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                                                                 Exhibit 10.9

                                  AMENDMENT
                                     TO
                            ANGELICA CORPORATION
                              SUPPLEMENTAL PLAN

         The Angelica Corporation Supplemental Plan (the "Plan") hereby is
amended, effective as of August 27, 2003, in the following particulars:

1.       The following defined term is added to the end of Section 1 to read
         as follows:

         (n) The "Plan Administrator" is Angelica Corporation.

2.       Section 6 (c) of the Plan is amended to read as follows:

         With the consent of the Plan Administrator, a Participant who is no
         longer employed by the Company may begin to receive payments at any
         time after he has reached age 60 (so long as he has satisfied the
         conditions for receipt of payments described below), but in any
         such case the formula amount will be discounted by 3% for each year
         that the Participant's age is less than 65 (if a Participant has
         elected some option payment period under paragraph (b), an
         appropriate, actuarially equivalent adjustment shall be made to the
         monthly payment he is to receive).

IN WITNESS WHEREOF, the Company has caused this amendment to be executed by
its duly authorized officer this 27th day of August, 2003.

                                   ANGELICA CORPORATION

                                   By /s/ T. M. Armstrong
                                     -----------------------------------------
                                      Sr. Vice President-Finance and
                                      Administration & Chief Financial OfficerExhibit 10.33

 

FIRST AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

This First
Amendment to Loan and Security Agreement is entered into as of August 28, 2003
(the “Amendment”), by and between COMERICA BANK, successor in interest to
COMERICA BANK – CALIFORNIA (“Bank”) and DITECH COMMUNICATIONS CORPORATION
(“Borrower”).

 

RECITALS

 

Borrower and
Bank are parties to that certain Loan and Security Agreement dated as of August
7, 2002, as amended (collectively, the “Agreement”). The parties desire to
amend the Agreement in accordance with the terms of this Amendment.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.               The following defined term in Section
1.1 of the Agreement is hereby amended to read as follows:

 

“Revolving Maturity Date” means July 31, 2004.

 

2. The reference
to “One Hundred Thousand Dollars ($100,000)” in Section 2.1(e) of the Agreement
is hereby amended to read as follows: “Two Hundred Thousand Dollars
($200,000)”.

 

3. The last
paragraph of Section 6.3 of the Agreement and Subsection 6.3(f) of the Agreement
are hereby deleted in their entirety.

 

4. Sections
6.7 and 6.8 of the Agreement are hereby amended in their entirety to read as
follows:

 

6.7 Accounts and Minimum Balance. Borrower shall maintain and shall
cause each of its Subsidiaries to maintain its primary depository and operating
accounts with Bank.

 

6.8  [Intentionally Omitted.]

 

5. Section
6.10 of the Agreement is hereby amended in its entirety to read as follows:

 

6.10 Minimum Liquidity. At all times, Borrower shall maintain a balance
of unrestricted cash and cash equivalents of not less than Twenty Million
Dollars ($20,000,000).

 

6. Exhibit C
to the Agreement is hereby amended and replaced in its entirety by Exhibit C
attached hereto.

 

7. Unless
otherwise defined, all initially capitalized terms in this Amendment shall be
as defined in the Agreement. The Agreement, as amended hereby, shall be and
remain in full force and effect in accordance with its respective terms and
hereby is ratified and confirmed in all respects. Except as expressly set forth
herein, the execution, delivery, and performance of this Amendment shall not
operate as a waiver of, or as an amendment of, any right, power, or remedy of
Bank under the Agreement, as in effect prior to the date hereof. Borrower
ratifies and reaffirms the continuing effectiveness of all promissory notes,
guaranties, security agreements, mortgages, deeds of trust, environmental
agreements, and all other instruments, documents and agreements entered into in
connection with the Agreement.

 

8. Borrower represents
and warrants that the representations and warranties contained in the Agreement
are true and correct as of the date of this Amendment, and that no Event of
Default has occurred which is continuing.

 

9. This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument.

 

10. As a
condition to the effectiveness of this Amendment, Bank shall have received, in
form and substance satisfactory to Bank, the following:

 

1

 

(a)          this Amendment, duly executed by Borrower;

 

(b)         an amount equal to all Bank Expenses incurred
through the date of this Amendment; and

 

(c)          such other documents, and completion of such
other matters, as Bank may reasonably

deem necessary or appropriate.

 

IN WITNESS
WHEREOF, the undersigned have executed this Amendment as of the first date
above

written.

 

	
   

  	
  DITECH
  COMMUNICATIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  J. Tamblyn

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  VP/Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA
  BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bob
  Shutt

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  FVP – Group
  Manager

  	
   

  
					

 

2

 

EXHIBIT C

COMPLIANCE
CERTIFICATE

 

TO: COMERICA BANK

FROM: DITECH COMMUNICATIONS
CORPORATION

 

The undersigned
authorized officer of DITECH COMMUNICATIONS CORPORATION hereby certifies that
in accordance with the terms and conditions of the Loan and Security Agreement
between Borrower and Bank (the “Agreement”), (i) Borrower is in complete
compliance for the period ending
                         
with all required covenants except as noted below and (ii) all representations
and warranties of Borrower stated in the Agreement are true and correct as of
the date hereof. Attached herewith are the required documents supporting the
above certification. The Officer further certifies that these are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) and are
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.

 

Please indicate
compliance status by circling Yes/No under “Complies” column.

 

	
  Reporting Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarterly
  financial statements

  	
   

  	
  Quarterly
  within 50 days

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual (CPA
  Audited)

  	
   

  	
  FYE within 100
  days

  	
   

  	
  Yes

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10K and 10Q

  	
   

  	
  (annually
  and quarterly, as applicable)

  	
   

  	
  Yes

  	
   

  	
  No

  

 

	
  Financial Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maintain at
  all times (measured on a Quarterly Basis):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum “Effective Tangible Net Worth”

  	
   

  	
  $

  	
  75,000,000

  	
  *

  	
  $

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  
	
  Minimum Liquidity

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  Yes

  	
   

  	
  No

  

 

* Borrower shall maintain at
all times an Effective Tangible Net Worth of not less than Seventy Five Million
Dollars ($75,000,000) plus fifty percent (50%) of all proceeds received by
Borrower on or after the Closing Date from Subordinated Debt and / or the sale
or issuance of its equity securities. “Effective Tangible Net Worth” as used
herein means Tangible Net Worth minus Total Liabilities.

 

	
  Comments Regarding Exceptions: See
  Attached.

  	
   

  	
  BANK USE ONLY

  
	
   

  	
   

  	
  Received by:

  	
   

  
	
  Sincerely,

  	
   

  	
   

  	
  AUTHORIZED SIGNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
  Signature

  	
   

  	
  Verified:

  	
   

  
	
   

  	
   

  	
   

  	
  AUTHORIZED SIGNER

  
	
  Title

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Compliance
  Status

  	
  Yes

  	
  No

  
									

 

3Exhibit 10.34

 

September 16, 2003

 

Jim H. Grady

 

Subject:  Employment Offer

 

Dear Jim,

 

I am pleased to offer you
employment as Vice President, Worldwide Sales reporting directly to me.   This offer is contingent upon the approval
of Ditech’s Board of Directors – Compensation Committee, the terms and
conditions described below, and your agreement with individual Sales Targets
and Quota to be developed within the first 30 days of your hire date.

 

Your compensation package
consists of the following:

•                  Base salary of
$16,250 per month, equivalent to $195,000 annualized.

•                  Subject to the
terms of the Ditech Commission Plan, commissions of up to $100,000 at 100%
attainment of quota, paid quarterly.  We
will guarantee 100% of your commission, pro rata, for the remainder of the
fiscal year ended April 30, 2004. 
Thereafter, we will provide you a non-recoverable draw against
commission at 80% of your annualized commission rate (approximately $6,666/mo)
for the first 5 months of fiscal ‘05 through September 2004. From October 2004,
we will not pay you a draw.     The draw
will be netted against commissions earned.

 

Subject to the approval of the
Company’s Board of Directors or its Compensation Committee, you will be granted
stock options to purchase 250,000 shares of the Company’s Common Stock. The
exercise price per share will be equal to the fair market value per share on
the date the option is approved by Ditech’s Board of Directors.  The option will be subject to the terms and
conditions applicable to options granted under Ditech’s  1998 Stock Plan, as described in that Plan
and the applicable stock option agreement. 
The options may be immediately exercisable and are Non-qualified options
unless otherwise noted.  The purchased
shares will be subject to repurchase by the Company at the exercise price or
fair market value, whichever is lower in the event that your service terminates
before you vest in the shares.  You will
vest in 25% of the option shares after 12 months of continuous service and the
balance will vest in monthly installments over the next 36 months of continuous
service.

 

Executive cash compensation is
reviewed at the beginning of our fiscal year on May 1st.

 

The company will employ you on
an “at will” basis, described below. 
However, if the company terminates your employment for any reason other
than cause during your first year of service or if there is a change of control
in the company and you are not offered an equivalent position, then the Company
will continue to pay your base salary for six months from the notification of
intent to separate or until your one year anniversary, whichever is
shorter.  “Cause” means (i) gross
negligence or willful misconduct in the performance of your duties; (ii)
commission of any act of fraud; or (iii) conviction of a felony or a crime
involving moral turpitude causing actual or potential harm to the business of
the company.  This severance benefit
will be in lieu of any other severance policy of general application to company
employees.  After the first year, you will
only be entitled to severance under any severance policy of general
application, if any. The same salary continuation period will be credited as
continuous service for purposes of the stock options described.  However, the maximum vesting continuation is
capped at one year from start date and the minimum vesting continuation is up
to one year from date of hire.  The
applicability of this is described above, based on termination of employment
for any reason other than cause (see definition of “cause” above), and
applicable to your first year of service only. 
This paragraph will not apply unless you (a) have executed a general
release (in a form prescribed by the Company) of all known and unknown claims
that you may then have against the Company or persons affiliated with the
Company and (b) have agreed not to prosecute any legal action for other
proceedings based on those claims.  This
paragraph is subject to Board approval.  
The normal exercise period for stock options pursuant to the plan is 90
days from date of termination.

 

 

Your benefit package with
Ditech Communications Corporation will include Health insurance coverage (with
partial premium due if for family coverage) beginning the first of the month
after date of employment, Life and Long Term Disability insurance with option
for additional coverage, Flexible Spending Program participation, Employee
Stock Purchase Program (ESPP) and 401(k) participation.  Eligibility for 401(k) is effective after 90
days of employment.  Your eligibility
for ESPP participation is subject to the terms of the plan.

 

Relocation:  As we are currently unfamiliar with the
specific costs you anticipate a general statement is perhaps best.  Therefore we will provide you with an
Allowance for Relocation in the amount of $65,000.00 to be utilized in the
manner appropriate for your move.   Any
tax implications will be your responsibility. 
Additionally, if you choose to leave Ditech’s employment within the
first year you will be required to repay the entire Allowance of Relocation.    If you are terminated by the Company for
any reason other than Cause, as defined above, then you will not have to repay
the Allowance of Relocation.

 

Your employment with Ditech
Communications Corporation is at-will. 
This means that either you or the company may terminate the employment
relationship at any time, with or without cause, and with or without prior
notice.  This at-will provision is only
subject to change in a writing signed by the CEO of the company.  You will be asked to sign the statement of
your acceptance and a confidentiality agreement when you report to work.

 

This offer letter constitutes
the entire terms of the offer of employment with the company, and supersedes
all prior negotiations and agreements, whether written or oral, relating to the
subject matter of the offer.

 

By signing this letter, you and
Ditech Communications Corporation, agree to submit to mandatory and exclusive
binding arbitration any controversy or claim arising out of or relating to this
matter, or any breach hereof or your employment relationship, provided,
however, that the parties retain their right to and shall not be prohibited,
limited or in any way restricted from, seeking or obtaining injunctive relief
from a court having jurisdiction over the parties.  Such arbitration shall be conducted through the American
Arbitration Association in the State of California, Santa Clara County, before
a single arbitrator, in accordance with the National Rules for Resolution of
Employment Disputes of the American Arbitration Association in effect at that
time.  The arbitrator must decide all
disputes in accordance with California Law and shall have power to decide all
matters, including arbitrability.  The
arbitrator shall allow limited, essential discovery to enable each of us to
present our cases, but shall be mindful of our mutual desire to avoid the
expense of broad discovery typically allowed in civil litigations.  The arbitrator shall issue a written
decision that contains the essential findings and conclusions on which the
decision is based.  You shall bear only
those  costs of arbitration you would
otherwise bear had you brought a claim covered by this Agreement in court.  Judgment upon the determination of award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof.  We each understand and agree
that we are waiving a trial by jury.

 

I look forward to working with
you and having you as a part of our valuable and dynamic team!  Please indicate your acceptance by signing
and returning this letter on or before September 26, 2003.  You may fax your acceptance to (650)
564-9593. We would like your employment, even part-time, to commence as soon as
possible with full responsibilities based on opportunities in your geographic
region. We anticipate your full time start to begin on or before October 6,
2003.

 

	
  Sincerely,

  	
  Accepted by:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Timothy
  K. Montgomery

  	
   

  	
  /s/ Jim H.
  Grady

  	
   

  	
  September
  25, 2003

  	
   

  
	
  Timothy K.
  Montgomery

  	
  Jim H. Grady

  	
  Date

  
	
  President,
  CEO & Chairman of the Board

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