Document:

EXHIBIT 10.1
                                                                    ------------

                                   AMENDMENT 4
                                To the Agreement
       BETWEEN SEMOTUS SOLUTIONS, INC. AND BATHGATE CAPITAL PARTNERS, LLC

This Amendment is entered into this 27th day of October, 2006, and modifies the
Agreement by and among Semotus Solutions, Inc. (the "Company") and Bathgate
Capital Partners, LLC ("Bathgate") dated May 27, 2004 as amended (the
"Agreement").

WHEREAS, the Parties desire to amend the Agreement as set forth below:

"Contingent Fee. If, during the Engagement Period or the Tail Period you enter
into a reverse merger with ClearTalk or an affiliate of Cleartalk, you shall pay
Bathgate (the "Holder") an additional fee consisting of ONE HUNDRED FIFTY
THOUSAND DOLLARS ($150,000) AND TWO MILLION (2,000,000) SHARES OF THE COMPANY'S
RESTRICTED COMMON STOCK (THE "SHARES") WITH CERTAIN PIGGYBACK REGISTRATION
RIGHTS, SET FORTH AS FOLLOWS:

If (but without any obligation to do so) Company proposes to register any of the
Shares on a registration statement (other than a registration relating solely to
the sale of securities to participants in a Company stock plan, a registration
relating to a corporate reorganization or other transaction under Rule 145 of
the Act, a registration on any form that does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of the Shares, a registration in which the only Shares being
registered are Shares issuable upon conversion of debt securities that are also
being registered, or if a party holding the securities so being registered
advises the Company in writing that the Shares proposed to be included in the
registration statement will have an adverse effect on its ability to
successfully conclude the transaction), Company shall, at such time, promptly
give the Holder written notice of such registration. Upon the written request of
the Holder given within ten (10) days after mailing of such notice by Company,
Company shall, subject to the final approval of the other holder(s) of
securities (including the underwriter, if applicable) intended to be included on
such registration statement, use all reasonable efforts to cause to be
registered under the Act all of the Shares that the Holder has requested to be
registered. If and when the registration statement does become effective, the
Holder may sell an amount of shares not to exceed the daily average trading
volume of the Company's common stock in the prior month, per week.

All of the terms and conditions of the original Agreement and Amendment(s)
remain in full effect, unless specifically modified by the terms herein.

Fax Signatures. The parties hereby agree that signatures transmitted and
received via facsimile or other electronic means shall be treated for all
purposes of this Addendum, and any future Addendums or Amendments, as original
signatures and shall be deemed valid, binding and enforceable by and against
both parties.

BOTH PARTIES HERETO REPRESENT THAT THEY HAVE READ THIS AMENDMENT, UNDERSTAND IT,
AGREE TO BE BOUND BY ALL TERMS AND CONDITIONS STATED HEREIN, AND ACKNOWLEDGE
RECEIPT OF A SIGNED, TRUE AND EXACT COPY OF THIS AMENDMENT.

IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment by their
duly authorized representatives on the dates set forth below. AGREED TO:

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         SEMOTUS SOLUTIONS, INC.       BATHGATE CAPITAL PARTNERS, LLC

BY:      /S/ ANTHONY LAPINE            BY:      /S/ VICKI BARONE

NAME:    ANTHONY LAPINE                NAME:    VICKI BARONE

TITLE:   CEO                           TITLE:   SR. MANAGING PARTNER

Date:    11/03/06                      Date:    11/3/06
--------------------------------------------------------------------------------Unassociated Document

     

    EXHIBIT
      10.1

    

    SHARE
      LENDING AGREEMENT

    

    Dated
      as
      of November 9, 2006

     

    Between

     

    MEDIS
      TECHNOLOGIES LTD. (“Lender”),
      

     

    and

     

    CITIGROUP
      GLOBAL MARKETS LIMITED (“Borrower”),
      through CITIGROUP GLOBAL MARKETS INC., as agent for Borrower (“Agent”).

     

    This
      AGREEMENT sets forth the terms and conditions under which Borrower may borrow
      from Lender shares of Common Stock. Agent is entering into this Agreement solely
      in its capacity as Agent for Borrower. 

     

    The
      parties hereto agree as follows:

     

    Section
      1  .
      Certain
      Definitions.
      The
      following capitalized terms shall have the following meanings:

     

    “Business
      Day”
means
      a
      day on which regular trading occurs in the principal trading market for the
      Common Stock. 

     

    “Cash”
means
      any coin or currency of the United States as at the time shall be legal tender
      for payment of public and private debts.

     

    “Clearing
      Organization”
means
      The Depository Trust Company, or, if agreed to by Borrower and Lender, such
      other Securities Intermediary at which Borrower (or Agent) and Lender maintain
      accounts.

     

    “Closing
      Price”
on
      any
      day means, with respect to the Common Stock (i) if the Common Stock is listed
      on
      a U.S. securities exchange registered under the Exchange Act or is included
      in
      the OTC Bulletin Board Service (operated by the National Association of
      Securities Dealers, Inc.), the last reported sale price, regular way, in the
      principal trading session on such day on such market on which the Common Stock
      is then listed or is admitted to trading (or, if the day of determination is
      not
      a Business Day, the last preceding Business Day) and (ii) if the Common Stock
      is
      not so listed or admitted to trading or if the last reported sale price is
      not
      obtainable (even if the Common Stock is listed or admitted to trading on such
      market), the average of the bid prices for the Common Stock obtained from as
      many dealers in the Common Stock (which may include Borrower or its affiliates),
      but not exceeding three, as shall furnish bid prices available to the Lender.
      

     

    
      
         

      

      
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    “Convertible
      Shares”
means
      the shares of 7.25% Series A Cumulative Convertible Perpetual Preferred Stock
      issued by Lender.

     

    “Common
      Stock”
means
      shares of Common Stock, par value $.01, of Lender, or any other security, assets
      or other consideration (including cash) into which the Common Stock shall be
      exchanged or converted as the result of any merger, consolidation, other
      business combination, reorganization, reclassification, recapitalization or
      other corporate action (including, without limitation, a reorganization in
      bankruptcy). 

     

    “Cutoff
      Time”
shall
      mean 10:00 a.m. in the jurisdiction of the Clearing Organization, or such other
      time on a Business Day by which a transfer of Loaned Shares must be made by
      Borrower or Lender to the other, as shall be determined in accordance with
      market practice.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended. 

     

    “Facility
      Termination Date”
means
      the earlier to occur of (i) the first date as of which all of the Convertible
      Shares have been converted, repaid, repurchased, redeemed or are otherwise
      no
      longer outstanding and (ii) November 20, 2011.

     

    “Lender’s
      Designated Account”
means
      the securities account of the Lender maintained on the books of Citigroup Global
      Markets Limited, as securities intermediary, and designated “Medis Technologies
      Limited”(account number LDD81088), established simultaneously with the execution
      of this Agreement. 

     

    “Loaned
      Shares”
means
      shares of Common Stock transferred to the Borrower in the Loan hereunder until
      such Loan or portion thereof is terminated and a corresponding number of Loaned
      Shares is transferred to Lender pursuant to Section
      4
      hereof;
      provided that in respect of any such share of Common Stock initially transferred
      to the Borrower by Lender and subsequently transferred by the Borrower to
      another transferee, “Loaned Share” means an equivalent number of shares of
      identical Common Stock. If, as the result of a stock dividend, stock split
      or
      reverse stock split, the number of outstanding shares of Common Stock is
      increased or decreased, then the number of outstanding Loaned Shares shall
      be
      proportionately increased or decreased, as the case may be. If any new or
      different security (or two or more securities) shall be exchanged for the
      outstanding shares of Common Stock as the result of any reorganization, merger,
      consolidation, other business combination, reclassification, recapitalization
      or
      other corporate action (including, without limitation, a reorganization in
      bankruptcy), such new or different security (or such two or more securities
      collectively) shall, effective upon such exchange, be deemed to become a Loaned
      Share in substitution for the former Loaned Share for which such exchange is
      made and in the same proportion for which such exchange was made. For purposes
      of return of Loaned Shares by the Borrower or purchase or sale of 

     

    
      
         

      

      
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    securities
      pursuant to Section
      4
      or
Section
      10,
      such
      term shall include securities of the same issuer, class and quantity as the
      Loaned Shares as adjusted pursuant to the two preceding sentences.

     

    “Maximum
      Number of Shares”
means
      1,500,000 shares of Common Stock, subject to the following
      adjustments:

     

    (a)  If,
      as
      the result of a stock dividend, stock split or reverse stock split, the number
      of outstanding shares of Common Stock is increased or decreased, the Maximum
      Number of Shares shall, effective as of the payment or delivery date of any
      such
      event, be proportionally increased or decreased, as the case may
      be.

     

    (b)  If,
      pursuant to a merger, consolidation, other business combination, reorganization,
      reclassification, recapitalization or other corporate action (including, without
      limitation, a reorganization in bankruptcy), the Common Stock is exchanged
      for
      or converted into cash, securities or other property, the Maximum Number of
      Shares shall, effective upon such exchange, be adjusted by multiplying the
      Maximum Number of Shares at such time by the number of securities, the amount
      of
      cash or the fair market value of any other property exchanged for one share
      of
      Common Stock in such event.

     

    (c)  Upon
      the
      termination of the Loan pursuant to Section
      4(a),
      the
      Maximum Number of Shares shall be reduced by the number of Loaned Shares
      surrendered by Borrower to Lender. 

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    “Securities
      Intermediary”
means
      a
“securities intermediary” as defined by Section 8-102(a)(14) of the UCC.

     

    “UCC”
means
      the Uniform Commercial Code as in effect in the State of New York on the date
      hereof and as it may be amended from time to time.

     

    Section
      2.
      Loan
      Of Shares; Transfers of Loaned Shares 

     

    (a)  Subject
      to the terms and conditions of this Agreement, Lender hereby agrees to make
      available for borrowing by Borrower, on or prior to November 15, 2006, shares
      of
      Common Stock up to, in the aggregate, the Maximum Number of Shares.

     

    (b)  Subject
      to the terms and conditions of this Agreement, Borrower may, by written notice
      to Lender (a “Borrowing
      Notice”)
      seek
      to initiate a transaction in which Lender will lend Loaned Shares to Borrower
      through the issuance by Lender of such Loaned Shares to Borrower upon the terms,
      and subject to the conditions, set forth in this Agreement ( the “Loan”).
      Such
      Loan shall be confirmed by a schedule delivered by the Borrower and receipt
      listing the Loaned Shares provided by Lender to Borrower (the “Confirmation”).
      Such
      Confirmation shall constitute 

     

    
      
         

      

      
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    conclusive
      evidence with respect to the Loan, including the number of shares of Common
      Stock that are the subject of the Loan to which the Confirmation relates, unless
      Lender provides a written objection to the Confirmation specifying the reasons
      for the objection to Borrower within five Business Days after the delivery
      of
      the Confirmation to Lender; provided
      that in
      no event shall the delivery of the Confirmation or any such objection thereto
      delay the transfer of Loaned Shares to which a Borrowing Notice relates pursuant
      to clause (d)
      below.

     

    (c)  Notwithstanding
      anything to the contrary in this Agreement, Borrower shall not be permitted
      to
      borrow, and may not initiate the Loan hereunder with respect to, any shares
      of
      Common Stock to the extent that Borrower determines (in its sole discretion)
      that the Loan of such shares of Common Stock shall cause Borrower to become,
      directly or indirectly, a “beneficial owner” (within the meaning of Section
      13(d) of the Exchange Act and the rules and regulations promulgated thereunder)
      of more than 9.9% of the shares of Common Stock outstanding at such time.
Under
      no
      circumstances shall Lender be liable to Borrower for any Loan in contravention
      of this Section
      2(c).

     

    (d)  Lender
      shall transfer Loaned Shares to Borrower on or before the Cutoff Time on the
      date specified in the Borrowing Notice for the commencement of the Loan, which
      date shall not be earlier than the third Business Day following the receipt
      by
      Lender of the Borrowing Notice. Delivery of the Loaned Shares to Borrower shall
      be made in the manner set forth under Section
      11
      below.

     

    Section
      3.
      Loan Fee. Borrower
      agrees to pay Lender a single loan fee per Loan (a “Loan
      Fee”)
      equal
      to $0.01 per Loaned Share included in such Loan. The Loan Fee shall be paid
      by
      Borrower on or before the time of transfer of the Loaned Shares pursuant to
      Section
      2(d)
      on a
      delivery-versus-payment basis through the facilities of the Clearing
      Organization. 

     

    Section
      4.
      Loan Terminations. 

     

    (a)  Borrower
      may terminate all or any portion of the Loan on any Business Day by giving
      written notice thereof to Lender and transferring the corresponding number
      of
      Loaned Shares
      to
      Lender, without any consideration being payable in respect thereof by Lender
      to
      Borrower.

     

    (b)  The
      Loan,
      or any portion thereof still outstanding, shall terminate on the Facility
      Termination Date and all Loaned Shares then outstanding, if any, shall be
      delivered by Borrower to Lender, without any consideration being payable in
      respect thereof by Lender to Borrower, no later than the fifth Business Day
      following the Facility Termination Date.

     

    (c)  If
      the
      Loan is terminated upon the occurrence of a Default as set forth in Section
      9,
      the
      Loaned Shares shall be delivered by Borrower to Lender, without any
      consideration being payable in respect thereof by Lender to Borrower, no later
      

     

    
      
         

      

      
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    than
      the
      third Business Day following the termination date of such Loan as provided
      in
Section
      9. 

     

    Section
      5.
      Distributions. 

     

    (a)  If
      at any
      time when the Loan or portion thereof is outstanding under this Agreement,
      Lender pays a cash dividend or makes a cash distribution in respect of all
      its
      outstanding Common Stock, Borrower shall pay to Lender (whether or not Borrower
      is a holder of any or all of the Loaned Shares in respect of the Loan or portion
      thereof), within three Business Days after the payment of such dividend or
      distribution, an amount in cash equal to the product of (i) the amount per
      share
      of such dividend or distribution and (ii) the number of Loaned Shares
outstanding
      at such time.

     

    (b)  If
      at any
      time when the Loan or any portion thereof is outstanding under this Agreement,
      Lender makes a distribution in respect of its outstanding Common Stock (other
      than a distribution upon liquidation or a reorganization in bankruptcy) in
      property or securities, including any options, warrants, rights or privileges
      in
      respect of securities (other than a distribution of Common Stock, but including
      any options, warrants, rights or privileges exercisable for, convertible into
      or
      exchangeable for Common Stock) to the then holder or holders of such Loaned
      Shares (a “Non-Cash
      Distribution”),
      Borrower shall deliver to Lender (whether or not Borrower is a holder of any
      or
      all of the Loaned Shares) in kind, within three Business Days after the date
      of
      such Non-Cash Distribution, the property or securities distributed in an amount
      (the “Delivery Amount”) equal to the product of (i) the amount per share of
      Common Stock of such Non-Cash Distribution and (ii) the number of Loaned Shares
      outstanding at such time; provided
      that in
      lieu of such delivery, Borrower may deliver to Lender the market value of the
      Delivery Amount, as determined by the Agent in accordance with market practice
      for the property or securities constituting the Non-Cash
      Distribution.

     

    Section
      6.
      Rights
      in
      Respect of Loaned Shares. Subject
      to the terms of this Agreement, and except as otherwise agreed by Borrower
      and
      Lender, Borrower, insofar as it is the record owner of Loaned Shares, shall
      have
      all of the incidents of ownership in respect of any such Loaned Shares,
      including the right to transfer the Loaned Shares to others. 

     

    Section
      7.
      Representations and Warranties. 

     

    (a)  Each
      of
      Borrower and Lender represent and warrant to the other that:

     

    (i)  it
      has
      full power to execute and deliver this Agreement, to enter into the Loan
      contemplated hereby and to perform its obligations hereunder;

     

    
      
         

      

      
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    (ii)  it
      has
      taken all necessary action to authorize such execution, delivery and
      performance;

     

    (iii)  this
      Agreement constitutes its legal, valid and binding obligation enforceable
      against it in accordance with its terms; and

     

    (iv)  the
      execution, delivery and performance of this Agreement does not and will not
      violate, contravene, or constitute a default under, (A) its certificate of
      incorporation, bylaws or other governing documents, (B) any laws, rules or
      regulations of any governmental authority to which it is subject, (C) any
      contracts, agreements or instrument to which it is a party or (D) any judgment,
      injunction, order or decree by which it is bound.

     

    (b)  Lender
      represents and warrants to Borrower, as of the date hereof, and as of the date
      any Loaned Shares are transferred to Borrower in respect of the Loan hereunder,
      that the Loaned Shares and all other outstanding shares of Common Stock of
      the
      Company have been duly authorized and, upon the issuance and delivery of the
      Loaned Shares to Borrower in accordance with the terms and conditions hereof,
      and subject to the contemporaneous or prior receipt of the applicable Loan
      Fee
      by Lender, will be duly authorized, validly issued, fully paid nonassessible
      shares of Common Stock;
      and the
      stockholders of Lender have no preemptive rights with respect to the Loaned
      Shares. 

     

    (c)  Lender
      represents and warrants to Borrower, as of the date hereof, and as of the date
      any Loaned Shares are transferred to Borrower in respect of the Loan hereunder,
      that the outstanding shares of Common Stock are quoted on the NASDAQ National
      Market (“NASDAQ”)
      and
      the Loaned Shares have been approved for quotation on NASDAQ, subject to
      official notice of issuance.

     

    (d)  The
      representations and warranties of Borrower and Lender under this Section 7
      shall
      remain in full force and effect at all times during the term of this Agreement
      and shall survive the termination for any reason of this Agreement.

     

    Section
      8.
      Covenants. 

     

    (a)  The
      parties hereto acknowledge that Borrower has informed Lender that Borrower
      is a
“stockbroker” within the meaning of Section 101(53A) and a “financial
      participant” within the meaning of Section 101(22A) of Title 11 of the United
      States Code (the "Bankruptcy
      Code").
      The
      parties hereto further acknowledge and agree that the Loan hereunder is intended
      to be a “securities contract,” as such term is defined in Section 741(7) of the
      Bankruptcy Code entitled to the protections afforded by, among other sections,
      Sections 362(b)(6), 362(o), 546(e), 555 and 561 of the Bankruptcy Code; each
      and
      every transfer of funds, securities and other property under this Agreement
      is
      intended to be a “settlement payment” or a “margin payment,” as such terms are
      used in Sections 362(b)(6) and 546(e) of the Bankruptcy Code; and the rights
      given to Lender hereunder upon a Default by Borrower are intended to constitute
      the “contractual 

     

    
      
         

      

      
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    right”
to
      cause the liquidation, termination or acceleration of, and to offset or net
      out
      termination values or payment amounts and set off mutual debts and claims under
      or in connection with, a securities contract, as such terms are used in Sections
      555, 561 and 362(b)(6) of the Bankruptcy Code.

     

    (b)  Lender
      shall, no later than five Business Days prior to any repurchase of Common Stock,
      give Borrower a written notice of such repurchase (a “Repurchase
      Notice”)
      if,
      following such repurchase, the Outstanding Borrow Percentage after giving effect
      to such repurchase would be greater by 0.5% than the Outstanding Borrow
      Percentage included in the immediately preceding Repurchase Notice (or, in
      the
      case of the first such Repurchase Notice, greater than the Outstanding Borrow
      Percentage as of the date hereof). The “Outstanding
      Borrow Percentage”
as
      of
      any day is the fraction (A) the numerator of which is the number of Loaned
      Shares outstanding on such day and (B) the denominator of which is the number
      of
      shares of Common Stock outstanding on such day, including such Loaned Shares.
      

     

    Section
      9.
      Defaults 

     

    (a)  The
      Loan
      may, at the option of the Lender by a written notice to Borrower (which option
      shall be deemed exercised, even if no notice is given, immediately on the
      occurrence of an event specified in either Section
      9(a)(iii)
      or
(iv)
      below),
      be terminated (i) immediately on the occurrence of any of the events set forth
      in Section
      9(a)(iii)
      or
(iv)
      below
      and (ii) two Business Days following such notice on the occurrence of any of
      the
      other events set forth below, (each, a “Default”):

     

    (i)  Borrower
      fails to deliver Loaned Shares to Lender as required by Section
      4;

     

    (ii)  Borrower
      fails to deliver or pay to Lender when due any cash, securities or other
      property as required by Section
      5;

     

    (iii)  the
      filing by or on behalf of Borrower of a voluntary petition or an answer seeking
      reorganization, arrangement, readjustment of its debts or for any other relief
      under any bankruptcy, reorganization, receivership, compromise, arrangement,
      insolvency, readjustment of debt, dissolution, winding-up or liquidation or
      similar act or law, of any state, federal or other applicable foreign
      jurisdictions, now or hereafter existing (“Bankruptcy
      Law”),
      or
      any action by Borrower for, or consent or acquiescence to, the appointment
      of a
      receiver trustee, custodian or similar official of Borrower, or of all or a
      substantial part of its property; or the making by Borrower of a general
      assignment for the benefit of creditors; or the admission by Borrower in writing
      of its inability to pay its debts as they become due; 

     

    
      
         

      

      
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    (iv)  the
      filing of any involuntary petition against Borrower in bankruptcy or seeking
      reorganization, arrangement, readjustment of its debts or for any other relief
      under any Bankruptcy Law and an order for relief by a court having jurisdiction
      in the premises shall have been issued or entered therein; or any other similar
      relief shall be granted under any applicable federal or state law or law of
      any
      other applicable foreign jurisdictions; or a decree or order of a court having
      jurisdiction in the premises for the appointment of a receiver, liquidator,
      sequestrator, trustee or other officer having similar powers over Borrower
      or
      over all or a part of its property shall have been entered; or the involuntary
      appointment of an interim receiver, trustee or other custodian of Borrower
      or of
      all or a substantial part of its property or the issuance of a warrant of
      attachment, execution or similar process against any substantial part of the
      property of Borrower; and continuance of any such event for 15 consecutive
      calendar days unless dismissed, bonded to the satisfaction of the court having
      jurisdiction in the premises or discharged; 

     

    (v)  Borrower
      fails to provide any indemnity as required by Section
      12;
      

     

    (vi)  Borrower
      notifies Lender of its inability to or intention not to perform its obligations
      hereunder or otherwise disaffirms, rejects or repudiates any of its obligations
      hereunder; or

     

    (vii)  any
      representation made by Borrower in this Agreement or in connection with the
      Loan
      hereunder shall be incorrect or untrue in any material respect during the term
      of the Loan hereunder or Borrower fails to comply in any material respect with
      any of its covenants under this Agreement.

     

    Section
      10.
      Remedies. 

     

    (a)  Notwithstanding
      anything to the contrary herein, if, (x) upon the termination of the Loan by
      Lender under Section
      9
      or (y)
      Borrower notifies Lender of a termination of all or any portion of the Loan
      pursuant to Section
      4(a),
      and in
      either case, at the time of such termination or notice, the purchase of Common
      Stock in an amount equal to all or any portion of the Loaned Shares to be
      delivered to Lender in accordance with Section
      4(c),
      or 4(a)
      as applicable, shall (i) be prohibited by any law, rules or regulation of any
      governmental authority to which it is or would be subject, (ii) violate, or
      would upon such purchase likely violate, any order or prohibition of any court,
      tribunal or other governmental authority, (iii) require the prior consent of
      any
      court, tribunal or governmental authority prior to any such
      repurchase,
      (iv)
      subject Borrower, in the sole reasonable judgment of Borrower, to any liability
      or potential liability under any applicable federal securities laws (including,
      without limitation, Section 16 of the Exchange Act), or (v) be commercially
      impracticable, in the reasonable judgment of Borrower, in the time period
      required by Section
      4(c)
      (each of
      (i), (ii), (iii), (iv) 

     

    
      
         

      

      
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    and
      (v),
      a “Legal
      Obstacle”),
      then,
      in each case, Borrower shall immediately notify Lender of the Legal Obstacle
      and
      the basis therefor, whereupon Borrower's obligations under Section
      4(c)
      or 4(a)
      as applicable shall be suspended until such time as no Legal Obstacle with
      respect to such obligations shall exist (a “Repayment
      Suspension”).
      Following the occurrence of and during the continuation of any Repayment
      Suspension, Borrower shall use its reasonable best efforts to remove or cure
      the
      Legal Obstacle as soon as practicable. If Borrower is unable to remove or cure
      the Legal Obstacle within five Business Days of the termination of the Loan
      by
      Lender under Section 9 or notice under Section 4(a), Borrower shall pay to
      Lender, in lieu of the delivery of Loaned Shares in accordance with Section
      4(c),
      an
      amount in immediately available funds (the “Replacement
      Cash”)
      equal
      to the product of the Closing Price as of the Business Day immediately preceding
      the date Borrower makes such payment and the number of Loaned Shares otherwise
      required to be delivered.

     

    (b)  If
      Borrower shall fail to deliver Loaned Shares to Lender pursuant to Section
      4(c)
      when
      due, then, in addition to any other remedies available to Lender under this
      Agreement or under applicable law, Lender shall have the right (upon prior
      written notice to Borrower) to purchase a like amount of Loaned Shares
      (“Replacement
      Shares”)
      in the
      principal market for such securities in a commercially reasonable manner;
provided
      that if
      any Repayment Suspension shall exist and be continuing, Lender may not exercise
      its right to purchase Replacement Shares unless Borrower shall fail to pay
      the
      Replacement Cash to Lender when due in accordance with Section
      10
      above.
      To the extent Lender shall exercise such right, Borrower’s obligation to return
      a like amount of Loaned Shares or to pay the Replacement Cash, as applicable,
      shall terminate and Borrower shall be liable to Lender for the purchase price
      of
      Replacement Shares (plus all other amounts, if any, due to Lender hereunder),
      all of which shall be due and payable within one Business Day of notice to
      Borrower by Lender of the aggregate purchase price of the Replacement Shares.
      The purchase price of Replacement Shares purchased under this Section
      10
      shall
      include broker’s fees and commissions and all other reasonable costs, fees and
      expenses related to such purchase; provided that Borrower shall not be liable
      for any broker’s fees and commissions to the extent that an affiliate of
      Borrower offered to act as broker for purchases of Replacement Shares and Lender
      elected to use a different broker. 

     

    Section
      11.
      Transfers. 

     

    (a)  All
      transfers of Loaned Shares to Borrower or to Lender hereunder shall be made
      by
      the crediting by a Clearing Organization of such financial assets to the
      transferee’s “securities account” (within the meaning of Section 8-501 of the
      UCC) maintained with such Clearing Organization. All transfers of Loaned Shares
      to Lender hereunder shall be made by the crediting of such Loaned Shares to
      Lender’s Designated Account. In every transfer of “financial assets” (within the
      meaning of Section 8-102 of the UCC) hereunder, the transferor shall take all
      steps necessary (a) to effect a delivery of such financial assets to the
      transferee under Section 8-301 of the UCC, or to cause the creation of a
      security entitlement in favor 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    of
      the
      transferee in such financial assets under Section 8-501 of the UCC, (b) to
      enable the transferee to obtain “control” (within the meaning of Section 8-106
      of the UCC) of such financial assets, and (c) to provide the transferee with
      comparable rights under any corresponding law or regulation of any other
      applicable jurisdiction.

     

    (b)  All
      transfers of cash hereunder to Borrower or Lender shall be by wire transfer
      in
      immediately available, freely transferable funds.

     

    (c)  A
      transfer of securities or cash may be effected under this Section
      11
      on any
      day except (i)
      a day on
      which the transferee is closed for business at its address set forth in
Section
      14
      or
(ii)
      a day on
      which a Clearing Organization or wire transfer system is closed, if the
      facilities of such Clearing Organization or wire transfer system are required
      to
      effect such transfer.

     

    Section
      12.
      Indemnities. 

     

    (a)  Lender
      hereby agrees to indemnify and hold harmless Borrower and its affiliates and
      its
      former, present and future directors, officers, employees and other agents
      and
      representatives from and against any and all liabilities, judgments, claims,
      settlements, losses, damages, fees, liens, taxes, penalties, obligations and
      expenses (and losses relating to Borrower’s market activities as a consequence
      of becoming, or of the risk of becoming, subject to Section 16(b) under the
      Exchange Act, including without limitation, any forbearance from market
      activities or cessation of market activities and any losses in connection
      therewith or with respect to this Agreement) incurred or suffered by any such
      person or entity directly or indirectly arising from, by reason of, or in
      connection with, (i) any breach by Lender of any of its representations or
      warranties contained in Section
      7or
      (ii)
      any breach by Lender of any of its covenants or agreements in this
      Agreement.

     

    (b)  Borrower
      hereby agrees to indemnify and hold harmless Lender and its affiliates and
      its
      former, present and future directors, officers, employees and other agents
      and
      representatives from and against any and all liabilities, judgments, claims,
      settlements, losses, damages, fees, liens, taxes, penalties, obligations and
      expenses incurred or suffered by any such person or entity directly or
      indirectly arising from, by reason of, or in connection with (i) any breach
      by
      Borrower of any of its representations or warranties contained in Section
      7
      or (ii)
      any breach by Borrower of any of its covenants or agreements in this
      Agreement.

     

    (c)  In
      case
      any claim or litigation which might give rise to any obligation of a party
      under
      this Section
      12
      (each an
“Indemnifying
      Party”)
      shall
      come to the attention of the party seeking indemnification hereunder (the
“Indemnified
      Party”),
      the
      Indemnified Party shall promptly notify the Indemnifying Party in writing of
      the
      existence and amount thereof; provided that the failure of the Indemnified
      Party
      to give such notice shall not adversely affect the right of the Indemnified
      Party to indemnification under this Agreement, except to the extent the
      Indemnifying Party is materially prejudiced thereby. The Indemnifying Party
      shall 

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    promptly
      notify the Indemnified Party in writing if it accepts such claim or litigation
      as being within its indemnification obligations under this Section
      12.
      Such
      response shall be delivered no later than 30 days after the initial notification
      from the Indemnified Party; provided that, if the Indemnifying Party reasonably
      cannot respond to such notice within 30 days, the Indemnifying Party shall
      respond to the Indemnified Party as soon thereafter as reasonably
      possible.

     

    (d)  An
      Indemnifying Party shall be entitled to participate in and, if (i) in the
      judgment of the Indemnified Party such claim can properly be resolved by money
      damages alone and the Indemnifying Party has the financial resources to pay
      such
      damages and (ii) the Indemnifying Party admits that this indemnity fully covers
      the claim or litigation, the Indemnifying Party shall be entitled to direct
      the
      defense of any claim at its expense, but such defense shall be conducted by
      legal counsel reasonably satisfactory to the Indemnified Party. An Indemnified
      Party shall not make any settlement of any claim or litigation under this
Section
      12
      without
      the written consent of the Indemnifying Party. 

     

    Section
      13.
      Termination Of Agreement. 

     

    (a)  This
      Agreement may be terminated (i) at any time by the written agreement of Lender
      and Borrower, or (ii) by Lender upon the occurrence of a Default.

     

    (b)  Unless
      otherwise agreed by Borrower and Lender, the provisions of Section
      12
      shall
      survive the termination of this Agreement.

     

    Section
      14.
      Notices. 

     

    (a)  All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given when received.

     

    (b)  All
      such
      notices and other communications shall be directed to the following address:
      

     

    
      	
            	(i)	
              If
                to Borrower or Agent to:

            

    

     

    Citigroup
      Global Markets Inc.

    390
      Greenwich Street

    New
      York,
      NY 10013

    Telephone:
      212-723-7355

    Telecopier:
      212-723-8328

    Attention:
      Jason Shrednick

     

    
      	
            	(ii)	
              If
                to Lender to:

            

    

     

    Medis
      Technologies Ltd. 

    805
      Third
      Avenue 

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    New
      York,
      NY 10022

    Telephone:
      972-8-918-8610

    Telecopier:
      972-8-920-0024

    Attention:
      Israel Fisher 

     

    (c)  In
      the
      case of any party, at such other address as may be designated by written notice
      to the other parties.

     

    Section
      15.
      Governing Law; Submission To Jurisdiction; Severability. 

     

    (a)  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, but excluding any choice of law provisions that would require
      the application of the laws of a jurisdiction other than New York.

     

    (b)  EACH
      PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO THE NON-EXCLUSIVE
      JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
      NEW
      YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH COURT, SOLELY FOR THE PURPOSE
      OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO ENFORCE ITS OBLIGATIONS HEREUNDER
      OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY LOAN HEREUNDER AND (B) WAIVES,
      TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY DEFENSE OF AN INCONVENIENT
      FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND
      ANY
      RIGHT OF JURISDICTION ON ACCOUNT OF ITS PLACE OF RESIDENCE OR
      DOMICILE.

     

    (c)  EACH
      PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE TO TRIAL
      BY
      JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
      THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    (d)  To
      the
      extent permitted by law, the unenforceability or invalidity of any provision
      or
      provisions of this Agreement shall not render any other provision or provisions
      herein contained unenforceable or invalid.

     

    Section
      16. Counterparts.
      This
      Agreement may be executed in any number of counterparts, and all such
      counterparts taken together shall be deemed to constitute one and the same
      agreement. 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto to have executed this Share Lending
      Agreement as of the date and year first above written.

     

    

    
      	
               

              MEDIS
                TECHNOLOGIES LTD. as Lender

            	 	
               

              CITIGROUP
                GLOBAL MARKETS LIMITED as Borrower

               

            
	
               

              By:__________________________

              Name:

              Title:

               

               

            	 	
               

              By:_________________________

              Name:

              Title:

               

               

            

    

    

    
      	
               

              CITIGROUP
                GLOBAL MARKETS INC. as Agent 

               

            	 	 
	
               

              By:_________________________

              Name:

              Title:

               

               

            	 	 

    

     

    
      
         

      

      
        13

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