Document:

exhibit10_28.htm

    
       Exhibit 10.28 

       

       SECOND
AMENDMENT TO CREDIT AGREEMENT 

       

      SECOND AMENDMENT TO CREDIT
AGREEMENT (the “ Second Amendment ”) dated as of March
4, 2009 by and among GERBER SCIENTIFIC, INC., GERBER SCIENTIFIC INTERNATIONAL
INC., as Borrowers, GERBER COBURN OPTICAL INTERNATIONAL, INC., GERBER SCIENTIFIC
UK, LTD., SPANDEX LTD., GERBER SCIENTIFIC INTERNATIONAL LTD., VIRTEK VISION
INTERNATIONAL INC., VIRTEK LASER SYSTEMS NORTH AMERICA, INC. and VIRTEK EUROPEAN
HOLDINGS INC. (the “ Guarantors ”), the several banks and other financial
institutions and lenders from time to time party hereto (the “ Lenders ”),
and RBS CITIZENS, N.A., in its capacity as administrative agent for the Lenders
(the “ Agent ”).

       

       Recitals 

       

      The Borrowers, the Guarantors,
the Lenders and the Agent are each party to that certain Credit Agreement dated
as of January 31, 2008 as amended by that certain First Amendment to Credit
Agreement dated November 21, 2008 (the “ Credit
Agreement ”) pursuant to which the Lenders have established a
revolving credit facility for the benefit of the Borrowers.  The Borrowers
and the Majority Lenders have agreed to certain changes to the terms of the
Credit Agreement.

       

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

       

       Section
1.               
Defined Terms 

      Capitalized terms which are used
herein without definition and which are defined in the Credit Agreement shall
have the same meanings herein as in the Credit Agreement.

       

       Section
2.               
Amendment of Section 1.1 of Credit Agreement 

          Section 1.1 of
the Credit Agreement is hereby amended by (i) adding in alphabetical order new
definitions of “ Consolidated
Asset Coverage Ratio ”, “ Eligible Accounts ”, “ Eligible
Inventory ”, “ Gamma ”, “ Gamma Acquisition ”, “ Net
Proceeds ”, and “ Second Amendment ” set forth below and (ii) deleting
the definitions of “ Base Rate ”, “ Business Day ”, “ Consolidated
EBIT ” “ Consolidated EBITDA ”, “ Consolidated Interest Expense ”,
“ Maximum Revolving Credit Amount ”, “ Revolving Credit Termination
Date ” and “ Total Funded Debt ” in their entirety and substituting therefor the
corresponding definitions thereof set forth below:

      “ Base Rate ” means, for any day, a rate per annum equal
to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1% per annum and (c) the
LIBOR Lending Rate for a one month Interest Period on such
day (or if such day is not a Business Day, the immediately preceding Business
Day) plus 1% per annum, provided that, for the
avoidance of doubt, the LIBOR Lending Rate for any day shall be based on the
rate appearing on the Reuters BBA Libor Rates Page 3750 (or on any successor or
substitute page of such page) at approximately 11:00 a.m. London time on such
day.  Any change in the Base Rate due to a change in the Prime Rate, the
Federal Funds Effective Rate or the LIBOR Lending Rate shall be effective from
and including the effective date of such change in the Prime Rate, the Federal
Funds Effective Rate or the LIBOR Lending Rate, respectively.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      “ Business Day ” shall mean any day that
is not a Saturday, Sunday or other day on which commercial banks in New York
City are authorized or required by law to remain closed; provided that (a) when
used in connection with a LIBOR Rate Loan in any currency, the term “Business
Day” shall also exclude any day on which banks are  not open for dealings
in deposits in such currency in the London interbank market and (b) when used in
connection with any LIBOR Rate Loan denominated in Euro, the term “Business Day”
shall also exclude any day on which TARGET is not open for the settlement of
payments in Euro.

       

      “ Consolidated Asset Coverage Ratio ” shall mean the ratio of
(a) the sum of (i) 55% of Eligible Accounts, plus (ii) 25% of Eligible
Inventory, plus (iii) $20,000,000 plus  (iv) cash of the
Loan Parties on deposit with the Lenders or in accounts in Canada subject to
blocked account agreements in favor of the Agent to (b) the amount of Total
Funded Debt, each determined as of the date of calculation thereof.

       

      “ Consolidated EBIT ” shall mean for any period ending on or
after January 31, 2009 an amount equal to (a) Consolidated Net Income
plus (b) all amounts deducted in computing Consolidated Net Income in
respect of (i) Consolidated Interest Expense, (ii) taxes based on or measured by
income, (iii) non-cash charges and other non-cash expenses arising (A) from the
grant of or issuance or repricing of stock, stock options, or other equity-based
awards to the officers, directors and employees of the Loan Parties incurred
during such period, (B) in respect of investments in connection with the
Supplemental Executive Retirement Plan of Gerber incurred during such period and
(C) in accordance with GAAP under Statement of Accounting Standards 142 during
such period; provided that the total amount added under this clause (iii)(C)
during the term of this Agreement shall not exceed $10,000,000, (iv) non-cash
losses (i.e. the difference between book value and sale proceeds) arising from
asset sales, disposals or abandonments occurring after the date of the Second
Amendment incurred during such period and (v) non-recurring fees and expenses
incurred in connection with the Second Amendment, in each case for the period
under review; provided , however , that for each of the four
quarter periods ending January 31, 2009, April 30, 2009, July 31, 2009 and

       

      October
31, 2009, Consolidated EBIT shall be increased by, without duplication, (i) the
non-cash “inventory step up” for such period associated with the inventory of
the Virtek Guarantors and their Subsidiaries purchased by the Borrowers on the
date of the Virtek Acquisition and the inventory of Gamma and its Subsidiaries
purchased by the Borrowers on the date of the Gamma Acquisition, (ii) the
non-cash expense required to be taken by the Parent in the amount of the
difference between the ceiling and the spot rate on its hedging agreement in
connection with the Virtek Acquisition relating to Canadian Dollar fluctuations
not to exceed $750,000 U.S. Dollars in the aggregate and (iii) the consolidated
net income of the Virtek Guarantors and Gamma plus all amounts deducted in
computing consolidated net income in respect of consolidated interest expense
and taxes based on or measured by income for the portion of such four quarter
periods prior to the Virtek Acquisition and the acquisition of Gamma,
respectively minus (c) all amounts included in computing Consolidated Net Income
in respect of non-cash gains (i.e. the excess of sale proceeds over book value)
arising from asset sales, disposals or abandonments occurring after the date of
the Second Amendment and arising during such period.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “ Consolidated EBITDA ” shall mean for any period ending on or
after January 31, 2009 an amount equal to (a) Consolidated Net Income
plus (b) all amounts deducted in computing Consolidated Net Income in
respect of (i) Consolidated Interest Expense, (ii) taxes based on or measured by
income, (iii) consolidated depreciation and amortization expense, (iv) non-cash
charges and other non-cash expenses arising (A) from the grant of or issuance or
repricing of stock, stock options, or other equity-based awards to the officers,
directors and employees of the Loan Parties incurred during such period and (B)
in respect of investments in connection with the Supplemental Executive
Retirement Plan of Gerber incurred during such period and (C) in accordance with
GAAP under Statement of Accounting Standards 142 during such period; provided
that the total amount added under this clause (iv)(C) during the term of this
Agreement shall not exceed $10,000,000, (v) non-cash losses (i.e. the difference
between the book value and sale proceeds) arising from asset sales, disposals or
abandonments occurring after the date of the Second Amendment incurred during
such period and (vi) non-recurring fees and expenses incurred in connection with
the Second Amendment, in each case for the period under review; provided ,
however , that for each of the four quarter periods ending January
31, 2009, April 30, 2009, July 31, 2009 and October 31, 2009, Consolidated
EBITDA shall be increased by, without duplication, (i) the non-cash “inventory
step up” for such period associated with the inventory of the Virtek Guarantors
and their Subsidiaries purchased by the Borrowers on the date of the Virtek
Acquisition and the inventory of Gamma and its Subsidiaries purchased by the
Borrowers on the date of the Gamma Acquisition, (ii) the non-cash expense
required to be taken by the Parent in the amount of the difference between the
ceiling and the spot rate on its hedging agreement in connection with the Virtek
Acquisition relating to Canadian Dollar fluctuations not to exceed $750,000 U.S. Dollars in the aggregate and (iii) the consolidated
net income of the Virtek Guarantors and Gamma plus all amounts deducted in
computing consolidated net income in respect of consolidated interest expense,
taxes based on or measured by income and consolidated depreciation and
amortization expense for the portion of such four quarter periods prior to the
Virtek Acquisition and the acquisition of Gamma, respectively minus (c) all
amounts included in computing Consolidated Net Income in respect of non-cash
gains (i.e. the excess of sale proceeds over book value) arising from asset
sales, disposals or abandonments occurring after the date of the Second
Amendment and arising during such period.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “ Consolidated Interest Expense ” shall
mean, for any period, interest expense for such period of Gerber and its
Subsidiaries, determined on a consolidated basis in accordance with GAAP minus
any amortization of non-recurring fees and expenses incurred in connection with
the Second Amendment to
the extent constituting interest expense under GAAP.  

       

      “ Eligible Accounts ” shall mean all
gross accounts receivable (excluding lease accounts receivable and loan accounts
receivable) of Gerber and its consolidated subsidiaries, less allowance for
doubtful accounts and advance billings, all determined in accordance with
GAAP.

       

      “ Eligible Inventory ” shall mean all
inventory consisting of raw material, work in process, finished goods equipment,
finished goods aftermarket and finished goods service, less all inventory
reserves, all determined in accordance with GAAP.

       

      “ Gamma ” shall mean Gamma Computer Tech
Co., Ltd.

       

      “ Gamma Acquisition ” shall mean the
acquisition of all of the capital stock of Gamma by Gerber Scientific
International Ltd. in September 2008.

       

      “ Maximum Revolving Credit Amount ” shall mean, subject to
Section 2.18, as of any date of determination, the lesser of (a) $100,000,000
and (b) the amount to which the Maximum Revolving Credit Amount may have been
reduced pursuant to Section 2.14 hereof; provided  that if the
obligation of the Lenders to make further Revolving Credit Advances is
terminated upon the occurrence of an Event of Default, the Maximum Revolving
Credit Amount as of any date of determination thereafter shall be deemed to be
$0.  For the purposes of determining the Maximum Revolving Credit Amount
Revolving Credit Advances denominated in an Alternative Currency shall be
converted into the U.S. Dollar equivalent as of the date of such
determination.

       

      “ Net Proceeds ” means, with respect to
any event (a) the cash proceeds received in respect of
such event including any cash received in respect of any non-cash proceeds but
only as and when received, net of (b) the sum of (i) all fees and
out-of-pocket expenses paid by any Borrower or any Subsidiary to third parties
(other than Affiliates) in connection with such event, (ii) in the case of
a sale, transfer or other disposition of an asset (including pursuant to a sale
and leaseback transaction), the amount of all payments required to be made by
any Borrower or any Subsidiary as a result of such event to repay Indebtedness
(other than the Lender Obligations) secured by such asset or otherwise subject
to mandatory prepayment as a result of such event, and (iii) the amount of all
taxes paid (or reasonably estimated to be payable) directly attributable to such
event.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “ Revolving Credit Termination Date ”
shall mean January 31, 2012.

       

      “ Second Amendment ” shall mean that
certain Second Amendment to Credit Agreement by and among the Loan Parties, the
Majority Lenders and the Agent dated as of March 4, 2009.”

       

      “ Total Funded Debt ” of any Person
means, without duplication, Indebtedness under this Agreement (including the
stated amount of all Letters of Credit), in the case of the Borrowers, and all
other Indebtedness for borrowed money of any such Person (including the
Borrowers) (including the stated amount of all letters of credit).

       

       Section
3.               
Amendment of Section 2.18 of the Credit Agreement 

      .  Section 2.18 of the Credit Agreement is hereby amended by
deleting the figure “$25,000,000” and substituting therefor
“50,000,000”.

       

       Section
4.               
Amendment of Article 6 of the Credit Agreement 

      .  Article 6 of the Credit Agreement is hereby amended by adding the
following new Sections 6.11 and 6.12:

       

      “Section 6.11  Monthly Reporting of
Consolidated Asset Coverage Ratio .  As soon as available, and in
any event within twenty (20) days of the end of each month during the period
commencing February 28, 2009 and ending June 30, 2010 , the Borrowers shall
furnish to the Agent and each Lender calculations of the Consolidated Asset
Coverage Ratio, Eligible Accounts and Eligible Inventory of Gerber and its
Subsidiaries, measured on the last day of each month, in reasonable detail,
certified by the Chief Financial Officer of Gerber.

       

      “Section 6.12  Updating of Certain
Schedules .  From time to time, Gerber may by written notice to
the Agent and the Lenders update (a) Schedule 5.2 to describe any new principal
place of business so long as the Loan Parties comply with all applicable
provisions of the Loan Documents in connection with the establishment of a new
principal place of business, (b) Schedule 5.11 to describe any changes in the
issued and outstanding number of shares of capital stock so
long as the Loan Parties comply with all applicable provisions of the Loan
Documents in connection with the issuance of any new shares and (c) Schedule
5.15 to describe any new Pension Plan or amendment to a Pension Plan described
on Schedule 5.15.” 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       Section
5.               
Amendment of Article 7 of the Credit Agreement 

      .  Article 7 of the Credit Agreement is hereby amended by deleting
Sections 7.1, 7.2 and 7.3 in their entirety and substituting therefor the
following:

       

      “Section 7.1    Ratio of
Consolidated EBIT to Consolidated Interest Expense .  For each of
the trailing four-quarter periods ending on the dates set forth below Gerber and
it Subsidiaries shall not permit the ratio of (a) Consolidated EBIT to (b)
Consolidated Interest Expense to be less than the ratio set forth beside such
date in the table below:

       

      	
              April 30, 2009

               

            	
              2.75-to-1

               

            
	
              July 31, 2009

               

            	
              2.25-to-1

               

            
	
              October 31, 2009

               

            	
              2.00-to-1

               

            
	
              January 31, 2010

               

            	
              2.25-to-1

               

            
	
              April 30, 2010

               

            	
              2.75-to-1

               

            
	
              July 31, 2010 and each trailing 

               

              four-quarter period thereafter

               

            	
              3.00-to-1

               

            

       

       

      “Section 7.2    Ratio of Total
Funded Debt to Consolidated EBITDA .  For each of the trailing
four-quarter periods ending on the dates set forth below Gerber and it
Subsidiaries shall not permit the ratio of (a) Total Funded Debt of Gerber and
its Subsidiaries to (b) Consolidated EBITDA to exceed the ratio set forth beside
such date in the table below:

       

      	
              April 30, 2009

               

            	
              3.75-to-1

               

            
	
              July 31, 2009

               

            	
              3.75-to-1

               

            
	
              October 31, 2009

               

            	
              3.75-to-1

               

            
	
              January 31, 2010

               

            	
              3.25-to-1

               

            
	
              April 30, 2010

               

            	
              3.25-to-1

               

            
	
              July 31, 2010 and
      each trailing

               

              four-quarter
      period thereafter

               

               

               

            	
              3.00-to-1

               

            

       

       

       

       

      “Section 7.3    Consolidated
Capital Expenditures .  Gerber and its Subsidiaries shall not
make or incur any Capital Expenditures, including assets financed under
Capitalized Leases, if, after giving effect thereto, the aggregate of all such
expenditures made by Gerber and its Subsidiaries would exceed $10,000,000 in any
fiscal year, commencing with the fiscal year ending April 30, 2009.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       Section
6.               
Amendment of Article 7 of the Credit Agreement 

      .  Article 7 of the Credit Agreement is hereby amended by adding new
Section 7.4 as follows:

       

      “Section 7.4    Consolidated Asset
Coverage Ratio .  For each month during the period commencing
February 28, 2009 and ending June 30, 2010 Gerber and its Subsidiaries shall not
permit the Consolidated Asset Coverage Ratio, measured on the last day of each
month, to be less than 1-to-1.”

       

       Section
7.               
Amendment of Section 9.1 of the Credit Agreement.  Section 9.1
of the Credit Agreement is hereby amended by re-lettering subparagraph (g)
thereof as subparagraph (h) and inserting the following new subparagraph
(g): 

      “(g)      Indemnification, adjustment
of purchase price or similar obligations, in each case, incurred in connection
with the disposition of any business, assets or Equity Interests of the
Borrowers and their Subsidiaries, provided that the maximum aggregate liability
in respect of all such Indebtedness shall at no time exceed the gross proceeds
actually received by the Borrowers and their Subsidiaries in connection with
such disposition.”

       

       Section
8.               
Amendment of Section 9.1 of the Credit Agreement.  Section 9.1
of the Credit Agreement is hereby further amended by adding the following
proviso at the end of subparagraph (h) therof: 

      “; and  provided
further , that the $10,000,000 allowance for other Indebtedness
under this subparagraph (h) shall be reduced by the aggregate amount of any
outstanding loans to customers under Section 9.3(h).”

       

       Section
9.               
Amendment of Section 9.3 of the Credit Agreement.  Section 9.3
of the Credit Agreement is hereby further amended by adding the following new
subparagraph (h) at the end therof: “Loans to customers, in an aggregate amount
not to exceed $2,000,000 at any time outstanding, to finance sales to such
customers.” 

       

       Section
10.           
Amendment of Section 9.7.  Section 9.7 of the Credit Agreement
is hereby amended by adding the following clause at the end of the first
sentence thereof: “except for an accumulated funding deficiency with respect to
all Pension Plans in an aggregate amount not to exceed $2,500,000 at any time
outstanding.” 

       

       Section
11.           
Amendment of Section 9.8 of the Credit Agreement.  Section 9.8
of the Credit Agreement is hereby amended by adding the following sentence to
the end thereof:  “Notwithstanding the foregoing, Kontec GmbH may pay
Distributions in any fiscal year to the  

       Section
12.           
holders of its minority Equity Interests in an amount not to exceed
the product of such minority holder’s ownership percentage in Kontech GmbH and
Kontec’s consolidated net income relating to such fiscal year and provided that
such distribution is made at the same time that corresponding Distributions are
made to FOBA Technology & Services GmbH.” 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       Section
13.           
Amendment of Section 9.10.  Section 9.10 of the Credit
Agreement is hereby amended adding the following clause at the end of the first
sentence thereof: “and (c) may make the Distributions permitted under Section
9.8.” 

       

       Section
14.           
Amendment of Section 9.11 of the Credit Agreement.  Section
9.11 of the Credit Agreement is hereby amended by deleting the parenthetical at
the end thereof and substituting therefor the following: 

      “(except for (i) customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary pending such sale
and (ii) customary restrictions against liens on assets leased, on assets
subject to purchase money financing permitted hereunder and on assets subject to
Liens securing Indebtedness permitted under Section 9.2(h)).”

       

       Section 14.      Amendment of
Certain Schedules 

      . 
The Credit Agreement is hereby amended by deleting  Schedules 1 , 2 and 15.1 in their
entirety and substituting therefor the Schedules 1 , 2 and
15.1 attached hereto as Exhibit 1 .

      Section
15.       Amendment of Schedule
5.16 .  The Credit Agreement is hereby amended by supplementing
Schedule 5.16 by adding thereto the Indebtedness set forth on Exhibit
2  hereto.

       

      Section 16.       Consent to Designated Asset Sales .  Subject to the
conditions set forth in Section 17 below the Agent and the Lenders hereby
consent to the Designated Asset Sales (as defined on Exhibit 3 attached
hereto) and waive the provisions of Sections 9.4 and 9.6 of the Credit Agreement
as they apply to the Designated Asset Sales, provided, however, that (a) no
Default shall exist at the time of any Designated Asset Sale, (b) the
consideration received for each Designated Asset Sale shall consist solely of
cash (together with any customary “earn out” obligations), (c) the Net Proceeds
of each Designated Asset Sale shall be applied within four days of receipt to
repay the Revolving Credit Advances and (d) in the case of the Tolland Sale (as
defined on Exhibit 3  hereto) the purchase price must be in a
minimum amount sufficient to repay in full all outstanding obligations with
respect to the outstanding industrial revenue bonds associated with the Tolland,
Connecticut facility and such bonds shall be repaid in full and the Letter of
Credit supporting such bonds terminated promptly following such sale. 

       

      Section
17.      Conditions
Precedent .  The effectiveness of this Amendment is subject to
the truth and accuracy of the representations and warranties set forth in
Section 18 below and shall become effective upon receipt by the Agent on the
date hereof of:

       

       

       

      (a)               
Counterparts of this Amendment duly
executed by each of the Loan Parties, the Agent and the Majority
Lenders.

      (b)              
The opinion of Dechert LLP, United
States counsel to the Loan Parties in form and substance acceptable to the
Agent. 

      (c)               
Copies of the resolutions of the Board
of Directors or equivalent body of each of the Loan Parties authorizing the
execution, delivery and performance of this Amendment and the other Loan
Documents to which such Loan Party is a party, certified by the Secretary or an
Assistant Secretary (or Clerk or Assistant Clerk) of such Loan Party (which
certificate shall state that such resolutions are in full force and
effect).

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (d)              
Certificates of legal existence and
corporate good standing for the Loan Parties of recent date issued by the
appropriate Connecticut and Massachusetts  governmental
authorities.

      (e)               
Payment to the Agent for the account of
the Lenders who have executed this Second Amendment on or before the date hereof
of the Second Amendment Fee (as defined on Exhibit 4 hereto).

      (f)               
Such other documents, certificates and
opinions as the Agent or the Lenders may reasonably request which have been
notified to the Borrowers in writing prior to the date
hereof.

      Section 18.     
Representations and
Warranties 

       

      .  The Loan Parties, jointly
and severally, represent and warrant, on and as of the date of this Amendment,
that:

       

      (a)               
No Default or Event of Default is
outstanding both before and after giving effect to this Second
Amendment.

      (b)              
The representations and warranties of
the Loan Parties contained in the Credit Agreement are true and accurate on and
as of the date of this Amendment, except (i) that the references in Article 5 to
the 2007 Financial Statements (except in Section 5.12) shall be deemed to refer
to the most recent audited consolidated financial statements of Gerber and its
Subsidiaries furnished to the Agent and (ii) to the extent that such
representations and warranties relate solely to an earlier date (in which case
such representations and warranties were true and accurate as of such earlier
date).

      (c)               
Since April 30, 2008, there have been
no events, acts, conditions or occurrences of whatever nature, singly or in the
aggregate, which have had, or could reasonably be expected to have, a Material
Adverse Effect.

      Section 19.     
Survival . 
Each of the foregoing representations and warranties shall be made at and as of
the date of this Amendment.  Each of the foregoing representations and
warranties shall constitute a representation and warranty of the Loan Parties
under the Credit Agreement, and it shall be an Event of Default if any such
representation and warranty shall prove to have been incorrect or false in any
material respect at the time when made or deemed to have been made.  Each
of the foregoing representations and warranties shall survive and not be waived
by the execution and delivery of this Amendment or any investigation by the
Agent or any Lender.

       

      Section 20.       Ratification
of Credit Agreement and Loan Documents 

       

      .  Except as expressly amended herein, all terms, covenants and
conditions of the Credit Agreement and the other Loan Documents shall remain in
full force and effect, and the parties hereto do expressly ratify and confirm
the Credit Agreement and the other Loan Documents.  All future references
to the Credit Agreement shall be deemed to refer to the Credit Agreement as
modified hereby.

       

      Section 21.       Loan
Document 

       

      .  This Amendment shall be deemed to be a Loan Document and a breach
of any covenant contained herein shall constitute an Event of Default under the
Credit Agreement.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      Section 22.      Miscellaneous Provisions .

       

      (a)               
 Counterparts and
Expenses .  This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original, and all counterparts,
taken together, shall constitute but one and the same document.  The Loan
Parties, jointly and severally, agree to pay on demand all the Agent’s
reasonable expenses in preparing, executing and delivering this Amendment, and
all related instruments and documents, including, without limitation, the
reasonable fees and out-of-pocket expenses of Agent’s special counsel, Goodwin
Procter LLP.  

      (b)              
 Governing
Law .  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF
MASSACHUSETTS.

       

       

       

       

       

       

      [Signatures on Following Page]

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

    

    

    IN WITNESS WHEREOF, the
Borrowers, the Guarantors, the Agent and the Lenders have caused this Second
Amendment to be executed by their duly authorized officers as of the date set
forth above.

     

                                    THE
BORROWERS:

                                GERBER SCIENTIFIC,
INC.

     

                                     By:   /s/ William V. Grickis, Jr. 
                                Name:  William
V. Grickis, Jr.
                                Title:  SVP,
General Counsel and Secretary

     

                                    GERBER SCIENTIFIC
INTERNATIONAL, INC.

     

                                     By:   /s/ William V. Grickis, Jr. 
                                Name:  William
V. Grickis, Jr.
                                 Title:  Director and
Secretary

     

    
       

    

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

                                       GUARANTORS:

     

                                         GERBER COBURN OPTICAL
INTERNATIONAL, INC.

     

                                    By:   /s/ William V. Grickis,
Jr. 
                                Name:  William
V. Grickis, Jr.
                                Title: 
Secretary

     

                                    GERBER SCIENTIFIC UK,
LTD.

     

                                    By: 
 /s/ Robert
Jackson 
                                Name:  Robert
Jackson
                                Title: 
Secretary

     

                                    SPANDEX
LIMITED

     

                                    By: 
 /s/ Robert
Jackson 
                                Name:  Robert
Jackson
                                Title: 
Director

     

                                    GERBER SCIENTIFIC
INTERNATIONAL LTD.

     

                                    By:   /s/ William V. Grickis,
Jr. 
                                Name:  William
V. Grickis, Jr.
                                Title:  VP,
Director and Chairman 

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

                                    VIRTEK VISION
INTERNATIONAL INC.

     

                                    By:   /s/ William V. Grickis,
Jr. 
                                Name:  William
V. Grickis, Jr.
                                Title:  Director
and Secretary

     

                                    VIRTEK EUROPEAN
HOLDINGS INC.

     

                                     By:   /s/ William V. Grickis, Jr. 
                                Name:  William
V. Grickis, Jr.
                                 Title:  Secretary

     

                                    VIRTEK LASER SYSTEMS
NORTH AMERICA, INC.

     

                                    By:   /s/ William V. Grickis,
Jr. 
                                Name:  William
V. Grickis, Jr.
                                Title:  Director
and Secretary 

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

                                    THE
AGENT:

                                RBS CITIZENS, N.A.,
as Agent

     

                                    By: 
 /s/ Thomas F.
McNamara 
                                Name:  Thomas F.
McNamara
                                Title:  Senior
Vice President 

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

                                     THE LENDERS:

                                 RBS CITIZENS, N.A.

     

                                     By:   /s/ Thomas F. McNamara 
                                 Name:  Thomas F. McNamara
                                Title:  Senior
Vice President 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

                                    SOVEREIGN
BANK

     

                                    By: 
 /s/ Jay L.
Massiro 
                                Name:  Jay L.
Massiro
                                Title:  Senior
Vice President

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

                                      BANK OF AMERICA,
N.A.

     

                                      By:   /s/ Christopher T. Phelan 
                                  Name:  Christopher T.
Phelan
                                  Title:  Senior Vice
President 

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

                                HSBC BANK USA,
NATIONAL ASSOCIATION

     

                                By: 
 /s/ David A.
Carroll 
                            Name:  David A.
Carroll
                            Title:  Vice
President 

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

                                  JPMORGAN CHASE BANK,
N.A.

     

                                  By:   /s/ Dustin Knoop 
                              Name:  Dustin Knoop
                              Title: 
Associate

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Signature Page to Second Amendment to Credit Agreement

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

     

     

                                     MERRILL LYNCH CAPITAL
CORPORATION

     

                                    By: 
 /s/ John Swadba 
                                Name:  John
Swadba
                                Title:  Vice
President 

     

     

     

     

     

     

     

     

     

     

     

                                                   Signature Page to Second
Amendment to Credit Agreement

     

    
      
        
        

      

      
        20employmentagreecs.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EMPLOYMENT
AGREEMENT

    

    This
Agreement (the “Agreement”), dated as of July 1, 2009 (the
“Effective Date”) by and between DOR BioPharma, Inc., a Delaware corporation
having a place of business at 29 Emmons Drive, Suite C-10, Princeton, NJ
08540  (the “Corporation”), and Christopher P. Schnittker, CPA, an
individual (the “Employee”).

    

    W I T N E
S S E T H:

    

    WHEREAS,
the Corporation desires to employ Employee as Vice President of Administration,
Controller and Principal Accounting Officer, and the Employee desires to be
employed by the Corporation as Vice President of Administration, Controller and
Principal Accounting Officer, all pursuant to the terms and conditions
hereinafter set forth;

    

    NOW,
THEREFORE, in consideration of the foregoing and the mutual promises and
covenants herein contained, it is agreed as follows:

    

    
      	
              1.

            	
              EMPLOYMENT
      DUTIES

            

    

     

    The
Corporation engages and employs Employee, and Employee hereby accepts engagement
and employment, as Vice President of Administration, Controller and Principal
Accounting Officer reporting to the Chief Financial Officer of the Corporation,
and shall perform high quality, full-time service to the Corporation to direct,
supervise and have responsibility for the financial and administrative
operations of the Corporation, including, but not limited to: (i) recording,
performing and overseeing the day to day financial transactions of the
Corporation (ii) managing the financial accounts of the Corporation; (iii)
assisting in evaluating, negotiating, structuring and implementing business
transactions with the Corporation’s customers and suppliers, and (iv)
coordinating all human resource related activities for the Corporation and such
other activities as may be reasonably requested by the Chief Financial Officer.
Employee acknowledges and understands that his employment may entail travel on
behalf of the Corporation.

     

    
      	
              2.

            	
              EMPLOYMENT
      TERM

            

    

    

    Employee’s employment hereunder shall
be for a period of two (2) years, unless extended by mutual agreement of the
parties (the “Term”).

    

    
      	
              3.

            	
              COMPENSATION

            

    

    

    As compensation for the performance of
Employee’s duties on behalf of the Corporation, Employee shall be compensated as
follows:

    

    
      	
                          (a)

            	
              (i) The Corporation
      shall pay Employee an annual base salary (“Base Salary”) of one hundred
      and seventy thousand dollars ($170,000) per annum, payable in accordance
      with the usual payroll period of the Corporation.  During the
      three (3) month period from July 1, 2009 through September 30, 2009,
      Corporation shall pay Employee at a rate of two-thirds (2/3) of the annual
      base salary (or $113,333 per
annum).

            

    

    

    (ii)        The
Corporation shall pay employee a targeted annual bonus of twenty percent (20%)
of base salary, payable at the end of each calendar year in prorated amount if
necessary.  Such bonus may be increased at the recommendation of the
CFO and by the approval of the Board of Directors. Bonus will be prorated for
2009.

    

    (b) Contingent
upon Employee’s acceptance of this Agreement, the Corporation will grant to
Employee Options (“Options”), priced on the date hereof,  to purchase
seven hundred and fifty thousand (750,000) shares of DOR Common
Stock.  One hundred and eighty-seven thousand (187,000) options will
vest immediately and the remainder will vest on each three (3) month anniversary
of the grant date of this form at a rate of forty-six thousand, eight hundred
and seventy-five (46,875) options per quarter over a period of three (3) years
while Employee continues to be employed by Corporation.  The exercise
price of such Options shall be equal to the market price of DOR common stock as
of the market close on the Effective Date of this Agreement.  The
Options will be granted pursuant to the Corporation’s Employee Stock Option Plan
and the Corporation’s standard Stock Option Agreement.  All vested
options shall be exercisable for a period of one (1) year following termination,
subject to extension in the discretion of the Stock Option Plan
Administrator.  Upon a change in control due to merger or acquisition,
all Employee options shall become fully vested, and remain exercisable for a
period the lesser of (i) of three (3) years after the merger or acquisition or
(ii) the remainder of their natural term.  In the event of death or
disability of Employee during Term, all unvested options shall immediately vest
and remain exercisable for the rest of their natural term and become property of
Employee’s estate.

    

    (c)      The
Corporation shall withhold all applicable federal, state and local taxes; social
security; workers’ compensation contributions; and such other amounts as may be
required by law or agreed upon by the parties with respect to the compensation
payable to the Employee pursuant to section 3(a) hereof.

    

    (d)     The
Corporation shall reimburse Employee for all normal, usual and necessary
expenses incurred by Employee in furtherance of the business and affairs of the
Corporation, including reasonable travel and entertainment, against receipt by
the Corporation of appropriate vouchers or other proof of Employee’s
expenditures and otherwise in accordance with the policy of the
Corporation.

    

    (e)         During
the Term, Employee shall be entitled to a maximum of four (4) weeks paid
vacation per annum.  Unused vacation may be carried over to successive
years upon approval of the Chief Executive Officer.  Vacation time
will be prorated for 2009.

    

    (f)         The
Corporation shall make available to Employee and his dependents such medical,
disability, life insurance and such other benefits as the Corporation makes
available to its other senior officers.  Employee may elect to have
the Corporation reimburse Employee for payments made to his own family medical
plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              4.

            	
              REPRESENTATIONS AND
      WARRANTIES BY EMPLOYEE AND
CORPORATION

            

    

    

    (a)         Employee
hereby represents and warrants to the Corporation as follows:

    

    (i)         Neither
the execution and delivery of this Agreement nor the performance by Employee of
his duties and other obligations hereunder violate or will violate any statute,
law, determination or award, or conflict with or constitute a default under
(whether immediately, upon the giving of notice or lapse of time or both) any
prior employment agreement, contract, or other instrument to which Employee is a
party or by which he is bound.

    

    (ii)         Employee
has the full right, power and legal capacity to enter and deliver this Agreement
and to perform his duties and other obligations hereunder. This Agreement
constitutes the legal, valid and binding obligation of Employee enforceable
against him in accordance with its terms. No approvals or consents of any
persons or entities are required for Employee to execute and deliver this
Agreement or perform his duties and other obligations hereunder.

    

    (b)         The
Corporation hereby represents and warrants to Employee as follows:

    

    (i)         The
Corporation is duly organized, validly existing and in good standing under the
laws of the State of Delaware, with all requisite corporate power and authority
to own its properties and conduct its business in the manner presently
contemplated.

    

    (ii)         The
Corporation has full power and authority to enter into this Agreement and to
incur and perform its obligations hereunder. This Agreement constitutes the
legal, valid and binding obligation of the Corporation enforceable against it in
accordance with its terms. Except as expressly set forth herein, no approvals or
consents of any persons or entities are required for Corporation to execute and
deliver this Agreement or perform its duties and other obligations
hereunder.

    

              
(iii)   The execution, delivery and performance by the
Corporation of this Agreement does not conflict with or result in a breach or
violation of or constitute a default under (whether immediately, upon the giving
of notice or lapse of time or both) the certificate of incorporation or by-laws
of the Corporation, or any agreement or instrument to which the Corporation is a
party or by which the Corporation or any of its properties may be bound or
affected.

    

    5.          NON-COMPETITION

    

    (a)           Employee
understands and recognizes that his services to the Corporation are special and
unique and agrees that, during the term of this Agreement and for a period of
two (2) years following the termination of the Employee’s employment with the
Corporation (or one (1) year in the event that the Employee is terminated within
one (1) year of the Effective Date), employee shall not in any manner, directly
or indirectly, on behalf of himself or any person, firm, partnership, joint
venture, corporation or other business entity (“Person”), enter into or engage
in any business competitive with the Corporation’s business or research
activities, either as an individual for his own account, or as a partner, joint
venturer, executive, agent, consultant, salesperson, officer, director of a
Person operating or intending to operate in the area of the use of any of the
compounds owned or licensed by the Corporation during the time of his
employ.

    

    (b)           During the Term and for two (2)
years (or one (1) year in the event that the Employee is terminated within one
(1) year of the Effective Date) following the termination of the Employee’s
employment with the Corporation, Employee shall not, directly or indirectly,
without the prior written consent of the Corporation:

    

    (i)      interfere
with, disrupt or attempt to disrupt any past, present or prospective
relationship, contractual or otherwise,,
between the Corporation and any of its licensors, licensees, clients,
customers, suppliers, employees, consultants or other related parties, or
solicit or induce for hire any of the employees or agents of the Corporation, or
any such individual who in the past was employed or retained by the Corporation
within six (6) months of the termination of said individual’s employment or
retention by the Corporation; or

    

    (ii)            solicit
or accept employment or be retained by any party who, at any time during the
term of this Agreement, was a customer or supplier of the Corporation or any of
its affiliates, or any licensor or licensee thereof where his position will be
related to the business of the Corporation.

    

               (c)                  In
the event that Employee breaches any provisions of this Section 5 or
there is a threatened
breach,                  then,
in addition to any other rights which the Corporation may have, the Corporation
shall be entitled without the posting of a bond or other security to injunctive
relief to enforce the restrictions contained herein.

    

    
      	
              6.

            	
              CONFIDENTIAL
      INFORMATION

            

    

    

    (a)         Employee
agrees that during the course of his employment or at any time after
termination, he will not disclose or make accessible to any other person, the
Corporation’s or any of its subsidiaries’ or affiliates’, (collectively the
“Affiliates”) products, services and technology, both current and under
development, promotion and marketing programs, business plans, lists, customer
lists, product or licensing opportunities, investor lists, trade secrets and
other confidential and proprietary business information of the Corporation or
the Affiliates. Employee agrees: (i) not to use any such information for himself
or others; and (ii) not to take any such material or reproductions thereof in
any form or media from the Corporation’s facilities at any time during his
employment by the Corporation, except as required in Employee’s duties to the
Corporation. Employee agrees immediately to return all such material and
reproductions thereof in his possession to the Corporation upon request and in
any event upon termination of employment.

    

    (b)         Except
with prior written authorization by the Corporation, Employee agrees not to
disclose or publish any of the confidential, technical or business information
or material of the Corporation, to any suppliers, licensors, licensees,
customers, partners or other third parties to whom the Corporation owes an
obligation of confidence, at any time during or after his employment with the
Corporation.

    

    

    (c)         Employee
hereby assigns to the Corporation all right, title and interest he may have or
acquire in all inventions (including patent rights) developed by Employee during
the term of this Agreement (hereinafter the “Inventions”) and agrees that all
Inventions shall be the sole property of the Corporation and its assigns, and
the Corporation and its assigns shall be the sole owner of all patents,
copyrights and other rights in connection therewith. Employee further agrees to
assist the Corporation in every proper way (but at the Corporation’s expense) to
obtain and from time to time enforce patents, copyrights or other rights on said
Inventions in any and all countries. Employee hereby irrevocably designates
counsel to the Corporation as Employee’s agent and attorney-in-fact to do all
lawful acts necessary to apply for and obtain patents and copyrights and to
enforce the Corporation’s rights under this Section. This Section shall survive
the termination of this Agreement for any reason.

    

    (d)         The
Employee recognizes that in the course of his duties hereunder, he may receive
from Affiliates or others information which may be considered “material,
nonpublic information” concerning a public company that is subject to the
reporting requirements of the Securities and Exchange Act of 1934, as amended.
The Employee agrees not to:

    

    (i)          Buy
or sell any security, option, bond or warrant while in possession of relevant
material, nonpublic information received from Affiliates or others in connection
herewith;

    

    (ii)       Provide
Affiliates with information with respect to any public company that may be
considered material, nonpublic information; or

    

    (iii)       Provide
any person with material, nonpublic information, received from Affiliates,
including any relative, associate, or other individual who intends to, or may
otherwise directly or indirectly benefit from, such information.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              TERMINATION

            

    

    

    (a)         The
Employee’s employment hereunder shall begin on the Effective Date and shall
continue for the period set forth in Section 2 hereof unless renewed by mutual
agreement or sooner terminated upon the first to occur of the following
events:

    

    (i)         The
death or disability of the Employee;

    

    (ii)         One
year following the merger or consolidation in which either more than fifty
percent of the voting power of the Corporation is transferred or the Corporation
is not the surviving entity, or sale or other disposition of all or
substantially all the assets of the Corporation;

    

    (iii)    Termination
by the Board of Directors of the Corporation for Just
Cause.   Any of the following actions by the Employee shall
constitute “Just Cause”:

    

    (A)          Material
breach by the Employee of Section 1, Section 5 or Section 6 of this
Agreement;

    

    (B)          Material
breach by the Employee of any provision of this Agreement other than Section 5
or Section 6 which is not cured by the Employee within thirty (30) days of
notice thereof from the Corporation;

    

    (C)          Any
action by the Employee to intentionally harm the Corporation or any action of
gross negligence by the Employee; or

    

    (D)          The
conviction of the Employee of a felony.

    

    (iv)    Termination by the Employee for Just
Cause.   Any of the following actions or omissions by the
Corporation shall constitute Just Cause, subject to the notice and cure
requirements below, provided that the Employee terminates employment with the
Corporation within one year following the initial existence of one or more of
the following conditions, without the consent of the Employee:

    

    
      	
              (A)  

            	
              Material
      diminution of base salary;

            

    

    

    
      	
              (B)  

            	
              Material
      breach by the Corporation of any provision of this Agreement which is not
      cured by the Corporation within thirty (30) days of notice thereof from
      the Employee.

            

    

    

    The
Employee must provide notice to the Corporation of the existence of the “just
cause” condition not later than ninety (90) days of its initial existence and
the Corporation shall have thirty (30) days from the date of the Employee notice
to cure the condition giving rise to such notice.

    

    (b)        Upon
termination by the Corporation pursuant to either subparagraph (i) or (iii) of
paragraph (a) above or by Employee other than pursuant to subparagraph (iv) of
paragraph (a) above, the Employee (or his estate in the event of termination
pursuant to subparagraph (i)) shall be entitled to receive the Base Salary plus
Bonus accrued but unpaid as of the date of termination including any vacation
time accrued but not taken.

    

    (c)          Upon
termination by the Corporation without Just Cause or pursuant to subparagraphs
(i), (ii) or (iv) of paragraph (a) above, then the term of the Agreement as set
forth in Section 2 hereof shall be deemed to have been terminated as of such
date and (i) the Corporation shall pay to the Employee (or his estate in the
event of termination pursuant to subparagraph (i)), six (6) months salary,
(subject to set-off) and any accrued Bonuses and any vacation accrued but not
taken, payable upon the normal payroll periods of the Corporation with such
payments to begin on the first payroll period following the Employee’s
termination of employment (“Severance Period”).  Notwithstanding
anything herein to the contrary, each payment made during the Severance Period
shall be deemed to be a separate payment within the meaning of Section 409A of
the Code and the regulations thereunder.  Health benefits and life
insurance will also be maintained for Employee (or his dependents in the event
of termination pursuant to subparagraph (i)) by Corporation during severance
period.  No unvested options shall vest beyond the termination date,
except where previously noted in Section 3 (b) or at the discretion of the Stock
Option Plan Administrator.  

    

    (d)           Notwithstanding
anything to the contrary in this Agreement, if the Employee is determined by the
Corporation to be a “specified employee” within the meaning of Code Section
409A(a)(2)(B)(i) at the time of the Employee’s separation from service with the
Corporation and if any payment or benefit to which the Employee become entitled
to under this Agreement would be considered deferred compensation subject to
interest and additional tax imposed pursuant to Section 409A(a) of the Code
as a result of the application of Section 409A(a)(2)(B)(i) of the Code, no
such payment or benefit payable or provided to the Employee prior to the earlier
of (i) the expiration of the six (6) month period following the date of the
Employee’s “separation from service” (as such term is defined by Code Section
409A and the regulations promulgated thereunder), or (ii) the date of the
Employee’s death, but only to the extent such delayed commencement is otherwise
required in order to avoid a prohibited distribution under Code
Section 409A(a)(2).   The payments and benefits to which the
Employee would otherwise be entitled during the first six (6) months following
separation from service shall be accumulated and paid or provided, as
applicable, in a lump sum, on the date that is six (6) months and one day
following the Employee’s separation from service (or if such date does not fall
on a business day of the Corporation, the next following business day) and any
remaining payments or benefits will be paid in accordance with the normal
payment dates specified for them herein.

     

    8.          NOTICES

    

    Any
notice or other communication under this Agreement shall be in writing and shall
be deemed to have been given: when delivered personally against receipt
therefor; one (1) day after being sent by Federal Express or similar overnight
delivery; or three (3) days after being mailed registered or certified mail,
postage prepaid, return receipt requested, to either party at the address set
forth above, or to such other address as such party shall give by notice
hereunder to the other party.

    

    9.          SEVERABILITY OF PROVISIONS

    

    If any
provision of this Agreement shall be declared by a court of competent
jurisdiction to be invalid, illegal or incapable of being enforced in whole or
in part, such provision shall be interpreted so as to remain enforceable to the
maximum extent permissible consistent with applicable law and the remaining
conditions and provisions or portions thereof shall nevertheless remain in full
force and effect and enforceable to the extent they are valid, legal and
enforceable, and no provision shall be deemed dependent upon any other covenant
or provision unless so expressed herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.           ENTIRE AGREEMENT
MODIFICATION

    

    This
Agreement contains the entire agreement of the parties relating to the subject
matter hereof, and the parties hereto have made no agreements, representations
or warranties relating to the subject matter of this Agreement which are not set
forth herein. No modification of this Agreement shall be valid unless made in
writing and signed by the parties hereto.

    

    11.          BINDING
EFFECT

    

    The
rights, benefits, duties and obligations under this Agreement shall inure to,
and be binding upon, the Corporation, its successors and assigns, and upon
Employee and his legal representatives. This Agreement constitutes a personal
service agreement, and the performance of Employee’s obligations hereunder may
not be transferred or assigned by Employee.

    

    12.          NON-WAIVER

    

    The
failure of either party to insist upon the strict performance of any of the
terms, conditions and provisions of this Agreement shall not be construed as a
waiver or relinquishment of future compliance therewith, and said terms,
conditions and provisions shall remain in full force and effect. No waiver of
any term or condition of this Agreement on the part of either party shall be
effective for any purpose whatsoever unless such waiver is in writing and signed
by such party.

    

    13.          GOVERNING
LAW

    

    This
Agreement shall be governed by, and construed and interpreted in accordance
with, the laws of the State of New Jersey without regard to principles of
conflict of laws.

    

    14.          HEADINGS

    

    The
headings of paragraphs are inserted for convenience and shall not affect any
interpretation of this Agreement.

    

    

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

    

    DOR
BIOPHARMA, INC.

    

    

    By:/s/ Christopher J.
Schaber

    Christopher
J. Schaber, PhD

    Chief
Executive Officer

    

    

    EMPLOYEE:

    

    

    By: /s/Christopher P. Schnittker

    Christopher
P. Schnittker, CPA

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]