Document:

Exhibit 4.08

 

CUSIP
NO. 5252M0AH0

ISIN NO. US5252M0AH0

 

	
  REGISTERED

  	
  PRINCIPAL
  AMOUNT: $2,136,000

  

No. R-1

 

LEHMAN BROTHERS HOLDINGS INC.

 

MEDIUM-TERM NOTE, SERIES I

 

FX BASKET-LINKED NOTE
 DUE NOVEMBER 30, 2009

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY OR A NOMINEE OF THE DEPOSITORY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM (A
“CERTIFICATED NOTE”), THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

 

 

LEHMAN BROTHERS HOLDINGS INC., a corporation duly
organized and existing under the laws of the State of Delaware (herein called
the “Company,” which term includes any successor corporation under the
Indenture referred to on the reverse hereof), for value received, hereby
promises to pay to CEDE & Co., or registered assigns, on the Maturity Date,
an amount equal to the
Redemption Amount.  

 

The “Maturity Date” is November 30, 2009, or if such day
is not a Business Day, on the next following Business Day.

 

The “Redemption
Amount” is the amount equal to the sum of the principal amount of the Notes
plus the Additional Amount, if any.

 

The “Additional
Amount” is a single U.S. dollar amount equal the principal amount of the Notes
multiplied by the product of the Leverage times the Basket Return; provided that the minimum Additional Amount payable on the
notes shall be zero.

 

The “Leverage”
is 250%.

 

The “Reference
Currencies” are the Brazilian Real (BRL), Russian Ruble (RUB), Indian Rupee
(INR), Chinese Renminbi (CNY) and South Korean Won (KRW).

 

The “Basket Return” equals the sum of the Weighted
Currency Returns for the Reference Currencies.

 

The “Weighted Currency Return” for each Reference
Currency is the product of the Weighting for such Reference Currency times a
quotient, the numerator of which is the difference of the Initial Reference
Currency Rate for such Reference Currency minus the Settlement Rate for such
Reference Currency and the denominator of which is the Initial Reference
Currency Rate for such Reference Currency.

 

The “Weighting” and “Initial Reference Currency Rate”
for each Reference Currency are as follows:

 

	
  Reference

  Currency

  	
   

  	
  Weighting

  	
   

  	
  Initial

  Reference

  Currency Rate

  	
   

  
	
  BRL

  	
   

  	
  20

  	
  %

  	
  1.8501

  	
   

  
	
  RUB

  	
   

  	
  20

  	
  %

  	
  24.3242

  	
   

  
	
  INR

  	
   

  	
  20

  	
  %

  	
  39.85

  	
   

  
	
  CNY

  	
   

  	
  20

  	
  %

  	
  7.3872

  	
   

  
	
  KRW

  	
   

  	
  20

  	
  %

  	
  928.20

  	
   

  

 

The “Settlement Rate” for each Reference Currency is
the Reference Exchange Rate on the Valuation Date, determined in accordance
with the applicable Settlement Rate Option (subject to the occurrence of a
Disruption Event).

 

The “Reference Exchange Rates” are the spot exchange
rates for each of the Reference Currencies quoted against the U.S. dollar expressed
as number of currency units per USD 1.

 

2

 

The “Valuation
Date” is November 23, 2009; provided that,
upon the occurrence of a Disruption Event with respect to a Reference Currency,
the Valuation Date for the affected Reference Currency may be postponed (as
described in “Disruption Events” below).

 

The “Issue
Date” is November 30, 2007.

 

If the Calculation Agent determines that a
Disruption Event relating to one or more of the Reference Currencies is in
effect on the scheduled Valuation Date, the Calculation Agent will determine
the Basket Return using:

 

•                                          for each Reference
Currency that did not suffer a Disruption Event on the scheduled Valuation
Date, the Settlement Rate on the scheduled Valuation Date, and

 

•                                          for each Reference
Currency that did suffer a Disruption Event on the scheduled Valuation Date,
the Settlement Rate on the immediately succeeding scheduled Valuation Business
Day for such Reference Currency on which no Disruption Event occurs or is
continuing with respect to such Reference Currency;

 

provided, however, that if a
Disruption Event has occurred or is continuing with respect to a Reference
Currency on each of the three scheduled Valuation Business Days following the
scheduled Valuation Date, then (a) such third scheduled Valuation Business Day
shall be deemed the Valuation Date for the affected Reference Currency; and (b)
the Calculation Agent will determine the Settlement Rate for the affected
Reference Currency on such day in accordance with Fallback Rate Observation
Methodology.

 

For purposes of the above, “scheduled Valuation
Business Day” means a day that is or, in the judgment of the Calculation Agent,
should have been, a Valuation Business Day for the affected Reference Currency.

 

A “Disruption Event” means any of the following events as determined in
good faith by the Calculation Agent:

 

(A)                              the occurrence and/or existence of an event on any
day that has the effect of preventing or making impossible the delivery of USD
from accounts inside the country for which a Reference Currency is the lawful
currency (such jurisdiction with respect to such Reference Currency, the “Reference
Currency Jurisdiction”) for that Reference Currency to accounts outside that
Reference Currency Jurisdiction;

 

(B)                                the occurrence of any
event causing the Reference Exchange Rate for the Reference Currency to be
split into dual or multiple currency exchange rates; or

 

(C)                                the Settlement Rate being unavailable for the
Reference Currency, or the occurrence of an event (i) in the Reference Currency
Jurisdiction for that Reference Currency that materially disrupts the market
for the Reference Currency or (ii) that generally makes it impossible to obtain
the Settlement Rate for the Reference Currency, on the Valuation Date.

 

3

 

A
“Valuation Business Day” means, with respect to each Reference Currency, any
day, other than a Saturday or Sunday, that is neither a legal holiday nor a day
on which commercial banks are authorized or required by law, regulation or
executive order to close (including for dealings in foreign exchange in
accordance with the practice of the foreign exchange market) in the city or
jurisdiction indicated in the table below:

 

	
  Reference

  Currency

  	
   

  	
  Screen

  Reference

  	
   

  	
  Valuation

  Business

  Day

  	
   

  
	
  BRL

  	
   

  	
  BRFR

  	
   

  	
  Brazilia,

  Rio de

  Janiero or

  São Paulo

  	
   

  
	
  RUB

  	
   

  	
  EMTA

  	
   

  	
  Moscow

  	
   

  
	
  INR

  	
   

  	
  RBIB

  	
   

  	
  Mumbai

  	
   

  
	
  CNY

  	
   

  	
  SAEC

  	
   

  	
  Beijing

  	
   

  
	
  KRW

  	
   

  	
  KFTC18

  	
   

  	
  Seoul

  	
   

  

 

The “Settlement
Rate Option” for the BRL is the Brazilian Real/U.S. dollar offered rate for
U.S. dollars, expressed as the amount of Brazilian Reals per one U.S. dollar,
for settlement in two Business Days reported by the Banco Central do Brasil on
SISBACEN Data System under transaction code PTAX-800 (“Consulta de Cambio” or Exchange
Rate Inquiry), Option 5 ( “Cotacoes para Contabilidade” or Rates for Accounting
Purposes), which appears on Reuters Screen BRFR Page under the caption “Dolar
PTAX” at approximately 6:30 pm Sao Paolo time on the Valuation Date or such
other relevant date.  The Settlement Rate Option for the RUB is the
Russian Ruble/U.S. Dollar Specified Rate, expressed as the amount of Russian
Rubles per one U.S. Dollar, for settlement in one Business Day, calculated by
the Chicago Mercantile Exchange (“CME”) and as published on CME’s website,
which appears on the Reuters Screen EMTA Page, at approximately 1:30 p.m.,
Moscow time, on the Valuation Date or such other relevant date.  The Settlement Rate Option for the INR is the
Indian Rupee/U.S. dollar reference rate, expressed as the amount of Indian
Rupee per one U.S. dollar, for settlement in two Business Days reported by the
Reserve Bank of India which appears on the Reuters Screen RBIB Page at
approximately 2:30 p.m., Mumbai time, or as soon thereafter as practicable on
the on the Valuation Date or such other relevant date.  The
Settlement Rate Option for the CNY is the Chinese Renminbi/U.S. dollar official
fixing rate, expressed as the amount of Chinese Renminbi per one U.S. dollar,
for settlement in two Business Days reported by The State Administration of
Foreign Exchange of the People’s Republic of China, Beijing, which appears on
the Reuters Screen SAEC Page opposite the symbol “USDCNY=“ at approximately
5:00 p.m., Beijing time, on the Valuation Date or other such relevant date. The
Settlement Rate Option for the KRW is the South Korean Won/U.S. dollar market
average rate, expressed as the amount of South Korean Won per one U.S. dollar,
for settlement in two Business Days reported by the Korea Financial Telecommunications
and Clearing Corporation, which appears on the Reuters Screen KFTC18 Page top
the right of the caption “USD Today” that is available at approximately 5:30
p.m., Seoul time, on the Valuation Date or as soon thereafter as practicable,
but in no event later than 9:00 a.m., Seoul time, on the first Business Day
following the relevant Valuation Date.

 

4

 

The
screen or time of observation indicated in relation to any Settlement Rate
Option above shall be deemed to refer to such screen or time of observation as
modified or amended from time to time, or to any substitute screen thereto.

 

The “Fallback Rate Observation Methodology” means that the reference exchange rate, Settlement
Rate or other rate, as specified in the applicable pricing supplement, in
respect of a reference currency will equal the noon buying rate in New York for
cable transfers in foreign currencies as announced by the Federal Reserve Bank
of New York for customs purposes (the “Noon Buying Rate”) on the relevant
Valuation Date or such other date specified in the applicable pricing
supplement. If the Noon Buying Rate is not announced on that date, the
Reference Exchange Rate, Settlement Rate or other rate for such Reference
Currency will be calculated on the basis of the arithmetic mean of the
applicable spot quotations received by the Calculation Agent at approximately
10:00 a.m., New York City time, on the Valuation Business Day next
succeeding the Valuation Date or such other date specified in the applicable
pricing supplement, for the purchase or sale for deposits in the reference
currency by the New York offices of three leading banks engaged in the
interbank market (selected in the sole discretion of the Calculation Agent)
(the “Reference Banks”). If fewer than three Reference Banks provide spot
quotations, then the Reference Exchange Rate, Settlement Rate or other rate, as
applicable, will be calculated on the basis of the arithmetic mean of the
applicable spot quotations received by the Calculation Agent at approximately
10:00 a.m., New York City time, on the relevant date from two Reference
Banks (selected in the sole discretion of the Calculation Agent), for the
purchase or sale for deposits in the Reference Currency. If these spot quotations
are available from only one Reference Bank, then the Calculation Agent, in its
sole discretion, will determine whether that quotation is reasonable to be
used. If no spot quotation is available, then the Reference Exchange Rate,
Settlement Rate or other rate, as applicable, for such Reference Currency will
be determined by the Calculation Agent in good faith and in a commercially
reasonable manner.

 

A “Business Day”, notwithstanding any
provision in the Indenture, is any day that is not is not a Saturday or Sunday
and that is not a day on which banking institutions in New York City generally
are authorized or obligated by law or executive order to be closed.

 

The “Calculation Agent” means Lehman Brothers
Inc.

 

Except as provided below, the Redemption Amount
may, at the option of the Company, be made by check mailed to the person
entitled thereto at such person’s address as it appears on the registry books
of the Company.  

 

Payment of the Redemption Amount will be made
in immediately available funds in accordance with the normal procedures of the
Trustee (or any duly appointed Paying Agent).

 

The Company will pay any administrative costs
imposed by banks in making payments in immediately available funds, but any
tax, assessment or governmental charge imposed upon payments hereunder,
including, without limitation, any withholding tax, will be borne by the Holder
hereof.

 

References herein to “U.S. dollars” or “U.S.$” or “$”
or “USD” are to the coin or currency of the United States as at the time of
payment is legal tender for the payment of public and private debts.

 

5

 

REFERENCE IS HEREBY MADE TO THE FURTHER
PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF.  SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

This Note shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall
have been signed by the Trustee under the Indenture.

 

6

 

IN
WITNESS WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be
signed by its Chairman of the Board, its President, its Vice Chairman, its
Chief Financial Officer, one of its Vice Presidents or its Treasurer, by manual
or facsimile signature under its corporate seal, attested by its Secretary or
one of its Assistant Secretaries by manual or facsimile signature.

 

Dated:  November 30, 2007

 

	
  [SEAL]

  	
  LEHMAN BROTHERS
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  Yeung

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Cindy
  Buckholz

  
	
   

  	
   

  	
  Title:   Assistant Secretary

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Securities of the series designated herein referred to in the within-mentioned
Indenture.

 

CITIBANK, N.A.

  as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  

 

7

 

[REVERSE OF NOTE]

 

LEHMAN BROTHERS HOLDINGS INC.

MEDIUM-TERM NOTES, SERIES I

FX BASKET-LINKED NOTE
 DUE NOVEMBER 30, 2009

 

Section
1. 
General.  This Note is one
of a duly authorized series of Notes of the Company designated as the
Medium-Term Notes, Series I, FX
Basket-Linked Note (herein called the “Notes”).  The Notes are one of an
indefinite number of series of debt securities of the Company (collectively,
the “Securities”) issued or issuable under and pursuant to an indenture dated
as of September 1, 1987, as amended and supplemented (the “Indenture”), duly
executed and delivered by the Company and Citibank, N.A., as Trustee (herein
called the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Securities. 
The separate series of Securities may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates, may be subject to different redemption provisions or
repurchase rights (if any), may be subject to different sinking, purchase or
analogous funds (if any), may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided.

 

Section
2.  Principal Amount for Indenture
Purposes.  For the purpose of determining
whether Holders of the requisite amount of Notes of this series outstanding
under the Indenture have made a demand, given a notice or waiver or taken any
other action, the principal amount of this Note will be deemed to be the
principal amount of this Note then outstanding.

 

Section
3.  Modification and Waivers.  The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the Holders of not less than
66-2/3% in aggregate principal amount of each series of the Securities at the
time Outstanding to be affected, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Securities of all such series; provided, however, that no such supplemental
indenture shall, among other things, (i) change the fixed maturity of any
Security, or reduce the Additional Amount or the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon or reduce any
premium or other amount payable on redemption, or make the Additional Amount or
the principal amount thereof, premium or other amount payable, if any, or
interest thereon payable in any coin or currency other than that herein above
provided, without the consent of the Holder of each Security so affected, or
(ii) change the place of payment on any Security, or impair the right to
institute suit for payment on any Security, or reduce the aforesaid percentage
of Securities, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Security so
affected.  It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of any series of
Securities, the holders of a majority in aggregate principal amount of the
Securities of such series Outstanding may on behalf of the holders of all the
Securities of such series waive any past

 

 

default or Event of
Default under the Indenture with respect to such series and its consequences,
except a default in the payment of interest, if any, on the Additional Amount
or the principal amount, or premium, if any, on any of the Securities of such
series, or in the payment of any sinking fund installment or analogous
obligation with respect to Securities of such series.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
holders and owners of this Note and any Notes of this series which may be
issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes of this series.

 

Section
4.  Obligations Unconditional.  No reference herein to the Indenture and no
provisions of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
Additional Amount or the principal amount on this Note at the place, at the
respective times, at the rate, and in the coin or currency herein prescribed.

 

Section
5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

 

Section
6.  Authorized Form and Denominations.  The Notes of this series are issuable in
registered form, without coupons.  Each
Note will be issued initially as either a Global Security or a Certificated
Note, at the option of the Company, in denominations of $1,000 or whole
multiples of $1,000, either at the office or agency to be designated and
maintained by the Company for such purpose in the Borough of Manhattan, New
York City, pursuant to the provisions of the Indenture or at any of such other
offices or agencies as may be designated and maintained by the Company for such
purpose pursuant to the provisions of the Indenture, and in the manner and
subject to the limitations provided in the Indenture, but without the payment
of any service charge, except for any tax or other governmental charges imposed
in connection therewith.  Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this
series of a different authorized denomination, except that Global Securities
will not be exchangeable for Certificated Notes of this series.

 

Section
7.  Registration of Transfer.  As provided in the Indenture and subject to
certain limitations as therein set forth, the transfer of this Note is
registrable in the Security Register, upon surrender of this Note for
registration of transfer, at the Corporate Trust Office or agency in a Place of
Payment for this Note, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar
requiring such written instrument of transfer duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

If at
any time the Depository notifies the Company that it is unwilling or unable to
continue as Depository or if at any time the Depository shall no longer be
eligible under the Indenture, the Company shall appoint a successor
Depository.  If a successor Depository
for the Notes of this series is not appointed by the Company within 90 days
after the Company receives such notice or becomes aware of such ineligibility,
the Company will issue, and the Trustee will authenticate and deliver, Notes of
this series in definitive form in an aggregate principal amount equal to the principal
amount of this Note.

 

 

No
service charge shall be made for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith.

 

Prior
to due presentment of this Note for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the person in
whose name this Note is registered as the owner hereof for all purposes, and
neither the Company nor the Trustee nor any agent of the Company or of the
Trustee shall be affected by any notice to the contrary.

 

Section
8.  Events of Default.  If an Event of Default with respect to Notes
of this series shall occur and be continuing, the amount that may be declared
due and payable upon any acceleration of the notes will be determined by the
Calculation Agent for the period from and including the Issue Date to but
excluding the date of early repayment and will equal, for each note, the
Redemption Amount, calculated as the date of early repayment were the Maturity
Date. If a bankruptcy proceeding is commenced in respect of Lehman Brothers
Holdings, the claim of the beneficial owner of a note for the period from and
including the Issue Date to but excluding the date of early repayment will be
capped at the Redemption Amount, calculated as though the date of the
commencement of the proceeding were the Maturity Date.

 

Section
9.  No Recourse Against Certain
Persons.  No recourse for the payment
of the Additional Amount or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in the Indenture or any Indenture supplemental thereto or in any
Note, or because of the creation of any indebtedness represented thereby, shall
be had against any incorporator, stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

 

Section
10. 
Defined Terms.  All terms
used but not defined in this Note are used herein as defined in the Indenture.

 

Section
11.  GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.Exhibit 10.1

 

COMPENSATION AND
INDEMNIFICATION AGREEMENT

 

This COMPENSATION AND INDEMNIFICATION AGREEMENT is
made as of this 2nd day of December, 2007 (this “Agreement”) by and
among Bruker BioSciences Corporation, a Delaware corporation (the “Corporation”),
and each of William A. Linton, Collin D’Silva and Richard D. Kniss (each, a “Director”
and collectively, the “Directors”).

 

WHEREAS, the Corporation’s Board of Directors (the “Board
of Directors”), at a meeting held on August 1, 2007, appointed the Directors
as members of a Special Committee of the Board of Directors of the Corporation
(the “Special Committee”) to consider, evaluate, investigate, negotiate
the terms and conditions of, recommend to the entire Board of Directors if it
considers it in the best interests of the stockholders of the Corporation
unaffiliated with the Laukien family to do so, and reject it if it considers it
in the best interests of the stockholders to do so, an acquisition by the
Corporation of Bruker BioSpin Inc., a Delaware corporation, Bruker BioSpin
Invest AG, a Swiss corporation, Bruker Physik GmbH, a German limited liability
company and Techneon AG, a Swiss corporation (the “Transaction”), and to
make such reports to the entire Board of Directors at such times and in such manner
as the Special Committee considers appropriate with respect to such possible
transaction;

 

WHEREAS, in order to induce the Directors to serve on
the Special Committee and to accept the additional duties, responsibilities and
burdens of such service, the Corporation wishes to provide them with the
compensation and indemnification arrangements set forth herein; and

 

WHEREAS, the Directors are willing to serve and
continue to serve on the Special Committee on the terms set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing, the
parties hereto do hereby agree as follows:

 

Section 1.               Service on the Special
Committee. Each Director hereby agrees to serve as a member of the Special
Committee on the terms provided for herein so long as such appointment by the
Board shall remain in effect. Each Director may, however, resign from such
position at any time and for any reason. The Corporation’s obligation to
indemnify each such Director as set forth in this Agreement shall continue in
full force and effect notwithstanding any such termination of appointment or
resignation.

 

Section 2.               Compensation and Expense
Reimbursement. In return for his services as a member of the Special
Committee, each Director shall be entitled to receive from the Corporation compensation
in the amount of $80,000 ($100,000 in the case of Mr. Linton, Chairman of the
Special Committee). In addition, each Director shall be reimbursed by the
Corporation for his reasonable out-of-pocket travel and other expenses incurred
in connection with his service on the Special Committee.

 

 

Section 3.            General Indemnification.

 

(a)           Article 10 of the Corporation’s By-Laws
currently provides members of the Board of Directors with the following general
right to indemnification:

 

The Corporation shall indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (other than an action by or in the right of the Corporation)
by reason of the fact that he is or was a Director, officer, employee or agent
of the Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorney’s
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding if he acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Corporation, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the Corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.

 

(b)           The Corporation hereby confirms that
the rights conferred upon the members of its Board of Directors pursuant to
Article 10 of its By-Laws are fully applicable to the Directors in their
capacity as members of the Special Committee. Any subsequent amendment to such
By-Laws which is intended to diminish, or has the effect of diminishing, the
rights of directors to indemnification shall not be applicable to the Directors
for their service on the Special Committee, whether such service was rendered
before or after the adoption of such amendment.

 

(c)           The Corporation hereby agrees to
indemnify and hold harmless (including, without limitation, by advancement of
expenses) each Director with respect to his service on, and any matter or
transaction considered by, the Special Committee to the fullest extent
authorized or permitted by law.

 

(d)           In addition to (but not in
duplication of) the general right to indemnification set forth in Article 10 of
its By-Laws and this Section 3, and any other rights to indemnification
to which the Directors are entitled under applicable law or otherwise, the
Corporation hereby agrees to provide each Director with respect to his service
on, and any matter or transaction considered by, the Special Committee the
specific rights to indemnification set forth in Section 4 through Section 11
of this Agreement.

 

2

 

Section 4.            Indemnification for a Proceeding,
etc.

 

(a)           Proceedings Other Than Proceedings
by or in the Right of the Corporation. Each Director shall be entitled to
the rights of indemnification provided in this Section 4(a) if, by
reason of his status as a person who is or was a member of the Special
Committee or was otherwise a director of the Company (“Corporate Status”),
he is, or is threatened to be made, a party to or participant in any Proceeding
(as hereinafter defined) other than a Proceeding by or in the right of the
Corporation. Pursuant to this Section 4(a), each Director shall be
indemnified against all expenses, judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by him or on his behalf in
connection with such Proceeding or any claim, issue or matter therein, if he
acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Corporation and, with respect to any
criminal Proceeding, had no reasonable cause to believe his conduct was
unlawful. For purposes of this Agreement, “fines” shall include, without
limitation, excise taxes assessed against the Director with respect to an
employee benefit plan.

 

(b)           Proceedings by or in the Right of
the Corporation. Each Director shall be entitled to the rights of
indemnification provided in this Section 4(b) if, by reason of his
Corporate Status, he is, or is threatened to be made, a party to or participant
in any Proceeding brought by or in the right of the Corporation to procure a
judgment in its favor. Pursuant to this Section 4(b), each Director
shall be indemnified against all expenses actually and reasonably incurred by
him or on his behalf in connection with such Proceeding if he acted in good
faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Corporation; provided, however, that, if
applicable law so provides, no indemnification against such expenses shall be
made in respect of any claim, issue or matter in such Proceeding as to which
such Director shall have been finally adjudged to be liable to the Corporation
unless and to the extent that the Court of Chancery of the State of Delaware
shall determine that such indemnification may be made.

 

(c)           Indemnification for Expenses of a
Party Who is Wholly or Partly Successful. Notwithstanding any other
provision of this Agreement, to the extent that a Director is, by reason of his
Corporate Status, a party to and is successful, on the merits or otherwise, in
any Proceeding, he shall be indemnified to the maximum extent permitted by law
against all expenses actually and reasonably incurred by him or on his behalf
in connection therewith. If a Director is not wholly successful in such
Proceeding, but is successful, on the merits or otherwise, as to one or more,
but less than all claims, issues or matters in such Proceeding, the Corporation
shall indemnify such Director against all expenses actually and reasonably
incurred by him or on his behalf in connection with each successfully resolved
claim, issue or matter. For purposes of this Section and without limitation,
the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result
as to such claim, issue or matter.

 

(d)           Additional Indemnity. In
addition to, and without regard to any limitations on, the indemnification
provided for in Section 4(a)-(c), the Corporation shall 

 

3

 

and hereby does indemnify and hold harmless each
Director against all expenses, judgments, penalties, fines and amounts paid in
settlement actually and reasonably incurred by him or on his behalf if, by
reason of his Corporate Status he is, or is threatened to be made, a party to
or participant in any Proceeding (including, without limitation, a Proceeding
by or in the right of the Corporation). The only limitation that shall exist
upon the Corporation’s obligations pursuant to this Agreement shall be that the
Corporation shall not be obligated to make any payment to a Director that is
finally determined (under the procedures, and subject to the presumptions, set
forth in Sections 6, 7 and 8 hereof) to be unlawful under
Delaware law.

 

(e)           Contribution in the Event of Joint
Liability.

 

(i)    Whether or
not the indemnification provided in Section 4(a)-(d) hereof is
available, in respect of any threatened, pending or completed action, suit or
proceeding in which Corporation is jointly liable with any Director (or would
be if joined in such action, suit or proceeding), Corporation shall pay, in the
first instance, the entire amount of any judgment or settlement of such action,
suit or proceeding without requiring such Director to contribute to such
payment and the Corporation hereby waives and relinquishes any right of
contribution it may have against such Director. The Corporation shall not enter
into any settlement of any action, suit or proceeding in which the Corporation
is jointly liable with a Director (or would be if joined in such action, suit
or proceeding) unless such settlement provides for a full and final release of
all claims asserted against such Director.

 

(ii)   Without
diminishing or impairing the obligations of the Corporation set forth in the preceding
subparagraph, if, for any reason, a Director shall elect or be required to pay
all or any portion of any judgment or settlement in any threatened, pending or
completed action, suit or proceeding in which Corporation is jointly liable
with such Director (or would be if joined in such action, suit or proceeding),
the Corporation shall contribute to the amount of expenses, judgments, fines
and amounts paid in settlement actually and reasonably incurred and paid or
payable by such Director in proportion to the relative benefits received by the
Corporation and all officers, directors or employees of the Corporation other
than such Director who are jointly liable with him (or would be if joined in
such action, suit or proceeding), on the one hand, and the Director, on the
other hand, from the transaction from which such action, suit or proceeding
arose; provided, however, that the proportion determined on the basis of
relative benefit may, to the extent necessary to conform to law, be further
adjusted by reference to the relative fault of the Corporation and all
officers, directors or employees of the Corporation other than such Director
who are jointly liable with the Director (or would be if joined in such action,
suit or proceeding), on the one hand, and the Director, on the other hand, in
connection with the events that resulted in such expenses, judgments, fines or
settlement amounts, as well as any other equitable considerations which the law
may require to be considered. The relative fault of the Corporation and all
officers, directors or employees of the Corporation other than the Director who
are jointly liable with him (or would be if joined in such action, suit or
proceeding), on the one hand, and the Director, on the other hand, shall be
determined by reference to, among other things, the degree to which their
actions were motivated by intent to gain personal profit 

 

4

 

or advantage, the degree to which their liability is
primary or secondary, and the degree to which their conduct is active or
passive.

 

(iii)  The
Corporation hereby agrees to fully indemnify and hold each Director harmless
from any claims of contribution which may be brought by officers, directors or
employees of the Corporation who may be jointly liable with such Director.

 

Section 5.               Advancement of Expenses and
Costs. If a Director is made or threatened to be made a party to a
Proceeding, the Director is entitled, upon written request to the Corporation,
to payment or reimbursement by the Corporation, within ten (10) days of receipt
of the request, of all reasonable expenses, including, without limitation,
attorneys’ fees and disbursements, incurred by the Director, whether prior to
or after the final disposition of the Proceeding. Such request shall reasonably
evidence the expenses incurred by the Director and shall include or be preceded
or accompanied by an undertaking by or on behalf of such Director to repay any
expenses advanced if it shall ultimately be determined that such Director is
not entitled to such expenses. Any advances and undertakings to repay pursuant
to this Section 5 shall be unsecured and interest free and shall be
accepted without reference to financial ability to make the repayment. A
Director’s entitlement to such expenses shall include those incurred in
connection with any Proceeding by such Director seeking an adjudication
pursuant to this Agreement.

 

Section 6.               Determination of Entitlement
to Indemnification or Advances. It is the intent of this Agreement to secure
for each Director rights of indemnity that are as favorable as may be permitted
under the law and public policy of the State of Delaware. Accordingly, the
parties agree that the following procedures and presumptions shall apply in the
event of any question as to whether a Director is entitled to indemnification
under this Agreement:

 

(a)           To obtain indemnification (including,
without limitation, the advancement of expenses and contribution by the
Corporation) under this Agreement, a Director shall submit to the Corporation a
written request, including therein or therewith such documentation and
information as is reasonably available to such Director and is reasonably
necessary to determine whether and to what extent a Director is entitled to
indemnification. The Secretary of the Corporation shall, promptly upon receipt
of such a request for indemnification, advise the Board of Directors in writing
that such Director has requested indemnification.

 

(b)           Upon written request by a Director
for indemnification pursuant to the first sentence of Section 6(a)
hereof, a determination, if required by applicable law, with respect to a
Director’s entitlement thereto shall be made in the specific case by one of the
following three methods, which shall be at the election of such Director:  (i) by a majority vote of the Disinterested
Directors, even though less than a quorum, or (ii) by Independent Legal Counsel
in a written opinion or (iii) by the stockholders.

 

(c)           If the determination of entitlement
to indemnification is to be made by Independent Legal Counsel pursuant to Section
6(b) hereof, the Independent Legal 

 

5

 

Counsel shall be selected as provided in this Section
6(c). The Corporation and its Board of Directors agree that, in the event
of an election to use an Independent Legal Counsel under Section 6(b),
that such election shall, by virtue of, among other things, their approval of
this Agreement, be deemed at the direction of the directors of the Corporation.
The Independent Legal Counsel shall be selected by the Director (unless such
Director shall request that such selection be made by the Board of Directors). Such
Director or the Corporation, as the case may be, may, within ten (10) days
after such written notice of selection shall have been given, deliver to the
Corporation or to the Director, as the case may be, a written objection to such
selection; provided, however, that such objection may be asserted only
on the ground that the Independent Legal Counsel so selected does not meet the
requirements of “Independent Legal Counsel” as defined in Section 16(b)
of this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Legal Counsel. If a written
objection is made and substantiated, the Independent Legal Counsel selected may
not serve as Independent Legal Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If,
within thirty (30) days after submission by a Director of a written request for
indemnification pursuant to Section 6(a) hereof, no Independent Legal
Counsel shall have been selected and not objected to, either the Corporation or
the Director may petition the Court of Chancery of the State of Delaware or
other court of competent jurisdiction for resolution of any objection which
shall have been made by the Corporation or such Director to the other’s
selection of Independent Legal Counsel and/or for the appointment as
Independent Legal Counsel of a person selected by the court or by such other
person as the court shall designate, and the person with respect to whom all
objections are so resolved or the person so appointed shall act as Independent
Legal Counsel under Section 6(b) hereof. The Corporation shall pay any
and all reasonable fees and expenses of Independent Legal Counsel incurred by
such Independent Legal Counsel in connection with acting pursuant to Section
6(b) hereof, and the Corporation shall pay all reasonable fees and expenses
incident to the procedures of this Section 6(c), regardless of the
manner in which such Independent Legal Counsel was selected or appointed.

 

(d)           The Corporation acknowledges that a
settlement or other disposition short of final judgment may be successful if it
permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any action, claim or proceeding to which a
Director is a party is resolved in any manner other than by adverse judgment
against such Director (including, without limitation, settlement of such
action, claim or proceeding with or without payment of money or other
consideration) it shall be presumed (unless there is a preponderance of
competent evidence to the contrary) that such Director has been successful on
the merits or otherwise in such action, suit or proceeding.

 

(e)           Each Director shall reasonably
cooperate with the person, persons or entity making such determination with respect
to such Director’s entitlement to indemnification, including providing to such
person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to such Director and 

 

6

 

reasonably necessary to such determination. Any
Independent Legal Counsel, member of the Board of Directors, or stockholder of
the Corporation shall act reasonably and in good faith in making a
determination under the Agreement of a Director’s entitlement to
indemnification. Any costs or expenses (including, without limitation,
attorneys’ fees and disbursements) incurred by a Director in so cooperating
with the person, persons or entity making such determination shall be borne by
the Corporation (irrespective of the determination as to such Director’s
entitlement to indemnification) and the Corporation hereby indemnifies and
agrees to hold each Director harmless therefrom.

 

Section 7.               Presumptions and Effect of
Certain Proceedings. In making a determination with respect to entitlement
or indemnification hereunder, the persons or entity making such determination
shall presume (unless there is clear and convincing evidence to the contrary)
that a Director is entitled to indemnification under this Agreement if such
Director has submitted a request for indemnification in accordance with this
Agreement. If the person(s) so empowered to make such determination shall have
failed to make the requested determination within sixty (60) days after receipt
by the Corporation of such request, the requisite determination of entitlement
to indemnification shall be deemed to have been made and such Director shall be
absolutely entitled to such indemnification absent actual and material fraud. A
Director shall be deemed to have acted in good faith if such Director’s action
is based on the records or books of account of the Corporation, including,
without limitation, financial statements, or on information supplied to such
Director by the officers of the Corporation in the course of their duties, or
on the advice of legal counsel for the Corporation or the Special Committee or
on information or records given or reports made to the Corporation or the
Special Committee by an independent certified public accountant, by a financial
advisor or by an appraiser or other expert selected with reasonable care by the
Corporation or the Special Committee. In addition, the knowledge and/or
actions, or failure to act, of any director, officer, agent or employee of the
Corporation shall not be imputed to a Director for purposes of determining the
right to indemnification under this Agreement. Whether or not the foregoing
provisions of this Section 7 are satisfied, it shall in any event be
presumed (unless there is clear and convincing evidence to the contrary) that
each Director has at all times acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the Corporation.
Neither the failure of the Company (including by its directors or Independent
Legal Counsel) to have made a determination prior to the commencement of any
action pursuant to this Agreement that indemnification is proper in the
circumstances because a Director has met the applicable standard of conduct,
nor an actual determination by the Company (including by its directors or
Independent Legal Counsel) that such Director has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that such Director has not met the applicable standard of conduct. The
termination of a  Proceeding described in
Section 4 hereof by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not, of itself,
(a) establish that the Director does not meet the criteria for entitlement to
indemnification set forth in Section 4 hereof or (b) otherwise
adversely affect the rights of such Director to indemnification except as may
be provided herein. The knowledge and/or actions, or failure to act, of any
other director, officer, trustee, partner, managing member, fiduciary, agent or
employee of the 

 

7

 

Corporation shall not be
imputed to a Director for purposes of determining the right to indemnification
under this Agreement.

 

Section 8.               Remedies of Director in Cases
of Determination not to Indemnify or to Advance Expenses. In the event that
(a) a determination is made that a Director is not entitled to indemnification
hereunder, (b) advancement of expenses is not timely made pursuant to Section
5 hereof, (c) no determination of entitlement to indemnification shall have
been made pursuant to Section 6 hereof within ninety (90) days after
receipt by the Corporation of the request for indemnification, (d) payment of
indemnification is not made pursuant to this Agreement within ten (10) days
after receipt by the Corporation of a written request therefor or (e) payment
of indemnification is not made within ten (10) days following a determination
of entitlement to indemnification pursuant to Section 6 and Section 7
hereof, such Director shall be entitled to a final adjudication in an
appropriate court of the State of Delaware or any other court of competent
jurisdiction of his entitlement to such indemnification or advance. Such
judicial proceeding shall be made de novo and such Director shall
not be prejudiced by reason of a determination (if so made) that he is not
entitled to indemnification. If a determination is made or deemed to have been
made pursuant to the terms of Section 6 or Section 7 hereof that
a Director is entitled to indemnification, the Corporation shall be bound by
such determination and shall be precluded from asserting that such determination
has not been made or that the procedure by which such determination was made is
not valid, binding and enforceable. The Corporation further agrees to stipulate
in any such court that the Corporation is bound by all the provisions of this
Agreement and is precluded from making any assertion to the contrary. If the
court shall determine that a Director is entitled to any indemnification
hereunder, the Corporation shall pay all reasonable expenses (including
attorneys’ fees) and costs actually incurred by such Director in connection
with such adjudication (including, without limitation, any appellate
proceedings). If a director commences a judicial proceeding or arbitration
pursuant to this Section 8, such Director shall not be required to
reimburse the Corporation for any advances pursuant to Section 5 hereof
until a final determination is made with respect to such Director’s entitlement
to indemnification (as to which all rights of appeal have been exhausted or
lapsed). The Corporation shall indemnify and hold harmless each Director to the
fullest extent permitted by law against all expenses and, if requested by such
Director, shall (within ten (10) days after the Corporation’s receipt of such
written request) advance such expenses to such Director, which are incurred by
the Director in connection with any judicial proceeding or arbitration brought
by the Director (a) to enforce his rights under, or to recover damages for
breach of, this Agreement or any other indemnification, advancement or
contribution agreement or provision of the Corporation’s Certificate of
Incorporation or By-Laws now or hereafter in effect or (b) for recovery or
advances under any insurance policy maintained by any person for the benefit of
the Director, regardless of whether the Director ultimately is determined to be
entitled to such indemnification, advance, contribution or insurance recovery,
as the case may be. Interest shall be paid by the Corporation to a Director at
the legal rate under Delaware law for amounts which the Corporation indemnifies
or is obliged to indemnify for the period commencing with the date on which
Indemnitee requests indemnification (or reimbursement or advancement 

 

8

 

of any expenses) and
ending with the date on which such payment is made to the Director by the
Corporation.

 

Section 9.               Reimbursement for Expenses of
Witness. To the extent that a Director has served as a witness in any
Proceeding at a time when such Director has not been made a party to the Proceeding,
the Corporation shall reimburse such Director for all expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

 

Section 10.             Other Rights of Indemnification
and Insurance.

 

(a)           The indemnification and advancement of
expenses (including, without limitation, attorneys’ fees) and costs provided by
this Agreement shall not be deemed exclusive of any other rights to which any
Director may now or in the future be entitled under any agreement, provision of
the By-Laws, or provision of the Articles of Incorporation, vote of
stockholders or Disinterested Directors of the Corporation, provision of law or
otherwise.

 

(b)           To the extent that the Corporation
maintains an insurance policy or policies providing liability insurance for
directors, officers, employees or agents or fiduciaries of the Corporation or
of any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise which such person serves at the request of the
Corporation, including, without limitation, the Directors and Officers
Liability Insurance Policies, each dated August 25, 2007, issued to the
Corporation by National Union Fire Insurance Company of Pittsburg, Pa. and the
Federal Insurance Company (collectively, the “Current D&O Policy”) each
Director shall be covered by such policy or policies in accordance with its or
their terms to the maximum extent of the coverage available for any such
director, officer, employee or agent under such policy or policies. The
Corporation hereby covenants and agrees to maintain the Current D&O Policy
on terms and subject to conditions at least as favorable to the Directors as
the terms and conditions that exist as of the date of this Agreement. In the
event that, notwithstanding the foregoing, the Current D&O Policy is no
longer in full force and effect or is otherwise unavailable, the Corporation
shall obtain and maintain a policy or policies of insurance providing liability
insurance for the Directors on terms and subject to conditions not materially
different from, and in no way less favorable to the Directors than, the Current
D&O Policy; provided that the Corporation shall not be required to
pay an aggregate premium for such insurance coverage in excess of 200% of the
amount of the premium for the Current D&O Policy on the date of this
Agreement, but shall, in such case, purchase as much coverage as possible for
such amount.

 

Section 11.          Attorneys’ Fees and Other Expenses
to Enforce Agreement. In the event that a Director is subject to or intervenes
in any  Proceeding in which the validity
or enforceability of this Agreement is at issue or seeks an adjudication or
award in arbitration to enforce his rights under, or to recover damages for
breach of, this Agreement, such Director, if he prevails in whole or in part in
such action, shall be entitled to recover from the Corporation and shall be
indemnified by the Corporation against, any actual expenses for attorneys’ fees
and disbursements reasonably incurred by him.

 

9

 

Section 12.          Duration of Agreement. This
Agreement shall continue until and terminate upon the later of:  (a) ten (10) years after a Director has
completed his service as a member of the Special Committee or (b) the
final termination of all pending or threatened actions, suits, Proceedings or
investigations with respect to the Special Committee. This Agreement shall be
binding upon the Corporation and its successors and assigns and shall inure to
the benefit of each Director and his spouse, assigns, heirs, devisees,
executors, administrators or other legal representatives.

 

Section 13.          Severability. If any provision
or provisions of this Agreement shall be held to be invalid, illegal or rceable
for any reason whatsoever:  (a) the
validity, legality and enforceability of the remaining provisions of this
Agreement (including, without limitation, all portions of any paragraphs of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall
not in any way be affected or impaired thereby and (b) to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, all portions of any paragraph of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested by the provision held invalid, illegal or unenforceable.

 

Section 14.          Identical Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original but all of which together shall
constitute one and the same agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence
the existence of this Agreement.

 

Section 15.          Headings. The headings of the
paragraphs of this Agreement are inserted for convenience only and shall not be
deemed to constitute part of this Agreement or to affect the construction
thereof.

 

Section 16.          Definitions. For purposes of
this Agreement:

 

(a)           “Disinterested Directors” shall mean
a director of the Corporation who is not a member of the Special Committee and
who is not at the time a party to the Proceeding in respect of which
indemnification is being sought by a Director.

 

(b)           “Independent Legal Counsel” means a
law firm or a member of a law firm that is experienced in matters of
corporation law and who has not represented the Corporation or related
organization, or a director, officer, member of a committee of the board or
employee, whose indemnification is in issue. Notwithstanding the foregoing, the
term “Independent Legal Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a
conflict of interest in representing either the Corporation or any Director in
an action to determine such Director’s right to indemnification under this
Agreement. The Corporation agrees to pay the reasonable fees of the Independent
Legal Counsel referred to above and to fully indemnify such counsel against any
and all expenses, claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

 

10

 

(c)           “Proceeding” means a threatened,
pending or completed civil, criminal, administrative, arbitration or
investigative proceeding, including, without limitation, a proceeding by or in
the right of the Corporation.

 

Section 17.          Modification and Waiver. No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by all of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

Section 18.          Notice by Director. Each
Director agrees promptly to notify the Corporation in writing upon being served
with any summons, citation, subpoena, complaint, indictment, information or
other document relating to any matter which may be subject to indemnification
covered hereunder, either civil, criminal or investigative.

 

Section 19.          Notices. All notices, requests,
demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given if (a) delivered by hand and receipted for by
the party to whom said notice or other communication shall have been directed
or (b) mailed by certified or registered mail with postage prepaid, on the
third business day after the date on which it is so mailed:

 

(a)                      If
to Mr. Linton, to:

 

c/o Bruker BioSciences Corporation

40 Manning Road

Billerica, Massachusetts 01821

 

with a copy to:

 

Frederick W. Kanner, Esq.

Bryan J. Luchs, Esq.

Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, New York 10019

 

(b)                     If
to Mr. D’Silva, to:

 

c/o Bruker BioSciences Corporation

40 Manning Road

Billerica, Massachusetts 01821

 

with a copy to:

 

Frederick W. Kanner, Esq.

Bryan J. Luchs, Esq.

 

11

 

Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, New York 10019

 

(c)                        If
to Mr. Kniss, to:

 

c/o Bruker BioSciences Corporation

40 Manning Road

Billerica, Massachusetts 01821

 

with a copy to:

 

Frederick W. Kanner, Esq.

Bryan J. Luchs, Esq.

Dewey & LeBoeuf LLP

1301 Avenue of the Americas

New York, New York 10019

 

(d)                       If
to the Corporation, to:

 

Richard M. Stein, Esq.

Nixon Peabody LLP

101 Federal Street

Boston, Massachusetts 
02110

 

or to such other address as may have been furnished to
the Directors by the Corporation or to the Corporation by a Director, as the
case may be.

 

Section 20.          Governing Law. The parties
agree that this Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware.

 

12

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

 

 

	
   

  	
  BRUKER BIOSCIENCES
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William J.
  Knight

  
	
   

  	
   

  	
   

  	
  Name: William J.
  Knight

  
	
   

  	
   

  	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ WILLIAM A. LINTON  

  	
   

  	
   

  	
   

  
	
  William A.
  Linton

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ COLLIN D’ SILVA  

  	
   

  	
   

  
	
  Collin D’Silva

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ RICHARD D. KNISS  

  	
   

  	
   

  
	
  Richard D. Kniss

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

13

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