Document:

Line of Credit Agmt-Multi-Fineline Electronix (Suzhou No. 2) Co. & Bank of China

 Exhibit 10.49 
 Line of Credit Agreement 
 Number: Wuzhongyinshouzi No. 0805040 
 Party A: Multi-Fineline Electronix (Suzhou 2) Co., Ltd. 
 Business License number: Qidususuzong No. 011598 
 Legal representative: Phil Harding 
 Principal office address: Building A and B, Su Ning Industry Zone, Dong South Road, Suzhou 
 Postal code: 215128 
 Deposit bank and account number: Bank of China Wu Zhong Branch 26819008092014

 Telephone: 65130088 
 Fax:
                     
 Party B: Bank of
China Limited Wu Zhong Branch 
 Principal: Zhang Shu 
 Principal office address: No. 108 Dong Wu North Road, Wu Zhong District 
 Postal code: 215128

 Telephone: 65272848 
 Fax: 65289459

 In order to develop a friendly and reciprocal partnership, on the principle of voluntary, equality, mutual benefit and good faith, through
negotiation, Party A and Party B enter into the following agreement. 
 Article 1 Scope of business 
 Party B shall grant a line of credit to Party A in accordance with this Agreement. Party A may apply to Party B for revolving use, use at its discretion or use in one
lump sum of credit in accordance with this Agreement and applicable individual agreements for the purpose of processing RMB short-term loans, foreign exchange short term loans, trade financing, letter of guarantee and undertaking capital business
and other financing businesses (collectively referred to as “Individual Financing Business”). 
 Trade financing business referred to under this
Agreement shall include opening international letter of credit, opening domestic letter of credit, import bill advance, shipping guarantee, packing loan, export bill purchase, discount of acceptance draft under Usance letter of credit, buyer’s
negotiation of domestic letter of credit, seller’s negotiation of domestic letter of credit, negotiation of domestic letter of credit and other international and domestic trade financing business. 
 The business of letter of guarantee referred to under this Agreement shall include opening letter of guarantee, standby letter of credit and other international and
domestic business of letter of guarantee. 
 Article 2 Types and amount of line of credit 
 Party B agrees to grant Party A the following lines of credit: 

			
	Currency:	 	Chinese Currency (RMB)
	Amount:	 	(in letters): One hundred million Yuan
		 	(in figures): ¥100,000,000.00

 The types and amount are as follows: 

	1.	Credit line: Forty Million Yuan, among which: 

 Short term circulating funds: Forty Million Yuan  

	2.	Limit of letter of guarantee: Sixty Million Yuan, among which: 

 Guarantee for the customs duties: Sixty Million Yuan. 
  

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 Article 3 Use of line of credit 
  

	1.	Within the credit period as specified under this Agreement, Party B may use the line of credit in the following first way within the scope for each individual financing
business as provided under this Agreement: 

	 	1)	Revolving use, the type of line of credit involved: all types of line of credit . 

	 	2)	Use in one lump sum, the type of line of credit involved:
                /                 

 In case Party A needs to use the line of credit as specified under Article 1, it shall file an application with Party B in writing. Party B shall decide
whether and how to use the line of credit at its discretion and inform Party A in writing. 

	2.	The balance of existing credit that Party A grants to Party B in accordance with effective Line of Credit Agreement or similar agreements and its individual agreements as of the
effective date of this Agreement shall be deemed as the line of credit incurred under this Agreement. 

 Among which, the
balance of credit using the line of credit shall be deemed as the line of credit incurred under this Agreement. 

	3.	Unless otherwise provided for, the following businesses shall not occupy the line of credit: 

	 	1)	Export bill purchase where the letter of credit is consistent with the documents; 

	 	2)	Negotiation or financing based on the draft or money under the export letter of credit or domestic letter of credit accepted, honored, confirmed to pay or guaranteed to pay by the
issuing bank or confirming bank and acceptable to Party B; 

	 	3)	In case Party A can provide guarantee money, government bonds, deposit receipt issued by Party B or bank acceptance draft, letter of guarantee or standby letter of credit acceptable
to Party B, then the amount of credit corresponding to the guarantee will not occupy the line of credit; 

	 	4)	... 

 (...) Other businesses that shall not occupy
the line of credit separately agreed by the parties hereto in writing 
 Businesses that don’t occupy the line of credit and whose
business agreements still belongs to the individual agreements under this Agreement shall be an integral part of this Agreement and bound by this Agreement, unless such business agreement provides otherwise. 
 Article 4 Agreement needs to be signed when undertaking individual credit business 
 In case Party A applies to Party A for undertaking individual credit business under this Agreement, it shall submit relevant application to Party B and/or sign a corresponding contract/ agreement with Party B
(collectively referred to as “Individual agreements”). 
 Article 5 Term of the Credit 
 The credit term as specified under Article 2 shall run from the effective date of this Agreement till January 24, 2010. 
 When the credit period as specified above expires, if Party B intends to grant a further line of credit to Party A, both parties shall, through consultations, sign a
supplementary agreement in writing, specifying the new line of credit and its credit period. Such supplementary agreement shall be an integral part of this Agreement and have the same legal effect as this Agreement. Matters not covered therein shall
be governed by this agreement. 
 The expiration of the credit period shall not affect the legal effect of this Agreement or cause the termination of this
Agreement. Both parties shall continue to undertake the individual credit businesses undertaken under this Agreement before the expiration of the credit period subject to the provisions of this Agreement and applicable individual agreements and
perform their obligations incurred before the expiration of the credit period. 
  

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 Article 6 Preconditions for individual credit business 
 To undertake individual credit business, Party A shall meet the following conditions upon Party B’s request: 

	1.	Reserve and sign related documents, bills, seals, list of related personnel and sample of signature of the company with Party A and complete related documents;

	2.	Establish necessary account for undertaking individual credit business; 

	3.	Have effectively furnished guarantee as provided by this Agreement and individual agreements; 

	4.	Other preconditions for undertaking this business as provided by individual agreements; 

	5.	Other conditions that Party B thinks Party A should meet. 

 Article 7
Representations and warranties 
 Party A hereby makes the following representations: 

	1.	Party A is a company legally registered and validly existing and has the full capacity for civil right and capacity to execute and perform this Agreement; 

	2.	Party A executes and performs this Agreement and individual agreements out of its own will. It has obtained legal and valid authorization in accordance with the requirement of its
Articles of Association or other internal management documents and will not violate any other agreements, contracts or other legal documents binding on Party B by doing so. Party A has obtained or accomplished or will obtain or accomplish all
related approval, permit, filing or registration necessary for the execution and performance of this Agreement; 

	3.	All documents, financial statements, vouchers and other data provided to Party B by Party A under this Agreement and individual agreements are true, complete, accurate and
effective; 

	4.	The transaction background of the business that Party A applies to Party B for undertaking is true and legal and has not been used for money laundering and other illegal purposes;

	5.	Party A has not concealed any matters that may affect the financial position and capacity to perform this Agreement of Party A and the guarantor from Party B.

 Party A hereby warrants that: 

	1.	It will submit its financial statements (including but not limited to annual reports, quarter reports and monthly reports) and other related documents to Party B regularly or in a
timely manner according to the requirements of Party B; 

	2.	It will accept and coordinate with Party B’s examination and supervision on its use of the line of credit and related production, operation and financial activities;

	3.	If Party A signs a counter guarantee contract or similar contract with the guarantor of this Agreement on its obligation of guarantee, such contract will not impair any rights of
Party B under this Agreement; 

	4.	Party A will inform Party B in a timely manner in case of any circumstances that may affect the financial position and capacity to perform this Agreement of Party A and the
guarantor, including but not limited to, any forms of division, merger, joint operation, joint venture or cooperation with foreign businessman, contracted management, restructuring, reform, IPO and any other changes in the mode of operation,
reduction of registered capital, transfer of significant assets or shareholding, significant liabilities, any significant liabilities newly created upon the collateral, sealing up of the collateral, dissolution, cancellation, filing or being filed
for bankruptcy or involving any significant suit or arbitration; 

	5.	Party A shall handle any matters not covered under this Agreement or individual agreements in accordance with related provisions and business practice of Party B;

	6.	It will not mortgage its assets during the credit period; 

	7.	The average days of turnover of receivables will not be more than 90 days when it draws revolving funds. 

  

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 Article 8 Related parties of Party A in its group and the disclosure of related transactions 
 The parties hereto agree that the following Section 2 will be applied: 

	1.	Party A is not a group client as specified by Party B subject to the Guidelines on the Management of Risks of Credits Granted by Commercial Banks to Group Clients (hereinafter
referred to as “Guidelines”). 

	2.	Party A is a group client as specified by Party B subject to the Guidelines. Party A shall, subject to the provisions of Article 17 of the Guidelines, report all related
transactions accounting for more than 10% of its net assets to Party B in a timely manner, including the relationship between the parties to the transaction, item, nature, amount of the transaction or respective proportion and pricing policy
(including transactions without any amount or only with negligible amount). 

 Article 9 Breach of agreement and remedies 
 Any one of the following circumstances shall constitute or be deemed as breach of this Agreement and individual agreement by Party A: 

	1.	Party A fails to pay any sum or repay and debts to Party B according to the provisions of this Agreement and individual agreements; 

	2.	Party A fails to use the loans for the purpose as specified in this Agreement and individual agreements; 

	3.	The representations of Party A in this Agreement and individual agreements is false or it breaches its warranties made in this Agreement and individual agreements;

	4.	Any circumstances as specified in Article 2 Section 4 of this Agreement that may affect Party A or the guarantor’s financial position or its capacity to perform the
Agreement in the view of Party B and that Party A fails to provide new guarantee or change the guarantor according the provisions of this Agreement; 

	5.	Party A terminates its operation, dissolves, is cancelled or goes bankruptcy; 

	6.	Party A breaches other provisions of this Agreement and individual agreements regarding the rights and obligations of related parties; 

	7.	Party A breaches other contracts between it and Party B or other agencies of Bank of China Limited; 

	8.	The guarantor breaches the guarantee contract or other contracts with Party B or other agencies of Bank of China Limited. 

 Under any of the events of breach as mentioned above, Party B is entitled to take the following measures respectively or at the same time according to actual
circumstances: 

	1.	Request Party A and the guarantor to correct their breach within a fixed period of time; 

	2.	Reduce, suspend or terminate the line of credit granted to Party A in whole or in part; 

	3.	Suspend or terminate in whole or in part the acceptance of Party A’s business application under this Agreement and individual agreements or other agreements between Party A and
Party B; to suspend or terminate in whole or in part the granting and processing any outstanding loans, trade financing and letter of guarantee; 

	4.	Declare immediate expiration or maturity in whole or in part of this Agreement and individual agreements, the principal and interests of any outstanding loans, funds of trade
financing and money advanced for the letter of guarantee and other accounts payable; 

	5.	Terminate or cancel this Agreement, or terminate or cancel individual agreements or other agreements between Party A and Party B in whole or in part; 

	6.	Claim compensation against Party A for the losses arising from Party A’s breach of this Agreement; 

	7.	Deduct the amount from Party A’s account established in Party B to offset Party A’s debts to Party B in whole or in part by notice to Party B prior to or after such
deduction. Any immature sum in such account shall be deemed to mature ahead of schedule; in case of difference between the currency of the account and Party B’s currency of account, the amount deducted shall be converted according to the rate
for exchange settlement and sales then applicable to Party B; 

	8.	Exercise its right to collateral; 

	9.	Request the guarantor to bear the responsibility of guarantee; 

	10.	Take any other measures that Party B deems necessary. 

  

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 Article 10 Reservation of rights 
 The failure of either party to exercise its right under this Agreement and individual agreements in whole or in part, or require the performance by the other party of its right and obligations in whole or in part,
shall not constitute a waiver of such right, obligations or responsibilities by such party. 
 One party’s consent to any allowance, grace or delay to
exercise the right under this Agreement and individual agreements by the other party shall not affect any right that should be entitled to under this Agreement and individual agreements or any applicable laws and regulations and shall be deemed as
its waiver of such right. 
 Article 11 Alteration, modification, termination and partial invalidity 
 Through mutual agreement, the parties hereto may alter or modify this Agreement in writing. Any alterations or modifications to this Agreement shall be an integral part
of this Agreement. 
 Unless otherwise provided by the laws and regulations or the parties hereto, this Agreement shall not be terminated before all the
rights and obligations under this Agreement and individual agreements have been fulfilled. 
 Unless otherwise provided by the laws and regulations or the
parties hereto, the invalidity of any provisions of this Agreement shall not affect the legal effect of other provisions. 
 Article 12 Governing laws and
settlement of disputes 
 Unless otherwise agreed by the parties hereto, this Agreement and individual agreements shall be governed by the laws of the
People’s Republic of China. 
 Unless otherwise agreed by the parties hereto, after this Agreement and individual agreements go into effect, all
disputes arising in connection with or in the execution and performance of this Agreement and individual agreements shall be settled by both parties through negotiation. In case no settlement can be reached, either party may settle the disputes with
the following second method: 

	1.	Submit the dispute to
                /                 Arbitration Committee for arbitration;

	2.	Bring a lawsuit in the People’s Court where Party B or other agency under the Bank of China Limited exercising rights and obligations subject to this Agreement and individual
agreements is domiciled; 

	3.	To bring a lawsuit in a competent People’s Court. 

 During the period
of the settlement of dispute, if such dispute doesn’t affect the fulfillment of other clauses of this Agreement and individual agreements, such clauses shall continue to be fulfilled. 
 Article 13 Expenses 
 Unless otherwise provided by the laws or the
parties hereto, Party A shall bear all the expenses arising from the execution and performance of this Agreement and individual agreements and the settlement of disputes (including legal expenses). 
 Article 14 Annex 
 The following annexes, other annexes as commonly
confirmed by the parties hereto and the individual agreements shall be an integral part of this Agreement and have the same legal effect as this Agreement. 
 Annex 6: Matters regarding the Establishment of Letter of Guarantee/Standby Letter of Credit 
 Article 15 Miscellaneous 
  

	1.	Without written consent of Party B, Party A shall not transfer any of its rights and obligations under this Agreement and individual agreements to any third party.

  

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	2.	If, due to the business needs, Party B needs to entrust other agencies under the Bank of China Limited to perform its rights and obligations under this Agreement and individual
agreements, Party A will agree to it. The agencies under the Bank of China Limited entrusted by Party B shall have the right to exercise all rights under this Agreement and individual agreements and to bring lawsuits in court or submit disputes to
arbitration body for arbitration under this Agreement and individual agreements. 

	3.	Without prejudice to other provisions of this Agreement and individual agreements, this Agreement shall be legally binding on the parties hereto and their successors and assignees
by law. 

	4.	Unless otherwise agreed herein, the parties hereto specify the address provided herein is their respective mailing and contact address and promise to inform the other party in
writing in a timely manner in case of any change in their mailing and contact address. 

	5.	The headings and description of business contained herein are for convenience of reference only and are not to be used in the interpretation of the clauses of this Agreement and the
rights and obligations of the parties hereto. 

 Article 16 Effectiveness 
 This Agreement shall go into effect from the date of execution hereof by the legal representatives, principals or authorized representatives of the parties hereto. 
 This Agreement is made in two copies, one copy to be held by the parties hereto and the guarantor respectively with equal legal effect. 
  

			
	Party A: Multi-Fineline Electronix (Suzhou 2) Co., Ltd.	 	Party B: Bank of China Limited Wu Zhong Branch
		
	Authorized Representative (signature):	 	Authorized Representative (signature):
		
	/s/ Philip A. Harding	 	/s/ illegible signature
		
	_2009____Year_1____Month__25___Day	 	__2009___Year__1___Month_25____Day

  

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 Annex 6: Matters regarding the Establishment of Letter of Guarantee/Standby Letter of Credit

  

	1.	In cases where the contents of the provisions of this annex conflict with those under the Agreement, this annex shall prevail. 

	2.	Party A shall meet the preconditions provided under the Agreement when it files application with Party B for the opening of letter of guarantee/standby letter of credit.

	3.	Opening and amendment of letter of guarantee/standby letter of credit: 

	 	a)	Party B shall, where it accepts the application by Party A for the opening of letter of guarantee/standby letter of credit according to the mutually agreed terms and conditions.

	 	b)	The detailed contents of the letter of guarantee/standby letter of credit opened by Party B at the request of Party A shall be referenced to the Application for the Opening of
Letter of Guarantee/Standby Letter of Credit submitted by Party A to Party B and the final contents shall be based on the terms and conditions of the letter of guarantee/standby letter of credit issued by Party B. 

	 	c)	In the event of amendments of the letter of guarantee/standby letter of credit by Party A, it shall submit an Application for the Amendment of Letter of Guarantee/Standby Letter of
Credit to Party B. 

	 	d)	In terms of the amount, currencies, interest rate and terms of the amendments as well as conditions that Party B believes will add to the obligations of the guarantor, Party B shall
have the right to request Party A to increase the amount of guarantee, and/or request Party A to acquire the signed approval of the counter guarantor on the Application for the Amendments of Letter of Guarantee/Standby Letter of Credit; otherwise,
Party B shall have the right to reject Party A’s amendment application. 

	 	e)	The amendments of letter of guarantee/standby letter of credit shall not change the other rights and obligations assumed by Party A under the Agreement and its annexes.

  

	4.	Party A hereby agrees that within the term of the letter of guarantee/standby letter of credit, Party B shall have the right to use the reserve fund deposited by Party A to pay the
payment for any claims under the letter of guarantee/standby letter of credit that Party B reviews to be consistent with the terms and conditions of the letter of guarantee/standby letter of credit. 

 If the reserve fund deposited by Party A falls short of the advance payment of the claims, the payment shall, once made, become Party A’s liabilities
to Party B under the Agreement and its annexes. Party A shall bear the interest from the date of advance payment by Party B till the date of repayment and the interest rate for the advance payment shall be determined according to the terms and
conditions of the Application for the Opening of Letter of Guarantee/Standby Letter of Credit. 
  

	5.	In addition to the contents provided under the Agreement, Party A hereby makes the following guarantees to Party B as part of the business undertaken under this annex.

	 	a)	Where the letter of guarantee/standby letter of credit is presented or transmitted by other banks, Party A hereby agrees to assume all the risks and responsibilities assumed by
Party B to the presenting/transmitting bank during the presentation/transmission of the letter of guarantee/standby letter of credit. 

	 	b)	Party A shall promptly notify Party B of anything that may impact the guarantee obligations of Party B in terms of the underlying contract of the letter of guarantee/standby letter
of credit and the performance, amendment, modification and termination of such underlying contract. 

	 	c)	Party A shall coordinate its efforts to assist Party B to fulfill the related procedures in relation to the performance of contract under the guarantee to a foreign party.

	 	d)	Party A shall bear the risks associated with the missing, delay, mistakes or omission, damage or loss of the correspondence, documents under the letter of credit during their
delivery, telegraph or any other method of delivery as well as any risks related to any third party service that Party B uses. 

	 	e)	Party A hereby agrees to compensate all the risks, liabilities and damages brought to Party B as a result of unspecific date of expiration of the letter of guarantee/standby letter
of credit, application of foreign laws or customs and unspecific amount of guarantee. 

	6.	Other specific matters related to the business under this annex shall be handled according to the terms and conditions of the Application for the Opening of Letter of
Guarantee/Standby Letter of Credit and Application for the Amendment of Letter of Guarantee/Standby Letter of Credit. 

  

 Page 7 of 7Separation Agreement, by and between Daniel Lyne and GSI Group Inc.

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 This Separation Agreement (the “Agreement”) is being entered into on
January 23, 2009 (the “Effective Date”) between GSI Group Inc. (the “Company”) and Daniel J. Lyne (the “Employee” or “You”). For purposes of this Agreement, Company includes parent, subsidiary and
affiliated entities, and the stockholders, trustees, directors, officers, agents and employees of the Company or such entities. Employee includes heirs, spouse, legal representative and assigns of the Employee. 
 This Agreement will serve as notice and confirm the termination of your employment with the Company and the terms of the separation package offered to You. The purpose
of this Agreement is to establish an amicable arrangement for ending our employment relationship, to provide you with separation benefits to assist you in transitioning to new employment, and to release the Company from any claims that you may have
against it in exchange for the separation benefits. With that understanding, Employee and the Company agree as follows: 
  

	1.	Termination 

 We have mutually agreed that for purposes of
this Agreement the Termination Date shall be October 28, 2008. Employee confirms that he is resigning from all positions and offices that he held with the Company (and all of its subsidiaries) as of the Effective Date. The Company acknowledges
that Employee voluntarily resigned from the Company and was not terminated for performance issues. 
  

	2.	Payments/Benefits upon Termination 

 On your Termination
Date, you will be entitled to the following regardless of whether you sign this Agreement: 
  

	 	a.	All salary and wages earned through your Termination Date. 

  

	 	b.	A payment for unused, earned vacation time accrued through your Termination Date; and, if applicable, unused, earned personal need time. As of the date of the Agreement, You have
200 hours of such time. 

  

	 	c.	The opportunity to elect continuing coverage under the Company’s health insurance at your cost and expense, pursuant to the Consolidated Omnibus Budget Reconciliation Act of
1985 (“COBRA”). You will receive COBRA information under separate cover. Please note, however, that this provision is subject to Section 3(b) herein. 

  

	 	d.	The opportunity to elect to convert your life insurance policy coverage (which will terminate on the Effective Date) to an individual policy, at your cost and expense.

 Following your Termination Date, you will not be entitled to participate in any Company-provided benefit programs or practices, including,
but not limited to, the following: 
  

	 	i.	Vacation accrual; 

	 	ii.	If applicable, personal need time accrual; 

  

	 	iii.	Any equity and/or stock plan or program. In addition, please be advised that all vesting in any such plan shall cease as of the Termination Date. Please see the Company’s stock
plan and your stock agreement(s) for applicable terms and conditions; and 

  

	 	iv.	Ability to make any 401(k) contributions and entitlement to any Company matches. Please contact Prudential directly at 877-778-2100 to discuss distributions and loan payback
options. 

 All amounts set forth in this Section 2 are subject to any applicable federal, state and local deductions, withholdings,
payroll and other taxes. Your existing equity grants shall continue to be governed under the Plans and granting agreements in effect as of the respective granting dates. 
 Except as otherwise provided in this Agreement, your salary will cease on your Termination Date and any entitlement you have or might have under a Company-provided benefit plan, program or practice will terminate on
such date, except as required by federal or state law. 
  

	3.	Separation Benefits 

 In consideration of your execution of
this Agreement, including specifically the release provisions in Sections 4 and 5, the Company agrees to the following: 
  

	 	a.	Salary continuation: The Company will pay you $145,745.70 within fourteen days of the Effective Date, representing a lump sum payment of the remaining unpaid amounts of your current
per pay period base salary of $10,051.46 for the period of nine (9) months following your Termination Date. In total, the Company will pay $196,003 in additional salary from the Termination Date, of which $50,257.30 has already been paid as of
the Effective Date. One-third (1/3) of the salary paid under this section shall be in consideration of the release of any claims under the Age Discrimination in Employment Act of 1967 (ADEA), and in the event you opt to revoke your consent to
this Agreement per Section 5(e), you will forfeit one-third of the salary paid; the remaining provisions of this Agreement, including the release of non-age related claims in Section 4, below, will remain intact. 

 

	 	b.	 Health Benefits: Following (and subject to the occurrence of) the Effective Date, the Company shall (1) continue to provide health and dental insurance group
benefits that are comparable to those provided to you and your family as of the Termination Date until the first to occur of (i) the nine (9)-month anniversary of the Termination Date or (ii) the date you and your family become eligible to
receive health and dental insurance benefits under the plans of your subsequent employer. This period will be reduced to six months in the event you opt to revoke the Agreement under Section 5(e). You agree to immediately notify the Company
upon the commencement of your employment with a subsequent employer 

  

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whereby you are eligible to receive medical/dental benefits and to provide the Company with a complete copy of the health and dental benefit coverages
offered to you by your new employer. 

  

	 	 c.
	 During the time that you receive Health Benefits from the Company, you will be required to make a monthly contribution
consistent with the terms provided under these plans. Please contact Carole Leavitt concerning the amount of monthly contribution required, and arrange to send your monthly payment to Carole Leavitt at GSI Human Resources in Bedford, MA by the 20
th of the month for the following month of coverage. Please note that your contribution amount is subject to change based on plan costs contracted
by GSI and the Company’s shared cost arrangement with employees. 

  

	 	d.	Except as set forth above, all other benefits, including but not limited to disability and life insurance, shall cease as of the Termination Date. All stock options or restricted
stock grants shall continue to be governed exclusively under the terms of the Plans and granting agreements under which such grants were originally made to you. 

  

	 	e.	Bonus: At such time as the Company would customarily pay bonuses, but not later than March 15, 2009, the Company will pay you an amount equal to $78,793.00 which represents 50%
of your Target Bonus. This amount considers 100% achievement or 20 points for item 2, the Personal Objectives component of your 2008 Incentive Bonus Plan and 100% achievement or 30 points for item 4, the Extra Bonus Opportunity: M&A component of
the Incentive Bonus Plan. Based on projected 2008 full year GSI Group Profit results against plan, no bonus for item 1 of the Incentive Bonus Plan is payable. No bonus will be payable for item 3, the Discretionary component. No additional bonus or
other payments shall be due or payable to you. The Company agrees and stipulates that your bonus has been fully earned as of your Termination Date; however, you will only receive 66% of this amount in the event you opt to revoke your consent to
release age claims under the Agreement per Section 5(e). The Company will not withhold or reduce your bonus for any other reason. 

  

	 	f.	 Section 409A: You and the Company agree that the payment schedule for any payments described in this Section 3 may be adjusted as necessary to avoid the
application of the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, (“Section 409A”), provided that no such adjustment shall result in either a decrease of any benefit or payment contemplated herein, nor an
increase in the cost of providing such payment or benefit. For example, if at the time of your separation from service, you are a “specified employee,” as hereinafter defined, any and all amounts payable under this Section 3 in
connection with such separation from service that constitute deferred compensation subject to Section 409A, as determined by the Company in its sole discretion, and that would (but for this sentence) be payable within six months following such
separation from service, shall instead be paid on the date that follows the date of such separation from service by six (6) months. For purposes of the preceding sentence, “separation from service” shall be determined in a manner
consistent with subsection (a)(2)(A)(i) of Section 409A and the term “specified employee” shall mean an 

  

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individual determined by the Company to be a specified employee as defined in subsection (a)(2)(B)(i) of Section 409A. This Agreement will be
interpreted and administered in accordance with the applicable requirements of, and exemptions from, Section 409A in a manner consistent with Treas. Reg. § 1.409A-1(c). To the extent payments and benefits are subject to Section 409A,
this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of (i) Section 409A(a)(2), (3) and (4), (ii) Treas. Reg. § 1.409A-1, et seq., and (iii) transitional
relief under IRS Notice 2007-86, and (iv) other applicable authority issued by the Internal Revenue Service and the U.S. Department of the Treasury. 

 All payments set forth in this Section 3 shall be subject to any applicable federal, state and/or local deductions, withholdings, payroll and other taxes. 
 You will only be entitled to the payments and benefits described above and to no other payments or benefits. You acknowledge that the payments and benefits described in
Section 3(a), (b) and (e) above represent valuable consideration in excess of that to which you might otherwise be entitled by reason of your employment by and termination from employment with the Company. 
  

	4.	Mutual Release of Claims 

  

	 	a.	 In exchange for the Separation Benefits described in Section 3 above, which you agree you are not entitled to otherwise receive, you and your representatives,
agents, estate, heirs, successors and assigns (collectively “you”) voluntarily agree to release and discharge the Company and its parents, affiliates, subsidiaries, successors, assigns, plan sponsors and plan fiduciaries (and the current
and former trustees, officers, directors, shareholders, employees, and agents of each of the foregoing, individually, in their capacity acting on the Company’s behalf, and in their official capacities ) (collectively “Releasees”)
generally from all claims, demands, actions, suits, damages, debts, judgments and liabilities of every name and nature, whether existing or contingent, known or unknown, suspected or unsuspected, in law or in equity in connection with your
employment by and/or termination from the Company, arising on or before the Effective Date. This release is intended by you to be all encompassing and to act as a full and total release of any claims you may have or have had against the Releasees
from the beginning of your employment with the Company to the Effective Date of this Agreement, including but not limited to all claims in contract (whether written or oral, express or implied), tort, equity and common law; any claims for wrongful
discharge, breach of contract, or breach of the obligation of good faith and fair dealing; and/or any claims under any local, state or federal constitution, statute, law, ordinance, bylaw, or regulation dealing with either employment, employment
discrimination, retaliation, mass layoffs, plant closings, and/or employment benefits and/or those laws, statutes or regulations concerning discrimination on the basis of race, color, creed, religion, age, sex, sexual harassment, sexual orientation,
national origin, ancestry, handicap or disability, veteran status or any military service or application for military service or any other category protected by law, including all claims under Title VII of the Civil Rights Act (42 U.S.C. §
2000e et seq.); the Americans With Disabilities Act (42 U.S.C. § 12101 et seq.); the 

  

 4 

	 	 
Rehabilitation Act (29 U.S.C. § 701 et seq.); the Equal Pay Act; the Age Discrimination in Employment Act (“ADEA”) (29 U.S.C. § 729, et
seq.); the Employee Retirement Income Security Act (“ERISA”) (29 U.S.C. § 1001, et seq.); the Family and Medical Leave Act (29 U.S.C. § 2601, et seq.); the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); the Worker
Adjustment and Retraining Notification Act (29 U.S.C. § 2101 et seq.); all as may have been amended; and any federal, state or local law or regulation concerning securities, stock or stock options, including without limitation any claims that
might be brought under the Sarbanes-Oxley Act or other federal or state whistleblower protection statutes. 

  

	 	b.	You expressly agree and understand that this is a General Release, and that any reference to specific Claims arising out of or in connection with your employment and/or its
termination is not intended to limit the release of Claims. You expressly agree and understand this General Release means that you are releasing, remising and discharging the Releasees from and with respect to all Claims, whether known or unknown,
asserted or unasserted, and whether or not the Claims arise out of or in connection with your employment and/or its termination, or otherwise. 

  

	 	c.	You not only release and discharge the Releasees from any and all claims as stated above that you could make on your own behalf or on the behalf of others, but also those claims
that might be made by any other person or organization on your behalf and you specifically waive any right to recover any damage awards as a member of any class in a case in which any claims against the Releasees are made involving any matters
arising out of your employment with and/or termination of employment with the Company. 

  

	 	d.	You agree that the payments and benefits set forth in Section 3 of this Agreement, together with payments and benefits the Company previously provided to you, are complete
payment, settlement, accord and satisfaction with respect to all obligations and liabilities of the Releasees to You, and with respect to all claims, causes of action and damages that could be asserted by you against the Releasees regarding your
employment or separation from employment with the Company, including, without limitation, all claims for wages, salary, commissions, draws, car allowances, incentive pay, bonuses, business expenses, vacation, stock, stock options, severance pay,
attorneys’ fees, compensatory damages, exemplary damages, or other compensation, benefits, costs or sums. You also affirm that you have received any family and/or medical leaves to which you were entitled during your employment, have not been
retaliated or discriminated against because you took a family or medical leave or any leave protected by law, and have not suffered any on-the-job injury for which you have not already filed a claim. 

  

	 	e.	 Notwithstanding the comprehensive release of claims set forth in the preceding paragraphs of this Section, nothing in this Agreement shall bar or prohibit you from
contacting, seeking assistance from or participating in any proceeding before any 

  

 5 

	 	 
federal or state administrative agency to the extent permitted by applicable federal, state and/or local law. However, you nevertheless will be prohibited to
the fullest extent authorized by law from obtaining monetary damages in any agency proceeding in which you do so participate. 

  

	 	f.	You represent and warrant that you have not filed or raised any external complaint, claim, charge, action, or proceeding against any of the Releasees in any jurisdiction or forum
related to any matters addressed in this Section 4, including without limitation, any complaint that might fall under the Sarbanes-Oxley Act or any other federal or state whistleblower protection act. You further represent and warrant that you
have shared all facts or information in your possession with the Board of Directors and its committees relating to the Company’s preparation of its quarterly and annual financial statements and its internal controls and procedures, and that you
will cooperate with the Board and its committees and any outside advisors relating to any review of the same. 

  

	 	g.	You represent that, in connection with this Agreement, you are releasing your claims against the Company and its officers, directors, and agents arising out of the events leading to
your resignation on October 28, 2008. You also represent that, other than matters concerning the compensation paid by the Company to certain former officers of Excel Technology, Inc., you (1) have no personal knowledge of any facts or
circumstances that would give you reason to believe that any of the Company’s previously filed financial statements are incorrect or inaccurate; and (2) have no personal knowledge of any facts or circumstances not previously communicated
to the Company or the Board of Directors or its Audit Committee that you believe should be investigated by the Company, the Board of Directors or the Audit Committee of the Board. 

  

	 	h.	In consideration of Your release of claims against the Company, the Company and its representatives, agents, estate, heirs, successors and assigns (collectively “the
Company”) voluntarily agree to release and discharge you generally from all claims, demands, actions, suits, damages, debts, judgments and liabilities of every name and nature, whether existing or contingent, known or unknown, suspected or
unsuspected, in law or in equity in connection with your employment by the Company, arising on or before the Effective Date, other than a breach of any of the representations made in this Agreement. Other than claims for a breach of a representation
in this Agreement, this release is intended by the Company to be all encompassing and to act as a full and total release of any claims it may have or have had against you from the beginning of your employment with the Company to the Effective Date
of this Agreement, including but not limited to all claims in contract, tort, equity and common law, and any claims under any local, state or federal constitution, statute, law, ordinance, bylaw. 

  

	 	i.	 Nothing herein is intended to affect or limit in any fashion your right to indemnification of and from any cost, expense or damages, including advancement of
defense costs, arising from any third-party claims arising out of your service as an 

  

 6 

	 	 
officer of the Company, it being the intention of the Company that you receive the same protections afforded to other officers, directors and former officers
and directors of the Company under the By-Laws of the Company, subject only to the limitations set forth in section 81 of the New Brunswick Business Corporations Act. The Company agrees not to amend or revise the By-Laws in the future if the effect
of such amendment or revision would be to limit the scope of, or deny, the indemnification protections afforded to You under the current By-Laws. Such indemnification shall expressly include the absolute right to indemnification for the period
between the Termination Date and the Effective Date. 

  

	5.	Waiver of Rights and Claims under the Age Discrimination In Employment Act of 1967 

 Since you are 40 years of age or older, you are being informed that you have or may have specific rights and/or claims under the Age Discrimination in Employment Act of 1967 (ADEA) and you agree that: 
  

	 	a.	in consideration for the amounts described in Section 3 of this Agreement allocated to your release of any age-related claims, which you are not otherwise entitled to receive,
you specifically and voluntarily waive such rights and/or claims under the ADEA you might have against the Releasees to the extent such rights and/or claims arose prior to the Effective Date; 

  

	 	b.	you understand that rights or claims under the ADEA which may arise after the Effective Date are not waived by you; 

  

	 	c.	you are advised to consult with or seek advice from an attorney of your choice or any other person of your choosing before executing this Agreement; you also are advised that you
have 21 days to review this Agreement and consider its terms before signing it and that such 21-day review period will not be affected or extended by any revisions, whether material or immaterial, that might be made to this Agreement;

  

	 	d.	in entering into this Agreement you are not relying on any representation, promise or inducement made by the Company or its attorneys with the exception of those promises described
in this document; and 

  

	 	 e.
	 you may revoke your consent to waive any age related claims under the ADEA as set forth in this Agreement for a period
of seven (7) days following your execution hereof. All rights and obligations of both parties under this Agreement that do not relate to age related claims under the ADEA shall become effective and enforceable upon execution of the Agreement.
In the event you opt to revoke the Agreement during the 7 day period, the revocation will apply only to age related claims and you will only receive two-thirds of the separation benefits as set forth in Section 3 above. For such a revocation to
be effective, it must be delivered so that the Company receives it at or before the expiration of the seven (7) day revocation period. Otherwise, the Agreement will become fully enforceable on the 8th day following your signature. 

  

 7 

	6.	Confidentiality 

 You agree to keep the existence and terms
of this agreement in the strictest confidence and not reveal the terms of this agreement to any persons except your immediate family, your attorney and your tax and financial advisors, provided they also agree to keep the information confidential.
Nothing in this Section shall bar you from providing truthful testimony in any legal proceeding or in cooperating with any governmental agency. 
  

	7.	Non-Competition and Non- Solicitation 

 For a period of nine
months from the Termination Date, you will not, without the Company’s prior express written consent, engage in, have an interest in, be employed by, serve as a director, consultant or advisor to or be in any way, directly or indirectly
connected with (other than by virtue of ownership of less than 2% of the outstanding capital stock of any class of a publicly-traded company) any business that is in direct competition with the Company or any of its subsidiaries or affiliates. In
addition, you agree and confirm your obligation under your Employee Invention and Non-Disclosure Agreement, dated June 20, 2005, to refrain for the twelve (12) months following your Termination Date from soliciting, inducing, or attempting
to induce, any employees of the Company as of the Termination Date to terminate their employment with the Company. 
  

	8.	Non-disparagement 

 You agree that you will not make
statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage the Company or any Releasee. The Company agrees that it will not
make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may directly or indirectly, disparage you or your reputation. Notwithstanding the foregoing,
nothing in this Agreement shall preclude either you or the Company from making truthful statements or disclosures that are required by applicable law, regulation, or legal process. 
  

	9.	Job References 

 Any request for job references should be
directed to the Company’s Human Resources department. Please be advised that, pursuant to Company policy, the Company’s Human Resources personnel may only disclose your title and dates of employment with the Company, that you voluntarily
terminated your employment with the Company, and that your election to terminate was not triggered by any performance related issues. 
  

	10.	Other Agreements 

 This Agreement constitutes the entire
agreement regarding the termination of your employment with the Company and your separation benefits and supersedes all prior agreements between the Company and you, except the Employee Invention and Non-Disclosure Agreement between the Company and
you (the “Non-Disclosure Agreement”), a copy which is attached hereto, any 

  

 8 

 
specific Non-Disclosure Agreements pertaining to Merger and Acquisition targets and the Stock Option Agreements between the Company and you, each of which
shall remain in full force and effect in accordance with their terms. In signing this Agreement, both parties agree that they are not relying upon any oral promises made by either party that are not otherwise contained in this Agreement. You
acknowledge and agree that your obligations under the Non-Disclosure Agreement expressly survive the cessation of your employment. 
  

	11.	Cooperation 

 From time to time following the Termination
Date, the Company may need to request information from you in connection with any litigation, governmental investigation or complaint, or any other form of legal or administrative matter in which the Company is a party. As set forth in the Employee
Invention and Non-Disclosure Agreement, you hereby agree that you shall cooperate fully with any such reasonable requests made by the Company, subject to the prompt reimbursement of reasonable expenses incurred by you for such cooperation. You
acknowledge that your failure or refusal to provide such cooperation and/or to make yourself reasonably available to provide such cooperation shall constitute a breach of a material term of this Agreement and the Non-Disclosure Agreement.

 The Company acknowledges that you may have new job responsibilities that require your immediate and undivided attention during normal business hours, and
agrees that all requests for cooperation shall be reasonable and made in a fashion and at such times as will minimize the impact on your then existing work schedule. 
  

	12.	Return of Company Property 

 On the Effective Date, you agree
to return to the Company all Company property and materials, including but not limited to, engineering notebooks, invention records, personal computers, laptops, diskettes, intangible information stored on diskettes, software programs and data
compiled with the use of those programs, software passwords or codes, tangible copies of trade secrets and confidential information, cellular phones, telephone charge cards, manuals, building keys and passes, names and addresses of all Company
customers and potential customers, customer lists, customer contacts, sales information, memoranda, sales brochures, business or marketing plans, reports, projections, and any and all other information or property previously or currently held or
used by you that is or was related to your employment with the Company. You agree that if you discover any other Company property or materials in your possession after the Effective Date, you will immediately notify the Company and return such
materials to the Company. 
 You will be allowed to retain your Company issued Blackberry and laptop computer, but only on condition that the laptop computer
is provided to the Company before the Effective Date to allow the Company to create a data image of the laptop, as well as remove any Company data, information or licensed software. Only after such data and software is removed from the laptop will
it be returned to you. 
  

 9 

	13.	Other Provisions 

  

	 	a.	This Agreement shall not in any way be construed as an admission by either party of any liability or any act of wrongdoing. 

  

	 	b.	This Agreement is a legally binding document and your signature will commit you to its terms. You represent that you have obtained legal advice in connection with this Agreement.
You acknowledge that you have had an opportunity to thoroughly discuss all aspects of this Agreement with your attorney, that you have carefully read and fully understand all of the provisions of this Agreement and that you voluntarily enter into
this Agreement. 

  

	 	c.	This Agreement shall be binding upon the Company and you and upon its/your respective heirs, administrators, representatives, executors, successors and assigns.

  

	 	d.	You agree that each provision of this Agreement is severable and should any such provision be determined by a court of competent jurisdiction or administrative agency to be illegal
or invalid, the validity of the remaining provisions shall not be affected and the illegal or invalid provisions shall be deemed not to be a part of this Agreement. However, should the Release in this Agreement be declared or determined by a court
of competent jurisdiction or administrative agency to be illegal or invalid, the Company shall be entitled to demand immediate repayment, and you will immediately return the enhanced severance benefits paid under this Agreement.

  

	 	e.	This Agreement may not be amended, revoked, changed, or modified except upon a written agreement executed by both parties. 

  

	 	f.	This Agreement will be interpreted and enforced under the laws of Massachusetts. In the event of a dispute arising under this Agreement, you agree that all such matters shall be
submitted to binding arbitration. The binding arbitration shall be administered by the American Arbitration Association under its Commercial Arbitration Rules. The arbitration shall take place in Boston, Massachusetts. Each party shall appoint one
person to act as an arbitrator, and a third arbitrator shall be chosen by the first two arbitrators, comprising a three arbitrator “Panel”. The Panel shall have no authority to award punitive damages against the Company or you. The Panel
shall have no authority to add to, alter, amend or refuse to enforce any portion of the Agreement. The parties waive any right to a jury trial. The Company will bear 70% of the cost of AAA fees and fees for the Panel and you will bear 30% of such
costs. The parties will be responsible for their own legal costs. 

 AGREED: 
  

	
	 /s/ Daniel J. Lyne

	Daniel J. Lyne

  

 10 

	
	 /s/ Anthony J. Bellantuoni

	Anthony J. Bellantuoni
	 Vice President, Human Resources

 (acting on behalf of
GSI Group Inc.)

  

 11 

 IF YOU DO NOT WISH TO USE THE 21-DAY PERIOD, 
 PLEASE CAREFULLY REVIEW AND SIGN THIS DOCUMENT 
 I, Daniel J. Lyne, acknowledge
that I was informed and understand that I have 21 days within which to consider the attached Agreement, have been advised of my right to consult with an attorney regarding such Agreement and have considered carefully every provision of the
Agreement, and that after having engaged in those actions, I prefer to and have requested that I enter into the Agreement prior to the expiration of the 21 day period. 
  

			
	Dated: January 23, 2009	 	 /s/ Daniel J. Lyne

		 	Daniel J. Lyne

  

 12

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