security agreement on the Bank's form 924 signed by the Borrower
     constituting a first ranking security interest in all personal property of
     the Borrower;

b)   Guarantee and postponement of claim on the Bank's form 812 in the amount of
     $2,895,000 signed by Braintech Canada, Inc., supported by a general
     security agreement on the Bank's form 924 constituting a first ranking
     security interest in all personal property of Braintech Canada, Inc.;

c)   Postponement and assignment of claim on the Bank's form 918 signed by
     Braintech Canada, Inc.;

d)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$400,000, provided by
     Owen Jones, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

e)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$250,000, provided by
     Dave Baird, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

f)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$750,000, provided by
     Rick Weidinger, from an issuer acceptable to the Bank, confirmed by the
     Bank and in form and substance satisfactory to the Bank;

g)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$250,000, provided by
     Kenneth Brooks from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

h)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$125,000, provided by
     Peter Speros, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

i)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$125,000, provided by
     Jim Speros, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

j)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$250,000, provided by
     Jeff Lubore, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

k)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$100,000, provided by
     Angie Speros, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

                                       3
<PAGE>

l)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$100,000, provided by
     Fred Bolander, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

m)   Irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank, in the amount of US$100,000, provided by
     Colin Eagan, from an issuer acceptable to the Bank, confirmed by the Bank
     and in form and substance satisfactory to the Bank;

n)   Cash collateral agreement on the Bank's form 610 signed by the Borrower
     assigning term deposits and/or guaranteed investment certificates in the
     amount of $20,000; and

o)   Letter of acknowledgement signed by each of the providers of the
     irrevocable and unconditional standby letter of credit or letter of
     guarantee in favour of the Bank as listed in paragraphs d) to m) above
     confirming the re-draw of the Credit Facilities as outlined in this
     Agreement and that the security described in paragraphs d) to m) remains in
     full force and effect until Facility #2 is repaid in full.

REPORTING REQUIREMENTS
The Borrower will provide the following to the Bank:

a)   quarterly company prepared consolidated financial statements for the
     Borrower, within 30 days of each fiscal quarter end;

b)   annual audited consolidated financial statements for the Borrower, within
     120 days of each fiscal year end;

c)   annual forecasted consolidated balance sheet and income and cash flow
     statements for the Borrower, prepared on a quarterly basis for the next
     following fiscal year, within 120 days of each fiscal year end; and

d)   such other financial and operating statements and reports as and when the
     Bank may reasonably require.

CONDITIONS PRECEDENT
In no event will the Credit Facilities or any part thereof be available unless
the Bank has received:

a)   a duly executed copy of this Agreement;

b)   the Security provided for herein, registered, as required, to the
     satisfaction of the Bank;

c)   such financial and other information or documents relating to the Borrower
     or any Guarantor if applicable as the Bank may reasonably require; and

d)   such other authorizations, approvals, opinions and documentation as the
     Bank may reasonably require.

Additionally;
e) all documentation to be received by the Bank shall be in form and substance
satisfactory to the Bank;

GOVERNING LAW JURISDICTION
Province of British Columbia.

                                       4
<PAGE>

ACCEPTANCE
This Agreement is open for acceptance until August 27, 2008, after which date it
will be null and void, unless extended in writing by the Bank.

ROYAL BANK OF CANADA

Per:
     ------------------------------------------------
Name:    David Gilbertson
Title:   Senior Account Manager

We acknowledge and accept the terms and conditions of this Agreement
on this _______ day of ________________, 2008.

BRAINTECH, INC.

Per: _________________________________________

Name:
Title:
Per:

Name: ________________________________________
Title:
I/We have the authority to bind the Borrower

\attachments:
Terms and Conditions
Schedules:
o    Definitions
o    Calculation and Payment of Interest and Fees
o    Additional Borrowing Conditions
o    Notice Requirements

                                       5
<PAGE>

                              TERMS AND CONDITIONS

The Bank is requested by the Borrower to make the Credit Facilities available to
the Borrower in the manner and at the rates and times specified in this
Agreement. Terms defined elsewhere in this Agreement and not otherwise defined
in the Terms and Conditions below or the Schedules attached hereto have the
meaning given to such terms as so defined. In consideration of the Bank making
the Credit Facilities available, the Borrower agrees, with the Bank as follows:

REPAYMENT
Amounts outstanding under the Credit Facilities, together with interest, shall
become due in the manner and at the rates and times specified in this Agreement
and shall be paid in the currency of the Borrowing. Unless the Bank otherwise
agrees, any payment hereunder must be made in money which is legal tender at the
time of payment. In the case of a demand facility of any kind, the Borrower
shall repay all principal sums outstanding under such facility upon demand
including, without limitation, an amount equal to the face amount of all LCs and
LGs which are unmatured or unexpired, which amount shall be held by the Bank as
security for the Borrower's obligations to the Bank in respect of such
Borrowings. Where any Borrowings are repayable by scheduled blended payments,
such payments shall be applied, firstly, to interest due, and the balance, if
any, shall be applied to principal outstanding. If any such payment is
insufficient to pay all interest then due, the unpaid balance of such interest
will be added to such Borrowing, will bear interest at the same rate, and will
be payable on demand or on the date specified herein, as the case may be.
Borrowings repayable by way of scheduled payments of principal and interest
shall be so repaid with any balance of such Borrowings being due and payable as
and when specified in this Agreement. The Borrower shall ensure that the
maturities of instruments or contracts selected by the Borrower when making
Borrowings will be such so as to enable the Borrower to meet its repayment
obligations.

PREPAYMENT
Where Borrowings are by way of RBP Loans or RBUSBR Loans, the Borrower may
prepay such Borrowings in whole or in part without fee or premium.

The prepayment of any Borrowings under a term facility and/or any term loan will
be made in the reverse order of maturity.

EVIDENCE OF INDEBTEDNESS
The Bank shall maintain accounts and records (the "Accounts") evidencing the
Borrowings made available to the Borrower by the Bank under this Agreement. The
Bank shall record the principal amount of such Borrowings, the payment of
principal and interest on account of the Borrowings, and all other amounts
becoming due to the Bank under this Agreement. The Accounts constitute, in the
absence of manifest error, conclusive evidence of the indebtedness of the
Borrower to the Bank pursuant to this Agreement. The Borrower authorizes and
directs the Bank to automatically debit, by mechanical, electronic or manual
means, any bank account of the Borrower for all amounts payable under this
Agreement, including, but not limited to, the repayment of principal and the
payment of interest, fees and all charges for the keeping of such bank accounts.

GENERAL COVENANTS
Without affecting or limiting the right of the Bank to terminate or demand
payment of, or cancel or restrict availability of any unutilized portion of, any
demand or other discretionary facility, the Borrower covenants and agrees with
the Bank that the Borrower:
a)   will pay all sums of money when due under the terms of this Agreement;
b)   will immediately advise the Bank of any event which constitutes or which,
     with notice, lapse of time or both, would constitute an Event of Default;
c)   will file all material tax returns which are or will be required to be
     filed by it, pay or make provision for payment of all material taxes
     (including interest and penalties) and Potential Prior-Ranking Claims,
     which are or will become due and payable and provide adequate reserves for
     the payment of any tax, the payment of which is being contested;
d)   will give the Bank 30 days prior notice in writing of any intended change
     in its ownership structure and it will not make or facilitate any such
     changes without the prior written consent of the Bank;
e)   will comply with all Applicable Laws, including, without limitation, all
     Environmental Laws;

                                       6
<PAGE>

f)   will immediately advise the Bank of any action requests or violation
     notices received concerning the Borrower and hold the Bank harmless from
     and against any losses, costs or expenses which the Bank may suffer or
     incur for any environment related liabilities existent now or in the future
     with respect to the Borrower;
g)   will deliver to the Bank such financial and other information as the Bank
     may reasonably request from time to time, including, but not limited to,
     the reports and other information set out under Reporting Requirements;
h)   will immediately advise the Bank of any unfavourable change in its
     financial position which may adversely affect its ability to pay or perform
     its obligations in accordance with the terms of this Agreement;
i)   will keep its assets fully insured against such perils and in such manner
     as would be customarily insured by Persons carrying on a similar business
     or owning similar assets. If the Borrower owns any commercial buildings
     located in Metropolitan Vancouver, the Lower Fraser Valley, Metropolitan
     Victoria or Saanich Peninsula, British Columbia, then, in addition to the
     preceding, the Borrower shall insure and keep fully insured such commercial
     buildings against risk of earthquake;
j)   except for Permitted Encumbrances, will not, without the prior written
     consent of the Bank, grant, create, assume or suffer to exist any mortgage,
     charge, lien, pledge, security interest or other encumbrance affecting any
     of its properties, assets or other rights;
k)   will not, without the prior written consent of the Bank, sell, transfer,
     convey, lease or otherwise dispose of any of its properties or assets other
     than in the ordinary course of business and on commercially reasonable
     terms;
l)   will not, without the prior written consent of the Bank, guarantee or
     otherwise provide for, on a direct, indirect or contingent basis, the
     payment of any monies or performance of any obligations by any other
     Person, except as may be provided for herein;
m)   will not, without the prior written consent of the Bank, merge, amalgamate,
     or otherwise enter into any other form of business combination with any
     other Person;
n)   will permit the Bank or its representatives, from time to time, to visit
     and inspect the Borrower's premises, properties and assets and examine and
     obtain copies of the Borrower's records or other information and discuss
     the Borrower's affairs with the auditors, counsel and other professional
     advisers of the Borrower;
o)   will not use the proceeds of any Credit Facility for the benefit or on
     behalf of any Person other than the Borrower.

EXPENSES, ETC.
The Borrower agrees to pay the Bank all fees, as stipulated in this Agreement.
The Borrower also agrees to pay all fees (including legal fees), costs and
expenses incurred by the Bank in connection with preparation, negotiation and
documentation of this Agreement and any Security and the operation, enforcement
or termination of this Agreement and the Security. The Borrower shall indemnify
and hold the Bank harmless against any loss, cost or expense incurred by the
Bank if any facility under the Credit Facilities is repaid or prepaid other than
on its Maturity Date. The determination by the Bank of such loss, cost or
expense shall be conclusive and binding for all purposes and shall include,
without limitation, any loss incurred by the Bank in liquidating or redeploying
deposits acquired to make or maintain any facility.

GENERAL INDEMNITY
The Borrower hereby agrees to indemnify and hold the Bank and its directors,
officers, employees and agents harmless from and against any and all claims,
suits, actions, demands, debts, damages, costs, losses, obligations, judgements,
charges, expenses and liabilities of any nature which are suffered, incurred or
sustained by, imposed on or asserted against any such Person as a result of, in
connection with or arising out of i) any Event of Default, ii) the Bank acting
upon instructions given or agreements made by electronic transmission of any
type, iii) the presence of Contaminants at, on or under or the discharge or
likely discharge of Contaminants from, any properties now or previously used by
the Borrower or any Guarantor and iv) the breach of or non compliance with any
Applicable Law by the Borrower or any Guarantor.

AMENDMENTS AND WAIVERS
No amendment or waiver of any provision of this Agreement will be effective
unless it is in writing, signed by the Borrower and the Bank. No failure or
delay, on the part of the Bank, in exercising any right or power hereunder or
under any Security shall operate as a waiver thereof. Any amendments requested
by the Borrower will require review and agreement by the Bank and its counsel.
Costs related to this review will be for the Borrower's account.

                                       7
<PAGE>

SUCCESSORS AND ASSIGNS
This Agreement shall extend to and be binding upon the parties hereto and their
respective heirs, executors, administrators, successors and permitted assigns.
The Borrower shall not be entitled to assign or transfer any rights or
obligations hereunder, without the consent in writing of the Bank. The Bank may
assign or transfer all or any part of its rights and obligations under this
Agreement to any Person. The Bank may disclose to potential or actual assignees
or transferees confidential information regarding the Borrower and any Guarantor
if applicable, (including, any such information provided by the Borrower, and
any Guarantor if applicable, to the Bank) and shall not be liable for any such
disclosure.

GAAP
Unless otherwise provided, all accounting terms used in this Agreement shall be
interpreted in accordance with Canadian Generally Accepted Accounting Principles
in effect from time to time, applied on a consistent basis from period to
period. Any change in accounting principles or the application of accounting
principles, including, without limitation, the use of differential reporting (or
any changes to the selection of differential reporting options) is only
permitted with the prior written consent of the Bank.

SEVERABILITY
The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement
and such invalid provision shall be deemed to be severable.

GOVERNING LAW
This Agreement shall be construed in accordance with and governed by the laws of
the Province identified in the Governing Law Jurisdiction section of this
Agreement and the laws of Canada applicable therein. The Borrower irrevocably
submits to the non-exclusive jurisdiction of the courts of such Province and
acknowledges the competence of such courts and irrevocably agrees to be bound by
a judgment of any such court.

DEFAULT BY LAPSE OF TIME
The mere lapse of time fixed for performing an obligation shall have the effect
of putting the Borrower, or a Guarantor if applicable, in default thereof.

SET-OFF
The Bank is authorized (but not obligated), at any time and without notice, to
apply any credit balance (whether or not then due) in any account in the name of
the Borrower, or to which the Borrower is beneficially entitled (in any
currency) at any branch or agency of the Bank in or towards satisfaction of the
indebtedness of the Borrower due to the Bank under the Credit Facilities and the
other obligations of the Borrower under this Agreement. For that purpose, the
Bank is irrevocably authorized to use all or any part of any such credit balance
to buy such other currencies as may be necessary to effect such application.

NOTICES
Any notice or demand to be given by the Bank shall be given in writing by way of
a letter addressed to the Borrower. If the letter is sent by telecopier, it
shall be deemed received on the date of transmission, provided such transmission
is sent prior to 5:00 p.m. on a day on which the Borrower's business is open for
normal business, and otherwise on the next such day. If the letter is sent by
ordinary mail to the address of the Borrower, it shall be deemed received on the
date falling five (5) days following the date of the letter, unless the letter
is hand-delivered to the Borrower, in which case the letter shall be deemed to
be received on the date of delivery. The Borrower must advise the Bank at once
about any changes in the Borrower's address.

CONSENT OF DISCLOSURE
The Borrower hereby grants permission to any Person having information in such
Person's possession relating to any Potential Prior-Ranking Claim, to release
such information to the Bank (upon its written request), solely for the purpose
of assisting the Bank to evaluate the financial condition of the Borrower.

NON-MERGER
The provisions of this Agreement shall not merge with any Security provided to
the Bank, but shall continue in full force for the benefit of the parties
hereto.

                                       8
<PAGE>

JOINT AND SEVERAL
Where more than one Person is liable as Borrower or Guarantor if applicable for
any obligation under this Agreement, then the liability of each such Person for
such obligation is joint and several (in Quebec, solidarily) with each other
such Person.

LIFE AND DISABILITY INSURANCE
The Borrower acknowledges that the Bank has offered it insurance on the
Borrowings under Business Loan Insurance Plan Policy 51000 ("Policy") issued by
Sun Life Assurance Company of Canada to the Bank and the Borrower hereby waives
this offer or acknowledges it is ineligible for this offer and acknowledges that
Borrowings are not insured under the Policy as at the date of acceptance of this
Agreement.

If there are any discrepancies between the insurance information above, and the
Business Loan Insurance Plan documents regarding the Borrowings, the Business
Loan Insurance Plan documents govern.

Business Loan Insurance Plan premiums, if applicable, are taken with your
scheduled loan payments. In the case of blended payments of principal and
interest, as premiums fluctuate based on various factors such as, by way of
example, the age of the insured and changes to the insured loan balance, a part
of the premium payment may be deducted and taken from the scheduled blended loan
payment with the result that the amortization period may increase in the case of
any such loan to which this coverage applies. Refer to the Business Loan
Insurance Plan application (form 3460 Eng or 53460 Fr) for further explanation
and disclosure.

COUNTERPART EXECUTION
This Agreement may be executed in any number of counterparts and by different
parties in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together constitute one and the same
instrument.

EMAIL AND FAX TRANSMISSION
The Bank is entitled to rely on any report or certificate provided to the Bank
by the Borrower or any Guarantor as applicable, by way of email or fax
transmission as though it were an originally signed document. The Bank is
further entitled to assume that any communication from the Borrower received by
email or fax transmission is a reliable communication from the Borrower.

REPRESENTATIONS AND WARRANTIES
The Borrower, represents and warrants to the Bank that:
a)   it is duly incorporated, validly existing and duly registered or qualified
     to carry on business in each jurisdiction in which its business or assets
     are located;
b)   the execution, delivery and performance by it of this Agreement have been
     duly authorized by all necessary actions and do not violate its constating
     documents or any Applicable Laws or agreements to which it is subject or by
     which it is bound;
c)   no event has occurred which constitutes, or which, with notice, lapse of
     time, or both, would constitute, an Event of Default;
d)   there is no claim, action, prosecution or other proceeding of any kind
     pending or threatened against it or any of its assets or properties before
     any court or administrative agency which relates to any non-compliance with
     any Environmental Laws which, if adversely determined, might have a
     material adverse effect upon its financial condition or operations or its
     ability to perform its obligations under this Agreement or any Security,
     and there are no circumstances of which it is aware which might give rise
     to any such proceeding which it has not fully disclosed to the Bank; and
e)   it has good and marketable title to all of its properties and assets, free
     and clear of any encumbrances, other than as may be provided for herein.

Representations and warranties are deemed to be repeated as at the time of each
Borrowing hereunder.

LANGUAGE
The parties hereto have expressly requested that this Agreement and all related
documents, including notices, be drawn up in the English language. Les parties
ont expressement demande que la presente convention et tous les documents y
afferents, y compris les avis, soient rediges en langue anglaise.

                                       9
<PAGE>

WHOLE AGREEMENT
This Agreement and any documents or instruments referred to in, or delivered
pursuant to, or in connection with, this Agreement constitute the whole and
entire agreement between the Borrower and the Bank with respect to the Credit
Facilities.

EVENTS OF DEFAULT
Without affecting or limiting the right of the Bank to terminate or demand
payment of, or to cancel or restrict availability of any unutilized portion of,
any demand or other discretionary facility, each of the following shall
constitute an "Event of Default" which shall entitle the Bank, in its sole
discretion, to cancel any Credit Facilities, demand immediate repayment in full
of any amounts outstanding under any term facility, together with outstanding
accrued interest and any other indebtedness under or with respect to any term
facility, and to realize on all or any portion of any Security:
a)   failure of the Borrower to pay any principal, interest or other amount when
     due pursuant to this Agreement;
b)   failure of the Borrower, or any Guarantor if applicable, to observe any
     covenant, condition or provision contained in this Agreement or in any
     documentation relating hereto or to the Security;
c)   the Borrower, or any Guarantor if applicable, is unable to pay its debts as
     such debts become due, or is, or is adjudged or declared to be, or admits
     to being, bankrupt or insolvent;
d)   if any proceeding is taken to effect a compromise or arrangement with the
     creditors of the Borrower, or any Guarantor if applicable, or to have the
     Borrower, or any Guarantor if applicable, declared bankrupt or wound up, or
     to have a receiver appointed for any part of the assets or operations of
     the Borrower, or any Guarantor if applicable, or if any encumbrancer takes
     possession of any part thereof;
e)   if in the opinion of the Bank there is a material adverse change in the
     financial condition, ownership or operation of the Borrower, or any
     Guarantor if applicable;
f)   if any representation or warranty made by the Borrower, or any Guarantor if
     applicable, under this Agreement or in any other document relating hereto
     or under any Security shall be false in any material respect; or
g)   if the Borrower, or any Guarantor if applicable, defaults in the payment of
     any other indebtedness, whether owing to the Bank or to any other Person,
     or defaults in the performance or observance of any agreement in respect of
     such indebtedness where, as a result of such default, the maturity of such
     indebtedness is or may be accelerated.

Should the Bank demand immediate repayment in full of any amounts outstanding
under any term facility due to an Event of Default, the Borrower shall
immediately repay all principal sums outstanding under such facility and all
other obligations in connection with any such term facility.

EXCHANGE RATE FLUCTUATIONS
If, for any reason, the amount of Borrowings outstanding under any facility,
when converted to the Equivalent Amount in Canadian currency, exceeds the amount
available under such facility, the Borrower shall immediately repay such excess
or shall secure such excess to the satisfaction of the Bank.

INCREASED COSTS
The Borrower shall reimburse the Bank for any additional cost or reduction in
income arising as a result of (i) the imposition of, or increase in, taxes on
payments due to the Bank hereunder (other than taxes on the overall net income
of the Bank), (ii) the imposition of, or increase in, any reserve or other
similar requirement, (iii) the imposition of, or change in, any other condition
affecting the Credit Facilities imposed by any Applicable Law or the
interpretation thereof.

JUDGEMENT CURRENCY
If for the purpose of obtaining judgement in any court in any jurisdiction with
respect to this Agreement, it is necessary to convert into the currency of such
jurisdiction (the "Judgement Currency") any amount due hereunder in any currency
other than the Judgement Currency, then conversion shall be made at the rate of
exchange prevailing on the Business Day before the day on which judgement is
given. For this purpose "rate of exchange" means the rate at which the Bank
would, on the relevant date, be prepared to sell a similar amount of such
currency in the Toronto foreign exchange market, against the Judgement Currency,
in accordance with normal banking procedures.

                                       10
<PAGE>

In the event that there is a change in the rate of exchange prevailing between
the Business Day before the day on which judgement is given and the date of
payment of the amount due, the Borrower will, on the date of payment, pay such
additional amounts as may be necessary to ensure that the amount paid on such
date is the amount in the Judgement Currency which, when converted at the rate
of exchange prevailing on the date of payment, is the amount then due under this
Agreement in such other currency together with interest at RBP and expenses
(including legal fees on a solicitor and client basis). Any additional amount
due from the Borrower under this section will be due as a separate debt and
shall not be affected by judgement being obtained for any other sums due under
or in respect of this Agreement.

                                       11
<PAGE>

Schedule "A" to the Agreement dated July 29, 2008, between Braintech, Inc., as
Borrower, and Royal Bank of Canada, as the Bank.

                                   DEFINITIONS

For the purpose of this Agreement, the following terms and phrases shall have
the following meanings:

"Applicable Laws" means, with respect to any Person, property, transaction or
event, all present or future applicable laws, statutes, regulations, rules,
orders, codes, treaties, conventions, judgements, awards, determinations and
decrees of any governmental, regulatory, fiscal or monetary body or court of
competent jurisdiction in any applicable jurisdiction;

"Banking Day" means a Business Day on which dealings in US currency deposits may
be carried on by and between leading Banks in the London Interbank Market;

"Borrowing" means each use of a Credit Facility and all such usages outstanding
at any time are "Borrowings";

"Business Day" means a day, excluding Saturday, Sunday and any other day which
shall be a legal holiday or a day on which banking institutions are closed
throughout Canada, and when used in connection with a Libor Loan, a "Business
Day" also excludes any day which shall be a legal holiday or a day on which
banking institutions are closed in Toronto, Ontario or in the province where the
Borrower's accounts are maintained;

"Contaminant" includes, without limitation, any pollutant, dangerous substance,
liquid waste, industrial waste, hazardous material, hazardous substance or
contaminant including any of the foregoing as defined in any Environmental Law;

"Environmental Activity" means any activity, event or circumstance in respect of
a Contaminant, including, without limitation, its storage, use, holding,
collection, purchase, accumulation, assessment, generation, manufacture,
construction, processing, treatment, stabilization, disposition, handling or
transportation, or its Release into the natural environment, including movement
through or in the air, soil, surface water or groundwater;

"Environmental Laws" means all Applicable Laws relating to the environment or
occupational health and safety, or any Environmental Activity;

"Equivalent Amount" means, with respect to an amount of any currency, the amount
of any other currency required to purchase that amount of the first mentioned
currency through the Bank in Toronto, in accordance with normal banking
procedures;

"Guarantor" means any Person who has guaranteed the obligations of the Borrower
under this Agreement;

"Interest Determination Date" means, with respect to a Libor Loan, the date
which is 2 Banking Days before the first day of the Libor Interest Period
applicable to such Libor Loan;

"Letter of Credit" or "LC" means a documentary credit issued by the Bank on
behalf of the Borrower for the purpose of paying suppliers of goods;

"Letter of Guarantee" or "LG" means a documentary credit issued by the Bank on
behalf of the Borrower for the purpose of providing security to a third party
that the Borrower or a person designated by the Borrower will perform a
contractual obligation owed to such third party;

"Libor" means, with respect to each Libor Interest Period applicable to a Libor
Loan, the annual rate of interest (rounded upwards, if necessary, to the nearest
whole multiple of one sixteenth of one percent (1/16th%)), at which the Bank, in
accordance with its normal practice, would be prepared to offer deposits to
leading banks in the London Interbank Market for delivery on the first day of
each of such Libor Interest Period, for a period equal to each such Libor
Interest Period, such deposits being in US currency of comparable amounts to be
outstanding during such Libor Interest Period, at or about 10:00 a.m. (Toronto
time) on the Interest Determination Date;

                                                                      Schedule A
<PAGE>

"Libor Interest Date" means with respect to any Libor Loan, the last day of each
Libor Interest Period and, if the Borrower selects a Libor Interest Period for a
period longer than 3 months, the Libor Interest Date shall be the date falling
every 3 months after the beginning of such Libor Interest Period as well as the
last day of such Libor Interest Period;

"Libor Interest Period" means, with respect to any Libor Loan, the initial
period (subject to availability) of approximately 1 month (or longer whole
multiples of 1 month to and including 6 months as selected by the Borrower and
notified to the Bank by written notice) or such shorter or longer period as the
Bank in its sole discretion shall make available commencing on the date on which
such Libor Loan is made or another method of Borrowing is converted to a Libor
Loan, as the case may be, and thereafter, while such Libor Loan is outstanding,
each successive period (subject to availability) of 1 month (or longer whole
multiples of 1 month to and including 6 months, as selected by the Borrower and
notified to the Bank by written notice) commencing on the last day of the
immediately preceding Libor Interest Period;

"Maturity Date" means the date on which a facility is due and payable in full;

"Permitted Encumbrances" means, in respect of the Borrower:
a)   liens arising by operation of law for amounts not yet due or delinquent,
     minor encumbrances on real property such as easements and rights of way
     which do not materially detract from the value of such property, and
     security given to municipalities and similar public authorities when
     required by such authorities in connection with the operations of the
     Borrower in the ordinary course of business; and
b)   Security granted in favour of the Bank;

"Person" includes an individual, a partnership, a joint venture, a trust, an
unincorporated organization, a company, a corporation, an association, a
government or any department or agency thereof including Canada Revenue Agency,
and any other incorporated or unincorporated entity;

"Potential Prior-Ranking Claims" means all amounts owing or required to be paid,
where the failure to pay any such amount could give rise to a claim pursuant to
any law, statute, regulation or otherwise, which ranks or is capable of ranking
in priority to the Security or otherwise in priority to any claim by the Bank
for repayment of any amounts owing under this Agreement;

"RBP" and "Royal Bank Prime" each means the annual rate of interest announced by
the Bank from time to time as being a reference rate then in effect for
determining interest rates on commercial loans made in Canadian currency in
Canada;

"RBUSBR" and "Royal Bank US Base Rate" each means the annual rate of interest
announced by the Bank from time to time as a reference rate then in effect for
determining interest rates on commercial loans made in US currency in Canada;

"Release" includes discharge, spray, inject, inoculate, abandon, deposit, spill,
leak, seep, pour, emit, empty, throw, dump, place and exhaust, and when used as
a noun has a similar meaning; and

"US" means United States of America.

                                                                      Schedule A
<PAGE>

Schedule "B" to the Agreement dated July 29, 2008, between Braintech, Inc., as
Borrower, and Royal Bank of Canada, as the Bank.

                  CALCULATION AND PAYMENT OF INTEREST AND FEES

LIMIT ON INTEREST
The Borrower shall not be obligated to pay any interest, fees or costs under or
in connection with this Agreement in excess of what is permitted by Applicable
Law.

OVERDUE PAYMENTS
Any amount that is not paid when due hereunder shall, unless interest is
otherwise payable in respect thereof in accordance with the terms of this
Agreement or the instrument or contract governing same, bear interest until paid
at the rate of RBP plus 5% per annum or, in the case of an amount in US currency
if applicable, RBUSBR plus 5% per annum. Such interest on overdue amounts shall
be computed daily, compounded monthly and shall be payable both before and after
any or all of default, maturity date, demand and judgement.

EQUIVALENT YEARLY RATES
The annual rates of interest or fees to which the rates calculated in accordance
with this Agreement are equivalent, are the rates so calculated multiplied by
the actual number of days in the calendar year in which such calculation is made
and divided by 365 or, in the case of Libor Loans if applicable, divided by 360.

TIME AND PLACE OF PAYMENT
Amounts payable by the Borrower hereunder shall be paid at such place as the
Bank may advise from time to time in the applicable currency. Amounts due on a
day other than a Business Day shall be deemed to be due on the Business Day next
following such day. Interest and fees payable under this Agreement are payable
both before and after any or all of default, maturity date, demand and
judgement.

RBP LOANS AND RBUSBR LOANS
The Borrower shall pay interest on each RBP Loan and RBUSBR Loan, monthly in
arrears, on the 21st day of each month or such other day as may be agreed to
between the Borrower and the Bank. Such interest will be calculated monthly and
will accrue daily on the basis of the actual number of days elapsed and a year
of 365 days and shall be paid in the currency of the applicable Borrowing.

LETTER OF CREDIT FEES
The Borrower shall pay a LC fee on the date of issuance of any LC calculated on
the face amount of the LC issued, based upon the number of days in the term and
a year of 365 days. If applicable, fees for LCs issued in US currency shall be
paid in US currency and fees for LCs issued in any other approved currency shall
be paid in Canadian currency.

LETTER OF GUARANTEE FEES
The Borrower shall pay a LG fee on the date of issuance of any LG calculated on
the face amount of the LG issued and based on the number of days in the term
thereof and a year of 365 days. If applicable, fees for LGs issued in US
currency shall be paid in US currency and fees for LGs issued in any other
approved currency shall be paid in Canadian currency.

LIBOR LOANS
The Borrower shall pay interest on each Libor Loan, on each Libor Interest Date,
calculated in arrears. Such interest will accrue daily and shall be calculated
on the basis of the actual number of days elapsed during the applicable Libor
Interest Period divided by 360.

                                                                      Schedule B
<PAGE>

Schedule "C" to the Agreement dated July 29, 2008, between Braintech, Inc., as
Borrower, and Royal Bank of Canada, as the Bank.

                         ADDITIONAL BORROWING CONDITIONS

LCs or LGs:

Borrowings made by way of LCs or LGs will be subject to the following terms and
conditions:

a)   each LC and LG shall expire on a Business Day and shall have a term of not
     more than 365 days;

b)   at least 2 Business Days prior to the issue of an LC or LG, the Borrower
     shall execute a duly authorized application with respect to such LC or LG
     and each LC and LG shall be governed by the terms and conditions of the
     relevant application for such contract;

c)   an LC or LG may not be revoked prior to its expiry date unless the consent
     of the beneficiary of the LC or LG has been obtained;

d)   any LC or LG issued under a term facility must have an expiry date on or
     before the Maturity Date of the term facility, unless otherwise agreed by
     the Bank; and

e)   if there is any inconsistency at any time between the terms of this
     Agreement and the terms of the application for LC or LG, the terms of the
     application for LC or LG shall govern.

Libor Loans:

Borrowings made by way of Libor Loans will be subject to the following terms and
conditions:

a)   Libor Loans shall be issued and mature on a Banking Day and shall be made
     in minimum amounts of $500,000 in US currency for terms of not less than 30
     days and not more than 360 days;

b)   if the Borrower fails to select and to notify the Bank of the Libor
     Interest Period applicable to any Libor Loan, the Borrower shall be deemed
     to have selected a 3 month Libor Interest Period;

c)   if the Bank so requests, the Borrower shall enter into a Hedge Contract to
     hedge the principal and interest of each Libor Loan against the risk of
     currency and exchange rate fluctuations. "Hedge Contract" means any rate
     swap, rate cap, rate floor, rate collar, currency exchange transaction,
     forward rate agreement or other exchange, hedging or rate protection
     transaction, or any combination of such transactions or agreements or any
     option with respect to any such transaction now existing or hereafter
     entered into between the Borrower and the Bank;

d)   the Borrower shall indemnify and hold the Bank harmless against any loss,
     cost or expense (including without limitation, any loss incurred by the
     Bank in liquidating or redeploying deposits acquired to fund or maintain
     any Libor Loan) incurred by the Bank as a result of:

         i)      repayments, prepayments, conversions, rollovers or
                 cancellations of a Libor Loan other than on the last day of the
                 Libor Interest Period applicable to such Libor Loan, or

         ii)     failure to draw down a Libor Loan on the first day of the Libor
                 Interest Period selected by the Borrower; and

e)   if the Bank determines, which determination is final, conclusive and
     binding upon the Borrower, that:

         i)      adequate and fair means do not exist for ascertaining the rate
                 of interest on a Libor Loan,

                                                                      Schedule C
<PAGE>

         ii)     the making or the continuance of a Libor Loan has become
                 impracticable by reason of circumstances which materially and
                 adversely affect the London Interbank Market,

         iii)    deposits in US currency are not available to the Bank in the
                 London Interbank Market in sufficient amounts in the ordinary
                 course of business for the applicable Libor Interest Period to
                 make or maintain a Libor Loan during such Libor Interest
                 Period, or

         iv)     the cost to the Bank of making or maintaining a Libor Loan does
                 not accurately reflect the effective cost to the Bank thereof
                 or the costs to the Bank are increased or the income receivable
                 by the Bank is reduced in respect of a Libor Loan,

then the Bank shall promptly notify the Borrower of such determination and the
Borrower shall, prior to the next Interest Determination Date, notify the Bank
as to the basis of Borrowing it has selected in substitution for such Libor
Loan. If the Borrower does not so notify the Bank, such Libor Loan will
automatically be converted into an RBUSBR Loan on the expiry of the then current
Libor Interest Period.

<PAGE>

Schedule "D" to the Agreement dated July 29, 2008, between Braintech, Inc., as
Borrower, and Royal Bank of Canada, as the Bank.

                               NOTICE REQUIREMENTS

Notice Requirements for Libor Loans:
------------------------------------

<TABLE>
<CAPTION>
=============================================================================================================
                        Amount                                             Prior Notice

=============================================================================================================
<S>                                                   <C>
Under $10,000,000 in US currency and up to 1 year     By 10:00 a.m. Eastern Standard Time on the Interest
rollovers                                             Determination Date

=============================================================================================================
</TABLE>

                                                                      Schedule Dex_10-25.htm

     

    
      

      

    

     

    Execution
Copy

    

    SEPARATION
AGREEMENT

    

    

    THIS SEPARATION AGREEMENT
between Uluru Inc., a Nevada corporation (the "Company"), and Kerry
P. Gray (hereinafter referred to as "Gray"), dated as of
March 9, 2009 (the “Effective Date”);

    

    WHEREAS, Gray is a member of
the Board of Directors of the Company (the “Board”), and
President and Chief Executive Officer of the Company;

    

    WHEREAS, Gray intends to
resign and terminate his employment and all other positions of employment with
the Company and its subsidiaries, including the offices of President and Chief
Executive Officer;

    

    WHEREAS, the Company intends
to accept Gray’s resignation and wishes to provide to Gray certain payments and
to provide Gray with certain other benefits upon such termination and Gray
agrees to give certain releases and provide certain services to the
Company;

    

    NOW, THEREFORE, in
consideration of the mutual promises set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

    

    
      	
              1.

            	
              Resignation and
      Termination.

            

    

    

    
      	
               
      

            	
              1.1.

            	
              Gray
      hereby resigns from all employment positions he currently holds with the
      Company and any subsidiary of the Company, including without limitation
      the positions of President and Chief Executive Officer effective as of the
      Effective Date.  Gray shall remain as a member of the Board of
      Directors, subject to the provisions of Section
  3.5.

            

    

    

    
      	
               
      

            	
              1.2.

            	
              The
      Employment Agreement, dated as of January 1, 2006, by and between the
      Company and Gray is hereby terminated in its entirety as of the Effective
      Date and neither party thereto shall have any further rights or owe any
      further payment, duty or obligation to the other thereunder;
      notwithstanding the foregoing, (a) the non-competition obligation of Gray
      set forth in Section 8 of the Employment Agreement and (b) the
      non-solicitation obligation of Gray set forth in Section 9 of the
      Employment Agreement shall each survive for a period of one year from the
      date of this Agreement.

            

    

    

    2.           Company
Covenants.

    

    
      	
               
      

            	
              2.1.

            	
              Cash
      Payments.  Commencing as of the Effective Date, Gray
      shall be entitled to the following cash
  payments:

            

    

     

    

      
        
          
            
              
                
                  	 	
                          (a)

                        	
                          Commencing
      as of March 2009, the Company shall pay Mr. Gray a cash payment of
      $54,166.66 per month, payable semi-monthly, for a period of six months,
      making an aggregate payment of $325,000 under this Section 2.1(a);
      and

                        
	 	 
      	 
      
	 	
                          (b)

                        	
                          Thereafter
      for a period of fifty-four (54) months, the Company shall pay to Gray a
      payment of $12,500 per month, payable semi-monthly, making an aggregate
      payment of $675,000 under this
  Section 2.1(b).

                        

                

              

            

          

        

      

    

     

     

    
      	
               
      

            	
              2.2.

            	
              Vesting and Exercise
      of Existing Options and Restricted Stock.  On the
      Effective Date, all outstanding Company stock options and shares of
      restricted stock of the Company held by Gray shall immediately and fully
      vest.  All outstanding Company stock options held by Gray shall
      remain exercisable by Gray until March 1, 2012, notwithstanding anything
      to the contrary in documents related to such option grants, and shall
      expire on such date.  As of the Effective Date, Mr. Gray shall
      forfeit 300,000 of the stock options currently held by
  him.

            

    

    

    
      	
               
      

            	
              2.3.

            	
              Consulting.  At
      the Company’s sole discretion, Gray and the Company hereby agree that,
      beginning on  the Effective Date through August 31, 2009, the
      Company may request that Gray serve the Company in the capacity of a
      consultant for the equivalent of up to two full days per
      month.  Mr. Gray shall not be paid for such
      consulting.

            

    

    

    
      	
               
      

            	
              2.4.

            	
              Benefits.  For
      a period of Twenty-Four (24) months following the Effective Date, the
      Company shall, at its sole expense, continue to maintain and provide
      coverage under Gray’s existing health coverage plan.  Gray
      agrees that he shall not be entitled to receive any compensation under the
      Company’s paid time off (PTO) benefit program.  While Mr. Gray
      remains on the Board of Directors of the Company, the Company shall
      maintain for Mr. Gray his current Company e-mail
  address.

            

    

    

    
      	
               
      

            	
              2.5.

            	
              Withholding.  All
      payments required to be made by the Company hereunder to Gray shall be
      subject to the withholding of such amounts, if any, relating to tax and
      other payroll deductions as the Company may reasonably determine it must
      withhold pursuant to any applicable law or
  regulation.

            

    

    

    
      	
               
      

            	
              2.6.

            	
              No Duty to Mitigate
      Damages.  Gray's payments and benefits under Sections
      2.1, 2.2 and 2.4 of this Agreement shall be considered severance pay in
      consideration of his past service and his agreement to comply with the
      provisions of his Employment Agreement relating to noncompetition and as
      an inducement to him to enter into and become bound by this Agreement, and
      his entitlement thereto shall not be dependent upon whether or not Gray
      provides further services of any type to or for the Company or any third
      party.

            

    

    

    
      	
               
      

            	
              2.7

            	
              Default.  Notwithstanding
      any provision in this Agreement to the contrary, but subject to Section
      11.9, in the event that the Company defaults in its obligations to provide
      the payments and benefits in Sections 2.1 or 2.4, then all amounts and
      benefits that otherwise would have been due and payable under the
      Employment Agreement dated as of January 1, 2006 by and between the
      Company and Gray, including without limitation the payments and benefits
      set forth in Section 6.2.1 (less any payments previously made under this
      Agreement) shall become due and payable ten (10) days after written notice
      of default from Mr. Gray if such default is not
  cured.

            

    

    

    3.           Gray
Covenants.  Gray hereby covenants with the Company as
follows:

    

    
      	
               
      

            	
              3.1.

            	
              Non-disclosure.  Gray
      recognizes and acknowledges that he has had and will have access to
      certain highly sensitive, special, unique information of the Company that
      is confidential or proprietary.  Gray hereby covenants and
      agrees not to use or disclose any Confidential Information (as hereinafter
      defined) except for disclosures made solely (i) to authorized
      representatives of the Company; or (ii) as required by any governmental,
      statutory or judicial authority, provided that prior to any such
      disclosure Gray shall provide the Company with notice of such requirement
      as is practicable and shall cooperate with the Company in responding to
      such requirement, including assisting the Company in procuring a
      protective order or other modification of such required
      disclosure.

            

    

    

    
      	
               
      

            	
              3.2.

            	
              Confidential
      Information.  For purposes of this Agreement, "Confidential
      Information"
      means any data or information with respect to the business conducted by
      the Company that is material to the Company and not generally known by the
      public.  To the extent consistent with the foregoing definition,
      Confidential Information includes without limitation; (i) reports,
      pricing, sales manuals and training manuals, selling and pricing
      procedures, and financing methods of the Company, together with any
      techniques utilized by the Company in designing, developing,
      manufacturing, testing or marketing its products or in performing services
      for clients, customers and accounts of the Company and (ii) the
      business plans and financial statements, reports and projections of the
      Company.

            

    

    

    
      	
               
      

            	
              3.3.

            	
              Return of
      Property.  Gray covenants, agrees and acknowledges that
      all Confidential Information is and shall remain the sole, exclusive and
      valuable property of the Company and Gray has and shall acquire no right,
      title or interests therein.  Any and all printed, typed, written
      or other material which Gray may have or obtain shall be and remain the
      exclusive property of the Company, and any and all material (including any
      copies) shall be promptly delivered by Gray to the Company.  The
      Company acknowledges that the personal property listed on Exhibit B is and shall
      remain Gray’s personal property unaffected by this
    Agreement.

            

    

    

    
      	
               
      

            	
              3.4.

            	
              Stock
      Lock-up1.  If requested by investors in
      a financing, Mr. Gray will agree in writing not to sell any shares of the
      common stock of the Company owned or controlled by him, except as
      follows:

            

    

    

    (1)           no
sales for 90 days after the Effective Date

    

    (2)           90%
lock-up for 180 days after the Effective Date

    

    (3)           80%
lock-up for 270 days after the Effective Date

    

    (4)           70%
lock-up for 360 days after the Effective Date

    

    (5)           50%
lock-up for 450 days after the effective Date

    

    (6)           25%
lock-up for 540 days after the Effective Date

    

    In
addition, if requested by investors in a financing, Mr. Gray agrees not to sell
any shares for a period of 90 days after his resignation from the Board of
Directors.  For the avoidance of doubt, the above schedule commences
on the Effective Date of this Separation Agreement, not at the closing of a
financing.  In the event of a breach by the Company of Section 2.1(b),
2.2 or 2.4, the provisions of this lock-up arrangement shall
terminate.

    

    
      	
               
      

            	
              3.5.

            	
              Board
      Membership.  At the request of the Board at any time in
      2009 in connection with a Company financing, Mr. Gray shall resign as a
      member of the Board of Directors and each of its
    subsidiaries.

            

    

    

    4.           Indemnification.  The
Company shall indemnify Gray to the same extent provided to its other directors
and officers by its charter and by-laws against all costs, charges and expenses,
including, without limitation, attorneys’ fees, incurred or sustained by Gray in
connection with any action, suit or proceeding to which Gray may be made a party
by reason of being an officer, director or employee of the Company for acts
undertaken from the time of his employment by the Company through the date of
his resignation as a member of the Board (the “Indemnification Period”), and Gray
will be included as an insured individual under any liability insurance policy
that insures other officers or directors of the Company for acts taken during
the Indemnification Period.

    

    
      	
              5.

            	
              Public Statement,
      Non-disparagement.

            

    

    

    
      	
               
      

            	
              5.1.

            	
              With
      respect to Mr. Gray’s separation from the Company, neither Gray nor the
      Company shall make any public statement other than the Approved Public
      Statement set forth on Exhibit A (the
      “Approved Public Statement”) or statements that are consistent with the
      Approved Public Statement.

            

    

    

    
      	
               
      

            	
              5.2.

            	
              Gray
      shall make no disparaging statements, whether public or private, with
      regard to the Company, its current officers, employees or members of the
      Board unless and to the extent specifically compelled by any governmental
      agency or tribunal to make a
statement.

            

    

    

    
      	
               
      

            	
              5.3.

            	
              The
      Company and the members of the Board shall make no disparaging statements,
      whether public or private, about Gray unless and to the extent
      specifically compelled by any government agency or tribunal to make a
      statement.  In response to an inquiry, or as necessary or
      appropriate to make clear Gray’s status with the Company or the
      circumstances of his departure, the Company and the members of the Board
      shall inform third parties that Gray is a shareholder of the Company
      and/or that he is not an employee, officer, director (as applicable) or
      other agent of the Company by saying that Gray remains a shareholder
      and/or director of the Company and that Gray resigned voluntarily, or
      other words of similar effect.  Neither the Company nor the
      members of the Board shall make any statement that implies or suggests
      that the reason for Gray’s separation from the Company was anything other
      than Gray’s voluntary action.

            

    

    

    
      	
              6.

            	
              Mutual Release and
      Covenant Not to Sue.

            

    

    

    
      	
               
      

            	
              6.1

            	
              Release and Covenant
      Not to Sue from Gray.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Release.  Gray
      hereby releases each of the Company and its officers, employees,
      directors, attorneys, agents, successors, and assigns, from each and every
      right, claim, debt, demand, liability, cost, expense, and/or cause of
      action, which he has or may have had against any of such released parties
      as of the Effective Date, whether known or
  unknown.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Covenant Not to
      Sue.  Gray hereby covenants and agrees not to bring suit
      against any of the Company or any of  its officers, employees,
      directors, attorneys, agents, successors, and assigns based upon any claim
      herein released.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Rights
      Retained.  Notwithstanding anything in this Agreement to
      the contrary, Gray expressly reserves his right to take action against the
      Company to preserve his rights under this Agreement in the event of a
      breach thereof by the Company, subject to Section 7
      below.

            

    

    

    
      	
               
      

            	
              6.2

            	
              Release and Covenant
      Not to Sue from the Company.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Release.  The
      Company hereby releases each of Gray and his attorneys, agents,
      successors, and assigns from each and every right, claim, debt, demand,
      liability, cost, expense, and/or cause of action arising out of Gray’s
      service or status as an employee, officer, director, shareholder (in his
      capacity as such) or representative of shareholders of the Company,
      existing as of the Effective Date and whether known or
      unknown.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Covenant Not to
      Sue.  The Company hereby covenants and agrees not to
      bring suit against each of Gray and his attorneys, agents, successors, and
      assigns based upon any claim herein
released.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Rights
      Retained.  Notwithstanding anything in this Agreement to
      the contrary, the Company expressly reserves its right to take action
      against Gray to preserve its rights under this Agreement in the event of a
      breach thereof by Gray, subject to Section 7
  below.

            

    

    

    
      	
              7.

            	
              Arbitration.  Any
      controversy or claim arising out of or relating to this Agreement, or the
      breach thereof, shall be settled exclusively by single-arbitrator
      arbitration, in Dallas, Texas, in accordance with the Commercial
      Arbitration Rules of the American Arbitration Association then in effect,
      and judgment upon the award rendered by the arbitrator may be entered in
      any court having jurisdiction
thereof.

            

    

    

    
      	
              8.

            	
              Collateral.  Payments
      owed to Gray by the Company pursuant to Section 2 hereof shall be
      secured by, and the Company hereby grants to Gray a first priority
      security interest in and to, the assets of the Company relating to
      Zindaclin, including the patent rights, royalty payments, licensing
      payments and milestone payments.  Any failure to pay timely any
      amount due under Section 2.1(b) shall result, automatically, in the
      full acceleration of all such payments (i) which are not yet paid in full,
      and (ii) which do not constitute deferred compensation within the meaning
      of Section 409A (as defined in Section 11.9(i), below), if such amount due
      is not paid within 10 days after written notice from Gray.  With
      respect to the Company, any commencement of a bankruptcy proceeding,
      assignment for the benefit of creditors or the appointment of a receiver,
      trustee, liquidator or other similar official shall also result,
      automatically, in the full acceleration of all such payments (i) which are
      not yet paid in full, and (ii) which do not constitute deferred
      compensation within the meaning of Section
409A.

            

    

    

    
      	
              9.

            	
              Legal Fees and
      Expenses.  Each party hereto shall pay its own legal fees
      and expenses of counsel reasonably incurred by such party in connection
      with the negotiation, execution and delivery of this Agreement or in
      seeking in good faith to obtain any right or benefit to which such party
      believes it or he is entitled under this Agreement.  In the
      event of a default by the Company with respect to any payments owed to
      Gray under this Agreement, the Company agrees to pay Gray any costs of
      collection, including but not limited to any reasonable attorneys fees,
      which shall be deemed additional payments that are secured pursuant to
      Section 8 hereto.

            

    

    

    
      	
              10.

            	
              Notices.  Any
      notices required to be given under this Agreement shall be in writing and
      shall be deemed given three (3) days after mailing in the continental
      United States by registered or certified mail, or upon personal receipt
      after delivery, telex, telecopy, or telegram, to the party entitled
      thereto at the address stated below or to such changed address as the
      addressee may have given by a similar
notice:

            

    

    

    To the
Company:           Uluru
Inc.

    4452 Beltway Drive

    Addison,
TX 75001

    Attn: Chief Executive
Officer

    

    With a copy
to:             
John J. Concannon III, Esq.

          Bingham McCutchen LLP

          One Federal Street

          Boston, MA 02110

    

    To
Gray:                      
Kerry Gray

    15806
Breedlove Place

    Addison,
TX 75001

    

    11.           General
Provisions.

    

    
      	
              11.1.

            	
              Binding
      Agreement.  This Agreement shall be binding upon and
      inure to the benefit of Gray and be enforceable by his personal or legal
      representatives or successors.  If Gray dies while any amounts
      would still be payable to him hereunder, his rights herein shall still be
      exercisable by such representatives or successors.  Such amounts
      shall be paid to Gray's estate in accordance with the terms of this
      Agreement.  This Agreement shall not otherwise be assignable by
      Gray.

            

    

    

    
      	
              11.2.

            	
              Successors.  This
      Agreement shall inure to and be binding upon the Company's
      successors.  The Company shall require any successor to all or
      substantially all of its business and/or assets by sale, merger (where the
      Company is not the surviving corporation), consolidation, lease or
      otherwise, by agreement in form and substance satisfactory to Gray, to
      assume this Agreement expressly.  This Agreement shall not
      otherwise be assignable by the
Company.

            

    

    

    
      	
              11.3.

            	
              Amendment or
      Modification; Waiver.  This Agreement may not be amended
      or modified unless agreed to in writing by Gray and the
      Company.  No waiver by either party of any breach of this
      Agreement shall be deemed a waiver of any subsequent
    breach.

            

    

    

    
      	
              11.4.

            	
              Severability.  In
      the event that any provision of this Agreement shall be determined to be
      invalid or unenforceable, such provision shall be enforceable in any
      jurisdiction in which valid and enforceable, and in any event the
      remaining provisions shall remain in full force and effect to the fullest
      extent permitted by law.

            

    

    

    
      	
              11.5.

            	
              Rights
      Granted.  This Agreement shall not give Gray any right to
      compensation or benefits from the Company or any affiliate of the Company,
      except for the rights specifically stated herein, including those certain
      severance and other benefits that become payable on or after the Effective
      Date.

            

    

    

    
      	
              11.6.

            	
              Governing
      Law.  The validity, interpretation, performance, and
      enforcement of this Agreement shall be governed by and construed in
      accordance with the internal laws of the State of Texas, without giving
      effect to the principles of choice of law or conflicts of
    law.

            

    

    

    
      	
              11.7.

            	
              Counterparts.  This
      Agreement may be executed in multiple counterparts, each of which shall be
      deemed an original, but all of which taken together shall constitute one
      and the same Agreement.

            

    

    

    
      	
              11.8.

            	
              Section
      Headings.  The descriptive section headings in this
      Agreement have been inserted for convenience of reference only and are not
      intended to be part of, or to affect the meaning or interpretation of,
      this Agreement.

            

    

    

    
      	
              
                11.9

              

            	
               

            	
              Section
      409A.

            

    

    

    (a) Purpose. This section is intended
to help ensure that compensation paid or delivered to Gray pursuant to this
Agreement either is paid in compliance with, or is exempt from,
Section 409A of the Internal Revenue Code of 1986, as amended and the rules
and regulations promulgated thereunder (collectively, “Section 409A”).
However, the Company does not warrant to Gray that all compensation paid or
delivered to him for his services will be exempt from, or paid in compliance
with, Section 409A.  Except as otherwise provided herein, Gray
understands and agrees that he bears the entire risk of any adverse federal,
state or local tax consequences and penalty taxes which may result from payment
of compensation for his services on a basis contrary to the provisions of
Section 409A or comparable provisions of any applicable state or local income
tax laws.

     

    (b) Amounts Payable On Account
of Termination. For the purposes of determining when amounts otherwise
payable on account of Gray's termination of employment under this Agreement will
be paid, which amounts become due because of his termination of employment,
“termination of employment” or words of similar import, as used in this
Agreement, shall be construed as the date that Gray first incurs a “separation
from service” for purposes of Section 409A on or following termination of
employment.  Furthermore, if Gray is a “specified employee” of a
public company as determined pursuant to Section 409A as of his termination
of employment, any amounts payable on account of his termination of employment
which constitute deferred compensation within the meaning of Section 409A and
which are otherwise payable during the first six months following Gray's
termination (or prior to his death after termination) shall be paid to Gray in a
cash lump-sum on the earlier of (1) the date of his death and (2) the first
business day of the seventh calendar month immediately following the month in
which his termination occurs.

     

    (c) Reimbursements.  Any
taxable reimbursement of business or other expenses as specified under this
Agreement shall be subject to the following conditions: (1) the expenses
eligible for reimbursement in one taxable year shall not affect the expenses
eligible for reimbursement in any other taxable year; (2) the reimbursement of
an eligible expense shall be made no later than the end of the year after the
year in which such expense was incurred; and (3) the right to reimbursement
shall not be subject to liquidation or exchange for another
benefit.

     

    (d) Interpretative Rules.
In applying Section 409A to amounts paid pursuant to this Agreement, any right
to a series of installment payments under this Agreement shall be treated as a
right to a series of separate payments.

     

    (e) Deferred Compensation
Taxes.  Notwithstanding any other provisions of this Agreement,
in the event that any payment or benefit under this Agreement received or to be
received by Gray (the “Payment”) is
determined to be subject (in whole or part) to the penalties imposed by Section
409A (the “Additional
Taxes”), then Gray shall be entitled to receive an additional payment (a
“Gross-Up
Payment”) in an amount such

     

    that
after payment by Gray of the Additional Taxes imposed upon the Payment, Gray
retains an amount equal to the Payment net of any otherwise applicable taxes and
withholdings (that is, applicable taxes and withholdings other than Additional
Taxes).  Gray shall also be entitled to be reimbursed by the Company
for any costs and expenses relating to any disputes with the IRS relating to
Section 409A.  All determinations required to be made under this
Section 11.9(e), including whether and when a Gross-Up Payment is required and
the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by the Company’s accountants or
such other certified public accounting firm reasonably acceptable to the Company
as may be designated by Gray which shall provide detailed supporting
calculations both to the Company and Gray.  Any Gross-Up Payment due
under this paragraph shall be paid to Gray within ten (10) business days after
notice from Mr. Gray that he has made any such payment to the IRS, provided that
in no event may such reimbursement be made to Mr. Gray later than December 31 of
the calendar year following the calendar year in which Gray remits the
Additional Taxes to the applicable authorities.

     

    
      	
              12.

            	
              Exclusive
      Agreement.  It is agreed and understood that this
      Agreement represents the entire agreement between the Company and Gray
      concerning the subject matter hereof and supersedes all prior agreements
      and understandings concerning Gray's rights upon the termination of his
      employment.

            

    

    

    IN WITNESS WHEREOF, the
parties hereto have executed this Agreement under seal as of the day and year
first above written.

     

    
 

        Uluru
Inc.                                                                                     Kerry
Gray

    

    

        By:      /s/ William W.
Crouse                                                    /s/ Kerry
Gray

        Name: William
W. Crouse

        Title:   
Chairman

     

    

    

      

    

      
      

       

      1 This lock-up applies to 5,125,000 shares controlled by Mr. Gray
which initially shall be subject to this lock-up.  It is expected that
ninety days after Mr. Gray is no longer an officer or director that he would not
be an affiliate and his filing obligations with the SEC would relate to updating
his Form 13G while he remains a 5% stockholder of the
Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]