Document:

Exhibit
10.38

 

SENESCO
TECHNOLOGIES, INC.

 

INDEMNIFICATION
AGREEMENT

 

This Indemnification
Agreement (“Agreement”) is made as of October 8, 2003 by and between
Senesco Technologies, Inc., a Delaware corporation (the “Company”), and John N.
Braca (“Indemnitee”).

 

WHEREAS,
Indemnitee is a director of the Company and performs valuable services in such
capacities for the Company;

 

WHEREAS, the
Company and Indemnitee recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and
fiduciaries to expensive litigation risks at the same time as the availability
and coverage of liability insurance may be limited;

 

WHEREAS, the
Company and Indemnitee further recognize the difficulty in obtaining liability
insurance for its directors, officers, employees, agents and fiduciaries, the
significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance;

 

WHEREAS,
Indemnitee does not regard the current protection available as adequate under
the present circumstances, and the Indemnitee and other directors, officers,
employees, agents and fiduciaries of the Company may not be willing to continue
to serve in such capacities without additional protection; and

 

WHEREAS, the Company
desires to attract and retain the services of highly qualified individuals,
such as Indemnitee, to serve the Company and, in part, in order to induce
Indemnitee to continue to provide services to the Company as a director, the
Company wishes to provide for the indemnification and advancing of expenses to
Indemnitee to the maximum extent permitted by law.

 

NOW,
THEREFORE, the Company and Indemnitee hereby agree as
follows:

 

1.             Indemnification.

 

(a)           Indemnification of
Expenses.  The Company shall indemnify
Indemnitee to the fullest extent permitted by law if Indemnitee was or is or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, any threatened, pending or
completed action, suit, proceeding or alternative dispute resolution mechanism,
or any hearing, inquiry or investigation that Indemnitee in good faith believes
might lead to the institution of any such action, suit, proceeding or
alternative dispute resolution mechanism, whether civil, criminal,
administrative, investigative or other (hereinafter a “Claim”)

 

 

by reason of (or arising
in part out of) any event or occurrence related to the fact that Indemnitee is
or was a director, officer, employee, agent or fiduciary of the Company, or any
subsidiary of the Company, or is or was serving at the request of the Company
as a director, officer, employee, agent or fiduciary of another corporation,
partnership, joint venture, trust or other enterprise, or by reason of any action
or inaction on the part of Indemnitee while serving in such capacity
(hereinafter an “Indemnifiable Event”) against any and all expenses (including
attorneys’ fees and all other costs, expenses and obligations incurred in
connection with investigating, defending, being a witness in or participating
in (including on appeal), or preparing to defend, be a witness in or
participate in, any such action, suit, proceeding, alternative dispute
resolution mechanism, hearing, inquiry or investigation), judgments, fines,
penalties and amounts paid in settlement (if such settlement is approved in
advance by the Company, which approval shall not be unreasonably withheld) of
such Claim and any federal, state, local or foreign taxes imposed on the
Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement (collectively, hereinafter “Expenses”), including all interest,
assessments and other charges paid or payable in connection with or in respect
of such Expenses.  Such payment of
Expenses shall be made by the Company as soon as practicable but in any event
no later than thirty (30) days after written demand by Indemnitee therefor is
presented to the Company.

 

(b)           Reviewing Party.  Notwithstanding the foregoing, (i) the
obligations of the Company under Section l(a) shall be subject to the
condition that the Reviewing Party (as described in Section 10(e) hereof)
shall not have determined (in a written opinion, in any case in which the
Independent Legal Counsel referred to in Section 1(c) hereof is involved)
that Indemnitee would not be permitted to be indemnified under applicable law,
and (ii) the obligation of the Company to make an advance payment of Expenses
to Indemnitee pursuant to Section 2(a) (an “Expense Advance”) shall be
subject to the condition that, if, when and to the extent that the Reviewing
Party determines that Indemnitee would not be permitted to be so indemnified
under applicable law, the Company shall be entitled to be reimbursed by
Indemnitee (who hereby agrees to reimburse the Company) for all such amounts
theretofore paid; provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any Expense
Advance until a final judicial determination is made with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitee’s obligation to reimburse the Company for any Expense Advance shall
be unsecured and no interest shall be charged thereon.  If there has not been a Change in Control (as
defined in Section 10(c) hereof), the Reviewing Party shall be selected by
the Board of Directors, and if there has been such a Change in Control (other
than a Change in Control which has been approved by a majority of the Company’s
Board of Directors who were directors immediately prior to such Change in
Control), the Reviewing Party shall be the Independent Legal Counsel referred
to in Section l(c) hereof.  If there
has been no determination by the Reviewing Party or if the Reviewing Party
determines that Indemnitee substantively would not be permitted to be
indemnified in whole or in part under applicable law, Indemnitee shall have the
right to commence litigation seeking an

 

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initial determination by
the court or challenging any such determination by the Reviewing Party or any
aspect thereof, including the legal or factual bases therefor, and the Company
hereby consents to service of process and to appear in any such
proceeding.  Any determination by the
Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

 

(c)           Change in Control.  The Company agrees that if there is a Change
in Control of the Company (other than a Change in Control which has been
approved by a majority of the Company’s Board of Directors who were directors
immediately prior to such Change in Control) then with respect to all matters
thereafter arising concerning the rights of Indemnitee to payments of Expenses
and Expense Advances under this Agreement or any other agreement or under the
Company’s Certificate of Incorporation or By-laws as now or hereafter in
effect, the Company shall seek legal advice only from Independent Legal Counsel
(as defined in Section 10(d) hereof) selected by Indemnitee and approved
by the Company (which approval shall not be unreasonably withheld).  Such counsel, among other things, shall
render its written opinion to the Company and Indemnitee as to whether and to
what extent Indemnitee would be permitted to be indemnified under applicable
law.  The Company agrees to pay the
reasonable fees of the Independent Legal Counsel referred to above and to fully
indemnify such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this
Agreement or its engagement pursuant hereto.

 

(d)           Mandatory Payment of
Expenses.  Notwithstanding any other
provision of this Agreement other than Section 9 hereof, to the extent that
Indemnitee has been successful on the merits or otherwise, including, without
limitation, the dismissal of an action without prejudice, in defense of any
action, suit, proceeding, inquiry or investigation referred to in
Section (1)(a) hereof or in the defense of any claim, issue or matter
therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

 

2.             Expenses;
Indemnification Procedure.

 

(a)           Advancement of
Expenses.  The Company shall advance
all Expenses incurred by Indemnitee.  The
advances to be made hereunder shall be paid by the Company to Indemnitee as
soon as practicable but in any event no later than five (5) days after written
demand by Indemnitee therefor to the Company.

 

(b)           Notice/Cooperation
by Indemnitee.  Indemnitee shall, as
a condition precedent to Indemnitee’s right to be indemnified under this
Agreement, give the Company notice in writing as soon as practicable of any
Claim made against Indemnitee for which indemnification will or could be sought
under this Agreement.  Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the
address shown on the signature page of this Agreement (or such other address as
the Company shall designate in writing to Indemnitee).  In addition, Indemnitee shall give the
Company such information and cooperation as it may reasonably require and as
shall be within Indemnitee’s power.

 

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(c)           No Presumptions;
Burden of Proof.  For purposes of
this Agreement, the termination of any claim, action, suit or proceeding, by
judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo  contendere, or its equivalent,
shall not create a presumption that Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.  In addition, neither the failure of the
Reviewing Party to have made a determination as to whether Indemnitee has met
any particular standard of conduct or had any particular belief, nor an actual
determination by the Reviewing Party that Indemnitee has not met such standard
of conduct or did not have such belief, prior to the commencement of legal
proceedings by Indemnitee to secure a judicial determination that Indemnitee
should be indemnified under applicable law, shall be a defense to Indemnitee’s
claim or create a presumption that Indemnitee has not met any particular standard
of conduct or did not have any particular belief.  In connection with any determination by the
Reviewing Party or otherwise as to whether the Indemnitee is entitled to be
indemnified hereunder, the burden of proof shall be on the Company to establish
that Indemnitee is not so entitled.

 

(d)           Notice to Insurers.  If, at the time of the receipt by the Company
of a notice of a Claim pursuant to Section 2(b) hereof, the Company has
liability insurance in effect which may cover such Claim, the Company shall give
prompt notice of the commencement of such Claim to the insurers in accordance
with the procedures set forth in the respective policies.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such action, suit, proceeding,
inquiry or investigation in accordance with the terms of such policies.  Nothing in this Section 2(d) shall limit
the Company’s obligations as otherwise provided for herein, including the
Company’s obligation to pay Expenses under Section 1(b) or to advance
Expenses under Section 2(a).

 

(e)           Selection of Counsel.  In the event the Company shall be obligated
hereunder to pay the Expenses of any action, suit, proceeding, inquiry or
investigation, the Company, if appropriate, shall be entitled to assume the
defense of such action, suit, proceeding, inquiry or investigation with counsel
approved by Indemnitee, upon the delivery to Indemnitee of written notice of
its election so to do.  After delivery of
such notice, approval of such counsel by Indemnitee and the retention of such
counsel by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect
to the same action, suit, proceeding, inquiry or investigation; provided that,
(i) Indemnitee shall have the right to employ Indemnitee’s counsel in any such
action, suit, proceeding, inquiry or investigation at Indemnitee’s expense and
(ii) if (A) the employment of counsel by Indemnitee has been previously
authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense, or (C) the Company shall not continue to retain
such counsel to defend such action, suit, proceeding, inquiry or investigation,
then the fees and expenses of Indemnitee’s counsel shall be at the expense of
the Company.

 

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3.             Additional
Indemnification Rights; Nonexclusivity.

 

(a)           Scope.  The Company hereby agrees to indemnify the
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by the other provisions of this
Agreement, the Company’s Certificate of Incorporation, the Company’s By-laws or
by statute.  In the event of any change
after the date of this Agreement in any applicable law, statute or rule which
expands the rights of the corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits afforded by such change.  In the
event of any change in any applicable law, statute or rule which narrows the
rights of this Company to indemnify a member of its board of directors or an
officer, employee, agent or fiduciary, such change, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement, shall
have no effect on this Agreement or the parties’ rights and obligations
hereunder.

 

(b)           Nonexclusivity.  The indemnification provided by this
Agreement shall be in addition to any rights to which Indemnitee may be
entitled under the Company’s Certificate of Incorporation, its By-laws, any
agreement, any vote of shareholders or disinterested directors, the relevant
business corporation law of the Company’s state of incorporation, or
otherwise.  The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or
not taken while serving in an indemnified capacity even though Indemnitee may
have ceased to serve in such capacity.

 

4.             No Duplication of
Payments.  The Company shall not be
liable under this Agreement to make any payment in connection with any action,
suit, proceeding, inquiry or investigation made against Indemnitee to the
extent Indemnitee has otherwise actually received payment (under any insurance
policy, Certificate of Incorporation, By-laws or otherwise) of the amounts
otherwise indemnifiable hereunder.

 

5.             Partial
Indemnification.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of Expenses in the investigation, defense, appeal
or settlement of any civil or criminal action, suit, proceeding, inquiry or
investigation, but not, however, for all of the total amount thereof, the
Company shall nevertheless indemnify Indemnitee for the portion of such
Expenses to which Indemnitee is entitled.

 

6.             Mutual
Acknowledgment.  Both the Company and
Indemnitee acknowledge that in certain instances, Federal law or applicable
public policy may prohibit the Company from indemnifying its directors,
officers, employees, agents or fiduciaries under this Agreement or
otherwise.  Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future
to undertake with the Securities and Exchange Commission to submit the question
of indemnification to a court in certain circumstances for a determination of
the Company’s right under public policy to indemnify Indemnitee.

 

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7.             Liability
Insurance.  To the extent the Company
maintains liability insurance applicable to directors, officers, employees,
agents or fiduciaries, Indemnitee shall be covered by such policies in such a
manner as to provide Indemnitee the same rights and benefits as are accorded to
the most favorably insured of the Company’s directors, if Indemnitee is a
director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee,
agent or fiduciary.

 

8.             Exceptions.  Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

 

(a)           Excluded Action or
Omissions.  To indemnify Indemnitee
for acts, omissions or transactions from which Indemnitee may not be relieved
of liability under applicable law.

 

(b)           Claims Initiated by
Indemnitee.  To indemnify or advance
expenses to Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except (i) with
respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other agreement or insurance policy
or under the Company’s Certificate of Incorporation or By-laws now or hereafter
in effect relating to Claims for Indemnifiable Events, (ii) in specific cases
if the Board of Directors has approved the initiation or bringing of such suit,
or (iii) as otherwise required under the applicable provisions of the business
corporation law of the Company’s state of incorporation, regardless of whether
Indemnitee ultimately is determined to be entitled to such indemnification,
advance expense payment or insurance recovery, as the case may be.

 

(c)           Lack of Good Faith.  To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

 

(d)           Claims Under
Section 16(b).  To indemnify
Indemnitee for expenses and the payment of profits arising from the purchase
and sale by Indemnitee of securities in violation of Section 16(b) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
similar successor statute.

 

9.             Period of
Limitations.  No legal action shall
be brought and no cause of action shall be asserted by or in the right of the
Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or
personal or legal representatives after the expiration of two (2) years from
the date of accrual of such cause of action, and any claim or cause of action
of the Company shall be extinguished and deemed released unless asserted by the
timely filing of a legal action within such two (2)-year period; provided,
however, that if any shorter period of limitations is otherwise
applicable to any such cause of action, such shorter period shall govern.

 

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10.           Construction of
Certain Phrases.

 

(a)           For purposes of this
Agreement, references to the “Company” shall include, in addition to the
resulting corporation, any constituent corporation (including any constituent
of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its
directors, officers, employees, agents or fiduciaries, so that if Indemnitee is
or was a director, officer, employee, agent or fiduciary of such constituent
corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, employee benefit plan, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of
this Agreement with respect to the resulting or surviving corporation as
Indemnitee would have with respect to such constituent corporation if its separate
existence had continued.

 

(b)           For purposes of this
Agreement, references to “other enterprises” shall include employee benefit
plans; references to “fines” shall include any excise taxes assessed on
Indemnitee with respect to an employee benefit plan; and references to “serving
at the request of the Company” shall include any service as a director,
officer, employee, agent or fiduciary of the Company which imposes duties on,
or involves services by, such director, officer, employee, agent or fiduciary
with respect to an employee benefit plan, its participants or its
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner “not opposed to the best interests of the Company” as referred to in
this Agreement.

 

(c)           For purposes of this
Agreement a “Change in Control” shall be deemed to have occurred if (i) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or
indirectly by the shareholders of the Company in substantially the same
proportions as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as determined in accordance with Rule 13d-3 under said
Exchange Act), directly or indirectly, of securities of the Company
representing more than twenty percent (20%) of the total voting power
represented by the Company’s then outstanding Voting Securities, (ii) during
any period of two (2) consecutive years, individuals who at the beginning of
such period constitute the Board of Directors of the Company and any new
director whose election by the Board of Directors or nomination for election by
the Company’s shareholders was approved by a vote of at least two thirds (2/3)
of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof, or (iii) the
shareholders of the Company approve a merger or consolidation of the Company
with any other corporation other than a merger or consolidation which would
result in the Voting Securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into Voting Securities of the surviving entity) at least 80% of

 

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the total voting power
represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the shareholders
of the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of (in one transaction or
a series of transactions) all or substantially all of the Company’s assets.

 

(d)           For purposes of this
Agreement, “Independent Legal Counsel” shall mean an attorney or firm of
attorneys, selected in accordance with the provisions of Section 1(c)
hereof, who shall not have otherwise performed services for the Company or
Indemnitee within the last three years (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).

 

(e)           For purposes of this
Agreement, a “Reviewing Party” shall mean any appropriate person or body
consisting of a member or members of the Company’s Board of Directors or any
other person or body appointed by the Board of Directors who is not a party to
the particular Claim for which Indemnitee is seeking indemnification, or
Independent Legal Counsel.

 

(f)            For purposes of this
Agreement, “Voting Securities” shall mean any securities of the Company that
vote generally in the election of directors.

 

11.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

 

12.           Binding Effect;
Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns, including
any direct or indirect successor by purchase, merger, consolidation or
otherwise to all or substantially all of the business and/or assets of the
Company, spouses, heirs, and personal and legal representatives.  The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all, or a substantial part, of the business
and/or assets of the Company, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place.  This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as a director of the
Company or of any other enterprise at the Company’s request.

 

13.           Attorneys’ Fees.  In the event that any action is instituted by
Indemnitee under this Agreement or under any liability insurance policies
maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee with respect to such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement
of Expenses with respect to such action, unless as a part of such action the
court of competent jurisdiction over such action determines that each of the
material assertions made by Indemnitee as a basis for such action were

 

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not made in good faith or
were frivolous.  In the event of an
action instituted by or in the name of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled
to be paid all Expenses incurred by Indemnitee in defense of such action
(including costs and expenses incurred with respect to Indemnitee’s
counterclaims and cross-claims made in such action), and shall be entitled to
the advancement Expenses with respect to such action, unless as a part of such
action the court having jurisdiction over such action determines that each of
Indemnitee’s material defenses to such action were made in bad faith or were
frivolous.

 

14.           Notice.  All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed
duly given (i) if delivered by hand and receipted for by the party addressee,
on the date of such receipt, or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date
postmarked.  Addresses for notice to
either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.

 

15.           Consent to
Jurisdiction.  The Company and Indemnitee
each hereby irrevocably consent to the jurisdiction of the courts of the State
of New Jersey for all purposes in connection with any action or proceeding
which arises out of or relates to this Agreement and agree that any action
instituted under this Agreement shall be commenced, prosecuted and continued
only in the Superior Court of the State of New Jersey in and for Mercer County,
which shall be the exclusive and only proper forum for adjudicating such a
claim.

 

16.           Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable, and
the remaining provisions shall remain enforceable to the fullest extent
permitted by law.  Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

17.           Choice of Law.  This Agreement shall be governed by and its
provisions construed and enforced in accordance with the laws of the State of
New Jersey, as applied to contracts between New Jersey residents, entered into
and to be performed entirely within the State of New Jersey, without regard to
the conflict of laws principles thereof.

 

18.           Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights.

 

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19.           Amendment and
Termination.  No amendment, modification,
termination or cancellation of this Agreement shall be effective unless it is
in writing signed by both the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

20.           Integration and
Entire Agreement.  This Agreement
sets forth the entire understanding between the parties hereto and supersedes
and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the
parties hereto.

 

21.           No Construction as
Employment Agreement.  Nothing
contained in this Agreement shall be construed as giving Indemnitee any right
to be retained in the employ of the Company or any of its subsidiaries.

 

**********

 

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

 

 

	
   

  	
  SENESCO TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Sascha P. Fedyszyn

  	
   

  
	
   

  	
  By:

  	
  Sascha P. Fedyszyn

  
	
   

  	
  Title:

  	
  Vice President of
  Corporate Development and

  Secretary

  
	
   

  
	
  AGREED TO AND ACCEPTED:

  
	
   

  
	
  INDEMNITEE:

  
	
   

  
	
   

  
	
  /s/ John Braca

  	
   

  
	
  (signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (print name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (address)Exhibit
10.39

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of the
19th day of July, 2004, and is by and between Senesco, Inc., a New Jersey
corporation with an office for purposes of this Agreement at 303 George Street,
Suite 420, New Brunswick, New Jersey 08901 (hereinafter the “Company” or
“Employer”), and Richard S. Dondero with an address at 37 Hillside Avenue, NJ
07457 (hereinafter the “Employee”).

 

W I T N E
S S E T H:

 

WHEREAS:

 

(a)                                  Company
wishes to retain the services of Employee to render services for and on its
behalf in accordance with the following terms, conditions and provisions; and

 

(b)                                 Employee
wishes to perform such services for and on behalf of the Company, in accordance
with the following terms, conditions and provisions.

 

NOW,
THEREFORE, in consideration of the mutual covenants and
conditions herein contained the parties hereto intending to be legally bound
hereby agree as follows:

 

1.                                      EMPLOYMENT.  Company hereby employs Employee and Employee
accepts such employment and shall perform his duties and the responsibilities
provided for herein in accordance with the terms and conditions of this
Agreement.

 

2.                                      EMPLOYMENT
STATUS.   Employee shall at all
times be Company’s Employee subject to the terms and conditions of this
Agreement.

 

3.                                      TERM.  Unless earlier terminated pursuant to terms
and provisions of this Agreement, this Agreement shall have a term (the “Term”)
of three (3) years following the date hereof. 
The Term shall automatically renew for successive one (1) year terms
thereafter unless either party delivers written notice of termination to the
other at least 120 days prior to the end of

 

 

the initial three (3)
year term or any succeeding one (1)-year term. 
Notwithstanding anything herein to the contrary, for purposes of clarity
and not by way of limitation, the foregoing 120 day notice period shall apply
for a termination by the Company without cause, but it shall not apply in
connection with a termination by the Company for cause pursuant to Section 7
below.

 

4.                                      POSITION.  During Employee’s employment hereunder,
Employee shall serve as Vice President-Research and Development of the
Company.  In such position, Employee
shall have the customary powers, responsibilities and authorities of officers
in such position of corporations of the size, type and nature of the Company
including being generally responsible for the research activities of Employer’s
business.  Employee shall perform such
duties and exercise such powers commensurate with his positions and
responsibilities as shall be determined from time to time by the Board of
Directors of the Company (the “Board”) or the Chief Executive Officer of the
Employer (the “CEO”) and shall report directly to the CEO and CSO, at their
sole discretion, the Board and to no other person, entity or committee.  Neither Employee’s title nor any of his
functions nor the manner in which he shall report shall be changed, diminished
or adversely affected during the Term without his written consent.  Employee shall be provided with an office,
staff and other working facilities at the executive offices of the Company
consistent with his positions and as required for the performance of his
duties.

 

5.                                      COMPENSATION.

 

(a)                                  For
the performance of all of Employee’s services to be rendered pursuant to the
terms of this Agreement, Company will pay and Employee will accept the
following compensation:

 

2

 

Base Salary.  During the Term, Company shall pay the
Employee an initial base annual salary of $ 110,000 (the “Base Salary”) payable
in bi-monthly installments, and such Base Salary shall not be decreased during
the Term.  Employee shall be entitled to
such further increases, if any, in his Base Salary as may be determined from
time to time in the sole discretion of the Board.  Employee’s Base Salary, as in effect from
time to time, is hereinafter referred to as the “Employee’s Base Salary.”

 

(b)                                 Employee
shall be eligible to receive bonuses at such times and in such amounts as the Board
shall determine in its sole and absolute discretion on the basis of the
performance of the Employee.

 

(c)                                  Company
shall deduct and withhold from Employee’s compensation all necessary or
required taxes, including but not limited to Social Security, withholding and
otherwise, and any other applicable amounts required by law or any taxing
authority.

 

6.                                      EMPLOYEE
BENEFITS.

 

(a)                                  During
the Term hereof and so long as Employee is not terminated for cause (as such
term is defined herein), Employee shall receive and be provided health
insurance, and during Employee’s employment hereunder, such other employee
benefits including, without limitation, fringe benefits, vacation, and life,
health, accident and disability insurance, etc. as provided under the Company plans.

 

(b)                                 Employee
shall be entitled to receive four (4) weeks paid vacation per year.  If such vacation time is not taken by
Employee in the then current year, Employee at his option may accrue up to two
weeks vacation for carryover into the next year.

 

3

 

(c)                                  Reasonable
travel, entertainment and other business expenses incurred by Employee in the
performance of his duties hereunder shall be reimbursed by the Company in
accordance with Company policies as in effect from time to time.

 

7.                                      TERMINATION.

 

(a)                                  For
Cause by the Company.

 

Employee’s
employment hereunder may be terminated by the Company for cause.  For purposes of this Agreement, “cause” shall
mean:

 

(i)                                     Employee’s
failure to substantially perform duties hereunder consistent with the terms
hereof within twenty (20) business days following Employee’s receipt of written
notice of such failure (which notice shall have been authorized by the Board of
Directors and shall set forth in reasonable detail the purported failure to
perform and the specific steps to cure such failure, which shall be consistent
with the terms hereof);

 

(ii)                                  misappropriation
of Company funds or willful misconduct which results in material damage to the
Company;

 

(iii)                               Employee’s
conviction of, or plea of nolo contendere
to, any crime constituting a felony under the laws of the United States or any
State thereof, or any crime constituting a misdemeanor under any such law
involving moral turpitude; or

 

(iv)                              Employee’s
material breach of any of the material provisions of this Agreement, which
breach Employee has failed to cure within twenty (20) business days after
receipt of written notice by Employee of such breach or which breach Employee
has failed to begin to attempt to cure during said twenty (20)-day period if
the breach requires more than the twenty (20)-day period to cure.  Any termination of Employee’s employment
pursuant to this Subsection 7(a) shall be made by delivery to Employee of
a copy of a resolution duly adopted by

 

4

 

the affirmative vote of
not less than a majority of the Board at an actual meeting of the Board called
and held for that purpose (after twenty (20) days prior written notice to
Employee and a reasonable opportunity for Employee to be heard before the Board
prior to such vote) finding that in the good faith judgment of the Board,
Employee was guilty of conduct set forth in any of clauses (i) through (iv)
above and specifying the particulars thereof; and

 

(v)                                 If
Employee is terminated for cause, he shall be entitled to receive Employee’s
Base Salary from Company through the date of termination and Employee shall be
entitled to no other payments of Employee’s Base Salary under this Agreement.  All other benefits, if any, due Employee
following Employee’s termination of employment pursuant to this
Subsection 7(a) shall be determined in accordance with the plans, policies
and practices of the Company for most senior executives.

 

(b)                                 Disability
or Death.

 

(i)                                     Employee’s
employment hereunder shall terminate upon his death or if Employee becomes
physically or mentally incapacitated and is therefore unable (or will, as a
result thereof, be unable) to perform his duties for a period of nine (9)
consecutive months or for an aggregate of fifteen (15) months in any
twenty-four (24) consecutive month period (such incapacity is hereinafter
referred to as “Disability”).  If Company
terminates Employee’s employment under the terms of this Agreement and Employee
does not receive disability insurance payments under the terms hereof in an
amount at least equal to the then effective Employee’s Base Salary pursuant to
a policy maintained and paid for by the Company, Company shall be responsible
to continue to pay Employee’s Base Salary during the then remaining Term to the
extent required to bring the Employee’s annual compensation (together with
disability payments) up to the amount equal to the Employee’s Base Salary
immediately prior to the

 

5

 

termination for
Disability.  The Employee shall also
receive a pro  rata bonus payment with respect to the portion of
the year lapsed prior to the termination based on the bonus paid to the
Employee for the prior year.  Any
question as to the existence of the Disability of Employee as to which Employee
and the Company cannot agree shall be determined in writing by a qualified
independent physician mutually acceptable to Employee and the Company.  If Employee and the Company cannot agree as
to a qualified independent physician, each shall appoint such a physician and
those two physicians shall select a third who shall make such determination in
writing.  The determination of Disability
made in writing to the Company and Employee shall be final and conclusive for
all purposes of this Agreement.

 

(ii)                                  Upon
termination of Employee’s employment hereunder during the Term as a result of
death, Employee’s estate or named beneficiary(ies) shall receive from the
Company (x) Employee’s Base Salary at the rate in effect at the time of
Employee’s death through the end of the third month following the month his
death occurs and pro  rata bonus payment with respect to that
portion of the year lapsed prior to his death based on the bonus paid to the
Employee for the prior year, and (y) the proceeds of any life insurance policy
maintained for his benefit by the Company pursuant to this Agreement (or the
Plans and Policies of the Company generally).

 

(iii)                               All
other benefits, if any, due Employee following Employee’s termination of
employment pursuant to this Subsection 7(b) shall be determined in
accordance with the plans, policies and practices of the Company.

 

6

 

(c)                                  Without
Cause by the Company or For Good Reason.

 

(i)                                     If
Employee’s employment is terminated by the Company without cause (other than by
reason of Disability or death) or Employee resigns for Good Reason (as defined
below), in either case prior to a Change of Control (as defined below), then
Employee shall be entitled to a lump sum cash payment from the Company, payable
within ten (10) days after such termination of employment, in an amount equal
to one (1.0) times the Employee’s Base Salary (as in effect as of the date of
such termination) and the prior year’s bonus. 
All other benefits, if any, due Employee following Employee’s
termination of employment pursuant to this Subsection 7(c)(i) shall be
determined in accordance with the plans, policies and practices of the Company.

 

(ii)                                  If
there is a Change of Control within one (1) year of the termination of this
Agreement without cause by the Company, Employee shall be entitled to receive
the difference between those monies he actually received upon such termination
and one (1.0) times Employee’s base amount as defined in
Section 280G(b)(3) of the Internal Revenue code of 1986, as amended (the
“Code”) (the “Employee Base Amount”).

 

(iii)                               Subject
to Subsection 7(f), if Employee’s employment is terminated by the Company
without cause or by Employee for Good Reason during the Term and coincident
with or following a Change of Control, Employee shall be entitled to a lump sum
payment, payable within ten (10) days after such termination of employment,
equal to the product of (x) 1.0 times (y) the Employee Base Amount.

 

(iv)                              For
purposes of this Agreement “Good Reason” shall mean:

 

(a)                                  Any
material breach by the Company of this Agreement; or

 

7

 

(b)                                 The
failure of the Board of Directors to elect the Employee as an officer of the
Company with the position set forth in Section 4 hereof during the Term;
or

 

(c)                                  any
action by the Company which results in a material diminution of the Employee’s
position set forth in Section 4 hereof or Employee’s authority, duties or
responsibilities,

 

provided,
that, the foregoing events shall not be deemed to constitute Good Reason
unless Employee shall have notified the Board in writing of the occurrence of
such event(s) and the Board shall have failed to have cured or remedied such
event(s) within twenty (20) business days of its receipt of such written notice
or which breach Employer has failed to begin to attempt to cure during said
twenty (20)-day period if the breach is not curable during the twenty (20)-day
period.

 

(d)                                 Termination
by Employee.  If Employee terminates
his employment with the Company for any reason (other than for Good Reason)
during the Term, Employee shall be entitled to the same payments he would have
received if his employment had terminated by the Company for cause.

 

(e)                                  Change
of Control.  For purposes of this
Agreement, “Change of Control” shall mean:

 

(i)                                     any
transaction or series of transactions (including, without limitation, a tender
offer, merger or consolidation) the result of which is that any “person” or
“group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), becomes the “beneficial”
owners (as defined in Rule 13(d)(3) promulgated under the Exchange Act) of more
than fifty percent (50%) of the total

 

8

 

aggregate voting power of
all classes of the voting stock of the Company and/or warrants or options to
acquire such voting stock, calculated on a fully diluted basis;

 

(ii)                                  during
any period of two (2) consecutive calendar years, individuals who at the
beginning of such period constituted the Board (together with any new directors
whose election by the Board or whose nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who either were directors at the beginning of such period
or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the directors then in office; or

 

(iii)                               a
sale of assets constituting all or substantially all of the assets of the
Company (determined on a consolidated basis). 
In the event of such Change of Control, the new entity shall be
obligated to assume the terms and conditions of this Agreement.

 

(f)                                    Limitation
on Certain Payments.

 

(i)                                     In
the event it is determined pursuant to clause (ii) below, that part or all of
the consideration, compensation or benefits to be paid to Employee under this
Agreement in connection with Employee’s termination of employment following a
Change of Control or under any other plan, arrangement or agreement in
connection therewith, constitutes a “parachute payment” (or payments) under
Section 280G(b)(2) of the Code, then, of the aggregate present value of
such parachute payments (the “Parachute Amount”) exceeds one (1.0) times the
Employee Base Amount, the amounts constituting “parachute payments” which would
otherwise be payable to or for the benefit of Employee shall be reduced to the
extent necessary such that the Parachute Amount is equal to one (1.0) times the
Employee Base Amount.  Employee shall
have the right to choose which amounts that would otherwise be due him but for
the limitations

 

9

 

described in this
paragraph shall be subject to reduction. 
Notwithstanding the foregoing, if it is determined that stockholder
approval of the payment of such compensation and benefits will reduce the
applicability of Section 280G of the Code to such payment, promptly after
request by Employee, Company will undertake reasonable efforts to hold such a
meeting to obtain such approval or to solicit such approval by written consent,
and to obtain such approval.

 

(ii)                                  Any
determination that a payment constitutes a parachute payment and any
calculation described in this Subsection 7(f) (“determination”) shall be
made by the independent public accountants for the Company, and may, at
Company’s election, be made prior to termination of Employee’s employment where
Company determines that a Change in Control, as provided in this
Section 7, is imminent.  Such
determination shall be furnished in writing no later than thirty (30) days
following the date of the Change in Control by the accountants to
Employee.  If Employee does not agree
with such determination from the accountants and within fifteen (15) days
thereafter, accountants of Employee’s choice must deliver to the Company their
determination that in their judgment complies with the Code.  If the two accountants cannot agree upon the
amount to be paid to Employee pursuant to this Section 7 within ten (10)
days of the delivery of the statement of Employee’s accountants to the Company,
the two accountants shall choose a third accountant who shall deliver their determination
of the appropriate amount to be paid to Employee pursuant to this
Subsection 7(f), which determination shall be final.  If the final determination provides for the
payment of a greater amount than that proposed by the accountants of the
Company, then the Company shall pay all of Employee’s costs incurred in
contesting such determination and all other costs incurred by the Company with
respect to such determination.

 

10

 

(iii)                               If
the final determination made pursuant to clause (ii) of this
Subsection 7(f) results in a reduction of the payments that would
otherwise be paid to Employee except for the application of clause (i) of this
Subsection 7(f), Employee may then elect, in his sole discretion, which
and how much of any particular entitlement shall be eliminated or reduced and
shall advise the Company in writing of his election within ten (10) days of the
final determination of the reduction in payments.  If no such election is made by Employee
within such ten (10)-day period, the Company may elect which and how much of
any entitlement shall be eliminated or reduced and shall notify Employee
promptly of such election.  Within ten
(10) days following such determination and the elections hereunder, the Company
shall pay to or distribute to or for the benefit of Employee such amounts as
become due to Employee under this Agreement.

 

(iv)                              As a
result of the uncertainty in the application of Section 280G of the Code
at the time of a determination hereunder, it is possible that payments will be
made by the Company which should not have been made under clause (i) of this
Subsection 7(f) (“Overpayment”) or that additional payments which are not
made by the Company pursuant to clause (i) of this Subsection 7(f) should
have been made (“Underpayment”).  In the
event that there is a final determination by the Internal Revenue Service, or a
final determination by a court of competent jurisdiction, that an Overpayment
has been made, any such Overpayment shall be treated for all purposes as a loan
to Employee which Employee shall repay to the Company together with interest at
the applicable Federal rate provided for in Section 7872(f)(2) of the
Code.  In the event that there is a final
determination by the Internal Revenue Service, a final determination by a court
of competent jurisdiction or a change in the provisions of the Code or
regulations pursuant to which an Underpayment arises under this Agreement, any
such

 

11

 

Underpayment shall be
promptly paid by the Company to or for the benefit of Employee, together with
interest at the applicable Federal rate provided for in Section 7872(f)(2)
of the Code.

 

(v)                                 This
Subsection 7(f) is intended to ensure that any payments made to the
Employee shall comply with Section 280G of the Code, and shall not have
the effect of increasing the payments otherwise due to the Employee under this
Agreement.

 

8.                                      NON-DISCLOSURE
OF INFORMATION.

 

(a)                                  Employee
acknowledges that by virtue of his position he will be privy to the Company’s
confidential information and trade secrets, as they may exist from time to
time, and that such confidential information and trade secrets may constitute
valuable, special, and unique assets of the Company (hereinafter collectively
“Confidential Information”). 
Accordingly, Employee shall not, during the Term and for a period of
five (5) years thereafter, intentionally disclose all or any part of the
Confidential Information to any person, firm, corporation, association or any
other entity for any reason or purpose whatsoever, nor shall Employee and any
other person by, through or with Employee, during the Term and for a period of
five (5) years thereafter, intentionally make use of any of the Confidential
Information for any purpose or for the benefit of any other person or entity,
other than Company, under any circumstances.

 

(b)                                 Company
and Employee agree that a violation of the foregoing covenants will cause
irreparable injury to the Company, and that in the event of a breach or
threatened breach by Employee of the provisions of this Section 8, Company
shall be entitled to an injunction restraining Employee from disclosing, in
whole or in part, any Confidential Information, or from rendering any services
to any person, firm, corporation, association or other

 

12

 

entity to whom any such
information, in whole or in part, has been disclosed or is threatened to be
disclosed in violation of this Agreement. 
Nothing herein stated shall be construed as prohibiting the Company from
pursuing any other rights and remedies, at law or in equity, available to the
Company for such breach or threatened breach, including the recovery of damages
from the Employee.

 

(c)                                  Notwithstanding
anything contained in this Section 8 to the contrary, “Confidential
Information” shall not include (i) information in the public domain as of the
date hereof, (ii) information which enters the public domain hereafter through
no fault of the Employee, (iii) information known to the Employee prior to his
employment with the Company, or (iv) information created, discovered or
developed by the Employee independent of his association with the Company.  Nothing contained in this Section 8
shall be deemed to preclude the proper use by the Employee of Confidential
Information in the exercise of his duties hereunder or the disclosure of
Confidential Information required by law.

 

9.                                      RESTRICTIVE
COVENANT.

 

(a)                                  During
the term hereof and for a period of one (1) year after the termination of this
Agreement, Employee covenants and agrees that he shall not own, manage,
operate, control, be employed by, participate in, or be connected in any manner
with the ownership, management, operation, or control, whether directly or
indirectly, as an individual on his own account, or as a partner, member, joint
venturer, officer, director or shareholder of a corporation or other entity, of
any business which competes with the business conducted by Company at the time
of the termination or expiration of this Agreement.  Notwithstanding the foregoing, (i) nothing in
this Section 9 shall prohibit Employee from owning up to five percent (5%)
of the outstanding voting capital stock of any corporation or other entity
listed on Nasdaq

 

13

 

or traded on any national
securities exchange, and (ii) in the event of a termination by the Company
without cause or a termination by the Employee for Good Reason, such
restriction shall apply only if the Company has paid to the Employee all
amounts required and is otherwise in compliance with Section 7 hereof.

 

(b)                                 Employee
acknowledges that the restrictions contained in this Section 9 are
reasonable.  In that regard, it is the
intention of the parties to this Agreement that the provisions of this
Section 9 shall be enforced to the fullest extent permissible under the
law and public policy applied in each jurisdiction in which enforcement is
sought.  Accordingly, if any portion of
this Section 9 shall be adjudicated or deemed to be invalid or
unenforceable, the remaining portions shall remain in full force and effect,
and such invalid or unenforceable portion shall be limited to the particular
jurisdiction in which such adjudication is made.

 

10.                               BREACH
OR THREATENED BREACH OF COVENANTS. 
In the event of Employee’s actual or threatened breach of his
obligations under either Sections 8 or 9, or both, of this Agreement, or
Company’s breach or threatened breach of its obligations under this Agreement, in
addition to any other remedies either party may have, such party shall be
entitled to obtain a temporary restraining order and a preliminary and/or
permanent injunction restraining the other from violating these
provisions.  Nothing in this Agreement
shall be construed to prohibit Company or Employee, as the case may be, from
pursuing and obtaining any other available remedies which Company or Employee,
as the case may be, may have for such breach or threatened breach, whether at
law or in equity, including the recovery of damages from the other.

 

11.                               DISCLOSURE
OF INNOVATIONS.  The Employee
hereby agrees to disclose in writing to the Company all inventions,
improvements and other innovations of any kind that

 

14

 

the Employee makes,
conceives, develops or reduces to practice, alone or jointly with others,
during the Term, to the extent they are related to the Employee’s work for the
Company and whether or not they are eligible for patent, copyright, trademark,
trade secret or other legal protection (“Innovations”).  Examples of Innovations shall include, but
are not limited to, discoveries, research, inventions, formulas, techniques,
processes, tools, know-how, marketing plans, new product plans, production
processes, advertising, packaging and marketing techniques.

 

12.                               ASSIGNMENT
OF OWNERSHIP OF INNOVATIONS.  The
Employee hereby agrees that all Innovations will be the sole and exclusive
property of the Company and the Employee hereby assigns all of his rights,
title or interest in the Innovations and in all related patents, copyrights,
trademarks, trade secrets, rights of priority and other proprietary rights to
the Company to the extent they are related to the Employee’s work for the
Company.  At the Company’s request and
expense, during and after the Term, the Employee will assist and cooperate with
the Company in all respects and will execute documents, and, subject to his
reasonable availability, give testimony and take further acts requested by the
Company to obtain, maintain, perfect and enforce for the Company patent,
copyright, trademark, trade secret and other legal protection for the
Innovations.  The Employee hereby
appoints the CEO as his attorney-in-fact to execute documents on his behalf for
this purpose.

 

13.                               REPRESENTATIONS
AND WARRANTIES BY EMPLOYEE. 
Employee hereby warrants and represents that he is not subject to or a
party to any restrictive covenants or other agreements that in any way
preclude, restrict, restrain or limit him (a) from being an employee of Company,
(b) from engaging in the business of Company in any capacity, directly

 

15

 

or indirectly, and (c)
from competing with any other persons, companies, businesses or entities
engaged in the business of Company.

 

14.                               NOTICES.  Any notice required, permitted or desired to
be given under this Agreement shall be sufficient if it is in writing and (a)
personally delivered to Employee or an authorized member of Company, (b) sent
by overnight delivery or (c) sent by registered or certified mail, return
receipt requested, to Employer’s or Employee’s address as provided in this
Agreement or to a different address designated in writing by either party.  In all instances of notices to be given to
Company, a copy by like means shall be delivered to Company’s counsel care of
Hale and Dorr LLP, 650 College Road East, Princeton, New Jersey 08540,
Attention:  Emilio Ragosa, Esq.  In all instances of notices to be given to
Employee, a copy by like means shall be delivered to Employee’s counsel at the
address supplied by the Employee.  Notice
is deemed given on the day it is delivered personally or by overnight delivery,
or five (5) business days after it is mailed, if transmitted by the United
States Post Office.

 

15.                               ASSIGNMENT.  Employee acknowledges that his services are
unique and personal.  Accordingly,
Employee may not assign his rights or delegate his duties or obligations under
this Agreement.  Company’s rights and
obligations under this Agreement shall inure to the benefit of and shall be
binding upon the Company’s successors and assigns.  Company has the absolute right to assign its
rights and benefits under the terms of this Agreement.

 

16.                               WAIVER
OF BREACH.  Any waiver of a
breach of a provision of this Agreement, or any delay or failure to exercise a
right under a provision of this Agreement, by either party, shall not operate
or be construed as a waiver of that or any other subsequent breach or right.

 

16

 

17.                               ENTIRE
AGREEMENT.  This Agreement
contains the entire agreement of the parties. 
It may not be changed orally but only by an agreement in writing which
is signed by the parties.  The parties
hereto agree that any existing employment agreement between them shall terminate
as of the date of this Agreement.

 

18.                               GOVERNING
LAW.  This Agreement shall be
construed in accordance with and governed by the internal laws of the State of
New Jersey.

 

19.                               SEVERABILITY.
 The invalidity or
non-enforceability of any provision of this Agreement or application thereof
shall not affect the remaining valid and enforceable provisions of this
Agreement or application thereof.

 

20.                               CAPTIONS.  Captions in this Agreement are inserted
only as a matter of convenience and reference and shall not be used to
interpret or construe any provisions of this Agreement.

 

21.                               GRAMMATICAL
USAGE.  In construing or
interpreting this Agreement, masculine usage shall be substituted for those
feminine in form and vice versa, and plural usage shall be substituted or
singular and vice versa, in any place in which the context so requires.

 

22.                               CAPACITY.  Employee has read and is familiar with all of
the terms and conditions of this Agreement and has the capacity to understand
such terms and conditions hereof.  By
executing this Agreement, Employee agrees to be bound by this Agreement and the
terms and conditions hereof.

 

23.                               COUNTERPARTS.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same Agreement.

 

17

 

IN WITNESS WHEREOF, each of the
parties hereto has executed this Agreement as of the date first herein above
written.

 

 

	
   

  	
  SENESCO
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce C.
  Galton

  
	
   

  	
   

  	
   Bruce C.
  Galton, President and Chief

   Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard S.
  Dondero

  
	
   

  	
  Richard S.
  Dondero

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