SEPARATION AGREEMENT BETWEEN GERBER SCIENTIFIC, INC. AND BERNARD J. DEMKO

Exhibit 10.1

SEPARATION AGREEMENT BETWEEN
GERBER SCIENTIFIC, INC. AND BERNARD J. DEMKO

            This Agreement is a contract between Bernard J. Demko ("you") and Gerber Scientific, Inc., its predecessors, successors in interest, affiliates, divisions, subsidiaries, directors, officers, agents, fiduciaries, and employees (collectively "Gerber" or "the Company"), relating to your separation from Gerber effective on July 18, 2007. You should thoroughly review and understand the Agreement before signing it. GERBER FURTHER ADVISES YOU TO CONSULT AN ATTORNEY BEFORE SIGNING THIS AGREEMENT .

• A. BENEFITS TO YOU FOR SIGNING THIS AGREEMENT:

  • • In exchange for the consideration stated in this Agreement, Gerber agrees to:

    Permit you to resign your employment and such other offices as you may hold with any other Gerber organization anywhere in the world, effective July 18, 2007. You agree to execute any such documents as may be required to remove you from any such position.

    Pay you the equivalent of one year's salary ($294,150.00) with appropriate deductions for tax purposes. This payment will be made in a lump sum within twenty-one (21) days following both your execution of this Agreement and the expiration of the seven-day revocation period.

    • In addition to the above items, the Parties agree:

      1. To rescind the Separation Agreement and Consulting Agreement entered into between you and Gerber on June 22, 2007. Upon the Parties' execution of this Agreement, those agreements shall immediately be null and void;

      2. You will receive back-pay from the date your employment was suspended without pay on June 12, 2007 in the amount of $30,546.72. This payment will be made in a lump sum within twenty-one (21) days following both your execution of this Agreement and the expiration of the seven-day revocation period.

      3. Notwithstanding the above, you will be entitled to retain the $20,500 already paid to you under the Consulting Agreement;

      4. Gerber will make payments on your behalf regarding the continuation of health, dental and life insurance coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") commencing August 1, 2007 for twelve months unless such payments are no longer required. You shall give Gerber prompt notice if such payments are no longer required.

      5. To pay your bonus of $101,481.75, less appropriate deductions for tax purposes, for the fiscal year 2007. This payment will be made in a lump sum within twenty-one (21) days following both your execution of this Agreement and the expiration of the seven-day revocation period.

            You agree that you would not be entitled to receive these items in the absence of this Agreement and had you remained employed by Gerber and not resigned in accordance with this Agreement, and you further agree that you shall not receive, and are not entitled to receive, any further payment or benefit from Gerber.

            In addition, upon receipt of all documentation of reasonable expenses that are outstanding you have incurred on behalf Gerber, you will he reimbursed for such expenses and will receive all outstanding vacation pay due you in the amount of $25,000.00, less appropriate deductions for tax purposes, payments for expenses already submitted will be paid in the next accounts payable check run and payments for vacation will be paid in the next pay period.

            Gerber will not issue any report to any third parties regarding you or your activities at Gerber other than a Form 8K/A filed with the Securities and Exchange Commission for the purpose of indicating that your separation date has changed to July l8, 2007. If any inquiry is made by any regulatory or governmental agency or other third party by legal means implicating such activities, Gerber will necessarily respond forthrightly.

             B. RELEASE AND WAIVER: In exchange for the payments and benefits to you described above, you agree to release Gerber, its past, present and future affiliates, officers, directors, employees, and agents, from any and all claims or demands, known or unknown, which you ever had, may have had, now have, or which your heirs, executors or administrators hereinafter shall have or may have against Gerber, including but not limited to those which are related in any way to your employment with Gerber or the termination of that employment. You agree that you have executed this Agreement on your own behalf, and also on behalf of any heirs, agents, representatives, successors and assigns that you may have now or in the future.

            You also agree that this Release and Waiver covers, but is not limited to, claims arising under: Title VII of the Civil Rights Act of 1964, as amended; the Employee Retirement Income Security Act of 1974, as amended (also known as "ERISA"); the Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act, as amended ("ADEA"); the Connecticut Fair Employment Practices Act; any other federal, state or local law dealing with discrimination on any basis, including sex, race, national origin, veteran status, marital status, religion, disability, sexual orientation, reservist status, or age; any other federal, state or local law or regulation or any common law governing the payment of wages, commissions or any other form of compensation; any public policy, contract, tort, or common law; or any claim for costs, fees, or other expenses including attorneys' fees incurred in these matters. Your Release and Waiver covers all complaints