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                                                                    EXHIBIT 4.16

                AMENDMENT TO THE LETTER AGREEMENT ,INCLUDING THE
                        SCHEDULE - STANDARD CREDIT TERMS
                     FOR CANADIAN IMPERIAL BANK OF COMMERCE

This Amendment is entered into this 12th day of August, 2002 and modifies the
June 28, 2002 letter from Canadian Imperial Bank of Commerce ("CIBC") to Thomas
R. Swain of GSI Lumonics Inc. ("Letter") and the attachment to such letter
entitled "Schedule - Standard Credit Terms" ("Attachment")(collectively the
Letter and the Attachment shall be known as the Letter Agreement"). In the event
of a conflict between the Letter Agreement and this Amendment, the terms of this
Amendment shall prevail and govern.

Notwithstanding anything to the contrary in the Letter Agreement, the parties
hereby agree as follows:

That the following modifications shall be made to the Letter:

1)      The paragraph in the Letter entitled "Overall Credit Limit" shall be
replaced with the following: "The total use of all Credit shall not at any time
exceed the lesser of (a) Cdn $6,145,000 or (b) the US$ equivalent of the
Cdn$6,145,000. All other limits set forth in this letter which do not
specifically identify a currency shall be deemed to be stated in Canadian
dollars."

2)      The paragraph in the Letter entitled "Credit A: Operating Line" shall be
modified in the Description and Rate subpart "(1) Canadian dollar loans and
overdrafts" by deleting "Stand by Fee: 5 basis points on any unused credit
availment".

3)      The paragraph in the Letter entitled "Security" shall be replaced in its
entirety with the following:

Security:         The following security is required.
Liquid:           Liquid security as follows:
                  .        Pledged Collateral in the form of Money Market
                           Investments, as follows:

                                  For the full amount of all facilities
                                  availed, presently $6,145,000 value, to be
                                  held by and pledged as collateral to CIBC.

4)      The paragraph in the Letter entitled "Reporting Requirements" shall be
        modified by replacing subpart (3) with the following: "(2) Within 120
        days of each fiscal year end, a business plan or forecast for the next
        fiscal year including projected balance sheets, income statements and
        cash flow projections."

5)      The paragraph in the Letter entitled "Other Provisions" shall be
        modified by replacing the "Interest Rate Applicable to Credit Limit
        Excesses" to "CIBC's

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        standard Interest Rate Applicable to Credit Limit Excesses which shall
        in no event exceed 21% per year."

6)      The paragraph in the Letter entitled "Other Provisions" shall be
        modified further in the subpart entitled "Next Scheduled Review Date"
        by replacing the last sentence therein with the following: "The terms
        of this Agreement will continue beyond May 31, 2003 until (a) a new
        Agreement is executed between the parties which supercedes this
        Agreement; (b) an Amendment to this Agreement is executed between the
        parties, which terms and conditions shall govern the continued
        existence of the Agreement; or (c) you notify us in writing, with
        appropriate advance notice, of your desire to terminate the Agreement
        on a specified date."

7)      The paragraph entitled "Standard Credit Terms" shall be replaced in its
        entirety with the following: "The attached Schedule - Standard Credit
        terms, as modified by this Amendment, forms part of the Letter and the
        Agreement.

8)      The last sentence in the Letter shall be replaced with the following:
        "The Agreement and this Amendment thereto was agreed to and became
        effective on June 28, 2002, subject only to the execution by both
        parties of the Letter Agreement and this Amendment thereto. As of June
        28, 2002, this Agreement and Amendment replaced the existing credit
        agreement dated December 31, 1999 between GSI Lumonics Inc. and CIBC,
        and all covenants, warranties and obligations under the December 31,
        1999 credit agreement terminated as of the June 28, 2002 effective date
        and any outstanding amounts and security under the December 31, 1999
        credit agreement as of June 28, 2002 are covered and governed by the
        terms of the Letter Agreement and this Amendment."

That the following modifications shall be made to the "Schedule - Standard
Credit Terms" Attachment to the Letter:

a)      Paragraph 1.1 (a) and (b) shall be replaced with:

        1.1(a) for amounts above the Credit Limit of a Credit or part of a
        Credit or the Overall Credit Limit, as described in Section 1.4, or for
        amounts that are not paid when due, the CIBC standard Interest Rate
        Applicable to Credit Limit Excesses, which shall in no event exceed 21%
        per year.

        1.1(b)  for any other amounts the rate is the Prime Rate.

b)      Paragraph 1.3, Payment of Interest, shall be replaced in its entirety
        with the following: "Interest is computed on the basis of a 365-day
        year, for the actual number of days elapsed. Interest is due monthly in
        arrears commencing on the first day of the first month next succeeding
        the date of last signature of this Amendment at the rates set forth
        above. Unless you have made other

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        arrangements with us, we will automatically debit your Operating Account
        for interest amounts owing.

b)      Paragraph 1.6 shall be deleted in its entirety and replaced with the
        following:

        Each party understands that the credit facilities provided hereunder
        are initially being established as Demand Credits, and as such, CIBC
        may, at its discretion, demand immediate repayment of any outstanding
        amounts under any Demand Credit. Whenever possible, CIBC will give you
        thirty (30) days notice of such action. Notwithstanding the foregoing,
        CIBC agrees, on or before August 30, 2002, to convert the credit
        facility to a Revolving Credit facility and to convert any Demand
        Credits to non-demand credits under the Revolving Credit facility at no
        cost to you. You agree to sign any documentation reasonably requested
        by CIBC to effect such conversion.

c)       The following paragraphs shall be deleted in their entirety:
                .        Paragraph 1.10, Insurance
                .        Paragraph 1.11, Environmental
                .        Paragraph 1.16, Confidentiality

d)      Paragraph 1.13, Our Pricing Policy, shall be replaced in its entirety
        with the following: "If you cancel any of the fixed instrument
        arrangements under this Agreement, you will have to pay, on the used
        and outstanding portions of such fixed instrument arrangement, the
        standard and reasonable CIBC breakage fees we charge (and notify you
        of) for such cancellation.

e)      Paragraph 1.14, Proof of Debt, shall be modified by replacing the
        second sentence with the following: "Throughout the time that we
        provide you credit under this Agreement, our and your loan accounting
        records will provide proof of the terms and conditions of your credit
        (such as principal loan balances, interest calculations and payment
        dates)."

f)      Paragraph 1.15, Renewals of this Agreement, shall be replaced in its
        entirety with the following:

        "This Agreement shall remain in effect until May 31, 2003, at which
        time CIBC shall review your financial statements, your forecast
        business and financial plans and your compliance with the terms of this
        Agreement. The terms of this Agreement will continue beyond May 31,
        2003 until (a) a new Agreement is executed between the parties which
        supercedes this Agreement; (b) an Amendment to this Agreement is
        executed between the parties, which terms and conditions shall govern
        the continued existence of the Agreement; or (c) you notify us in
        writing, with appropriate advance notice, of your desire to terminate
        the Agreement on a specified date."

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g)      Paragraph 1.19, Notices shall be replaced with the following: "Except
        as is otherwise expressly specified herein, you and CIBC may give any
        notice in person or by telephone or by letter that is sent by fax or by
        mail."

The Letter Agreement and this Amendment thereto constitutes the entire
understanding between the parties hereto with respect to the subject matter
hereof and merges all prior discussions between them relating thereto. Any
finding that a provision of this Agreement is invalid or unenforceable shall
apply only to such provision. Where a party executes this Agreement and Faxes it
to the other party, such other party may rely on the facsimile copy of this
Agreement as if it was an original document.

The Letter Agreement and this Amendment thereto shall be governed by the
applicable laws of the Commonwealth of Massachusetts.

In Witness Whereof, the parties hereby agree to amend the Letter Agreement in
accordance with the terms of this Amendment, as evidenced by their respective
signatures set out below.

GSI LUMONICS, INC.                          CANADIAN IMPERIAL BANK OF COMMERCE

By: /s/ Thomas R. Swain                     By: /s/ Steven Kim

Name: Thomas R. Swain                       Name:  Steven Kim

Title:  V.P. & CFO                          Title:  Associate Manager

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                                                                   EXHIBIT 10.30

June 25, 2002                                         CONFIDENTIAL

Mr. Victor H. Woolley

Dear Vic:

This letter confirms and summarizes our mutual understanding and agreement
regarding the changes in your employment with the Company, which were effective
as of June 1, 2002.

1.      For the period of June 1, 2002 - May 24, 2003 (Period A), you shall
continue to be employed by the Company, on a thirty hour work week basis, as its
V.P. Strategic Planning . In this capacity you shall report directly to the
Chief Executive Officer of the Company, have primary responsibility for managing
Investor Relations but may also be required to undertake and perform other
duties and responsibilities requested of you from time to time by the Chief
Executive Officer.

2.      Following Period A and for the period of May 25, 2003 - May 24, 2004
(Period B), you shall continue to be employed by the Company (although not as
the Company's V.P. Strategic Planning ), on a twenty hour work week basis,
reporting directly to the Chief Financial Officer. In this capacity you shall
have primary responsibility for Investor Relations but may also be required to
undertake and perform any other duties, responsibilities and assignments
requested of you from time to time by the Chief Financial Officer.

3.      During Period A and B, you agree to devote the required time and
attention to the business and affairs of the Company and shall not, without the
consent in writing of the Chief Executive Officer undertake any other business
or occupation or become an officer, employee, agent or consultant of any
company, firm or individuals, nor hold more than 5% of the issued shares or
stock of any company that is a competitor to the Company.

4.      During Period A and so long as you perform the duties and
responsibilities requested, you shall continue (i) to be paid your current
annual base salary as prorated for a thirty hour work week and you will be
eligible to receive all or a portion of your calendar year 2002 incentive bonus
payment, in accordance with the terms of such bonus plan; (ii) to receive all
Company benefits which you currently receive (or benefits substantially similar
to those you currently receive) under the Company's life insurance, health,
accident and disability and 401K plans in which you were participating prior to
June 1, 2002, excluding your Severance Agreement benefit (which is discussed
below), at the same level of contribution by the Company and yourself as was in
place just prior to June 1, 2002; (iii) to accrue vacation at the Company's
standard accrual rate based on a thirty hour work week; and (iv) to vest any
unexercised and outstanding Company stock options, in accordance with the terms
of the applicable stock option plan and agreement.

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5.      During Period B and so long as you perform the duties and
responsibilities requested, you shall continue (i) to be paid your current
annual base salary as prorated for a twenty hour work week; (ii) to receive
health care benefits, which includes medical, dental and vision benefits, at the
same level of contribution by the Company and yourself as was in place during
Period A; (iii) to accrue vacation at the Company's standard accrual rate based
on a twenty hour work week; and (iv) to vest any unexercised and outstanding
Company stock options, in accordance with the terms of the applicable stock
option plan and agreement.

6.      In the event the Company is unable to provide you with the benefits
described in paragraphs 4(ii) and/or 5(ii) without invalidating the Company's
benefit plans or programs under applicable statutes or revenue regulations, the
Company shall either reimburse you for the cost of obtaining the benefit(s)
elsewhere or pay you the cost attributed to the purchase of such benefit up to
an aggregate maximum reimbursement or payment of fifteen thousand dollars
($15,000).

7.      You understand that notwithstanding anything to the contrary herein, the
Company may, in its absolute discretion and upon written notice, terminate your
employment for "Cause," in which event you shall have no right to receive and
the Company shall have no obligation to provide any of the payments or benefits
contained herein. "Cause" is defined as: (i) the continued failure by you to
substantially perform your duties and responsibilities (other than a failure
resulting from your incapacity due to physical or mental illness) that is not
cured within thirty days after a written demand for substantial performance is
delivered to you which specifies your nonperformance; (ii) the engaging by you
in conduct which results in demonstrable and material monetary harm to the
Company or its subsidiaries or in the reasonable opinion of the Board brings you
or the Company into disrepute; (iii) the failure or refusal by you to comply
with the lawful directions or instructions of your supervisor or the Company on
any material matter; (iv) any material breach by you of your non-disclosure and
confidentiality agreement and/or obligations or any other written agreement you
have with the Company; (v) the use by you of drugs or of alcohol in a manner
which materially affects your ability to perform your employment duties and/or
responsibilities; (vi) any material act of dishonesty directed at the Company or
any client of the Company; or (vii) your conviction by a court of competent
jurisdiction or your pleading nono contendere (no contest) to any criminal
offense involving dishonesty or breach of trust or any felony or crime of moral
turpitude.

8.      In the event you terminate your employment with the Company for "Good
Reason," by providing written notice of such termination which specifies the
reasons, you shall have the right to receive and the Company shall have the
obligation to provide the payments and benefits described herein, as though you
were still employed. "Good Reason" shall mean the occurrence (without your
express written consent) of any one of the following acts by the Company or
failures by the Company to act, unless such act or failure to act is corrected
within thirty days of a written notice of termination from you to the Company
which specifies the act or failure to act: (i) the assignment to you of any
duties inconsistent with your skill set and experience; (ii) any reduction in or
failure to pay or provide the salary payments and/or benefits specified in this
letter; or (iii) the relocation of your principal place of employment to a
location that is more than twenty five (25) miles from your then current
principal place of employment.

9.      In the event your employment with the Company is terminated for Cause or
you are unable to perform your duties and responsibilities due to disability or
death, or you resign from your employment

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with the Company in each instance prior to May 24, 2002, you shall have no right
to receive and the Company shall have no obligation to provide any of the
payments or benefits contained herein, except that you or your heirs and
successors shall be entitled to any disability or life insurance benefits which
were in place prior to the date of such employment termination.

10.     In addition to any obligations imposed by law upon any successor to the
Company, the Company shall require any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to expressly assume and agree to perform
this letter agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place.

11.     In consideration of the foregoing, you agree that the Severance
Agreement dated May 24, 2002 between yourself and the Company ("Severance
Agreement") is terminated as of the date you execute this letter agreement and
that nothing contained herein shall provide any basis for nor give you any
ability to claim (i) termination of employment for any reason, including Good
Reason under such Severance Agreement, (ii) a severance payment or benefit under
such Severance Agreement, or (iii) any change in the vesting schedule or
exercise period of any stock options or other equity based award and that you
expressly waive any rights under such Severance Agreement. You further agree,
upon request of the Company, to sign a separate Termination Amendment to the
Severance Agreement in the form attached hereto as Attachment A.

If the foregoing accurately reflects your understanding of our agreement, kindly
sign and date this letter agreement in the space indicated below.

Sincerely,                                        Acknowledged and Agreed to by:

/s/ Linda Palmer                                  /s/ Victor H. Woolley
Name:  Linda Palmer                               Name:  Victor H. Woolley
V.P. Human Resources

                                                  Date: June 25, 2002

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                                  ATTACHMENT A

                              TERMINATION AMENDMENT
                                     TO THE
                               SEVERANCE AGREEMENT
                                     BETWEEN
                                GSI LUMONICS INC.
                                       AND
                                VICTOR H. WOOLLEY

This Termination Amendment is entered into this __________ day of June, 2002
between GSI Lumonics Inc. with corporate offices at 105 Schneider Road, Kanata,
Ontario Canada K2K 1Y3 ("Company") and Victor H. Woolley of 287 Hillside Street,
Milton, Mass. 02186 ("Executive") for the express purpose of terminating the
Severance Agreement dated May 24, 2001 ("Severance Agreement") entered into
between the Company and the Executive. In the event of a conflict between the
Severance Agreement and this Amendment thereto, this Amendment shall prevail and
govern.

For valuable consideration, the receipt of which is acknowledged, the Company
and the Executive hereby agree that notwithstanding anything to the contrary in
the Severance Agreement, said Severance Agreement is terminated as of the date
set forth above and each party waives any rights it has or may have arising out
of, relating to, or under the Severance Agreement as of the date hereof and each
party releases the other party (including any of its subsidiaries and
affiliates, and their respective directors, officers, employees, agents and
representatives, if applicable) from any claims, obligations and/or liabilities
it has or may have arising out of, relating to, or under the Severance Agreement
as of the date hereof.

IN WITNESS WHEREOF, this Termination Amendment to the Severance Agreement is
made and entered into as of the date first written above.

GSI LUMONICS INC.                                    EXECUTIVE

------------------------------                       ---------------------------
Name:                                                Name: Victor H. Woolley

Title:                                               Address:___________________
     -------------------------
                                                     ___________________________

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