Document:

Exhibit
10.78

SECOND
AMENDMENT 

TO
CANADIAN LOAN AND SECURITY AGREEMENT

This Second Amendment To Canadian Loan And Security
Agreement (the “Amendment”)
dated as of July 17, 2006, is entered into by and among WACHOVIA CAPITAL
FINANCE CORPORATION (CANADA), an Ontario corporation formerly known as Congress
Financial Corporation (Canada) (“Lender”),
and GUESS? CANADA CORPORATION, a Canadian corporation, which, effective August
1, 2005, amalgamated with its wholly-owned subsidiary, GUESS? CANADA RETAIL,
INC., a Canadian corporation (the “Borrower”),
as confirmed and acknowledged by Lender on July 27, 2005,with reference to the
following facts:

RECITALS

A.                                   Lender
is extending various secured financial accommodations to the Borrower upon the
terms of that certain Canadian Loan and Security Agreement dated as of December
20, 2002, as amended by that certain First Amendment to Canadian Loan and
Security Agreement dated as of December 30, 2004 (as the same now exists or may
hereafter be amended, modified, supplement, extended, renewed or replaced, the “Loan Agreement”).

B.                                     Each
of the Borrower and the Lender desires to amend the Loan Agreement upon the
terms and conditions set forth herein.

C.                                     The
Borrower is entering into this Amendment with the understanding and agreement
that, except as specifically provided herein, none of the rights or remedies of
the  Lender as set forth in the Loan Agreement are being waived or
modified by the terms of this Amendment.

AMENDMENT

NOW THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged by each party hereto, the parties hereto hereby agree as
follows:

SECTION 1.  Amendment. 
Clause (e) of Section 1.31 (“Change of Control”) of the Loan Agreement is
hereby amended and restated to read in its entirety as follows:  “(e) the failure of the Permitted Holders to
hold at least thirty percent (30%) of the voting power of the total outstanding
Voting Stock of Parent, and the failure of Parent to own one hundred percent
(100%) of the voting power of the total outstanding Voting Stock of the other
Borrowers.”

SECTION 2.  Conditions
to Effectiveness.  The effectiveness of this Amendment is subject to
the receipt by Lender of the following:

(a)                                  Counterparts
of this Amendment, duly executed and delivered by each of the parties hereto.

(b)                                 Such
other documents related hereto or in furtherance hereof as Lender may
reasonably require.

 

SECTION 3.  No
Other Changes.  Except as explicitly amended by this Amendment, all of
the terms and conditions of the Loan Agreement shall remain in full force and
effect and shall apply to any Loan or Letter of Credit Accommodation
thereunder.

SECTION 4.  Defined
Terms.  Unless otherwise defined herein, terms used in this Amendment
that are defined in the Loan Agreement shall have the same meanings herein as
in the Loan Agreement.  In addition, it is expressly understood that the
term Financing Agreements as used herein or in any other Financing Agreement
includes this Amendment for all purposes, including for the purposes of Section
5 hereof.

SECTION 5.  Representations
and Warranties.  The Borrower reaffirms that the representations and
warranties made to Lender in the Loan Agreement and other Financing Agreements
are true and correct in all material respects as of the date of this Amendment
as though made as of such date and after giving effect to this Amendment. 
In addition, the Borrower makes the following representations and warranties to
Lender, which shall survive the execution of this Amendment.

(a)                                  The
execution, delivery and performance of this Amendment are within the Borrower’s
powers, have been duly authorized by all necessary actions, have received all
necessary governmental approvals, if any, and do not (i) contravene any other
contractual restriction, law or governmental regulation or court decree or
order binding on or affecting the Borrower or its assets, (ii) violate the
Borrower’s organizational documents or instruments, or (iii) result in, or
require the creation or imposition of, any security interest, mortgage, pledge,
lien, charge or other encumbrance of any nature whatsoever on any of any
Obligor’s assets or properties, including the Collateral, except for liens,
security interests and other encumbrances granted under the Financing
Agreements.

(b)                                 This
Amendment is the legal, valid and binding obligation of the Borrower
enforceable against the Borrower in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, moratorium and other
similar laws affecting the rights of creditors generally.

(c)                                  Since
the dates of the financial statements most recently provided by Borrower to
Lender pursuant to Sections 9.6(a)(i) and 9.6(a)(iii) of the Loan Agreement,
there has been no Material Adverse Change.

(d)                                 No
event has occurred and is continuing, after giving effect to this Amendment,
which constitutes a Default or an Event of Default under the Loan Agreement or
any other of the Financing Agreements, or would constitute an Event of Default
but for the requirement that notice be given or time elapse or both.

SECTION 6.  Continuing
Effect of Financing Agreements.  To the extent of any inconsistencies
between the terms of this Amendment and the Loan Agreement, this Amendment
shall govern.  In all other respects, the Loan Agreement and other
Financing Agreements shall remain in full force and effect and are hereby
ratified and confirmed.

SECTION 7.  Governing Laws.  This
Amendment, upon becoming effective, shall be deemed to be a contract made under,
governed by, and subject to, and shall be construed in

 

accordance with, the internal laws of the Province of
Ontario or the laws of Canada applicable therein.

SECTION 8.  No
Waiver.  The execution of this Amendment and acceptance of any other
documents related hereto shall not be deemed to be a waiver of any Event of
Default under the Loan Agreement or breach, default or event of default under
any other Financing Agreement, whether or not known to Lender and whether or
not existing on the date of this Amendment.

SECTION 9.  Integration. 
The Loan Agreement as amended by this Amendment, together with the other
Financing Agreements, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement
of the parties hereto with respect to the subject matter hereof and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties; there are no oral agreements between the
parties.  Without limiting the foregoing, in the event this Amendment
conflicts with the terms of any letter agreement between Borrower and Lender,
the terms of this Amendment shall control.

SECTION
10.  Reference to and Effect on the Financing
Agreements.

(a)                                  Upon
and after the effectiveness of this Amendment, each reference in the Loan
Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like
import referring to the Loan Agreement, and each reference in all other
documents or agreements related thereto, including the other Financing
Agreements, to “the Loan Agreement”, “thereof” or words of like import
referring to the Loan Agreement, shall mean and be a reference to the Loan
Agreement as modified and amended hereby.

(b)                                 To
the extent that any terms and conditions in any of the Financing Agreements or
any documents or agreements related thereto shall contradict or be in conflict
with any terms or conditions of the Loan Agreement, after giving effect to this
Amendment, such terms and conditions are hereby deemed modified or amended
accordingly to reflect the terms and conditions of the Loan Agreement as
modified or amended hereby.

SECTION 11.  Severability. 
Any provision of this Amendment which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Amendment affecting the validity or enforceability
of such provision in any other jurisdiction.

SECTION 12.  Execution
in Counterparts.  This Amendment may be executed by facsimile and in
any number of counterparts, each of which when so executed and delivered shall
be deemed an original and all of which counterparts, taken together, shall
constitute one and the same instrument.

SECTION 13.  Section
Captions.  The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this
Amendment or any provisions hereof.

 

SECTION 14.  Successors
and Assigns.  This Amendment shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

[Remainder of this
page intentionally left blank]

 

IN WITNESS
WHEREOF, the parties hereto, intending to be legally bound hereby, have
executed this Amendment as of the date first set forth above, to become
effective in the manner set forth above.

	
  

  	
  GUESS? CANADA CORPORATION,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Deborah Siegel

  	
   

  
	
   

  	
  Name:

  	
  Deborah Siegel

  
	
   

  	
  Title:

  	
  Secretary

  
						

 

 

 

	
  

  	
  WACHOVIA CAPITAL FINANCE

  CORPORATION

  
	
   

  	
  (CANADA), as Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Gary Whitaker

  	
   

  
	
   

  	
  Name:

  	
  Gary Whitaker

  
	
   

  	
  Title:

  	
  DirectorExhibit 10.5

 

FREE TRANSLATION  

THE ORIGINAL VERSION IN GERMAN LANGUAGE PREVAILS

 

CEO -
EMPLOYMENT AGREEMENT

 

between

 

SIRONA Beteiligungs- und Verwaltungsgesellschaft m.b.H.,

 

Fabrikstraße
31, 64625 Bensheim,

 

represented
by its shareholder Sirona Dental Systems SARL

 

(hereinafter
the “Company”)

 

and

Mr.

 

Jost
Fischer

 

Buchenweg
16

 

83098
Brannenbarg

 

(hereinafter
the “CEO”)

 

§
1

 

Basis

 

1.
                                    Mr. Fischer will become CEO of the Company with
effect as of April 1, 2002 and Chairman of the executive management board as of
May 1, 2002.

 

2.                                       The CEO represents the Company in and out of
court acting jointly with another  Executive
Vice President or an attorney in fact of the Company.

 

3.
                                    Without limitation to the provisions of this
agreement, the duties, powers and responsibilities of the CEO are governed by
the articles of association of the Company, as amended from time to time, by
the applicable laws, in particular the Limited Liability Statute, by the
by-laws, as amended from time to time, and the instructions of the
shareholders.

 

4.
                                    The Company reserves the right, to appoint
additional Executive Vice Presidents and to change the representation policy at
any time.

 1
 

 

§ 2

 

Compensation

 

1.                                       The base salary of the CEO amounts to
EUR 378,000 per business year payable in twelve equal monthly instalments
at the end of each month.

 

2.
                                    In addition, he is eligible to receive a
bonus according to the “EVA”-plan. At a 100% “EVA” the bonus equals EUR283,500.

 

3.
                                    Any services of the CEO including extra work
is compensated by the remuneration as described above. The CEO is obliged to
work longer than the usual working hours, if it is necessary for the
achievement of the business objectives of the Company.

 

4.                                       In addition, the Company has to pay to the CEO
the legally required employer allowances with respect to healthcare, nursing
care, pension and unemployment insurance, which have to be borne in equal
shares by the CEO and the Company on the basis of the applicable laws. If the CEO
is exempted from the healthcare insurance obligation, the Company will pay 50 %
of his contributions to a private healthcare insurance up to the amount which
equals 50 % of the contribution to the statutory healthcare insurance.

 

5.                                       Compensation claims may not be assigned or
pledged without the prior consent of the shareholders.

 

6.
                                    The CEO is entitled to request a company car
Daimler Benz E-Klasse (original price approximately EUR 50,000 without VAT)
which can be used for private purposes. Alternatively, he may request
reimbursement of his travelling costs up to the accepted tax thresholds when
using his private car.

 

§ 3

 

Expenses

 

1.                                       The Company shall reimburse any reasonable
expenses in connection with the services for the Company on presentation of the
respective receipts.

 

2.                                       The Company shall reimburse any expenses for
the CEO’s secondary residence and journeys home up to EUR 20,000 per year.

 

§ 4

 

Insurances

 

1.                                       Accident Insurance: The Company has to enter
into an accident insurance in favour of the CEO with the following cover
amounts:

 

·                  EUR 750,000 in case of death,

 2
 

 

·                  EUR 1,250,000 in case of disability.

 

2.                                       Legal expenses insurance: The Company has to
provide for reasonable legal protection against civil, criminal and public law
claims of third parties in connection with the services rendered by the CEO
under this agreement.

 

                The Company will
provide for D&O insurance with a cover of EUR 5.000.000.

 

§ 5

 

Vacation and Holiday

 

The
CEO is entitled to vacation of 30 business days each year. He may request an
additional vacation of two business days due to the separation of his primary
and secondary residences. The CEO shall schedule vacation after consultation of
the Executive Vice Presidents of the company and the shareholders so as not to
interfere with the performance of his duties.

 

§ 6

 

Disability

 

1.                                       The CEO has to inform the Company without
undue delay about any disability, its reasons and its expected duration. In
case of illness, the CEO has to present to the Company upon its request a
medical attestation regarding the disability and its expected duration.

 

2.                                       In case of any disability or illness, the
Company shall continue to pay to the CEO for a period of up to six months his
contractual compensation reduced by any amounts received by the CEO from any
statutory or private insurance.

 

3.                                       In the case of death, the Company shall
continue to pay to the CEO’s dependants his contractual compensation for a
period of up to six months.

 

§ 7

 

Additional Business

 

1.                                       The CEO will devote his skills and knowledge
only to the Company. During the term of this Agreement, the CEO is not allowed
to engage in any additional business without the prior written consent of the
shareholders. Any publications and lectures, which refer to the business of the
Company but are not in the best interest of the Company, do require the prior
written consent of the shareholders.

 

2.                                       The CEO shall not actively participate in any
company or engage in any own business without the prior written consent of the
shareholders. Such consent is not required in the event of the acquisition of
interests or shares of a publicly listed

 

 3
 

                                                company for the purpose of capital investment
without influence on business decisions.

 

§ 8

 

Confidentiality, Non-competition

 

1.                                       The CEO shall keep strictly confidential any
and all confidential information regarding the Company and its affiliated
entities, irrespective of the source of such knowledge, vis-à-vis third parties
and other employees of the Company who are not entitled to receive such
confidential information. The confidentiality covenant shall not apply, if and
to the extent that the transfer of the information is necessary for the due
performance of the CEO’s duties or if the CEO has obtained the prior written
consent of the shareholders. This confidentiality obligation shall remain in
force after the termination of this agreement.

 

2.
                                    The CEO shall not act as member of
supervisory, advisory or similar boards of companies which are not affiliated with
the Company without the prior written consent of the shareholders.

 

3.                                       The CEO shall not, during the course of his
employment with the Company, directly or indirectly be employed by, engaged in
or participate in the ownership, management, operation or control of, or act in
any advisory or other capacity for, any competing entity.

 

§ 9

 

Term and Termination

 

1.                                       This agreement shall become effective as of
April 1, 2002 and shall be entered into for an indefinite period of time. Each
party may terminate this agreement upon twelve month prior notice with effect
as of the end of the calendar quarter.

 

2.                                       Each party may terminate this agreement for
cause.

 

3.
                                    Any termination notice has to be made in
writing.

 

4.
                                    The Company is entitled to release the CEO from
work at any time but the Company has to continue to pay the compensation owed
to the CEO in accordance with this agreement.

 

§ 10

 

Retention of Documents

 

Upon termination of the CEOs
employment or upon release of work according to section 9.4 of this agreement,
the CEO shall return to the Company without undue delay any business documents,
letters, drafts and similar documents and copies

 4
 

 

thereof referring to the
Company. The CEO does not have any right of retention with respect to the
aforementioned documents.

 

§ 11

 

Miscellaneous

 

1.                                       There exist no additional agreements between
the parties.

 

2.                                       Modifications of, or amendments to, this
agreement shall be made in writing to be effective.

 

3.                                       The parties comply with the requirement of
written form by using fax or telecopy, if the author of the document is
identifiable.

 

4.                                       Should any provisions of this agreement be or
become invalid, this does in no way influence the validity of the remaining
provisions. Any invalid provision shall be deemed replaced by an adequate valid
term nearest to what the parties wanted or would have wanted taking into
account the purpose of the agreement.

 

5.                                       This agreement is governed by Germany law.

 

6.                                       The Company shall reimburse properly
documented moving expenses.

 

7.                                       The CEO is entitled to participate in the
equity of the Sirona Group in accordance with the term sheet attached hereto as
Annex 1.

 

The CEO hereby confirms
receipt of an executed counterpart of this agreement.

 

Luxembourg, January 25, 2002

 

Sirona Dental Systems SARL

 

 

 

Brannenburg, January 25,
2002

 

Jost Fischer

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]