Document:

First Amendment to Disbursement Collateral Account Agreement

 Exhibit 10.69 
  
 FIRST AMENDMENT TO 
 DISBURSEMENT COLLATERAL ACCOUNT AGREEMENT 
  
 This
FIRST AMENDMENT TO DISBURSEMENT COLLATERAL ACCOUNT AGREEMENT (this “First Amendment”) is dated as of February 22, 2005, and entered into by and among LAS VEGAS SANDS, INC., a Nevada corporation
(“LVSI”), VENETIAN CASINO RESORT, LLC, a Nevada limited liability company (“VCR”), LIDO CASINO RESORT, LLC, a Nevada limited liability company (“LCR”, and jointly and severally with
LVSI and VCR, “Pledgor”), THE BANK OF NOVA SCOTIA, as custodian and in its capacity as a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC
(in such capacities, the “Financial Institution”), and THE BANK OF NOVA SCOTIA, a Canadian chartered bank, in its capacity as the Intercreditor Agent under the Intercreditor Agreement (as defined below) (in such capacity,
“Intercreditor Agent”) for and on behalf of (i) each Mortgage Note Secured Party (as defined below), (ii) U.S. Bank National Association, a national banking association, as the trustee (the “Mortgage Notes Indenture
Trustee”) for and on behalf of the Mortgage Note Holders (individually, each a “Mortgage Note Secured Party” and together, the “Mortgage Note Secured Parties”) under the Mortgage Notes Indenture (as defined
below) and (iii) the Intercreditor Agent. 
  
 PRELIMINARY
STATEMENTS 
  
 A. The Phase II Project. LCR proposes to
develop, construct and operate the Phase II Project at the Site adjoining the Existing Facility. 
  
 B. Existing Credit Agreement. LVSI, VCR, The Bank of Nova Scotia, as administrative agent, Goldman Sachs Credit Partners L.P., as sole lead
arranger and sole bookrunner, each of the other agents and arrangers from time to time party thereto and the financial institutions from time to time party thereto (the “Existing Bank Lenders”) entered into that certain Credit
Agreement, dated as of August 20, 2004 (the “Existing Credit Agreement”), pursuant to which the Existing Bank Lenders agreed, subject to the terms thereof, to provide agreed, subject to the terms thereof and hereof, to make
extensions of credit to LVSI and VCR, jointly and severally, in an aggregate amount and for purposes specified therein. 
  
 C. Mortgage Notes Indenture. LVSI, Venetian, certain guarantors named therein and the Mortgage Notes Indenture Trustee entered into the Mortgage
Notes Indenture, dated as of June 4, 2002 (the “Mortgage Notes Indenture”), pursuant to which LVSI and Venetian issued the Notes (referred to therein). 
  
 D. Capacity and Obligations of Intercreditor Agent. The Intercreditor Agent, the Bank Agent (as defined in the
Existing Credit Agreement) and the Mortgage Notes Indenture Trustee 

  

 
have entered into the Amended and Restated Intercreditor Agreement, dated as of August 20, 2004 (as amended, amended and restated, supplemented or otherwise
modified, from time to time, the “Intercreditor Agreement”), which sets forth certain agreements among such lenders with respect to the priority of the liens created hereunder, the enforcement of remedies and the allocation of the
proceeds of any realization upon collateral. 
  
 E. Amended and
Restated Bank Credit Facility. Concurrently herewith, LVSI, Venetian, The Bank of Nova Scotia, as administrative agent (in such capacity, the “Bank Agent”), joint lead arranger and joint bookrunner, Goldman Sachs
Credit Partners L.P., as joint lead arranger and joint bookrunner, each of the other agents and arrangers from time to time party thereto and the financial institutions from time to time party thereto (the “Bank Lenders”) have
entered into the Amended and Restated Credit Agreement, dated as of the date hereof (as amended, amended and restated, supplemented, or otherwise modified from time to time, the “Amended and Restated Credit Agreement”), pursuant to
which the parties thereto have agreed to amend and restate the Existing Credit Agreement in its entirety. The Subsidiary Guarantors (as defined in the Amended and Restated Credit Agreement) have guaranteed LVSI and Venetian’s obligations under
the Amended and Restated Credit Agreement. 
  
 F. Collateral
Account Agreement. Pledgor, Financial Institution and Intercreditor Agent have entered into that certain Disbursement Collateral Account Agreement dated as of September 30, 2004 (and as further amended, supplemented, amended and restated or
otherwise modified from time to time, the “Collateral Account Agreement”). 
  
 G. First Amendment. Pledgor, Financial Institution and Intercreditor Agent desire to amend the Collateral Account Agreement as more fully set forth below. 
  
 NOW, THEREFORE, in consideration of the promises contained herein and
for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Pledgor, Financial Institution and Intercreditor Agent hereby agree to amend the Collateral Account Agreement as follows: 
  
 1. Definitions. 
  
 1.1 Unless otherwise defined herein, all capitalized terms
used herein which are defined in the Collateral Account Agreement shall have their respective meanings as used in the Collateral Account Agreement or if not defined therein, in the Amended and Restated Credit Agreement as in effect on the date
hereof. The rules of interpretation contained in the Amended and Restated Credit Agreement as in effect on the date hereof shall apply to the First Amendment. 
  

1.2 Unless otherwise defined herein, in the Collateral Account Agreement or in the Amended and Restated Credit Agreement or the context
otherwise requires, terms for which meanings are provided in Articles 8 and 9 of the UCC are used in this First Amendment (whether or not capitalized herein), including its preamble and recitals, with such meanings. 
  

 2 

 2. Amendments. 
  
 2.1 The recital set forth in Preliminary Statement B of the Collateral Account Agreement is hereby amended
in its entirety as follows: 
  
 “B. Credit Agreement.
LVSI, VCR, the Administrative Agent, the Syndication Agent and the Lenders have entered into a Credit Agreement dated as of August 20, 2004 (the “Existing Credit Agreement”) pursuant to which the Lenders have agreed, subject to the
terms thereof, to provide Credit Extensions to LVSI and VCR, jointly and severally, in an aggregate amount and for purposes specified therein.” 
  
 2.2 The following definition is hereby added to Section 1 of the Collateral Account Agreement: 
  
 “‘Credit Agreement’ means that certain Amended and
Restated Credit Agreement (as modified, amended or supplemented from time to time, the “Credit Agreement”) dated as of February 22, 2005 entered into by LVSI, VCR, The Bank of Nova Scotia, in its capacity as Administrative Agent and
as joint lead arranger and joint bookrunner, Goldman Sachs Credit Partners L.P., as syndication agent, joint lead arranger and joint bookrunner, and Commerzbank AG, The CIT Group\Equipment Financing, Inc. and Wells Fargo Foothill, Inc., as
documentation agents, and the financial institutions from time to time party thereto.” 
  
 2.3 In Section 2 of the Collateral Account Agreement, the designations of the accounts described therein are hereby deleted and the
designations set forth below substituted in place thereof: 
  
 2.3.1 In subsection 2(a), “Account number 03036-15, The Bank of Nova Scotia, as Administrative Agent under the Amended and Restated Credit Agreement, Bank Proceeds Account.” 
  
 2.3.2 In subsection 2(b), “Account number 03047-17; The
Bank of Nova Scotia, as Administrative Agent under the Amended and Restated Credit Agreement, Disbursement Account.” 
  
 2.3.3 In subsection 2(c), “Account number 03048-16, The Bank of Nova Scotia, as Administrative Agent under the Amended and Restated
Credit Agreement, Phase II Hotel/Casino Cash Management Account.” 
  
 2.3.4 In subsection 2(d), “Account number 03044-17, The Bank of Nova Scotia, as Administrative Agent under the Amended and Restated Credit Agreement, Phase II Hotel/Casino Equity Account.” 
  

 3 

 2.3.5 In subsection 2(e), “Account number 03050-14, The Bank of Nova Scotia, as
Administrative Agent under the Amended and Restated Credit Agreement, Supplemental Hotel/Casino Cash Account.” 
  
 2.3.6 In subsection 2(f), “Sub-account number 03051-11, The Bank of Nova Scotia, as Administrative Agent under the Amended and
Restated Credit Agreement, Supplemental Hotel/Casino Cash Account - Free Cash Flow Sub Account.” 
  
 3. Miscellaneous. Except as expressly amended hereby, the provisions of the Collateral Account Agreement shall remain in full force and effect.
This First Amendment shall be governed by, and shall be construed and enforced in accordance with, the internal laws of the state of New York, without regard to conflicts of laws principles. Regardless of any provision in any other agreement, for
purposes of the UCC, with respect to each Collateral Account New York shall be deemed to be the bank’s jurisdiction (within the meaning of Section 9-304 of the UCC) and the securities intermediary’s jurisdiction (within the meaning of
Section 8-110 of the UCC). The Collateral Account Agreement as amended by this First Amendment is ratified, confirmed and approved in all respects. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 4 

 IN WITNESS WHEREOF, the parties have caused this First Amendment to be duly executed by their
officers thereunto duly authorized as of the day and year first above written. 
  
 [FIRST AMENDMENT TO DISBURSEMENT 
 COLLATERAL ACCOUNT AGREEMENT – LVSI] 
  

					
	PLEDGOR:
	
	 LAS VEGAS SANDS, INC., a Nevada corporation

		
	By:	 	/s/    BRADLEY K.
SERWIN        
	 	 	 Name:
	 	Bradley K. Serwin
	 	 	 Title:
	 	General Counsel and Secretary

  

 S - 1 

 [FIRST AMENDMENT TO DISBURSEMENT 
 COLLATERAL ACCOUNT AGREEMENT – VCR] 
  

					
	 VENETIAN CASINO RESORT, LLC,
 a Nevada
limited liability company

		
	By:	 	LAS VEGAS SANDS INC., its managing member
			
	 	 	 By:
	 	/s/    BRADLEY K. SERWIN        
	 	 	 Name:
	 	Bradley K. Serwin
	 	 	 Title:
	 	General Counsel and Secretary

  

 S - 2 

 [FIRST AMENDMENT TO DISBURSEMENT 
 COLLATERAL ACCOUNT AGREEMENT – LCR] 
  

									
	LIDO CASINO RESORT, LLC, a Nevada limited liability company
		
	By:	 	LIDO INTERMEDIATE HOLDING COMPANY, LLC, its managing member
	 	 	By:	 	VENETIAN CASINO RESORT, LLC, its managing member
	 	 	 	 	By:	 	LAS VEGAS SANDS, INC., its managing member
					
	 	 	 	 	 	 	By:	 	/s/    BRADLEY K. SERWIN        
	 	 	 	 	 	 	 Name:
	 	Bradley K. Serwin
	 	 	 	 	 	 	 Title:
	 	General Counsel and Secretary

  

 S - 3 

 [FIRST AMENDMENT TO DISBURSEMENT 
 COLLATERAL ACCOUNT AGREEMENT – Scotia 
  

					
	FINANCIAL INSTITUTION:
	
	THE BANK OF NOVA SCOTIA, a Canadian chartered bank
		
	By:	 	/s/    CHRIS
OSBORN        
	 	 	 Name:
	 	Chris Osborn
	 	 	 Title:
	 	Managing Director

  

 S - 4 

 [FIRST AMENDMENT TO DISBURSEMENT 
 COLLATERAL ACCOUNT AGREEMENT – Scotia] 
  

					
	INTERCREDITOR AGENT:
	
	THE BANK OF NOVA SCOTIA, a Canadian chartered bank, as Intercreditor Agent
		
	By:	 	/s/    CHRIS
OSBORN        
	 	 	 Name:
	 	Chris Osborn
	 	 	 Title:
	 	Managing Director

  

 S - 5OFFER OF FINANCING

 Exhibit 10.2 
  
 March 21st, 2005 
  
 Stockeryale Canada Inc 
 275 Kesmark Street 
 Dollard Des Ormeaux (Qc) 
 H9B 3J1 
  
 Attention: Mark W. Blodgett, Chairman & CEO 
  
 Dear Sir, 
  

	RE:	OFFER OF FINANCING 

  
 We are pleased to present to you the terms and conditions under which National Bank of Canada (the Bank) will make the financing below available to Stockeryale Canada Inc. (the Borrower) totalizing $ CDN
4,725,000; 
  

						
	 “A”
	  	$	2,500,000	  	Operating credit (renewal)
	 “B”
	  	$	1,166,666	  	Term loan (existing)
	 “C”
	  	$	75,000	  	MasterCard Business Card (renewal)
	 “D”
	  	$	150,000	  	Exchange risk operating credit (renewal and increase)
	 “E”
	  	$	2,000,000	  	Term loan (new/ to refinance Facility B)

  
 This Offer of Financing amends the
offer of financing dated March 19, 2004 the whole without novation and derogation, except as hereinafter set forth. 
  

	1.	FACILITY “A” - OPERATING CREDIT 

  

	 	1.1.	Credit Facility 

  
 Subject to the provisions hereof, the Bank agrees to make available to the Borrower an operating credit facility for a principal amount not exceeding CDN
$2,500,000, which is to be used to finance the Borrower’s usual operating requirements. 
  

	 	1.2.	Financing Options 

  
 Subject to the terms and conditions hereof, the Borrower may use and reuse this credit facility, up to the maximum allowed, by means of variable-rate
advances. 
  

	 	1.3.	Interest Rate 

  
 The variable-rate advances shall bear interest, from the time of disbursement until payment in full, at the Canadian Prime rate of the Bank plus 2.00%,
or 6.25% as at the date hereof. Interest shall be calculated daily and payable monthly on the 26th day of each month. 
  

					
	Offer of Financing	 	 	 	Page 2 of 16

  

	 	1.4.	Standby fees 

  
 Standby fees calculated at an annual rate of 0.50% on the unused portion of the operating credit shall be payable monthly by the Borrower.

  

	 	1.5.	Disbursement and Repayment 

  
 The credit facility is repayable on demand and may be reviewed periodically by the Bank, the next review being scheduled on or before April 30,
2006. 
  
 Disbursements and payment shall be made to or
collected in equal multiples of $250,000. 
  

	 	1.6.	Financing Conditions 

  
 Notwithstanding the amount of the credit facility, the aggregate amount of advances shall at no time exceed the total of: 
  

	 	•	 	75% of the Borrower’s net Canadian accounts receivable (excluding holdbacks receivable, contra or inter-company accounts, accounts of doubtful quality and those
aged 90 days or more); and 

  

	 	•	 	65% of the Borrower’s net U.S. accounts receivable (excluding holdbacks receivable, contra or inter-company accounts, accounts of doubtful quality and those aged
90 days or more); and 

  

	 	•	 	85% of the Borrower’s net foreign accounts receivable insured by EDC (excluding holdbacks receivable, contra or inter-company accounts, accounts of doubtful quality and
those aged 90 days or more); and 

  

	 	•	 	25% of the Borrower’s inventory (finished goods and raw materials) up to a maximum amount of $750,000. The Borrower’s inventories will be calculated as declare
goods less a reserve of 500,000$ for obsolete inventories; 

  
 The value of the Borrower’s accounts receivable and inventory shall be established, from time to time, by taking into account claims ranking prior to the security of the Bank. Each month, on the 20th day
of the following month, the Borrower shall furnish to the Bank a detailed list of its accounts receivable by identifying Canadian, American and foreign accounts, a detailed list of its accounts payable according to age, and a detailed list of its
inventory. Fixed monthly fees of $350.00 shall be charged to the Borrower for monitoring accounts receivable and inventory and a monthly fee of $250 shall be charged for the general monitoring of the file. 
  

	2.	FACILITY “B” - TERM LOAN 

  

	 	2.1.	Credit Facility 

  
 Subject to the provisions hereof, the Bank agrees to renew this existing a term loan for an amount of CDN $1,166,666 which is the outstanding
capital balance as to the date of the present offer of financing to finance 60% of the value of the real estate on 275 Kesmark Street at Dollard Des Ormeaux. 
  

					
	Offer of Financing	 	 	 	Page 3 of 16

  

	 	2.2.	Term 

  
 The term of this loan expired June 26th 2008. 
  

	 	2.3.	Interest Rate 

  
 This variable-rate loan shall bear interest from the date of disbursement until payment in full, at the Canadian Prime rate of the Bank plus 2.75 %
or 7.00 % as at the date hereof, calculated daily. Interest shall be payable monthly on the 26th day of each month as of the 26th day of the month following the disbursement. 
  

	 	2.4.	Disbursement 

  
 The Borrower shall use the amount made available to it subject to meeting the conditions specified herein and executing any document that may reasonably
be requested by the Bank, including, but not limited to, a term note. Any sum hereunder which has not been advanced to the Borrower on that date shall no longer be available to the Borrower and the Bank shall have no further obligation to advance
such sum to the Borrower. 
  

	 	2.5.	Repayment 

  
 The Borrower shall repay the principal of this term loan based on equal and consecutive monthly instalments of $19,166.67, which shall be payable
on the 26th day of each month as of the month following the first disbursement. The balance of principal ($419,166.47) interest, fees and incidental charges on the loan shall be repaid in full with the last instalment, namely, on the term expiry
date June 26th 2008, without further notice. 
  

	 	2.6.	Prepayment 

  
 The Borrower may repay all or part of the variable-rate term loan at any time without penalty provided the repayment is from funds generated by the
company or from the proceeds of a capital stock issue. If repayment is directly or indirectly from any other source, a penalty of three months’ interest shall then be payable and deducted by the Bank from the repayment. Partial repayments shall
be applied to the last instalment of principal and/ or interest or to any other sum due by the Borrower, at the Bank’s discretion. 
  

	3.	FACILITY “C” - MASTERCARD BUSINESSCARD 

  
 The MasterCard BusinessCard shall be issued for business development purposes. 
  

					
	Offer of Financing	 	 	 	Page 4 of 16

  

	4.	FACILITY “D” – EXCHANGE RISK OPERATING CREDIT 

  

	 	4.1.	Credit Facility 

  
 Subject to the terms and conditions hereof, the Bank agrees to renew the currency conversion risk facility previously made available to the Borrower for
an amount not exceeding CDN $150,000, which shall serve to enable the Borrower to conclude transactions with the Bank for contracts with respect to the sale or purchase of foreign currencies freely negotiated by the Bank, the whole subject to the
following conditions: 
  

	 	4.1.1.	The Borrower may sell or buy foreign currencies through the Bank, giving prior notice thereof to the Bank, in accordance with the customs and practices of the market, specifying the
amount, currency and effective date of delivery of the chosen currency; 

  

	 	4.1.2.	The maximum amount of foreign currency which the Borrower may sell or buy by reason hereof shall not exceed the permitted amount, as determined hereinafter; the said permitted
amount shall be determined by the Bank by multiplying the face value of the chosen currency by the level of risk, as per the schedule in effect at the Bank expressed as a percentage (for illustration purposes only: chosen currency $50,000 at a risk
level of 10% equals a currency conversion risk amount of $5,000); 

  

	 	4.1.3.	The Borrower undertakes to deposit in its US$ current account held at the Bank sufficient amounts to pay for the foreign currencies bought or sold, no later than on the date of
their delivery, failing which, the Bank shall be authorized to make a variable-rate advance in Canadian dollars under Credit Facility A hereof for an amount equal to the US$ amount necessary to pay for said currencies and any fees and expenses
incurred by the Bank due to insufficient funds in the Borrower’s US$ current account on the date of delivery. 

  
 Moreover, if such advance exceeds the credit amount authorized under Credit Facility A, the Bank shall then be authorized to debit said current account
for an amount equal to such excess amount; all overdrafts in the Borrower’s current account shall bear interest, until payment in full, at the rate on overdrafts prevailing from time to time at the Bank; 
  

	 	4.1.4.	The Borrower shall execute, upon presentation, any agreement, contract, document or other writing required by the Bank, including, without limitation, the International Swap and
Derivatives Association (ISDA) contract, the International Foreign Exchange Master Agreement (IFEMA) and confirmation, as applicable, of such contract, in accordance with the documents in use at the Bank, providing for, inter alia, the terms and
conditions, amount, currency and fees payable to the Bank; 

  

	 	4.1.5.	Acceptance by the Bank of any request for the sale or purchase of foreign currencies is subject to the availability of such funds on the foreign exchange market and approval of each
request is at the Bank’s discretion. 

  

	 	4.2.	Term 

  
 This credit facility may be revised from time to time by the Bank and may be revoked by the Bank at any time. 
  

	5.	FACILITY “E” - TERM LOAN 

  

	 	5.1.	Credit Facility 

  
 Subject to the provisions hereof, the Bank agrees to make available to the Borrower a term loan for an amount of CDN $2,000,000 to refinance and
repay Facility “B” and to reduce the utilization of Facility “A”. 
  

					
	Offer of Financing	 	 	 	Page 5 of 16

  

	 	5.2.	Term 

  
 The term of this loan will expire in 60 months. 
  

	 	5.3.	Interest Rate 

  
 This variable-rate loan shall bear interest from the date of disbursement until payment in full, at the Canadian Prime rate of the Bank plus 2.75%,
or 7.00% as at the date hereof, calculated daily. Interest shall be payable monthly on the 26th day of each month as of the 26th day of the month following the disbursement. 
  

	 	5.4.	Disbursement 

  
 The Borrower shall use the amount made available to it subject to meeting the conditions specified herein and executing any document that may reasonably
be requested by the Bank, including, but not limited to, a term note. Any sum hereunder which has not been advanced to the Borrower on that date shall no longer be available to the Borrower and the Bank shall have no further obligation to advance
such sum to the Borrower. 
  
 The disbursement is conditional
to: 
  

	 	•	 	Presentation of audited financial statements as of December 31, 2004 showing no material change from the draft version. 

  

	 	•	 	Presentation of cumulative first and second quarterly financial statements as of June 30, 2005 showing respect of 80% of sales and net profit projections as of the budget presented
to the Bank. 

  

	 	•	 	Respect of all other terms and conditions. 

  

	 	•	 	Funds will be disbursed to repay Facility “B” and to reduce the utilization of Facility “A”. 

  

	 	5.5.	Repayment  

  
 The Borrower shall repay the principal of this term loan based on 60 equal and consecutive monthly instalments of $33,333.33, which shall be
payable on the 26th day of each month as of the month following the first disbursement. The balance of principal, interest, fees and incidental charges on the loan shall be repaid in full with the last instalment, namely, on the term expiry date,
without further notice. 
  

	 	5.6.	Prepayment 

  
 The Borrower may repay all or part of the variable-rate term loan at any time without penalty provided the repayment is from funds generated by the
company or from the proceeds of a capital stock issue. If repayment is directly or indirectly from any other source, a penalty of three months’ interest shall then be payable and deducted by the Bank from the repayment. Partial repayments shall
be applied to the last instalment of principal and/or interest or to any other sum due by the Borrower, at the Bank’s discretion. 
  

	6.	SECURITY 

  
 As a general and continuing security for the performance by the Borrower of all its obligations, present and future, towards the Bank, including, without
limitation, the repayment of advances 

  

					
	Offer of Financing	 	 	 	Page 6 of 16

  

 
granted hereunder and the payment of interest, fees and incidental charges provided for hereunder and under the security documents, the Borrower undertakes
to grant to the Bank the following security, if deemed satisfactory by the Bank, in accordance with the forms in use at the Bank: 
  

	 	6.1.	Facilities “A & D” 

  

	 	6.1.1.	First-ranking general movable hypothec of $2,600,000 on the universality of the Borrower’s inventory and accounts receivable, present and future, wherever the inventory
and debtors of these receivables are located; 

  

	 	6.1.2.	The security on all goods in inventory under section 427 of the Bank Act; 

  

	 	6.2.	Facility “B” 

  

	 	6.2.1.	First-ranking general immovable hypothec on the land and building of $2,300,000; 

  

	 	6.2.2.	First-ranking general movable hypothec of $2,300,000 on all the customer’s equipment and office furniture, present and future; 

  

	 	6.2.3.	Fired Insurance policy on the building; 

  

	 	6.3.	Facilities “A” and “ B” 

  

	 	6.3.1.	Commitment from the mother-company to refund losses if occurred within 30 days of the bank request; 

  

	 	6.3.2.	Hypothecation of securities on a term deposit in the amount of CDN $250,000 held at the National Bank; 

  
 * At the end of the 2005 financial year, the term deposit of 250,000$ will
be released on presentation of auditor financials statements if the borrower reaches 80% of its projections of sales, EBITDA and net profit, show 3 subsequent quarter of positive EBITDA (June 30, September 30 and December 31) and is in compliance
with other terms and conditions. 
  

	 	6.3.3.	First-ranking general movable hypothec of $ 4,800,000 on all the Client’s corporeal and incorporeal movable property (including intellectual property), present and
future, regardless of the location of such property; 

  

	 	6.3.4.	Subordination agreement of Stockeryale US’s advances. 

  

	 	6.4.	Facility “E” 

  

	 	6.4.1.	First-ranking general immovable hypothec on the land and building of $2,300,000; 

  

	 	6.4.2.	First-ranking general movable hypothec of $2,300,000 on all the customer’s equipment and office furniture, present and future; 

  

	 	6.4.3.	Fired Insurance policy on the building; 

  

					
	Offer of Financing	 	 	 	Page 7 of 16

  

	 	6.5.	Facilities “A” and “E” 

  

	 	6.5.1.	Commitment from the mother-company to refund losses if occurred within 30 days of the bank request; 

  

	 	6.5.2.	Hypothecation of securities on a term deposit in the amount of CDN $250,000 held at the National Bank; 

  
 * At the end of the 2005 financial year, the term deposit of 250,000$ will
be released on presentation of auditor financials statements if the borrower reaches 80% of its projections of sales, EBITDA and net profit, show 3 subsequent quarter of positive EBITDA (June 30, September 30 and December 31) and is in compliance
with other terms and conditions. 
  

	 	6.5.3.	First-ranking general movable hypothec of $4,800,000 on all the Client’s corporeal and incorporeal movable property (including intellectual property), present and
future, regardless of the location of such property; 

  

	 	6.5.4.	Subordination agreement of Stockeryale US’s advances. 

  

	7.	REPRESENTATIONS AND WARRANTIES OF THE BORROWER 

  
 The Borrower represents and warrants to the Bank that: 
  

	 	7.1.	It is a duly constituted or incorporated, and registered and organized business in compliance with the legislation governing it, and that it has the powers, permits and
licenses required to operate its business or enterprise and to own, manage and administer its property; 

  

	 	7.2.	It is not involved in any dispute or legal proceedings likely to materially affect its financial position or its capacity to operate its business; 

 

	 	7.3.	It has valid title to all its goods and property, which have a good market value and are free and clear of any prior claims, mortgages, hypothecs, charges or other similar
encumbrances other than the mortgages, hypothecs and other charges previously granted to the Bank; 

  

	 	7.4.	It is not in default under the contracts to which it is a party or under the applicable legislation and regulations governing the operation of its business or its property,
including, without limitation, all environmental requirements; and 

  

	 	7.5.	Any taxes, assessments, deductions at source, income taxes or other levies, the payment of which is secured by a legal privilege, prior claim or legal hypothec, have been/will be
paid by the Borrower without subrogation or consolidation. 

  

	8.	CONDITIONS PRECEDENT TO ANY DISBURSEMENT OF FUNDS 

  
 Before any disbursement, renewal or maintenance of this credit facility, the Borrower shall meet the following conditions to the satisfaction of the Bank:

  

	 	8.1.	The Borrower shall sign all documents that the Bank may reasonably request in order to give full effect to the provisions hereof; 

  

					
	Offer of Financing	 	 	 	Page 8 of 16

  

	 	8.2.	The Borrower and the guarantors, as applicable, shall meet all of the conditions hereof and execute all documents that the Bank may reasonably request in order to give full
effect to the provisions hereof; 

  

	 	8.3.	All collateral security shall be duly published in accordance with the above-mentioned ranking and any other required formality shall be fulfilled, as applicable;

  

	 	8.4.	The Borrower shall furnish to the Bank any other document, certificate and opinion that it may reasonably require, including, but not limited to, any incorporating instrument
related to the Borrower and the guarantor, and any other document and opinion related to the hypothecated property, as applicable; 

  

	 	8.5.	The Borrower shall present its audited financial statements dated December 31, 2003 showing no material change compared to the in-house financial statements

  

	9.	POSITIVE COVENANTS 

  
 During the entire term of this financing agreement, the Borrower shall: 
  

	 	9.1.	Use the proceeds of the financing for the purposes provided for herein; 

  

	 	9.2.	Operate its business in a diligent and continuous manner; 

  

	 	9.3.	Keep and maintain proper books of account and other accounting records in accordance with generally accepted accounting principles; 

  

	 	9.4.	Furnish to the Bank its internal quarterly financial statements within 20 days of the end of each quarter; 

  

	 	9.5.	Furnish to the Bank two copies of its audited annual financial statements within 90 days of the end of its fiscal year; 

  

	 	9.6.	At all times, give the Bank’s representatives the right to inspect its establishments and provide access thereto, and further permit the Bank’s representatives to examine
its books of account and other records, and take excerpts therefrom or make copies thereof; 

  

	 	9.7.	Maintain, at all times, insurance coverage on its property against loss or damage caused by fire and any other risk as is customarily maintained by companies carrying on a similar
business; 

  

	 	9.8.	Maintain, at the end of each quarter for the duration of this financing agreement, the following financial ratios: 

  

	 	9.8.1.	a working capital ratio greater than 1.25:1 at all time; this is defined as total current assets over total current liabilities; 

  

	 	9.8.2.	net worth greater than or equal to $9,250,000 at all time and a ratio of total debt to tangible network of less than 1.0.1; net worth is defined as total shareholder equity
and advances subordinated to the Bank less advances to directors and affiliated companies, less intangible assets; 

  

					
	Offer of Financing	 	 	 	Page 9 of 16

  

	 	9.8.3.	maximum of $ 75,000 in capital expenditures (to be maintained from January 1st, 2005) 

  

	 	9.8.4.	a minimum coverage ratio of 1.1 ( EBITDA - non financed CAPEX - Dividends / Capital + Interest) at December 31, 2005 and thereafter; 

  

	 	9.9.	Pay, when due, all taxes, assessments, deductions at source, income tax or levies for which payment is guaranteed by legal privilege or legal hypothec, without subrogation or
consolidation; 

  

	 	9.10.	Furnish to the Bank any other document that it may reasonably require; 

  

	 	9.11.	Conduct all or the greater part of its banking business with the Bank; 

  

	 	9.12.	Obtain and maintain in effect the permits and licences required for the operation of its company; 

  

	 	9.13.	Notify the Bank forthwith of any default or event which, following a notice or on expiry of a deadline, could constitute an event of default. 

  

	10.	NEGATIVE COVENANTS 

  
 The Borrower undertakes to refrain from carrying out the following transactions or operations without obtaining the prior written consent of the Bank:

  

	 	10.1.	Materially change the nature of its operations or business; 

  

	 	10.2.	Change the control of the company, merge with another company, dissolve or wind up the company; 

  

	 	10.3.	Create or permit the existence of security interests in property granted as security to the Bank; 

  

	 	10.4.	Grant advances to its officers, directors, shareholders or persons with no relation to the normal course of its business; 

  

	 	10.5.	Grant financial assistance, an investment or a guarantee on behalf a third party; 

  

	 	10.6.	Declare or pay out dividends on its shares, purchase or sell its shares, or otherwise reduce its capital. 

  

	11.	ENVIRONMENTAL OBLIGATIONS 

  

	 	11.1.	The Borrower shall comply with the requirements of all legislative and regulatory environmental provisions (the “Environmental Requirements”) and shall at all times
maintain the authorizations, permits and certificates required under these provisions. 

  

	 	11.2.	 The Borrower shall immediately notify the Bank in the event a contaminant spill or emission occurs or is discovered with respect to its property, operations or
those of any neighbouring property. In addition, it shall report to the Bank forthwith any notice, order, 

  

					
	Offer of Financing	 	 	 	Page 10 of 16

  

	 	 
decree or fine that it may receive or be ordered to pay with respect to the Environmental Requirements relating to its business or property.

  

	 	11.3.	At the request of and in accordance with the conditions set forth by the Bank, the Borrower shall, at its own cost, provide any information or document which the Bank may require
with respect to its environmental situation, including any study or report prepared by a firm acceptable to the Bank. In the event that such studies or reports reveal that any Environmental Requirements are not being respected, the Borrower shall
effect the necessary work to ensure that its business and property comply with the Environmental Requirements within a period acceptable to the Bank. 

  

	 	11.4.	The Borrower undertakes to indemnify the Bank for any damage which the Bank may suffer or any liability which it may incur as a result of any non-compliance with Environmental
Requirements. 

  

	 	11.5.	The provisions, undertakings and indemnification set out in this section shall survive the satisfaction and release of the security, and payment and satisfaction of the indebtedness
and liability of the Borrower to the Bank pursuant to the terms hereof. 

  

	12.	DEFAULT 

  
 12.1. Events of Default 
  
 The occurrence of one or more of the following events shall constitute a default under this Offer: 
  

	 	12.1.1.	If the Borrower fails to make a payment of principal, interest, fees, incidental charges or any other amount which may become due hereunder or under any of the security documents,
when they become due and payable; 

  

	 	12.1.2.	If the Borrower and/or the guarantors fail to perform or otherwise breach any obligation hereunder or pursuant to any of the security documents or any other related document;

  

	 	12.1.3.	If the Borrower and/or any guarantor, if applicable, becomes insolvent, bankrupt or is in the process of winding up, assigns its assets for the benefit of its creditors, files a
proposal or gives notice of its intention to file such proposal or if a material, adverse change occurs in the financial position or operations of the Borrower; 

  

	 	12.1.4.	If proceedings are instituted by the Borrower and/or any guarantor, if applicable, or a third party for the Borrower’s and/or any guarantor’s dissolution, winding-up or
reorganization of its operations or the arrangement or readjustment of its debts; 

  

	 	12.1.5.	If a creditor, trustee in bankruptcy, sequestrator, receiver or trustee takes possession of the Borrower’s and/or any guarantor’s assets or, in the opinion of the Bank, a
major portion thereof or if such assets are subject to a prior notice of the exercise of a hypothecary right or a notice to withdraw authorization to collect claims or are seized; 

  

	 	12.1.6.	 If the Borrower and/or any guarantor is in default under the terms of any other 

  

					
	Offer of Financing	 	 	 	Page 11 of 16

  

	 	 
contracts, agreements or writings with the Bank or any other bank or financial institution or any other creditor with rights to the assets of the Borrower
and/or any guarantor, as applicable; 

  

	 	12.1.7.	If any representation or warranty made by the Borrower and/or any guarantor herein or in a security document or any other document furnished to the Bank in connection herewith
proves to be incorrect or erroneous; or 

  

	 	12.1.8.	If the Bank receives from any present or future guarantor a notice proposing to terminate, limit or otherwise modify such guarantor’s liability hereunder, under a security
document, or under any other related document. 

  

	 	12.2.	Rights and Remedies of the Bank in the Event of Default 

  
 Subject to its other rights and remedies, in the event of default: 
  

	 	12.2.1.	The Bank may declare due and payable all of the Borrower’s monetary obligations that have not matured and may claim from the Borrower and/or any guarantor, without any other
notice, the immediate payment of principal, interest, fees and incidental charges, including all the expenses incurred by the Bank for the purposes of collecting or protecting the debt, and the execution of any other obligation of the Borrower
and/or any guarantor; 

  

	 	12.2.2.	The Borrower shall lose all rights and privileges hereunder, including, but not limited to, the right to receive additional advances; 

  

	 	12.2.3.	The Bank may charge the Borrower reasonable fees for analysis, administration and follow-up and may even incur and pay any reasonable sum for services rendered (including legal,
accounting and any other professional fees for which services may be required or deemed necessary) in relation to the realization, sale, transfer, delivery or payment to be made with respect to exercising all security held by the Bank and may retain
such fees and disbursements from the proceeds of the realization of security; 

  

	 	12.2.4.	Any amount collected or received by the Bank, including the balance of the proceeds of any security realized, may be retained by the Bank and may, at the Bank’s option, be
applied to any part of the debt owed by the Borrower to the Bank; 

  

	 	12.2.5.	Any sum incurred and paid by the Bank in order to realize, protect or preserve any security pledged by the Borrower to the Bank under this agreement or required by law shall bear
interest at the Canadian Prime rate of the Bank, plus 3% annually until said sum is paid; 

  

	 	12.2.6.	The foregoing provisions shall be applied regardless of whether any of the bearers of bankers’ acceptances, issued under the terms and conditions hereof, has requested full or
partial payment or has requested only partial payment from the Bank. 

  

					
	Offer of Financing	 	 	 	Page 12 of 16

  

	 	12.3.	Waiver, Omission and Cumulative Remedies 

  

	 	12.3.1.	The Bank may set deadlines, take or waive security, accept compromises, grant a discharge and recognition of cancellation and do business with the Borrower as it deems appropriate
without such action reducing the Borrower’s responsibility or affecting the rights of the Bank with respect to the security provided hereunder. 

  

	 	12.3.2.	Any omission on the part of the Bank to notify the Borrower and/or any guarantor of any case of default under the terms and conditions hereof or to exercise its rights hereunder
shall not be considered a waiver on the part of the Bank of its right to exercise its recourse in such case of default or to exercise any right. 

  

	 	12.3.3.	Acceptance by the Bank, following a default by the Borrower, of an amount owed to it, or the exercise by the Bank of any recourse or right shall not prevent the Bank from exercising
any other right or recourse, the rights and recourses of the Bank being cumulative and non-interchangeable, and in addition to and not in substitution of, any other right or recourse by the Bank, whether by agreement or otherwise provided for by
law. 

  

	13.	SUNDRY 

  

	 	13.1.	Definitions 

  
 For the purposes hereof, the terms and expressions hereinafter listed shall be defined as follows: 
  
 “Canadian prime rate” means the annual variable
interest rate published by the Bank from time to time and used by the Bank to determine the interest rates on commercial loans granted by it in Canadian dollars in Canada. 
  

	 	13.2.	Accounting Terms 

  
 Each accounting term used herein shall have the meaning ascribed to it in accordance with the generally accepted accounting principles of the Canadian
Institute of Chartered Accountants. 
  

	 	13.3.	Currency and Place of Payment 

  
 All sums due by the Borrower hereunder must be paid by the Borrower to the Bank in Canadian dollars. 
  

	 	13.4.	Calculation of Interest and Arrears 

  

	 	13.4.1.	Unless otherwise provided for herein, interest on any amount due hereunder shall be calculated daily and not in advance on the basis of a 365-day year. 

  

	 	13.4.2.	For the purposes of the Interest Act (Canada) in the case of a leap year, the annual interest rate corresponding to the interest calculated on the basis of a 365-day year is equal
to the interest rate thus calculated multiplied by 366 and divided by 365. 

  

					
	Offer of Financing	 	 	 	Page 13 of 16

  

	 	13.4.3.	 Any amount of principal, interest, commission or discount or an amount of any other nature remaining unpaid at maturity shall bear interest at the rate provided for herein, it
being understood that said interest rate on arrears shall not exceed the maximum rate provided for by law, if applicable. 

  

	 	13.4.4.	 Interest on arrears shall be compounded monthly and payable on demand. 

  

	 	13.5.	 Additional Charges 

  
 The Borrower undertakes to pay the Bank the charges below, as determined by the Bank: 
  

	 	13.5.1. 	In the event that a law, regulation, administrative policy or guideline results in an increase in the cost of credit for the Bank (particularly as a result of the imposition of
reserves, taxes or requirements with respect to the Bank’s capital adequacy), the Borrower shall pay this additional cost on demand; and 

  

	 	13.5.2. 	The Borrower shall pay all taxes or additional charges that could result from the application of the goods and services tax (Canada), the provincial sales tax (Quebec), or any other
similar federal, provincial or municipal law. 

  

	 	13.6. 	Assignment 

  
 No rights or obligations of the Borrower hereunder and no proceeds of the loan may be transferred or assigned by the Borrower. Any such transfer or
assignment shall be null and void insofar as the Bank is concerned and shall render any balance then outstanding on the loan immediately due and payable at the Bank’s option and release the Bank from any and all obligations of making any
further advances hereunder. 
  

	 	13.7. 	Records 

  
 The Bank shall keep records evidencing the transactions performed hereunder. Such records shall be presumed to reflect these transactions and shall
constitute conclusive evidence of the amounts due to the Bank. 
  

	 	13.8. 	Account Debits 

  
 The Borrower irrevocably authorizes the Bank to debit periodically or from time to time any bank account it maintains at the Bank in order to pay all or
part of the amounts it may owe to the Bank hereunder. 
  

	 	13.9.	 Non-Business Day 

  
 If the date provided for an instalment of principal or interest hereunder is not a business day, such instalment shall be paid on the first business day
thereafter. 
  

	 	13.10. 	Final Agreement 

  
 Upon its acceptance and execution by the Borrower, this Offer shall constitute the final agreement between the parties, with the exception of any
subsequent written amendments agreed to by the parties, and shall supersede any other previous verbal or written agreement between the parties with respect to the financing provided for herein. 
  

					
	Offer of Financing	 	 	 	Page 14 of 16

  

 Notwithstanding the foregoing, this Offer does not create novation or an exception to the mortgages,
hypothecs, rights and remedies of the Bank under the deeds, notes and security documents required hereunder which were signed by the Borrower or the guarantor prior to the date hereof. The Borrower hereby acknowledges and declares that the
mortgages, hypothecs, rights and remedies of the Bank under said deeds, notes and security documents have not been amended and that they secure its obligations hereunder. 
  

	 	13.11.	 Other Documents 

  
 The Borrower and the guarantors, if applicable, shall do all things and execute all documents deemed necessary or appropriate by the Bank for the purposes
of giving full force and effect to the terms, conditions, undertakings and security granted or to be granted hereunder. 
  

	 	13.12.	 Joint and Several Liability/Solidarity 

  
 If more than one person is designated as the Borrower or the guarantor, each such person shall be jointly and severally or solidarity liable for the
obligations set out herein and in the security documents. 
  

	 	13.13.	 Validity of Provisions Hereof 

  
 Any court decision to the effect that any of the provisions hereof is null or void in no way affects the remaining provisions hereof or their validity or
executory force. 
  

	 	13.14.	 Review 

  
 The terms and conditions of the credits granted by the Bank to the Borrower hereunder are subject to a periodic review, at the Bank’s discretion.

  

	 	13.15.	 Amendments 

  
 Any amendment to this Offer or resulting waiver of a right hereunder is without effect unless it is explicitly stated in a written document signed by the
parties. 
  

	 	13.16.	 Copies 

  
 This Offer may be signed in an indeterminate number of copies, each of which is deemed to constitute an original, but all of which constitute a single
document. 
  

	14.	ACCESS TO INFORMATION 

  
 The Borrower and the guarantors hereby authorize any personal information agent, financial institution, creditor, tax authority, employer or any other
person, including any public entity, holding information concerning the Borrower or its assets, more particularly any financial information or information with respect to any undertaking or suretyship given by the Borrower, to supply such
information to the Bank in order to verify the accuracy of all information furnished or to be furnished from time to time to the Bank and to ensure the solvency of the Borrower at all times. 
  

					
	Offer of Financing	 	 	 	Page 15 of 16

  

	15.	FEES 

  
 Non-refundable fees of $35,000 shall be payable upon acceptance of this Offer. 
  
 Notwithstanding the foregoing, during the formal annual review of the Borrower’s credit(s), the Bank may, subject to
the Borrower’s acceptance of the renewal offer, amend the amount of said fees and apply them retroactively to the anniversary date of the previous renewal. 
  
 Any fees and legal costs incurred in the preparation and registration or publication of the security documents and any other
document related thereto shall be payable by the Borrower whether or not the financing is completed. 
  
 A monthly late fee of $100.00 shall be automatically collected if the interim financial statements and/or lists of receivables and inventories are
not produced by the prescribed date, i.e., no later than the 20th day of the following month. 
  
 If, during a given month, the Bank temporarily tolerates a deficit in the security coverage of the Borrower’s advances in the form of accounts receivable and inventories, such deficit shall be tolerated as an
overdraft at a rate of 21%. 
  
 Annual review fees shall be
collected on the review date for analyzing annual financial statements and for verifying that the conditions of the authorization and Offer of Financing are being respected. 
  

	16.	GOVERNING LAW 

  
 This Offer shall be construed and governed in accordance with the laws of the Province of Quebec. 
  
 If this Offer is satisfactory, please indicate your approval by returning to
us the copy attached in this regard, duly signed and initialled on each page, before 5:00 p.m. on March 30, 2005. After that date, the Bank reserves the right to cancel or modify this Offer, without notice. 
  
 We trust that our financial support will contribute to the success of your
company. 
  
 Yours very truly, 
  
 [GRAPHIC] 
  

									
				
	By:	 	 /s/ Manon Daigneault
	 	 	 	 /s/ Jean-Guy Paris

	 	 	 Manon Daigneault
	 	 	 	 Jean-Guy Paris

	 	 	 Account Manager
	 	 	 	 Senior Manager

  

					
	Offer of Financing	 	 	 	Page 16 of 16

  

 ACCEPTANCE 
  
 We declare that we have read this Offer of Financing dated March 21st, 2005 and we accept the terms, conditions and obligations hereof. 
  
 Executed at 275 Kesmark, province of Quebec, this 22 day of March,
2005. 
  

					
	Stockeryale Canada Inc.
		
	By:	 	 /s/ Mark W. Blodgett

	 	 	 By:
	 	 Mark W. Blodgett

	 	 	 Title:
	 	 President

  
 COMMITMENT FROM STOCKERYALE

  
 We declare that we have read clause of this Offer of financing and we
accept the terms and conditions 
  

					
	Stockeryale Inc.
		
	By:	 	 /s/ Mark W. Blodgett

	 	 	 By:
	 	 Mark W. Blodgett

	 	 	 Title:
	 	 Chairman and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]