Document:

Exhibit 4.1

 

OWENS-ILLINOIS GROUP, INC.

OWENS-BROCKWAY GLASS CONTAINER INC.

OI PLASTIC PRODUCTS FTS INC.

UNITED GLASS LIMITED

OWENS ILLINOIS (AUSTRALIA) PTY LIMITED

ACI OPERATIONS PTY LIMITED

AZIENDE VETRARIE INDUSTRIALI
RICCIARDI – AVIR S.P.A.

O-I CANADA CORP.

BSN GLASSPACK, S.A.

 

FIRST AMENDMENT TO THIRD AMENDED

AND RESTATED SECURED CREDIT AGREEMENT

 

This FIRST AMENDMENT
TO THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT (this “First  Amendment”)
is dated as of June 13, 2005 and entered into by and among OWENS-ILLINOIS GROUP, INC., a Delaware
corporation (“Company”), OWENS-BROCKWAY GLASS CONTAINER INC., a
Delaware corporation (“Owens-Brockway”),
OI PLASTIC PRODUCTS FTS INC., a
Delaware corporation (“O-I Plastic”),
UNITED GLASS LIMITED, a limited liability
company incorporated under the laws of England and Wales (registered number
526983) (“United Glass”), OWENS ILLINOIS (AUSTRALIA) PTY LIMITED, a
limited liability company organized under the laws of Australia (“O-I Australia”), ACI OPERATIONS PTY LIMITED, a limited liability company
organized under the laws of Australia (“ACI”),
AZIENDE VETRARIE INDUSTRIALI RICCIARDI – AVIR
S.P.A., a joint stock company organized under the laws of Italy (“Avir”), BSN
GLASSPACK, S.A., a French Societe anonyme (“BSN”),
O-I CANADA CORP., a Nova Scotia
corporation (“O-I Canada,” together with Owens-Brockway, O-I
Plastic, United Glass, O-I Australia, ACI, AVIR and BSN, “Borrowers”),
and OWENS-ILLINOIS GENERAL, INC., a
Delaware corporation (“O-I General”),
as Borrowers’ Agent (in such capacity “Borrowers’
Agent”), THE LENDERS LISTED ON THE
SIGNATURE PAGES HEREOF (each individually a “Lender”
and collectively, “Lenders”), DEUTSCHE BANK TRUST
COMPANY AMERICAS (“DB”),
as Administrative Agent for Lenders (“Administrative Agent”),
and DEUTSCHE BANK AG LONDON, as UK
Administrative Agent for Lenders (“UK Administrative Agent”), and is made with reference to
that certain Third Amended and Restated Secured Credit Agreement, dated as of October 7,
2004, by and among the Company, the Borrowers,
O-I General, the Lenders party
thereto, the Administrative Agent and the UK Administrative Agent (the “Credit Agreement”).  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITALS

 

WHEREAS, Company,
Borrower’s Agent and Borrowers desire to amend the Credit Agreement on, and
subject to, the terms, conditions and agreements set forth herein;

 

NOW, THEREFORE, in consideration
of the premises and the agreements, provisions and covenants herein contained,
the parties hereto agree as follows:

 

 

Section 1.  AMENDMENTS TO THE CREDIT AGREEMENT

 

1.1          Amendments to Subsection 1.1:
Certain Defined Terms.

 

A.  The
defined term “Applicable
Base Rate Margin” in subsection 1.1 of the Credit Agreement is
hereby amended by deleting the word “or” where it appears immediately after the
first use of the words “Term Loans” therein and inserting in its place “0.75%
per annum, and for any” and deleting the second table contained therein.

 

B.  The
defined term “Applicable
Euro Margin” in subsection 1.1 of the Credit Agreement is hereby
amended by inserting “1.75% per annum, and for any” immediately after the first
use of the words “Term Loans” therein and deleting the second table contained
therein.

 

C.  Subsection 1.1
of the Credit Agreement is hereby further amended by adding to such subsection the
following definitions which shall be inserted in proper alphabetical order.

 

“Applicable First Amendment
Effective Date” means (i) with respect to the Tranche A1 Term
Loans, the Tranche A1 Amendment Effective Date, (ii) with respect to the
Tranche B1 Term Loans, the Tranche B1 Amendment Effective Date, (iii) with
respect to the French Tranche C1 Term Loans, the French Tranche C1 Amendment
Effective Date, and (iv) with respect to the French Tranche C2 Term Loans,
the French Tranche C2 Amendment Effective Date.

 

“First Amendment”
means the First Amendment to this Agreement dated June 13, 2005.

 

“First Amendment
Effective Date” has the meaning assigned to that term in Section 2.1
of the First Amendment.

 

 “French
Tranche C1 Amendment Effective Date” has the meaning assigned
to that term in Section 2.4 of the First Amendment.

 

“French Tranche C2 Amendment Effective Date”
has the meaning assigned to that term in Section 2.5 of the First
Amendment.

 

“Spanish
Disposition” has the meaning assigned to that term in subsection 6.7(iv).

 

“Tranche A1 Amendment Effective Date”
has the meaning assigned to that term in Section 2.2 of the First
Amendment.

 

“Tranche B1 Amendment Effective Date”
has the meaning assigned to that term in Section 2.3 of the First
Amendment.

 

2

 

1.2          Matters related to Proposed Merger
of BSN Glasspack Espana, S.A. with Vidrieria Rovira, Srl.

 

A.  Amendment
to Subsection 6.7: Restriction on Fundamental Changes; Assets Sales.  Section 6.7(iv) is hereby amended
and restated in its entirety to read as follows:

 

“(iv)        BSN Glasspack Espana, S.A. may be transferred
to or combined with, by merger, sale or otherwise, Vidrieria Rovira, Srl (the “Spanish Disposition”);”

 

B.  Consent
to Release of BSN Glasspack Espana, S.A. 
In order to permit the Spanish Disposition, Requisite Lenders hereby
consent to (a) the release by Administrative Agent of BSN Glasspack
Espana, S.A. as an Offshore Guarantor, and (b) the release by
Administrative Agent of the Liens granted pursuant to the Collateral Documents by
BSN Glasspack Espana, S.A. and the Liens granted by BSN on the capital stock of
BSN Glasspack Espana, S.A and the termination of the applicable Collateral
Documents.

 

Section 2.  CONDITIONS TO EFFECTIVENESS

 

2.1          Section 1 of
this First Amendment (other than Sections 1.1A and 1.1B) shall become effective
only upon the satisfaction of all of the conditions precedent (the date of satisfaction
of all such conditions precedent being referred to herein as the “First Amendment Effective Date”) set forth in this Section 2.1.

 

A.  Representations
and Warranties.  On
the First Amendment Effective Date, (a) after giving effect to Section 1
hereof, the representations and warranties contained in Section 3 hereof
shall be true and correct as of such date, as though made on and as of such
date; (b) after giving effect to Section 1 hereof, no Potential Event
of Default or Event of Default shall then exist; and (c) the Company shall
deliver to Administrative Agent a certificate signed by a Responsible Officer
of Company confirming the foregoing.

 

B.  Corporate
Documents.  On or
before the First Amendment Effective Date, Company and each Borrower shall deliver
to Lenders (or to Administrative Agent for Lenders, with sufficient originally
executed copies as requested by the Administrative Agent), with respect to
Company and each Borrower, a Secretary’s Certificate, in form and substance
reasonably satisfactory to Administrative Agent and dated the First Amendment
Effective Date, certifying that (1) the Organizational Documents, (2) the
resolutions of the Governing Body and (3) the signature and incumbency
certificate of for the Company and each Borrower, in each case, as delivered to
Administrative Agent on the Third Restatement Date, are in full force and
effect and have not been amended or modified in any respect since the Third Restatement
Date and (4) attached thereto is a true and correct copy of the resolutions
of the Governing Body of such Person authorizing the execution and delivery of
the First Amendment.

 

C.  Amendment.  Administrative Agent shall have received from
(i) Requisite Lenders, and (ii) Company
and the Borrowers, (A) a counterpart of this First Amendment signed on
behalf of such party or written evidence satisfactory to Administrative Agent
(which may include telecopy transmission of a signed signature page of
this First Amendment) that such party has signed a counterpart of this First Amendment,
and (B) a counterpart of any amendment to the Collateral Documents
necessary or advisable in the reasonable judgment of the Collateral Agent to
effectuate the transactions contemplated by this First Amendment signed on
behalf of

 

3

 

such party or written
evidence reasonably satisfactory to Administrative Agent that such party has
signed such counterpart.

 

D.  Fees.  Company shall have paid all reasonable fees
and expenses of Administrative Agent (including, without limitation, the
reasonable fees and disbursements of counsel) in connection with this First
Amendment and the documents and transactions related hereto.

 

E.   Guarantor
Acknowledgement. 
On or before the First Amendment Effective Date, Company shall cause
each Guarantor to deliver to Administrative Agent a Guarantor Acknowledgement
substantially in the form of Annex A attached hereto (except for
Guarantor Acknowledgements for VMC and
Group Renforte, which Company shall deliver within seven days of the First
Amendment Effective Date).

 

2.2          Sections 1.1A and
1.1B of this Amendment shall become effective with respect to the Tranche A1
Term Loans only upon the satisfaction of all of the following conditions
precedent (the date on which such conditions precedent are satisfied being the “Tranche A1 Amendment Effective Date”): (a) the First
Amendment Effective Date shall have occurred, and (b) each Lender with Tranche
A1 Term Loan Exposure shall have executed and delivered a counterpart to this
First Amendment.

 

2.3          Sections 1.1A and
1.1B of this Amendment shall become effective with respect to the Tranche B1
Term Loans only upon the satisfaction of all of the following conditions
precedent (the date on which such conditions precedent are satisfied being the “Tranche B1 Amendment Effective Date”): (a) the First
Amendment Effective Date shall have occurred, and (b) each Lender with
Tranche B1 Term Loan Exposure shall have executed and delivered a counterpart
to this First Amendment.

 

2.4          Sections 1.1A and
1.1B of this Amendment shall become effective with respect to the French
Tranche C1 Term Loans only upon the satisfaction of all of the following
conditions precedent (the date on which such conditions precedent are satisfied
being the “French Tranche C1 Amendment Effective Date”):
(a) the First Amendment Effective Date shall have occurred, and (b) each
Lender with French Tranche C1 Term Loan Exposure shall have executed and
delivered a counterpart to this First Amendment.

 

2.5          Sections 1.1A and
1.1B of this Amendment shall become effective with respect to the French
Tranche C2 Term Loans only upon the satisfaction of all of the following
conditions precedent (the date on which such conditions precedent are satisfied
being the “French Tranche C2 Amendment Effective Date”):
(a) the First Amendment Effective Date shall have occurred, and (b) each
Lender with French Tranche C2 Term Loan Exposure shall have executed and
delivered a counterpart to this First Amendment.

 

Section 3.  REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders and Administrative Agent to
enter into this First Amendment and to amend the Credit Agreement in the manner
provided herein, Company and each Borrower represents and warrants to
Administrative Agent and each Lender that the following statements are true,
correct and complete:

 

4

 

A.  Authorization;
Binding Obligations. 
Company, each Borrower and each Guarantor has all requisite organizational
power and authority to enter into this First Amendment and to carry out the
transactions contemplated by, and perform its obligations under the Credit
Agreement as amended by this First Amendment (the “Amended
Agreement”).  The execution,
delivery and performance of this First Amendment and the performance of the
Amended Agreement have been duly authorized by all necessary organizational
action by Company, each Borrower and each Guarantor.  This First Amendment and the Amended
Agreement has been duly executed and delivered by Company, each Borrower and
each Guarantor and are the legally valid and binding obligations of Company,
each Borrower and each Guarantor, enforceable against Company, each Borrower
and each Guarantor in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or limiting creditors’ rights generally
and by equitable principles relating to enforceability.

 

B.  No
Conflict.  The
execution and delivery by Company, each Borrower and each Guarantor of this First
Amendment and the performance by Company, each Borrower and each Guarantor of
the Amended Agreement do not and will not (i) violate any provision of any
material law or any material governmental rule or regulation applicable to
Company, any Borrower or any Guarantor, the Organizational Documents of Company,
any Borrower or any Guarantor, or any order, judgment or decree of any court or
other agency of government binding on Company, any Borrower or any Guarantor, (ii) conflict
with, result in a material breach of or constitute (with due notice or lapse of
time or both) a material default under any Contractual Obligation of Company,
any Borrower or any Guarantor, or (iii) result in or require the creation
or imposition of any Lien under any such Contractual Obligation upon any of the
properties or assets of Company, any Borrower or any Guarantor (other than any
Liens created under any of the Loan Documents).

 

C.  Governmental
Consents.  The
execution and delivery by Company, each Borrower and each Guarantor of this First
Amendment and the performance by Company, each Borrower and each Guarantor of
the Amended Agreement do not and will not require any registration with,
consent or approval of, or notice to, or other action to, with or by, any
federal, state or other governmental authority or regulatory body except any
thereof that have been obtained and are in full force and effect.

 

D.  Incorporation
of Representations. 
Each representation and warranty of Company, each Borrower and each
Guarantor contained in each of the Loan Documents is true and correct in all
material respects on and as of the First Amendment Effective Date to the same
extent as though made on and as of the First Amendment Effective Date except to
the extent such representations and warranties relate to an earlier date, in
which case they were true and correct in all material respects as of such
earlier date.

 

E.   Absence
of Default.  No
event has occurred and is continuing or would result from the execution, delivery
or performance of this First Amendment or the performance of the Amended
Agreement that constitutes or would constitute an Event of Default or a
Potential Event of Default after giving effect to this First Amendment.

 

5

 

Section 4.  MISCELLANEOUS

 

A.  Reference
to and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)            On
and after the First Amendment Effective Date, each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like
import referring to the Credit Agreement, and each reference in the other Loan
Documents to the “Credit Agreement,” “thereunder,” “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement, as amended by this First Amendment.

 

(ii)           Except
as specifically amended by this First Amendment, the Credit Agreement and the
other Loan Documents shall remain in full force and effect and, to the extent
necessary, are hereby ratified and confirmed. 
For the avoidance of doubt, the execution of this First Amendment by
each Lender with French Tranche C1 Term Loan Exposure or each Lender with
French Tranche C2 Term Loan Exposure shall not affect or waive in any way any
provision in any Collateral Document governed by French law stating that it
secures the “Secured Obligations” (as such term is defined in such Collateral
Documents) as they may be amended, modified, novated, supplemented, or restated
from time to time under the Credit Agreement.

 

(iii)          The
execution, delivery and performance of this First Amendment shall not, except
as expressly provided herein, constitute a waiver of any provision of, or
operate as a waiver of any right, power or remedy of Administrative Agent, or any
Lender under, the Credit Agreement or any of the other Loan Documents.

 

B.  Authorization
of the Collateral Agent.

 

The Lenders hereby authorize the Collateral Agent to
execute and deliver any amendment to the Collateral Documents necessary or
advisable in the judgment of the Collateral Agent to effectuate the
transactions contemplated by this First Amendment.

 

C.  Fees
and Expenses.

 

Loan Parties
acknowledge that all costs, fees and expenses as described in subsection 10.3
of the Credit Agreement incurred by the Administrative Agent and its counsel
with respect to this First Amendment and the documents and transactions
contemplated hereby shall be for the account of Loan Parties.

 

D.  Headings.  Section and subsection headings in
this First Amendment are included herein for convenience of reference only and
shall not constitute a part of this First Amendment for any other purpose or be
given any substantive effect.

 

E.   Applicable Law.  THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT

 

6

 

LIMITATION SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

 

F.   Counterparts.  This First Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.

 

7

 

IN
WITNESS WHEREOF, the parties hereto have caused this First
Amendment to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

 

	
   

  	
  OWENS-ILLINOIS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OWENS-BROCKWAY
  GLASS CONTAINER INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OI
  PLASTIC PRODUCTS FTS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNITED
  GLASS LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OWENS
  ILLINOIS (AUSTRALIA) PTY LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-1

 

	
   

  	
  ACI
  OPERATIONS PTY LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AZIENDE
  VETRARIE INDUSTRIALI RICCIARDI –

  AVIR S.P.A.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  O-I
  CANADA CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BSN
  GLASSPACK, S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OWENS-ILLINOIS
  GENERAL, INC.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-2

 

	
  AGENTS
  AND LENDERS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS,

  individually and as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deutsche Bank
  Trust Company Americas

  
	
   

  	
   

  	
  60 Wall Street, 38th Floor

  
	
   

  	
   

  	
  New York, New
  York 10005

  
	
   

  	
   

  	
  Attention: Mary
  Jo Jolly

  
	
   

  	
   

  	
   

  
	
   

  	
  With
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deutsche Bank
  Trust Company Americas

  
	
   

  	
   

  	
  222 South
  Riverside Plaza

  
	
   

  	
   

  	
  MS CHI105-2900

  
	
   

  	
   

  	
  Chicago,
  Illinois 60606

  
	
   

  	
   

  	
  Telephone: (312)
  537-4231

  
	
   

  	
   

  	
  Fax: (312) 537-1324

  
	
   

  	
   

  	
  Attention: Marla Brefka Heller

  

 

S-3

 

	
   

  	
  DEUTSCHE BANK AG LONDON

  As UK
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Graham Hodgkin

  
	
   

  	
   

  	
  Corporate
  Trust & Agency Services

  
	
   

  	
   

  	
  33 Old Broad
  Street

  
	
   

  	
   

  	
  Mail Stop 606

  
	
   

  	
   

  	
  London EC2N 1HW

  
	
   

  	
   

  	
  United Kingdom

  

 

S-4

 

	
   

  	
   

  	
   

  
	
   

  	
  As a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-5

 

ANNEX A –FORM OF
GUARANTOR ACKNOWLEDGEMENT

 

ACKNOWLEDGEMENT
AND CONSENT

 

This ACKNOWLEDGEMENT AND
CONSENT (this “Acknowledgment”)
is dated as of June   , 2005 and entered into by OWENS-ILLINOIS GROUP, INC., a Delaware
corporation (“Company”) and each
of THE UNDERSIGNED DIRECT AND INDIRECT SUBSIDIARIES
of Company (each of Company and such undersigned Subsidiaries being a “Credit Support Party” and collectively “Credit
Support Parties”) for the benefit of the Lenders party to that
certain Third Amended and Restated Secured Credit Agreement, dated as of October 7,
2004, by and among the Company,
OWENS-BROCKWAY GLASS CONTAINER INC., a Delaware corporation (“Owens-Brockway”), OI PLASTIC PRODUCTS FTS INC., a Delaware corporation (“O-I Plastic”), UNITED GLASS LIMITED, a
limited liability company incorporated under the laws of England and Wales
(registered number 526983) (“United Glass”),
OWENS ILLINOIS (AUSTRALIA) PTY LIMITED,
a limited liability company organized under the laws of Australia (“O-I Australia”), ACI OPERATIONS PTY LIMITED, a limited liability company organized
under the laws of Australia (“ACI”),
AZIENDE VETRARIE INDUSTRIALI RICCIARDI
– AVIR S.P.A., a joint stock company organized under the laws of Italy (“Avir”), BSN GLASSPACK, S.A., a French
Societe anonyme (“BSN”), O-I CANADA CORP., a Nova Scotia
corporation (“O-I Canada,” together with Owens-Brockway, O-I
Plastic, United Glass, O-I Australia, ACI, AVIR and BSN, “Borrowers”),
and OWENS-ILLINOIS GENERAL, INC., a Delaware corporation (“O-I General”), as Borrowers’ Agent (in such
capacity “Borrowers’ Agent”), the
lenders listed on the signature pages thereof (each individually a “Lender” and collectively, “Lenders”),
DEUTSCHE BANK TRUST COMPANY
AMERICAS (“DB”), as Administrative
Agent for Lenders (“Administrative Agent”),
and DEUTSCHE BANK AG LONDON, as UK Administrative Agent for Lenders (“UK Administrative Agent”),
as amended by that certain First Amendment to Third Amended and Restated
Secured Credit Agreement (the “First Amendment”)
dated as of June 13, 2005 by and among the Company, the Borrowers, O-I
General, the Lenders party thereto, the Administrative Agent and the UK
Administrative Agent.  Capitalized terms
used herein without definition shall have the same meanings herein as set forth
in the Credit Agreement.

 

RECITALS

 

WHEREAS, the Lenders have entered into the
Credit Agreement with certain subsidiaries of Company as Borrowers and with
Company as guarantor pursuant to Section 9 thereof and O-I General as
Borrowers’ Agent;

 

WHEREAS, certain of the Credit Support
Parties have entered into the Subsidiary Guaranty of all Obligations as defined
in and now or hereafter existing under or in respect of the Credit Agreement;

 

WHEREAS, certain of the Credit Support
Parties have entered into a Domestic Borrowers’ Guaranty under which each
Domestic Borrower has guaranteed (i) all Obligations of the other Domestic
Borrower; (ii) all Obligations of the Offshore Borrowers; and (iii) all
Other Lender Guarantied Obligations;

 

1

 

WHEREAS, certain of the Credit Support
Parties have entered into Offshore Guaranties;

 

WHEREAS, the Credit Support Parties have
entered into certain Collateral Documents creating Liens on and/or pledging
certain Collateral as security for their respective obligations under the
Credit Agreement, Subsidiary Guaranty, Domestic Borrowers’ Guaranty and the
Offshore Guaranties (Company’s guaranty under Section 9 of the Credit
Agreement, the Domestic Borrowers’ Guaranty, the Subsidiary Guaranty, the
Offshore Guaranties and the Collateral Documents being referred to collectively
herein as the “Credit Support Documents”);

 

WHEREAS, it is a condition to the
effectiveness of the First Amendment that each of the Credit Support Parties
execute this Acknowledgement and Consent.

 

NOW,
THEREFORE, in consideration of the agreements of the Lenders
contained in the First Amendment, the undersigned Credit Support Parties
acknowledge and agree as follows:

 

1.             Each Credit Support Party hereby
acknowledges that it has reviewed the terms and provisions of the Credit
Agreement and the First Amendment and consents to the amendment of the Credit
Agreement effected pursuant to the First Amendment.  Each Credit Support Party hereby confirms
that each Credit Support Document to which it is a party or is otherwise bound
and all Collateral encumbered thereby will continue to guaranty or secure, as
the case may be, to the fullest extent possible the payment and performance of
all “Guarantied Obligations,” “Secured Obligations” and “Obligations,” as the
case may be (in each case as such terms are defined in the applicable Credit
Support Document), including without limitation the payment and performance of
all such “Guarantied Obligations,” “Secured Obligations” and “Obligations” as
the case may be, in respect of the obligations of the Borrowers now or
hereafter existing under or in respect of the Credit Agreement.

 

2.             Each Credit Support Party acknowledges
and agrees that any of the Credit Support Documents to which it is a party or
is otherwise bound shall continue in full force and effect and that all of its
obligations thereunder shall be valid and enforceable and shall not be impaired
or limited by the execution or effectiveness of the First Amendment.  Each Credit Support Party represents and
warrants that all representations and warranties contained in the Credit
Agreement and the Credit Support Documents to which it is a party or otherwise bound
are true, correct and complete in all material respects on and as of the First
Amendment Effective Date (as defined in the First Amendment) to the same extent
as though made on and as of that date, except to the extent such
representations and warranties specifically relate to an earlier date, in which
case they were true, correct and complete in all material respects on and as of
such earlier date.

 

3.             Each Credit Support Party (other
than Company and the Domestic Borrowers in their capacity as such) acknowledges
and agrees that (i) notwithstanding the conditions to effectiveness set
forth of the First Amendment, such Credit Support Party is not required by the
terms of the Credit Agreement or any other Loan Document to consent to the
amendments to the Credit Agreement effected pursuant to the First Amendment and
(ii) nothing

 

2

 

in the Credit Agreement,
the First Amendment or any other Loan Document shall be deemed to require the
consent of such Credit Support Party to any future amendments to the Credit
Agreement.

 

IN
WITNESS WHEREOF, each of the undersigned Credit Support
Parties has caused this Acknowledgement and Consent to be duly executed as of
the day and year first written above.

 

	
   

  	
  OWENS-ILLINOIS
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [insert applicable signature blocks]

  

 

3Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”)
dated as of July 5th, 2005, is by and between Isolagen, Inc., a
Delaware corporation (together with its subsidiaries, the “Company” or “Isolagen”),
and Marie Lindner, an individual residing in Radnor, Pennsylvania (the “Executive”).

 

 

W I T N E
S S E T H:

 

 

WHEREAS, the Executive desires to serve the Company as
its Senior Vice President of Medical and Business Affairs; and

 

WHEREAS, the Company desires to employ Executive as
its Senior Vice President;

 

NOW THEREFORE in consideration of the mutual benefits
to be derived from this Agreement, the Company and the Executive hereby agree
as follows:

 

1.             Term of Employment; Office and
Duties.

 

(a)           Commencing on July 5, 2005 (the “Employment
Date”), and for an initial term ending July 4, 2007 the Company shall employ
the Executive as a senior executive of the Company with the title of Senior
Vice President and Chief Financial Officer, with the duties and
responsibilities prescribed for such offices in the Bylaws of the Company and
such additional duties and responsibilities consistent with such positions as
may from time to time be assigned to the Executive by the Board of Directors.  Executive agrees to perform such duties and
discharge such responsibilities in accordance with the terms of this
Agreement.  This Agreement shall be
renewed for an additional one (1) year term, by the mutual written agreement of
the Executive and the Company at least one hundred-twenty (120) days prior to
its expiration.  In addition, the Company
shall pay to Executive a one-time signing bonus upon her six month anniversary
with the Company.

 

(b)           The
Executive shall devote substantially all of her working time to the business
and affairs of the Company other than during vacations of four weeks per year
and periods of illness or incapacity; provided, however, that
nothing in this Agreement shall preclude the Executive from devoting time
required:  (i) for serving as a director,
advisor or officer of any organization or entity not in a competing business
with the Company, and any other businesses in which the Company becomes
involved; (ii) delivering lectures or fulfilling speaking engagements;  or (iii) engaging in charitable and community
activities provided that such activities do not interfere with the
performance of his duties hereunder.

 

2.             Compensation and Benefits.

 

For all services rendered
by the Executive in any capacity during the period of Executive’s employment by
the Company, including without limitation, services as an 

 

 

executive officer
or member of any committee of the Board of Directors or any subsidiary,
affiliate or division thereof, from and after the Effective Date, the Executive
shall be compensated as follows:

 

(a)           Base
Salary.       The Company shall pay the Executive
a fixed salary (“Base Salary”) at a rate of Two Hundred Seventy-five Thousand
Dollars ($275,000) per year.  The Board
of Directors may periodically review the Executive’s Base Salary and may
determine to increase (but not decrease) the Executive’s salary, in accordance
with such policies as the Company may hereafter adopt from time to time, if it
deems appropriate.  Base Salary will be
payable in accordance with the customary payroll practices of the Company.

 

(b)           Executive will also be entitled to
receive an annual bonus (“the “Annual Bonus”), payable each year subsequent to
the issuance of final audited financial statements, but in no case later than
120 days after the end of the Company’s most recently completed fiscal year. The
initial target bonus for Executive will be 30% of the base salary.  The final determination on the amount of the
Annual Bonus will be made by the Compensation Committee of the Board of
Directors, based primarily on the Executive’s performance . The Compensation
Committee may also consider other more subjective factors in making its
determination.

 

(c)           A one time signing bonus of  fifteen thousand dollars ($15,000)

 

(d)           Fringe Benefits, Option Grants and
Miscellaneous Employment Matters.  

 

(i)            The
Executive shall be entitled to participate in such disability, health and life
insurance and other fringe benefit plans or programs, including a Section
401(k) retirement plan, of the Company established from time to time by the
Board of Directors, if any, to the extent that her position, tenure, salary,
age, health and other qualifications make him eligible to participate, subject
to the rules and regulations applicable thereto.  In addition, the Executive shall be entitled
to the following benefits:

 

(ii)           Contemporaneous
with the execution of this Agreement, the Executive will be granted  a non-qualified stock option  (the “Employment Option”) to purchase 60,000
shares of the Company’s Common Stock, par value $.001 per share (the “Common
Stock”) with an exercise price per share equal to the closing price of Isolagen
on the date of the grant. The term of the Employment Option will be for a
period of five (5) years from the date of grant and governed by the terms of an
Option Agreement  between the Executive
and the Company.  The shares eligible for
purchase under the Employment Option grant vest ratably, annually, over the two
years following the Employment Date.  In
the event the Executive is terminated without cause or due to a material
diminution in responsibilities as described below in Paragraph 4(b), the
Employment Option will vest immediately upon such termination.  Nothing in this paragraph shall limit the
board of directors or the compensation committee from making any additional
grant of options.

 

2

 

(d)           Withholding
and Employment Tax.       Payment of all
compensation hereunder shall be subject to withholding tax and other employment
taxes as may be required with respect to compensation paid by an
employer/corporation to an employee.

 

(e)           Disability.
      The Company shall, to the extent such benefits
can be obtained at a reasonable cost, provide the Executive with disability
insurance benefits.

 

(f)            Death.
      The Company shall, to the extent such benefits
can be obtained at a reasonable cost, provide the Executive with life insurance
benefits in the amount of at least One Million Dollars ($1,000,000).

 

(g)           Vacation.
      Executive shall receive four (4) weeks of
vacation annually, administered in accordance with the Company’s existing
vacation policy.

 

3.             Business Expenses.

 

The Company shall pay or
reimburse all reasonable travel and entertainment expenses incurred by the
Executive in connection with the performance of his duties under this
Agreement, including travel between Executive’s current domicile to the Company’s
various offices (other than his primary assigned office in Exton, PA) and
facilities in the United States and abroad, for attending out-of-town meetings
of the Board of Directors, and such other travel as may be required or
appropriate to fulfill the responsibilities of her office, all in accordance
with such policies and procedures as the Company may from time to time
establish for senior officers and as required to preserve any deductions for
federal income taxation purposes to which the Company may be entitled and
subject to the Company’s normal requirements with respect to reporting and
documentation of such expenses.

 

4.             Termination of Employment.

 

Notwithstanding any other
provision of this Agreement, Executive’s employment with the Company may be
terminated upon written notice to the other party as follows:

 

(a)           By the Company, in the event of the
Executive’s death or Disability (as hereinafter defined) or for Cause (as
hereinafter defined). For purposes of this Agreement, “Cause” shall mean
either: (i) the indictment of, or the bringing of formal charges against,
Executive by a governmental authority of competent jurisdiction for charges
involving criminal fraud or embezzlement; (ii) the conviction of Executive of a
crime involving an act or acts of dishonesty, fraud or moral turpitude by the
Executive, which act or acts constitute a felony; (iii) Executive having
willfully caused the Company, without the approval of the Board of Directors,
to fail to abide by either a valid contract to which the Company is a party or
the Company’s Bylaws or; (iv) Executive having committed acts or omissions
constituting gross negligence or willful misconduct with respect to the Company;
(v) Executive having committed acts or omissions constituting a material breach
of Executive’s duty of loyalty or fiduciary duty to the Company or any material
act of dishonesty or fraud with respect to the Company which are not cured in a
reasonable time, which time shall be 30 days from receipt

 

 

3

 

of written notice
from the Company of such material breach; or (vi) Executive having committed
acts or omissions constituting a material breach of this Agreement, including
any failure of the Executive to follow a directive from the Board of Directors
and/or its Audit Committee, which are not cured in a reasonable time, which
time shall be 30 days from receipt of written notice from the Company of such
material breach (vii) Executive having failed to meet agreed upon minimum
performance criteria.  A determination
that Cause exists as defined in clauses (iv), (v), (vi) or (vii) (as to this
Agreement) of the preceding sentence shall be made in good faith and by at least
a majority of the members of the Board of Directors.  For purposes of this Agreement, “Disability”
shall mean the inability of Executive, in the reasonable judgment of a
physician appointed by the Board of Directors, to perform his duties of
employment for the Company or any of its subsidiaries because of any physical
or mental disability or incapacity, where such disability shall exist for an
aggregate period of more than 120 days in any 365-day period or for any period
of 90 consecutive days.  The Company
shall by written notice to the Executive specify the event relied upon for
termination pursuant to this Section 4(a), and Executive’s employment hereunder
shall be deemed terminated as of the date of such notice.  In the event of any termination under this
Subsection 4(a), the Company shall pay all amounts then due to the Executive
under Section 2(a) of this Agreement for any portion of the payroll period
worked but for which payment had not yet been made up to the date of
termination, and, if such termination was for Cause, the Company shall have no
further obligations to Executive under this Agreement, and any and all options
granted hereunder shall terminate according to their terms.  In the event of a termination due to
Executive’s Disability or death, the Company shall comply with its obligations
under Sections 2(e) and 2(f).

 

(b)           By
the Company, in the absence of Cause, for any reason and in its sole and
absolute discretion, provided that in such event the Company shall, as
liquidated damages or severance pay, or both, continue to pay to Executive the
Base Salary (at a monthly rate equal to the rate in effect immediately prior to
such termination) for the lesser of the remaining term as defined above or one
year from the date of termination (the “Termination Payments”), when, as and if
such payments would have been made in the absence of Executive’s termination
subject to the following limitation:  if
the Executive becomes employed following termination, all Termination Payments
shall cease except that Executive shall receive at least six months of
Termination Payments notwithstanding reemployment.  In addition, if upon the retention of a new
chief executive officer the duties and responsibilities of the Executive are
materially diminished or changed without the Executive’s consent and the
Executive raises a timely objection (within 30 days) to such change in her
duties and responsibilities, Executive may resign her position and shall be
entitled to six months of Termination Payments as if she were terminated
without Cause.

 

(c)           By
the Executive, for any reason, upon providing 14 days (2 weeks) written
notice.  The Executive will be entitled
to only such compensation as due through that period, including unpaid
vacation, but shall not be entitled to any other remuneration, unless agreed to
by the Company.

 

4

 

5.             Non-Competition.

 

During the period of
Executive’s employment hereunder and during the period, if any, during which
payments are required to be made to the Executive by the Company pursuant to
Sections 4(a) or 4(b), the Executive shall not, within any state or foreign
jurisdiction in which the Company or any subsidiary of the Company is then
providing services or products or marketing its services or products (or
engaged in active discussions to provide such services), or within a one
hundred (100) mile radius of any such state, directly or indirectly own any
interest in, manage, control, participate in, consult with, render services
for, or in any manner engage in any business engaged in competition with the Company
(unless the Board of Directors shall have authorized such activity and the
Company shall have consented thereto in writing).  By way of further clarification, a business
would be deemed to be in competition with the Company if it utilized cellular
therapies for aesthetic or therapeutic treatment. Investments of less than five
percent of the outstanding securities of any class of a corporation subject to
the reporting requirements of Section 13 or Section 15(d) of the Securities
Exchange Act of 1934, as amended, shall not be prohibited by this Section 5.
Executive’s obligations under this Section 5 arising after the termination of
Executive shall be suspended during any period in which the Company fails to
pay to him Termination Payments required to be paid to him pursuant to this
Agreement.  The provisions of this
Section 5 are subject to the provisions of Section 14 of this Agreement.

 

6.             Inventions and Confidential Information.

 

The parties hereto
recognize that a major need of the Company is to preserve its specialized
knowledge, trade secrets, and confidential information.  The strength and good will of the Company is
derived from the specialized knowledge, trade secrets, and confidential
information generated from experience with the activities undertaken by the
Company and its subsidiaries.  The
disclosure of this information and knowledge to competitors would be beneficial
to them and detrimental to the Company, as would the disclosure of information
about the marketing practices, pricing practices, costs, profit margins, design
specifications, analytical techniques, and similar items of the Company and its
subsidiaries.  The Executive acknowledges
that the proprietary information, observations and data obtained by him while
employed by the Company concerning the business or affairs of the Company are
the property of the Company.  The
Executive also agrees to execute a separate agreement relating to the ownership
of intellectual property of the Company upon the commencement of her
employment.  By reason of her being a
senior executive of the Company, the Executive has or will have access to, and
has obtained or will obtain, specialized knowledge, trade secrets and
confidential information about the Company’s operations and the operations of
its subsidiaries, which operations extend throughout the United States.  [For purposes of this Section 6, “Company”
shall mean the Company and each of its controlled subsidiaries.]  Therefore, subject to the provisions of
Section 14 hereof, the Executive hereby agrees as follows, recognizing that the
Company is relying on these agreements in entering into this Agreement:

 

5

 

(i)            During the period of Executive’s
employment with the Company and for ten  (10)
years thereafter, the Executive will not use, disclose to others, or publish or
otherwise make available to any other party any inventions or any confidential
business information about the affairs of the Company, including but not
limited to confidential information concerning the Company’s products, methods,
engineering designs and standards, analytical techniques, technical
information, customer information, employee information, and other confidential
information acquired by him in the course of her past or future services for
the Company.  Executive agrees to hold as
the Company’s property all books, papers, letters, formulas, memoranda, notes,
plans, records, reports, computer tapes, printouts, software and other
documents, and all copies thereof and therefrom, in any way relating to the
Company’s business and affairs, whether made by him or otherwise coming into her
possession, and on termination of her employment, or on demand of the Company,
at any time, to deliver the same to the Company within seventy-two (72) hours
of such termination or demand.

 

(ii)           During the period of Executive’s
employment with the Company and for eighteen (18) months thereafter, (a) the
Executive will not directly or indirectly through another entity induce or
otherwise attempt to influence any employee of the Company to leave the Company’s
employ and (b) the Executive will not directly hire or cause to be hired or
induce a third party to hire, any such employee (unless the Board of Directors
shall have authorized such employment and the Company shall have consented
thereto in writing) or in any way interfere with the relationship between the
Company and any employee thereof and (c) induce or attempt to induce any
customer, supplier, licensee, licensor or other business relation of the
Company to cease doing business with the Company or in any way interfere with
the relationship between any such customer, supplier, licensee or business
relation of the Company.

 

7.             Indemnification.

 

The Company will indemnify (and advance the costs of
defense of) the Executive (and her legal representatives) to the fullest extent
required by the laws of the state in which the Company is incorporated, as in
effect at the time of the subject act or omission, or by the Certificate of
Incorporation and Bylaws of the Company, as in effect at such time or on the
date of this Agreement, whichever affords greater protection to the Executive,
and the Executive shall be entitled to the protection of any insurance policies
the Company may elect to maintain generally for the benefit of its executive
officers, against all judgments, damages, liabilities, costs, charges and
expenses whatsoever incurred or sustained by her or her legal representative in
connection with any action, suit or proceeding to which he (or  legal representatives or other successors)
may be made a party by reason of her being or having been an officer of the
Company or any of its subsidiaries except that the Company shall have no
obligation to indemnify Executive for liabilities resulting from conduct of the
Executive with respect to which a court of competent jurisdiction has made a
final determination that Executive committed gross negligence or willful
misconduct.

 

6

 

8.             Litigation Expenses.

 

In the event of any litigation or other proceeding
between the Company and the Executive with respect to the subject matter of
this Agreement and the enforcement of the rights hereunder and such litigation
or proceeding results in final judgment or order in favor of the Executive,
which judgment or order is substantially inconsistent with the positions
asserted by the Company in such litigation or proceeding, the losing party
shall reimburse the prevailing party for all of her/its reasonable costs and
expenses relating to such litigation or other proceeding, including, without
limitation, her/its reasonable attorneys’ fees and expenses.

 

9.             Consolidation; Merger; Sale of Assets; Change of
Control.

 

Nothing
in this Agreement shall preclude the Company from combining, consolidating or
merging with or into, transferring all or substantially all of its assets to,
or entering into a partnership or joint venture with, another corporation or
other entity, or effecting any other kind of corporate combination provided
that the corporation resulting from or surviving such combination,
consolidation or merger, or to which such assets are transferred, or such
partnership or joint venture assumes this Agreement and all obligations and
undertakings of the Company hereunder. Upon such a consolidation, merger,
transfer of assets or formation of such partnership or joint venture, this
Agreement shall inure to the benefit of, be assumed by, and be binding upon
such resulting or surviving transferee corporation or such partnership or joint
venture, and the term “Company,” as used in this Agreement, shall mean such
corporation, partnership or joint venture or other entity, and this Agreement
shall continue in full force and effect and shall entitle the Executive and his
heirs, beneficiaries and representatives to exactly the same compensation,
benefits, perquisites, payments and other rights as would have been their
entitlement had such combination, consolidation, merger, transfer of assets or
formation of such partnership or joint venture not occurred.

 

10.           Survival of Obligations.

 

Sections 4, 5, 6, 7, 8, 9, 11, 12 and 14 shall survive
the termination for any reason of this Agreement (whether such termination is
by the Company, by the Executive, upon the expiration of this Agreement or
otherwise).

 

11.           Executive’s Representations.

 

The Executive hereby
represents and warrants to the Company that (i) the execution, delivery and
performance of this Agreement by the Executive do not and shall not conflict
with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which the Executive is a party or by
which he is bound, (ii) the Executive is not a party to or bound by any
employment agreement, non-compete agreement or confidentiality agreement with
any other person or entity and (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding
obligation of the Executive, enforceable in accordance with its terms.  The Executive hereby

 

7

 

acknowledges and
represents that he has consulted with legal counsel regarding her rights and
obligations under this Agreement and that he fully understands the terms and
conditions contained herein.

 

12.           Company’s Representations.

 

The
Company hereby represents and warrants to the Executive that (i) the execution,
delivery and performance of this Agreement by the Company do not and shall not
conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Company is a
party or by which it is bound and (ii) upon the execution and delivery of this
Agreement by the Executive, this Agreement shall be the valid and binding
obligation of the Company, enforceable in accordance with its terms.

 

13.           Enforcement.

 

Because the Executive’s
services are unique and because the Executive has access to confidential
information concerning the Company, the parties hereto agree that money damages
would not be an adequate remedy for any breach of this Agreement.  Therefore, in the event of a breach or
threatened breach of this Agreement, the Company may, in addition to other
rights and remedies existing in its favor, apply to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in
order to enforce, or prevent any violations of, the provisions hereof (without
posting a bond or other security).

 

14.           Severability.

 

In case any one or more
of the provisions or part of a provision contained in this Agreement shall for
any reason be held to be invalid, illegal or unenforceable in any respect in
any jurisdiction, such invalidity, illegality or unenforceability shall be
deemed not to affect any other jurisdiction or any other provision or part of a
provision of this Agreement, nor shall such invalidity, illegality or
unenforceability affect the validity, legality or enforceability of this
Agreement or any provision or provisions hereof in any other jurisdiction; and
this Agreement shall be reformed and construed in such jurisdiction as if such
provision or part of a provision held to be invalid or illegal or unenforceable
had never been contained herein and such provision or part reformed so that it
would be valid, legal and enforceable in such jurisdiction to the maximum
extent possible.  In furtherance and not
in limitation of the foregoing, the Company and the Executive each intend that
the covenants contained in Sections 5 and 6 shall be deemed to be a series of
separate covenants, one for each county of the Commonwealth of Pennsylvania and
one for each and every other state, territory or jurisdiction of the United
States and any foreign country set forth therein.  If, in any judicial proceeding, a court shall
refuse to enforce any of such separate covenants, then such unenforceable
covenants shall be deemed eliminated from the provisions hereof for the purpose
of such proceedings to the extent necessary to permit the remaining separate
covenants to be enforced in such proceedings. 
If, in any judicial proceeding, a court shall refuse to enforce any one
or more of such separate covenants because the total time, scope or area
thereof is deemed to be excessive or unreasonable, then it is the intent of the
parties

 

8

 

hereto that such
covenants, which would otherwise be unenforceable due to such excessive or
unreasonable period of time, scope or area, be enforced for such lesser period
of time, scope or area as shall be deemed reasonable and not excessive by such
court.

 

15.           Entire Agreement; Amendment.

 

Except as
otherwise set forth in this Agreement, this Agreement contains the entire
agreement between the Company and the Executive with respect to the subject
matter hereof and thereof.  This
Agreement may not be amended, waived, changed, modified or discharged except by
an instrument in writing executed by or on behalf of the party against whom enforcement
of any amendment, waiver, change, modification or discharge is sought.  No course of conduct or dealing shall be
construed to modify, amend or otherwise affect any of the provisions hereof.

 

16.           Notices.

 

All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if physically delivered, delivered by express mail or other
expedited service or upon receipt if mailed, postage prepaid, via registered
mail, return receipt requested, addressed as follows:

 

	
  (a)

  	
   

  	
  To the Company:

  	
   

  	
  (b)

  	
   

  	
  To the Executive:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Isolagen, Inc.

  	
   

  	
   

  	
   

  	
  Dr. Marie Lindner

  
	
   

  	
   

  	
  405 Eagleview Blvd.

  	
   

  	
   

  	
   

  	
  631 Hollow Road

  
	
   

  	
   

  	
  Exton, PA

  	
   

  	
   

  	
   

  	
  Radnor, PA 19087

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
  Susan Ciallella, Esq.

  	
   

  	
   

  	
   

  	
   

  

 

and/or to such other persons and addresses as any party shall have
specified in writing to the other.

 

17.           Assignability.

 

This Agreement shall not be assignable by either party
and shall be binding upon, and shall inure to the benefit of, the heirs,
executors, administrators, legal representatives, successors and assigns of the
parties.  In the event that all or
substantially all of the business of the Company is sold or transferred, then
this Agreement shall be binding on the transferee of the business of the
Company whether or not this Agreement is expressly assigned to the transferee.

 

18.           Governing Law.

 

This Agreement shall be
governed by and construed under the laws of the Commonwealth of Pennsylvania.

 

9

 

19.           Waiver
and Further Agreement.

 

Any waiver of any
breach of any terms or conditions of this Agreement shall not operate as a
waiver of any other breach of such terms or conditions or any other term or
condition, nor shall any failure to enforce any provision hereof operate as a
waiver of such provision or of any other provision hereof.  Each of the parties hereto agrees to execute
all such further instruments and documents and to take all such further action
as the other party may reasonably require in order to effectuate the terms and
purposes of this Agreement.

 

20.           Headings of No
Effect.

 

The paragraph
headings contained in this Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Employment Agreement as of the date first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  ISOLAGEN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Susan Ciallella, Executive Vice President

  
	
   

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE :

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Marie Lindner, M.D.

  

 

 

10

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