Document:

Unassociated Document

    
       

    

    EXHIBIT
10.4

     

    Agreement

     

    Apollo -
Black Fox Financing

     

    Priority
agreement

    
      

    

     

    RMB
Resources Inc.

     

    Macquarie
Bank Limited

     

    RMB
Australia Holdings Limited

     

    Apollo
Gold Corporation

     

    
      
        
          	
                  

                
	 	 
	
                  QV.1
      Building 250 St Georges Terrace Perth WA 6000 Australia

                  GPO
      Box U1942 Perth WA 6845 Australia

                   

                  Sydney  Melbourne  Perth  Brisbane  Singapore

                	
                  Telephone
      +61 8 9211 7777  Facsimile +61 8 9211 7878

                  www.freehills.com  DX
      104 Perth

                   

                  Correspondent
      offices in Hanoi  Ho Chi Minh
      City  Jakarta

                

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      

       

    

     

    Contents

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	Table
      of contents	 
      
	 
      	 
      	 
      	 
      
	 
      	The
      agreement	
                                1

                              
	 
      	 
      	 
      	 
      
	 
      	Operative
      part	
                                3

                              
	 
      	 
      	 
      	 
      
	
                                1

                              	
                                Definitions
      and interpretation

                              	
                                3

                              
	 
      	
                                1.1

                              	
                                Definitions

                              	
                                3

                              
	 
      	
                                1.2

                              	
                                Interpretation

                              	
                                7

                              
	 
      	
                                1.3

                              	
                                Inclusive
      expressions

                              	
                                8

                              
	 
      	
                                1.4

                              	
                                Business
      Day

                              	
                                8

                              
	 
      	 
      	 
      
	
                                2

                              	
                                Priorities

                              	
                                8

                              
	 
      	
                                2.1

                              	
                                Order
      of priority

                              	
                                8

                              
	 
      	
                                2.2

                              	
                                Term
      of priorities

                              	
                                8

                              
	 
      	 
      	 
      
	
                                3

                              	
                                Payments

                              	
                                9

                              
	 
      	
                                3.1

                              	
                                Accounting
      for funds received or recovered

                              	
                                9

                              
	 
      	
                                3.2

                              	
                                Currency
      of payments

                              	
                                9

                              
	 
      	
                                3.3

                              	
                                Amounts
      payable on demand

                              	
                                9

                              
	 
      	 
      	 
      
	
                                4

                              	
                                Representations
      and warranties

                              	
                                9

                              
	 
      	
                                4.1

                              	
                                Representations
      and warranties of the parties

                              	
                                9

                              
	 
      	
                                4.2

                              	
                                Representations
      and warranties of the Creditors

                              	
                                10

                              
	 
      	
                                4.3

                              	
                                Survival
      of representations and warranties

                              	
                                10

                              
	 
      	 
      	 
      
	
                                5

                              	
                                Undertakings,
      consents, acknowledgments

                              	
                                10

                              
	 
      	
                                5.1

                              	
                                Execution
      of the Securities

                              	
                                10

                              
	 
      	
                                5.2

                              	
                                Dealing
      with the Securities

                              	
                                10

                              
	 
      	
                                5.3

                              	
                                Documents
      of title

                              	
                                10

                              
	 
      	
                                5.4

                              	
                                Insurance
      and compensation

                              	
                                11

                              
	 
      	
                                5.5

                              	
                                Acknowledgments
      of APG

                              	
                                11

                              
	 
      	
                                5.6

                              	
                                Default
      by a Creditor

                              	
                                11

                              
	 
      	
                                5.7

                              	
                                Further
      assurance

                              	
                                11

                              
	 
      	 
      	 
      
	
                                6

                              	
                                Enforcement

                              	
                                12

                              
	 
      	
                                6.1

                              	
                                Enforcement
      of Securities

                              	
                                12

                              
	 
      	
                                6.2

                              	
                                Manner
      of enforcement

                              	
                                12

                              
	 
      	
                                6.3

                              	
                                No
      obligation to marshal

                              	
                                12

                              
	 
      	 
      	 
      
	
                                7

                              	
                                Tax,
      costs and expenses

                              	
                                12

                              
	 
      	
                                7.1

                              	
                                Tax

                              	
                                12

                              
	 
      	
                                7.2

                              	
                                Costs
      and expenses

                              	
                                13

                              
	 
      	 
      	 
      
	
                                8

                              	
                                Saving
      provisions

                              	
                                13

                              
	 
      	
                                8.1

                              	
                                Non-avoidance

                              	
                                13

                              
	 
      	
                                8.2

                              	
                                Exclusion
      of moratorium

                              	
                                14

                              
	 
      	
                                8.3

                              	
                                Continuing
      indemnities

                              	
                                14

                              
	 
      	 
      	 
      
	
                                9

                              	
                                General

                              	
                                14

                              
	 
      	
                                9.1

                              	
                                Confidential
      information

                              	
                                14

                              
	 
      	
                                9.2

                              	
                                Notices

                              	
                                14

                              

                      

                       

                    

                  

                

              

            

          

        

      

    

    
      
        	
                Priority
      agreement    Contents
      1

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        
           

          

           

        

      

       

      Contents

       

    

    
      
        
          
            	 
      	
                    9.3

                  	
                    Governing
      law and jurisdiction

                  	
                    15

                  
	 
      	
                    9.4

                  	
                    Prohibition
      and enforceability

                  	
                    15

                  
	 
      	
                    9.5

                  	
                    Waivers

                  	
                    15

                  
	 
      	
                    9.6

                  	
                    Variation

                  	
                    15

                  
	 
      	
                    9.7

                  	
                    Cumulative
      rights

                  	
                    15

                  
	 
      	
                    9.8

                  	
                    Assignment

                  	
                    16

                  
	 
      	
                    9.9

                  	
                    Attorneys

                  	
                    16

                  
	 
      	
                    9.10

                  	
                    Security
      Agent’s limitation of liability protection

                  	
                    16

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Schedules

                  	 
      
	 
      	
                    Notice
      details

                  	
                    18

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Signing
      page

                  	
                    19

                  

          

        

      

    

     

    
      
        	
                Priority
      agreement    Contents
      2

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
         

        

         

      

    

     

    The
agreement

     

    
      
        	
                 

              	
                Priority
      agreement

              

      

    

     

    Date     December 10,
2008

     

    
      
        
          
            
              
                
                  
                    	
                            Between
      the parties

                             

                          
	
                             

                            First
      Creditors

                          	
                             

                            RMB
      Resources Inc.

                             

                            a
      company incorporated under the laws of Delaware, United States of
      America

                             

                            of
      Suite 900, 143 Union Boulevard, Lakewood, Colorado, United States of
      America

                             

                            Macquarie
      Bank Limited

                             

                            a
      company incorporated under the laws of Australia

                             

                            ACN
      008 583 542 of Level 1, No. 1 Martin Place, Sydney NSW 2000,
      Australia

                             

                            RMB
      Australia Holdings Limited

                             

                            a
      company incorporated under the laws of Australia

                             

                            of
      Level 13, 60 Castlereagh Street, Sydney, New South Wales 2000,
      Australia

                             

                          
	
                             

                            Second
      Creditors

                          	
                             

                            RMB
      Resources Inc.

                             

                            a
      company incorporated under the laws of Delaware, United States of
      America

                             

                            of
      Suite 900, 143 Union Boulevard, Lakewood, Colorado, United States of
      America

                             

                            RMB
      Australia Holdings Limited

                             

                            a
      company incorporated under the laws of Australia

                             

                            of
      Level 13, 60 Castlereagh Street, Sydney, New South Wales 2000,
      Australia

                             

                          
	
                             

                            APG

                          	
                             

                            Apollo
      Gold Corporation

                             

                            a
      corporation existing under the laws of the Yukon Territory,
      Canada

                             

                            of
      5655 South Yosemite Street, Suite 200 Greenwood Village, Colorado
      80111-3220, United States of
America

                          

                  

                

              

            

          

        

      

    

    
       

      
        
          	
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      The
agreement

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	 	 	 
	
                                             

                                            Background

                                          	 	
                                             

                                            1

                                          	
                                             

                                            APG
      has granted, or will grant, the First Securities to the First
      Creditors.

                                          
	 	 	 	 
	 
      	 	
                                            2

                                          	
                                            APG
      has granted, or will grant, the Second Securities to the Second
      Creditors.

                                          
	 	 	 	 
	 
      	 	
                                            3

                                          	
                                            The
      parties have agreed to regulate the order of priorities between the First
      Securities and the Second Securities as provided in this
      agreement.

                                          
	 	 	 
	
                                             

                                            This
      agreement witnesses

                                          	 	
                                             

                                            that
      in consideration of, among other things, the mutual promises contained in
      this agreement, the parties agree as set out in the Operative part of this
      agreement.

                                             

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  Priority
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      2

                

        

      

    

    
      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

    

    
      
         

        

         

      

    

     

    Operative
part

     

    
      
        	
                1

              	
                Definitions
      and interpretation

                 

              

      

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    The
meanings of the terms used in this document are set out below.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Term

                                       

                                    	 	
                                      Meaning

                                       

                                    
	
                                       

                                      APG

                                       

                                    	 	
                                       

                                      Apollo
      Gold Corporation, a corporation existing under the laws of the Yukon
      Territory, Canada.

                                       

                                    
	
                                       

                                      Business
      Day

                                    	 	
                                       

                                      1

                                    	
                                       

                                      for
      the purposes of clause 9.2, a day on which banks are open for
      business in the city where the notice or other communication is received
      excluding a Saturday, Sunday or public holiday; and

                                    
	 	 	 	 
	 
      	 	
                                      2

                                       

                                    	
                                      for
      all other purposes, a day on which banks are open for business in Denver,
      United States of America and Toronto, Canada, excluding a Saturday, Sunday
      or public holiday.

                                       

                                    
	
                                       

                                      Controller

                                    	 	
                                       

                                      in
      relation to a body corporate, any receiver, receiver and manager or any
      other person (whether or not as agent for that body corporate), which is
      in possession or has control of that body corporate’s property for the
      purposes of enforcing an Encumbrance.

                                       

                                    
	
                                       

                                      Creditor

                                    	 	
                                       

                                      1

                                    	
                                       

                                      the
      First Creditor; or

                                       

                                    
	 
      	 	
                                      2

                                       

                                    	
                                      the
      Second Creditor.

                                       

                                    
	
                                       

                                      Debt

                                    	 	
                                       

                                      the
      First Debt or the Second Debt and, in relation to the First Creditors,
      means the First Debt and, in relation to the Second Creditors, means the
      Second Debt.

                                       

                                    
	
                                       

                                      Encumbrance

                                    	 	
                                       

                                      an
      interest or power:

                                       

                                    
	 
      	 	
                                      1

                                    	
                                      reserved
      in or over an interest in any asset including any retention of title;
      or

                                       

                                    
	 
      	 	
                                      2

                                    	
                                      created
      or otherwise arising in or over an interest in any asset under a bill of
      sale, mortgage, charge, lien, pledge, trust or power,

                                       

                                    
	 
      	 	
                                      by
      way of, or having similar commercial effect to, security for the payment
      of a debt, any other monetary obligation or the performance of any other
      obligation and includes any agreement to grant or create any of the
      above.

                                       

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
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                            1   Definitions and
      interpretation

                          

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    	
                            Term

                             

                          	 	
                            Meaning

                             

                          
	
                             

                            Facility
      Agreement

                             

                          	 	
                             

                            1

                          	
                             

                            the
      First Facility Agreement; and

                             

                          
	 
      	 	
                            2

                          	
                            the
      Second Facility Agreement.

                             

                          
	
                             

                            First
      Creditor

                             

                          	 	
                             

                            each
      of:

                             

                          
	 
      	 	
                            1

                          	
                            RMB
      Resources Inc. in its capacity as the Security Agent and in its capacity
      as agent under the First Facility Agreement;

                             

                          
	 
      	 	
                            2

                          	
                            RMB
      Australia Holdings Limited and Macquarie Bank Limited, each in their
      capacity as financiers under the First Facility Agreement;
and

                             

                          
	 
      	 	
                            3

                          	
                            each
      ‘Beneficiary’ as that term is defined in the Security Agent
      Agreement.

                             

                          
	
                             

                            First
      Debt

                             

                          	 	
                             

                            all
      debts and monetary liabilities of APG to the First Creditors on any
      account and in any capacity from time to time secured by the First
      Securities, irrespective of whether the debts or liabilities:

                             

                          
	 
      	 	
                            1

                          	
                            are
      present or future;

                             

                          
	 
      	 	
                            2

                          	
                            are
      actual, prospective, contingent or otherwise;

                             

                          
	 
      	 	
                            3

                          	
                            are
      at any time ascertained or unascertained;

                             

                          
	 
      	 	
                            4

                          	
                            are
      owed or incurred by or on account of APG alone, or severally or jointly
      with any other person;

                             

                          
	 
      	 	
                            5

                          	
                            are
      owed or incurred to or for the account of the First Creditors alone, or
      severally or jointly with any other person;

                             

                          
	 
      	 	
                            6

                          	
                            are
      owed or incurred as principal, interest, fees, charges, taxes, duties or
      other imposts, damages (whether for breach of contract or tort or incurred
      on any other ground), losses, costs or expenses, or on any other account;
      or

                             

                          
	 
      	 	
                            7

                          	
                            comprise
      any combination of the above.

                             

                          
	
                             

                            First
      Facility Agreement

                             

                          	 	
                             

                            the
      Bridge Facility Agreement dated on or about the date of this agreement
      between APG, the Security Agent, RMB Australia Holdings Limited and
      Macquarie Bank Limited, as amended, supplemented, modified, extended,
      renewed, novated, refinanced, restated or replaced from time to
      time.

                             

                          
	
                             

                            First
      Securities

                             

                          	 	
                             

                            1

                          	
                             

                            General
      Security Agreement dated on or about the date of this agreement between
      the Security Agent and APG;

                             

                          
	 
      	 	
                            2

                          	
                            the
      Security Agent Agreement;

                             

                          
	 
      	 	
                            3

                          	
                            Real
      Property Charge / Mortgage dated on or about the date of this agreement
      between the Security Agent and APG;

                             

                          
	 
      	 	
                            4

                          	
                            the
      Blocked Account and Control Agreement dated on or about the date of this
      agreement between the Security Agent, APG and U.S. Bank National
      Association; and

                             

                          
	 
      	 	
                            5

                          	
                            any
      other present or future Encumbrance, Guarantee or other document or
      agreement created or entered into as security for the payment of any of
      the First Debt.

                             

                          

                  

                

              

            

          

        

      

    

    
       

      
        
          	
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                              1   Definitions and
      interpretation

                            

                    

                  

                

              

            

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Term

                                       

                                    	 	
                                      Meaning

                                    
	
                                       

                                      Fund

                                       

                                    	 	
                                       

                                      has
      the meaning given in the Security Agent Agreement.

                                       

                                    
	
                                       

                                      Government
      Agency

                                       

                                    	 	
                                       

                                      any
      government or any governmental, semi-governmental, administrative, fiscal
      or judicial body, department, commission, authority, tribunal, agency or
      entity.

                                       

                                    
	
                                       

                                      Guarantee

                                    	 	
                                       

                                      any
      guarantee, suretyship, letter of comfort or any other
      obligation:

                                    
	 
      	 	
                                       

                                      1

                                    	
                                       

                                      to
      provide funds (whether by the advance or payment of money, the purchase of
      or subscription for shares or other securities, the purchase of assets or
      services, or otherwise) for the payment or discharge
of;

                                    
	 
      	 	
                                       

                                      2

                                    	
                                       

                                      to
      indemnify any person against the consequences of default in the payment
      of; or

                                    
	 
      	 	
                                       

                                      3

                                    	
                                       

                                      to
      be responsible for,

                                    
	 
      	 	
                                       

                                      any
      indebtedness of any other person or the assumption of any responsibility
      or obligation in respect of the insolvency or the financial condition of
      any other person.

                                       

                                    
	
                                       

                                      Officer

                                       

                                    	 	
                                       

                                      1

                                    	
                                       

                                      in
      relation to APG, a director or a secretary, or a person notified to the
      Creditors to be an authorised officer, of APG; and

                                       

                                    
	 
      	 	2
      	
                                      in
      relation to a Creditor, a person whose title includes the word ‘Director’,
      ‘Managing Director’, ‘Manager’, ‘President’ or ‘Vice President’ and any
      other person appointed by the Creditor to act as its authorised officer
      for the purposes of this agreement.

                                       

                                    
	
                                       

                                      Order
      of Priority

                                       

                                    	 	
                                       

                                      the
      order of priority set out in clause 2.1.

                                       

                                    
	
                                       

                                      Power

                                       

                                    	 	
                                       

                                      any
      right, power, authority, discretion or remedy conferred on a Creditor by
      this agreement or any applicable law or the Securities.

                                       

                                    
	
                                       

                                      Receiver

                                       

                                    	 	
                                       

                                      a
      receiver or a receiver and manager appointed under a
Security.

                                       

                                    
	
                                       

                                      Second
      Creditor

                                    	 	
                                       

                                      each
      of:

                                    
	 
      	 	
                                       

                                      1

                                    	
                                       

                                      RMB
      Resources Inc. in its capacity as agent under the Second Facility
      Agreement and the Second Securities; and

                                       

                                    
	 
      	 	
                                      2

                                    	
                                      RMB
      Resources Australia Holdings Limited in its capacity as financier under
      the Second Facility Agreement.

                                       

                                    
	
                                       

                                      Second
      Debt

                                       

                                    	 	
                                       

                                      all
      debts and monetary liabilities of APG to the Second Creditors on any
      account and in any capacity from time to time secured by the Second
      Securities, irrespective of whether the debts or liabilities:

                                       

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
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                              1   Definitions and
      interpretation

                            

                    

                  

                

              

            

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	
                                                                          Term

                                                                        	 	
                                                                          Meaning

                                                                           

                                                                        
	 
      	 	 
      	 
      
	 
      	 	
                                                                          1

                                                                        	
                                                                          are
      present or future;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          2

                                                                        	
                                                                          are
      actual, prospective, contingent or otherwise;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          3

                                                                        	
                                                                          are
      at any time ascertained or unascertained;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          4

                                                                        	
                                                                          are
      owed or incurred by or on account of APG alone, or severally or jointly
      with any other person;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          5

                                                                        	
                                                                          are
      owed or incurred to or for the account of the Second
      Creditors  alone, or severally or jointly with any other
      person;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          6

                                                                        	
                                                                          are
      owed or incurred as principal, interest, fees, charges, taxes, duties or
      other imposts, damages (whether for breach of contract or tort or incurred
      on any other ground), losses, costs or expenses, or on any other account;
      or

                                                                        
	 	 	 	 
	 
      	 	
                                                                          7

                                                                        	
                                                                          comprise
      any combination of the above.

                                                                        
	 	 	 	 
	 	 	 
	
                                                                          Second
      Facility Agreement

                                                                        	 	
                                                                          the
      Facility Agreement dated 12 October 2007 between Montana Tunnels Mining,
      Inc., Apollo Gold, Inc., APG and each Second Creditor, as amended and
      restated by an Amendment and Restatement Agreement dated 30 June 2008, and
      as further amended, supplemented, modified, extended, renewed, novated,
      refinanced, restated or replaced from time to time.

                                                                        
	 	 	 	 
	 	 	 	 
	
                                                                          Second
      Securities

                                                                        	 	
                                                                          1

                                                                        	
                                                                          the
      Share Pledge Agreement over the shares in Apollo Gold, Inc. dated 12
      October 2007 between the Security Agent and APG;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          2

                                                                        	
                                                                          the
      General Security Agreement dated 30 June 2008 between the Security Agent
      and APG;

                                                                        
	 	 	 	 
	 
      	 	
                                                                          3

                                                                        	
                                                                          the
      Charge / Mortgage dated 31 July 2008 between the Security Agent and APG;
      and

                                                                        
	 	 	 	 
	 
      	 	
                                                                          4

                                                                        	
                                                                          any
      other present or future Encumbrance, Guarantee or other document or
      agreement which covers the collateral secured by the First Securities and
      created or entered into as security for the payment of any of the Second
      Debt.

                                                                           

                                                                        
	 	 	 
	
                                                                          Security

                                                                        	 	
                                                                          a
      First Security or a Second Security and, in relation to the First
      Creditors, means a First Security and, in relation to the Second
      Creditors, means a Second Security.

                                                                        
	 	 	 
	 	 	 
	
                                                                          Security
      Agent

                                                                        	 	
                                                                          RMB
      Resources Inc., in its capacity as security agent under the First
      Securities.

                                                                        
	 	 	 
	 	 	 
	
                                                                          Security
      Agent Agreement

                                                                        	 	
                                                                          the
      Security Agent Agreement dated on or about the date of this agreement
      between APG, the Security Agent, RMB Australia Holdings Limited and
      Macquarie Bank Limited.

                                                                        
	 	 	 	 
	 	 	 	 
	
                                                                          Tax

                                                                        	 	
                                                                          1

                                                                        	
                                                                          any
      tax, levy, charge, impost, duty, fee, deduction, compulsory loan or
      withholding; or

                                                                        
	  
      	 	 	  
      

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
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                              1   Definitions and
      interpretation

                            

                    

                  

                

              

            

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Term

                              	 	
                                Meaning

                              
	 	 	 
	 
      	 	 
      	 
      
	 
      	 	
                                2

                              	
                                any
      income, stamp or transaction duty, tax or charge,

                              
	 	 	 
	 
      	 	
                                which
      is assessed, levied, imposed or collected by any Government Agency and
      includes any interest, fine, penalty, charge, fee or other payment imposed
      on or in respect of any of the above.

                              
	 	 	 
	 	 	 
	
                                US$ and
      United States Dollars

                              	 	
                                the
      lawful currency of the United States of America.

                              
	 	 	 

                      

                    

                  

                

              

            

          

        

      

    

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    In this
agreement, headings and bold type are for convenience only and do not affect the
interpretation of this agreement and, unless the context otherwise
requires:

     

    
      	
              (a)

            	
              words
      indicating the singular include the plural and vice
  versa;

            

    

     

    
      	
              (b)

            	
              words
      indicating a gender include any
gender;

            

    

     

    
      	
              (c)

            	
              other
      parts of speech and grammatical forms of a word or phrase defined in this
      agreement have a corresponding
meaning;

            

    

     

    
      	
              (d)

            	
              an
      expression suggesting or referring to a natural person includes any
      company, partnership, joint venture, association, corporation or other
      body corporate and any Government
Agency;

            

    

     

    
      	
              (e)

            	
              a
      reference to any thing (including any right) includes a part of that thing
      but nothing in this clause 1.2(e) implies that performance of part of
      an obligation constitutes performance of the
  obligation;

            

    

     

    
      	
              (f)

            	
              a
      reference to a clause, party, attachment, exhibit or schedule is a
      reference to a clause of, and a party, attachment, exhibit and
      schedule to, this agreement and a reference to this agreement includes any
      attachment, exhibit and schedule;

            

    

     

    
      	
              (g)

            	
              a
      reference to a statute, regulation, proclamation, ordinance or by-law
      includes all statutes, regulations, proclamations, ordinances or by-laws
      amending, consolidating or replacing it, whether passed by the same or
      another Government Agency with legal power to do so, and a reference to a
      statute includes all regulations, proclamations, ordinances and by-laws
      issued under that statute;

            

    

     

    
      	
              (h)

            	
              a
      reference to a document includes all amendments or supplements to, or
      replacements or novations of, that
document;

            

    

     

    
      	
              (i)

            	
              a
      reference to liquidation includes official management, appointment of an
      administrator, compromise, arrangement, merger, amalgamation,
      reconstruction, winding up, dissolution, assignment for the benefit of a
      creditor, scheme, composition or arrangement with a creditor, insolvency,
      bankruptcy, or a similar procedure or, where applicable, changes in the
      constitution of any partnership or person or
  death;

            

    

     

    
      	
              (j)

            	
              a
      reference to a party to a document includes that party’s successors and
      permitted assigns;

            

    

     

    
      	
              (k)

            	
              a
      reference to an agreement other than this agreement includes an
      undertaking, deed, agreement or legally enforceable arrangement or
      understanding whether or not in
writing;

            

    

    
      
         

        
          
            	
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                              2   Priorities

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              (l)

            	
              a
      reference to an asset includes all property of any nature, including a
      business, and all rights, revenues and
benefits;

            

    

     

    
      	
              (m)

            	
              a
      reference to a document includes any agreement in writing, or any
      certificate, notice, instrument or other document of any
    kind;

            

    

     

    
      	
              (n)

            	
              no
      provision of this agreement will be construed adversely to a party solely
      on the ground that the party was responsible for the preparation of this
      agreement or that provision;

            

    

     

    
      	
              (o)

            	
              a
      covenant or agreement on the part of two or more persons binds them
      jointly and severally; and

            

    

     

    
      	
              (p)

            	
              a
      reference to a body, other than a party to this agreement (including an
      institute, association or authority), whether statutory or
      not:

            

    

     

    
      	
               
      

            	
              (1)

            	
              which
      ceases to exist; or

            

    

     

    
      	
               
      

            	
              (2)

            	
              whose
      powers or functions are transferred to another
  body,

            

    

     

    is a
reference to the body which replaces it or which substantially succeeds to its
powers or functions.

     

    
      	
              1.3

            	
              Inclusive
      expressions

            

    

     

    Specifying
anything in this agreement after the words ‘include’ or ‘for example’ or similar
expressions does not limit what else is included unless there is express wording
to the contrary.

     

    
      	
              1.4

            	
              Business
      Day

            

    

     

    Where the
day on or by which any thing is to be done is not a Business Day, that thing
must be done on or by the preceding Business Day.

     

    
      
        	
                2

              	
                Priorities

              

      

    

     

    
      	
              2.1

            	
              Order
      of priority

            

    

     

    
      	
              (a)

            	
              The
      order of priority in respect of the Securities
  is:

            

    

     

    
      	
               
      

            	
              (1)

            	
              first priority: the
      First Securities for the First Debt;
and

            

    

     

    
      	
               
      

            	
              (2)

            	
              second priority: the
      Second Securities for the Second
Debt.

            

    

     

    The
rights of the Second Creditors under the Second Securities are postponed to the
rights of the First Creditors under the First Securities to the extent necessary
to give effect to this agreement.

     

    
      	
              2.2

            	
              Term
      of priorities

            

    

     

    The Order
of Priority applies until the later of:

     

    
      	
              (a)

            	
              the
      date the First Debt is fully paid;
and

            

    

     

    
      	
              (b)

            	
              the
      date the First Securities are discharged in accordance with their
      terms,

            

    

     

    or until
this agreement is terminated by agreement in writing between the
Creditors.

    
       

      
        
          	
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                            3   Payments

                          

                  

                

              

            

          

        

      

    

     

    
      
        	
                3

              	
                Payments

              

      

    

     

    
      	
              3.1

            	
              Accounting
      for funds received or recovered

            

    

     

    
      	
              (a)

            	
              If
      at any time a Creditor or a Receiver under a Security of that Creditor
      receives or recovers any part of the Debts in excess of the amount to
      which the Creditor is entitled under the terms of this agreement, whether
      by payment, set-off, banker’s right of combination of accounts, banker’s
      lien, counterclaim, abatement or otherwise it
  must:

            

    

     

    
      	
               
      

            	
              (1)

            	
              promptly
      notify the other Creditor of the amount received or recovered;
      and

            

    

     

    
      	
               
      

            	
              (2)

            	
              pay
      to the other Creditor so much of the amount received or recovered to the
      extent necessary to give effect to this
  agreement.

            

    

     

    
      	
              (b)

            	
              If
      an amount is paid by a Creditor to the other Creditor under
      clause 3.1(a):

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      payer is regarded as not having received or recovered the amount from
      APG;

            

    

     

    
      	
               
      

            	
              (2)

            	
              APG
      remains liable to the payer for the amount;
and

            

    

     

    
      	
               
      

            	
              (3)

            	
              subject
      to clause 3.1(c), the Debt of the payee is reduced by that
      amount.

            

    

     

    
      	
              (c)

            	
              To
      the extent that clause 3.1(b) is void, voidable or otherwise not
      enforceable, APG indemnifies the payer against the payment of the amount
      paid under clause 3.1(a) by the payer to the other
      Creditor.

            

    

     

    
      	
              3.2

            	
              Currency
      of payments

            

    

     

    All
payments under this agreement must be made in US$.

     

    
      	
              3.3

            	
              Amounts
      payable on demand

            

    

     

    If any
amount payable under this agreement is not expressed to be payable on a
specified date, that amount is payable on demand.

     

    
      
        	
                4

              	
                Representations
      and warranties

              

      

    

     

    
      	
              4.1

            	
              Representations
      and warranties of the parties

            

    

     

    Each
party represents and warrants to each other party that:

     

    
      	
              (a)

            	
              registration: it is a
      corporation registered (or taken to be registered) in accordance with the
      laws of its place of incorporation and validly existing under those
      laws;

            

    

     

    
      	
              (b)

            	
              authority: it has power
      and authority to enter into and perform its obligations under this
      agreement;

            

    

     

    
      	
              (c)

            	
              authorisations: it has
      taken all necessary action to authorise the execution, delivery and
      performance of this agreement;

            

    

     

    
      	
              (d)

            	
              binding obligations:
      this agreement constitutes its legal, valid and binding obligations and,
      subject to any necessary stamping and registration, is enforceable in
      accordance with its terms subject to laws generally affecting creditors’
      rights and to principles of equity;
and

            

    

     

    
      	
              (e)

            	
              transaction permitted:
      the execution, delivery and performance by it of this agreement do not and
      will not violate, breach, or result in a contravention
  of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              any
      law, regulation or authorisation;

            

    

    
      
         

        
          
            	
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                            5   Undertakings,
      consents,
acknowledgments

                          

                  

                

              

            

          

        

      

    

     

    
      	
               
      

            	
              (2)

            	
              its
      constitution or other constituent
documents.

            

    

     

    
      	
              (f)

            	
              default under its
      Securities: it has not received any notice of, and is not otherwise
      aware of, any default or event of default (however described) under
      any of the Securities.

            

    

     

    
      	
              4.2

            	
              Representations
      and warranties of the Creditors

            

    

     

    Each
Creditor represents and warrants to each other Creditor that it is absolutely
entitled to its Debt free from any Encumbrance.

     

    
      	
              4.3

            	
              Survival
      of representations and warranties

            

    

     

    The
representations and warranties in clause 4.1 survive the execution of this
agreement.

     

    
      
        	
                5

              	
                Undertakings,
      consents, acknowledgments

              

      

    

     

    
      	
              5.1

            	
              Execution
      of the Securities

            

    

     

    Each
Creditor:

     

    
      	
              (a)

            	
              consents
      to the creation and execution by APG of the Securities in favour of the
      other Creditor; and

            

    

     

    
      	
              (b)

            	
              acknowledges
      that the granting by APG of those Securities in favour of the other
      Creditor does not constitute a breach by APG of any covenant or condition
      contained in or implied by, or an event of default (however described)
      under, any of its Securities or its Facility
  Agreement.

            

    

     

    
      	
              5.2

            	
              Dealing
      with the Securities

            

    

     

    
      	
              (a)

            	
              A
      Creditor must
      not:

            

    

     

    
      	
               
      

            	
              (1)

            	
              deal
      with, sell or otherwise part with possession
of;

            

    

     

    
      	
               
      

            	
              (2)

            	
              create,
      permit, suffer to exist, or agree to, any interest or Encumbrance, being
      over; or

            

    

     

    
      	
               
      

            	
              (3)

            	
              attempt
      to do anything listed in clause 5.2(a)(1) and clause 5.2(a)(2)
      in respect of,

            

    

     

    any of
its Securities without the prior written consent of the other
Creditor.

     

    
      	
              (b)

            	
              The
      consent of a Creditor required under clause 5.2(a) must not be
      withheld or delayed if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      relevant dealing is made expressly subject to the terms of this agreement;
      and

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      person with whom the relevant dealing is made enters into an agreement by
      which it is bound by the provisions of this agreement in the same manner
      as the relevant Creditor is bound.

            

    

     

    
      	
              (c)

            	
              Subject
      to clause 6.1, clause 5.2(a) does not apply to any dealing which
      represents or results from the enforcement of or the exercise any Power
      under (including the appointment of a Controller) any of the
      Securities.

            

    

     

    
      	
              5.3

            	
              Documents
      of title

            

    

     

    
      	
              (a)

            	
              The
      First Creditors are entitled to hold all documents evidencing or relating
      to title to any property subject to the First
  Securities.

            

    

    
       

      
        
          	
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                                5   Undertakings,
      consents,
acknowledgments

                              

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              (b)

            	
              The
      Second Creditors must deposit with the Security Agent all such title
      documents held by it.

            

    

     

    
      	
              (c)

            	
              The
      First Creditors must as soon as reasonably practicable
    after:

            

    

     

    
      	
               
      

            	
              (1)

            	
              the
      First Debt has been fully paid; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      First Securities have been discharged in
full,

            

    

     

    if the
Second Securities have not yet been discharged in full, deliver to the Second
Creditors all documents of title held by the First Creditors in relation to the
assets the subject of the Second Securities.

     

    
      	
              5.4

            	
              Insurance
      and compensation

            

    

     

    
      	
              (a)

            	
              If
      a Second Creditor has a right under the Second Securities or the Second
      Facility Agreement to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              make,
      enforce, settle or compromise claims;
or

            

    

     

    
      	
               
      

            	
              (2)

            	
              sue
      for, recover or give any discharge for money
  payable,

            

    

     

    under, or
in respect of any insurance policy or right of compensation of APG, then the
Second Creditor must not exercise that right without the prior written consent
of the First Creditors.

     

    
      	
              (b)

            	
              If,
      for any reason, a Second Creditor receives or recovers any money from any
      insurance policy or right of compensation of that kind , the Second
      Creditor must account for it in accordance with clause 3 as if it
      were a recovery of its Debt.

            

    

     

    
      	
              5.5

            	
              Acknowledgments
      of APG

            

    

     

    APG
consents to the provisions of this agreement and agrees that:

     

    
      	
              (a)

            	
              no
      benefit of any kind accrues to APG under this
  agreement;

            

    

     

    
      	
              (b)

            	
              the
      rights of a Creditor against APG, and the rights, obligations and
      liabilities of APG, in respect of any of the Debts or Securities are only
      affected by this agreement to the extent expressly provided in this
      agreement; and

            

    

     

    
      	
              (c)

            	
              it
      must not do any thing which causes a Creditor to be in breach of this
      agreement.

            

    

     

    
      	
              5.6

            	
              Default
      by a Creditor

            

    

     

    Any
breach of, or any default under, this agreement by a Creditor does
not:

     

    
      	
              (a)

            	
              affect
      any obligation of APG to that Creditor or any other Creditor under a
      Facility Agreement or any of the
Securities;

            

    

     

    
      	
              (b)

            	
              permit
      APG to exercise any right, power, authority, discretion or remedy against
      that Creditor or any other Creditor;
or

            

    

     

    
      	
              (c)

            	
              make
      either Creditor liable to APG as a result of the breach or
      default.

            

    

     

    
      	
              5.7

            	
              Further
      assurance

            

    

     

    Each
party must, upon request by a Creditor, but at the cost of APG, do or cause to
be done anything which more satisfactorily secures the rights of that Creditor
under this agreement in a manner not inconsistent with any provision of this
agreement including the execution of any document and the delivery of documents
of title.

    
       

      
        
          	
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                            6   Enforcement

                          

                  

                

              

            

          

        

      

    

     

    
      
        	
                6

              	
                Enforcement

              

      

    

     

    
      	
              6.1

            	
              Enforcement
      of Securities

            

    

     

    
      	
              (a)

            	
              The
      Second Creditors may not enforce, or exercise any Power (including the
      appointment of a Controller) in relation to the Second Securities without
      first giving the First Creditors 20 Business Days’ notice of their
      intention to enforce or exercise any
Power.

            

    

     

    
      	
              (b)

            	
              Upon
      receipt of notice under clause 6.1(a), the First Creditors, to the extent
      they are entitled to do so under the First Facility Agreement or the First
      Securities, may enforce or exercise any Power (including the appointment
      of a Controller) in relation to the First Securities, or elect not to
      enforce or exercise any Power.

            

    

     

    
      	
              (c)

            	
              If
      the Second Creditors enforce or exercise any Power (including the
      appointment of a Controller) or attempt to enforce or exercise any Power
      (including the appointment of a Controller) in relation to the Second
      Securities and the First Creditors then enforce or exercise any Power
      (including the appointment of a Controller) in relation to the First
      Securities in accordance with clause 6.1, then the First Creditor will
      have the conduct of those enforcement proceedings with respect to the
      property the subject of the First
Securities.

            

    

     

    
      	
              6.2

            	
              Manner
      of enforcement

            

    

     

    A
Creditor is free to determine in its absolute discretion the extent, if any, to
which it has recourse to any Security and the extent to which it has recourse to
any source other than a Security.

     

    
      	
              6.3

            	
              No
      obligation to marshal

            

    

     

    APG
waives any right it may have under the doctrine of marshalling and agrees that,
before a Creditor enforces a Security, the Creditor is not required to marshal,
or to enforce or apply under, or appropriate, recover or exercise:

     

    
      	
              (a)

            	
              any
      Encumbrance held at any time by the Creditor;
or

            

    

     

    
      	
              (b)

            	
              any
      money or asset which the Creditor at any time holds or is entitled to
      receive.

            

    

     

    
      
        	
                7

              	
                Tax,
      costs and expenses

              

      

    

     

    
      	
              7.1

            	
              Tax
      

            

    

     

    
      	
              (a)

            	
              APG
      must pay any fine, penalty or other cost in respect of a failure to pay
      any Tax described in clause 16.2(a) of the Facility Agreement and
      incurred in relation to this agreement, except to the extent that the
      fine, penalty or other cost is caused by a Creditor’s failure to lodge
      money received from APG within 5 Business Days before the due date for
      lodgement.

            

    

     

    
      	
              (b)

            	
              APG
      indemnifies each Creditor against any amount payable by APG under
      clause 7.1(a) or both which that Creditor
  paid.

            

    

    
       

      
        
          	
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                              8   Saving
      provisions

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              7.2

            	
              Costs
      and expenses

            

    

     

    APG must
pay all costs and expenses of each Creditor in relation to:

     

    
      	
              (a)

            	
              the
      negotiation, preparation, execution, delivery, stamping, registration,
      completion, variation and discharge of this agreement or any document
      contemplated by this agreement;

            

    

     

    
      	
              (b)

            	
              the
      enforcement, protection or waiver, or attempted enforcement or protection,
      of any rights under this agreement or any document contemplated by this
      agreement;

            

    

     

    
      	
              (c)

            	
              the
      consent or approval of the Creditor given under this agreement or any
      document contemplated by this agreement;
and

            

    

     

    
      	
              (d)

            	
              any
      enquiry by any Government Agency involving
APG,

            

    

     

    including:

     

    
      	
              (e)

            	
              any
      administration costs of the Creditor in relation to the matters referred
      to in clauses 7.2(b), (c) and (d);
and

            

    

     

    
      	
              (f)

            	
              any
      legal costs and expenses and any professional consultant’s fees for any of
      the above on a full indemnity
basis.

            

    

     

    
      
        	
                8

              	
                Saving
      provisions

              

      

    

     

    
      	
              8.1

            	
              Non-avoidance

            

    

     

    The Order
of Priority applies despite:

     

    
      	
              (a)

            	
              the
      respective times and dates upon which, or the order in which, any of the
      Securities are executed, delivered or
  registered;

            

    

     

    
      	
              (b)

            	
              the
      respective times and dates upon which, or the order in which, the debts
      and monetary liabilities comprising all or any part of any of the Debts
      are incurred or become due;

            

    

     

    
      	
              (c)

            	
              anything
      contained in any of the Securities;

            

    

     

    
      	
              (d)

            	
              the
      enforcement or attempted enforcement of, or the exercise or attempted
      exercise of any Power;

            

    

     

    
      	
              (e)

            	
              the
      repayment from time to time of all or any part of any of the
      Debts;

            

    

     

    
      	
              (f)

            	
              the
      fluctuation (including any reduction and subsequent increase) from time to
      time of all or any part of any Debt, whether by the advance or further
      advance of any moneys, the provision or further provision of financial
      accommodation, or otherwise;

            

    

     

    
      	
              (g)

            	
              a
      Creditor being, or not being, from time to time obliged
  to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              make
      any advance or provide any other financial accommodation to, at the
      request of, or for the benefit of, APG or any other
  person;

            

    

     

    
      	
               
      

            	
              (2)

            	
              do
      anything which may cause moneys to become due by APG or any other person
      to that Creditor;

            

    

     

    
      	
              (h)

            	
              all
      or any part of any of the Debts being contingent or
      prospective;

            

    

     

    
      	
              (i)

            	
              the
      appointment of a liquidator, receiver, receiver and manager, official
      manager, administrator, other Controller or other similar officer to APG
      or any other person or to all or any part of the assets of
      APG;

            

    

     

    
      	
              (j)

            	
              the
      liquidation of APG or any other
person;

            

    

     

    
      	
              (k)

            	
              any
      provision of any statute or any rule of law or equity to the
      contrary;

            

    

     

    
      	
              (l)

            	
              any
      other thing whether or not of the same kind as
  above.

            

    

    
       

      
        
          	
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                              9   General

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              8.2

            	
              Exclusion
      of moratorium

            

    

     

    To the
extent not excluded by law, a provision of any legislation which at any time
directly or indirectly lessens, stays, postpones, prevents or otherwise
prejudicially affects any Power is negatived and excluded from this agreement,
and all relief and protection conferred by or under that legislation is also
negatived and excluded.

     

    
      	
              8.3

            	
              Continuing
      indemnities

            

    

     

    
      	
              (a)

            	
              Each
      indemnity of APG contained in this agreement is a continuing obligation of
      APG, despite:

            

    

     

    
      	
               
      

            	
              (1)

            	
              any
      settlement of account; or

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      occurrence of any other thing,

            

    

     

    and
remains in full force and effect until the Debts have been paid in
full

     

    
      	
              (b)

            	
              Each
      indemnity in this agreement is an additional, separate and independent
      obligation of APG and no one indemnity limits the generality of any other
      indemnity.

            

    

     

    
      
        	
                9

              	
                General

              

      

    

     

    
      	
              9.1

            	
              Confidential
      information

            

    

     

    Subject
to the confidentiality provisions in each Facility Agreement and each Security,
each Creditor may disclose to the other Creditor any documents or records of, or
information about, APG, the Debts, the Securities, the assets the subject of the
Securities or APG’s business or affairs.

     

    
      	
              9.2

            	
              Notices

            

    

     

    
      	
              (a)

            	
              Any
      notice or other communication including any request, demand, consent or
      approval, to or by a party to this agreement must be in legible writing
      and in English addressed as shown at the commencement of this agreement in
      Schedule 1 or as specified to the sender by any party by
      notice;

            

    

     

    
      	
              (b)

            	
              If
      the sender is a company, any such notice or communication must be signed
      by an Officer or under the common seal of the
  sender.

            

    

     

    
      	
              (c)

            	
              Any
      notice or other communication described in this clause 9.2 is regarded as
      being given by the sender and received by the
  addressee:

            

    

     

    
      	
               
      

            	
              (1)

            	
              if
      by delivery in person or by recognised overnight courier, when delivered
      to the addressee;

            

    

     

    
      	
               
      

            	
              (2)

            	
              if
      by post, on delivery to the addressee;
or

            

    

     

    
      	
               
      

            	
              (3)

            	
              if
      by facsimile transmission, when received by the addressee in legible
      form,

            

    

     

    but if
the delivery or receipt is on a day which is not a Business Day or is after
4.00pm (addressee’s time) it is regarded as received at 9.00am on the following
Business Day.

     

    
      	
              (d)

            	
              Any
      notice or other communication described in this clause 9.2 can be relied
      upon by the addressee and the addressee is not liable to any other person
      for any consequences of that reliance if the addressee believes it to be
      genuine, correct and authorised by the
sender.

            

    

    
       

      
        
          	
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      14

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        
          
            
              
                
                  
                    
                      	
                              

                            	
                              9   General

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              (e)

            	
              A
      facsimile transmission is regarded as legible unless the addressee
      telephones the sender within 24 hours after the transmission is
      received or regarded as received under clause 9.2(c) and informs the
      sender that it is not legible.

            

    

     

    
      	
              9.3

            	
              Governing
      law and jurisdiction

            

    

     

    
      	
              (a)

            	
              This
      agreement is governed by the laws of the Province of Ontario and the laws
      of Canada which are applicable in the Province of Ontario, other than any
      laws which would result in the imposition of the laws of another
      jurisdiction.

            

    

     

    
      	
              (b)

            	
              Each
      party irrevocably submits to the non-exclusive jurisdiction of the federal
      courts of the Province of Ontario.

            

    

     

    
      	
              (c)

            	
              Each
      party irrevocably waives any objection to the venue of any legal process
      on the basis that the process has been brought in an inconvenient
      forum.

            

    

     

    
      	
              (d)

            	
              Each
      party irrevocably waives any immunity in respect of its obligations under
      this agreement that it may acquire from the jurisdiction of any court or
      any legal process for any reason including, but not limited to, the
      service of notice, attachment before judgment, attachment in aid of
      execution or execution.

            

    

     

    
      	
              9.4

            	
              Prohibition
      and enforceability

            

    

     

    
      	
              (a)

            	
              Any
      provision of, or the application of any provision of, this agreement which
      is prohibited in any jurisdiction is, in that jurisdiction, ineffective
      only to the extent of that
prohibition.

            

    

     

    
      	
              (b)

            	
              Any
      provision of, or the application of any provision of, this agreement which
      is void, illegal or unenforceable in any jurisdiction does not affect the
      validity, legality or enforceability of that provision in any other
      jurisdiction or of the remaining provisions in that or any other
      jurisdiction.

            

    

     

    
      	
              9.5

            	
              Waivers

            

    

     

    
      	
              (a)

            	
              Waiver
      of any right arising from a breach of this agreement or of any Power
      arising upon default under this agreement must be in writing and signed by
      the party granting the waiver.

            

    

     

    
      	
              (b)

            	
              A
      failure or delay in exercise, or partial exercise,
  of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              a
      right arising from a breach of this agreement;
  or

            

    

     

    
      	
               
      

            	
              (2)

            	
              a
      Power created or arising upon default under this
  agreement,

            

    

     

    does not
result in a waiver of that right or Power.

     

    
      	
              (c)

            	
              A
      party is not entitled to rely on a delay in the exercise or non-exercise
      of a right or Power arising from a breach of this agreement or on a
      default under this agreement as constituting a waiver of that right or
      Power.

            

    

     

    
      	
              (d)

            	
              A
      party may not rely on any conduct of another party as a defence to
      exercise of a right or Power by that other
  party.

            

    

     

    
      	
              (e)

            	
              This
      clause may not itself be waived except by
  writing.

            

    

     

    
      	
              9.6

            	
              Variation

            

    

     

    A
variation of any term of this agreement must be in writing and signed by the
parties.

     

    
      	
              9.7

            	
              Cumulative
      rights

            

    

     

    The
Powers are cumulative and do not exclude any other rights, powers, authorities,
discretions or remedies of a Creditor.

    
       

      
        
          	
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      15

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        
          
            
              
                
                  
                    
                      	
                              

                            	
                              9   General

                            

                    

                  

                

              

            

          

        

      

       

    

    
      	
              9.8

            	
              Assignment

            

    

     

    
      	
              (a)

            	
              A
      Creditor may assign or novate any of its rights and obligations under this
      agreement to any person without the consent of the other Creditors or APG
      if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              any
      necessary prior Authorisation is
obtained;

            

    

     

    
      	
               
      

            	
              (2)

            	
              the
      assignment or novation is to a person in the RMB group of companies or the
      Macquarie group of companies (as applicable) (which term includes any
      person, partnership or corporate entity in that group); and

            

    

     

    
      	
               
      

            	
              (3)

            	
              it
      notifies the  Borrower and each other
  Creditor.

            

    

     

    
      	
              (b)

            	
              APG
      may not assign any of its rights under this agreement without the prior
      written consent of each of the
Creditors.

            

    

     

    
      	
              9.9

            	
              Attorneys

            

    

     

    Any
Attorney executing this agreement states that the Attorney has no knowledge of
the revocation of the power of attorney appointing that Attorney.

     

    
      	
              9.10

            	
              Security
      Agent’s limitation of liability
protection

            

    

     

    
      	
              (a)

            	
              Limitation of
      liability

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Security Agent enters into this agreement only in its capacity as security
      agent under the Security Agent Agreement and in no other
      capacity.

            

    

     

    
      	
               
      

            	
              (2)

            	
              A
      liability arising under or in connection with this agreement (whether that
      liability arises under a specific provision of this agreement, for breach
      of contract or otherwise) can be enforced against the Security Agent only
      to the extent to which it can be satisfied out of property of the Fund out
      of which the Security Agent is actually indemnified for the
      liability.

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      limitation of the Security Agent’s liability under this clause 9.10
      applies despite any other provision of this agreement (other than
      clause 9.10(c)) and extends to all liabilities and obligations of the
      Security Agent in relation to any representation, warranty, conduct,
      omission, agreement or transaction related to this
    agreement.

            

    

     

    
      	
              (b)

            	
              No action against the Security
      Agent personally

            

    

     

    The
parties may not:

     

    
      	
               
      

            	
              (1)

            	
              sue
      the Security Agent personally;

            

    

     

    
      	
               
      

            	
              (2)

            	
              seek
      the appointment of a liquidator, administrator, receiver or similar person
      to the Security Agent; or

            

    

     

    
      	
               
      

            	
              (3)

            	
              prove
      in any liquidation, administration or arrangement of or affecting the
      Security Agent.

            

    

     

    
      	
              (c)

            	
              Exception

            

    

     

    The
provisions of this clause 9.10 will not apply to any obligation or
liability of the Security Agent to the extent that it is not satisfied because
there is a reduction in the extent, or an extinguishment, of the Security
Agent’s indemnification out of the assets of the Fund, as a result of the
Security Agent’s fraud, gross negligence or breach of trust.

    
       

      
        
          	
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      16

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    Signing
page

     

    Executed
as an agreement

     

    
      

    

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            First
      Creditor

                             

                          
	 
      	
                            Signed
      for

                            RMB
      Resources Inc.

                            By
      its authorised officer

                          
	 	 
	
                            By:

                          	
                            /s/ Richard A Winters

                          
	 
      	
                            Authorised
      Officer

                          
	 	 
	
                            print name

                          	
                            Richard A Winters

                          
	
                             

                            title

                          	
                             

                            President

                          

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  First
      Creditor

                                
	 	 
	 
      	
                                  Signed
      by

                                  RMB
      Australia Holdings Limited

                                  by

                                
	 	 
	
                                  By:

                                	
                                  /s/ Michael P.C. Brogan

                                
	 
      	
                                  Company
      Secretary/Director

                                
	 	 
	
                                  print
      name

                                	
                                  Michael P.C.
      Brogan

                                
	
                                   

                                  sign
      here

                                	
                                   

                                  /s/ Gregory Gay

                                
	 
      	
                                  Director

                                
	
                                   

                                  print
      name

                                	
                                   

                                  Gregory
Gay

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  Priority
      agreement    Page
      17

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  

                	
                  Signing
page

                

        

      

    

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            First
      Creditor

                          
	 	 
	 
      	
                            Signed
      for

                            Macquarie
      Bank Limited

                            by
      its attorneys

                          
	 	 
	
                            sign
      here

                          	
                            /s/ Katie Chol

                          	 
      	
                            /s/ Julia Mathison

                          
	 
      	
                            Attorney

                          	 
      	
                            Attorney

                          
	 	 	 	 
	
                            print
      name

                          	
                            Katie Chol, Division
    Director

                          	 
      	
                            Julia Mathison, Senior
    Lawyer

                          
	 	 
	 
      	
                            in
      the presence of

                          
	 	 
	
                            sign
      here

                          	
                            /s/ Neshaat Mirzaie

                          	 
      	
                            /s/ Neshaat Mirzaie

                          
	 
      	
                            Witness

                          	 
      	
                            Witness

                          
	 	 	 	 
	
                            print
      name

                          	
                            Neshaat Mirzaie, Lawyer

                          	 
      	
                            Neshaat Mirzaie,
  Lawyer

                          

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  Priority
      agreement    Page
      18

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
        
          
            	
                    

                  	
                    Signing
page

                  

          

        

      

       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  Second
      Creditor

                                
	 	 
	 
      	
                                  Signed
      for

                                  RMB
      Resources Inc.

                                  By
      its authorised officer

                                
	 	 
	
                                  By:

                                	
                                  /s/ Richard A Winters

                                
	 
      	
                                  Authorised
      Officer

                                
	 	 
	
                                  print
      name

                                	
                                  Richard A Winters

                                
	 	 
	
                                  title

                                	
                                  President

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        Second
      Creditor

                                      
	 	 
	 
      	
                                        Signed
      by

                                        RMB
      Australia Holdings Limited

                                        by

                                      
	 	 
	
                                        sign here 

                                      	
                                        /s/ Michael P.C.
      Brogan

                                      
	 
      	
                                        Company
      Secretary/Director

                                      
	 	 
	
                                        print
      name

                                      	
                                        Michael P.C.
      Brogan

                                      
	 	 
	
                                        sign here 

                                      	
                                        /s/ Gregory Gay

                                      
	 
      	
                                        Director

                                      
	 	 
	
                                        print
      name

                                      	
                                        Gregory
Gay

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  Priority
      agreement    Page
      19

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  

                	
                  Signing
page

                

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  APG

                                
	 	 
	 
      	
                                  Signed
      for

                                  Apollo
      Gold Corporation

                                  By
      its authorised signatory

                                
	 	 
	
                                  By:

                                	
                                  /s/ R D Russell

                                
	 
      	
                                  Authorised
      Signatory

                                
	 	 
	
                                  print
      name

                                	
                                  R David Russell

                                
	 	 
	
                                  title

                                	
                                  President and
CEO

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
       

      
        
          	
                  Priority
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      20Unassociated Document

    NOTE
PURCHASE AGREEMENT

     

    This Note
Purchase Agreement (this “Agreement”), dated as
of December 10, 2008, is entered into by and among Vector Investment Fund LLC, a
Delaware limited liability company (the “Borrower”), Centurion
Credit Group Master Fund L.P., a Delaware limited partnership (the “Lender”) and Vector
Intersect Security Acquisition Corp., a Delaware corporation (the “Company”).

     

    RECITALS

     

    WHEREAS, the Company is a
blank check company that was formed to acquire, through merger, capital stock
exchange, asset acquisition or other similar business combination, one or more
businesses in the homeland security, national security and/or command and
control industries or businesses relating to the manufacture of products for use
in such industries, and, as such (a “Business
Combination”), the Company entered into a stock purchase agreement, dated
February 14, 2008, as amended, by and among the Company, Cyalume Technologies,
Inc. (“Cyalume”), Cyalume
Acquisition Corp. and GMS Acquisition Partners Holdings, LLC, the sole
stockholder of Cyalume, pursuant to which Cyalume will become a wholly owned
subsidiary of the Company (the “Acquisition”);

     

    WHEREAS, on or before December
26, 2008, the Company will hold a special stockholders’ meeting (the “Stockholders’
Meeting”) to vote on the Acquisition, at which meeting a majority of the
shares of the Company’s Common Stock (as defined below) must be voted to
authorize the Acquisition, and public stockholders owning less than 20% of the
shares of Common Stock sold in the Company’s April 2007 initial public offering
(the “Initial Public
Offering”) exercise their redemption rights (the “Redemption Rights”),
as provided for in the Company’s Fourth Amended and Restated Certificate of
Incorporation (the “Charter”);

     

    WHEREAS, pursuant to the terms
of this Agreement, the Lender will provide a loan (the “Loan”) to the
Borrower, an entity controlled by an affiliate of the Company, in the principal
amount of up to Twelve Million Dollars (US$12,000,000) as evidenced by a
promissory note (the “Note”), the proceeds
of which may be employed exclusively to purchase Common Stock (as defined below)
in privately negotiated transactions from not more than ten (10) of the
Company’s Public Stockholders (as defined below) who hold Common Stock sold in
the Initial Public Offering, who would otherwise vote against the Acquisition,
and, accordingly, the Company will benefit from the Loan;

     

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

     

    ARTICLE
I

     

    DEFINITIONS

     

    SECTION
1.1  Definitions.  (a)  As
used in this Agreement, the following terms (whether plural or singular) shall
each have the respective meanings set forth in this Article.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Acquisition” has the
meaning set forth in the recitals.

     

    “Business Combination”
has the meaning set forth in the recitals.

     

    “Business Day” means a
day on which the New York Stock Exchange is open for trading for three or more
hours.

     

    “Charter” has the
meaning set forth in the recitals.

     

    “Closing” means when
the Note is delivered to the Lender and executed Transaction Documents, the
Prepaid Fee Note, and Legal Opinion are delivered as contemplated
therein.

     

    “Closing Date” means
the date on which the Closing occurs.

     

    “Common Stock” means
shares of common stock of the Company, par value $.001 per share.

     

    “Cyalume” has the
meaning set forth in the recitals.

     

    “Debt” means, as
applied to any Person, (i) all indebtedness for borrowed money, (ii) that
portion of obligations with respect to capital leases which is properly
classified as a liability on a balance sheet in conformity with US GAAP, (iii)
notes payable and drafts accepted representing extensions of credit whether or
not representing obligations for borrowed money, (iv) any obligation owed for
all or any part of the deferred purchase price of property or services which
purchase price is (y) due more than six months from the date of incurrence of
the obligation in respect thereof, or (z) evidenced by a note or similar written
instrument and (v) all indebtedness secured by any Lien on any property or asset
owned or held by that Person regardless of whether the indebtedness secured
thereby shall have been assumed by that Person or is nonrecourse to the credit
of that Person.

     

    “Escrow Agent” means
Collateral Agents, LLC.

     

    “Escrow Agreement”
means the escrow agreement, dated as of the date hereof, by and among the
Borrower, the Lender, the Company and Collateral Agents, LLC, as escrow
agent.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules promulgated
thereunder.

     

    “Financing Fee” has
the meaning set forth in Section 2.2.

     

    “Governmental
Authority” means the government of any nation, state, province, city,
locality or other political subdivision thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Holder” has the
meaning set forth in Section 9.2.

     

    “Initial Interest
Payment” means the initial interest payment payable to the Lender in the
amount of Twenty Thousand Dollars (US$20,000) as described in Section
2.2.

     

    “Initial Public
Offering” has the meaning set forth in the recitals.

     

    “IPO Registration
Statement” means the Company’s registration statement on Form S-1, which
was declared effective by the SEC on April 25, 2007.

     

    “Legal Opinion” has
the meaning set forth in Section 3.2(b).

     

    “Lien” means any lien,
mortgage, deed of trust, pledge, security interest, charge or encumbrance of any
kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof, and any agreement to give any security
interest).

     

    “Liquidation” has the
meaning set forth in Section 8.2.

     

    “Liquidation Rights”
means the right of the Public Stockholders of the Company to receive their pro
rata share in the Trust Account (as hereinafter defined), and certain other
assets of the Company, to the extent applicable, upon the dissolution of the
Company and the liquidation of the Trust Account as provided for in Paragraph
(D) of Article Fifth of the Charter.

     

    “Loan” has the meaning
set forth in the recitals.

     

    “Note” has the meaning
set forth in the recitals.

     

    “Note
Shares”  means the shares of Common Stock which were originally
issued by the Company in the Initial Public Offering and purchased with the
proceeds of the Loan pursuant to Section 7.1 of this Agreement, the holders of
record of such shares upon the effective date of the Liquidation to be deemed to
be Public Stockholders and, accordingly, have Liquidation Rights, subject to
compliance with applicable conditions thereof.

     

    “Obligations” means
and includes all loans, advances, Debts, liabilities and obligations, howsoever
arising, owed by the Borrower to the Holder of every kind and description
(whether or not evidenced by any note or instrument and whether or not for the
payment of money), now existing or hereafter arising under or pursuant to the
terms of the Transaction Documents, including, all interest, fees, charges,
expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable
to and payable by the Borrower hereunder and thereunder, in each case, whether
direct or indirect, absolute or contingent, due or to become due, and whether or
not arising after the commencement of a proceeding under applicable bankruptcy
laws and regulations (including post-petition interest) and whether or not
allowed or allowable as a claim in any such proceeding.

     

    “Person” or “person” means an
individual or a corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
Governmental Authority (or an agency or political subdivision thereof) or other
entity of any kind.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Piggyback
Registration” has the meaning set forth in Section 9.2.

     

    “Prepaid Fee Note” has
the meaning set forth in Section 2.2.

     

    “Proxy Statement” has
the meaning set forth in Section 4.1.

     

    “Public Reports” means
all public filings made by the Company with the SEC.

     

    “Public Stockholders”
means the then holders of the 7,312,500 shares of Common Stock which were
originally issued by the Company in the Initial Public Offering and are
currently publicly traded, on any applicable record date so
designated.

     

    “Purchase Price” has
the meaning set forth in Section 2.1.

     

    “Redemption Rights”
has the meaning set forth in the recitals.

     

    “Registrable
Securities” has the meaning set forth in Section 9.1.

     

    “Requirement(s) of
Law” as to any Person, means any law, statute, treaty, rule, regulation,
right, privilege, qualification, license or franchise or determination of an
arbitrator or a court or other Governmental Authority or stock exchange, in each
case applicable or binding upon such Person or any of its property or to which
such Person or any of its property is subject or pertaining to any or all of the
transactions contemplated or referred to herein.

     

    “SEC” means the
Securities and Exchange Commission.

     

    “Section 9.7 Indemnified
Party” has the meaning set forth in Section 9.7.

     

    “Section 9.7 Indemnifying
Party” has the meaning set forth in Section 9.7.

     

    “Securities” means the
Note, the Warrant, the Warrant Shares, and the Stock Grant.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules promulgated
thereunder.

     

    “Security Agreement”
has the meaning set forth in Section 10.11.

     

    “Stock Pledge
Agreement” has the meaning set forth in Section 10.11.

     

    “Stock Grant” has the
meaning set forth in Section 8.4.

     

    “Stockholders’
Meeting” has the meaning set forth in the recitals.

     

    “Transaction
Document(s)” means this Agreement, the Note, the Escrow Agreement, the
Warrant, the Security Agreement, the Stock Pledge Agreement, and all schedules,
exhibits, annexes and attachments thereto.

    
      
         

      

      
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    “Trust Account” means
the trust account at JP Morgan Chase NY Bank maintained by Trustee, in which
$58,030,000 was deposited following the consummation of the Initial Public
Offering.

     

    “Trustee” means
American Stock Transfer and Trust Company in its capacity as trustee of the
Trust Account.

     

    “Underwriters” has the
meaning set forth in Section 10.1.

     

    “Underwriters’ Maximum
Number” has the meaning set forth in Section 9.3.

     

    “Warrant” has the
meaning set forth in Section 8.4.

     

    “Warrant Shares” has
the meaning set forth in Section 8.4.

     

    ARTICLE
II

     

    PURCHASE
AND SALE OF THE NOTE

     

    SECTION
2.1  Purchase and
Sale.  Subject to and upon the terms and conditions hereof, the
Lender hereby agrees to purchase from the Borrower the Note in the principal
amount of up to Twelve Million Dollars (US$12,000,000) (the “Purchase Price”), and
the Borrower shall deliver the Note to the Lender on the Closing Date. 

     

    SECTION
2.2 Loan Fees.  Cyalume
shall pay the Lender a financing fee in the amount of Two Hundred Thousand
Dollars (US$200,000) (the “Financing Fee”) and
the Initial Interest Payment.  The Financing Fee is to be paid by
Cyalume on the first to occur of (i) the initial drawdown of the Loan, (ii) the
date of the Stockholders’ Meeting, or (iii) December 29, 2008.  On the
Closing Date, Cyalume will deliver to Lender a promissory note (“Prepaid Fee Note”) in the form
of Exhibit H hereto.  The Initial Interest Payment shall be paid on
the Closing Date.  Borrower hereby unconditionally guarantees payment
of the Financing Fee when due.  To the extent that Borrower never
draws down on the Note, or the actual interest accrued on the Note is less than
Twenty Thousand Dollars (US$20,000), then Lender shall return to Borrower the
full Twenty Thousand Dollars (US$20,000), or the difference between Twenty
Thousand Dollars (US$20,000) and the actual amount of interest accrued under the
Note through the Maturity Date.  The Company hereby unconditionally
guarantees the payment of interest accrued under the Note.

     

    ARTICLE
III

     

    CLOSING
DELIVERIES

     

    SECTION
3.1  Closing
Deliveries by Borrower.  On the Closing Date, the Borrower
shall deliver the following items:

     

    (a)           the
Note;

    
      
         

      

      
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    (b)           a
certificate of its Sole Member, dated the Closing Date, certifying that (a)
attached thereto are true and correct copies of its organizational documents,
which are in full force and effect and have not been amended, supplemented,
revoked or repealed since the date of certification; and (b) attached thereto
are true and correct copies of resolutions duly adopted by its board of
directors or similar governing body and continuing in effect, in form and
substance reasonably satisfactory to the Lender, which authorize the execution,
delivery and performance of this Agreement and the Transaction Documents and the
consummation of the transactions contemplated hereby and thereby;

     

    (c)           a
certificate of its Sole Member certifying that each of the representations and
warranties of Article V have been satisfied as of the Closing Date;
and

     

    (d)           the
duly executed Escrow Agreement, Stock Pledge Agreement, and Security
Agreement.

     

    SECTION
3.2  Closing
Deliveries by Company.  On the Closing Date, the Company shall
deliver the following items:

     

    (a)           a
certificate of its Secretary, Assistant Secretary or other authorized officer,
dated the Closing Date, certifying that (a) attached thereto are true and
correct copies of its organizational documents, which are in full force and
effect and have not been amended, supplemented, revoked or repealed since the
date of certification; (b) attached thereto are true and correct copies of
resolutions duly adopted by its board of directors or similar governing body and
continuing in effect, in form and substance reasonably satisfactory to the
Lender, which authorize the execution, delivery and performance of this
Agreement and the Transaction Documents and the consummation of the transactions
contemplated hereby and thereby; and (c) attached thereto is an incumbency
certificate executed by its Secretary, Assistant Secretary or other authorized
officer, dated the Closing Date, certifying the incumbency, signatures and
authority of its officers authorized to execute and deliver this Agreement and
the Transaction Documents on its behalf and perform its obligations hereunder
and thereunder; and

     

    (b)           a
legal opinion of Loeb & Loeb LLP, counsel for the Company, dated the Closing
Date, addressed to the Lender, substantially in the form attached hereto as
Exhibit
A.

     

    SECTION
3.3  Closing
Deliveries by Lender.  On the Closing Date, the Lender shall
deliver the duly executed Escrow Agreement.

     

    ARTICLE
IV

     

    REPRESENTATIONS
AND WARRANTIES OF THE LENDER

     

    SECTION
4.1  Representations and
Warranties of the Lender.  The Lender represents and warrants
to the Borrower that each of the following statements will be true on the date
hereof and the Closing Date:

     

    (a)           The
Lender has been duly formed and is validly existing in the state of its
formation with all requisite power and authority to enter into this Agreement,
to carry out the provisions and conditions hereof, and to consummate the
transactions contemplated hereby;

    
      
         

      

      
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    (b)           The
execution, delivery and performance of this Agreement and the Escrow Agreement
by the Lender has been authorized by all necessary action and this Agreement is
a legal, valid and binding agreement of the Lender enforceable against the
Lender in accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally and subject, as to
enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity);

     

    (c)           The
Lender is acquiring the Securities for the Lender’s own account as principal and
not with a view to, or for, resale, distribution or fractionalization thereof,
in whole, or in part, subject, however, to any Requirement of Law that the
disposition of such Lender’s property shall at all times be within its
control;

     

    (d)           The
Lender understands that (i) it must bear the economic risk of an investment in
the Securities for an indefinite period of time because, among other reasons,
the offer and sale of the Securities are intended to be exempt from registration
under the Securities Act by virtue of Section 4(2) of the Securities Act and are
intended to be exempt from registration under any applicable state securities
laws, and (ii) notwithstanding the consent of the Company, the Securities may
not be sold, transferred, hypothecated or pledged, except pursuant to an
effective registration statement under the Securities Act and under any
applicable state securities law, or pursuant to an available exemption from the
registration requirements of the Securities Act and any applicable state
securities laws, in all cases established to the reasonable satisfaction of the
Company, and that the Company is under no obligation to register the Securities,
except as provided in Article IX of this Agreement;

     

    (e)           The
Lender (i) has been furnished with, and hereby acknowledges the receipt of, a
copy of the documents which have been provided to the Lender upon the Lender’s
request concerning the Borrower and the Company, (ii) is an “accredited
investor,” as defined in Rule 501 promulgated under the Securities Act (which
definition is set forth on Exhibit B hereto),
(iii) understands the risks of, and other considerations relating to, a purchase
of the Securities and has read the Risk Factors relating to the Company
contained in the Company’s Preliminary Proxy Statement filed with the SEC on
November 14, 2008 (the “Proxy Statement”),
(iv) understands that, to the extent that any information set forth in the
material previously presented to it is inconsistent with the provisions of this
Agreement, the provisions of this Agreement shall prevail and supersede such
prior information, and (v) the Lender has been given the opportunity to obtain
such additional information that it believes is necessary to verify the accuracy
of the information contained in the documents referred to in clause (i)
above;

     

    (f)           The
Lender has such knowledge and experience in financial affairs such that it is
capable of evaluating the merits and risks of purchasing the Securities, and the
Lender has not relied in connection with this investment upon any
representations, warranties or agreements other than those set forth in this
Agreement;

     

    (g)           With
respect to the tax and other economic considerations related to the Securities,
the Lender has relied only on the advice of the Lender’s own tax, legal,
accounting and financial advisers;

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (h)           The
Lender consents to the placement of a legend on any certificate or other
document evidencing the Note and/or Warrant, as set forth on Exhibits C and D attached hereto,
respectively;

     

    (i)           The
Lender represents that the address furnished by the Lender in the Investor
Questionnaire attached hereto as Exhibit E is the
Lender’s principal residence if he is an individual or its principal business
address if it is a corporation or other entity.  The Lender certifies
under penalties of perjury that (A) the Lender’s name, taxpayer identification
or social security number and address provided in the Investor Questionnaire are
correct, and (B) the Lender is not a non-resident alien individual, foreign
corporation, foreign partnership, foreign trust or foreign estate (as defined in
the Internal Revenue Code of 1986, as amended);

     

    (j)           The
Lender represents that neither the Lender nor any person having direct or
indirect beneficial interests in the Securities to be acquired pursuant to this
Agreement appears on the Specially Designated Nationals and Blocked Persons List
of the Office of Foreign Assets Control of the United States Department of the
Treasury or has been designated a “suspected terrorist” as defined in Executive
Order 13224. The Lender further represents that the Lender does not know or have
any reason to suspect that (A) the monies used to fund the Lender’s investment
in the Securities have been or will be derived from or related to any illegal
activities or (B) the proceeds, if any, from the Lender’s investment in the
Securities will be used to finance any illegal activities. Lender further
understands that the Borrower or the Company may release information about
Lender to proper authorities if the Borrower or the Company determines that it
is in the best interests of the Borrower or the Company in light of relevant
rules and regulations under the laws referenced above;

     

    (k)           The
Lender understands and acknowledges that the Securities have not been
recommended by any federal or state securities commission or regulatory
authority, that the foregoing authorities have not confirmed the accuracy or
determined the adequacy of any information concerning the Borrower or the
Company that has been supplied to the Lender and that any representation to the
contrary is a criminal offense; and

     

    (l)           The
Lender represents that the Lender was not induced to invest in the Securities by
any form of general solicitation or general advertising including, but not
limited to, the following: (a) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over the news or radio; and (b) any seminar or meeting whose attendees were
invited by any general solicitation or advertising.

     

    ARTICLE
V

     

    REPRESENTATIONS
AND WARRANTIES

    OF
THE BORROWER

     

    SECTION
5.1  Representations and
Warranties of the Borrower.  The Borrower represents and
warrants to the Lender that each of the following statements will be true on the
date hereof and the Closing Date:

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (a)           The
Borrower has been duly formed and is validly existing under the laws of the
state of Delaware, with all requisite power and authority to enter into this
Agreement, to carry out the provisions and conditions hereof, and to consummate
the transactions contemplated hereby; and

     

    (b)           The
execution, delivery and performance of this Agreement, the Note and the Escrow
Agreement by the Borrower has been authorized by all necessary action and this
Agreement is a legal, valid and binding agreement of the Borrower enforceable
against the Borrower in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally and subject, as
to enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

     

    ARTICLE
VI

     

    REPRESENTATIONS
AND WARRANTIES

    OF
THE COMPANY

     

    SECTION
6.1  Representations and
Warranties of the Company.  The Company represents and warrants
to the Lender that each of the following statements will be true on the date
hereof and the Closing Date:

     

    (a)           The
Company has been duly formed and is validly existing under the laws of the state
of Delaware, with all requisite power and authority to enter into this
Agreement, to carry out the provisions and conditions hereof, and to consummate
the transactions contemplated hereby;

     

    (b)           The
execution, delivery and performance of this Agreement by the Company has been
authorized by all necessary action and this Agreement is a legal, valid and
binding agreement of the Company enforceable against the Company in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally and subject, as to enforceability, to general
principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity); and

     

    (c)           Each
Public Report was at the time of its filing, in substantial compliance with the
requirements of its respective form as required under the Exchange Act, and none
of the Public Reports, as of their respective filing dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  The Company
has timely filed all Public Reports required to have been filed by the Company
by any Governmental Authority.

     

    (d)           The
Securities upon issuance:

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (i)           are,
or will be, free and clear of any security interests, liens, claims or other
encumbrances, subject only to restrictions upon transfer under the Securities
Act and any applicable state securities laws;

     

    (ii)           have
been, or will be, duly and validly authorized and on the dates of issuance of
the Stock Grant and the Warrant Shares, such Stock Grant and Warrant Shares
(assuming, in the case of the Warrant Shares, payment of the exercise price)
will be duly and validly issued, fully paid and non-assessable and if registered
pursuant to the Securities Act and resold pursuant to an effective registration
statement or exempt from registration will be free trading, unrestricted and
unlegended;

     

    (iii)           will
not have been issued or sold in violation of any preemptive or other similar
rights of the holders of any securities of the Company or rights to acquire
securities of the Company;

     

    (iv)           will
not subject the holders thereof to personal liability by reason of being such
holders; and

     

    (v)           assuming
the representations warranties of the Subscribers as set forth in Article IV
hereof are true and correct, will not result in a violation of Section 5 under
the Securities Act.

     

    (e)           Neither
the Company, nor to its knowledge, any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer
or sale of the Securities.

     

    (f)           Since
April 25, 2007, except as disclosed in the Public Reports, no event or
circumstance has occurred or exists with respect to the Company or its
businesses, properties, operations or financial condition, that, under
applicable law, rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so publicly
announced or disclosed in the Public Reports.  Other than the filing
of a Current Report on Form 8-K with respect to certain aspects of the
transactions contemplated by the Transaction Documents, which the Company
undertakes to file prior to 5:30 P.M., New York City time, on the third Business
Day following the Closing Date, the Company is not required to file any report
with the SEC or amend any Public Report as a result of the transactions
described in the Transaction Documents.

     

    ARTICLE
VII

     

    COVENANTS
OF THE BORROWER

     

    SECTION
7.1  Use of
Proceeds.  The Borrower shall apply the proceeds from the sale
of the Note exclusively towards the purchase of the Note Shares at a gross
purchase price of no greater than $8.03 per share and for no other
purpose.

    
      
         

      

      
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    ARTICLE
VIII

     

    COVENANTS
OF THE COMPANY

     

    SECTION
8.1  Stockholder
Vote.  The Company shall hold the Stockholders’ Meeting on or
prior to December 26, 2008, at which meeting the stockholders’ shall be
permitted to vote on the Acquisition.

     

    SECTION
8.2  Liquidation Proxy
Statement.  In the event that the Acquisition is not approved
at the Stockholders’ Meeting, the Company hereby covenants that it will not take
any action in furtherance of an alternative Business Combination and shall file
a proxy statement with the SEC in connection with the dissolution of the Company
and the liquidation of the Trust Account, as contemplated in Paragraph (D) of
Article Fifth of the Charter (the “Liquidation”), which
proxy statement shall be filed with the SEC within ten (10) days following the
Stockholders’ Meeting.

     

    SECTION
8.3  Liquidation
Vote.  In the event that the Acquisition is not approved at the
Stockholders’ Meeting, the Borrower shall cause the Escrow Agent to vote the
Note Shares in favor of the Liquidation.

     

    SECTION
8.4 Stock
Grant and
Warrants.  On the Closing Date, in consideration of providing
the Loan to the Borrower, the Company shall issue the Lender (i) Forty Thousand
(40,000) shares of Common Stock (the “Stock Grant”) and
(ii) a warrant to purchase One Hundred Thousand (100,000) shares of Common
Stock, exercisable at an exercise price of $8.00 per share, the form of which is
attached hereto as Exhibit D (the “Warrant”).  Lender
acknowledges that it shall not be deemed to be a Public Stockholder with respect
to the Stock Grant or shares issuable upon exercise of the Warrant (the “Warrant Shares”) and,
accordingly, shall have no Liquidation Rights or Redemption Rights with respect
to the Stock Grant and Warrant Shares and hereby waives any and all rights to
receive a distribution from the Trust Account in relation to owning such
shares.

     

    ARTICLE
IX

     

    REGISTRATION
RIGHTS

     

    SECTION
9.1  Demand
Rights.  (i) At any time commencing upon one year from the date
of this Agreement, the Holder may demand registration of up to 1/3 of the
Registrable Securities (defined below); (ii) at any time commencing upon
eighteen months from the date of this Agreement, the Holder may demand
registration of up to an additional 1/3 of the Registrable Securities; and (iii)
at any time commencing upon two years from the date of this Agreement, the
Holder may demand that any remaining Registrable Securities be registered for
trading. The Company shall, after each such demand, use its commercially
reasonable efforts to cause a registration statement to be filed pursuant to
this Section to become effective as soon as reasonably practicable thereafter
and shall use its commercially reasonable efforts to keep such registration
effective until, subject to the terms and provisions of this Agreement, the
earlier of the date when (i) all the Registrable Securities covered by the
registration statement have been sold pursuant thereto or otherwise or (ii) the
Registrable Securities may be publicly sold without volume restrictions under
Rule 144 (or any similar provisions then in force) of the Securities
Act.  For the purposes of this Agreement, the term “Registrable
Securities” shall mean the Common Stock issuable upon exercise of the
Warrant and the Common Stock issued pursuant to the Stock Grant that has not
been previously sold by the Lender or included in a then effective registration
statement.

    
      
         

      

      
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    SECTION
9.2  Rights
to Piggyback.

     

    (a)           If
(and on each occasion that) the Company proposes to register any of its
securities under the Securities Act, either for the Company’s own account or for
the account of any of its stockholders (other than pursuant to a Form S-4 or
Form S-8 or comparable form and other than pursuant to a demand registration
right granted to other persons to the extent that such rights prohibit the
Company from including securities of any other person in such registration
statement) (each such registration not withdrawn or abandoned prior to the
effective date thereof being herein called a “Piggyback
Registration”), the Company will give written notice to the Borrower (the
“Holder”) of
such proposal not later than ten (10) days following the receipt by the Company
of notice of exercise of any registration rights by any persons or twenty (20)
days prior to filing of a registration statement with the SEC, whichever shall
be earlier.

     

    (b)           Subject
to the provisions contained in Section 9.3 and in the last sentence of this
paragraph (b), (A) the Company will be obligated and required to include in each
Piggyback Registration (i) for which the Holder is given notice between one year
and eighteen months after the date of this Agreement, up to 1/3 of the
Registrable Securities, (ii) for which the Holder is given notice between
eighteen months and two years after the date of this Agreement, up to and
additional 1/3 of the Registrable Securities, and (iii) for which the Holder is
given notice two years or more after the date of this Agreement, any remaining
Registrable Securities, with respect to which, in each case, the Company shall
have received, within fifteen (15) days after the date on which the Company
shall have given written notice of such Piggyback Registration to the Holder,
the written requests of the Holder for inclusion in such Piggyback Registration,
and (B) the Company will use commercially reasonable efforts in good faith to
effect promptly the registration of all such Registrable
Securities.  The Holder shall be permitted to withdraw all or any part
of the Registrable Securities of the Holder from any Piggyback Registration at
any time prior to the effective date of such Piggyback Registration unless the
Holder shall have entered into a written agreement with the Company’s
underwriters establishing the terms and conditions under which the Holder would
be obligated to sell such Registrable Securities in such Piggyback
Registration.  The Company will not be obligated or required to
include any shares in any registration effected solely to implement an employee
benefit plan or a transaction to which Rule 145 of the SEC is
applicable.

    
      
         

      

      
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    SECTION
9.3 Priority on Piggyback
Registrations.  If a Piggyback Registration is an underwritten
registration, and the managing underwriters shall give written advice to the
Company of a number of securities to which such registration should, in the
opinion of the managing underwriters of such registration in the light of
marketing factors, be limited (the “Underwriters’ Maximum
Number”), then: if such Piggyback Registration is initiated by the
Company:  (i) the Company shall be entitled to include in such
registration that number of securities which the Company proposes to offer and
sell for its own account in such registration which does not exceed the
Underwriters’ Maximum Number; (ii) if the Underwriters' Maximum Number exceeds
the number of securities to be sold pursuant to clause (i) above, then the
Company will be obligated and required to include in such registration that
number of Registrable Securities requested by the Holder thereof to be included
in such registration and which does not exceed such excess and such securities
to be registered shall be allocated pro rata among the Holder and any other
person to whom the Company has granted piggyback registration
rights.  If such Piggyback Registration is initiated by persons
exercising demand registration rights, (i) persons exercising demand
registration rights shall be entitled to include in such registration that
number of securities which such persons propose to offer and sell that do not
exceed the Underwriters’ Maximum Number; (ii) if the Underwriters' Maximum
Number exceeds the number of securities to be sold pursuant to clause (i) above,
then the Company will be obligated and required to include in such registration
that number of Registrable Securities requested by the Holder thereof to be
included in such registration and which do not exceed such excess and such
securities to be registered shall be allocated pro rata among the Holder and any
other person to whom the Company has granted piggyback registration
rights.

     

    SECTION
9.4  Selection of
Underwriters.  In any Piggyback Registration, the Company shall
have the sole right to select the investment bankers and managing underwriters
in such registration.

     

    SECTION
9.5  Right
to Terminate Registration.  The Company shall have the right to
terminate or withdraw any Piggyback registration initiated by it under Section
9.2 prior to the effectiveness of such registration whether or not the Holder
has elected to include shares in such registration.

     

    SECTION
9.6  Procedures on
Registration.  If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the Securities Act, the Company will, as expeditiously as possible:

     

    (a)           respond
as promptly as commercially reasonable to any comments received from the SEC,
and use its commercially reasonable efforts to cause such registration to become
effective, and promptly provide to the Stockholder Representative copies of all
filings and SEC letters of comment relating thereto provided that such letters
do not contain material non-public information, in which case such letters may
be redacted by the Company;

     

    (b)           furnish
to the Holder such number of copies of the registration statement and the
prospectus included therein as the Holder reasonably may request to facilitate
the public sale or disposition of the Registrable Securities covered by such
registration statement;

     

    (c)           use
its commercially reasonable efforts to register or qualify the Holder’s
Registrable Securities covered by such registration under the securities or
“blue sky” laws of such jurisdictions within the United States as the Holder may
reasonably request, provided, however, that the Company shall not for any such
purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to
general service of process in any such jurisdiction;

     

    (d)           list
the Registrable Securities covered by such registration with any securities
exchange on which the Common Stock of the Company is then
listed;

    
      
         

      

      
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    (e)           immediately
notify the Holder at any time when a prospectus relating thereto is required to
be delivered under the Securities Act, of the happening of any event of which
the Company has knowledge as a result of which the prospectus contained in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing; and

     

    (f)           notify
the Holder of the effectiveness of each registration statement
filed.

     

    SECTION
9.7  Indemnification.

     

    (a)           In
the event of a registration of any securities under the Securities Act pursuant
to this Agreement, the Company will indemnify and hold harmless the Holder, and
its partners and each other person, if any, who controls the Holder within the
meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which the Holder, or such persons may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such Securities were
registered under the Securities Act pursuant to this Agreement, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse the Holder, and each
such person for any reasonable legal or other expenses incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in
any such case if and to the extent that any such loss, claim, damage or
liability arises out of or is based upon (i) an untrue statement or alleged
untrue statement or omission or alleged omission so made in conformity with
information furnished by or on behalf of the Holder or (ii) the use by the
Holder of an outdated or defective prospectus (without any Company provided
supplement correcting such outdated or defective prospectus) after the Company
has notified the Holder or any person in writing that such prospectus is
suspended from use, outdated or defective.

     

    (b)           In
the event of a registration of any securities under the Securities Act pursuant
to this Agreement, the Holder will indemnify and hold harmless the Company, its
subsidiaries and their respective officers, directors and each other person, if
any, who controls the Company or any such subsidiary within the meaning of the
Securities Act, against all losses, claims, damages or liabilities, joint or
several, to which the Company, any such subsidiary or such persons may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact which
was furnished in writing by the Holder to the Company (and such information is
contained in) the registration statement under which such Securities were
registered under the Securities Act pursuant to this Agreement, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse the Company, its
subsidiaries and each such person for any reasonable legal or other expenses
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action, provided, however, that the Holder will be
liable in any such case if and only to the extent that any such loss, claim,
damage or liability (i) arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in conformity with
information furnished to the Company or its subsidiary by or on behalf of the
Holder or (ii) arises from the failure to provide a Company provided supplement
correcting an outdated or defective prospectus after the Company has notified
the Holder in writing that such prospectus is suspended from use, outdated or
defective, provided further, that in no case shall the Holder be liable or
responsible for any amount in excess of the net amount received by the Holder
for shares sold by him, her or it pursuant to such registration
statement.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (c)           Promptly
after receipt by a party entitled to claim indemnification hereunder (a “Section 9.7 Indemnified
Party”) of notice of the commencement of any action, such Section 9.7
Indemnified Party shall, if a claim for indemnification in respect thereof is to
be made against a party hereto obligated to indemnify such Indemnified Party (a
“Section 9.7
Indemnifying Party”), notify the Section 9.7 Indemnifying Party in
writing thereof, but the omission to so notify the Section 9.7 Indemnifying
Party shall not relieve it from any liability which it may have to such Section
9.7 Indemnified Party other than under this Section 9.7 and shall only relieve
it from any liability which it may have to such Section 9.7 Indemnified Party
under this Section 9.7 if and to the extent the Section 9.7 Indemnifying Party
is prejudiced by such omission. In case any such action shall be brought against
any Section 9.7 Indemnified Party and it shall notify the Section 9.7
Indemnifying Party of the commencement thereof, the Section 9.7 Indemnifying
Party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel satisfactory to such
Section 9.7 Indemnified Party, and, after notice from the Section 9.7
Indemnifying Party to such Section 9.7 Indemnified Party of its election so to
assume and undertake the defense thereof, the Section 9.7 Indemnifying Party
shall not be liable to such Section 9.7 Indemnified Party under this Section 9.7
for any legal expenses subsequently incurred by such Section 9.7 Indemnified
Party in connection with the defense thereof; if the Section 9.7 Indemnified
Party retains its own counsel, then the Section 9.7 Indemnified Party shall pay
all fees, costs and expenses of such counsel, provided, however, that, if the
defendants in any such action include both the Section 9.7 Indemnified Party and
the Section 9.7 Indemnifying Party, and the Section 9.7 Indemnified Party shall
have reasonably concluded that there may be reasonable defenses available to it
which are different from or additional to those available to the Section 9.7
Indemnifying Party, or if the interests of the Section 9.7 Indemnified Party
reasonably may be deemed to conflict with the interests of the Section 9.7
Indemnifying Party, the Section 9.7 Indemnified Party shall have the right to
select separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of such separate counsel and other expenses related to such participation to be
reimbursed by the Section 9.7 Indemnifying Party as incurred.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    (d)           In
order to provide for just and equitable contribution in the event of joint
liability under the Securities Act in any case in which either (i) the Holder,
or any partner or controlling person of the Holder, makes a claim for
indemnification pursuant to this Section 9.7 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact
that this Section 9.7 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of the Holder
or such partner or controlling person of the Holder in circumstances for which
indemnification is provided under this Article IX; then, and in each such case,
the Company and the Holder will contribute to the aggregate losses, claims,
damages or liabilities to which they may be subject (after contribution from
others) in such proportion so that the Holder is responsible only for the
portion represented by the percentage that the public offering price of its
securities offered by the registration statement bears to the public offering
price of all securities offered by such registration statement, provided,
however, that, in any such case, (A) the Holder will not be required to
contribute any amount in excess of the public offering price of all such
securities offered by it pursuant to such registration statement; and (B) no
person or entity guilty of fraudulent misrepresentation (within the meaning of
federal securities laws) will be entitled to contribution from any person or
entity who was not guilty of such fraudulent misrepresentation.

     

    SECTION
9.8  Registration
Expenses.  All fees and expenses incident to the performance of
this Article IX by the Company shall be borne by the Company. Notwithstanding
the foregoing, the Company shall not be responsible for any broker, underwriter
or any similar commissions, or legal fees or other costs incurred directly by
the Holder(s).

     

    ARTICLE
X

     

    MISCELLANEOUS
PROVISIONS

     

    SECTION
10.1  Waiver
of suit against the Trust Account. Reference is hereby made to the IPO
Registration Statement.  The Lender has read the IPO Registration
Statement and understands that the Company has established the Trust Account
initially in an amount of $58,030,000 for the benefit of the Public Stockholders
and the underwriters of the Company’s initial public offering (the “Underwriters”) and
that, except for up to a maximum of $1,500,000 of the interest earned on the
amounts held in the Trust Account, the Company may disburse monies from the
Trust Account only: (i) to its Public Stockholders in the event of the
redemption of their shares or the Liquidation of the Company; or (ii) to the
Company and the Underwriters after consummation of a Business
Combination.

    

    Lender
acknowledges that except for any rights Lender may directly, indirectly or
beneficially have as a Public Stockholder, the Public Stockholders have priority
over Lender as to the distribution of funds from the Trust Account in the event
of a Liquidation or in connection with redemption of shares issued in the
Initial Public Offering and waives any right to seek recourse against the Trust
Account for any claims arising under or in connection with the Transaction
Documents, except for any claim available to a Public Stockholder.

    

    Notwithstanding
the foregoing, in the event that the Acquisition is consummated, then the
Lender’s waiver contained in the immediately preceding paragraph shall not
apply, but only after the stockholders exercising their respective Redemption
Rights have received full payment in connection therewith.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    SECTION
10.2  Fees
and Expenses.  Upon the execution of this Agreement, the
Company shall pay to or on behalf of Lender the sum of Fifty Thousand Dollars
(US$50,000) in connection with the preparation, execution and delivery of this
Agreement, the other Transaction Documents, net of Ten Thousand Dollars
(US$10,000) that was paid upon the execution of the term sheet, dated November
5, 2008, by and between the Lender and the Company.

     

    SECTION
10.3     Survival of Representations
and Warranties.  All representations and warranties and
agreements contained herein or made in writing by the Borrower, the Company or
the Lender in connection with the transactions contemplated by this Agreement
shall survive the sale of the Note and  the issue of the Securities,
notwithstanding any inquiry or investigation at any time made by or on behalf of
the Borrower, the Company or the Lender.

     

    SECTION
10.4  Notices.  Any
notice or other communication under this Agreement shall be in writing and shall
be considered given when (i) when received, (ii) when delivered personally,
(iii) one (1) Business Day after being delivered by facsimile (with receipt of
appropriate confirmation), (iv) one (1) Business Day after being deposited with
an overnight courier service of recognized standing, or (v) four (4) days after
being deposited in the registered mail, with postage prepaid:

     

    If to the
Company:

     

    Vector
Intersect Security Acquisition Corp.

    65
Challenger Road

    Ridgefield
Park, NJ 07660

    Attention:  Mr.
Yaron Eitan

    Facsimile:
(201) 712-9498

     

    If to the
Borrower:

     

    Vector
Investment Fund LLC

    74 Grand
Avenue

    Englewood,
NJ 07631

    Attention: Mr.
Yaron Eitan

    Facsimile:  (201)
541-1084

     

    If to the
Lender:

    

    Centurion
Credit Group Master Fund L.P.

    152 West
57th Street, 54th Floor

    New York,
NY 10019

    Attention:
Mr. David Levy

    Facsimile:  (212)
581-0002

     

    With an
additional copy by fax only to:

     

    Grushko
& Mittman, P.C.

    551 Fifth
Avenue, Suite 1601

    New York,
NY 10176

    Attention: Edward
M. Grushko, Esq.

    Facsimile:  (212)
697-3575

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    SECTION
10.5  Assignments, Successors, and
No Third-Party Rights.  No party may assign any of its rights
under this Agreement without the prior consent of the other
parties.  Subject to the preceding sentence, this Agreement will apply
to, be binding in all respects upon, and inure to the benefit of and be
enforceable by the respective successors and permitted assigns of the
parties.  This Agreement and all of its provisions and conditions are
for the sole and exclusive benefit of the parties to this Agreement and their
successors and assigns.

     

    SECTION
10.6  Entire
Agreement and Modification.  This Agreement supersedes all
prior agreements between the parties with respect to its subject matter and
constitutes (along with the documents referred to in this Agreement) a complete
and exclusive statement of the terms of the agreement between the parties with
respect to its subject matter.  This Agreement may not be amended
except by a written agreement executed by the party against whom the enforcement
of such amendment is sought.

     

    SECTION
10.7  Severability.  If
any provision of this Agreement is held invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Agreement will remain in
full force and effect.  Any provision of this Agreement held invalid
or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable

     

    SECTION
10.8  Applicable
Law.  This Agreement and the rights and obligations of the
parties hereunder shall be governed by and interpreted, construed and enforced
in accordance with the laws of the State of New York without giving effect to
the conflicts of laws provisions thereof.

     

    SECTION
10.9   Law Governing this
Agreement.  This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without regard to
principles of conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Agreement shall be
brought only in the state courts of New York or in the federal courts located in
the state and county of New York.  The parties to this Agreement
hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non
conveniens.  The parties executing this Agreement
and other agreements referred to herein or delivered in connection herewith on
behalf of the Company agree to submit to the in personam jurisdiction of such
courts and hereby irrevocably waive trial by jury.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs.  In the event that any provision
of this Agreement or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law.  Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other
provision of any agreement.  Each party hereby irrevocably waives
personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof.  Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    SECTION
10.10  Specific Enforcement,
Consent to Jurisdiction.   Each party hereto acknowledges
and agrees that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached.  It is accordingly agreed
that the parties shall be entitled to seek an injunction or injunctions to
prevent or cure breaches of the provisions of this Agreement and to enforce
specifically the terms and provisions hereof, this being in addition to any
other remedy to which any of them may be entitled by law or
equity.  Subject to Section 10.9 hereof, each of the Company and
Borrower hereby irrevocably waives, and agrees not to assert in any such suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction in New York of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper.  Nothing in this Section shall affect or limit
any right to serve process in any other manner permitted by law.

     

    SECTION
10.11   Security
Interest.   The Lender is granted a security interest in
the Note Shares and the proceeds of the Note Shares for all of the Obligations
as defined in the Note.  The form of Stock Pledge Agreement to be
delivered to Lender on the Closing Date is annexed hereto as Exhibit
F.  The Lender may cause one or more UCC-1 Financing Statement
to be filed in connection with such security interest.  In any event,
possession of the Note Shares by the Escrow Agent shall be deemed to be
possession on behalf of and by the Lender for purposes of perfecting the
security interest.  Borrower will deliver the form of Security
Agreement annexed hereto as Exhibit G to the
Lender on the Closing Date granting to Lender a security interest in the
membership interest of the sole member of Borrower.

     

    SECTION
10.12  Counterparts.  This
Agreement may be executed in one or more counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same
agreement.  Facsimile copies or other electronic transmissions of
signed signature pages will be deemed binding originals.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the undersigned has executed this Note Purchase Agreement
effective as of the 10th day of December, 2008.

    
      
        
          
            
              

              
                
                  
                    
                      	 
      	
                              Borrower:

                            
	 
      	 
      
	 
      	
                              VECTOR
      INVESTMENT FUND LLC

                            
	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:  Yaron
      Eitan

                            
	 
      	 
      	
                              Title:   Sole
      Member

                            
	 
      	 
      
	 
      	
                              Lender:

                            
	 
      	 
      
	 
      	
                              CENTURION
      CREDIT GROUP

                              MASTER
      FUND L.P.

                            
	 
      	 
      
	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Name:  David
      Levy

                            
	 
      	 
      	
                              Title:

                            
	 
      	 
      	 
      
	 
      	
                              U.S.
      Tax ID Number or Social Security Account

                              Number
      (as applicable):

                            

                    

                  

                

              

              

              
                
                  
                    
                      
                        
                          
                            
                              
                                	 	 	 
	 
      	
                                        (if
      none, so state)

                                      
	 	 
	 
      	
                                        Company:

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

              

              
                
                  
                    	 
      	
                            VECTOR
      INTERSECT SECURITY

                            ACQUISITION
      CORP.

                          
	 
      	 
      
	 
      	
                            By:

                          	 
      
	 
      	 
      	
                            Name:  Yaron
      Eitan

                          
	 
      	 
      	
                            Title:    Chief
      Executive
Officer

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