Document:

<PAGE>

                                                                    Exhibit 4.12
FLEET NATIONAL BANK                                               LOAN AGREEMENT

        THIS AGREEMENT made this 28th day of June, 2002, by and between General
Scanning, Inc. ("General Scanning"), a Massachusetts corporation and GSI
Lumonics Corporation ("GSI"), a Michigan corporation, each with an address and
principal place of business at 39 Manning Road, Billerica, Massachusetts (each
and together, hereinafter called the "Borrower") and Fleet National Bank, a
national banking organization organized and existing under the laws of the
United States of America, with a usual place of business at 100 Federal Street,
Boston, Massachusetts (hereinafter called the "Bank").

                              W I T N E S S E T H :

        The following constitutes the agreement of the parties:

                                    SECTION 1

                     AMOUNT AND TERMS OF CREDIT AND INTEREST

                               THE REVOLVING LOAN

        1.1     Subject to the terms and conditions of this Agreement, the Bank
hereby establishes a revolving line of credit of up to $8,000,000.00 (the
"Revolving Loan") to be advanced as hereinafter provided. The Bank may, in its
discretion, from time to time, make advances or issue letters of credit for
which a fee of one (1.0%) percent (i.e. one hundred basis points) shall be
charged for Standby Letters of Credit (such Standby Letters of Credit not to
exceed the aggregate amount of $3,000,000.00) comprising the Revolving Loan, all
of which shall be called "Loans" hereunder to the Borrower upon the Borrower's
request; provided, however, that no advance will be made if or letter of credit
issued, after giving effect to the Borrower's request for such advance or Letter
of Credit, the outstanding principal balance of the Revolving Loan would exceed
the lesser of:

        (a)     $8,000,000.00 (the "Credit Limit") or

        (b)     eighty (80%) of the face or fair market value at the time of
                such determination, as reported in any widely distributed
                standard price quotation or, in the absence of such a quotation,
                as reasonably determined by Bank of the marketable securities or
                other investment vehicles held at the Bank in the name of the
                Borrower and pledged to the Bank, as determined by Bank; minus

        (c)     one hundred (100%) percent of the aggregate amount then undrawn
                on all standby Letters of Credit and acceptances pursuant to
                this Agreement for the account of the Borrower ((b) minus (c) is
                hereinafter called the "Borrowing Base.")

<PAGE>

        1.2     Interest on advances under the Revolving Loan shall be payable
monthly in arrears commencing on the first day of the first month next
succeeding the date hereof at the rates set forth in the Revolving Note (as
defined herein). Interest shall be computed on the basis of a 360-day year, for
the actual number of days elapsed. Default interest shall be charged in
accordance with the terms of the Revolving Note (as defined herein).

        1.3     The principal balance of the Revolving Loan shall be payable on
the Termination Date (as defined below). On any date on which a payment of
interest or principal is due hereunder, the Bank may charge the Borrower's
demand deposit account(s) with the amount thereof. The failure of the Bank so to
charge such account shall not relieve the Borrower of its obligations to make
payments hereunder.

        1.4     As evidence of the Borrower's obligations under the Revolving
Loan, the Borrower shall execute and deliver to the Bank a Secured Revolving
Time Note (the "Revolving Note") of even date herewith.

        1.5     The Bank need not enter payments of interest and principal upon
the Revolving Note but may maintain a record thereof on a separate ledger
maintained by the Bank.

        1.6     No advance under the Revolving Loan will be made after June 27,
2003 (the "Expiration Date"), or the date demand for payment is made, whichever
is sooner, and the entire unpaid principal balance of the Revolving Loan,
together with all unpaid interest accrued thereon and all accrued and unpaid
fees, if any, shall be due and payable without notice or demand on June 27, 2003
(the "Termination Date") if demand for payment is not sooner made.

        1.7     Prior to the close of the Bank's business on the Expiration
Date, the Borrower may repay, in whole or in part, the principal amount of the
Revolving Loan and may, in the Bank's discretion, reborrow any such amounts
repaid, all in accordance with this Section 1. If, at any time, the unpaid
principal balance of the Revolving Loan exceeds the Borrowing Base or the Credit
Limit, the Borrower shall immediately pay to the Bank the amount of such excess
without notice or demand.

        1.8     The Bank may, at any time and from time to time, upon the
request of the Borrower, but in the Bank's sole and absolute discretion, extend
either or both of the Expiration Date and the Termination Date.

        1.9     The Revolving Note is incorporated herein to the same extent as
if it was set forth in full in this Agreement.

        1.10    All of the Borrower's obligations to the Bank, of every kind and
description, including those arising under this Agreement, direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising,
regardless of how they arise or by what agreement or instrument they may be
evidenced, including those arising under any other agreements, instruments or
documents executed in conjunction herewith, or whether evidenced by an

                                        2

<PAGE>

agreement or instrument, including obligations to perform acts and refrain from
taking action, as well as obligations to repay the Loans, shall constitute the
Borrower's "Liabilities" to the Bank, as the same may be modified, amended,
replaced or extended from time to time.

        1.11    If after the date hereof, Bank determines that (i) the adoption
of any applicable law, rule, or regulation regarding capital requirements for
banks, bank holding companies or trust companies or the subsidiaries thereof,
(ii) any change in the interpretation or administration of any such law, rule or
regulation by any governmental authority, central bank, or comparable agency
charged with the interpretation or administration thereof, or (iii) compliance
by Bank or its holding company with any request or directive of any such
governmental authority, central bank or comparable agency regarding capital
adequacy (whether or not having the force of law), has the effect of reducing
the rate of return on Bank's capital to a level below that which Bank could have
achieved (taking into consideration Bank's and its holding company's policies
with respect to capital adequacy immediately before such adoption, change, or
compliance and assuming that Bank's capital was fully utilized prior to such
adoption, change, or compliance) but for such adoption, change, or compliance as
a consequence of Bank's commitment to make advances pursuant hereto by any
amount deemed by Bank to be material:

        (a)     Bank shall promptly, after Bank's determination of such
                occurrence, give notice thereof to Borrower; and

        (b)     Borrower shall pay to Bank as an additional fee from time to
                time, on demand, such amount as Bank certified to be the amount
                that will compensate Bank for such reduction.

        A certificate of Bank claiming entitlement to compensation as set forth
above will be conclusive in the absence of manifest error. Such certificate will
set forth the nature of the occurrence giving rise to such compensation, the
additional amount or amounts to be paid to Bank, and the method by which such
amounts were determined. In determining such amount, Bank may use any reasonable
averaging and attribution method, commonly used in the industry.

                                    SECTION 2

                         WARRANTIES AND REPRESENTATIONS

        2.1     To induce the Bank to enter into this Loan Agreement and to make
the Loans, each Borrower warrants and represents that, as of this date:

        (a)     General Scanning Inc. is a duly organized and existing
                corporation under the laws of the Commonwealth of Massachusetts,
                GSI is a duly organized and existing corporation under the laws
                of the State of Michigan and each Borrower is in good standing
                under the laws of the Commonwealth of Massachusetts.

                                        3

<PAGE>

        (b)     The Borrower has good and clear record and marketable title to
                all properties and assets which it purports to own, free and
                clear of all mortgages, liens, pledges, charges, security
                interests and encumbrances, other than those being granted to
                the Bank, if any, and those reflected on Exhibit A attached
                hereto.

        (c)     The Borrower owns and holds or leases or licenses all real,
                personal and intellectual property necessary to conduct of its
                current business, including, without limitation, patents,
                trademarks, service marks, trade names, copyrights and licenses
                and other rights with respect to the foregoing.

        (d)     All books and records of GSI, including, but not limited to,
                minute books, by-laws and books of account are accurate in all
                material respects and reflect all material matters and
                transactions which should currently be reflected therein which
                would have a material and adverse affect on the business,
                properties or financial condition of the Borrower.

        (e)     The general nature of the Borrower's business is as set forth on
                Exhibit A attached hereto.

        (f)     The Borrower has no subsidiaries and no investments in the stock
                or securities of any other corporation, firm, trust or other
                entity, except as set forth on Exhibit A.

        (g)     Except as set forth on Exhibit A, there are no actions, suits,
                investigations or proceedings pending, or to the knowledge of
                the Borrower threatened, against the Borrower or any of its
                properties in any court, before any governmental authority,
                arbitration board, or any other tribunal which, singly or in the
                aggregate, if decided adversely to the Borrower, would
                materially and adversely affect the business, properties or
                financial condition of the Borrower. The Borrower is not, nor by
                execution and delivery of this Agreement and the performance of
                its obligations hereunder (with or without the passage of time)
                will the Borrower be in default with respect to any order of any
                court, governmental authority, arbitration board or other
                tribunal, which would materially and adversely affect the
                business, properties or financial condition of the Borrower.

        (h)     The Borrower has furnished to the Bank the financial statements
                for the time period indicated on Exhibit A attached hereto. Said
                statements fairly present the condition of the Borrower at the
                dates thereof, and the statements of operation contained therein
                fairly present the results of the operations of the Borrower for
                the periods indicated, all in conformity with generally accepted
                accounting principles consistently applied.

        (i)     Except to the extent reflected or reserved against in the
                financial statements referred to above, the Borrower, as of the
                date of said financial statements, had no

                                        4

<PAGE>

                liabilities of any nature, whether accrued, absolute, contingent
                or otherwise, including, without limitation, tax liabilities,
                due or to become due, or arising out of transactions entered
                into or any state of facts existing prior thereto, which singly
                or in the aggregate would materially and adversely affect the
                business, properties or financial condition of the Borrower.

        (j)     Since the date of the financial statements referred to in
                Section 2.1(i), and except as shown on Exhibit A, there has not
                been:

                (i)     any change in the condition of the Borrower's assets or
                        liabilities, other than changes in its ordinary course
                        of business, none of which has been materially adverse
                        to the business or financial condition of the Borrower,
                        nor has there been any depletion of cash or decrease of
                        working capital which has been materially adverse to the
                        business or financial condition of the Borrower;

                (ii)    any damage, destruction or loss, whether or not covered
                        by insurance, materially and adversely affecting the
                        Borrower's properties or business; or

                (iii)   any :

                        (1)     controversy with any labor organization or
                                employees;

                        (2)     claim or controversy involving any federal,
                                state or local governmental agencies; or

                        (3)     other event or condition

                        which would materially and adversely affect the business
                        or properties of the Borrower.

        (k)     The Borrower has filed all federal and state income tax returns,
                excise tax returns, and all other tax returns of every kind and
                nature which are required to be filed by the Borrower as of the
                date hereof and has paid all taxes shown to be due on said
                returns, which failure to file or pay would have a material and
                adverse affect on the business or properties of the Borrower.

        (l)     The Borrower keeps all records concerning its accounts (as said
                term is defined in the Massachusetts Uniform Commercial Code)
                and has its chief executive office and principal place of
                business at the address set forth at the beginning of the
                Agreement. The Borrower has no other addresses at which the
                Borrower has an office, conducts business or at which any of the
                Borrower's property is located except as set forth on Exhibit A.

                                        5

<PAGE>

        (m)     The execution and delivery of this Agreement, the borrowing by
                the Borrower as herein provided, the execution and delivery by
                the Borrower of all instruments, agreements and documents of
                every kind and nature pursuant hereto and the performance by the
                Borrower of all of its obligations to the Bank hereunder have
                been duly authorized by the Board of Directors of the Borrower
                and, to the extent required by law or otherwise, by the
                Borrower's stockholders and this Agreement and all instruments,
                agreements and documents executed pursuant hereto are valid and
                binding obligations of the Borrower.

        (n)     To the best of Borrowers' knowledge, there is no provision in
                the articles of organization, agreement of association or the
                by-laws of the Borrower, or any indenture, contract or agreement
                to which it is a party or by which it is bound, which prohibits
                the execution and delivery of this Agreement or the performance
                by the Borrower of its obligations hereunder.

        (o)     To the best of Borrowers' knowledge, no event has occurred and
                no condition exists, which, upon the execution and delivery of
                this Agreement would constitute a default or an Event of Default
                hereunder, which would have a material and adverse affect on the
                business or financial condition of the Borrower. To the best of
                Borrowers' knowledge, neither the nature of the Borrower or any
                of its business or properties, nor any relationships between the
                Borrower and any other person, nor any circumstances in
                connection with the execution or delivery of this Agreement, is
                such as to require a consent, approval, or authorization of or
                filing, registration, or qualification with, any governmental
                authority on the part of the Borrower as a condition of the
                execution and delivery of this Agreement or any other
                instrument, agreement or document contemplated hereby, or the
                performance by the Borrower of its obligations hereunder or
                thereunder.

        (p)     The Borrower has no pension, profit sharing, stock option,
                Employee Stock Ownership Trust ("ESOT"), insurance or other
                similar plan providing for a program of deferred compensation or
                benefits for any employee or officer, except as indicated on
                Exhibit A hereto.

                                    SECTION 3

                              AFFIRMATIVE COVENANTS

        3.1     The Borrower will duly and punctually pay all interest and
principal becoming due to the Bank and will duly and punctually perform all
things on its part to be done or performed under this Agreement, or pursuant to
any instrument, document or agreement executed pursuant hereto.

                                        6

<PAGE>

        3.2     The Borrower will, at all times, keep proper books of account in
which full, true and correct entries will be made of its transactions in
accordance with generally accepted accounting principles consistently applied.

        3.3     The Borrower will, at all reasonable times upon prior notice,
make its books and records available, in its offices, for inspection,
examination and copying by the Bank and the Bank's representatives and will,
upon reasonable advance notice and at all reasonable times, permit inspection of
its properties by the Bank and the Bank's representatives.

        3.4     The Borrower will, from time to time, furnish the Bank with such
information and statements as the Bank may reasonably request and with copies of
all financial statements and reports that it shall send or make available to its
stockholders.

        3.5     GSI shall furnish the Bank quarterly, within sixty (60) days
after the close of each fiscal quarter, a consolidated balance sheet and income
and surplus statement reflecting the financial condition of GSI at the end of
each such period and the results of its operation during each such period. Each
statement shall also contain comparative statements for the same period during
the prior fiscal year. Each balance sheet and income and surplus statement is to
be certified by the President or Chief Financial Officer of GSI, such
certification to state that such balance sheet and income and surplus statement
fairly present the financial condition and the result of operations of GSI at
the end of such period and during such period in accordance with generally
accepted accounting principles consistently applied, subject, however, to
ordinary year-end adjustments, none of which will be materially adverse to the
business or financial condition of the Borrower.

        3.6     GSI shall furnish the Bank annually, within ninety (90) days
after the close of each fiscal year, a balance sheet and income and surplus
statement reflecting the financial condition of GSI at the end of each such
fiscal year and the results of its operation during such fiscal year. Each such
statement shall also contain comparative statements for the prior fiscal year.
Each such balance sheet and income and surplus statement is to be audited by an
independent certified public accountant satisfactory to the Bank with an audit
quality statement to be issued by the accountant and signed by the President
and/or Chief Financial Officer representing that neither the accounting firm nor
the President and/or Chief Financial Officer of the Borrower is aware of any
material modifications necessary to the financial statements for them to be in
conformity with generally accepted accounting principles consistently applied.

        3.7     GSI will, on a quarterly basis, within sixty (60) days of the
end of each fiscal quarter, deliver to the Bank certificates signed by its
President or Chief Financial Officer (in the form of Exhibit B attached hereto)
certifying that each such officer has reviewed the provisions of this Agreement
(including, without limitation, the financial covenants contained in this
Agreement, to the extent they are being tested at that time) and stating in his
opinion, if such be the fact, that the Borrower has not been and is not in
default as to any of the material covenants and agreements of the Borrower
contained in this Agreement, or in the event of any such default, setting forth
the details thereof.

                                        7

<PAGE>

        3.8     The Borrower shall make its books and records available to the
Bank for audit at any time and from time to time at the Bank's discretion and
upon reasonable notice and at the Borrower's expense.

        3.9     The Borrower will maintain its corporate existence in good
standing, comply with all laws and regulations of the United States, of any
state or states thereof, of any political subdivision thereof and of any
governmental authority which may be applicable to the Borrower or to the
Borrower's business.

        3.10    The Borrower will pay all real and personal property taxes,
assessments and charges and all franchise, income, unemployment, old age
benefit, withholding, sales and other taxes assessed against it or payable by it
at such times and in such manner to prevent any lien or charge from attaching to
its properties. The provisions of this section, however, shall not preclude the
Borrower from contesting in good faith and diligently prosecuting any such tax,
provided, however, that the Borrower shall, upon request of the Bank, deposit
with the Bank funds sufficient to discharge such tax in the event such contest
is resolved against the Borrower. The Borrower shall not be in default under
this Section by reason of the existence of a lien for taxes not then due.

        3.11    The Borrower will put and maintain its properties in good
repair, working condition and order and, from time to time, make all needful and
proper repairs, renewals and replacements.

        3.12    The Borrower will maintain insurance at all times covering such
risks and in such amounts as the Bank may reasonably require in accordance with
industry standards, all such insurance to be in such form and for such periods
and written by such companies as shall be reasonably acceptable to the Bank.

        3.13    The Borrower will pay or reimburse the Bank, on demand, for all
expenses (including, without limitation, reasonable counsel fees and expenses)
incurred or paid by the Bank in connection with the preparation, amendment,
interpretation, extension or negotiation of this Agreement, and any instrument,
agreement or document to be delivered pursuant hereto; the enforcement by the
Bank of its rights as against the Borrower or any other person primarily or
secondarily liable to the Bank hereunder or thereunder; the administration,
supervision, protection or realization on any Collateral held by the Bank as
security for any obligation of the Borrower or any other person primarily or
secondarily liable with respect thereto and in the defense of any action against
the Bank with respect to its rights or liabilities hereunder or thereunder.

        3.14    To prevent any lien or charge from attaching to its properties,
the Borrower will punctually and promptly make all payments and perform all
other obligations which may be required of it with respect to any indebtedness
(whether for money borrowed, goods purchased, services rendered or however such
indebtedness may otherwise arise) owing to persons, firms or

                                        8

<PAGE>

corporations other than the Bank, including, without limitation, indebtedness
which may be secured by a security interest in assets of the Borrower or
property of the Borrower, and all obligations under the terms of any lease in
which the Borrower is the lessee. The provisions of this section shall not
preclude the Borrower from contesting in good faith and diligently prosecuting
any such indebtedness or obligation.

        3.15    The Borrower shall pay or cause to be paid when due all amounts
necessary to fund in accordance with their terms all the Borrower's deferred
compensation plans whether now in existence or hereafter created, and the
Borrower will not withdraw from participation in, permit the termination or
partial termination of, or permit the occurrence of any other event with respect
to any deferred compensation plan maintained for the benefit of its employees
under circumstances that could result in liability to the Pension Benefit
Guaranty Corporation, or any of its successors or assigns, or to the entity
which provides funds for such deferred compensation plan.

                                    SECTION 4

                               NEGATIVE COVENANTS

        4.1     The Borrower will not issue evidences of indebtedness or create,
assume, become contingently liable for, or suffer to exist indebtedness in
addition to indebtedness to the Bank, except for debt that is subordinated to
the Loans to the Bank (the "Subordinated Debt"); provided, however, that the
Borrower may incur liabilities which are incurred or arise in the ordinary
course of the Borrower's business (other than liabilities incurred or arising
with respect to money borrowed) and purchase money security interests in
acquired assets and as reflected on Exhibit A.

        4.3     The Borrower will not merge or consolidate or be merged or
consolidated with or into any other entity, without notifying the Bank of the
same prior to the consummation of such transaction.

        4.5     Except as set forth on Exhibit A, the Borrower will not grant or
suffer to exist any mortgage, pledge, title retention agreement, security
interest, lien, charge or encumbrance with respect to the Pledged Collateral.

        4.7     (Minimum tangible net worth). GSI Lumonics Inc., the parent
company of the Borrower, will not permit its consolidated tangible net worth to
be less than $200,000,000.00 as at the end of each fiscal quarter.

                                        9

<PAGE>

        The term "tangible net worth" shall mean stockholders' equity determined
in accordance with generally accepted accounting principles, consistently
applied, subtracting therefrom: intangibles (as determined in accordance with
such principles so applied).

        4.8     All accounting terms shall be construed and interpreted in
accordance with generally accepted accounting principles consistently applied.

        4.9     The Borrower will not change its state of organization without
notifying the Bank of such change, along with the new state of organization and
organizational number (if any) within a period not to exceed thirty (30) days of
such change.

                                    SECTION 5

                             SECURITY AND GUARANTIES

        5.1     The Bank shall have and hold as security for the repayment of
the Loans and all other Liabilities of the Borrower to the Bank a Security
Agreement (Pledged Collateral) executed by General Scanning (the "Pledge
Agreement" or the "Collateral"). The Borrower will execute and deliver all
agreements, instruments and documents, in form and substance satisfactory to the
Bank, to establish, create and perfect the same.

                                    SECTION 6

                                     DEFAULT

        6.1     The occurrence of any of the following events (after the
expiration of any applicable grace period) shall be an Event of Default
hereunder:

        (a)     The Borrower shall fail to pay any installment of principal or
                interest on account of the Loans, or any other Liabilities of
                Borrower to Bank when such payment is due or within ten (10)
                days of a written demand for a late payment.

        (b)     The Borrower shall fail to observe or perform any material
                covenant or agreement contained in this Agreement or in any
                instrument, document or agreement between Borrower and Bank,
                whether now existing or hereafter arising and the expiration of
                ten (10) days from receipt of written notice of such failure, or
                failure to adhere to the financial covenants contained in
                Section 4 hereof (without any grace period).

        (c)     Any warranty, representation or statement made or furnished to
                the Bank by or on behalf of the Borrower proves to have been
                false in any material respect when

                                       10

<PAGE>

                made or furnished and has a material and adverse affect on the
                business or financial condition of the Borrower.

        (d)     Any event which results in the acceleration of the maturity of
                the indebtedness of the Borrower to others in excess of
                $25,000.00 under any indenture, agreement, undertaking or
                otherwise.

        (e)     Death, dissolution, termination of existence, insolvency, or
                business failure of the Borrower or any Guarantor.

        (f)     The Borrower shall: (i) cease, be unable, or admit in writing
                its inability to pay its debts as they mature, or make a general
                assignment for the benefit of, or enter into any composition,
                trust mortgage or other arrangement with creditors; (ii) apply
                for, or consent (by admission of material allegations of a
                petition or otherwise) to the appointment of a receiver, trustee
                or liquidator of the Borrower or of a substantial part of its
                assets, or authorize such application or consent, or proceedings
                seeking such appointment shall be commenced against the Borrower
                and continue undismissed for sixty (60) days; or (iii) apply
                for, or consent (by admission of material allegations of a
                petition or otherwise) to the application of any bankruptcy,
                reorganization, readjustment of debt, insolvency, dissolution,
                liquidation or other similar law of any jurisdiction, or
                authorize such application or consent, or proceedings to such
                end shall be instituted against the Borrower and remain unstayed
                and undismissed for sixty (60) days, be approved as properly
                instituted or result in adjudication of bankruptcy or
                insolvency. Upon the filing of any involuntary petition, Bank's
                agreement to consider making additional Loans hereunder shall
                terminate.

        (g)     The occurrence of any event of material default under any
                agreement between Bank and the Borrower executed in conjunction
                herewith or instrument or paper given Bank by the Borrower in
                conjunction herewith, whether such agreement, instrument or
                paper now exists or hereafter arises provided the Bank has
                exercised its rights upon default under any such other
                agreement, instrument or paper.

        (h)     The service of any process upon Bank seeking to attach by
                Trustee process any funds of the Borrower on deposit with Bank.

        6.2     Upon demand and the occurrence of any Section 6.1(a) Event of
Default which has not been remedied, the Bank shall set off or otherwise take
recourse first against the Collateral to satisfy such Default. Notwithstanding
anything to the contrary in this Agreement or as permitted under common law, if
the Collateral is adequate to satisfy such Event of Default, the Bank shall have
no claim against the Borrower for such Event of Default and no right to cease
making Loans to Borrower pursuant to Section 1.

        6.3     Upon demand and the occurrence of any Section 6.1 Event of
Default, excluding Section 6.1(a) Events of Default, which has not been
remedied, all Liabilities of the Borrower to

                                       11

<PAGE>

the Bank shall, at the Bank's option upon notice and demand, and notwithstanding
any terms of payment in any note or other instrument evidencing such
Liabilities, become immediately due and payable, and any obligation of the Bank
to consider making Loans pursuant to Section 1 shall terminate.

                                    SECTION 7

                                     NOTICE

        7.1     All notices and other communications hereunder shall be made by
telegram, telex, electronic transmitter, overnight air courier, or certified or
registered mail, return receipt requested, and shall be deemed to be received by
the party to whom it was sent one (1) business day after sending, if sent by
telegram, telex, electronic transmitter, or overnight air courier, and three (3)
business days after mailing if sent by certified or registered mail. All such
notices and other communications to a party hereto shall be addressed to such
party at the address set forth at the beginning of this Agreement or to such
other address as such party may designate for itself in a notice to the other
party given in accordance with this section.

        7.2     The addresses to which such communications shall be sent are as
follows:

        (a)     If intended for the Borrower, to:

                GSI Lumonics Corporation
                General Scanning, Inc.
                39 Manning Road
                Billerica, MA 01821
                Attn:  Thomas R. Swain, Chief Financial Officer

                with copies to:
                Eileen Casal, V.P. & General Counsel
                GSI Lumonics Inc.
                39 Manning Road
                Billerica, Mass.  01821

        (b)     If intended for the Bank, to:

                Fleet National Bank
                100 Federal Street, 7th Floor
                Boston, MA 02110
                Attn:  Thomas F. Brennan, Senior Vice President

                                       12

<PAGE>

                with copies to:

                Brian T. Garrity, Esq.
                Ruberto, Israel & Weiner, P.C.
                100 North Washington Street
                Boston, MA 02114

        7.3     The addresses set forth herein may be changed by notice
                hereunder.

                                    SECTION 8

                                  MISCELLANEOUS

        8.1     The Borrower will from time to time execute and deliver to the
Bank all such other and further instruments and documents and take or cause to
be taken all such other and further action as the Bank may reasonably request in
order to effect and confirm or vest more securely in the Bank all rights
contemplated in this Agreement.

        8.2     The Borrower may take any action herein prohibited or omit to
perform any act required to be performed by the Borrower if the Borrower shall
obtain the Bank's prior written consent to each such action, or omission to act.
No waiver on the Bank's part on any one occasion shall be deemed a waiver on any
other occasion. The Bank shall not be deemed to have waived any of its rights
hereunder unless such waiver shall be in writing and duly signed by an
authorized officer of the Bank.

        8.3     This Agreement may be amended only by an instrument in writing
and duly signed by the Borrower and an authorized officer of the Bank.

        8.4     All covenants, agreements, representations and warranties
contained in this Agreement shall bind the Borrower, its respective successors
and assigns, and shall inure to the Bank's benefit and the benefit of the Bank's
successors and assigns, whether expressed or not.

        8.5     Except as otherwise provided in Section 6.2, all rights of the
Bank hereunder shall be cumulative. The Bank shall be required to take recourse
against any Collateral before enforcing its rights or remedies against the
Borrower or any Guarantor.

        8.6     If any provisions of this Agreement shall be held to be illegal
or unenforceable, such illegality or unenforceability shall relate solely to
such provision and shall not affect the remainder of this Agreement.

        8.7     This Agreement shall be construed and enforced in accordance
with the laws of the Commonwealth of Massachusetts.

        8.8     This Agreement shall take effect as an instrument under seal.

                                       13

<PAGE>

        8.9     BORROWER AND BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE OR HEREAFTER HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT. Borrower hereby certifies that neither Bank nor any of its
representatives, agents or counsel has represented, expressly or otherwise, that
Bank would not, in the event of any such suit, action or proceeding, seek to
enforce this waiver of right to trial by jury. Borrower acknowledges that Bank
has been induced to enter into this Agreement by, among other things, this
waiver. Borrower acknowledges that it has read the provisions of this Agreement
and in particular, this Section; has consulted legal counsel; understands the
right it is granting in this Agreement and is waiving in this Section in
particular, and makes the above waiver knowingly, voluntarily and intentionally.

        8.10    Borrower and Bank agree that any action or proceeding to enforce
or arising out of this Agreement may be commenced in any court of the
Commonwealth of Massachusetts sitting in the counties of Suffolk or Middlesex,
or in the District Court of the United States for the District of Massachusetts.

        8.11    The exhibits annexed hereto as Exhibit A and Exhibit B are the
only exhibits to be annexed to this Agreement, and the material contained
therein shall be incorporated herein.

        8.12    The captions herein contained are inserted as a matter of
convenience only and such captions do not form a part of this Agreement and
shall not be utilized in the construction hereof.

WITNESS:                            GENERAL SCANNING, INC.
(For Borrower)

/s/ Eileen Casal                    By: /s/ Thomas R. Swain
Eileen Casal                            Thomas R. Swain, Treasurer

                                    GSI LUMONICS CORPORATION

                                    By: /s/ Thomas R. Swain
                                        Thomas R. Swain, Chief Financial Officer

WITNESS:                            FLEET NATIONAL BANK
(For Bank)

/s/ Brian T. Garrity                By: /s/ Thomas F. Brennan
Brian T. Garrity                        Thomas F. Brennan, Senior Vice President

                                       14

<PAGE>

                                    EXHIBIT A

See Separate Exhibit A - consisting of 8 pages.

                                       15

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

        General Scanning, Inc. and GSI Lumonics Corporation ("GSI") (each and
together, the "Borrower") hereby certifies to Fleet National Bank ("Bank")
pursuant to the Loan Agreement between Borrower and Bank dated June 28, 2002 as
may be amended from time to time ("Loan Agreement"), that:

A.      General

        1.      Capitalized terms not defined herein shall have the meanings set
forth in the Loan Agreement.

        2.      The Borrower has complied with all the terms, covenants and
conditions to be performed or observed by the Borrower contained in the Loan
Agreement and other documents required to be executed by the Borrower in
connection with the Loan Agreement.

        3.      Neither on the date hereof nor, if applicable, after giving
effect to the loan made on the date hereof, does there exist an Event of Default
or an event which would with notice or the lapse of time, or both, constitute an
Event of Default.

        4.      The representations and warranties contained in the Loan
Agreement and in any certificate, document or financial or other statement
furnished at any time thereunder are true, correct and complete in all material
respects with the same effect as though such representations and warranties had
been made on the date hereof, except to the extent that any such representation
and warranty relates solely to an earlier date (in which case such
representation and warranty shall be true, correct and complete on and as of
such earlier date).

B.      Financial Covenants

        As of the date hereof or, for such period as may be designated below,
the computations, ratios and calculations as set forth below in accordance with
Section 4 of the Loan Agreement are true and correct:

        (a)     Minimum Tangible Net Worth of GSI Lumonics Inc. as of March 31,
                2002:

                (i)     Stockholder's Equity            =       $

                (ii)    Intangible Assets               =       $

                (iii)   (i) minus (ii)                  =       $

Required:  Not less than $200,000,000.00 at the end of each fiscal quarter.

                                       16

<PAGE>

        IN WITNESS WHEREOF, the undersigned, a duly authorized officer of
Borrower, has executed and delivered this Certificate in the name and on behalf
of the Borrower on June 28, 2002.

                                    GSI LUMONICS CORPORATION

                                    By:/s/ Thomas R. Swain
                                        Thomas R. Swain, Chief Financial Officer

                                       17<PAGE>

                                                                    EXHIBIT 4.13
                           SECURED REVOLVING TIME NOTE

$8,000,000.00                                                      June 28, 2002
                                                           Boston, Massachusetts

        For value received, on June 27, 2003, the undersigned, General Scanning,
Inc. ("General Scanning") and GSI Lumonics Corporation (each and together, the
"Borrower"), jointly and severally promise to pay to Fleet National Bank, 100
Federal Street, Boston, Massachusetts 02110 (the "Bank"), or order, the
principal sum of Eight Million ($8,000,000.00) Dollars, or if less, such amount
as may be the aggregate unpaid principal amount of all loans or advances made by
the Bank to the Borrower pursuant to a Loan Agreement between the Borrower and
the Bank of even date, as amended from time to time (the "Agreement"),
constituting the Revolving Loan (as defined in the Agreement) together with
interest (as provided below) on the aggregate unpaid principal balance from time
to time outstanding.

        Upon the Borrower's request, the Bank may, in its sole discretion, make
loans and advances to the Borrower from time to time in accordance with the
terms of the Agreement in an aggregate amount not to exceed the maximum
principal amount of this Note, and the Borrower may repay and reborrow such
loans and advances, provided, that no further advances of principal shall be
made after June 27, 2003 (the "Termination Date").

        At the Borrower's election, each advance hereunder will bear interest at
either: (i) a variable per annum rate equal to the Prime Rate (hereinafter
referred to as a "Prime Rate Loan(s)"); or (ii) a fixed per annum rate equal to
the LIBOR Interest Rate plus Margin, determined as provided below (hereinafter
referred to as a "LIBOR Loan(s)") or (iii) a fixed rate equal to the Bank's Cost
of Funds plus one (1.0%) percent (i.e. 100 basis points) (hereinafter referred
to as a "Cost of Funds Loan"). Interest shall be computed on the basis of the
actual number of days elapsed over a year of 360 days. If the outstanding
balance of each advance evidenced by this Note is not paid in full when due or
after the occurrence of an Event of Default, interest on such unpaid balance
shall thereafter accrue and be payable at a per annum rate equal to four (4%)
percent greater than the rate of interest otherwise applicable to such balance
(the "Default Rate"). In no event, however, shall advances evidenced by this
Note bear interest rate in excess of the maximum interest permitted by
applicable law.

        Interest on the aggregate principal balance of Prime Rate Loans or the
Cost of Funds Loans owing to the Bank at the close of each day shall be payable
monthly in arrears commencing on the first day of the month next succeeding the
date hereof, and continuing on the first day of each month thereafter until such
principal balance is fully and finally paid. Interest on the unpaid principal
balance of each LIBOR Loan shall be payable on the first day of each month of
the Interest Period with respect to such LIBOR Loan, in arrears. If the entire
amount of any payment of principal or interest required hereunder is not paid
within ten (10) days after the same becomes due, the Borrower shall pay to the
Bank a late fee equal to five (5%) percent of the required payment.

<PAGE>

        The Borrower may request Prime Rate Loans or Cost of Funds Loans
hereunder by telephone, facsimile or mail by specifying the amount of the
requested advance and electing the Prime Rate or Cost of Funds interest option.
The Borrower may request LIBOR Loans hereunder by submitting to the Bank a
written notification in the form of Exhibit 1 annexed hereto (herein a "Notice
of Borrowing"), which indicates (i) the Borrowing Date for the requested LIBOR
Loan and; (ii) the amount of the LIBOR Loan (which shall be in increments of not
be less than One Hundred Thousand ($100,000.00) Dollars). The Interest Period
(as hereinafter defined) shall be for one 7-day, 14-day, one month, two months,
three months or six months, as specified on the Notice of Borrowing. Each Notice
of Borrowing must be received by the Bank not less than two (2) Banking Days
prior to the Borrowing Date. A Notice of Borrowing may be transmitted by
facsimile or mail, but may not be transmitted by telephone. The Bank shall incur
no liability to the Borrower in acting upon requests for advances hereunder by
telephone, facsimile or mail which the Bank believes in good faith to have been
given by an officer or other person authorized to borrow on behalf of the
Borrower in accordance with the borrowing resolutions provided by the Borrower
to the Bank.

        After receipt from the Borrower of any Notice of Borrowing, the Bank
shall determine if it is able to make such LIBOR Loan (or if it is unable to do
so for reasons described in this Paragraph) and will notify the Borrower
accordingly. If the Bank determines in good faith that, by reason of
circumstances affecting the Interbank Market, adequate and reasonable methods do
not exist for ascertaining the LIBOR which would otherwise be applicable to such
LIBOR Loan, then the Bank shall so notify the Borrower on or before 4:00 p.m. on
the Banking Day prior to the Borrowing Date specified in the Notice of
Borrowing, and in such event, the Bank shall not be obligated to make such LIBOR
Loan and the Notice of Borrowing shall be deemed to have been withdrawn by the
Borrower with the Bank's consent and, in the case of new advances, substituted
with a request for a Prime Rate Loan in an amount equal to the requested LIBOR
Loan.

        Except as otherwise provided in the Paragraph above, any Notice of
Borrowing which requests a LIBOR Loan shall be irrevocable and binding upon the
Borrower. In the event the Borrower fails to borrow the LIBOR Loan requested on
the Borrowing Date specified in such Notice of Borrowing, the Borrower shall
indemnify the Bank against any and all losses and expenses incurred by the Bank
by reason of such failure including, without limiting the generality of the
foregoing, all losses and expenses incurred by reason of the liquidation,
disposition or redeployment of deposits or other funds acquired by the Bank to
fund such LIBOR Loan.

        Each advance which constitutes a LIBOR Loan hereunder shall be repaid in
full on its Maturity Date or converted to a Prime Rate Loan or Cost of Funds
Loan or another LIBOR Loan. In the event a LIBOR Loan is not repaid in full on
its Maturity Date, the outstanding principal balance of such LIBOR Loan or Cost
of Funds Loan shall thereafter convert to a Prime Rate Loan and bear interest
accordingly. Any LIBOR Loan may be repaid with the proceeds of another LIBOR
Loan.

        In the event a LIBOR Loan is prepaid prior to its Maturity Date, whether
voluntarily or upon exercise by the Bank of its rights hereunder following the
occurrence of an Event of Default, the Borrower shall, upon demand by the Bank,
pay to the Bank any amounts required to compensate

                                       -2-

<PAGE>

the Bank for any additional losses, costs or expenses which it may reasonably
incur as a result of such prepayment, including, without limitation, any loss,
costs or expenses incurred by reason of the liquidation of redeployment of
deposits or other funds acquired by the Bank to fund or maintain such LIBOR
Loan.

        Any amounts outstanding under this Note which are subject to a Cost of
Funds rate may be prepaid in whole, but not in part, upon at least five days
prior notice to the Bank, accompanied by the payment of a prepayment fee in an
amount equal to the amount being prepaid multiplied by the number of years
and/or a fraction of a year, as the case may be, remaining in the term of the
loan at the date of prepayment multiplied by the difference between the fixed
interest rate applicable to the outstanding principal amount of this Note and
the yield to maturity on a U.S. Treasury security equal to the amount being
prepaid and having a maturity approximately equal to the remainder of the term
of the loan at the date of prepayment. This fee shall also be due and payable
upon any acceleration of the maturity of the loan (which for the purposes hereof
shall be considered as a prepayment of the loan) in addition to interest at the
default rate provided above. Notwithstanding the foregoing, any amounts
outstanding under this Note which bear interest at the Prime Rate may be prepaid
in whole or in part without the application of a prepayment fee or any other
fees or penalties.

        Notwithstanding any other provision of this Note, (1) if the
introduction of, or any change in, any law or regulation (or change in the
interpretation thereof) applicable to the Bank or any foreign branch, agent or
correspondent thereof shall make it unlawful, or (2) if any central bank or
other governmental authority having jurisdiction over the Bank or any such
branch, agent or correspondent, shall assert that it is unlawful, for the Bank
to perform its obligations hereunder or for any such branch, agent or
correspondent to act on behalf of the Bank to make LIBOR Loans to the Borrower
or to continue to fund or maintain LIBOR Loans for the Borrower hereunder, or
(3) if the Bank determines after making all reasonable efforts, that deposits of
the relevant amount and for the relevant LIBOR Loan are not available to the
Bank in the Interbank Market, then, on notice thereof by the Bank to the
Borrower, the obligation of the Bank to the Borrower to make future LIBOR Loans
shall terminate. If, as a result of any of the foregoing described events, the
Bank is prohibited from maintaining LIBOR Loans the Bank shall, upon the
happening of such event, notify the Borrower and the Borrower shall, in the case
of each LIBOR Loan on the Maturity Date thereof (or, in any event, if the Bank
so requests, on such earlier date as may be required by the relevant law,
regulation or interpretation), either prepay such LIBOR Loan, or convert such
LIBOR Loan into a Prime Rate Loan.

        Calculation of the LIBOR Interest Rate, as well as all other fees and
charges payable with respect to each LIBOR Loan shall be made and paid as though
the Bank had actually funded the relevant LIBOR Loan through the purchase of a
Eurodollar deposits at LIBOR in an amount equal to the amount of the LIBOR Loan
and having a maturity comparable to the relevant Interest Period and through the
transfer of such Eurodollar deposit from an offshore agent or office of the Bank
to a domestic office of the Bank in the United States of America, provided,
however, that the Bank may fund each LIBOR Loan in any manner it sees fit and
the foregoing assumptions shall be nevertheless used for the calculation of the
LIBOR Interest Rate and such other fees and charges.

                                       -3-

<PAGE>

        At the option of the Bank, this note shall become immediately due and
payable with notice and on demand upon the occurrence (each an "Event of
Default") at any time of: (i) the failure to pay in full and when due any
installment of principal or interest hereunder and the expiration of ten (10)
days from such failure, if the Pledged Collateral is inadequate to satisfy such
failure; (ii) any Section 6.1 Event of Default (excluding a Section 6.1(a)
default) as defined in the Agreement between the Bank and the Borrower, as
amended from time to time, which has not been remedied; or (iii) termination of
the Agreement. With respect to item (i) herein, the Bank shall, upon such
remedied failure, set off or otherwise take recourse first against the Pledged
Collateral to satisfy the failure. Notwithstanding any thing to the contrary
herein, in the Agreement or as permitted under common law, the Bank shall have
no claim against the Borrower for such failure and no right to call the note
immediately due and payable if the Pledged Collateral is adequate to satisfy the
failure under (i).

        No delay or omission on the part of the Bank in exercising any right
hereunder shall operate as a waiver of such right or of any other right of the
Bank, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. The
Borrower and every other maker and every endorser or guarantor of this Note,
regardless of the time, order or place of signing, waives presentment, demand,
protest and notices of every kind and assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or
release of collateral, and to the addition or release of any other party or
person primarily or secondarily liable.

        The Borrower agrees to pay all costs of collection of the principal of
and interest on this Note; including, without limitation, reasonable attorneys'
fees.

        As used in this Note, the following terms shall have the following
meanings:

                (1)     "Banking Day" shall mean:

                        (a)   any day which is neither a Saturday or Sunday nor
                        a legal holiday on which commercial banks are
                        authorized or required to be closed in Boston,
                        Massachusetts;

                        (b)   when such term is used to describe a day on which
                        a borrowing, payment, prepaying, or repaying is to
                        be made in respect of any LIBOR Rate Loan, any day
                        which is: (i) neither a Saturday or Sunday nor a
                        legal holiday on which commercial banks are
                        authorized or required to be closed in New York
                        City; and (ii) a London Banking Day; and

                        (c)   when such term is used to describe a day on which
                        an interest rate determination is to be made in
                        respect of any LIBOR Rate Loan, any day which is a
                        London Banking Day.

                                       -4-

<PAGE>

                        (d)   a day on which banks are open for business in New
                        York, N.Y., and if the applicable "Banking Day"
                        relates to a LIBOR Loan or LIBOR Election, a day
                        on which dealings are carried on and banks are
                        open for business in New York or London, as
                        applicable.

                (2)     "Borrowing Date" shall mean any day upon which a LIBOR
        Loan is made.

                (3)     "Cost of Funds" shall mean the sum of (i) the fixed per
        annum rate of interest as of the date selected by the Borrower in
        accordance with the terms of this Note determined by the Bank in good
        faith in accordance with the Bank's customary practices for loans in
        United States currency and based on the Bank's cost of obtaining funds
        with a maturity approximately equal to the termination date of the Note
        from sources as may be selected by the Bank in its sole and absolute
        discretion.

                (4)     "Dollars" or "$" shall mean currency of the United
        States of America.

                (5)     "Eurocurrency Liabilities" shall have the meaning
        assigned to that term in Regulation D of the Board of Governors of the
        Federal Reserve System, as in effect from time to time.

                (6)     "Eurodollars" shall mean Dollars acquired by the Bank
        through the purchase or other acquisition of deposits denominated in
        Dollars and made with any bank or branch of a bank (including any branch
        of the Bank) located outside the United States of America.

                (7)     "Interbank Market" shall mean, with respect to any LIBOR
        Loan, any recognized interbank Eurodollar market chosen in good faith by
        the Bank.

                (8)     "Interest Period" shall mean, with respect to each LIBOR
        Loan, a period commencing on the Borrowing Date of such loan, and ending
        on the numerically corresponding day in the seventh day, fourteenths
        day, first, second, third or sixth month thereafter, as determined in
        accordance with the provisions of this Note, provided that any Interest
        Period which would otherwise end on a day which is not a Banking Day,
        shall end and the next Interest Period shall commence on the next
        preceding or the next succeeding day which is a Banking Day as
        determined in good faith by the Bank in accordance with the then current
        bank practices in the relevant Interbank Market.

                (9)     "LIBOR" shall mean, with respect to a LIBOR Loan or
        LIBOR Election, the rate per annum (rounded upward, if necessary, to the
        nearest one-

                                       -5-

<PAGE>

        hundredth of a percentage point) as determined on the basis of the
        offered rates for deposits in U.S. dollars, for a period of time
        comparable to such LIBOR Loan or LIBOR Election which appears on the
        Telerate page 3750 as of 11:00 a.m. London time on the day that is two
        London Banking Days preceding the first day of such LIBOR Loan or LIBOR
        Election; provided, however, if the rate described above does not appear
        on the Telerate System on any applicable interest determination date,
        the LIBOR rate shall be the rate (rounded upwards as described above, if
        necessary) determined on the basis of the offered rates for deposits in
        U.S. dollars for a period of time comparable to such LIBOR Loan or LIBOR
        Election which are offered by four major banks in the London interbank
        market at approximately 11:00 a.m. London time, on the day that is two
        London Banking Days preceding the first day of such LIBOR Loan or LIBOR
        Election. The principal London office of each of the four major London
        banks will be requested to provide a quotation of its U.S. dollar
        deposit offered rate. If at least two such quotations are provided, the
        rate for that date will be the arithmetic mean of the quotations. If
        fewer than two quotations are provided as requested, the rate for that
        date will be determined on the basis of the rates quoted for loans in
        U.S. dollars to leading European banks for a period of time comparable
        to such LIBOR Loan or LIBOR Election offered by major banks in New York
        City at approximately 11:00 a.m. New York City time, on the day that is
        two London Banking Days preceding the first day of such LIBOR Loan or
        LIBOR Election. In the event that the Bank is unable to obtain any such
        quotation as provided above, it will be deemed that LIBOR pursuant to a
        LIBOR Loan or LIBOR Election cannot be determined.

                (10)    "LIBOR Interest Rate" shall mean an interest rate per
        annum (rounded upward, if necessary, to the nearest one-eighth (1/8th)
        of one (1%) percent) determined by the Bank pursuant to the following
        formula:

                LIBOR Interest Rate          =            LIBOR
                                                   -------------------
                                                   1.00 ! Reserve Rate

                (11)    "Margin" shall mean: One Hundred (100) basis points.

                (12)    "Maturity Date" shall mean the date on which an Interest
        Period expires.

                (13)    "Pledged Collateral" shall mean the collateral specified
        on Exhibit A to the Security Agreement executed by General Scanning
        Inc. for Fleet National Bank on June 28, 2002.

                (14)    "Prime Rate" shall mean the rate of interest announced
        from time to time by the Bank in Boston, as its Prime Rate, it being
        understood that such rate is a reference rate and not necessarily the
        lowest rate of interest charged by Bank to its

                                       -6-

<PAGE>

        customers. The rate of interest payable by the Borrower on Prime Rate
        Loans shall be changed effective as of that date on which a change in
        the Prime Rate becomes effective.

                (15)    "Reserve Rate" shall mean the rate (expressed as a
        decimal) at which the Bank would be required to maintain reserves under
        REGULATION D of the Board of Governors of the Federal Reserve System
        against Eurodollar Liabilities if such Liabilities were outstanding. The
        LIBOR Interest Rate shall be adjusted automatically as of the effective
        date of any change in the Reserve Rate.

        All agreements between Borrower and Bank are hereby expressly limited so
that in no contingency or event whatsoever, whether by reason of acceleration of
maturity of the indebtedness evidenced hereby or otherwise, shall the amount
paid or agreed to be paid to Bank for the use or the forbearance of the
indebtedness evidenced hereby exceed the maximum permissible under applicable
law. As used herein, the term "applicable law" shall mean the law in effect as
of the date hereof; provided, however, that in the event there is a change in
the law which results in a higher permissible rate of interest, then this Note
shall be governed by such new law as of its effective date. In this regard, it
is expressly agreed that it is the intent of Borrower and Bank in the execution,
delivery and acceptance of this Note to contract in strict compliance with the
laws of the Commonwealth of Massachusetts from time to time in effect. If, under
or from any circumstances whatsoever, fulfillment of any provision shall be due,
shall involve transcending the limit of such validity prescribed by applicable
law, then the obligation to be fulfilled shall automatically be reduced to the
limits of such validity, and if under or from circumstances whatsoever Bank
should ever receive as interest an amount which would exceed the highest lawful
rate, such amount which would be excessive interest shall be applied to the
reduction of the principal balance evidenced hereby and not to the payment of
interest. This provision shall control every other provision of all agreements
between Borrower, Guarantor(s) and Bank.

        Bank may at any time pledge or assign all or any portion of its rights
under the loan documents to any of the twelve (12) Federal Reserve Banks
organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341. No
such pledge or assignment or enforcement thereof shall release Bank from its
obligations under any of the loan documents.

        THE BORROWER AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THAT THE BORROWER OR THE BANK MAY
HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THE
LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO. THE BORROWER HEREBY
CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT THE BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. THE BORROWER ACKNOWLEDGES
THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE PROVISIONS OF THIS SECTION.

                                       -7-

<PAGE>

        All rights and obligations hereunder shall be governed by the laws of
the Commonwealth of Massachusetts, and this Note shall be deemed to be under
seal.

Witness                                  GENERAL SCANNING, INC.

/s/ Eileen Casal                         By: /s/ Thomas R. Swain
Eileen Casal                                 Thomas R. Swain, Treasurer

                                         GSI LUMONICS CORPORATION

                                         By: /s/ Thomas R. Swain
                                             Thomas R. Swain, Chief Financial
                                             Officer

           THIS NOTE IS SECURED PURSUANT TO CERTAIN SECURITY AGREEMENT
                  (PLEDGED COLLATERAL) BETWEEN GENERAL SCANNING
                            AND THE BANK OF EVEN DATE

                                       -8-

<PAGE>

                                    EXHIBIT 1

                               NOTICE OF BORROWING

                                                           Date:_________, 200__
     To:      Fleet National Bank
              100 Federal Street
              Boston, MA 02110

     Re:      Secured Revolving Time Note between Fleet National Bank (the
              "Bank") and General Scanning, Inc. and GSI Lumonics Corporation
              (each and together, the "Borrower") dated June 28, 2002 (the
              "Note")

        This Notice of Borrowing confirms the following request for a LIBOR Loan
under the Note.

        Date of Request:

        Date of LIBOR Loan:

        Amount of LIBOR Loan at LIBOR Rate: *

        Interest Period: (7-day, 14-day, one month, two months, three months or
six months):

        The Borrower hereby certifies that all representations and warranties
contained in the Agreement between the Borrower and the Bank are true and
accurate in all material respects on the date of this Notice of Borrowing as
though such representations and warranties had been made on this date (except to
the extent that such representation or warranty expressly relates to an earlier
date), excluding those which would not have a material and adverse affect on the
business or financial condition of the Borrower.

        .       This is a request for a continuation/conversion of a Cost of
                Funds Rate Loan described as follows:

                Date of Original Loan:

                Amount of Original Loan:

                Maturity Date:

                Interest Period:

                Amount of Loan to be Continued or Converted:

        Terms used herein which are defined in the Note are used as so defined.

        By:
           -----------------------------

                                       -9-

<PAGE>

        * Must be in increments of $100,000.00

                                    EXHIBIT 2

                        NOTICE OF COST OF FUNDS BORROWING

     To:      Fleet National Bank                       Date: ___________, 200__
              100 Federal Street
              Boston, MA 02110

     Re:      Secured Revolving Time Note between Fleet National Bank (the
              "Bank"), General Scanning, Inc. and GSI Lumonics Corporation (each
              and together, the "Borrower") dated June 28, 2002 (the "Note")

        This Notice of Cost of Funds Borrowing confirms the following request
for a Cost of Funds Rate Loan under the Agreement.

         Date of Request:

         Date of Cost of Funds Rate Loan:

         Amount of Cost of Funds Rate Loan at Cost of Funds Rate: *

         Interest Period:   (7-day, 14-day, one month, two months, three months
         or six months):

        The Borrower hereby certifies that all representations and warranties
contained in the Agreement are true and accurate in all material respects on the
date of this Notice of Cost of Funds Borrowing as though such representations
and warranties had been made on this date (except to the extent that such
representation or warranty expressly relates to an earlier date), excluding
those which would not have material and adverse affect on the business or
financial condition of the Borrower.

        .       This is a request for a continuation/conversion of a Cost of
                Funds Rate Loan described as follows:

                Date of Original Loan:

                Amount of Original Loan:

                Maturity Date:

                Interest Period:

                Amount of Loan to be Continued or Converted:

        Terms used herein which are defined in the Agreement are used as so
defined.

                                      -10-

<PAGE>

                                                     By:
                                                        ------------------------

      * Minimum of $100,000.00 with increments of $100,000.00

                                      -11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]