Document:

ex107.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
10.7

    Loan
Nos. __________ and __________ (excluding Loan No. _________ and
______)

    

    Dated as
of January 15, 2010

    

    AMENDED AND RESTATED
IRREVOCABLE CROSS COLLATERAL GUARANTY OF PAYMENT AND
PERFORMANCE

    

    THIS AMENDED AND RESTATED IRREVOCABLE
CROSS COLLATERAL GUARANTY OF PAYMENT AND PERFORMANCE (hereinafter called
“Guaranty”) is made by
____________ (“Guarantor”) in favor of THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, a New Jersey corporation (“Prudential”), and VPCM, LLC, a Virginia limited
liability company (“VPCM”) (collectively, “Lender”, which shall also mean
successors and assigns who become holders of the Note).

    

    W I T N E S S E T
H:

    

    WHEREAS, Guarantor is the
maker of, or has assumed the obligations of the maker of, that certain Amended
and Restated Promissory Note dated as of November 12, 2004 in the original
principal amount of _____________ ($_________) and payable to the order of
Lender (the “Existing Guarantor Note”; the loan evidenced by the Existing
Guarantor Note is herein referred to as the “Existing Guarantor
Loan”);

    

    WHEREAS, the Existing
Guarantor Loan was made pursuant to that certain Amended and Restated Loan
Agreement dated as of November 12, 2004 (the “Existing Loan Agreement”) by
and among, inter alia, Lender and Guarantor relating to seven (7)
cross-collateralized and cross-defaulted loans in the aggregate principal amount
of $150,000,000.00 (the “Existing Loans”); and

    

    WHEREAS, Guarantor, Mack-Cali
Realty Corporation, a Maryland corporation (the “REIT Corporation”), and
Mack-Cali Realty, L.P., a  Delaware limited partnership (the
“Operating Partnership”), and the Borrowers listed on Exhibit A
attached hereto and made a part hereof (hereinafter, excluding Guarantor,
referred to collectively as “Borrowers”) have, by that certain First Mortgage
Loan Application Nos. __________, dated January 13, 2010 (the
“Application”), applied for the Loan in the aggregate loan amount of
$150,000,000.00 (the “Aggregate Loan Amount”); and

    

    WHEREAS, Guarantor, Borrowers,
the REIT Corporation, the Operating Partnership, and Lender have agreed,
pursuant to that certain Amended and Restated Loan Agreement dated of even date
herewith (the “Loan Agreement”) by and among Guarantor, Borrowers, the REIT
Corporation, the Operating Partnership and Lender relating to seven (7)
cross-collateralized and cross-defaulted loans in the aggregate principal amount
of $150,000,000.00 (hereinafter, excluding the loan made to Guarantor, referred
to collectively as the “Loan”), to refinance the seven (7) cross-collateralized
and cross-defaulted loans referenced in the Existing Loan Agreement, to amend
and restate the terms thereof, and to re-allocate the loan amounts among the
seven (7) Existing Loans representing additional advances to certain borrowers
under the Loan Agreement and corresponding reductions of loan amounts to other
borrowers under the Loan Agreement; and

    

    WHEREAS, the Loan is, pursuant
to the terms of the Application, divided into seven (7) individual loans (the
“Individual Loans”), to be made by Lender in the amounts set forth on Exhibit B
attached hereto and made a part hereof; one of those Individual Loans is a loan
of $_________ (the “_________ Loan”) to Guarantor secured by real property
located in Bergen County, New Jersey, known as _________________ (the “_________
Property”) and which Loan is known as Loan No. ________ and _______, and
which Loan is evidenced by an Amended, Restated and Consolidated Promissory Note
in favor of Prudential in the original principal amount of _____________
($_________) and an Amended, Restated and Consolidated Promissory Note in favor
of VPCM in the original principal amount of _____________ ($_________);
and

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    WHEREAS, Lender has agreed to
make the Loans to Guarantor and the other Borrowers pursuant to the terms and
conditions set forth in the Loan Agreement; and

    

    WHEREAS, Guarantor and each
other Borrower have executed and delivered to the Lender Amended, Restated and
Consolidated Promissory Notes (the “New Notes”) in the aggregate principal
amount of $150,000,000.00 as evidence of their indebtedness to
Lender;  and one or more of the New Notes is executed by Guarantor in
its capacity as a Borrower and as an owner of its respective Properties as
listed on Exhibit A
attached hereto, which New Notes are executed in order to evidence the portion
of the Loan that is allocated to such Individual Loans for such Properties owned
by Guarantor; and

    

    WHEREAS, to secure payment of
the New Notes and the performance of each Borrower’s obligations under the Loan
Agreement, each Borrower has executed and delivered to Lender the Security
Documents (as defined in the Loan Agreement) conveying to or for the benefit of
Lender, as mortgagees or beneficiaries, as applicable, certain land and
improvements thereon, as well as the other Loan Documents (as such term is
defined in the Loan Agreement;  any term not otherwise defined herein
shall have the meaning assigned to such term in the Loan Agreement);
and

    

    WHEREAS, the _________________
Loan is one of the Individual Loans, and is evidenced and secured by, inter alia, the
following:

    

    
      	
               
      

            	
              (i)

            	
              Guarantor’s
      Amended, Restated and Consolidated Promissory Note of even date herewith
      in favor of Prudential in the original principal amount of _____________
      ($_________) and Guarantor’s Amended, Restated and Consolidated Promissory
      Note in favor of VPCM in the original principal amount of _____________
      ($_________) (collectively, the “_________________ Note”);
    and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              That
      certain Amended, Restated and Consolidated Mortgage and Security Agreement
      of even date herewith between Borrower and Lender, to be recorded in the
      real estate records of Bergen County, New Jersey (the “_________________
      Mortgage”), encumbering the _________________ Property and securing the
      _________________ Note; and

            

    

    

    WHEREAS, notwithstanding the
division of the Loan into seven (7) Individual Loans, certain terms, conditions
and provisions of the Application with respect to the Individual Loans relate to
all of the Individual Loans in the aggregate, and the relationship of all of the
Individual Loans to each other, including, but not limited to, provisions
relating to cross-default between the Loans, cross-collateral issues relating to
the Loans, and provisions relating to release of or substitution of collateral
(the “Master Loan Terms”); and

    

    WHEREAS, the REIT Corporation
and the Operating Partnership own, directly or indirectly through qualified REIT
subsidiaries, Guarantor and all of the Borrowers; and

    

    WHEREAS, the entire Loan in
the aggregate principal amount of $150,000,000.00 is to be secured by the
Properties listed on Exhibit A
attached hereto; notwithstanding that the Loan is divided into seven (7)
Individual Loans, Guarantor acknowledges that Lender would not make any of the
Individual Loans, or less than all of the Individual Loans, pursuant to the
provisions in the Application relating to the Individual Loans, without making
all seven (7) Individual Loans in compliance with the terms of the Application
and except in accordance with all the provisions set forth in this Guaranty;
and

     

     

    
      
         

      

      
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    WHEREAS, Guarantor
acknowledges that the provisions set forth in this Guaranty and otherwise set
forth in the Loan Documents relating to cross-default, cross-collateralization
and the other Master Loan Terms have resulted in more favorable economic terms
for the Individual Loan to Guarantor, and that Guarantor would be unable to
receive financing in the amount, or at the rate, or otherwise under more
favorable terms, than those set forth herein and, therefore, there exists direct
and valuable consideration for Guarantor’s consent and agreement to the Master
Loan Terms; and

    

    WHEREAS, one of the Master
Loan Terms involves the Cross-Collateralization of each of the Properties,
whereby the Properties of each Borrower will secure the entire Loan by virtue of
securing such Borrower’s New Note evidencing such Borrower’s Individual Loan and
such Borrower’s Cross-Collateral Guaranty (as defined in the Loan Agreement)
evidencing such Borrower’s obligation to repay the other Individual Loans;
and

    

    WHEREAS, the _________________
Property owned by Guarantor will secure the entire Loan by virtue of securing
the _________________ Note evidencing Guarantor’s Individual Loan and
Guarantor’s Cross-Collateral Guaranty evidencing Guarantor’s obligation to repay
the other Individual Loans; and

    

    WHEREAS, Guarantor will derive
financial benefit from the Individual Loans to the other Borrowers evidenced and
secured by the New Notes, Security Instruments, Loan Agreement and other Loan
Documents; the execution and delivery of this Guaranty by Guarantor is a
condition precedent to the advancement by Lender of the Loan and each of the
Individual Loans in order to evidence the obligation of Guarantor for repayment
of the Obligations other than the _________________ Loan entered into with
respect to the _________________ Property, and, with respect to such New Notes
and Individual Loans to such Borrowers, this Guaranty is intended to evidence
the separate obligations of Guarantor under the Loan Agreement as a guarantor of
a portion of the Loan as and to the extent described herein and subject to the
Limited Recourse Liability provisions incorporated by reference herein from the
_________________ Note; and

    

    WHEREAS, in connection with
the Existing Loans other than the Existing Guarantor Loan Guarantor delivered to
Lender that certain Amended and Restated Irrevocable Cross-Collateral Guaranty
of Payment and Performance dated as of April 30, 1998 (the “Existing
Guaranty”); and

    

    WHEREAS, all of the terms,
covenants and provisions of the Existing Guaranty are hereby modified, amended
and restated so that henceforth such terms, covenants and provisions shall be
those set forth in this Guaranty, and the Existing Guaranty, as so modified,
amended and restated in its entirety, is hereby ratified and confirmed in all
respects by Guarantor.

    

    NOW, THEREFORE, in
consideration of the foregoing recitals, which are incorporated into the
operative provisions of this Guaranty by this reference, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
conclusively acknowledged, Guarantor hereby covenants and agrees with Lender as
follows:

    

    FOR VALUE RECEIVED, the
receipt and sufficiency of which is hereby acknowledged, and in accordance with
the terms provided below, Guarantor absolutely and unconditionally guarantees
and agrees to pay to Lender at the address designated in the Notes (defined
below) for payment thereof or as such address may be changed as provided in the
Notes or the Instrument, all Obligations (defined below) of Borrowers, under the
Notes and other Documents (defined below), and absolutely and unconditionally
covenants and agrees with Lender pursuant to the terms of this Guaranty,
subject, however, to the provisions of Section 3 hereof, as
follows:

     

     

    
      
         

      

      
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    1.           As
used in this Guaranty, the term (i) “Documents” shall have the same
meaning as set forth in the Instruments (defined below); (ii) “Obligations” shall have the
same meaning as set forth in the Instruments; (iii) “Notes” shall refer to the New
Notes, but excluding the _________________ Note, as the same may be modified,
amended, renewed, extended, and/or substituted, which Notes are secured by the
Instrument (as hereinafter defined); (iv) “Instruments” shall refer to
each Amended, Restated and Consolidated Mortgages and Security Agreements of
even date herewith, from Borrowers to or for the benefit of Lender, and recorded
or to be recorded in the public records of Bergen County, New Jersey, which
secure the Notes; (v) “Cross Collateral Property”
shall have the same meaning as set forth in the Instruments; (vi) “Loans” shall mean the Loan
pursuant to the Loan Agreement, but excluding the Loan evidenced by the
_________________ Note, and (vii) “Costs” shall have the same
meaning as set forth in the Instrument;.  Capitalized terms used
herein and not defined herein shall have the meaning ascribed to such terms in
the Instruments.

    

    2.           Subject
to the provisions of Section 3 hereof, in the event Borrowers fail to pay
the Obligations, Guarantor shall upon written demand (not later than five (5)
days after written demand) of Lender promptly and with due diligence pay to and
for the benefit of Lender all of the Obligations, and, in addition, Guarantor
further agrees to pay any and all Costs incurred or expended by Lender in
collecting any of the Obligations or in enforcing any right granted
hereunder.  This Guaranty is the “Note” referred to and secured by the
Amended, Restated and Consolidated Second Priority Mortgage and Security
Agreement (Subordinate Mortgage to Secure Cross Collateral Guaranty) of even
date herewith between Borrower and Lender, to be recorded in the real estate
records of Bergen County, New Jersey and is secured by the _________________
Property.

    

    3.           Guarantor’s
liability under this Guaranty is expressly not subject to, or limited by, any
limitations on Borrowers’ liability set forth in the Notes, and Guarantor agrees
and acknowledges that Lender is relying upon this Guaranty in making the Loans
to Borrowers.  Notwithstanding the foregoing, the provisions of
Paragraph 8 and Paragraph 9 of the _________________ Note are
incorporated into this Guaranty as if such provisions were set forth in their
entirety in this Guaranty.  Guarantor agrees that any exculpatory
language (the “Other Exculpatory Language”) contained in the Notes (other than
the _________________ Note) which Other Exculpatory Language limits any
liability of Guarantor with respect to the Individual Loans related to such
Properties, shall in no event apply to limit Lender’s recourse under this
Guaranty, and the Other Exculpatory Language will not prevent Lender from
proceeding against Guarantor to enforce this Guaranty in the manner set forth in
the following sentences.  Notwithstanding the foregoing provisions of
this Section 3 with respect to the Other Exculpatory Language applicable to
Guarantor’s obligations and liabilities under Notes and Security Instruments
(other than those with respect to the _________________ Property), Guarantor’s
liability under this Guaranty shall be limited to Guarantor’s interest in the
_________________ Property and the other Collateral (as defined in the
_________________ Mortgage) encumbered or conveyed thereby in the Loan Documents
with respect to the _________________ Property.  Guarantor’s limited
recourse liability under this Guaranty shall be subject to the same limitations
and other provisions as are set forth in Paragraph 8 and Paragraph 9
of the _________________ Note, all of which terms and provisions are
incorporated herein by this reference, and, except to the extent provided
therein, Lender shall not enforce any deficiency judgment or personal money
judgment against Guarantor or any of its respective constituent partners, or any
of their respective officers, directors, agents, or shareholders with respect to
the obligations arising under and evidenced by this Guaranty.

    

    4.           In
the event that Lender elects to foreclose or to accept a deed-in-lieu of
foreclosure under the Instruments, Guarantor hereby acknowledges and agrees that
Guarantor’s recourse liability under this Guaranty as determined above shall be
calculated after deduction from the outstanding Obligations (including, but not
limited to, all principal, accrued interest, Prepayment Premium [as defined in
the Notes], advances and other charges) of (i) the amount of money bid by
or received by Lender at a foreclosure sale, or (ii) the value of the Cross
Collateral Property or any other property received by Lender as consideration
for acceptance of a deed-in-lieu of foreclosure.

     

     

    
      
         

      

      
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    5.           In
the event that Lender accepts a deed-in-lieu of foreclosure, the value of the
Cross Collateral Property and any other property received by Lender shall be
conclusively determined by an independent MAI appraiser, selected by Lender in
its sole discretion, having not less than five (5) years’ experience in
appraising commercial real estate in the area where the Cross Collateral
Property is located.  The fees and costs of said MAI appraiser shall
be paid by Guarantor.

    

    6.           Guarantor’s
recourse liability under this Guaranty shall continue with respect to any and
all Obligations, until Lender has been paid the full amount of the
Obligations from
any person or entity at the time of foreclosure or following an Event of
Default; provided, however, that Guarantor’s recourse liability under this
Guaranty shall be in addition to, and not in lieu of, any liability or
obligations of Guarantor under any other document or other instrument delivered
by Guarantor in connection with the Loans.

    

    7.           Guarantor
also acknowledges and agrees that Lender shall have the right to seek collection
of the recourse portion of the Loans under this Guaranty from Guarantor without
commencement of any foreclosure proceedings, subject, however, to the terms of
Section 3 hereof.

    

    8.           Guarantor
expressly waives presentment for payment, demand, notice of demand and of
dishonor and nonpayment of the Obligations or any part thereof, notice of
intention to accelerate the maturity of the Obligations or any part thereof,
notice of disposition of collateral, notice of acceleration of the maturity of
the Obligations or any part thereof, protest and notice of protest, diligence in
collecting, and the bringing of suit against any other
party.  Guarantor agrees that Lender shall be under no obligation to:
(i) notify Guarantor of its acceptance of this Guaranty or of any advances
made or credit extended on the faith of this Guaranty; (ii) notify
Guarantor of Borrowers’ failure to make payments due under the Notes as it
matures or the failure of Borrowers to pay any of the Obligations as they mature
or any default in performance of any obligations required by the Notes, the
Instruments or any other Document; (iii) use diligence in preserving the
liability of any person with respect to the Obligations, or with respect to the
Notes, the Instruments or any other Document; (iv) use diligence in
collecting payments or demanding performance required by the terms of the Notes,
the Instruments or any other Document; or (v) bring suit against, or take
any other action against, any party to enforce collection of the Notes, the
Instruments or any other Document.

    

    9.           Guarantor
waives all legal defenses (at law or in equity) given or available to sureties
or guarantors other than the actual payment in full of all Obligations, and
waives all legal defenses (at law or in equity) based upon the validity,
legality or enforceability of the Notes, the Instruments or any other Document
(including, without limitation, any claim that the Notes, the Instruments or any
other Document is or was in any way usurious), or otherwise with respect to the
Obligations.  In accordance with the terms of this Guaranty, Guarantor
agrees and acknowledges that it shall be primarily liable for payment of the
Obligations (subject only to the limitations set forth above) in the event of
default or foreclosure.

    

    10.           Guarantor
acknowledges and agrees that from time to time, at Lender’s discretion, with or
without valuable consideration, without authorization from or notice to
Guarantor, and without impairing, modifying, releasing, limiting or otherwise
affecting Guarantor’s liability under this Guaranty, Lender may: (i) alter,
compromise, accelerate, renew, extend or change the time or manner for the
payment of any or all of the Obligations due under the Notes, the
Instruments or any other Document; (ii) increase or reduce the rate of
interest with respect to the Notes or Loans; (iii) take and surrender
security, exchange security by way of substitution, or in any way Lender deems
necessary take, accept, withdraw, subordinate, alter, amend, modify or eliminate
security; (iv) add or release or discharge endorsers, guarantors or other
obligors; (v) make changes of any kind whatsoever in the terms of the
Notes, the Instruments or any other Document; (vi) make changes of any kind
whatsoever in the manner Lender does business with Borrowers; (vii) settle
or compromise with Borrowers or any other person(s) liable on the Notes, the
Instruments or any other Document on such terms as Lender determines;
(viii) apply all moneys received from Borrowers or others, or from any
security held (whether or not held under a mortgage, deed of trust, deed to
secure debt or other instrument), in such manner upon the Notes or upon any
other obligation arising under the Instruments or any other Document (whether
then due or not) as Lender determines to be in its best interest, and without in
any way being required to marshal securities or assets or to apply all or any
part of such moneys upon any particular part of the Notes, the Instruments or
any other Document, except to the extent as may be expressly provided
therein.

     

     

    
      
         

      

      
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    11.           Guarantor
agrees that Lender is not required to retain, hold, protect, exercise due care
with respect to, perfect security interests in, or otherwise assure or safeguard
any security for the Notes or the Loans.  Guarantor agrees and
acknowledges that Lender’s failure to do any of the foregoing and Lender’s
failure to exercise any other right or remedy available to Lender shall in no
way affect or alter any of Guarantor’s obligations under this Guaranty or any
security furnished by Guarantor, or give Guarantor any recourse against
Lender.

    

    12.           Guarantor
agrees that its liability under this Guaranty shall not be modified, changed,
released, limited or impaired in any manner whatsoever on account of any or all
of the following: (i) the incapacity, death, disability, dissolution or
termination of Guarantor, Borrowers, Lender or any other person or entity;
(ii) the failure by Lender to file or enforce a claim against the estate
(either in administration, bankruptcy or other proceeding) of Borrowers or any
other person or entity; (iii) the inability of Lender, Guarantor or any
other person or entity to recover from Borrowers or any other party due to the
expiration of any statute of limitations or due to any other cause whatsoever;
(iv) the claim or assertion (whether or not successful) by Borrowers or any
other person or entity of any available defenses, set-off rights or
counterclaims (other than payment in full of the Obligations) during any
judicial, arbitration, or mediation proceeding; (v) the transfer(s) of any
portion of the Cross Collateral Property encumbered by the Instruments or of any
other secured collateral by other instrument securing payment of the
Obligations; (vi) any modifications, extensions, amendments, consents,
releases or waivers with respect to the Notes, the Instruments or any other
Document, including, but not limited to, any other instrument that may now or
hereafter secure the payment of the Obligations or this Guaranty;
(vii) Lender’s failure to give any notice to Guarantor of any default under
the Notes, the Instruments or any other Document, including, but not limited to,
any other instrument securing the payment of the Obligations or this Guaranty;
(viii) Guarantor is or becomes liable for any indebtedness owed by
Borrowers to Lender other than that which is secured by this Guaranty; or
(ix) any impairment, modification, change, release or limitation of the
liability of, or stay of actions or lien enforcement proceedings against,
Borrowers, its property, or its estate in bankruptcy resulting from the
operation of any present or future provision of 11 U.S.C. §101 et. seq. or any other present
or future federal or state insolvency, bankruptcy or similar law (all of the
foregoing hereinafter collectively called “Applicable Bankruptcy Law”) or
from the decision of any court.

    

    13.           Guarantor
agrees and acknowledges that Lender shall not be required to (i) pursue any
other remedies before invoking the benefits of the guaranties contained in this
Guaranty, or (ii) make demand upon or institute suit or otherwise pursue or
exhaust its remedies against Borrowers or any surety other than Guarantor or to
proceed against any security now or hereafter existing for the payment of any of
the Obligations.  Guarantor also acknowledges that Lender may maintain
an action on this Guaranty without joining Borrowers in such action and without
bringing a separate action against Borrowers.

     

     

    
      
         

      

      
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    14.           If
the Notes, the Instruments or any other Document cannot be enforced against
Borrowers for any reason whatsoever (including but not limited to the legal
defenses of ultra
vires, lack of authority, illegality, force majeure, act of God,
usury or impossibility), such unenforceability shall not affect Guarantor’s
liability under this Guaranty.  Guarantor agrees that it shall be
liable to the extent provided in this Guaranty notwithstanding the fact that
Borrowers may be held not to be liable for such Obligations or not liable to the
same extent as Guarantor’s liability.

    

    15.           Guarantor
agrees that in the event that Borrowers do not or otherwise are unable to pay
the Obligations for any reason (including, without limitation, liquidation,
dissolution, receivership, conservatorship, insolvency, bankruptcy, assignment
for the benefit of creditors, sale of all or substantially all assets,
reorganization, arrangement, composition, or readjustment of, or other similar
proceedings affecting the status, composition, identity, existence, assets or
obligations of Borrowers, or the disaffirmance or termination of any of the
Obligations in or as a result of any such proceeding), Guarantor shall pay the
Obligations and such occurrence shall in no way affect Guarantor’s obligations
under this Guaranty.

    

    16.           Should
the status, structure or composition of Borrowers or any of them change,
Guarantor agrees that this Guaranty shall continue and shall also cover the
Obligations of Borrowers under the new status, structure or composition of
Borrowers, or of any successor.  This Guaranty shall remain in full
force and effect notwithstanding any transfer of the Cross Collateral Property
encumbered by the Instruments.

    

    17.           In
the event any payment by Borrowers to Lender is held to constitute a preference
under any Applicable Bankruptcy Law, or if for any other reason Lender is
required to refund or does refund such payment or pay such amount to any other
party, Guarantor acknowledges that such payment by Borrowers to Lender shall not
constitute a release of Guarantor from any liability under this Guaranty, but
Guarantor agrees to pay such amount to Lender upon demand and this Guaranty
shall continue to be effective or shall be reinstated, as the case may be, to
the extent of any such payment or payments.

    

    18.           Guarantor
agrees that it shall not have (i) the right to the benefit of, or to direct
the application of, any security held by Lender (including the Cross Collateral
Property covered, conveyed or encumbered by the Instruments and any other
instrument securing the payment of the Obligations), (ii) any right to
enforce any remedy which Lender now has or hereafter may have against Borrowers,
or (iii) any right to participate in any security now or hereafter held by
Lender.

    

    19.           Guarantor
also agrees that it shall not have (i) any defense arising out of the
absence, impairment or loss of any right of reimbursement or subrogation or
other right or remedy of Guarantor against Borrowers or against any security
resulting from the exercise or election of any remedies by Lender (including the
exercise of the power of sale under the Instruments), or (ii) any defense
arising by reason of any disability or other defense of Borrowers or by reason
of the cessation, from any cause (other than as a result of payment in full of
the Obligations), of Borrowers’ liability under the Notes, the Instruments or
any other Document.

    

    20.           Guarantor
agrees that any payment it makes of any amount pursuant to this Guaranty shall
not in any way entitle Guarantor to any right, title or interest (whether by way
of subrogation or otherwise) in and to the Notes, the Instruments or any other
Document, or any proceeds attributable to the Notes, the Instruments or any
other Document, unless and until the full amount of the Obligations owing to
Lender has been fully paid.  At such time as the full amount of the
Obligations owing to Lender has been fully paid, Guarantor shall be subrogated
as to any payments made by it to Lender’s rights against Borrowers and/or any
endorsers, sureties or other guarantors.  For the purposes of the
preceding sentence only, the full amount of the Obligations shall not be deemed
to have been paid in full by foreclosure of the Instruments or by acceptance of
a deed-in-lieu of foreclosure, and Guarantor hereby waives and disclaims any
interest which it might have in the Cross Collateral Property encumbered by the
Instruments or other collateral security for the Obligations, by subrogation or
otherwise, following such foreclosure or Lender’s acceptance of a deed-in-lieu
of foreclosure.

     

     

    
      
         

      

      
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    21.           Guarantor
expressly subordinates its rights to payment of any indebtedness owing from
Borrowers to Guarantor(including, but not limited to, property management and
construction management fees and leasing commissions), whether now existing or
arising at any time in the future, to the right of Lender to first receive or
require payment of the Obligations in full (and including interest accruing on
the Notes after any petition under Applicable Bankruptcy Law, which
post-petition interest Guarantor agrees shall remain a claim that is prior and
superior to any claim of Guarantor notwithstanding any contrary practice, custom
or ruling in proceedings under such Applicable Bankruptcy
Law).  Guarantor further agrees, upon the occurrence of an Event of
Default, not to accept any payment or satisfaction of any kind of indebtedness
of Borrowers to Guarantor or any security for such indebtedness without Lender’s
prior written consent.  If Guarantor should receive any such payment,
satisfaction or security for any indebtedness owed by Borrowers to Guarantor,
Guarantor agrees to deliver the same without delay to Lender in the form
received, endorsed or assigned for application on account of, or as security
for, the Recourse Liability; until such payment, satisfaction or security is
delivered, Guarantor agrees to hold the same in trust for Lender.

    

    22.           Under
no circumstances shall the aggregate amount paid or agreed to be paid under this
Guaranty exceed the highest lawful rate permitted under applicable usury law
(the “Maximum Rate”) and
the payment obligations of Guarantor hereunder are hereby limited
accordingly.  If under any circumstances, whether by reason of
advancement or acceleration of the unpaid principal balance of the Notes or
otherwise, the aggregate amounts paid hereunder shall include amounts which by
law are deemed interest and which could exceed the Maximum Rate, Guarantor
stipulates that payment and collection of such excess amounts shall have been
and will be deemed to have been the result of a mistake on the part of both
Guarantor and Lender, and Lender shall promptly credit such excess (only to the
extent such interest payments are in excess of the Maximum Rate) against the
unpaid principal balance of the Notes, and any portion of such excess payments
not capable of being so credited shall be refunded to Guarantor.  The
term “applicable law” as
used in this paragraph shall mean the laws of the Property State (as such term
is defined in the Instruments) or the laws of the United States, whichever laws
allow the greater rate of interest, as such laws now exist or may be changed or
amended or come into effect in the future.

    

    23.           Guarantor
hereby represents, warrants and covenants to and with Lender as follows:
(i) the making of the Loans by Lender to Borrowers are and will be of
direct interest, benefit and advantage to Guarantor; (ii) Guarantor is
solvent, is not bankrupt and has no outstanding liens, garnishments,
bankruptcies or court actions which could render Guarantor insolvent or
bankrupt; (iii) there has not been filed by or against Guarantor a petition
in bankruptcy or a petition or answer seeking an assignment for the benefit of
creditors, the appointment of a receiver, trustee, custodian or liquidator with
respect to Guarantor or any substantial portion of Guarantor’s property,
reorganization, arrangement, rearrangement, composition, extension, liquidation
or dissolution or similar relief under Applicable Bankruptcy Law; (iv) all
reports, financial statements and other financial and other data which have been
or may hereafter be furnished by Guarantor to Lender in connection with this
Guaranty are or shall be true and correct in all material respects and do not
and will not omit to state any fact or circumstance necessary to make the
statements contained therein not misleading and do or shall fairly represent the
financial condition of Guarantor as of the dates and the results of Guarantor’s
operations for the periods for which the same are furnished, and no material
adverse change has occurred since the dates of such reports, statements and
other data in the financial condition of Guarantor; (v) the execution,
delivery and performance of this Guaranty do not contravene, result in the
breach of or constitute a default under any mortgage, deed of trust, lease,
promissory note, loan agreement or other contract or agreement to which
Guarantor is a party or by which Guarantor or any of its properties may be bound
or affected and do not violate or contravene any law, order, decree, rule or
regulation to which Guarantor is subject; (vi) there are no judicial or
administrative actions, suits or proceedings pending or, to the best of
Guarantor’s knowledge, threatened against or affecting Guarantor which would
have a material adverse effect on either the Property or Borrower’s ability to
perform its obligations, or involving the validity, enforceability or priority
of this Guaranty; and (vii) this Guaranty constitutes the legal, valid and
binding obligation of Guarantor enforceable in accordance with its
terms.

     

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

     

    
 

    24.           Guarantor
will furnish to Lender the financial statements and other information as to
Guarantor as are described in Section 3.15 of the Instrument, on or before the
deadlines set forth therein. Guarantor will provide to Lender such other
financial information and statements concerning Guarantor's financial status as
Lender may request from time to time, all of which shall be in form and
substance acceptable to Lender. Guarantor shall be in default hereunder if there
is any falsity in any material respect or any material omission in any
representation or statement made by Guarantor to Lender or in any information
furnished Lender, by or on behalf of Borrower or Guarantor, in connection with
the Loan and/or any of the Obligations, as determined by Lender in its sole and
absolute discretion.

    

    25.           Guarantor
further agrees to the following:

    

    (a)           Where
two or more persons or entities have executed this Guaranty, unless the context
clearly indicates otherwise, all references herein to “Guarantor” shall mean the
guarantors hereunder or either or any of them.  All of the obligations
and liability of said guarantors hereunder shall be joint and
several.  Suit may be brought against said guarantors, jointly and
severally, or against any one or more of them, or less than all of them, without
impairing the rights of Lender against the other or others of said
guarantors.  Lender may compound with any one or more of said
guarantors for such sums or sum as it may see fit and/or release such of said
guarantors from all further liability to Lender for such indebtedness without
impairing the right of Lender to demand and collect the balance of such
indebtedness from the other or others of said guarantors not so compounded with
or released.  However, said guarantors agree that such compounding and
release shall in no way impair the their rights as among
themselves.

    

    (b)           Except
as otherwise provided herein, the rights of Lender are cumulative and shall not
be exhausted by its exercise of any of its rights under this Guaranty or
otherwise against Guarantor or by any number of successive actions, until and
unless all Obligations have been paid and each of the obligations of Guarantor
under this Guaranty have been performed.

    

    (c)           Intentionally
Omitted.

    

    (d)           Any
notice or communication required or permitted under this Guaranty shall be given
in writing, sent by (i) personal delivery, or (ii) expedited delivery
service with proof of delivery, or (iii) United States mail, postage
prepaid, registered or certified mail, sent to the intended addressee at the
address shown below, or to such other address or to the attention of such other
person(s) as hereafter shall be designated in writing by the applicable party
sent in accordance herewith.  Any such notice or communication shall
be deemed to have been given and received either at the time of personal
delivery or, in the case of delivery service or mail, as of the date of first
attempted delivery on a business day at the applicable address and in the manner
provided herein.

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    
 

    (e)           This
Guaranty shall be deemed to have been made under and shall be governed in all
respects by the laws of the Property State.

    

    (f)           This
Guaranty may be executed in any number of counterparts with the same effect as
if all parties hereto had signed the same document.  All such
counterparts shall be construed together and shall constitute one instrument,
but in making proof hereof it shall only be necessary to produce one such
counterpart.

    

    (g)           This
Guaranty may only be modified, waived, altered or amended by a written
instrument or instruments executed by the party against which enforcement of
said action is asserted.  Any alleged modification, waiver, alteration
or amendment which is not so documented shall not be effective as to any
party.

    

    (h)           The
books and records of Lender showing the accounts between Lender and Borrowers
shall be admissible in any action or proceeding arising from this Guaranty as
prima facie evidence for any claim whatsoever, absent manifest
error.

    

    (i)           Guarantor
waives and renounces any and all homestead or exemption rights Guarantor may
have under the United States Constitution, the laws of the Property State, or
the laws of any state as against Guarantor, and Guarantor transfers, conveys and
assigns to Lender a sufficient amount of such homestead or exemption as may be
allowed, including such homestead or exemption as may be set apart in
bankruptcy, to pay and perform the obligations of Guarantor arising under this
Guaranty.  Guarantor hereby directs any trustee in bankruptcy having
possession of such homestead or exemption to deliver to Lender a sufficient
amount of property or money set apart as exempt to pay and perform such
Guarantor obligations.

    

    (j)           The
terms, provisions, covenants and conditions of this Guaranty shall be binding
upon Guarantor, its heirs, devisees, representatives, successors and assigns,
and shall inure to the benefit of Lender and Lender’s transferees, credit
participants, successors, assigns and/or endorsees.

    

    (k)           Within
this Guaranty, the words of any gender shall be held and construed to include
any other gender, and the words in the singular number shall be held and
construed to include the plural and the words in the plural number shall be held
and construed to include the singular, unless the context otherwise
requires.

    

    (l)           A
determination that any provision of this Guaranty is unenforceable or invalid
shall not affect the enforceability or validity of any other provision, and any
determination that the application of any provision of this Guaranty to any
person or circumstance is illegal or unenforceable shall not affect the
enforceability or validity of such provision as it may apply to any other
persons or circumstances.  Accordingly, the provisions of this
Guaranty are declared to be severable.

     

     

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    
 

    THIS GUARANTY is executed as of the
date and year first above written.

    

    
      	 
      	
              GUARANTOR:

               

              ________________________________

               

              By:  ________________________________                                                 

              Name:  Barry
      Lefkowitz

              Title:  Executive
      Vice President and Chief Financial Officer

               

            

    

    

    The
address of Guarantor is:

    
      

      
        	
                 
      

              	
                [_________________]

              

        
          	
                   
      

                	
                  c/o Mack-Cali
      Realty Corporation

                

          
            	
                     
      

                  	
                    343 Thornall
      Street

                  

            
              	
                       
      

                    	
                      Edison,
      New Jersey  08837

                    

              
                	
                         
      

                      	
                        Attn:
      Mitchell E. Hersh, President and Chief Executive
  Officer

                      

              

            

          

        

      

    

     

    With a copy to:

    
       

    

    
      	
               
      

            	
              General
      Counsel

            

    

    
      	
               
      

            	
              Mack-Cali
      Realty Corporation

            

    

    
      	
               
      

            	
              343 Thornall
      St.

            

    

    
      	
               
      

            	
              Edison,
      New Jersey 08837

            

    

    
      	
               
      

            	
              Attention:  Roger
      W. Thomas

            

    

    

    The
address of Lender is:

    
      

      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA AND VPCM,
  LLC

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources, Inc.

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Asset
      Management Department;  Reference Loan No. __________ and
      ________

            

    

    

    With a copy to:

    
      

      
        	
                 
      

              	
                THE
      PRUDENTIAL INSURANCE COMPANY OF
AMERICA

              

      

    

    
      	
               
      

            	
              c/o Prudential
      Asset Resources, Inc.

            

    

    
      	
               
      

            	
              2100 Ross
      Avenue, Suite 2500

            

    

    
      	
               
      

            	
              Dallas,
      Texas   75201

            

    

    
      	
               
      

            	
              Attention:  Legal
      Department;  Reference Loan No. _______
      and  ________

            

    

    

    
      
         

      

      
        -11-Exhibit 10.1 

Execution Copy 

EMPLOYMENT AGREEMENT

          AGREEMENT
made as of the 18th day of January, 2010, by and between ZYGO CORPORATION, a
Delaware corporation (the “Company”), and Dr. CHRIS L. KOLIOPOULOS
(“Executive”). 

                  1.          Employment.
Executive shall be employed as the President and Chief Executive Officer of the
Company pursuant to this Agreement. 

          1.1          Duties
and Responsibilities. Executive will have the authority, duties and
responsibilities customarily associated with the position of President and
Chief Executive Officer, consistent with the Company’s by-laws and applicable
law. Executive will have such additional duties and responsibilities
commensurate with his position as the Company’s Board of Directors (the
“Board”) may assign to him from time to time. Executive will report directly to
and be subject to the control and direction of the Board. As of or as soon as
practicable after the Executive’s employment begins, Executive will be
appointed to be a member of the Board. The Company will use its reasonable
efforts to ensure that Executive will continue to be a member of the Board
during the period of his employment under this Agreement. At the request of the
Board, Executive shall serve as an officer and director of the Company’s
subsidiaries and other affiliates without additional compensation. Executive
will observe and adhere to all applicable written Company policies and
procedures in effect from time to time, including, without limitation, policies
on business ethics and conduct, and policies on the use of inside information
and insider trading. 

          1.2          Term.
Unless sooner terminated pursuant to Section 3, the term of this Agreement (the
“Term”) will begin on the 18th day of January, 2010 and will end January 19,
2014. Thereafter, the Term will automatically be renewed for successive
one-year periods unless either party provides written notice of non-renewal to
the other at least 90 days before the end of the then-current Term. 

          1.3          Full
Time. Executive shall devote all of his business time and attention to the
performance of his duties and responsibilities under this Agreement. Executive
will not render services to others for compensation or, without the written consent
of the Board (which shall not be unreasonably withheld), serve on the board of
directors or other governing body of another for profit entity. Executive may
engage in personal, charitable and passive investment activities, so long as
such activities do not conflict or interfere with his ability to perform the
duties and responsibilities of his employment under this Agreement. 

          1.4          Location
of Employment. Executive and his family currently reside in Tucson,
Arizona. It is contemplated that Executive will not relocate to the Company’s
headquarters in Middlefield, Connecticut but, rather, will spend approximately
half of his working time in Middlefield, Connecticut and the balance in the
area of his residence in 

- 1 -

Tucson, Arizona, in each case subject to the
need for business travel in connection with the performance of his duties. 

                  2.          Compensation.

          2.1          Base
Salary. The Company will pay base salary (“Base Salary”) to Executive, in
accordance with its regular payroll practices applicable to its employees
generally in the State of Arizona, at an initial annual rate of $425,000. The
Board and/or the Compensation Committee of the Board (the “Compensation
Committee”) will review Executive’s Base Salary annually, which review, absent
unusual circumstances, will be made no later than 45 days after the beginning
of each fiscal year of the Company. The Board or the Compensation Committee,
acting in its discretion, may increase (but may not decrease) the annual rate
of Executive’s Base Salary; provided, however, that the Board may decrease
Executive’s Base Salary rate if such reduction is made as part of and
consistent with an across the board temporary salary reduction instituted in
conjunction with cost cutting measures and applicable to the Company’s senior
executive officers generally, in all cases pursuant to the Executive’s
recommendation or with the Executive’s consent. 

          2.2          Annual
Bonus Opportunity. For each fiscal year of the Company, Executive will have
a target bonus opportunity equal to 50% of his Base Salary. The target bonus
opportunity for any fiscal year will be based upon the attainment of
performance objectives (with an emphasis on profitability) determined by the Board
or the Compensation Committee, after consultation with Executive, no later than
60 days after the beginning of the fiscal year. The amount (if any) of the
target bonus for any fiscal year will be determined and payable no later than
75 days after the beginning of the next fiscal year. The bonus opportunity for
the partial fiscal year will be prorated to reflect the Base Salary actually
earned by Executive during such partial year. The performance objectives for
the partial fiscal year beginning on the date Executive’s employment commences
will be determined by the Board or the Compensation Committee within 30 days
after such date. 

          2.3          Annual
Bonus Stock Purchase Option. For each fiscal year of the Company, if
Executive has attained performance expectations to be determined by the
Compensation Committee in consultation with Executive no later than 60 days
after the beginning of such fiscal year, Company will grant Executive an option
to purchase no more than 50,000 shares of Company common stock for a purchase
price per share equal to the NASDAQ closing price per share of Company common
stock on the trading day next preceding the award date as determined by the
Board or the Compensation Committee, which options shall be governed by the Company’s
stock option agreement, substantially in the form attached hereto as Exhibit A.
The determination of whether the performance condition for a fiscal year is met
will be made by the Compensation Committee and the issuance of the options, if
any, earned by the Executive as a result of the attainment of the performance
conditions shall be made as soon as practicable (but not more than 75 days)
after the end of each fiscal year. 

- 2 -

          2.4          Initial
Equity Award. The Company will issue to Executive a one-time option to
purchase 250,000 shares of Company common stock for a purchase price per share
equal to the NASDAQ closing price per share of Company common stock on the
trading day next preceding the date this Agreement is executed and delivered by
Executive to the Company. The option will vest in four equal annual increments,
beginning on the first anniversary of the date Executive’s employment
commences, subject to Executive’s continuing employment, and will be governed
by the terms of the Company’s stock option agreement, substantially in the form
annexed as Exhibit A hereto. 

          2.5          Annual
Equity Awards. Executive will be eligible for annual equity awards under
the Company’s equity incentive plan at valuation levels and on vesting and
other terms and conditions that are not less favorable than the annual equity
awards being made generally to other senior executives of the Company, taking
into consideration the awards made under section 2.3. 

          2.6          Employee
Benefits. Executive will be eligible to participate in such retirement,
welfare and other employee benefit and fringe benefit plans, arrangements,
programs and perquisites as are provided by the Company from time to time to or
for the benefit of the Company’s other senior executives, on comparable terms
and conditions. Executive shall be entitled to four weeks of paid vacation time
during each calendar year of employment. 

          2.7          Reimbursement
of Business Expenses. Executive is authorized to incur reasonable expenses
in carrying out his duties and responsibilities of his employment under this
Agreement, and the Company will promptly reimburse him for all expenses that
are so incurred upon presentation of appropriate vouchers or receipts, subject
to the Company’s expense reimbursement policies applicable to senior executives
generally as in effect from time to time. The Company will pay or reimburse
Executive for the payment of reasonable attorney fees incurred by Executive in
connection with the review and preparation of this Agreement, subject to a
total limit of $15,000. 

          2.8          Housing,
Automobile and Commuting Expenses. The Company will provide, at Company’s
sole expense, a furnished apartment in the Middletown, Connecticut area for use
by Executive during the periods he is working at the Company’s headquarters,
and the Company will pay or reimburse Executive for the payment of reasonable
travel expenses incurred by Executive to and from his residence in Arizona in
connection with his having to work at the Company’s headquarters. The Company
will provide Executive with the use of an automotive vehicle while he is
spending time in the Middletown, Connecticut area and will pay the reasonable
expenses (including insurance, maintenance and parking) relating to the use of
such vehicle. 

                  3.          Termination
of Employment Before End of Term. 

          3.1          Termination
by Company for Cause. The Company may terminate Executive’s employment
before the end of the Term for Cause if Executive: (a) is 

- 3 -

convicted of or pleads nolo contendre to a
felony involving moral turpitude, (b) commits fraud or a material act or
omission involving dishonesty affecting the assets, business or reputation of
the Company or any of its subsidiaries or affiliates, (c) willfully and
continually fails or refuses to carry out the material responsibilities of his
employment, as reasonably determined by the Board, other than a failure
resulting from Executive’s complete or partial incapacity due to physical or
mental illness or impairment, (d) willfully engages in misconduct or engages in
a pattern of behavior such as alcohol or substance abuse that results in or is
highly likely to result in material harm to the Company or that has or is
highly likely to have a material adverse effect on the ability of Executive to
perform the duties and responsibilities of his employment, or (e) willfully
engages in any act or omission that is in material violation of Company policy,
including, without limitation, Company policy on business ethics and conduct,
and Company policy on the use of inside information and insider trading;
provided, however, that with regard to any of the conduct above giving rise to
termination for Cause, if such conduct is curable and is not a new instance of
such conduct that was previously cured pursuant to this provision, Executive
will be afforded an opportunity to effect such a cure within 30 days after
written notice of termination and thereby avoid a termination for Cause based
upon such conduct. For purposes of this Agreement, no act or failure to act on
Executive’s part shall be deemed “willful” unless done, or omitted to be done,
by Executive not in good faith and without reasonable belief that the Executive’s
action or omission was in the best interest of the Company. Notwithstanding the
foregoing, Executive shall not be deemed to have been terminated for Cause
unless and until the Company provides notice to the Executive by providing a
copy of a resolution duly adopted by the affirmative vote of the Board at a
meeting of the Board called and held for such purpose (after reasonable notice
to Executive and an opportunity for Executive, together with counsel, to be
heard before the Board) finding that, in the good faith opinion of the Board,
Executive was guilty of conduct set forth above and specifying the particulars
thereof in reasonable detail. 

          3.2          Resignation
by Executive. Executive may terminate his employment before the end of the
Term, subject to at least 60 days’ prior written notice to Company. Upon
receipt of such notice, the Company may relieve Executive of some or all of his
duties and/or set an earlier termination date. 

          3.3          Termination
by Company without Cause. Company may terminate Executive’s employment
without Cause before the end of the Term, subject to 60 days prior written
notice to Executive. Following such notice, the Company may relieve Executive
of some or all of his duties, provided that Company continues to pay Executive
through the end of the notice period. 

          3.4          Termination
Due to Disability or Death. Company may terminate Executive’s employment
before the end of the Term due to “Disability” if Executive is unable to
substantially perform the customary duties and responsibilities of his
employment for at least 90 consecutive calendar days or 120 or more calendar
days during any 365 calendar day period by reason of physical or mental
incapacity which is expected to result in death or last indefinitely, as
determined by a duly licensed physician selected by the Board. Executive
acknowledges that, if he incurs a Disability 

- 4 -

as described in the preceding sentence, he
will have become unable to perform the essential functions of his position and
there would be no reasonable accommodation which would not constitute an undue
hardship to the Company that the Company could make due to the nature of his
position. No minimum notice is required for a termination due to Executive’s
Disability. If Executive dies before the end of the Term, his employment will
terminate on the date of his death. 

          3.5          Termination
by Executive for Good Reason. Executive may terminate his employment for
Good Reason. For this purpose, the term “Good Reason” means any of the
following: (a) a material adverse change by Company of Executive’s status or
position as the President and Chief Executive Officer, including, without
limitation, a material diminution of his position, duties, responsibilities or
authority or the assignment to him of duties or responsibilities that are
materially inconsistent with his status or position; (b) a reduction by the
Company of Executive’s annual Base Salary or failure to pay same in violation
of Section 2.1; or (c) a reduction by the Company of Executive’s total target
incentive opportunity during a fiscal year in violation of Section 2.2; (d) a
breach by the Company of any of its material obligations under this Agreement
(including without limitation Section 1.4); or (e) in connection with a Change
in Control, the failure or refusal by the successor or acquiring company to
expressly assume the obligations of Company under this Agreement. Executive
will not have “Good Reason” to terminate his employment pursuant to (a) above
merely because he is no longer the chief executive of a public company,
provided that his operational duties, responsibilities and authority are not
otherwise materially diminished. As a condition to terminating his employment
for Good Reason, Executive must specify in writing to the Company (or the
successor or acquiring company) the nature of the act or omission that
Executive deems to constitute Good Reason and provide the Company (or the
successor or acquiring company) 30 days after receipt of such notice to review
and, if required, correct the situation (and thus prevent Executive’s
termination for Good Reason). Notice of termination for Good Reason must be
provided, if at all, within 90 days after the occurrence of the event or
condition giving rise to such termination. 

          3.6          Definition
of Change in Control. For the purposes hereof, a “Change in Control” will
be deemed to have occurred if and when, after the date of this Agreement, 

                         (a)          any
person, as such term is used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”), other than (1) the Company, (2) any
trustee or other fiduciary holding securities under an employee benefit plan of
the Company, (3) any entity owned, directly or indirectly, by the shareholders
of the Company in substantially the same proportions as their ownership of
stock of the Company, or (4) any person who becomes a beneficial owner (as
defined below) in connection with a transaction described in clause (1) of
subparagraph (c) below, is or becomes the beneficial owner (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or its affiliates) representing
50 percent or more of the combined voting power of the Company’s then
outstanding voting securities; 

- 5 -

                         (b)          the
following individuals cease for any reason to constitute a majority of the
directors then serving: individuals who on the date hereof, constitute the
Board and any new director (other than a director whose initial assumption of
office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation relating to the election of
directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s shareholders was approved or
recommended by a vote of at least two-thirds of the directors then still in
office who were directors on the date hereof, or whose appointment, election or
nomination for election was previously so approved or recommended; 

                         (c)          there
is consummated a merger or consolidation of the Company or any direct or
indirect subsidiary of the Company with any other entity, other than (1) a
merger or consolidation which results in the directors of the Company
immediately prior to such merger or consolidation continuing to constitute at
least a majority of the board of directors of the Company, the surviving entity
or any parent thereof or (2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person is
or becomes the beneficial owner, directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such person any
securities acquired directly from the Company or its affiliates) representing
40% or more of the combined voting power of the Company’s then outstanding
securities; or 

                         (d)          the
shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets,
other than a sale or disposition by the Company of all or a majority of the
Company’s assets, income or revenue to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by shareholders of the
Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale. 

                  4.          Payments
and Benefits Upon Termination of Employment. 

          4.1          Termination
of Employment by Company without Cause or by Executive for Good Reason. If
Executive’s employment is terminated by Company without Cause pursuant to
Section 3.3 or by Executive for Good Reason pursuant to Section 3.5, then,
subject to Section 5, Executive shall receive the following payments and
benefits: 

                         (a)          a
single cash payment equal to the sum of (1) the unpaid amount, if any, of Base
Salary previously earned by Executive through the date of his termination, and
(2) the unpaid amount, if any, of the annual bonus earned by Executive for the
preceding year; 

                         (b)          payment
of any business and other expenses described in Sections 2.5 and 2.6 that were
previously incurred but not reimbursed and are otherwise eligible for
reimbursement; 

- 6 -

                         (c)          any
payments or benefits payable to Executive or his covered spouse, or a dependent
or beneficiary of Executive, under and in accordance with the provisions of any
employee benefit plan, program or arrangement of the Company; 

                         (d)          a
cash payment equal to the product of (1) the annual bonus award (if any) that
would have been earned by Executive for the fiscal year in which his employment
terminates if his employment had continued, multiplied by (2) a fraction, the
numerator of which is the number of days elapsed from the beginning of that
fiscal year until the date his employment terminates, and the denominator of
which is 365 (“Pro Rata Bonus”), which payment will be made when the bonus for
such fiscal year would otherwise have been paid; 

                         (e)          salary
continuation payments (determined and paid as if Executive’s employment had
continued) for a period of 24 months following such termination of employment
at the rate of his annual Base Salary in effect at the time of such termination
of employment (it being understood that salary continuation payments shall be funded
in advance through an escrow account or similar arrangement), provided, however,
that, if such termination of employment occurs after a Change in Control, the
aggregate amount of such severance (i.e., an amount equal to 200% of the annual
rate of Executive’s Base Salary in effect at the time of such termination of
employment) will be payable to Executive in a single sum cash payment within 30
days after such termination; 

                         (f)          full
vesting in the Initial Equity Award granted pursuant to this Agreement and any
other unvested options that are outstanding at the time his employment
terminates; and 

                         (g)          if
the Executive and/or his covered spouse or dependents elect COBRA continuation
coverage as a result of the termination of Executive’s employment, then the
Company will pay the full amount of the COBRA premium for such coverage for a
period of up to 18 months following the termination of Executive’s employment. 

          4.2          Termination
Due to Disability or Death. If Executive’s employment is terminated
pursuant to Section 3.4 by reason of his death or Disability, then, subject to
Section 5, Executive (or, as applicable, his spouse, covered dependents and/or
beneficiaries) shall receive the payments and benefits the Executive (or, as
applicable, his spouse, covered dependents and/or beneficiaries) would have
been entitled to receive pursuant to Section 4.1(a) – (d), 4.1(f) and 4.1(g)
if, instead of terminating due to death or Disability, the Executive’s
employment had been terminated by the Company without Cause on the date of
actual termination. 

          4.3          Termination
by Company for Cause or Resignation by Executive. If Company terminates
Executive’s employment for Cause pursuant to Section 3.1 or if Executive
resigns his employment pursuant to Section 3.2 (other than a resignation for
Good Reason pursuant to Section 3.5), Executive shall not be entitled to any
payments or benefits except for those pursuant to section 4.1 (a)-(c). 

- 7 -

                  5.          Release
of Claims; Restoration of Payments; Section 409A Delayed Payments. 

          5.1          Release.
Notwithstanding anything to the contrary contained herein, Executive’s right to
receive any and all separation payments or benefits under Sections 4.1(d) –
4.1(g) (and, by extension, Section 4.2) shall be conditioned on the execution
and delivery of a general release by Executive in favor of Company, its
affiliates and their officers, directors and employees, substantially in the
form attached hereto as Exhibit B. Any such payment or benefit shall be
deferred until the expiration of the seven day revocation period prescribed by
the Age Discrimination in Employment Act of 1967, as amended, or any similar revocation
period in effect on the effective date of the termination of Executive’s
employment. 

          5.2          Restoration
of Payments. Executive’s right to receive any separation payments and
benefits pursuant to this Agreement shall be subject to his compliance with the
restrictive covenants referenced or set forth in Section 6 and repayment
pursuant to this Section. If a court or arbitrator grants equitable relief in
connection with a violation or breach by the Executive of any said restrictive
covenant or determines that Executive has violated or is in breach of any said
restrictive covenants, then Executive shall not be entitled to any further
separation payments and benefits under this Agreement; and, if a court or
arbitrator determines that Executive has violated or is in breach of any said
restrictive covenants, then (a) Executive shall be obligated to immediately
return to the Company any separation payments and the value of any separation
benefits previously received hereunder, and (b) Executive shall have no further
rights or entitlements under this Agreement. This Section shall not in any
manner supersede or limit any other right the Company may have to enforce or
seek legal or equitable relief with respect to a violation or breach by Executive
of any of said restrictive covenants. 

          5.3          Section
409A Delayed Payment Requirements. Notwithstanding any provision to the
contrary in this Agreement or in any employee plan or other agreement, plan,
policy or program of the Company, any payment otherwise required to be made to
Executive on account of his separation from service, to the extent such payment
is properly treated as deferred compensation subject to Section 409A of the
Code and the regulations and other applicable guidance issued by the Internal
Revenue Service thereunder, shall be delayed until the first business day after
the expiration of six months from the date of the termination of Executive’s
employment or, if earlier, the date of his death. On the delayed payment date,
there shall be paid to Executive (or his estate, as the case may be) in a
single cash payment an amount equal to the aggregate amount of the payments
delayed pursuant to the preceding sentence. Notwithstanding the foregoing,
Executive shall be solely responsible, and the Company shall have no liability,
for any taxes, acceleration of taxes, interest or penalties arising under
Section 409A of the Code. 

- 8 -

                  6.          Restrictive
Covenants. 

          6.1          Nondisclosure
of Confidential Information; Inventions. Executive will be bound by the
covenants contained in the Company’s form of Nondisclosure and Assignment of
Inventions Agreement annexed hereto as Exhibit C, as it currently exists or may
be hereafter amended for executives or employees generally, said covenants
being incorporated herein by reference, it being understood that such covenants
shall apply to the information, inventions and property of the Company and its
subsidiaries. 

          6.2          Duty
to Return Company Documents and Property. Upon the termination of
Executive’s employment with the Company for any reason, Executive shall
immediately return and deliver to the Company any and all papers, books,
records, documents, memoranda and manuals, e-mail, electronic or magnetic
recordings or data, including all copies thereof, belonging to the Company or
any of its subsidiaries or relating to the business of the Company or any of
its subsidiaries, in Executive’s possession, whether prepared by Executive or
others. If at any time after the termination of employment, Executive
determines that he has any trade secrets or other confidential information
belonging to the Company or any of its subsidiaries in his possession or
control, Executive shall immediately return to the Company all such trade
secrets and other confidential information, including all copies and portions
thereof. 

          6.3          Non-Solicitation.
During the period of Executive’s employment or other service with the Company
and for 18 months thereafter, Executive shall not, without the prior written
consent of the Company, directly or indirectly: (a) solicit, request, advise,
entice, persuade or induce any employee, consultant, or independent contractor
employed by or working on behalf of the Company or any of its subsidiaries at
any time during the one-year period prior to the Executive’s termination of
employment with the Company to leave the Company or any of its subsidiaries or
to engage in any activity which, were it done by the Executive, would violate
the terms of this Agreement; (b) or solicit, request, advise, entice, persuade
or induce any individual or entity, including but not limited to any customer,
supplier, vendor, investor, equity or financing source, or other contracting
party of the Company or any of its subsidiaries, to terminate, reduce or
refrain from continuing or renewing their present or prospective contractual or
business relationship with the Company or any of its subsidiaries. 

          6.4          Non-Competition
Restrictions. During the period of Executive’s employment or other service
with the Company and for 24 months thereafter, Executive shall not, directly or
indirectly, without the prior written consent of the Company, engage in, become
financially interested in, be employed by, render any consultation or business
advice with respect to, or have any connection with, any business engaged in
the research, development, testing, design, manufacture, sale, lease,
marketing, utilization or exploitation of any products or services which are
designed for the same purpose as or are otherwise directly competitive with,
products or services of the Company or any of its subsidiaries, in any
geographic area where, during the period of his employment with the Company or
any subsidiary or at the time of the termination of his employment or other
service with the Company and its subsidiaries, as the case may be, the Company
or any of its subsidiaries has or has documented current plans to 

- 9 -

have an active business presence.
Notwithstanding the foregoing, nothing herein shall restrict Executive from
employment with any entity that is in competition with Company if the
competitive business unit of such entity is not the primary business of such
entity, and if the Executive is not involved in activities that are in
competition with the Company. Moreover, notwithstanding the foregoing,
Executive’s mere purchase or holding, for investment purposes, of securities
representing less than 5% of the
outstanding value or voting interest of a publicly traded company shall not be
deemed to be a violation of the provisions of this paragraph (it being
understood that the purchase or holding of securities of a company that is not
engaged in the research, development, testing, design, manufacture, sale,
lease, marketing, utilization or exploitation of any products or services which
are designed for the same purpose as or are otherwise directly competitive
with, products or services of the Company or any of its subsidiaries, shall not
be restricted by this paragraph).

          6.5          Reformation.
Executive acknowledges that the Company and its subsidiaries conduct their
business on a world-wide basis, that their sales and marketing prospects are
for continued expansion into world markets and that, therefore, the territorial
and time limitations set forth in Section 6.4 are reasonable and properly
required for the adequate protection of the business of the Company and its
subsidiaries. If a court concludes that any time period and/or the geographic
area specified in Section 6.4 is unenforceable, then the time period will be
reduced by the number of months, or the geographic area will be reduced by the
elimination of the overbroad portion, or both, as the case may be, so that the
restrictions may be enforced in the geographic area and for the time to the
fullest extent permitted by law. 

          6.6          Remedies.
It is intended that, in view of the nature of the Company’s business, the
restrictions contained in Sections 6.1 through 6.4 (including, without
limitation, the restrictions that are specifically incorporated herein by
reference), are considered reasonable and necessary to protect the Company’s
legitimate business interests and that any violation of these restrictions
would result in irreparable injury to the Company. In the event of a breach or
threatened breach by Executive of any restrictive covenant contained herein,
the Company shall be entitled to a temporary restraining order and injunctive
relief. Nothing contained herein shall be construed as prohibiting the Company
from pursuing any other remedies available to it for any breach or threatened
breach, including, without limitation, the restoration and other remedies
specified in this Agreement and/or the recovery of money damages, attorneys’
fees, and costs. These covenants and restrictions shall each be construed as
independent of any other provisions in the Agreement, and the existence of any
claim or cause of action by Executive against the Company, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of such covenants and restrictions. 

          6.7          Severability.
Should a court determine that any paragraph or sentence, or any portion of a
paragraph or sentence of this Section 6 is invalid, unenforceable, or void,
this determination shall not have the effect of invalidating or validating the
remainder of the paragraph, sentence or any other provision of this Section 6.
Further, 

- 10 -

it is intended that the court should construe
this Section 6 by limiting and reducing it only to the extent necessary to be
enforceable under then applicable law. 

	
  

 	
  

 
	
  

 	
           7.          Recoupment
 Upon Certain Restatement of Financial Statements. If the Company is
 required to restate all or a portion of its financial statement(s) for any
 period following commencement of employment by the Executive, and if the
 Board or the Compensation Committee determines that such restatement is
 attributable in whole or in significant part to fraud, negligence, or
 intentional misconduct on the part of Executive or known to Executive, then,
 subject to applicable law, the Board or the Compensation Committee, acting in
 its discretion, may require Executive to reimburse the Company for the amount
 of any incentive compensation paid to him, cause the cancellation of
 outstanding equity compensation awards, and seek reimbursement of any gains
 otherwise realized by him in respect of the exercise or settlement of any
 such awards if and to the extent that (a) the amount of such incentive
 compensation was or will be based upon the achievement of certain financial
 results that were subsequently reduced due to such restatement, and (b) the
 amount of the incentive compensation that was, would have been or would be
 paid or provided to Executive if the financial results had been properly
 reported would have been lower than the amount actually paid or provided. The
 provisions of this section do not include the Initial Equity Award described
 in Section 2.4. 

 
	
  

 	
  

 
	
  

 	
           8.          Assignment.
 The services and duties to be performed by Executive hereunder are personal
 and may not be assigned. This Agreement shall be binding upon and inure to
 the benefit of the Company, its successors and assigns and Executive and his
 heirs and representatives. Company may assign this Agreement to a successor
 in interest, provided that any such assignee affirmatively adopts and agrees
 to fulfill all obligations to Executive hereunder. 

 
	
  

 	
  

 
	
  

 	
           9.          Legal
 Fees to Enforce Rights after a Change in Control. If, following a Change
 in Control, the Company fails to comply with any of its obligations under
 this Agreement or the Company takes any action to declare this Agreement void
 or unenforceable or institutes any litigation or other legal action designed
 to deny, diminish or to recover from Executive (or Executive’s beneficiary)
 the payments and benefits intended to be provided, then Executive (or
 Executive’s beneficiary, as the case may be) shall be entitled to select and
 retain counsel at the expense of the Company to represent Executive (or
 Executive’s beneficiary) in connection with the good faith initiation or
 defense of any litigation or other legal action, whether by or against the
 Company or any director, officer, stockholder or other person affiliated with
 the Company or any successor thereto in any jurisdiction. 

 
	
  

 	
  

 
	
  

 	
           10.          No
 Impediment to Agreement. Executive covenants that, except as otherwise
 disclosed herein, he is not, as of the date hereof, and will not be, during
 the period of his employment hereunder, employed under contract, oral or
 written, by any other person, firm or entity, and is not and will not be
 bound by the provisions of any other restrictive covenant that may limit the
 Executive from performing his duties for the Company and is not aware of any
 circumstance or 

 

- 11 -

	
  

 	
  

 
	
  

 	
 condition (legal, health or otherwise),
 which would constitute an impediment to, or restriction upon, his ability to
 enter into this Agreement and to perform the duties and responsibilities of
 his employment hereunder. 

 
	
  

 	
  

 
	
  

 	
           11.          Arbitration.
 Except as otherwise specifically provided herein (relating to the Company’s
 right to obtain injunctive or other equitable relief from a court) or
 Enforcement Rights by Executive after a Change of Control (as described in
 Paragraph 9 above), any claim or controversy arising out of or relating to
 this Agreement or the breach hereof shall be resolved exclusively by
 arbitration. Any such arbitration will be administered in accordance with the
 Employment Dispute Resolution Rules of the American Arbitration Association
 (“AAA”), in the Hartford, Connecticut metropolitan area before an experienced
 employment law arbitrator licensed to practice law in that jurisdiction who
 has been selected in accordance with such Rules. Each party may be
 represented by counsel of its or his own choosing and at its or his own
 expense; provided, however, that attorneys’ fees and costs may be awarded to
 a prevailing party in the discretion of the arbitrator. The arbitrator’s
 award will be enforceable, and a judgment may be entered thereon, in a
 federal or state court of competent jurisdiction in the state where the
 arbitration was held. The decision of the arbitrator will be final and
 binding. 

 
	
  

 	
  

 
	
  

 	
           12.          Governing
 Law. This Agreement shall be governed by the laws of the State of
 Connecticut, excluding its conflict of law rules. 

 
	
  

 	
  

 
	
  

 	
           13.          Indemnification;
 D&O Insurance. To the extent permitted by its Certificate of
 Incorporation and By-laws and subject to applicable law, the Company will
 indemnify, defend and hold Executive harmless from and against any claim,
 liability or expense (including reasonable attorneys’ fees) made against or
 incurred by him as a result of his employment with the Company or any
 subsidiary or other affiliate of the Company, including service as an officer
 or director of the Company or any subsidiary or other affiliate of the
 Company. The Company shall cover Executive under directors and officers
 liability insurance both during and, while potential liability exists, after
 the Term, in the same amount and to the same extent as the Company covers its
 other officers and directors, which amount will be determined in consultation
 with the Executive and will be intended to provide sufficient coverage
 against all potential liability of the covered individuals, subject to
 applicable law. 

 
	
  

 	
  

 
	
  

 	
           14.          Withholding.
 All payments made by Company to or for the benefit of Executive in connection
 with his employment shall be subject to applicable tax withholding. 

 
	
  

 	
  

 
	
  

 	
           15.          Severability.
 In the event that any provision or portion of this Agreement shall be
 determined to be invalid or unenforceable for any reason, in whole or in
 part, the remaining provisions of this Agreement shall be unaffected thereby
 and shall remain in full force and effect to the fullest extent permitted by
 law. 

 

- 12 -

	
  

 	
  

 
	
  

 	
           16.          Counterparts.
 This Agreement may be executed in separate counterparts, each of which will
 be an original and all of which taken together shall constitute one and the
 same agreement, and any party hereto may execute this Agreement by signing
 any such counterpart. 

 
	
  

 	
  

 
	
  

 	
           17.          Amendment
 or Waiver. No provision of this Agreement may be modified, amended,
 waived or terminated except by an instrument in writing signed by the parties
 to this Agreement. No course of dealing between the parties will modify,
 amend, waive or terminate any provision of this Agreement or any rights or
 obligations of any party under or by reason of this Agreement. No delay on
 the part of the Company in exercising any right hereunder shall operate as a
 waiver of such right. No waiver, express or implied, by a party of any right
 or any breach by the other party shall constitute a waiver of any other right
 of such party or breach by such other party. 

 
	
  

 	
  

 
	
  

 	
           18.          Notices.
 Any notice given to a party shall be in writing and shall be deemed to have
 been given when delivered personally or sent by certified or registered mail,
 postage prepaid, return receipt requested, or express mail to the recipient
 at his or its last known address. 

 
	
  

 	
  

 
	
  

 	
           19.          Entire
 Agreement. This Agreement contains the entire understanding between the
 parties hereto with respect to the subject matter hereof and supersedes any
 prior and/or contemporaneous understandings, agreements or representations,
 written or oral, relating to the subject matter hereof. 

 

[SIGNATURE
PAGE FOLLOWS]

- 13 -

	
  

 	
  

 
	
  

 	
 IN WITNESS
 WHEREOF, the parties have executed this Agreement on the date first above
 written. 

 

	
  

 	
  

 	
  

 
	
  

 	
 ZYGO CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ BRUCE W. WORSTER

 
	
  

 	
  

 	 

 
	
  

 	
 Name: Bruce W. Worster

 
	
  

 	
 Title:    Chair, Board
 of Directors

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
    /s/ CHRIS KOLIOPOULOS

 
	
  

 	 

 
	
  

 	
 Dr. Chris L. Koliopoulos

 

EXHIBIT A

ZYGO CORPORATION

2002 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

          AGREEMENT,
made as of the __ day of ______________, 201_, by and between Zygo Corporation,
a Delaware corporation (the “Company”), and _________________________ (the
“Optionee”). 

W
I T N E S S E T H:

          WHEREAS,
pursuant to the Zygo Corporation 2002 Equity Incentive Plan (the “Plan”), the
Company desires to grant to the Optionee, and the Optionee desires to accept,
an option to purchase shares of common stock, $.10 par value, of the Company
(the “Common Stock”) upon the terms and conditions set forth in this Agreement.

          NOW,
THEREFORE, the parties hereto agree as follows: 

          1.          The
Company hereby grants to the Optionee an option to purchase ______ shares of
Common Stock at an exercise price per share of $_______. This option is not
intended to be treated as an “incentive stock option” within the meaning of Section
422 of the Internal Revenue Code of 1986, as amended. 

          2.          Notwithstanding
anything to the contrary contained herein, unless sooner terminated, this
option shall expire if and to the extent it is not exercised within ten years
from the date hereof. 

          3.          Subject
to the provisions hereof and Optionee’s Executive Employment Agreement dated
January 18, 2010 (the “Employment Agreement”), this option shall become
exercisable in accordance with the following schedule based upon the period of
the Optionee’s continuous employment or other service with the Company or any
one or more of its subsidiaries, affiliates or associated entities
(collectively with the Company, the “Company Group”) following the date hereof:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Period of

 Continuous

 Service

 	
  

 	
  

 	
 Incremental

 Percentage

 Exercisable

 	
  

 	
 Cumulative

 Percentage

 Exercisable

 
	 

 	
  

 	
  

 	 

 	
  

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Less than 1 year

 	
  

 	
 0

 	
 %

 	
  

 	
 0

 	
 %

 
	
 1 year

 	
  

 	
 25

 	
 %

 	
  

 	
 25

 	
 %

 
	
 2 years

 	
  

 	
 25

 	
 %

 	
  

 	
 50

 	
 %

 
	
 3 years

 	
  

 	
 25

 	
 %

 	
  

 	
 75

 	
 %

 
	
 4 years or more

 	
  

 	
 25

 	
 %

 	
  

 	
 100

 	
 %

 

          4.          This
option may be exercised by written notice to the Company stating the number of
full shares with respect to which it is being exercised, and accompanied by
payment of the exercise price for the number of shares so purchased and payment
or 

1

arrangement for payment of any federal, state
or local income or other taxes incurred by reason of the exercise and required
to be withheld by the Company. The exercise price shall be payable by cash or
check or, if the Committee in its sole and absolute discretion so permits,
payment may also be made in whole or in part (a) by means of any cashless
exercise procedure approved by the Committee, if the Common Stock is publicly
traded, (b) in the form of unrestricted shares of Common Stock which, (i) in
the case of shares acquired upon exercise of an option, have been owned by the
Optionee for more than six (6) months on the date of surrender, and (ii) have a
Fair Market Value on the date of surrender equal to the aggregate exercise
price of the shares of Common Stock as to which such option shall be exercised,
(c) in any other form of consideration approved by the Committee and permitted
by applicable law, or (d) in any combination of the foregoing. 

          5.          Upon
a termination of the Optionee’s employment or other service with the Company
Group for any reason other than a termination by the Company Group for Cause
(as defined in the Employment Agreement), then (a) that portion of this option,
if any, which is not then exercisable shall terminate, and (b) unless sooner
terminated under the terms hereof, that portion of this option, if any, which
is then exercisable shall remain exercisable for the ninety (90) day period
commencing on the date of such termination and, to the extent not exercised during
such period, shall thereupon terminate. If, pursuant to the Employment
Agreement, the Optionee’s employment is terminated for any reason other than by
the Company for Cause or by the Optionee without Good Reason (as defined in the
Employment Agreement), Optionee shall become fully vested in the option. If
Optionee’s employment is terminated by the Company for Cause (or if such
termination occurs at a time when grounds for a termination for Cause exist),
this option (whether or not otherwise exercisable) shall thereupon terminate
and cease to be exercisable. 

          6.          The
Company’s obligation to sell and deliver shares upon the exercise of this
option is subject to such compliance with federal and state laws, rules and
regulations applying to the authorization, issuance or sale of securities as
the Committee deems necessary or advisable. The Company shall be entitled to
postpone the time of delivery of certificates for shares of its Common Stock
for such additional time as the Company shall deem necessary or desirable to
enable it to (a) file a registration statement under the Securities Act of
1933, as amended, with respect to the shares of Common Stock which may be
purchased under this option, or (b) comply with the listing requirements of any
securities exchange upon which the Common Stock may be listed. 

          7.          This
option is not assignable or transferable except upon the Optionee’s death to a
beneficiary designated by the Optionee in a manner acceptable to the Committee
or, in the absence of a surviving designated beneficiary, pursuant to the
Optionee’s will or by the laws of descent and distribution. This option is
exercisable during the Optionee’s lifetime only by the Optionee. In the event
of any attempt by the Optionee to alienate, assign, pledge, hypothecate or
otherwise dispose of this option or any right hereunder, except as provided for
herein, or in the event of any levy of any attachment, execution or similar
process upon the rights or interests hereby conferred, the Company may
terminate this option by notice to the Optionee and it shall thereupon 

2

become null and void. 

          8.          Nothing
contained in this Agreement shall confer upon the Optionee any right with
respect to the continuation of the Optionee’s employment or other service with
any one or more of the Company Group or interfere in any way with the right of
the Company Group at any time to terminate such employment or other service or
to increase or decrease, or otherwise adjust, the other terms and conditions of
the Optionee’s employment or other service with the Company Group. 

          9.          Neither
the Optionee nor any person entitled to exercise the Optionee’s rights in the
event of death shall have any of the rights of a stockholder with respect to
the shares subject to this option, except to the extent that certificates for
such shares shall have been issued upon the exercise of this option as provided
for herein. 

          10.          This option is granted pursuant to the Plan and is governed by
the terms and conditions of the Plan, including, without limitation, the
provisions of Section 11 of the Plan. The Optionee agrees to be bound by the
terms and conditions of this Agreement and the Plan (a copy of which the
Optionee acknowledges receipt of) and any future amendments to the Plan which
do not adversely affect the Optionee’s rights hereunder. The provisions of the
Plan are hereby incorporated by reference and shall govern if and to the extent
that there are inconsistencies between the provisions of the Plan and this
Agreement. In the event that any controversy shall arise with respect to the
nature, scope or extent of any one or more rights conferred by this Agreement,
the determination of the Committee of the rights of the Optionee shall be final,
binding and conclusive upon the Optionee and any other person who shall assert
any right based upon this Agreement. 

          11.          This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
regard to its principles of conflicts of law. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and may
not be modified, other than as provided in the Plan, except by written
instrument executed by the parties. 

          IN WITNESS WHEREOF, this Agreement has been
executed as of the date first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 ZYGO CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 OPTIONEE

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	 

 

3

EXHIBIT B
 Form of Release

          In
consideration of the premises and the payments and benefits to be made or
provided by the Zygo Corporation (the Company”) to Dr. Chris Koliopoulos (the
“Executive”) under this Release and the provisions of Section 4 of the
Employment Agreement between the parties [to which this Exhibit is attached]
(the “Employment Agreement”) relating to the termination of Executive’s
employment with the Company, the Executive, for the Executive and for the
executors and administrators of the Executive’s estate, and the Executive’s
heirs, successors and assigns, hereby releases and forever discharges the
Company and its officers, directors, employees and stockholders from any and
all claims, actions, causes of action, suits, sums of money, debts, dues,
accounts, reckonings, bonds, bills, covenants, contracts, controversies,
agreements, promises, demands or damages of any nature whatsoever or by reason
of any matter, cause or thing regardless of whether known or unknown at
present, which against the Company or any of its officers, directors, employees
or stockholders Executive ever had, now has or may have arising out of or
relating to any transaction, dealing, relationship, conduct, act or omission,
or any other matters or things occurring or existing at any time prior to and
including the date of this Release (collectively defined herein as “Claims”).
This Release includes, but is not limited to, all Claims the Executive might have
under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§2000e,
et. seq.; 42 U.S.C. §§1981, et. seq.; the Americans with Disabilities
Act, 29 U.S.C. §§2000e, et. seq.;
the Age Discrimination in Employment Act; the Older Workers Benefits Protection
Act; the federal Family and Medical Leave Act; Section 451 et. seq.; similar Connecticut laws, and
any and all statutory and common law causes of action for defamation; slander; slander per
se; defamation per se;
false light; tortious interference with prospective business relationships;
assault; sexual assault; battery; sexual harassment; sexual discrimination;
hostile work environment; discrimination; retaliation; workers’ compensation
retaliation; wrongful termination; intentional infliction of emotional
distress; breach of a duty or obligation of any kind or description, including
any implied covenant of good faith and fair dealing; and for breach of contract
or any tort whatsoever, as well as any expenses or attorney’s fees associated
with such Claims. The parties acknowledge that this Release does not either
affect the rights and responsibilities of the Equal Employment Opportunity
Commission to enforce the Age Discrimination in Employment Act, or justify
interfering with the protected right of an employee to file a charge or
participate in an investigation or proceeding conducted by the Equal Employment
Opportunity Commission under the Age Discrimination in Employment Act. In the
event the Equal Employment Opportunity Commission commences a proceeding
against the Company in which Executive is a named party, the Executive agrees
to waive and forego any monetary claims which may be alleged by the Equal
Employment Opportunity Commission to be owed to Executive. Notwithstanding the
foregoing, nothing in the provisions of this Release shall act as a release by
the Executive of any Claims against the Company with respect to (i) any amounts
or benefits to which the Executive may become entitled to receive under the
Employment Agreement after the date hereof, including the right to indemnity
referenced therein, (ii) the Executive’s rights under and in accordance with
the terms of any employee 

1

benefit plan in which Executive participates, and (iii) any Claims
arising with respect to acts, events or occurrences taking place after the date
of this Release. 

          The Company
has advised the Executive in writing to consult with an attorney prior to
executing this Release. By executing this Release, the Executive acknowledges
that (a) the Executive has been provided an opportunity to consult with an
attorney or other advisor of the Executive’s choice regarding the terms of this
Release, (b) Executive has been given twenty-one (21) days in which to consider
whether the Executive wishes to enter into this Release, (c) Executive has
elected to enter into this Agreement knowingly and voluntarily, (d) Executive’s
waiver of rights or claims is in exchange for the good and valuable
consideration herein; and (e) if Executive does so within fewer than twenty-one
(21) days from receipt of this Release, Executive has knowingly and voluntarily
waived the remaining time. This Release will become effective, enforceable and
irrevocable on the eighth day after the date on which it is executed by the
Executive (the “Effective Date”). During the seven-day period prior to the
Effective Date, the Executive may revoke this Release by delivering a written
notice of revocation to the Company. 

2

EXHIBIT C

FORM OF NONDISCLOSURE AND ASSIGNMENT 

OF INVENTIONS AGREEMENT 

          This
Nondisclosure and Assignment of Inventions Agreement (the “Agreement”) is
entered into by and between Zygo Corporation, a Delaware Corporation, and its
subsidiaries, affiliates and divisions, (hereinafter referred to collectively
as the “Company”), and ________________, (hereinafter the “Employee”). 

          For
the good and valuable consideration of the Employee’s employment by the
Company, and his/her continued eligibility for employment, bonuses, raises and
any other employee benefits that may be provided to the Employee by the Company
from time to time, the employee agrees as follows: 

	
  

 	
  

 
	
 1.

 	
 Employment Period.

 

          The
Employee understands and agrees that this Agreement is not a contract of
employment and does not give the Employee any rights to employment with the
Company or to any particular terms or conditions of such employment. The
Employee further understands and agrees that his employment at the Company is
“at-will” and is not for any specified term and that either the Company or the
Employee may terminate the employment relationship with or without cause at any
time. In the event that the Employee’s employment relationship with the Company
is terminated, whether voluntarily or involuntarily, the Employee’s
restrictions and obligations under this Agreement nevertheless shall survive
such termination. 

	
  

 	
  

 
	
 2.

 	
 Activities During
 Employment.

 

          The
Employee represents and warrants that he/she is presently under no obligation
to any other employer, person or entity that would limit, restrict or otherwise
affect his/her ability to perform his/her job duties for the Company.
Furthermore, the Employee agrees that his/her employment with the Company will not
require the disclosure or use of any confidential information, “know-how” or
trade secrets belonging to prior employers or other persons or entities, nor
will it violate the terms of any non-competition, non-disclosure,
non-solicitation, assignment of inventions or other similar agreement(s) to
which he/she may be a party. 

          The
Employee represents and warrants that he/she has not brought and agrees that
he/she will not bring to the Company or use in the performance of his/her
employment responsibilities at the Company any materials, documents, trade
secrets, or confidential information of a former employer or any other person
or entity which are of a confidential nature or which are not generally
available to the public. The Employee agrees that he/she has not and will not
disclose to the Company or seek to induce the Company to use any such
confidential information, materials, documents or trade secrets. 

          The
Employee agrees to inform the Company of any outside work or business activities
that he/she engages in while employed by the Company, and further agrees 

1

not to engage in any outside work or business activities that may
interfere with his/her job performance or that may serve business interests
that compete with the Company’s business interests. 

	
  

 	
  

 
	
 3.

 	
 Nondisclosure of
 Confidential Information.

 

          The
Employee agrees that he/she will not directly or indirectly disclose or use at
any time any knowledge, information, or material relating to any of the
Company’s business, customers, machines, designs, apparatus, systems, methods
of conducting any part of its business or the like, “know-how” or trade
secrets, which may become known to the Employee by reason of his/her employment
or otherwise and which are not generally available to the public, except as may
be reasonably necessary to the performance of his/her assigned duties as an
employee of the Company. 

          The
Employee further agrees that all records, files, documents, computer disks and
other materials, or copies thereof, containing such information shall be and
remain the sole property of the Company, shall not be removed from the
Company’s premises or otherwise used except for bona fide business purposes and
shall be promptly returned to the Company upon request at any time during
employment and immediately upon termination of employment with the Company,
whether voluntary or involuntary. These nondisclosure obligations shall remain
in effect during the Employee’s entire period of employment and at all times
after termination of employment, whether voluntary or involuntary. 

	
  

 	
  

 
	
 4.

 	
 Assignment of
 Inventions.

 

          The
Employee represents that he/she has identified in the Appendix below all
inventions and improvements which: (a) have been made, developed, perfected,
devised, conceived or acquired by the Employee, either solely or jointly with
others prior to his/her employment by the Company (whether or not they have
received a patent or are subject to application for patent); and which (b) are
relevant to the Company’s business activities. 

          The
Employee agrees to promptly and completely disclose in writing to such person
as the Company may designate all ideas, developments, inventions and
improvements heretofore or hereafter made, developed, perfected, devised,
conceived or acquired by the Employee either solely or jointly with others
during the Employee’s employment by the Company and within ninety (90) days
after the termination thereof, whether or not during regular working hours,
relating in any way to the actual or anticipated business, research,
developments or products of the Company; and if so requested by the Company, to
give, grant, assign, transfer and convey to the Company or any entity
designated by it, all rights, title and interest in and to all such ideas,
developments, inventions and improvements. 

          In
accordance with Cal. Lab. Code §§ 2870 to 2872, the terms of this assignment of
inventions provision shall not apply to an invention that the Employee
developed entirely on his or her own time without using the Company’s
equipment, supplies, 

2

facilities, or trade secret information
except for those inventions that either: (1) Relate at the time of conception
or reduction to practice of the invention to the Company’s business, or its
actual or demonstrably anticipated research or development; or (2) Result from
any work performed by the Employee for the Company. Furthermore,
confidentiality with respect to the disclosure of any inventions reported by
the Employee will be preserved to the maximum extent possible. The Company will
also provide a review process for the Employee to determine such issues as may
arise in connection with this assignment of inventions provision. 

          The
Employee agrees, at the request and expense of the Company, to make, execute
and deliver any and all papers, documents, and instruments, including
applications for patents in any and all countries and reissues and extensions
thereof, and to assist and cooperate (without expense to the Employee) with the
Company or its representative in any controversy or legal proceedings relating
to said ideas, developments, inventions and improvements, and the patents which
may be procured thereon. The Company does not assume any responsibility for the
prosecution or defense of any application for patents in any countries arising
from ideas, developments, inventions and improvements disclosed to the Company
pursuant to this Agreement. 

          The
Employee’s obligations hereunder shall continue beyond the termination of
his/her employment, but the Company shall compensate the Employee at a
reasonable rate after termination for time spent by him/her at the Company’s
request providing assistance. In the event that the Company is unable after
reasonable effort to secure the Employee’s signature on any document(s) needed
to apply for or prosecute any intellectual property rights relating to any such
ideas, developments, inventions and improvements, the Employee hereby
irrevocably designates the Company and its duly authorized representative as
his/her agent to act on his/her behalf to execute and file any applications and
to do all other lawfully permitted acts to further the issuance or prosecution
of intellectual property rights with the same legal force and effect as if executed
by the Employee. 

	
  

 	
  

 
	
 5.

 	
 Complete
 Agreement.

 

          This
Agreement contains the entire understanding and agreement of the parties with
respect to the matters herein and shall supersede and prevail over all other
prior agreements, understandings or representations by or between the parties
whether oral or written regarding these matters. 

          The
provisions of this Agreement will be deemed severable, and if any part of any
provision is held to be illegal, void, voidable, invalid, nonbinding, or
unenforceable in its entirety or partially or as to either party, for any
reason, such provision may be changed or construed by the appropriate judicial
body, consistent with the intent of the parties hereto, to the extent
reasonably necessary to make the provision, as so changed or construed, legal,
valid, binding, and enforceable. If any provision of this Agreement is held to
be illegal, void, voidable, invalid, nonbinding, or unenforceable in its
entirety or partially or as to either party, for any reason, and if such
provision cannot 

3

be changed or construed consistent with the
intent of the parties hereto to make it fully legal, valid, binding, and
enforceable, then such provision will be stricken from this Agreement, and the
remaining provisions of this Agreement will not in any way be affected or
impaired, but will remain in full force and effect. 

	
  

 	
  

 
	
 6.

 	
 Assignment.

 

          Neither
this Agreement nor any benefits hereunder are assignable by the Employee, but
the terms and provisions hereof shall extend to the benefit of the Company’s
successors and assigns. 

	
  

 	
  

 
	
 7.

 	
 Waiver and
 Modification.

 

          No
waiver or modification hereof shall be binding unless in writing and subscribed
by the parties hereto. 

4

ZYGO CORPORATION 

NONDISCLOSURE AND ASSIGNMENT OF INVENTIONS AGREEMENT 

USA

APPENDIX 

          The
following is a complete list of all inventions and improvements which (a) have
been made, developed, perfected, devised, conceived or acquired by me, either
solely or jointly with others prior to my employment by Zygo Corporation
(whether or not they have received a patent or are subject to application for
patent); and which (b) are relevant to Zygo’s business activities. 

                    _________
None 

	
  

 	
  

 
	
 1.

 	
 _____________________________________________________________________________________________
 

 
	
  

 	
  

 
	
 2.

 	
 _____________________________________________________________________________________________
 

 
	
  

 	
  

 
	
 3.

 	
 _____________________________________________________________________________________________
 

 
	
  

 	
  

 
	
 4.

 	
 __________________________________________________________________________________________
 

 

Acknowledging receipt of a copy of this
Agreement and knowingly and voluntarily agreed upon by: 

	
  

 	
  

 	
  

 
	
 _______________________________

 	
  

 	
 ________________________________

 
	
 Date

 	
  

 	
 Signature of
 Employee

 
	
  

 	
  

 	
  

 
	
 _______________________________

 	
  

 	
 ________________________________

 
	
 Zygo
 Representative

 	
  

 	
           Name
 of Employee (Print)

 

5

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