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EXHIBIT 10.1
EXECUTION VERSION
 
FORBEARANCE AGREEMENT
FORBEARANCE AGREEMENT dated as of August 25, 2014 (this "Forbearance") with
respect to that certain Credit Agreement dated as of May 12, 2014 (as amended,
supplemented or otherwise modified, the "Credit Agreement"), by and among
PhotoMedex, Inc., as borrower (the "Borrower"), the Loan Parties from time to
time party thereto, the Lenders from time to time party thereto, and JPMorgan
Chase Bank, N.A., as administrative agent (the "Administrative Agent"), among
others.
W I T N E S S E T H :
WHEREAS, pursuant to the Credit Agreement, the Lenders have made Loans and other
extensions of credit to the Borrower which remain outstanding;
WHEREAS, one or more Events of Default have occurred and are continuing;
WHEREAS, notwithstanding the existence of such Events of Default, the Borrower
has requested that the Administrative Agent and the Lenders forbear from taking
certain remedial actions under the Credit Agreement and the other Loan
Documents; and
WHEREAS, the Administrative Agent and the Lenders are willing to forbear from
taking certain remedial actions under the Credit Agreement and the other Loan
Documents with respect to such Events of Default, but only on the terms and
conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1                            Defined Terms.  Unless otherwise defined
herein, capitalized terms used herein have the meanings assigned in the Credit
Agreement and the other Loan Documents, and the following terms shall have the
following meanings:
 
"Cash Flow Forecast" is defined in Section 4.1 (b).
"Cash on Hand" shall mean, as of any Business Day, the greater of (a) the
average aggregate daily book balance of all monies on deposit in all accounts
maintained at all financial institutions by the Loan Parties and their
Subsidiaries during the five (5) prior Business Days, and (b) the aggregate
daily book balance of all monies on deposit in all accounts maintained at all
financial institutions by the Loan Parties and their Subsidiaries on such
Business Day.
"Collateral Certificate" shall mean a fully completed and executed collateral
certificate in the form attached as Annex A hereto, certified by the Borrower as
being true and correct.

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"Consultant" shall mean a financial advisor retained by the Borrower to assist
with the financial restructuring of the businesses of the Borrower and its
Subsidiaries, whose identity and scope of engagement shall be at all times
acceptable to the Administrative Agent and the Required Lenders.
"Effective Date" shall mean the date hereof, but only upon satisfaction or
waiver of the conditions precedent specified in Article V of this Forbearance.
"Expiration Date" shall mean October 31, 2014.
"Forbearance Fee" is defined in Section 7.2 (b).
"Forbearance Period" shall mean the period beginning on the Effective Date and
ending on the earlier of (a) the Expiration Date or (b) the Termination Date.
"Israeli Proceeds" shall mean not less than $8,000,000 repatriated from Radiancy
(Israel) Ltd.
"Specified Events of Default" shall mean (i) the Borrower's failure to maintain
a Leverage Ratio for any fiscal quarter ending on or prior to June 30, 2014, of
less than 2.50 to 1.00 in accordance with Section 6.11(a) of the Credit
Agreement and (ii) the Borrower's failure to maintain a Fixed Charge Coverage
Ratio for the trailing 12 months ending on any date on or prior to June 30,
2014, of more than 1.25 to 1.00 in accordance with Section 6.11(b) of the Credit
Agreement.
"Termination Date" shall mean the date on which any event identified in
Article III of this Forbearance shall occur.
ARTICLE II
FORBEARANCE
Section 2.1                            Forbearance.  (a)   Subject to the terms
and conditions hereof, the Administrative Agent and the Required Lenders hereby
agree to forbear, during the Forbearance Period, from the exercise of any and
all rights or remedies they may have with respect to, and only with respect to,
the Loan Parties under the Credit Agreement, the other Loan Documents and
applicable law, solely in respect of the Specified Events of Default.
(b)  For the avoidance of doubt, the agreements of the Administrative Agent and
the Required Lenders in this Article II shall not apply to any Defaults or
Events of Default other than the Specified Events of Default.  The Borrower
further acknowledges and agrees (i) that it shall not be permitted to request
any Borrowings or other extensions of credit so long as any Default or Event of
Default (including the Specified Events of Default) shall continue and (ii)
interest shall accrue pursuant to Section 2.11(c) of the Credit Agreement from
and after the Effective Date so long as any Default or Event of Default
(including the Specified Events of Default) shall continue.
ARTICLE III
EVENTS OF TERMINATION
Upon the occurrence of any of the following events:
(a)            any Loan Party shall default in the observance of any agreement
contained in this Forbearance; or
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(b)            the occurrence of a Default or Event of Default (other than a
Specified Event of Default);
then, and in any such event, the provisions of Article II of this Forbearance
shall immediately and automatically terminate and thereafter such Article shall
have no force or effect.
ARTICLE IV
AGREEMENTS
Section 4.1                           Reporting.  (a)  The Borrower shall
furnish, or cause to be furnished, to the Administrative Agent on behalf of the
Lenders, as soon as practicable, but in no event later than August 31, 2014, the
management's internal financial statements, which shall have been reviewed by
the Consultant (and incorporate the reasonable comments of the Consultant) and
shall include its consolidated balance sheet and related statements of
operations, stockholders' equity and cash flows as of the end of and for the
calendar month of July 2014 and the then elapsed portion of such fiscal year,
setting forth in each case in comparative form the figures for (i) such period
as previously forecasted by the Borrower and (ii) the corresponding period of
(or, in the case of the balance sheet, as of the end of) the previous fiscal
year.  The Borrower shall consult with, and incorporate the reasonable comments
of, the Consultant in connection with the preparation of such financial
statements.
(b)  Beginning September 5, 2014, the Borrower shall furnish, or cause to be
furnished, to the Administrative Agent on behalf of the Lenders, on Thursday of
each week, a thirteen week rolling cash flow forecast which shall detail all
sources and uses of cash on a weekly basis and shall report any variances from
the prior report, and which, to the extent necessary, shall be reforecast in its
entirety as of the end of each month (including a variance analysis with respect
to such reforecast).  Each thirteen week rolling cash flow forecast shall be in
form and substance satisfactory to the Administrative Agent and the Required
Lenders (a "Cash Flow Forecast").
(c)  Within thirty (30) days after the end of each calendar month, the Borrower
shall furnish, or cause to be furnished, to the Administrative Agent on behalf
of the Lenders the management's internal financial statements, which shall have
been reviewed by the Consultant (and incorporate the reasonable comments of the
Consultant) and shall include its consolidated balance sheet and related
statements of operations, stockholders' equity and cash flows as of the end of
and for such calendar month and the then elapsed portion of such fiscal year,
setting forth in each case in comparative form the figures for (i) such period
or periods as previously forecasted by the Borrower and (ii) the corresponding
period or periods of (or, in the case of the balance sheet, as of the end of)
the previous fiscal year.
(d)  Within thirty (30) days after the end of each calendar month, the Borrower
shall furnish, or cause to be furnished, to the Administrative Agent and each
Lender a status report on all actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of any
Loan Party, threatened against or affecting any Loan Party or any Subsidiary,
including, without limitation, all actions, suits or proceedings pending before
the Israel District Court for Tel Aviv and the U.S. District Court for the
Eastern District of Pennsylvania.  Each status report shall be in form and
substance satisfactory to the Administrative Agent and the Required Lenders.
Section 4.2                            Collateral.  The Borrower shall, on or
before September 12, 2014, deliver to the Administrative Agent and the Lenders a
Collateral Certificate.
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Section 4.3                            Retention of Consultant.  (a)  The
Borrower shall have retained the Consultant and delivered the engagement letter
with respect thereto to the Administrative Agent and the Lenders and shall
continue the retention of the Consultant at all times during the Forbearance
Period.  The Borrower agrees that the Administrative Agent and the Lenders shall
have continuous, direct access to the Consultant and shall promptly receive all
non-privileged reports and other work product prepared by Consultant for the
Borrower and/or its Subsidiaries from time to time.
 
(b)  The Borrower shall cooperate in all respects with any financial advisor
that may after the Effective Date be retained by the Administrative Agent in its
sole discretion and shall promptly (but no later than seven days after the
delivery of any invoice) pay or reimburse the Administrative Agent for all
reasonable and documented fees and out-of-pocket expenses incurred in connection
therewith, including any retainer that may be required.
Section 4.4                            Further Agreements.  (a)  Notwithstanding
Section 6.01 of the Credit Agreement, during the Forbearance Period, the Loan
Parties and their Subsidiaries shall not incur, or commit to incur,
Indebtedness, other than Indebtedness permitted under Sections 6.01(a), (b),
(c), (e) (to the extent that such Indebtedness under clause (e) does not exceed
$250,000), (f), (g), (h), (k), (l), (m) and (p) of the Credit Agreement.
 
(b)  Notwithstanding Section 6.04 of the Credit Agreement, during the
Forbearance Period, the Loan Parties and their Subsidiaries shall not make, or
commit to make, Capital Expenditures in excess of $250,000 per fiscal quarter
(not including the purchase of, or the classification as Capital Expenditures
of, any XTRAC or VTRAC equipment) in the aggregate.
 (c)  Notwithstanding Sections 6.04 and 6.09 of the Credit Agreement, during the
Forbearance Period, no Loan Party shall, nor shall any Loan Party permit any
Subsidiary to, make any investment or any other interest in any Affiliate, other
than investments set forth in the then-current Cash Flow Forecast in a party
that is or becomes a Loan Party prior to the making of such investment and any
other investments agreed to by the Administrative Agent and the Required
Lenders.
(d)  Notwithstanding Section 6.07 of the Credit Agreement, during the
Forbearance Period, no Loan Party shall, nor shall any Loan Party permit any
Subsidiary to, enter into any Swap Agreement.
(e)  Notwithstanding Section 6.08 of the Credit Agreement, during the
Forbearance Period, the Loan Parties and their Subsidiaries shall not declare,
pay or make any dividend or distribution on any shares of capital stock or other
interests.
(f)  Notwithstanding Section 2.06 of the Credit Agreement, during the
Forbearance Period, (i) no outstanding Borrowing may be converted to or
continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
Borrowing shall be converted to a CBFR Borrowing at the end of the Interest
Period applicable thereto.
(g)  The Borrower shall furnish, or cause to be furnished, to the Administrative
Agent and each Lender, as soon as practicable, but in no event later than
September 12, 2014, an analysis (the "Tax Analysis") of the tax consequences
associated with (i) any Subsidiary organized under the laws of the State of
Israel or any political subdivision thereof or the United Kingdom or any
political subdivision thereof (each a "Foreign Subsidiary") becoming a Loan
Guarantor (a "Foreign Guarantor") and (ii) the pledge of 100% of the issued and
outstanding Equity Interests of the Foreign Subsidiaries (a "Foreign Pledge"). 
The Tax Analysis shall be in form and substance satisfactory to the
Administrative Agent and the Required Lenders.  In the event that the
Administrative Agent and the Required Lenders determine in their reasonable
discretion, following good faith consultation with the Loan Parties and their
tax advisors,
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upon review of the Tax Analysis that such actions would not have materially
adverse tax consequences (including not materially impairing the tax attributes
of any Loan Party) to the Loan Parties, then, as promptly as practicable,
(i) such applicable Foreign Subsidiary shall become a Loan Guarantor under the
Credit Agreement and/or (ii) such applicable Loan Party shall pledge 100% of the
issued and outstanding Equity Interests of such applicable Foreign Subsidiary,
in each case, pursuant to documentation satisfactory to the Administrative
Agent.
(h)  The Borrower shall prepay the Term Loans as follows:  (i) on September 1,
2014, $937,500 which shall be applied in direct order of maturity; (ii) on
October 1, 2014, $937,500 which shall be applied to the Term Loan in direct
order of maturity; and (iii) on October 24, 2014, an amount equal to 75% of Cash
on Hand in excess of $20 million measured on October 22, 2014 which shall be
applied to the outstanding Revolving Loans.  On October 24, 2014, the Borrower
shall deliver to the Administrative Agent a certificate of a Financial Officer
certifying in reasonable detail as to Cash on Hand as of October 22, 2014.
(i)  The Borrower agrees that, following its review and analysis of the Cash
Flow Forecast, it shall apply the Israeli Proceeds (or some portion thereof) to
make additional prepayments on the Revolving Loans to the extent that it
determines in its reasonable business judgment that such prepayments would not
impair the ongoing operations of the Loan Parties and their Subsidiaries. The
Borrower shall undertake such review and analysis, and thereafter make any
prepayment, as promptly as possible following the Effective Date.
Section 4.5                            Forbearance Agreement Deemed Agreements
Under the Credit Agreement.  For purposes of the Credit Agreement, the
agreements of the Loan Parties contained in this Forbearance shall be deemed to
be, and shall be, agreements under the Credit Agreement.  Any breach on the part
of the Loan Parties in respect of any agreement contained in this Forbearance
shall constitute an Event of Default.
 
ARTICLE V
CONDITIONS PRECEDENT
This Forbearance shall not become effective unless and until each of the
conditions precedent set forth below has been satisfied or the satisfaction
thereof shall have been waived in accordance with the terms hereof:
(a)            Receipt by the Administrative Agent of counterparts of this
Forbearance, duly executed and delivered by the Administrative Agent, the
Required Lenders and the Loan Parties;
(b)            Receipt by the Administrative Agent of payment in full in cash of
its invoiced and unpaid reasonable and documented fees and out-of-pocket
expenses incurred in connection with the Credit Agreement or the other Loan
Documents (which shall be deemed to include this Forbearance), including,
without limitation, the reasonable fees and disbursements of the Administrative
Agent's counsel and advisors;
(c)            Receipt by the Administrative Agent of the Forbearance Fee in
full, in cash; and
(d)            Receipt by the Administrative Agent, for the account of each
Lender, of (i) $1,000,000 which shall be applied in inverse order of maturity as
a prepayment of Term Loans (which amount shall be funded from the Israeli
Proceeds), and (ii) $3,750,000 which shall be applied as a prepayment of those
Term Loans otherwise due and payable on August 31, 2014, in each case, together
with all accrued and unpaid interest thereon.
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ARTICLE VI
INTERPRETATION
Section 6.1                            Continuing Effect of the Credit
Agreement.  The Loan Parties, the Administrative Agent and the Lenders hereby
acknowledge and agree that the Credit Agreement shall continue to be and remain
unchanged and in full force and effect in accordance with its terms, except as
expressly provided herein.
 
Section 6.2                            No Limitation on Remedies after
Forbearance Period.  The Loan Parties hereby acknowledge and agree that, at the
end of the Forbearance Period, the provisions of Article II of this Forbearance
shall be of no force and effect and the Administrative Agent and the Lenders
shall be free, in accordance with the Credit Agreement and the other Loan
Documents, to declare the Loans and all other amounts outstanding under the
Credit Agreement to be due and payable and to exercise and enforce, or to take
steps to exercise and enforce, all other rights, powers, privileges and remedies
available to them under the Credit Agreement, any other Loan Document or
applicable law on account of the Specified Events of Default (or any other
Default or Event of Default) as if this Forbearance had not been entered into by
the parties hereto.
 
Section 6.3                            No Waiver; Other Defaults or Events of
Default.  (a)  Nothing contained in this Forbearance shall be construed or
interpreted or is intended as a waiver of any rights, powers, privileges or
remedies that the Administrative Agent or the Lenders have or may have under the
Credit Agreement or any other Loan Document on account of the Specified Events
of Default, except as expressly provided herein.
 
(b)            Nothing contained in this Forbearance shall be construed or
interpreted or is intended as a waiver of or limitation on any rights, powers,
privileges or remedies that the Administrative Agent or the Lenders have or may
have under the Credit Agreement or any other Loan Document on account of any
Default or Event of Default other than the Specified Events of Default.
 
ARTICLE VII
MISCELLANEOUS
Section 7.1                            Representations and Warranties.  The Loan
Parties hereby represent and warrant as of the date hereof that, after giving
effect to this Forbearance, (a) no Default or Event of Default has occurred and
is continuing, except the Specified Events of Default and (b) all
representations and warranties of the Loan Parties contained in the Loan
Documents (which shall be deemed to include this Forbearance) are true and
correct in all material respects with the same effect as if made on and as of
such date, except that Section 3.07 of the Credit Agreement shall be deemed to
exclude any Specified Events of Default.
 
Section 7.2                            Payment of Fees and Expenses.  (a)  The
Borrower agrees to pay or reimburse the Administrative Agent upon demand, for
all its reasonable and documented out-of-pocket costs and expenses incurred in
connection with the Credit Agreement or the other Loan Documents (which shall be
deemed to include this Forbearance), including, without limitation, the
reasonable fees and disbursements of the Administrative Agent's counsel and
advisors.
 
(b)  The Borrower agrees to pay the Administrative Agent, for the pro rata
account of the Lenders, a forbearance fee (the "Forbearance Fee") in an
aggregate amount equal to .25% of the Principal Indebtedness (as defined below)
outstanding immediately prior to the Effective Date.  The Forbearance Fee shall
be deemed earned in full on the Effective Date, and shall be payable to the
Administrative Agent, for the pro rata account of the Lenders.
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Section 7.3                            Confirmation of Indebtedness.  The Loan
Parties hereby confirm and acknowledge that, as of the Effective Date, (i) the
Borrower is truly and justly indebted to the Lenders, without defense,
counterclaim or offset of any kind, (ii) the Borrower is liable to the Lenders
in respect of Loans made under the Credit Agreement in the aggregate principal
amount of $85,000,000 (exclusive of Letters of Credit) (the "Principal
Indebtedness") and (iii) each Guarantor is contingently liable to the Lenders in
respect of such amount.
 
Section 7.4                            Counterparts.  This Forbearance may be
executed by the parties hereto in any number of separate counterparts, and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument.
 
Section 7.5                            GOVERNING LAW.  THIS FORBEARANCE AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FORBEARANCE SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.
 
Section 7.6                            Reservation of Rights.  Notwithstanding
anything contained in this Forbearance to the contrary, the Loan Parties
acknowledge that the Administrative Agent and the Lenders do not waive, and
expressly reserve, the right to exercise, at any time during the Forbearance
Period, any and all of their rights and remedies under (a) the Credit Agreement,
any other Loan Document and applicable law in respect of the Specified Events of
Default against any Person other than any Loan Party and (b) the Credit
Agreement, any other Loan Document and applicable law in respect of any Default
or Event of Default other than the Specified Events of Default.
 
Section 7.7                            Consent of Guarantors.  Each Guarantor
hereby (a) consents to the transactions contemplated hereby and (b) acknowledges
and agrees that the guarantees (and all security therefore) contained in the
Credit Agreement and the other Loan Documents previously executed by it are, and
shall remain, in full force and effect after giving effect to this Forbearance
and all other prior modifications to the Credit Agreement.
 
Section 7.8                            Release.  The Loan Parties, on behalf of
themselves and successors-in-title, legal representatives and assignees and, to
the extent the same is claimed by right of, through or under any of the Loan
Parties, for its past, present and future employees, agents, representatives,
officers, directors, shareholders, and trustees (each, a "Releasing Party" and
collectively, the "Releasing Parties") hereby release, waive, and forever
relinquish all claims, demands, obligations, liabilities and causes of action of
whatever kind or nature (including, without limitation, any so-called "lender
liability" claims, interest or other carrying costs, penalties, legal,
accounting and other professional fees and expenses and incidental,
consequential and punitive damages payable to third parties, or any claims
arising under 11 U.S.C. §§ 541-550 or any claims for avoidance or recovery under
any other federal, state or foreign law equivalent), whether known or unknown,
which any of the Releasing Parties have, may have, or might assert at the time
of execution of the Forbearance against the Administrative Agent, the Lenders
and/or their respective parents, affiliates, participants, officers, directors,
employees, agents, attorneys, accountants, consultants, successors and assigns,
directly or indirectly, which occurred, existed, was taken, permitted or begun
prior to the execution of this Forbearance, arising out of, based upon, or in
any manner connected with (i) any transaction, event, circumstance, action,
failure to act or occurrence of any sort or type, whether known or unknown, with
respect to the Credit Agreement, any other Loan Document and/or the
administration thereof or the Obligations created thereby; (ii) any discussions,
commitments, negotiations, conversations or communications with respect to the
refinancing, restructuring or collection of any Obligations related to the
Credit Agreement, any other Loan Document and/or the administration thereof or
the Obligations created thereby, or (iii) any matter related to the foregoing,
in each case, prior to the execution of this Forbearance.
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IN WITNESS WHEREOF, the parties hereto have caused this Forbearance to be duly
executed and delivered by their proper and duly authorized officers as of the
date first above written.
PHOTOMEDEX, INC.,
a Nevada corporation
By:    /s/ Dennis M. McGrath                                 
Name: Dennis M. McGrath
Title: President and Chief Financial Officer
LCA-VISION INC.,
a Delaware corporation
By: /s/ Dennis M. McGrath                                  
Name: Dennis M. McGrath
Title: President
RADIANCY, INC.,
a Delaware corporation
By:    /s/ Dolev Rafaeli                                              
                                                                                  
Name: Dolev Rafaeli
Title: President and Chief Executive Officer
PHOTOMEDEX TECHNOLOGY, INC.,
a Delaware corporation
By:     /s/ Dennis M. McGrath                                     
Name: Dennis M. McGrath
Title: President
LUMIERE, INC.,
a Nevada corporation
By:  /s/ Dennis M. McGrath                                      
Name: Dennis M. McGrath
Title: President
 
 
 
S-1

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JPMORGAN CHASE BANK, N.A., as Administrative Agent and a Lender
By:   /s/ Lauren Daley                     

Name: Lauren Daley
Title: Authorized Officer
 
 
S-2

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PNC BANK, N.A., as a Lender
By:   /s/ Gregory S. Buchanan          

Name:  Gregory S. Buchanan
Title: Sr. Vice President
 
S-3

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BANK LEUMI LE-ISRAEL B.M., as a Lender
By:   /s/ Warach Yigal                       
Name: Warach Yigal
Title: Operation Manager
By:   /s/Dominitz Tamar                                 
Name: Dominitz Tamar
Title: Customer Relationship Manager
 
 
S-4

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ANNEX A

COLLATERAL CERTIFICATE

Reference is made to the Credit Agreement dated as of May 12, 2014 (as amended,
supplemented or otherwise modified, the "Credit Agreement"), by and among
PhotoMedex, Inc., as borrower (the "Borrower"), the Loan Parties from time to
time party thereto, the Lenders from time to time party thereto, and JPMorgan
Chase Bank, N.A., as administrative agent (the "Administrative Agent"), among
others..  Capitalized terms used but not defined herein shall have the meanings
ascribed thereto in the Credit Agreement.

The Borrower hereby (i) acknowledges and agrees that this Collateral Certificate
is a Loan Document and (ii) certify that all of the information contained herein
is true and correct.

EACH SCHEDULE HEREIN SHALL BE PREPARED ON AN ENTITY BY ENTITY BASIS. 
ACCORDINGLY, THE SCHEDULES SHALL CLEARLY REFLECT THE REQUESTED INFORMATION IN
RESPECT OF EACH ENTITY.

SECTION 1.  CAPITAL STRUCTURE

(a)            Capital Structure.  Schedule 1(a) identifies the Loan Parties and
their Subsidiaries and every entity owned, in whole or in part, by the Loan
Parties and their Subsidiaries.  As part of such identification the following
information with respect to each entity (as applicable) is provided:  (A)
jurisdiction of organization, (B) number of shares authorized, (C) number of
shares outstanding, (D) percentage ownership interests, (E) member interests and
(F) number of shares or member interests covered by outstanding options,
warrants, rights of conversion or purchase and similar rights.

See Schedule 1(a)

(b)            Trade Names, Division Names, Etc.  Schedule 1(b) is a list of all
other names (including trade names or similar appellations) used by the Loan
Parties and their Subsidiaries and every entity owned, in whole or in part, by
the Loan Parties and their Subsidiaries, or any of their divisions or other
business units used in connection with the conduct of their businesses or the
ownership of their properties at any time during the past five years.

See Schedule 1(b)

SECTION 2.  LOCATIONS OF PERSONAL PROPERTY

        
(a)            Chief Executive Office.  Schedule 2(a) is a list of locations of
the chief executive offices of the Loan Parties and their Subsidiaries and every
entity owned, in whole or in part, by the Loan Parties and their Subsidiaries.

See Schedule 2(a)

(b)            Principal Place of Business.  The following is a list of
locations of the principal places of business of the Loan Parties and their
Subsidiaries and every entity owned, in whole or in part, by the Loan Parties
and their Subsidiaries.

See Schedule 2(b)

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(c)            Places of Business.  Schedule 2(c) is a list of locations of
places of business of the Loan Parties and their Subsidiaries and every entity
owned, in whole or in part, by the Loan Parties and their Subsidiaries, that
were not otherwise identified in Schedules 2(a) or 2(b).

See Schedule 2(c)

(d)            Receivables and General Intangibles.  Schedule 2(d) is a list of
locations of general intangibles and records of receivables of the Loan Parties,
their Subsidiaries and every entity owned, in whole or in part, by the Parent,
the Loan Parties and their Subsidiaries.

See Schedule 2(d)

(e)            Equipment and Inventory.  Schedule 2(e) is a list of locations of
equipment and inventory owned by the Loan Parties and their Subsidiaries and
every entity owned, in whole or in part, by the Loan Parties and their
Subsidiaries.

See Schedule 2(e)

(f)            Books and Records.  Schedule 2(f) is a list of locations of all
books and records held by the Loan Parties and their Subsidiaries and every
entity owned, in whole or in part, by the Loan Parties and their Subsidiaries,
relating to any of the collateral, including, without limitation, accounts,
contract rights, chattel paper, general intangibles and mobile goods and all
corporate or business records, customer lists, credit files, computer program
printouts or other computer material and records.

See Schedule 2(f)

(g)            Commercial Tort Claims.  Schedule 2(g) is a list of all
commercial tort claims (as defined in Article 9 of the Uniform Commercial Code)
held by the Loan Parties and their Subsidiaries and every entity owned, in whole
or in part, by the Loan Parties and their Subsidiaries.

See Schedule 2(g)

SECTION 3.  INTELLECTUAL PROPERTY

(a)            Patents and Patent Applications.  Schedule 3(a) is a list of all
patents and patent applications owned or submitted by the Loan Parties and their
Subsidiaries and every entity owned, in whole or in part, by the Loan Parties
and their Subsidiaries.

See Schedule 3(a)

(b)            Trademarks and Trademark Applications.  Schedule 3(b) is a list
of all trademarks (including all State trademarks, service marks and tradename
registrations) and trademark applications owned or submitted by the Loan Parties
and their Subsidiaries and every entity owned, in whole or in part, by the Loan
Parties and their Subsidiaries.

See Schedule 3(b)

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(c)            Copyrights and Copyright Applications.  Schedule 3(c) is a list
of all copyrights and copyright applications owned or submitted by the Loan
Parties and their Subsidiaries and every entity owned, in whole or in part, by
the Loan Parties and their Subsidiaries.

See Schedule 3(c)

(d)            Licenses.  Schedule 3(d) is a list  of all patent, trademark and
copyright licenses under which the Loan Parties and their Subsidiaries and every
entity owned, in whole or in part, by the Loan Parties and their Subsidiaries,
are licensors or licensees.

See Schedule 3(d)

SECTION 4.  REAL PROPERTY

(a)            Fee Properties.  Schedule 4(a) is a list of all real property
owned in fee by the Loan Parties and their Subsidiaries and every entity owned,
in whole or in part, by the Loan Parties and their Subsidiaries.

See Schedule 4(a)

(b)            Leased Properties.  Schedule 4(b) is a list of all real property
leased by the Loan Parties and their Subsidiaries and every entity owned, in
whole or in part, by the Loan Parties and their Subsidiaries.

See Schedule 4(b)

 SECTION 5.   DEPOSIT ACCOUNTS AND DEBT

(a)            Deposit Accounts.  Schedule 5(a) is a list of all deposit
accounts (including certificates and instruments evidencing such deposit
accounts) held by the Loan Parties and their Subsidiaries and every entity
owned, in whole or in part, by the Loan Parties and their Subsidiaries.

See Schedule 5(a)

            (b)            Debt.  Schedule 5(b) is a list of all debt payable to
the Loan Parties and their Subsidiaries and every entity owned, in whole or in
part, by the Loan Parties and their Subsidiaries, including without limitation,
all inter-company notes.

See Schedule 5(b)

SECTION 6.   ADDITIONAL PROPERTY
 
(a)            Collateral Held by Third Parties.  Schedule 6(a) is a list of all
names and addresses of all persons or entities, other than the Loan Parties and
their Subsidiaries and every entity owned, in whole or in part, by the Loan
Parties and their Subsidiaries, that have possession or are intended to have
possession of collateral, including, without limitation, lessees, consignees,
warehousemen or purchasers of chattel paper.

See Schedule 6(a)

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(b)            Ownership Interests of Third Parties.  Schedule 6(b) is a list of
all names and addresses of all persons or entities which hold leases or other
ownership interests in personal property held and used by the Loan Parties and
their Subsidiaries and every entity owned, in whole or in part, by the Loan
Parties and their Subsidiaries, such as lessors, consignors or conditional sales
vendors with purchase money liens on collateral.

See Schedule 6(b)

(c)            Fixtures.  Schedule 6(c) is a list identifying the locations of
fixtures owned by the Loan Parties and their Subsidiaries and every entity
owned, in whole or in part, by the Loan Parties and their Subsidiaries.

See Schedule 6(c)

SCHEDULE 7.   LIENS AND OTHER SECURITY INTERESTS

(a)            Liens and other Security Interests.  The following is (i) a list
of all entities that have a lien or other security interest on any property
owned by the Loan Parties and their Subsidiaries and every entity owned, in
whole or in part, by the Loan Parties and their Subsidiaries, (ii) a list of all
such property subject to a lien or other security interest (including, without
limitation, all real property, personal property and intellectual property) and
(iii) a list of all security documents creating such lien or other security
interest.

See Schedule 7(a)

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            IN WITNESS WHEREOF, we have hereunto set our hand to this __th day
of October 2014.

PHOTOMEDEX, INC.

By:                                                                                    
Name:  Dennis M. McGrath
Title:  President and Chief Financial Officer

LCA-VISION INC.

By:                                                                                    
Name:  Dennis M. McGrath
Title:  President

RADIANCY, INC.

By:                                                                                    
Name:  Dolev Rafaeli
Title:  President and Chief Executive Officer

PHOTOMEDEX TECHNOLOGY, INC.

By:                                                                                    
Name:  Dennis M. McGrath
Title:   President

LUMIERE, INC.
By:                                                                                    
Name:  Dennis M. McGrath
Title:   President

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Attachments:
Schedule 1(a)
 
Capital Structure
Schedule 1(b)
 
Trade Names, Division Names, Etc.
Schedule 2(a)
 
Chief Executive Office
Schedule 2(b)
 
Principal Place of Business
Schedule 2(c)
 
Places of Business
Schedule 2(d)
 
Receivables and General Intangibles
Schedule 2(e)
 
Equipment and Inventory
Schedule 2(f)
 
Books and Records
Schedule 2(g)
 
Commercial Tort Claims
Schedule 3(a)
 
Patents and Patent Applications
Schedule 3(b)
 
Trademarks and Trademark Applications
Schedule 3(c)
 
Copyrights and Copyright Applications
Schedule 3(d)
 
Licenses
Schedule 4(a)
 
Fee Properties
Schedule 4(b)
 
Leased Properties
Schedule 5(a)
 
Deposit Accounts
Schedule 5(b)
 
Debt
Schedule 6(a)
 
Collateral Held by Third Parties
Schedule 6(b)
 
Ownership Interests of Third Parties
Schedule 6(c)
 
Fixtures
Schedule 7(a)
 
Liens and other Security Interests

 
 
 

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SCHEDULE 1(a)

CAPITAL STRUCTURE

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SCHEDULE 1(b)

TRADE NAMES, DIVISION NAMES, ETC.

COMPANY                                                      NAMES, TRADE NAMES
AND SIMILAR APPELLATIONS

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SCHEDULE 2(a)

CHIEF EXECUTIVE OFFICES

COMPANY                                                      ADDRESS

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SCHEDULE 2(b)

PRINCIPAL PLACES OF BUSINESS

COMPANY                                                      ADDRESS

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SCHEDULE 2(c)

PLACES OF BUSINESS

COMPANY                                                      ADDRESS

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SCHEDULE 2(d)

RECEIVABLES AND GENERAL INTANGIBLES

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SCHEDULE 2(e)

EQUIPMENT AND INVENTORY

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SCHEDULE 2(f)

BOOKS AND RECORDS

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SCHEDULE 2(g)

COMMERCIAL TORT CLAIMS

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SCHEDULE 3(a)

PATENTS AND PATENT APPLICATIONS

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SCHEDULE 3(b)

TRADEMARKS AND TRADEMARK APPLICATIONS

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SCHEDULE 3(c)

COPYRIGHTS AND COPYRIGHT APPLICATIONS

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SCHEDULE 3(d)

LICENSES

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SCHEDULE 4(a)

FEE PROPERTIES

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SCHEDULE 4(b)

LEASED PROPERTIES

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SCHEDULE 5(a)

DEPOSIT ACCOUNTS

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SCHEDULE 5(b)

DEBT

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SCHEDULE 6(a)

COLLATERAL HELD BY THIRD PARTIES

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SCHEDULE 6(b)

OWNERSHIP INTERESTS OF THIRD PARTIES

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SCHEDULE 6(c)

FIXTURES

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SCHEDULE 7(a)

LIENS AND OTHER SECURITY INTERESTS
 
 
 

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