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				EXHIBIT 10.8

				

				

				THIS SECURED DEBENTURE, AND THE SECURITIES INTO WHICH IT IS CONVERTIBLE (COLLECTIVELY, THE “SECURITIES”), HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE.  THE SECURITIES MAY NOT BE OFFERED OR SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT OR PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE.

				

				

			

		

		
			SECURED DEBENTURE

					

					XINHUA CHINA LTD

						

					2% Secured Convertible Debenture

					

					Due November 22, 2010

		

		
			

				
						No.  HHF-001

						
						US$1,250,000

					

			

			          This Secured Debenture (the “Debenture”) is issued on November 23, 2005 (the “Closing Date”) by Xinhua China Ltd, a Nevada corporation (the “Company”), to Highgate House Funds, Ltd. (together with its permitted successors and assigns, the “Holder”) pursuant to exemptions from registration under the Securities Act of 1933, as amended, pursuant to a Securities Purchase Agreement, dated November 23, 2005 (the “Securities Purchase Agreement”) among the Company and Buyer(s) listed on Schedule I hereto.

				

			

		

		
			ARTICLE I.

					

				

		

		
			          Section 1.01     Principal and Interest.  For value received, the Company hereby promises to pay to the order of the Holder on the date November 22, 2010 (“Maturity Date”), in lawful money of the United States of America and in immediately available funds the principal sum of One Million Two Hundred Fifty Thousand Dollars ($1,250,000), together with interest on the unpaid principal of this Debenture at the rate of two percent (2%) per year (compounded monthly) from the date of this Debenture until paid.  At the Holder’s option, the entire principal amount and all accrued interest hereof shall be either (a) paid to the Holder on the Maturity Date or (b) converted in accordance with Section 1.02 herein. 

				

				          Section 1.02    Optional Conversion.  The Holder is entitled, at its option, to convert, and sell on the same day, at any time and from time to time, until payment in full of this Debenture, all or any part of the principal amount of the Debenture, plus accrued interest, into shares (the “Conversion Shares”) of the Company’s common stock, par value $.00001 per share (“Common Stock”), at the lesser of: (i) $3.50 (the “Fixed Price”); or (ii) One Hundred 

			

			

			

			

			

			

			

			

			Percent (100%) of the average of the three (3) lowest Closing Bid Prices per share of the Common Stock during the forty (40) trading days immediately preceding the date of conversion (the “Future Price”) (the “Conversion Price”); provided, however, that the aggregate maximum number of shares of Common Stock that this Convertible Debenture may be converted into shall be Ten Million (10,000,000) shares of Common Stock (the “Maximum Conversion”); and further provided, however, that upon the Maximum Conversion, the Company shall, at its option (a) increase the Maximum Conversion or (b) redeem the unconverted amount of all of the Convertible Debentures in whole at one hundred thirty five percent (135%) of the unconverted amount of such Convertible Debentures being redeemed plus accrued interest thereon.  Notwithstanding anything contained herein to the contrary, if an Event of Default as defined in Section 3.01 hereof is continuing the Holder is entitled, at its option, to convert, and sell on the same day, at any time from time to time, until payment in full of this Debenture, all or any part of the principal amount of the Debenture, plus accrued interest, into Conversion Shares at a price per share equal to twenty percent (20%) of the Fixed Price (the “Default Conversion Price”).  For purposes of determining the “Closing Bid Price” on any day, reference shall be to the closing bid price for a share of Common Stock on such date on the OTCBB (or such other exchange, market, or other system that the Common Stock is then traded on), as reported on Bloomberg, L.P. (or similar organization or agency succeeding to its functions of reporting prices).  No fraction of shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share.  To convert this Debenture, the Holder hereof shall deliver written notice thereof, substantially in the form of Exhibit A to this Debenture, with appropriate insertions (the “Conversion Notice”), to the Escrow Agent (as defined in the Securities Purchase Agreement), if there is an Event of Default, the Company at its address as set forth herein and the Transfer Agent (as defined in the Irrevocable Transfer Agent Instructions) pursuant to the Irrevocable Transfer Agent Instructions.  The date upon which the conversion shall be effective (the “Conversion Date”) shall be deemed to be the date set forth in the Conversion Notice.  The Holder has the right to convert this Debenture after the Maturity Date.  Except as otherwise provided herein, the Company shall not have the right to object to the conversion or the calculation of the applicable conversion price, absent manifest error and the Escrow Agent, if there is an Event of Default, or the Transfer Agent shall release the shares of Common Stock from escrow upon notifying the Company of the conversion.  Any conversion of any portion of the Debenture to Common Stock shall be deemed to be pre-payment of principal plus accrued and unpaid interest, without any penalty, and shall be credited against any future payments of principal and interest in the order that such payments become due and payable.

			

			          Section 1.03     Reservation of Common Stock.  As set forth in Section 6(c) of the Securities Purchase Agreement, the Company shall reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of this Debenture, that number of shares of Common Stock equal to a multiple of five (5) times the number of shares of Common Stock into which the Debenture is convertible from time to time based upon the Conversion Price.  If at any time the Company does not have a sufficient number of Conversion Shares authorized and available, then the Company shall call and hold a special meeting of its stockholders within sixty (60) days of that time for the sole purpose of increasing the number of authorized shares of Common Stock.

			

			          Section 1.04     Right of Redemption.  The Company at its option shall have the right to redeem, with three (3) business days advance written notice (the “Redemption Notice”), a 

			

			

		

		
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			portion or all outstanding convertible debenture.  The redemption price shall be One Hundred Thirty Five percent (135%) (the “Redemption Price”) of the face amount redeemed plus accrued interest.  The Company shall pay the Redemption Price on all payments made pursuant to the Debenture, including payments made before, on, or after the Maturity Date.

			

			          Section 1.05     Registration Rights.  The Company is obligated to register the resale of the Conversion Shares under the Securities Act of 1933, as amended, pursuant to the terms of an Investor Registration Rights Agreement, between the Company and Highgate House Funds, Ltd. of even date herewith (the “Investor Registration Rights Agreement”).

			

			          Section 1.06     Interest Payments.  The interest so payable shall be paid at the time of maturity or conversion to the person in whose name this Debenture is registered.  Interest shall be paid in cash (via wire transfer or certified funds).  In the event of default, as described in Section 3.01 hereunder, the Holder may elect that the interest be paid in cash (via wire transfer or certified funds) or in the form of Common Stock.  If paid in the form of Common Stock, the amount of stock to be issued will be calculated as follows: the value of the stock shall be the Closing Bid Price on:  (i) the date the interest payment is due; or (ii) if the interest payment is not made when due, the date the interest payment is made.  A number of shares of Common Stock with a value equal to the amount of interest due shall be issued.  No fractional shares will be issued; therefore, in the event that the value of the Common Stock per share does not equal the total interest due, the Company will pay the balance in cash.

			

			          Section 1.07     Paying Agent and Registrar.  Initially, the Company will act as paying agent and registrar.  The Company may change any paying agent, registrar, or Company-registrar by giving the Holder not less than ten (10) business days’ written notice of its election to do so, specifying the name, address, telephone number and facsimile number of the paying agent or registrar.  The Company may act in any such capacity.

			

			          Section 1.08     Secured Nature of Debenture.  This Debenture is secured by all of the assets and property of the Company as set forth on Exhibit A to the Security Agreement dated the date hereof between the Company and Highgate House Funds, Ltd. (the “Security Agreement”).

			

			          Section 1.09     The Escrow Shares.  The Company shall deposit 20,000,000 shares of Common Stock with the Escrow Agent as “Escrow Shares.”  If there is an Event of Default, upon receipt of the Conversion Notice from the Holder, the Escrow Agent shall distribute the Conversion Shares to Holder pursuant to this Debenture and the Securities Purchase Agreement including Exhibit F thereto.

			

		

		
			ARTICLE II.

					

				

		

		
			          Section 2.01     Amendments and Waiver of Default.  The Debenture may not be amended.  Notwithstanding the above, without the consent of the Holder, the Debenture may be amended to cure any ambiguity, defect or inconsistency, or to provide for assumption of the Company obligations to the Holder.

			

			

			

			

			

		

		
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			ARTICLE III.

					

				

		

		
			          Section 3.01     Events of Default.  An Event of Default is defined as follows: (a) failure by the Company to pay amounts due hereunder on the Maturity Date; (b) failure by the Company’s transfer agent to issue freely tradable Common Stock to the Holder within five (5) days of the Company’s receipt of the attached Conversion Notice from Holder; (c) failure by the Company to comply with any other obligation in the Debenture, which is not cured by the Company within twenty (20) days after notice is sent to the Company to cure such noncompliance; (d) failure to comply with the terms of the Irrevocable Transfer Agent Instructions (as defined in the Securities Purchase Agreement); (e) if the Company files for relief under the United States Bankruptcy Code (the “Bankruptcy Code”) or under any other state or federal bankruptcy or insolvency law, or files an assignment for the benefit of creditors, or if an involuntary proceeding under the Bankruptcy Code or under any other federal or state bankruptcy or insolvency law is commenced against the Company; and (f) a breach by the Company of its obligations under any of the Transaction Documents (as defined in the Securities Purchase Agreement) where after notice of such breach by the Holder such breach is not cured within twenty (20) days of the date of such notice.  Upon the occurrence of an Event of Default, the Holder may, in its sole discretion, (i) accelerate full repayment of all debentures outstanding and accrued interest thereon at the Redemption Price and/or (ii) may, convert the unpaid principal amount of this Debenture at the then Default Conversion Price.  The failure of the Company to make Payments due under Section 1.06 shall also be deemed as an Event of Default.  Upon an Event of Default, the Escrow Agent is authorized and directed to release the Escrow Shares to the Buyer if requested by the Buyer, without approval of the Company.  Upon an Event of Default, the Holder, in addition to any other remedies, shall have the right (but not the obligation) to convert this Debenture at any time after an Event of Default and require the issuance of additional Escrow Shares pursuant to the Securities Purchase Agreement and this Debenture.  In the event the Conversion Price is reduced below $.95 pursuant to Article V hereof or otherwise, the Default Conversion Price shall be reduced to a price equal to such Conversion Price. 

				

				          Section 3.02     Failure to Issue Unrestricted Common Stock. As indicated in Section 3.01, a breach by the Company of its obligations under the Investor Registration Rights Agreement shall be deemed an Event of Default, which if not cured within ten (10) days, shall entitle the Holder to accelerate full repayment of all debentures outstanding and accrued interest thereon or, notwithstanding any limitations contained in this Debenture and/or the Securities Purchase Agreement, to convert all debentures outstanding and accrued interest thereon into shares of Common Stock pursuant to Section 1.02 herein.  The Company acknowledges that failure to honor a Conversion Notice shall cause irreparable harm to the Holder. 

				

			

		

		
			ARTICLE IV.

					

				

		

		
			          Section 4.01     Rights and Terms of Conversion.  This Debenture, in whole or in part, may be converted at any time following the First Closing Date (as defined in the Securities Purchase Agreement), into shares of Common Stock at a price equal to the Conversion Price as described in Section 1.02 above.

		

		
			

			

			

		

		
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			          Section 4.02     Re-issuance of Debenture.  When the Holder elects to convert a part of the Debenture, then the Company shall reissue a new Debenture in the same form as this Debenture to reflect the new principal amount.

			

		

		
			ARTICLE V.

					

				

		

		
			          Section 5.01     Anti-dilution.  Adjustment of Fixed Conversion Price or Future Price.  The Fixed Conversion Price or Future Price shall be adjusted from time to time as follows:

				
                              (a)       Adjustment of Fixed Conversion Price and Number of Shares upon Issuance of Common Stock.  If and whenever on or after the Closing Date of this Debenture, the Company issues or sells, or is deemed to have issued or sold, any shares of Common Stock (other than (i) Excluded Securities (as defined herein) and (ii) shares of Common Stock which are issued or deemed to have been issued by the Company in connection with an Approved Stock Plan (as defined herein) or upon issuance, exercise or conversion of the Other Securities (as defined herein)) for a consideration per share less than a price (the “Applicable Price”) equal to the Fixed Conversion Price in effect immediately prior to such issuance or sale, then immediately after such issue or sale the Fixed Conversion Price then in effect shall be reduced to an amount equal to such consideration per share, provided that in no event shall the Fixed Conversion Price be reduced below $.00001.

				
                              (b)       Effect on Fixed Conversion Price of Certain Events.  For purposes of determining the adjusted Fixed Conversion Price under Section 5.01(a) above, the following shall be applicable:

				
                                        (i)        Issuance of Options.  If after the date hereof, the Company in any manner grants any rights, warrants or options to subscribe for or purchase Common Stock or convertible securities (“Options”) and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange of any convertible securities issuable upon exercise of any such Option is less than the Fixed Conversion Price then in effect, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share.  For purposes of this Section 5.01(b)(i), the lowest price per share for which one share of Common Stock is issuable upon exercise of such Options or upon conversion or exchange of such convertible securities shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option or upon conversion or exchange of any other convertible security other than this Debenture issuable upon exercise of such Option.  No further adjustment of the Fixed Conversion Price shall be made upon the actual issuance of such Common Stock or of such convertible securities upon the exercise of such Options or upon the actual issuance of such Common Stock upon conversion or exchange of such convertible securities.

				
                                        (ii)      Issuance of Convertible Securities.  If the Company in any manner issues or sells any convertible securities after the Closing Date and the lowest price per share for which one share of Common Stock is issuable upon the conversion or exchange thereof is less than the Fixed Conversion Price then in effect, then such share of Common Stock shall be 

				

				

			

		

		
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			deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such convertible securities for such price per share.  For the purposes of this Section 5.01(b)(ii), the lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the convertible security and upon conversion or exchange of such convertible security.  No further adjustment of the Fixed Conversion Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such convertible securities, and if any such issue or sale of such convertible securities is made upon exercise of any Options for which adjustment of the Fixed Conversion Price had been or are to be made pursuant to other provisions of this Section 5.01(b), no further adjustment of the Fixed Conversion Price shall be made by reason of such issue or sale.

			
                                        (iii)     Change in Option Price or Rate of Conversion.  If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion or exchange of any convertible securities, or the rate at which any convertible securities are convertible into or exchangeable for Common Stock changes at any time, the Conversion Price in effect at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options or convertible securities provided for such changed purchase price, additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold and the number of shares of Common Stock issuable upon conversion of this Debenture shall be correspondingly readjusted.  For purposes of this Section 5.01(b)(iii), if the terms of any Option or convertible security that was outstanding as of the Closing Date of this Debenture are changed in the manner described in the immediately preceding sentence, then such Option or convertible security and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such change.  No adjustment pursuant to this Section 5.01(b) shall be made if such adjustment would result in an increase of the Conversion Price then in effect.

			
                              (c)       Effect on Fixed Conversion Price of Certain Events.  For purposes of determining the adjusted Fixed Conversion Price under Sections 5.01(a) and 5.01(b), the following shall be applicable:

			
                                        (i)        Calculation of Consideration Received.  If any Common Stock, Options or convertible securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefore will be deemed to be the net amount received by the Company therefore.  If any Common Stock, Options or convertible securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration received by the Company will be the market price of such securities on the date of receipt of such securities.  If any Common Stock, Options or 

			

			

		

		
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			convertible securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefore will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such Common Stock, Options or convertible securities, as the case may be.  The fair value of any consideration other than cash or securities will be determined jointly by the Company and the holders of the Debenture representing at least two-thirds of the shares of Common Stock issuable upon conversion of the Debenture then outstanding.  If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the holders of the Debenture representing at least two-thirds of the shares of Common Stock issuable upon conversion of the Debenture then outstanding.  The determination of such appraiser shall be final and binding upon all parties and the fees and expenses of such appraiser shall be borne by the Company.

			
                                        (ii)      Integrated Transactions.  In case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of $.00001.

			
                                        (iii)     Treasury Shares.  The number of shares of Common Stock outstanding at any given time does not include shares owned or held by or for the account of the Company, and the disposition of any shares so owned or held will be considered an issue or sale of Common Stock.

			
                                        (iv)    Record Date.  If the Company takes a record of the holders of Common Stock for the purpose of entitling them (1) to receive a dividend or other distribution payable in Common Stock, Options or in convertible securities or (2) to subscribe for or purchase Common Stock, Options or convertible securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

			
                              (d)       Adjustment of Fixed Conversion Price upon Subdivision or Combination of Common Stock.  If the Company at any time after the date of issuance of this Debenture subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, any Fixed Conversion Price or Future Price in effect immediately prior to such subdivision will be proportionately reduced.  If the Company at any time after the date of issuance of this Debenture combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, any Fixed Conversion Price or Future Price in effect immediately prior to such combination will be proportionately and equitably increased.  Any adjustment under this Section 5.01(d) shall become effective at the close of business on the date the subdivision or combination becomes effective.

			
                              (e)       Distribution of Assets.  If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or other similar transaction) (a “Distribution”), at any 

			

			

		

		
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			time after the issuance of this Debenture, then, in each such case any Fixed Conversion Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Fixed Conversion Price by a fraction of which (A) the numerator shall be the Closing Bid Price of the Common Stock on the trading day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (B) the denominator shall be the Closing Bid Price of the Common Stock on the trading day immediately preceding such record date; and

			
                              (f)       Certain Events.  If any event occurs of the type contemplated by the provisions of this Section 5.01 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the Fixed Conversion Price so as to protect the rights of the holders of the Debenture; provided, except as set forth in Section 5.01(d), that no such adjustment pursuant to this Section 5.01(f) will increase the Fixed Conversion Price as otherwise determined pursuant to this Section 5.01.

			
                              (g)       Notices.

			
                                        (i)        Immediately upon any adjustment of the Fixed Conversion Price or Future Price, the Company will give written notice thereof to the holder of this Debenture, setting forth in reasonable detail, and certifying, the calculation of such adjustment.

			
                                        (ii)       The Company will give written notice to the holder of this Debenture at least ten (10) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any dissolution or liquidation, provided that such information shall be made known to the public prior to or in conjunction with such notice being provided to such holder.

			
                              (h)       Definitions.

			
                                        (i)        “Approved Stock Plan” means any employee benefit plan which has been approved by the Board of Directors of the Company, pursuant to which the Company’s securities may be issued to any employee, officer or director for services provided to the Company.

			
                                        (ii)       “Excluded Securities” means, provided such security is issued at a price which is greater than or equal to the arithmetic average of the Closing Bid Prices of the Common Stock for the ten (10) consecutive trading days immediately preceding the date of issuance, any of the following: (a) any issuance by the Company of securities in connection with a strategic partnership or a joint venture (the primary purpose of which is not to raise equity capital); and (b) any issuance by the Company of securities as consideration for a merger or 

			

			

			

			

		

		
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			consolidation or the acquisition of a business, product, license, or other assets of another person or entity.

			
                                        (iii)      “Other Securities” means (i) those options and warrants of the Company issued prior to, and outstanding on, the Closing Date, (ii) the shares of Common Stock issuable on exercise of such options and warrants, provided such options and warrants are not amended after the Closing Date and (iii) the shares of Common Stock issuable upon conversion of this Debenture, or otherwise in connection with this Debenture.

			
                              (i)       Nothing in this Section 5.01 shall be deemed to authorize the issuance of any securities by the Company in violation of Section 5.02.

			
                              (j)       In the event an Event of Default has occurred, the lesser of the then Conversion Price and the Default Conversion Price shall be used for all calculations in Section 5.01(a) through (g).

			

			          Section 5.02     Consent  of Holder to Sell Capital Stock or Grant Security Interests.  So long as any of the principal of or interest on this Debenture remains unpaid and unconverted, the Company shall not, without the prior consent of the Holder (i) issue or sell any Common Stock or Preferred Stock without consideration or for a consideration per share less than its fair market value determined immediately prior to its issuance, (ii) issue or sell any Preferred Stock, warrant, option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock without consideration or for a consideration per share less than such Common Stock’s fair market value determined immediately prior to its issuance, (iii) enter into any security instrument granting the holder a security interest in any of the assets of the Company, or (iv) file any registration statement on Form S-8.

			

		

		
			ARTICLE VI.

					

				

		

		
			          Section 6.01     Notice.  Notices regarding this Debenture shall be sent to the parties at the following addresses, unless a party notifies the other parties, in writing, of a change of address:

				

			

		

		
				
						If to the Company:

						
						Xinhua China Ltd

						
						 

					
	
						

						
						B-26F Oriental Kenzo, No. 48

						
						 

					
	
						

						
						Dongzhimenwai, Dongcheng District

						
						 

					
	
						

						
						Beijing, P.R. China  100027

						
						 

					
	
						

						
						Attention:          Henry Jung and Xianping Wang

						
						 

					
	
						

						
						Telephone:        86-10-84476951

						
						 

					
	
						

						
						Facsimile:         86-10-84477985

						
						 

					
	
						  

						
						  

						
						 

					
	
						With a copy to:

						
						Devlin Jensen, Barristers & Solicitors

						
						 

					
	
						

						
						P.O. Box 12077

						
						 

					
	
						

						
						555 W. Hastings St., Suite 2550

						
						 

					
	
						

						
						Vancouver, British Columbia

						
						 

					
	
						

						
						Canada  V6B 4N5

						
						 

					
	
						

						
						Attn:     Peter Jensen

						
						 

					
	
						

						
						Telephone:        (604) 684-2550

						
						 

					
	
						

						
						Facsimile:         (604) 684-0916

						
						 

					
	
						  

						
						  

					

			

			

			

		

		
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						If to the Holder:

						
						Highgate House Funds, Ltd.

					
	
						

						
						488 Madison Ave.

					
	
						

						
						New York, NY  10022

					
	
						

						
						Telephone:        (212) 400-6900

					
	
						

						
						Facsimile:         (212) 400-6901

					
	
						  

						
						  

					
	
						With a copy to:

						
						Jason M. Rimland, Esq.

							Gottbetter & Partners, LLP

					
	
						

						
						488 Madison Avenue

					
	
						

						
						New York, NY 10022

					
	
						

						
						Telephone:        (212) 400-6900

					
	
						

						
						Facsimile:         (212) 400-6901

					
	
						  

						
						

					

			

			          Section 6.02     Governing Law.  The parties hereto acknowledge that the transactions contemplated by this Agreement and the exhibits hereto bear a reasonable relation to the State of New York.  The parties hereto agree that the internal laws of the State of New York shall govern this Agreement and the exhibits hereto, including, but not limited to, all issues related to usury.  Any action to enforce the terms of this Agreement or any of its exhibits shall be brought exclusively in the state and/or federal courts situated in the County and State of New York.  Service of process in any action by the Buyers to enforce the terms of this Agreement may be made by serving a copy of the summons and complaint, in addition to any other relevant documents, by commercial overnight courier to the Company at its principal address set forth in this Agreement.

			

			          Section 6.03     Severability.  The invalidity of any of the provisions of this Debenture shall not invalidate or otherwise affect any of the other provisions of this Debenture, which shall remain in full force and effect.

			

			          Section 6.04     Entire Agreement and Amendments.  This Debenture represents the entire agreement between the parties hereto with respect to the subject matter hereof and there are no representations, warranties or commitments, except as set forth herein.  This Debenture may be amended only by an instrument in writing executed by the parties hereto.

			

			          Section 6.05     Counterparts.  This Debenture may be executed in multiple counterparts, each of which shall be an original, but all of which shall be deemed to constitute on instrument.
			

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			          IN WITNESS WHEREOF, with the intent to be legally bound hereby, the Company as executed this Debenture as of the date first written above.

			

				
						

						
						XINHUA CHINA LTD

					
	
						

						
						  

					
	
						

						
						By:       /s/ Henry Jung                                       

					
	
						

						
						Name:  Henry Jung

					
	
						

						
						Title:     Chief Financial Officer

					

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
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			EXHIBIT A

						

						NOTICE OF CONVERSION

						

					(To be executed by the Holder in order to Convert the Debenture)

		

		

			
					TO:

					
					  

				

		

		

		          The undersigned hereby irrevocably elects to convert $                                                  of the principal amount of the above Debenture into Shares of Common Stock of Xinhua China Ltd, according to the conditions stated therein, as of the Conversion Date written below.

		

			
					Conversion Date:

					
					                                                                                                

				
	
					Applicable Conversion Price:

					
					                                                                                                

				
	
					Signature:

					
					                                                                                                

				
	
					Name:

					
					                                                                                                

				
	
					Address:

					
					                                                                                                

				
	
					Amount to be converted:

					
					$                                                                                               

				
	
					Amount of Debenture unconverted:

					
					$                                                                                               

				
	
					Conversion Price per share: 

					
					$                                                                                               

				
	
					Number of shares of Common Stock to be issued:

					
					                                                                                                

				
	
					Please issue the shares of Common Stock in the following name and to the following address:

					
					                                                                                                

				
	
					Issue to:

					
					                                                                                                

				
	
					Authorized Signature:

					
					                                                                                                

				
	
					Name:

					
					                                                                                                

				
	
					Title:

					
					                                                                                                

				
	
					Phone Number:

					
					                                                                                                

				
	
					Broker DTC Participant Code:

					
					                                                                                                

				
	
					Account Number:12162005 S8 Exhibit 4.1

Exhibit 4.1

  

  

  

  

  

Mattson Technology, Inc.

NONQUALIFIED DEFERRED COMPENSATION PLAN

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Mattson Technology, Inc.

NONQUALIFIED DEFERRED COMPENSATION PLAN

RECITALS

Mattson Technology, Inc.'s Nonqualified Deferred Compensation Plan is adopted by Mattson Technology,
Inc. effective as of January 1, 2006, or if later, such date the Plan (as defined herein) is approved by Mattson Technology, Inc.'s Board
of Directors. The Plan has been adopted primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees of the Company and its related entities. Accordingly, it is intended that this Plan be
exempt from the requirements of Parts II, III and IV of Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), pursuant to Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. This Plan is intended to be an unfunded, nonqualified
deferred compensation plan. Plan participants shall have the status of unsecured creditors of Mattson Technology, Inc. with respect to
the payment of Plan benefits. Furthermore, this Plan is intended to meet the requirements of section 409A of the Code (as defined
herein) and any regulations promulgated pursuant to section 409A.

ARTICLE 1

                  DEFINITIONS

1.1ACCOUNT means the book entry account(s) established under the Plan for each
Participant's Compensation Deferrals, Discretionary Employer Contributions and any contribution credits and deemed income, gains
and losses credited thereto or debited therefrom. Account balances shall be reduced by any distributions made to the Participant or the
Participant's Beneficiary(ies) therefrom and any charges that may be imposed on such Account(s) pursuant to the terms of the Plan.
Separate Subaccounts may be established to which shall be credited a Participant's Compensation Deferrals for each separate Plan
Year, the Discretionary Employer Contributions, if any, and the gains and losses with respect thereto. Where Subaccounts have been
established, Account shall refer to all of the Participants' Subaccounts, collectively, as the context may require.

1.2BENEFICIARY means any person or persons so designated in accordance with the provisions
of Section 7.1.

1.3BOARD means the Board of Directors of Mattson Technology Inc. If one or more
committees have been appointed by the Board to determine eligibility under the Plan, Discretionary Employer Contributions to be made
to the Plan, or to exercise any other Company discretion with respect to such Plan, "Board" also means such committee(s).

1.4CODE means the Internal Revenue Code of 1986 and the regulations thereunder, as amended
from time to time.

1.5COMMITTEE means the Administrative Committee composed of such individuals as may be
appointed by the Board which shall function as the administrator of the Plan.

1.6COMPANY means Mattson Technology Inc., a California corporation, and any successor
organization thereto.

1.7COMPENSATION means the total salary, bonus, commission, and Profit Sharing paid by the
Employer to an Eligible Employee with respect to his or her performance of services for the Employer (as determined by the
Committee). Compensation shall also include any "Performance Based Compensation" as that term is defined under section 409A of
the Code and any regulations thereunder.

1.8COMPENSATION DEFERRALS means the percentage or dollar amount of an Eligible
Employee's Compensation which the Eligible Employee elects to defer pursuant to Section 3.1.

1.9DESIGNATION DATE means the date or dates as of which a designation of deemed
investment directions by an individual pursuant to Section 4.3, or any change in a prior designation of deemed investment directions by
an individual pursuant to Section 4.3, shall become effective. The Designation Dates in any Plan Year shall be determined by the
Committee.

1.10DISABILITY will be determined to exist if the Participant is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period
of not less than 12 months, eligible to receive income replacement benefits for a period of not less than 3 months under any disability
benefit plan for covered Employees of the Employer, or, if the Participant does not participate in such plan, would have been eligible to
receive such benefits had the Participant participated in such plan. If the Employer does not sponsor such a plan or discontinues
sponsoring such a plan, Disability shall be determined by the Committee in its sole discretion.

1.11DISCRETIONARY EMPLOYER CONTRIBUTIONS means the amount, if any, of contributions
awarded to a Participant pursuant to Section 3.2. 

1.12EFFECTIVE DATE means the effective date of the Plan, which shall be November 1, 2005, or
if later, the date the Plan is approved by the Board.

1.13ELECTION means the form on which a Participant (i) elects to make Compensation Deferrals
pursuant to Article 3, or (ii) elects a fixed payment date pursuant to Article 5, or (iii) elects the method by which his or her Account will
be distributed pursuant to Article 6. The Election shall be in such form, including specifically by electronic means, as may be prescribed
by the Committee.

1.14ELIGIBLE EMPLOYEE means, for any Plan Year (or applicable portion thereof), an employee
of the Employer who is a Director and above, as more particularly described in Article 2 and who has been designated by the
Committee, in its sole discretion, as eligible to participate in the Plan.

1.15EMPLOYER means Mattson Technology, Inc., a California corporation, and its successors
and assigns unless otherwise herein provided, or any other corporation or business organization which, with the consent of Mattson
Technology, Inc., or its successors or assigns, assumes the Employer's obligations hereunder, and any other corporation or business
organization which agrees with the consent of Mattson Technology, Inc., to become a party to the Plan.

1.16ENTRY DATE means the first day of any Plan Year and, as to any Eligible Employee, the
date which is thirty (30) days from the date on which such Eligible Employee is first notified by the Committee of his or her eligibility to
participate in the Plan. Notwithstanding the foregoing, for any individual first designated as an Eligible Employee on or before the
Effective Date, his or her Entry Date shall be the Effective Date.

1.17OPEN ENROLLMENT PERIOD means such period as the Committee may specify which
ends prior to the first day of each Plan Year, or, with respect to an Eligible Employee who first becomes eligible to participate in the
Plan during a Plan Year, ends within thirty (30) days of becoming an Eligible Employee. Notwithstanding the foregoing, the Open
Enrollment Period for deferrals of Performance Based Compensation may end no later than six (6) months prior to the end of the
performance period for which services are to be rendered.

1.18PARTICIPANT means an Eligible Employee who has elected to participate in the Plan by
executing and submitting an Election to the Committee. A Participant shall also mean an Eligible Employee for whom Discretionary
Employer Contributions are made, regardless of whether such Eligible Employee has executed and submitted an Election. 

1.19PLAN means this Mattson Technology, Inc. Nonqualified Deferred Compensation Plan, as
amended from time to time.

1.20PLAN YEAR means the twelve (12) month period beginning on each January 1 and ending
on the following December 31.

1.21RETIREMENT means the Participant's termination of service with the Employer after
obtaining either age sixty-five (65) years old or at the time that the sum of a Participant's age and the Participant's Years of Participation
equal at least sixty-five (65).

1.22TRUST means any trust, including a grantor trust within the meaning of subpart E, part I,
subchapter J, chapter I, subtitle A of the Code, created by the Trust agreement, to hold Compensation Deferrals and Discretionary
Employer Contributions. 

1.23TRUSTEE means the trustee of the Trust described in Article 11.

1.24VALUATION DATE means any business day on which the New York Stock Exchange is
open, or such other date that the Committee, in its sole discretion, designates as a Valuation Date.

1.25 YEAR OF PARTICIPATION means the 12 consecutive month period measured by an Eligible
Employee's date of entry into this Plan and anniversaries thereof.

1.26 YEAR OF SERVICE means the 12 consecutive month period measured by an Eligible
Employee's date of hire and anniversaries thereof.

ARTICLE 2

                  ELIGIBILITY AND PARTICIPATION

2.1ELIGIBILITY. Eligibility for participation in the Plan shall be limited to Directors and
above, who are designated by the Committee, in its sole discretion, as eligible to participate in the Plan. Eligible Individuals shall be
notified as to their eligibility to participate in the Plan. Participation in the Plan is voluntary. 

2.2COMMENCEMENT OF PARTICIPATION. An Eligible Employee may begin participation in the
Plan upon any Entry Date, subject to the execution and submission of an Election pursuant to Article 3. In addition, participation
of an Eligible Employee who has not otherwise commenced participation in the Plan, shall commence when a Discretionary Employer
Contribution is made to the Account of such Eligible Employee pursuant to the provisions of Section 3.2.

2.3CESSATION OF PARTICIPATION. Active participation in the Plan shall end when a
Participant's employment terminates for any reason or at such time as a Participant is notified by the Committee, pursuant to
Section 2.4, below, that he or she is no longer eligible to participate in the Plan. Upon termination of employment or eligibility, a
Participant shall remain an inactive Participant in the Plan until the vested Account of the Participant under this Plan has been paid in
full. 

2.4CESSATION OF ELIGIBILITY. The Committee may at
any time, in its sole discretion, notify any Participant that he or she is not eligible to participate in the Plan, or is not eligible for
Discretionary Employer Contributions in any Plan Year. 

ARTICLE 3

                  CONTRIBUTIONS AND CREDITS

3.1PARTICIPANT CONTRIBUTIONS AND CREDITS.

(a)Compensation Deferrals. An Eligible Employee may elect to reduce his or her Compensation
by the percentage or dollar amount set forth in an executed Election filed with the Committee, subject to the provisions of this Article 3.
The Compensation Deferrals shall not be paid to the Participant, but shall be withheld from the Participant's Compensation and an
amount equal to the Compensation Deferrals shall be credited to the Participant's applicable Account. Each Election to make
Compensation Deferrals shall apply only to Compensation earned after the effective date of such Election.

(b)Timing of Election. The Election must be filed with the Committee during the Open Enrollment
Period for the Plan Year to which such Election applies. 

(c)Irrevocable Election. The Participant's Election with respect to his or her Compensation
Deferrals is irrevocable. Unless increased, decreased or terminated during any subsequent Open Enrollment Period, an Election shall
remain in effect until so changed by the Participant during such subsequent Open Enrollment Period. A Participant may at any time
during the Plan Year terminate an election to defer and discontinue future deferrals of Compensation by providing written notice to the
Committee. Deferrals will be discontinued as soon as reasonably practicable. In such event, Compensation earned for services
subsequent to such termination notice will be paid directly to the Participant and will not be subject to his or her prior deferral election. A
Participant who elects to discontinue deferrals of Compensation for a Plan Year may not recommence such deferrals until the next
following Plan Year (or such later Plan Year in which he or she is again eligible to participate), provided the Participant completes and
executes the required election form. Increases or decreases in the amount of Compensation a Participant elects to defer (other than a
suspension of deferrals) shall not be permitted during the Plan Year. 

(d)Limitation on Compensation Deferrals. A Participant's Compensation Deferral Elections shall
be subject to the following: 

(1)A Participant must defer a minimum of 1% of his or her Compensation each Plan Year. In the event
the total amount deferred by a Participant in a Plan Year is less than the applicable minimum deferral amount, the Committee may, in
its sole discretion, direct the Company to pay the amount deferred during that Plan Year to the Participant as soon as administratively
feasible after the end of the Plan Year;

(2)A Participant may elect to defer up to a maximum of one hundred percent (100%) of his or her
Compensation.

(3)The Compensation Deferrals elected by the Participant shall be reduced by the amount(s), if any,
which may be necessary, in the Committee's sole and absolute discretion: (i) to satisfy all applicable income and employment taxes
withholding and FICA contributions; (ii) to pay all contributions elected by the Participant pursuant to any other Company benefit plan
which would require such compensation to be taken into account under such plan; and (iii) to satisfy all garnishments or other amounts
required to be withheld by applicable law or court order.

(e)No Withdrawal. Except as provided in Section 5.2 below, amounts credited to a Participant's
Account may not be withdrawn by a Participant and shall be paid only in accordance with the provisions of this Plan and applicable
Participant Election.

(f)Vesting. A Participant shall at all times be 100% vested in amounts credited to his or her

Compensation Deferral Account.

3.2Discretionary Employer Contributions AND CREDITS.

(a)Discretionary Employer Contributions. Apart from Compensation Deferral Contributions, the Board
shall retain the right to make discretionary contributions for any Participant under this Plan at the times and in the amount(s) designated
by the Employer, in its sole discretion. Amounts so credited will be considered a Participant's "Discretionary Employer Contributions."

(b)Vesting. Unless otherwise determined by the Board prior to awarding any Discretionary Employer
Contribution, amounts credited to the Discretionary Employer Contribution Account shall be subject to the Employer's Qualified 401(k)
plan vesting schedule. 

Notwithstanding the preceding sentence, in the event of a Participant's Disability, Retirement or death, provided
that at the time of such Participant's death the Participant was employed by the Employer, the Participant shall become one hundred
percent (100%) vested in all Discretionary Employer Contributions. Any Participant that terminates employment with the Employer for
any reason other than Disability, Retirement or death prior to full vesting shall irrevocably forfeit the portion not vested. The Committee
shall have the discretion to reinstate any such forfeitures if the Participant later becomes re-employed by the Employer. 

(c)Forfeitures for Misconduct.If a Participant separates from service with the Employer as a
result of the Participant's gross misconduct, as determined by the Committee, or if the Participant engages in unlawful business
competition with the Employer, the Participant shall forfeit all amounts allocated to his or her Discretionary Employer Contribution
Account(s) under this Section 3 (regardless of the vesting of such amounts). Such forfeitures shall be
retained by the Employer. Notwithstanding any provision of the Plan to the contrary, this Section 3.2(c) shall only be enforceable to
the extent authorized by applicable law. 

ARTICLE 4

                  ALLOCATION OF FUNDS

4.1ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Subject to
Section 4.3, each Participant shall have the right to direct the Committee as to how amounts in his or her Account shall be deemed to
be invested. Subject to such limitations as may from time to time be required by law, imposed by the Committee or the Trustee or
contained elsewhere in the Plan, and subject to such operating rules and procedures as may be imposed from time to time by the
Committee, prior to the date on which a direction will become effective, the Participant shall have the right to direct the Committee as to
how amounts in his or her Compensation Deferral Account shall be deemed to be invested. The Committee may, but is not required to,
invest assets held by the Company on behalf of the Participant pursuant to the deemed investment directions the Committee has
properly received from the Participant, and may utilize the Trust for the same in its discretion. 

As of each Valuation Date, the Participant's Account will be credited or debited to reflect the Participant's
deemed investments. The Participant's Account will be credited or debited with the increase or decrease in the realizable net asset
value of the designated deemed investments, as follows. As of each Valuation Date, an amount equal to the net increase or decrease
in realizable net asset value (as determined by the Committee) of each deemed investment option within the Account since the
preceding Valuation Date shall be allocated among all Participants' Accounts deemed to be invested in that investment option in
accordance with the ratio which the portion of the Account of each Participant which is deemed to be invested within that investment
option, determined as provided herein, bears to the aggregate of all amounts deemed to be invested within that investment option.

4.2ACCOUNTING FOR DISTRIBUTIONS. As of the date of any distribution hereunder, the
distribution made hereunder to the Participant or his or her Beneficiary or Beneficiaries shall be charged to such Participant's Account.
Such amounts shall be charged on a pro rata basis against the investments of the Plan in which the Participant's Account is deemed to
be invested.

4.3DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such limitations as
may from time to time be required by law, imposed by the Employer or the Trustee or contained elsewhere in the Plan, and subject to
such operating rules and procedures as may be imposed from time to time by the Employer, prior to and effective for each Designation
Date, each Participant may communicate to the Employer a direction (in accordance with (a), below) as to how his or her Account
should be deemed to be invested among such categories of deemed investments as may be made available by the Employer
hereunder. Such direction shall designate the percentage (in any whole percent multiples) of each portion of the Participant's Account
which is requested to be deemed to be invested in such categories of deemed investments, and shall be subject to the following
rules:

(a)Any initial or subsequent deemed investment direction shall be in writing, on a form supplied by and filed
with the Committee, and/or, as required or permitted by the Committee, shall be by written designation and/or electronic transmission
designation. A designation shall be effective as of the Designation Date next following the date the direction is received and accepted
by the Committee on which it would be reasonably practicable for the Committee to effect the designation. The Participant may, if
permitted by the Committee, make a deemed investment direction for his or her existing Account balance as of the Designation Date
and a separate deemed investment direction for contribution credits occurring after the Designation Date.

(b)All amounts credited to the Participant's Account shall be deemed to be invested in accordance with the
then effective deemed investment direction, and as of the Designation Date with respect to any new deemed investment direction, all or
a portion of the Participant's Account at that date shall be reallocated among the designated deemed investment funds according to the
percentages specified in the new deemed investment direction unless and until a subsequent deemed investment direction shall be
filed and become effective. An election concerning deemed investment choices shall continue indefinitely as provided in the
Participant's most recent Election, or other form specified by the Committee.

(c)If the Employer receives an initial or revised deemed investment direction which it deems to be
incomplete, unclear or improper, the Participant's investment direction then in effect shall remain in effect (or, in the case of a deficiency
in an initial deemed investment direction, the Participant shall be deemed to have filed no deemed investment direction) until the next
Designation Date, unless the Employer provides for, and permits the application of, corrective action prior thereto.

(d)If the Employer possesses (or is deemed to possess as provided in (c), above) at any time directions as
to the deemed investment of less than all of a Participant's Account, the Participant shall be deemed to have directed that the
undesignated portion of the Participant's Account be deemed to be uninvested. Or, in its discretion, the Employer may direct such
undesignated portion of the Account to be deemed to be invested in a money market, fixed income or similar fund made available under
the Plan as determined by the Employer.

(e)Each reference in this Section to a Participant shall be deemed to include, where applicable, a reference
to a Beneficiary.

ARTICLE 5

                  ENTITLEMENT TO BENEFITS

5.1FIXED PAYMENT DATES; TERMINATION OF EMPLOYMENT. During the Open
Enrollment Period of each Plan Year and on his or her Election a Participant may select a fixed payment date for the payment of
amounts (or a portion of amounts) credited to his or her Account during the Plan Year for which the Participant Election is effective,
which will be valued and payable according to the provisions of Article 6. Such fixed payment dates may be postponed to later dates so
long as elections to so postpone the dates are made by the Participant at least twelve (12) months prior to the date on which the
distribution was originally scheduled to be made, the election will not take effect until at least twelve (12) months after the date on which
the election is made, and the new postponed distribution date is at least five (5) years from the originally scheduled date.
Notwithstanding the foregoing, in no event shall any such fixed payment date be accelerated to a date earlier than that initially selected
by the Participant.

A Participant who selects a fixed payment date for amounts credited to his or her Account during a Plan Year
shall receive payment of such vested amounts at the earlier of such fixed payment date (as postponed, if applicable) or his or her
termination of employment with the Employer.

Any fixed payment date elected by a Participant as provided above must be a date no earlier than the January 1
of the second calendar year after the calendar year for which the election is effective. 

If a Participant does not make an election as provided above for any particular amounts hereunder, and the
Participant terminates employment with the Employer for any reason, other than reaching Retirement, the Participant's vested Account
at the date of such termination shall be valued and payable in a single lump sum as soon as practicable after such termination
according to the provisions of Article 6.

5.2HARDSHIP DISTRIBUTIONS. In the event of an unforeseeable emergency of the Participant,
as hereinafter defined, the Participant may apply to the Committee for the distribution of all or any part of his or her vested Account.
The Committee shall consider the circumstances of each such case, and the best interests of the Participant and his or her family,
and shall have the right, in its sole discretion, if applicable, to allow such distribution, or, if applicable, to direct a distribution of part of
the amount requested, or to refuse to allow any distribution. Upon a finding of unforeseeable emergency, the Committee shall make the
appropriate distribution to the Participant from amounts under the Participant's vested Account. In no event shall the aggregate amount
of the distribution exceed either the full value of the Participant's vested Account or the amount determined by the Committee to be
necessary to alleviate the Participant's financial hardship (which financial hardship may be considered to include any taxes due
because of the distribution occurring because of this Section) caused by the unforeseeable emergency, and which is not reasonably
available from other resources of the Participant. For purposes of this Section, the value of the Participant's vested Account shall be
determined as of the date of the distribution. "Unforeseeable Emergency" means (a) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant or of a dependent (as defined in Code section 152(a)) of the Participant, (b) loss
of the Participant's property due to casualty, or (c) other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, each as determined to exist by the Committee. A distribution may be made under this
Section only with the written consent of the Committee. 

5.3RE-EMPLOYMENT OF RECIPIENT. If a Participant receiving installment distributions by virtue
of an entitlement due to termination of employment after reaching Retirement is re-employed by the Employer, the remaining
distributions due to the Participant shall be suspended until such time as the Participant (or his or her Beneficiary) once again becomes
eligible for benefits under Section 5.1, at which time such installment distributions shall commence, subject to the limitations and
conditions contained in this Plan.

5.4LIMITATION ON DISTRIBUTIONS TO COVERED EMPLOYEES. Notwithstanding any other
provision of this Plan, in the event that the Participant is a "covered employee" as that term is defined in Section 162(m)(3) of the Code,
or would be a covered employee if amounts were distributed in accordance with his or her distribution election or hardship withdrawal,
the maximum amount which may be distributed from the Participant's Account in any Plan Year shall not exceed one million dollars
($1,000,000) less the amount of compensation paid to the Participant in such Plan Year which is not "performance-based" (as defined
in Code Section 162(m)(4)(C) which amount shall be reasonably determined by the Committee at the time of the proposed distribution.
Any amount which is not distributed to the Participant in a Plan Year as a result of this limitation shall be distributed to the Participant in
the next Plan Year, subject to compliance with the foregoing limitations set forth in this Section 5.4. During any such delay in payment,
unpaid amounts shall continue to be credited (or debited) with deemed investment income, gains and losses under Article 4.
Notwithstanding the foregoing, distribution of a Participant's Account shall be made without regard to the deductibility limitation of Code
section 162(m) if the time for distribution is accelerated pursuant to Section 9.3 or Section 10.3.

 5.5Supplemental Death
Benefit. A supplement death benefit shall be paid to the Beneficiary of an eligible Participant, who
has satisfied the criteria set forth in Section 5.5(a).

(a)To be eligible for this supplemental death benefit, a Participant must have satisfied
the following criteria prior to his or her death:

(i)The Participant is eligible to participate in the Plan and, at the time of his or
her death, had a current account balance (regardless of whether or not the Participant actually was making basic, bonus and/or
commission deferrals at the time of his or her death);

(ii)The Participant was an active employee with the Employer at the time of his or her
death;

(iii)The Participant completed and submitted an insurance application to the Committee;
and

(iv)The Company subsequently purchased an insurance policy on the life of the
Participant, with a death benefit payable, and which policy is in effect at the time of the Participant's death.

(b)Notwithstanding any provision of this Plan or any other document to the contrary, the
supplemental death benefit payable pursuant to this Section 5.5 shall be paid only if an insurance policy has been issued on the
Participant's life and such policy is in force at the time of the Participant's death and the Company shall have no obligation with respect
to the payment of the supplemental death benefit, or to maintain an insurance policy for any Participants.

(c)The supplemental death benefit provided under this Section 5.5 shall be taxable income
when paid to the named Beneficiary.

5.6Deduction Limitation on Withdrawal and Payments. If the Employer
determines in good faith that there is a reasonable likelihood that any amount paid to a Participant for a taxable year of the Employer
would not be deductible by the Employer solely by reason of the limitation under Section 162(m) of the Code, then to the extent
deemed necessary by the Employer to ensure that the entire amount of any distribution to the Participant pursuant to this Plan is
deductible, the Employer may defer all or any portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation
shall continue to be credited/debited with additional amounts in accordance with Article 4. The amounts so deferred and amounts
credited thereon shall be distributed to the Participant or his or her beneficiary (in the event of the Participant's death) at the earliest
possible date, as determined by the Employer in good faith, on which the deductibility of compensation paid or payable to the
Participant for the taxable year of the Employer during which the distribution is made will not be limited by Section 162(m) of the Code,
or if earlier, the date that is twenty-four (24) months following the date on which the distribution was first distributable to the Participant
pursuant to the provisions of this Plan.

ARTICLE 6

                  DISTRIBUTION OF BENEFITS

6.1AMOUNT. The value of the Participant's (or his or her Beneficiary's) distribution shall
be equal to the vested value of the Participant's Account as of the Valuation Date or such other date as the Committee may specify,
each as adjusted for Compensation Deferrals, Discretionary Employer Contributions, and/or withdrawals which have been subsequently
credited thereto or made therefrom prior to the distribution date. 

6.2TIMING OF DISTRIBUTION. Subject to the Participant having satisfied all applicable tax
withholding obligations, distributions shall be paid (or, payments shall commence in installments) as soon as practicable after the
earlier of: 

(a)The fixed payment date designated by the Participant; or

(b)The date as soon as administratively feasible following the Participant's termination of employment
with the Employer, death, or Disability.

6.3METHOD OF DISTRIBUTION. A Participant's Account shall be paid in one of the following
methods, as specified in his or her Election:

(a)A single lump sum payment;

(b)If, and only if, the Participant's employment was terminated as result of Retirement, and if elected
by the Participant in his or her most recent effective Election, in annual installment payments of substantially equal amounts over a
period of up to fifteen (15) years. 

(c)A Participant may amend his or her Election so as to select installments upon termination as a
result of Retirement by filing an amended Election provided, however, that such Election to so change to installment distributions upon
Retirement is made by the Participant at least twelve (12) months prior to the date of termination as a result of Retirement, the election
will not take effect until at least twelve (12) months after the date on which the election is made, and the new postponed distribution
date is at least five (5) years from the original termination date as a result of Retirement. Notwithstanding the foregoing, in no event
shall any such distribution date be accelerated to a date earlier than that initially selected by the Participant.

(d) The Employer (or its designee) may establish from time to time limitations on the Participant's ability to
select the time and method of payment of his Account based upon the amount in the Participant's Account. Unless and until changed
by the Employer (or its designee), any Account that has a total vested balance of less than $5,000 at the time of distribution shall be
paid in a lump sum regardless of an election by the Participant to be paid in installments.

ARTICLE 7

                  BENEFICIARIES; PARTICIPANT DATA

7.1DESIGNATION OF BENEFICIARIES. Each Participant from time to time may
designate any person or persons (who may be named contingently or successively) to receive such benefits as may be payable under
the Plan upon or after the Participant's death, and such designation may be changed from time to time by the Participant by filing a new
designation. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Employer,
and will be effective only when filed in writing with the Employer during the Participant's lifetime.

In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary,
there is no living Beneficiary validly named by the Participant, the Employer shall pay any such benefit payment to the Participant's
spouse, if then living, but otherwise to the Participant's then living descendants, if any, per stirpes, but, if none, to the Participant's
estate. In determining the existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon
information supplied by the Participant's personal representative, executor or administrator. If a question arises as to the existence or
identity of anyone entitled to receive a benefit payment as aforesaid, or if a dispute arises with respect to any such payment, then,
notwithstanding the foregoing, the Employer, in its sole discretion, may distribute such payment to the Participant's estate without
liability for any tax or other consequences which might flow therefrom, or may take such other action as the Employer deems to be
appropriate.

7.2INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO
LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement or notice addressed to a Participant or to a
Beneficiary at his or her last post office address as shown on the Employer's records shall be binding on the Participant or Beneficiary
for all purposes of the Plan. The Committee shall not be obliged to search for any Participant or Beneficiary beyond the sending of
notice to such last known address. If the Committee notifies any Participant or Beneficiary that he or she is entitled to an amount under
the Plan and the Participant or Beneficiary fails to claim such amount or make his or her location known to the Committee within three
(3) years thereafter, then, except as otherwise required by law, if the location of one or more of the next of kin of the Participant is
known to the Committee, the Committee may direct distribution of such amount to any one or more or all of such next of kin, and in
such proportions as the Committee determines. If the location of none of the foregoing persons can be determined, the Committee shall
have the right to direct that the amount payable shall be deemed to be a forfeiture, except that the dollar amount of the forfeiture,
unadjusted for deemed gains or losses in the interim, shall be paid by the Committee if a claim for the benefit subsequently is made by
the Participant or the Beneficiary to whom it was payable. If a benefit payable to an unlocated Participant or Beneficiary is subject to
escheat pursuant to applicable state law, the Committee shall not be liable to any person for any payment made in accordance with
such law.

ARTICLE 8

                  ADMINISTRATION

8.1COMMITTEE POWERS AND RESPONSIBILITIES. The Committee shall have the
complete control of the administration of the Plan herein set forth with all the powers necessary to enable it to properly carry out its
duties in that respect. Not in limitation, but in amplification of the foregoing, the Committee shall have the power and authority to:

(a)Construe the trust agreement to determine all questions that shall arise as to the interpretations of the
Plan's provisions including determination of which individuals are Eligible Employees and the determination of the amounts credited to
a Participant's Account, and the appropriate timing and method of distributions. 

(b)Adopt such rules of procedure and regulations as in its opinion may be necessary for the proper and
efficient administration of the Plan and as are consistent with the Plan.

(c)Implement the Plan in accordance with its terms and the rules and regulations adopted as above.

(d)Appoint any persons or firms, or otherwise act to secure specialized advice or assistance, as it deems
necessary or desirable in connection with the administration and operation of the Plan, and the Committee shall be entitled to rely
conclusively upon, and shall be fully protected in any action or omission taken by it in good faith reliance upon, the advice or opinion of
such firms or persons. The Committee may authorize one or more persons to execute any certificate or document on behalf of the
Company, an Employer or the Committee, in which event any person notified by the Committee of such authorization shall be entitled to
accept and conclusively rely upon any such certificate or document executed by such person as representing action by the Committee
until such notified person shall have been notified of the revocation of such authority.

(e)Subject to Article 9 hereof, adopt amendments to the Plan document which are deemed necessary or
desirable to facilitate administration of the Plan and/or to bring the Plan into compliance with all applicable laws and regulations,
provided that the Committee shall not have the authority to adopt any Plan amendment that will result in substantially increased costs to
the Company unless such amendment is either expressly authorized by the Board or contingent upon ratification by the Board before
becoming effective.

(f)Select, review and retain or change any deemed investment fund under the Plan.

(g)Compile and maintain all records it determines to be necessary, appropriate or convenient in connection
with the administration of the Plan.

(h)Direct the investment of the assets of the Trust.

(i)Review the performance of the Trustee and any other advisor or service provider to the Plan.

(j)Take such other action as may be necessary or appropriate to the management and investment of the
Plan assets and administration of the Plan.

8.2UNIFORMITY OF DISCRETIONARY ACTS. Whenever in the administration or operation of
the Plan discretionary actions by the Employer are required or permitted, such actions shall be consistently and uniformly applied to all
persons similarly situated, and no such action shall be taken which shall discriminate in favor of any particular person or group of
persons.

8.3LITIGATION. Except as may be otherwise required by law, in any action or judicial proceeding
affecting the Plan, no Participant or Beneficiary shall be entitled to any notice or service of process, and any final judgment entered in
such action shall be binding on all persons interested in, or claiming under, the Plan.

8.4INDEMNIFICATION. To the extent permitted by law, the Company shall indemnify each
member of the Committee, and any other employee or member of the Board with duties under the Plan, against losses and expenses
(including any amount paid in settlement) reasonably incurred by such person in connection with any claims against such person by
reason of such person's conduct in the performance of duties under the Plan, except in relation to matters as to which such person has
acted fraudulently or in bad faith in the performance of duties. Notwithstanding the foregoing, the Company shall not indemnify any
person for any expense incurred through any settlement or compromise of any action unless the Company consents in writing to the
settlement or compromise.

8.5CLAIMS PROCEDURE. 

(a)Initial Claim. A Participant or Beneficiary who believes he or she is entitled to any Benefit (a
"Claimant") under this Plan may file a claim with the Committee. The Committee shall review the claim itself or appoint an individual or
an entity to review the claim. 

(i)Benefit Claim. The Claimant shall be notified within ninety days after the claim is
filed whether the claim is allowed or denied, unless the Claimant receives written notice from the Committee or from an appointee of the
Committee before the end of the ninety day period stating that special circumstances require an extension of the time for decision. Any
such extension will not extend beyond one hundred eighty days after the day the claim is filed. 

(ii)Manner and Content of Denial of Initial Claims. If the Plan Administrator denies a
claim, it must provide to the Claimant, in writing or by electronic communication:

(A)The specific reasons for the denial;

(B)A reference to the Plan provision or insurance contract provision upon which the
denial is based;

(C)A description of any additional information or material that the Claimant must provide
in order to perfect the claim;

(D)An explanation of why such additional material or information is necessary; 

(E)Notice that the Claimant has a right to request a review of the claim denial and
information on the steps to be taken if the Claimant wishes to request a review of the claim denial; and

(F)A statement of the participant's right to bring a civil action under ERISA  502(a)
following a denial on review of the initial denial.

(b)Review Procedures.

(i)Benefit Claims. A request for review of a denied claim must be made in writing to
the Plan Committee within sixty days after receiving notice of denial. The decision upon review will be made within sixty days after the
Plan Committee's receipt of a request for review, unless special circumstances require an extension of time for processing, in which
case a decision will be rendered not later than one hundred twenty days after receipt of a request for review. A notice of such an
extension must be provided to the Claimant within the initial sixty day period and must explain the special circumstances and provide an
expected date of decision.

The reviewer shall afford the Claimant an opportunity to review and receive, without charge,
all relevant documents, information and records and to submit issues and comments in writing to the Plan Committee. The reviewer
shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim
regardless of whether the information was submitted or considered in the initial benefit determination.

(ii)Manner and Content of Notice of Decision on Review. Upon completion of its
review of an adverse initial claim determination, the Plan Committee will give the Claimant, in writing or by electronic notification, a
notice containing:

(A)its decision;

(B)the specific reasons for the decision;

(C)the relevant Plan provisions or insurance contract provisions on which its decision is
based; 

(D)a statement that the Claimant is entitled to receive, upon request and without charge,
reasonable access to, and copies of, all documents, records and other information in the Plan's files which is relevant to the Claimant's
claim for benefits;

(E)a statement describing the Claimant's right to bring an action for judicial review under
ERISA  502(a); and

(F)if an internal rule, guideline, protocol or other similar criterion was relied upon in
making the adverse determination on review, a statement that a copy of the rule, guideline, protocol or other similar criterion will be
provided without charge to the Claimant upon request. 

(c)Calculation of Time Periods. For purposes of the time periods specified in this
Section 8.5, the period of time during which a benefit determination is required to be made begins at the time a claim is filed in
accordance with the Plan procedures without regard to whether all the information necessary to make a decision accompanies the
claim. If a period of time is extended due to a Claimant's failure to submit all information necessary, the period for making the
determination shall be tolled from the date the notification is sent to the Claimant until the date the Claimant responds. 

(d)Failure of Plan to Follow Procedures. If the Plan fails to follow the claims
procedures required by this Section 8.5, a Claimant shall be deemed to have exhausted the administrative remedies available under
the Plan and shall be entitled to pursue any available remedy under ERISA section 502(a) on the basis that the Plan has failed to
provide a reasonable claims procedure that would yield a decision on the merits of the claim. If the Claimant fails to follow the claims
procedures required by this Section 8.5, the Claimant shall not be entitled to pursue any further legal action, claim or remedy until such
time as the Claimant, to the extent applicable, exhausts the administrative remedies available under the Plan.

ARTICLE 9

                  AMENDMENT

9.1RIGHT TO AMEND. The Committee or the Company, by action of the Board, shall
have the right to amend the Plan, at any time and with respect to any provisions hereof, and all parties hereto or claiming any interest
hereunder shall be bound by such amendment; provided, however, that no such amendment shall deprive a Participant or a Beneficiary
of a right accrued hereunder prior to the date of the amendment unless such an amendment is required by applicable law or deemed
necessary to preserve the preferred tax treatment of the Plan.

9.2AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding
the provisions of Section 9.1, the Plan may be amended by the Committee or the Company, by action of its Board, at any time,
retroactively if required, if found necessary, in the opinion of the Committee or the Board, in order to ensure that the Plan is
characterized as a "top-hat" plan of deferred compensation maintained for a select group of management or highly compensated
employees as described under ERISA sections 201(2), 301(a)(3), and 401(a)(1), and to conform the Plan to the provisions and
requirements of any applicable law (including specifically Section 409A of the Code, and other applicable portions of ERISA and the
Code). No such amendment shall be considered prejudicial to any interest of a Participant or a Beneficiary hereunder.

9.3CHANGES IN LAW AFFECTING TAXABILITY.

(a)Operation. This Section shall become operative upon the enactment of any change in
applicable statutory law or the promulgation by the Internal Revenue Service of a final regulation or other pronouncement having the
force of law, which statutory law, as changed, or final regulation or pronouncement, as promulgated, would cause any Participant to
include in his or her federal gross income amounts accrued by the Participant under the Plan on a date (an "Early Taxation Event") prior
to the date on which such amounts are made available to him or her hereunder.

(b)Affected Right or Feature Nullified. Notwithstanding any other Section of this Plan to the
contrary (but subject to subsection (c), below), as of an Early Taxation Event, the feature or features of this Plan that would cause the
Early Taxation Event shall be null and void, to the extent, and only to the extent, required to prevent the Participant from being required
to include in his or her federal gross income amounts accrued by the Participant under the Plan prior to the date on which such
amounts are made available to him or her hereunder. If only a portion of a Participant's Account is impacted by the change in the law,
then only such portion shall be subject to this Section, with the remainder of the Account not so affected being subject to such rights
and features as if the law were not changed. If the law only impacts Participants who have a certain status with respect to the
Employer, then only such Participants shall be subject to this Section.

(c)Tax Distribution. If an Early Taxation Event is earlier than the date on which the statute,
regulation or pronouncement giving rise to the Early Taxation Event is enacted or promulgated, as applicable (i.e., if the change in the
law is retroactive), there shall be distributed to each Participant, as soon as practicable following such date of enactment or
promulgation, the amounts that became taxable on the Early Taxation Event.

ARTICLE 10

                  TERMINATION

10.1EMPLOYER'S RIGHT TO TERMINATE OR SUSPEND PLAN. The Employer
reserves the right to terminate the Plan and/or its obligation to make further credits to Plan Accounts, by action of its Board of Directors.
The Employer also reserves the right to suspend the operation of the Plan for a fixed or indeterminate period of time, by action of its
Board of Directors.

10.2SUSPENSION OF DEFERRALS. In the event of a suspension of the Plan, the Employer shall
continue all aspects of the Plan, other than Compensation Deferrals and Discretionary Employer Contributions, during the period of the
suspension, in which event payments hereunder will continue to be made during the period of the suspension in accordance with
Articles 5 and 6.

10.3ALLOCATION AND DISTRIBUTION. This Section shall become operative on a complete
termination of the Plan. The provisions of this Section also shall become operative in the event of a partial termination of the Plan, as
determined by the Employer, but only with respect to that portion of the Plan attributable to the Participants to whom the partial
termination is applicable. Upon the effective date of any such event, notwithstanding any other provisions of the Plan, no persons who
were not theretofore Participants shall be eligible to become Participants, the value of the interest of all Participants and Beneficiaries
shall be determined and, after deduction of estimated expenses in liquidating and, if applicable, paying Plan benefits, paid to them as
soon as is practicable after such termination.

10.4SUCCESSOR TO EMPLOYER. Any corporation or other business organization which is a
successor to the Employer by reason of a consolidation, merger or purchase of substantially all of the assets of the Employer shall have
the right to become a party to the Plan by adopting the same by resolution of the entity's board of directors or other appropriate
governing body. If, within ninety (90) days from the effective date of such consolidation, merger or sale of assets, such new entity does
not become a party hereto, as above provided, the Plan automatically shall be terminated, and the provisions of Section 10.3 shall
become operative.

ARTICLE 11

                  THE TRUST

11.1ESTABLISHMENT OF TRUST. The Employer, in its sole and absolute discretion,
may establish a Trust with a qualified trustee pursuant to such terms and conditions as are set forth in a Trust agreement to be entered
into between the Employer and such trustee (the Trustee). Or, the Employer may cause to be maintained one or more separate
subaccounts in an existing Trust maintained with the Trustee with respect to one or more other plans of the Employer, which
subaccount or subaccounts represent Participants' interests in the Plan. The Employer shall have the discretion to make contributions
to such Trust that correspond to credits to Participants' Accounts and/or to invest Trust assets in a manner that corresponds to
Participants' selected deemed investments in order to provide a source of funds with which the Employer shall pay Plan benefits as
they become due.

Any amounts held in a Trust established under this Section shall be the sole property of the Employer and will
not be held as collateral security for fulfillment of the Employer's obligation under the Plan. Any such Trust shall be intended to be
treated as a "grantor trust" under the Code and the establishment of the Trust or the utilization of any existing Trust for Plan benefits, as
applicable, shall not be intended to cause any Participant to realize current income on amounts contributed thereto, and the Trust shall
be so interpreted. Any such funds will be subject to the claims of all bankruptcy or insolvency creditors of the Employer as provided in
the Trust agreement, and no Participant or Beneficiary will have any vested interest or secured or preferred position with respect to
such funds or have any claims against the Employer hereunder except as a general creditor.

ARTICLE 12

                  MISCELLANEOUS

12.1LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of the
Plan nor any modification thereof, nor the creation of any account under the Plan, nor the payment of any benefits under the Plan shall
be construed as giving to any Participant or other person any legal or equitable right against the Employer, or any officer or employer
thereof except as provided by law or by any Plan provision. The Employer does not in any way guarantee any Participant's Account
from loss or depreciation, whether caused by poor investment performance of a deemed investment or the inability to realize upon an
investment due to an insolvency affecting an investment vehicle or any other reason. In no event shall the Employer, or any successor,
employee, officer, director or stockholder of the Employer, be liable to any person on account of any claim arising by reason of the
provisions of the Plan or of any instrument or instruments implementing its provisions, or for the failure of any Participant, Beneficiary or
other person to be entitled to any particular tax consequences with respect to the Plan, or any credit or distribution hereunder.

12.2CONSTRUCTION. The laws of the state of the Employer's incorporation shall govern, control
and determine all questions of law arising with respect to the Plan and the interpretation and validity of its respective provisions, except
where those laws are preempted by the laws of the United States. Participation under the Plan will not give any Participant neither the
right to be retained in the service of the Employer nor any right or claim to any benefit under the Plan unless such right or claim has
specifically accrued hereunder.

The Plan is intended to be and at all times shall be interpreted and administered so as to qualify as an unfunded
deferred compensation plan, and no provision of the Plan shall be interpreted so as to give any individual any right in any assets of the
Employer which right is greater than the rights of a general unsecured creditor of the Employer.

12.3SPENDTHRIFT PROVISION. No amount payable to a Participant or a Beneficiary under the
Plan will, except as otherwise specifically provided by law, be subject in any manner to anticipation, alienation, attachment,
garnishment, sale, transfer, assignment (either at law or in equity), levy, execution, pledge, encumbrance, charge or any other legal or
equitable process, and any attempt to do so will be void; nor will any benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person entitled thereto. Further, (i) the withholding of taxes from Plan benefit
payments, (ii) the recovery under the Plan of overpayments of benefits previously made to a Participant or Beneficiary, (iii) if applicable,
the transfer of benefit rights from the Plan to another plan, or (iv) the direct deposit of benefit payments to an account in a banking
institution (if not actually part of an arrangement constituting an assignment or alienation) shall not be construed as an assignment or
alienation.

In the event that any Participant's or Beneficiary's benefits hereunder are garnished or attached by order of any
court, the Employer or Trustee may bring an action or a declaratory judgment in a court of competent jurisdiction to determine the
proper recipient of the benefits to be paid under the Plan. During the pendency of said action, any benefits that become payable shall
be held as credits to the Participant's or Beneficiary's Account or, if the Employer or Trustee prefers, paid into the court as they become
payable, to be distributed by the court to the recipient as the court deems proper at the close of said action.

12.4TAX WITHHOLDING. Distribution and withdrawal payments under this Plan shall be subject
to all applicable withholding requirements for state and federal income taxes and to any other federal, state or local taxes that may be
applicable to such payments. The Company shall have the right, but not the obligation, to deduct from any distribution from the Plan,
that amount equal to all or any part of the federal, state, local and foreign taxes, if any, required by law to be withheld by the Company
with respect to such distributions. Alternatively or in addition, in its discretion, the Company shall have the right to require a Participant,
through payroll withholding, cash payment or otherwise, to make adequate provision for any such tax withholding obligations of the
Company arising in connection with any distribution from the Plan. The Trustee shall have no obligation to distribute amounts form the
Trust until the Company's tax withholding obligations have been satisfied by the Participant.

12.5NO EMPLOYMENT AGREEMENT. Nothing contained herein
shall be construed as conferring upon any Participant the right to continue in the employ of the Employer as an employee.

12.6ATTORNEY'S FEES. If the Employer, the Participant, any
Beneficiary, any beneficiary under an insurance policy purchased under the Trust, and/or a successor in interest to any of the
foregoing, brings legal action to enforce any of the provisions of this Plan, the prevailing party in such legal action shall be reimbursed
by the other party, the prevailing party's costs of such legal action including, without limitation, reasonable fees of attorneys,
accountants and similar advisors and expert witnesses.

12.7GOVERNING LAW. This Plan shall be construed in accordance
with and governed by any applicable provisions of ERISA and the laws of the State of Delaware.

12.8ENTIRE AGREEMENT. This Plan constitutes the entire
understanding and agreement with respect to the subject matter contained herein, and there are no agreements, understandings,
restrictions, representations or warranties among any Participant and the Employer other than those as set forth or provided for
herein.

12.9SEVERABILITY. If any provision of this Plan is determined, by the Committee or any
governmental agency or court decision, to be unenforceable or invalid under any applicable law, such unenforceability or invalidity shall
not render this Plan unenforceable or invalid as a whole, and such provision shall be changed and interpreted by the Committee, in its
sole discretion, so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or
applicable court decisions.

IN WITNESS WHEREOF, this Plan has been adopted effective as of the Effective Date.

	
 
	
Mattson Technology, Inc.

	
 
	
 

	
 
	
 

	
Dated: Decenber 15, 2005
	
By:/s/  Kathleen A. Quintanilla

                       Name: Kathleen A. Quintanilla

                       Title:Human Resources Director

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