Document:

Exhibit
10.1

Product Line Purchase Agreement

This Product Line
Purchase Agreement (“Agreement”) is made as of the Effective Date by and
between PhotoLynx, Inc. (“PhotoLynx”), a California corporation, and
ImageWare Systems, Inc. (“IWS”) a Delaware corporation (together “the
Parties”). The term “Effective Date” shall mean the date this
Agreement is signed by Photo Lynx or IWS (whichever is later). Now, therefore,
the Parties agree as follows:

1.             Product
Line

PhotoLynx agrees to purchase the IWS PDI product line
under the terms stated below. Upon execution of this Agreement, IWS will
provide to PhotoLynx the entire PDI product line and inventory including, but
not limited to, source, copyrights, trademarks, documentation and client base.
The PDI product line includes, but is not limited to, PDI ProLabTM, PDI StudioTM,
PC EventTM, PC ProTM, School Days+, Picture More.comTM, PDI Light Table, Photo
Recall and the new school layout tool (“PDI Products”).

2.             Terms
of Payment

PhotoLynx agrees to pay a purchase price of $400,000
(Four Hundred Thousand Dollars) consisting of an initial payment of $25,000
(Twenty-Five Thousand Dollars) payable in US Dollars on the Effective Date and
the remaining $375,000 (Three Hundred Seventy-Five Thousand Dollars) to be paid
as follows: Beginning from the Effective Date and continuing until such time as
the remaining $375,000 has been paid in full, PhotoLynx will pay IWS, in
quarterly installments, 12.5% of all newly acquired sales and license revenues
of PDI and PhotoLynx products (collectively “the Percentage Payments”). Newly
acquired sales and license revenues shall include only sales and licenses
acquired from clients who were not existing PhotoLynx clients as of the
Effective Date; and shall not include renewals of existing licenses from
clients that were PhotoLynx clients as of the Effective Date.  If, at the end of any 12-month period,
beginning with the Effective Date, the Percentage Payments do not equal or
exceed $50,000 (Fifty Thousand Dollars) then PhotoLynx shall pay IWS the
difference between $50,000 and the Percentage Payments, such difference to be
paid together with any Percentage Payments due in each final quarter. Failure
to make any Percentage Payments when due shall constitute a material breach of
this Agreement.

3.             Accounting:
Records and Audits

(a)           PhotoLynx
shall submit to IWS a quarterly statement in auditable form, reporting
sufficient detail to substantiate all PhotoLynx consideration received by
PhotoLynx for said preceding quarter and the total amount of Percentage
Payments due IWS.

(b)           Payment
of the Percentage Payments shall be made contemporaneous with the quarterly
statement.

(c)           Photo
Lynx shall keep accurate books and records showing: all PhotoLynx consideration
for each and every sale of PDI and Photo Lynx products. Books and records must
be preserved for and during the term of this Agreement.

(d)           PhotoLynx
shall, upon written request, provide access to books and records for inspection
by representatives or agents of IWS at reasonable times. IWS shall bear the
fees and expenses of examination except as provided in Section 3.5 below.

(e)           In
the event the audit reveals an underpayment of fees due hereunder, Photo Lynx
shall immediately pay such underpayment plus ten percent (10%) interest on the
underpaid amount. If the amount of the underpayment exceeds five percent (5%)
of the amount due, then the underpaying PhotoLynx shall also pay IWS all
reasonable costs and expenses associated with the audit.

 

(f)            In
the event that the audit reveals an underpayment of less than one percent (1
%), IWS shall pay Photo Lynx all reasonable costs and expenses associated with
the audit.

4.            
Limited Warranty

In the event that any of the PDI Products are proved
to have been defective at time of delivery, IWS will replace the defective product.
IWS represents and warrants to PhotoLynx that all PDI Products provided to
PhotoLynx through this Agreement are fully and legally owned by IWS.  IWS represents and warrants that assignment,
transfer and conveyance of all PDI Products provided to Photo Lynx by this
Agreement shall not infringe upon nor violate any patent, copyright, trade
secret or right of any third party. IWS hereby agrees to defend, indemnify and
hold harmless PhotoLynx, its officers, directors, shareholders and agents from
any and all damages or liabilities resulting from claims (including suits)
against PhotoLynx arising from or in connection with any claims of infringement
or violation of any patent, copyright, trade secret or valid ownership
pertaining to the PDI product line. IWS shall have the sole right to conduct
the defense of any such claim or action and all negotiations for its
settlement, unless the parties agree otherwise in writing. PhotoLynx shall give
IWS prompt written notice of any written threat, warning, or notice of any
claim or action that would reasonably appear to trigger the foregoing indemnity
and will cooperate with IWS in its defense. Indemnification shall be limited to
actual damages, court costs and reasonable attorney’s fees suffered by such
party, and the parties waive any right to recover consequential, special,
punitive or exemplary damages arising in connection with or with respect to the
indemnification provisions hereof.

5.             Termination

(a)           IWS
may terminate this Agreement if PhotoLynx fails to pay any undisputed payment
owed under this Agreement by its applicable due date and fails to cure the
breach within thirty (30) days after receipt of written notice of such breach
from IWS. To the extent PhotoLynx disputes any payment, the Parties will submit
to arbitration as provided in Section 9(b) and if the arbitrator determines
that such disputed payment is owed to IWS and PhotoLynx fails to make the
payment within thirty (30) days after the arbitrator’s decision, IWS may
terminate this Agreement.

(b)           Upon
termination of this Agreement:

(i) PhotoLynx shall
immediately irrevocably assign and transfer all Photo Lynx’s rights, title and
interest in and to PDI Products, including without limitation, all intellectual
property rights in the PDI Products and the structure, sequence and
organization of same to IWS including any derivative works that may have been
created by PhotoLynx; and

(ii) PhotoLynx shall
immediately cease all reproduction of the PDI Products cease to distribute the
PDI Products and cease to use the PDI Products and any trademark, trade name,
logo or other designation of PDI Products in any manner whatsoever.

6.             Entire
Agreement

This Agreement constitutes the entire agreement
between the Parties and supersedes all prior agreements and understandings,
oral or written, between the Parties with respect to the subject matter hereof.
By the act of signing this Agreement, the Parties consent to this Agreement and
all of its provisions.  The Parties also
acknowledge that the terms and conditions of this Agreement, and each of them,
are reasonable, fair and equitable.

 

7.             Modification

This Agreement may not be modified, amended or changed
by the Parties, except by a writing specifying the modification, amendment or
change, signed by the Parties, or their then successors, if any.

8.             Severability

Should any part of this Agreement, for any reason, be
declared invalid, then such portion shall be invalid only to the extent of the
prohibition without invalidating or affecting the remaining provisions of the Agreement,
or without invalidating or altering said provisions of this Agreement within
states or localities where they are not prohibited by law or court decree.

9.             Mediation then Arbitration

(a)           In
the event of a dispute or default under this Agreement, any controversy or
claim arising out of or relating to this Agreement, or the breach thereof,
shall first be submitted to non-binding mediation (“Mediation”) prior to
initiating arbitration as set forth below in Paragraph 9(b). Each party shall
bear its own costs and expenses of participating in the Mediation, and each
party shall bear one-half (1/2) of the fees of the mediator. The mediator shall
be selected by the Parties’ mutual agreement within ten (10) days notice by one
party to the other requesting mediation (“Notice of Dispute”). If the Parties
cannot timely mutually agree upon a mediator, the American Arbitration
Association, San Diego, California, shall promptly select the mediator. The
Parties agree that time is of the essence and that they will each, in good
faith, seek to conclude the mediation process within sixty (60) days following
the Notice of Dispute.

(b)           Any
controversy or claim arising out of or relating to this Agreement, or the
breach thereof, which shall not have been satisfactorily resolved first
according to Paragraph 9(a) above, shall be settled by arbitration at San
Diego, California, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

10.          Attorney’s Fees

In any suit or proceeding brought or instituted by
either of the Parties to enforce or interpret any of the provisions of this
Agreement or on account of any damages sustained by any party by reason of the
violation by another party of any of the terms or provisions of this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys’ fees in
such amount as shall be fixed by the court.

11.          Trade
Secrets

IWS
agrees not to share any information regarding the PDI product line with any
third party without the express written permission of Photo Lynx.

12.          Successors
and Assignees

All
covenants, representations, warranties and agreements of the Parties contained
herein shall be binding upon and inure to the benefit of their respective
heirs, executors, administrators, persona representatives, successors and
permitted assignees.

13.          Time
of the Essence

Time is of the essence of this Agreement.

 

14.          Force
Majeure

In the
event that either party hereto shall be delayed or hindered in or prevented
from the performance of any act required as a result of causes beyond such
party’s reasonable control, such as, without limitation, strikes, lockouts,
labor troubles, failure of power, restrictive governmental laws or regulations,
riots, insurrections, wars or other reasons of a like nature, then performance
of such act shall be excused for the period of the delay.

15.          Governing
Law

This Agreement shall be construed and enforced in
accordance with the laws of the state of California.

16.          Publicity.
Neither party will make any press release or other public
announcement regarding this Agreement until the text of such release or
announcement has been submitted to the other party and the other party has
approved the same.

IN WITNESS WHEREOF, the Parties
have executed this Agreement by signing and dating below.

 

	
  Date:  November 30, 2006

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wayne G.
  Wetherell

  	
   

  
	
   

  	
   

  	
  Wayne G.
  Wetherell

  
	
   

  	
   

  	
  Senior Vice
  President & Chief Financial Officer

  
	
   

  	
   

  	
  ImageWare
  Systems, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:  November 30, 2006

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris R.
  Burton

  	
   

  
	
   

  	
   

  	
  Chris R. Burton

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
  PhotoLynx, Inc.Exhibit 4.1

 

SAMSONITE
CORPORATION

8-7/8%
SENIOR SUBORDINATED NOTES DUE 2011

SUPPLEMENTAL
INDENTURE

DATED
AS OF DECEMBER 6, 2006

THE
BANK OF NEW YORK TRUST COMPANY, N.A.,

AS
TRUSTEE

 1
 

 

 

SUPPLEMENTAL INDENTURE, dated as of December 6, 2006 (this “Supplemental
Indenture”), between SAMSONITE CORPORATION, a Delaware corporation (the “Company”),
and THE BANK OF NEW YORK TRUST COMPANY, N.A., a national banking association,
(as successor to The Bank of New York) as trustee (the “Trustee”).

WHEREAS, the Company and the Trustee are parties to an Indenture, dated
as of June 9, 2004 (the “Indenture”), pursuant to which the Company issued its
8-7/8% Senior Subordinated Notes Due 2011 (the “Notes”);

WHEREAS, the Board of Directors of the Company has determined that it
is in the best interests of the Company to authorize and approve the proposed
amendments to the Indenture (the “Proposed Amendments”);

WHEREAS, Section 8.02 of the Indenture provides that the Company and
the Trustee may amend the Indenture and the Notes with the written consent of
the Holders of not less than a majority in aggregate principal amount of the
Notes then outstanding;

WHEREAS, the Company has distributed an Offers to Purchase and Consent
Solicitations Statement, dated November 21, 2006 (the “Statement”), to the
Holders of the Notes in connection with the Proposed Amendments as described in
the Statement;

WHEREAS, the Holders of not less than a majority in aggregate principal
amount of the Notes outstanding have approved the Proposed Amendments to the
provisions of the Indenture; and

WHEREAS, the execution and delivery of this instrument have been duly
authorized and all conditions and requirements necessary to make this
instrument a valid and binding agreement have been duly performed and complied
with;

NOW, THEREFORE, for and in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, it is mutually covenanted and agreed, for the equal proportionate
benefit of all Holders of the Notes, as follows:

ARTICLE
1.          AMENDMENTS TO ARTICLE
1—DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01. 
Upon the effective date, certain definitions shall be deemed deleted
when references to such definitions would be eliminated as a result of the
amendments described herein.

ARTICLE
2.          AMENDMENTS TO ARTICLE
4—COVENANTS

Section 2.01. 
Section 4.02 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.02.             Intentionally omitted.

Section 2.02. 
Section 4.03 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.03.             Intentionally omitted.

Section 2.03. 
Section 4.04(b) of the Indenture is hereby amended to read in its
entirety as set forth below:

 (b)           
                 Intentionally omitted.

Section 2.04. 
Section 4.05 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.05.             Intentionally omitted.

Section 2.05. 
Section 4.06 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.06.             Intentionally omitted.

Section 2.06. 
Section 4.07 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.07.             Intentionally omitted.

Section 2.07. 
Section 4.08 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.08.             Intentionally omitted.

Section 2.08. 
Section 4.09 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.09.             Intentionally omitted.

 2
 

 

 

Section 2.09. 
Section 4.10 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.10.             Intentionally omitted.

Section 2.10. 
Section 4.12 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.12.             Intentionally omitted.

Section 2.11. 
Section 4.13 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.13.             Intentionally omitted.

Section 2.12. 
Section 4.16 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.16.             Intentionally omitted.

Section 2.13. 
Section 4.17 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.17.             Intentionally omitted.

Section 2.14. 
Section 4.18 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 4.18.             Intentionally omitted.

ARTICLE
3.          AMENDMENTS TO ARTICLE
5—SUCCESSOR CORPORATION

Section 3.01. 
Section 5.01 of the Indenture is hereby amended to read in its entirety
as set forth below:

Section 5.01.             Intentionally omitted.

ARTICLE
4.          AMENDMENTS TO ARTICLE
6—DEFAULTS AND REMEDIES

Section 4.01. 
Section 6.01(3) of the Indenture is hereby amended to read in its
entirety as set forth below:

(3)           Intentionally
omitted.

Section 4.02. 
Section 6.01(4) of the Indenture is hereby amended to read in its
entirety as set forth below:

(4)           Intentionally
omitted.

Section 4.03. 
Section 6.01(5) of the Indenture is hereby amended to read in its
entirety as set forth below:

(5)           Intentionally
omitted.

Section 4.04. 
Section 6.01(6) of the Indenture is hereby amended to read in its
entirety as set forth below:

(6)           Intentionally
omitted.

Section 4.05. 
Section 6.01(7) of the Indenture is hereby amended to read in its
entirety as set forth below:

(7)           Intentionally
omitted.

ARTICLE
5.          AMENDMENTS TO ARTICLE
9—DISCHARGE OF INDENTURE; DEFEASANCE

Section 5.01. 
Section 9.04(2) of the Indenture is hereby amended to read in its
entirety as set forth below:

(2)           Intentionally
omitted.

Section 5.02. 
Section 9.04(4) of the Indenture is hereby amended to read in its
entirety as set forth below:

(4)           Intentionally
omitted.

Section 5.03. 
Section 9.04(6) of the Indenture is hereby amended to read in its
entirety as set forth below:

(6)           Intentionally
omitted.

Section 5.04. 
Section 9.04(7) of the Indenture is hereby amended to read in its
entirety as set forth below:

(7)           Intentionally
omitted.

 3
 

 

 

ARTICLE
6.          AMENDMENTS TO THE NOTES

Section 6.01. 
The Notes include certain of the foregoing provisions from the
Indenture. Upon the effective date, such provisions from the Notes shall be
deemed deleted.

ARTICLE
7.          MISCELLANEOUS

Section 7.01. 
The Trustee accepts the trusts created by the Indenture, as amended and
supplemented by this Supplemental Indenture, and agrees to perform the same
upon the terms and conditions of the Indenture, as amended and supplemented by
this Supplemental Indenture.

Section 7.02. 
All capitalized terms used and not defined herein shall have the
respective meanings assigned to them in the Indenture.

Section 7.03. 
Upon execution and delivery of this Supplemental Indenture, the terms
and conditions of this Supplemental Indenture shall be part of the terms and
conditions of the Indenture for any and all purposes, and all the terms and
conditions of both shall be read together as though they constitute one and the
same instrument, except that in case of conflict, the provisions of this
Supplemental Indenture will control. Notwithstanding an earlier execution date,
the provisions of this Supplemental Indenture shall not become operative until
the date upon which the Company accepts the Notes for purchase and payment
pursuant to the Statement.  The Company
shall promptly notify the Trustee in writing that this Supplemental Indenture
has become operative.

Section 7.04. 
Each of the Company and the Trustee hereby confirms and reaffirms the
Indenture in every particular except as amended and supplemented by this
Supplemental Indenture.

Section 7.05. 
All covenants and agreements in this Supplemental Indenture by the
Company or the Trustee shall bind their respective successors and assigns,
whether so expressed or not.

Section 7.06. 
In case any provisions in this Supplemental Indenture shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

Section 7.07. 
Nothing in this Supplemental Indenture, express or implied, shall give
to any Person, other than the parties hereto and their successors under the
Indenture and the Holders of the Notes, any benefit or any legal or equitable
right, remedy or claim under the Indenture.

Section 7.08. 
The parties may sign any number of copies of this Supplemental
Indenture.  Each signed copy shall be an
original, but all of them together shall represent the same agreement.  One signed copy is enough to prove this
Supplemental Indenture.

Section 7.09. 
This Supplemental Indenture shall be governed by and construed in
accordance with the laws of the State of New York, as applied to contracts made
and performed within the State of New York, without regard to principles of
conflicts of law.  Each of the parties
hereto agrees to submit to the jurisdiction of the courts of the State of New
York in any action or proceeding arising out of or relating to this
Supplemental Indenture.

Section 7.10. 
All provisions of this Supplemental Indenture shall be deemed to be
incorporated in, and made a part of, the Indenture; and the Indenture, as
amended and supplemented by this Supplemental Indenture, shall be read, taken
and construed as one and the same instrument.

Section 7.11. 
The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or
in respect of the recitals contained herein, all of which are made solely by
the Company.

 4
 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed as of the date first written above.

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard H. Wiley

  
	
   

  	
   

  	
  Name: 

  	
  Richard H. Wiley

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer, Treasurer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michelle Larios-Escobedo

  
	
   

  	
   

  	
  Name:

  	
  Michelle Larios-Escobedo

  
	
   

  	
   

  	
  Title:

  	
  Assistant Treasurer

  

 

[Signature Page to 8-7/8% Senior Subordinated Notes
Supplemental Indenture]

 

 5

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