Document:

exv4w27

 

Exhibit
4.27

 

THIS WARRANT AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE THEREOF) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS,
AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(k),
PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY
OF SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER
APPLICABLE LAWS.

	 	 	 
	Warrant no. 6

	 	Number of Shares: 1,411,300
	December 5, 2006

	 	(subject to adjustment)

 

WARRANT TO PURCHASE ORDINARY SHARES

OF

LUMENIS LTD.

 

     For VALUE RECEIVED Bank Hapoalim B.M. (together with its successors, transferees and assigns,
the “Holder”) is entitled to purchase subject to the provisions of this Warrant (this “Warrant”)
from Lumenis Ltd., an Israeli company (“Company”), during the term of this Warrant, at a purchase
price per share equal to $1.1794 (as adjusted from time to time pursuant to the terms of this
Warrant), 1,411,300 (one million four hundred and eleven thousand and three hundred) Ordinary
Shares, par value NIS 0.1 per share, of the Company (the “Company Shares”) (as adjusted from time
to time pursuant to the terms of this Warrant). The shares purchasable upon exercise of this
Warrant and the purchase price per share, as adjusted from time to time pursuant to the terms of
this Warrant, shall be referred to herein as the “Warrant Shares” and the “Exercise Price”,
respectively.

1. Exercise.

	 	1.1.	 	Manner of Exercise. This Warrant may be exercised, in whole or in part,
on one or more occasions during its term. The Warrant may be exercised by the
surrender of this Warrant, together with the Notice of Exercise in the form attached
hereto, duly completed and executed by the Holder, at the principal office of the
Company or at such other office or agency as the Company may designate, accompanied by
payment in full of the aggregate Exercise Price payable in respect of the Warrant
Shares purchasable upon such exercise. The Exercise Price may be paid by cash, check,
wire transfer or by the cancellation of debt owed by the Company to the Holder.
	 
	 	1.2.	 	Effective Time of Exercise. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of

 

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	 	 	 	business on the day on
which this Warrant shall have been surrendered to the Company as provided in Section
1.1 above. At such time, the person(s) in whose name(s) any certificates representing
the Warrant Shares shall be issuable upon exercise as provided in Section 1.4 below
shall be deemed to have become the holder of record of such Warrant Shares represented
by such certificates.
	 
	 	1.3.	 	Net Issue Exercise.

	 	1.3.1.	 	In lieu of exercising this Warrant in the manner provided in Section 1.1
above, the Holder may elect to receive shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant
at the principal office of the Company or at such other office or agency as
the Company may designate, together with the Notice of Exercise in the form
attached hereto, duly completed and executed by the Holder, in which event
the Company shall issue to the Holder the number of Warrant Shares computed
using the following formula:

	 	 	 	 	 
	X

	 	=
	 	Y * (A — B)
	 

	 	 	 	          A

	 	 	 	 	 	 	 	 	 
	 

	 	Where:
	 	X
	 	=
	 	the number of Warrant Shares to be issued to the Holder.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Y
	 	=
	 	the number
of Warrant Shares, as adjusted to the date of such
calculation, underlying the portion of the Warrant
being exercised.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	A
	 	=
	 	the Fair
Market Value (as defined below) of one Warrant Share.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	B
	 	=
	 	the
Exercise Price, as adjusted to the date of such
calculation.

	 	1.3.2.	 	For purposes of this Section 1.3, the “Fair Market Value” of a Warrant
Share on the date of calculation shall mean:

	 	1.3.2.1.	 	If the Company Shares are listed on a national securities
exchange or are quoted on the National Association of Securities
Dealers,

 

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	 	 	 	Inc. Automated Quotation/National Market System
(NASDAQ/NMS), then the Fair Market Value shall be the average
closing or last sale price, respectively, reported for the five
(5) trading days prior to the exercise date.
	 
	 	1.3.2.2.	 	If the Company Shares are not listed on a national securities
exchange or quoted on NASDAQ/NMS, but are traded in any
over-the-counter market, then the Fair Market Value shall be
the last sale price of the Company Shares reported for the
five (5) trading days immediately preceding the exercise
date, and if no such sale price is reported, the average of
the closing bid and asked prices as reported for the five
(5) trading days prior to the exercise date. If the Company
Shares are not publicly traded, then the Fair Market Value
shall be the fair market value of a Company Share as
determined by the Board of Directors, unless the Company is
at such time subject to a Liquidity Event (as defined
below), in which case the Fair Market Value shall be deemed
to be the

 

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	 	 	 	value of the consideration per share received by
the holders of such shares pursuant to such event. In the
event that the Holder objects to the determination of the
Board of Directors of the Company, within 15 days after
receipt of such determination, the matter shall be referred
to arbitration to be conducted in accordance with Section 19
hereof.
	 
	 	1.3.2.3.	 	If the exercise is in connection with a public offering of the
Company Shares pursuant to an effective registration statement
under the Securities Act of 1933, as amended (the “Securities
Act”), or the equivalent actions under the laws of another
jurisdiction, then the fair market value shall be the initial
“Price to Public” per share specified in the final prospectus with
respect to the offering, before deduction of discounts,
commissions or expenses.

	 	1.4.	 	Delivery to Holder. As soon as practicable after the exercise of this
Warrant in whole or in part, and in any event within ten (10) days thereafter, the
Company at its expense will cause to be issued in the name of, and delivered to, the
Holder, or as such Holder may direct:

 

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	 	1.4.1.	 	a certificate(s) for the number of Warrant Shares to which such Holder
shall be entitled, and
	 
	 	1.4.2.	 	in case such exercise is in part only, a new warrant(s) (dated the date
hereof) of like tenor, calling in the aggregate on the face(s) thereof for
the number of Warrant Shares equal to the number of such shares called for on
the face of this Warrant minus the number of such shares purchased by the
Holder upon such exercise as provided in Sections 1.1 or 1.3 above.

	 	1.5.	 	Conditional Exercise. In case of an exercise made in connection with a
public offering of the Company Shares pursuant to an effective registration statement
under the Securities Act or the equivalent actions under the laws of another
jurisdiction, or a Liquidity Event (as defined below), such exercise may be made
conditional upon the closing of such offering or event.
	 
	 	 	 	For purposes of this Warrant, the term “Liquidity Event” shall mean: (i) a sale of
all or substantially all of the Company’s assets; (ii) a sale of all or
substantially all of the Company’s issued and outstanding shares, such that
following the transaction
more than fifty percent (50%) of the Company’s issued shares are held by persons
who, prior to the said transaction, held less than fifty percent (50%) of the
Company’s issued shares; or (iii) a merger or consolidation of the Company with or
into another corporation, such that following the transaction more than fifty
percent (50%) of the surviving entity’s issued shares are held by persons who,
prior to the said transaction, held less than fifty percent (50%) of the Company’s
issued shares.

	2.	 	Adjustments
	 
	 	 	The number and kind of securities purchasable upon the exercise of this Warrant and the
Exercise Price shall be subject to adjustment from time to time as follows:

	 	2.1.	 	Stock Splits, Dividends and Combinations. If the outstanding Company
Shares shall be subdivided into a greater number of shares or a dividend or other
distribution payable in additional shares shall be paid in respect of Company Shares,
the Exercise Price in effect immediately prior to such subdivision or at the record
date of such dividend shall simultaneously with the effectiveness of such subdivision
or immediately after the record date of such dividend be proportionately reduced. If
outstanding Company Shares shall be combined into a smaller number of shares, the
Exercise Price in effect immediately prior to such combination shall, simultaneously
with the effectiveness of such combination be proportionately increased. When any
adjustment is required to be made in the Exercise Price, the number of Warrant Shares
purchasable upon the exercise of this Warrant shall be changed to the number determined
by dividing (i) an amount equal to the number of shares issuable upon the exercise of
this Warrant

 

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	 	 	 	immediately prior to such adjustment, multiplied by the Exercise Price in
effect immediately prior to such adjustment, by (ii) the Exercise Price in effect
immediately after such adjustment.
	 
	 	2.2.	 	Reclassification, Etc. In case of any reclassification or change of the
outstanding securities of the Company or of any reorganization of the Company (or any
other corporation the stock or securities of which are at the time receivable upon the
exercise of this Warrant) or any similar corporate reorganization on or after the date
hereof, then and in each such case the holder of this Warrant, upon the exercise hereof
at any time after the consummation of such reclassification, change, reorganization,
merger or conveyance, shall be entitled to receive, in lieu of the stock or other
securities and property receivable upon the exercise hereof prior to such consummation,
the stock or other securities or property to which such holder would have been entitled
upon such consummation if such holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment as provided in Section 2; and in each such
case, the terms of this Section 2 shall be applicable to the shares of stock or other
securities properly receivable upon the exercise of this Warrant after such
consummation.
	 
	 	2.3.	 	Other Transactions. In the event that the Company shall issue shares
to its shareholders as a result of a split-off, spin-off or the like, then the Company
shall only complete such issuance or other action if, as part thereof, allowance is
made to protect the economic interest of the Holder either by increasing the number of
Warrant Shares or by procuring that the Holder shall be entitled, on economically
proportionate terms, to acquire additional shares of the spun-off or split-off
entities. Upon each adjustment in the number or kind of Warrant Shares purchasable
hereunder, the Exercise Price shall be proportionately increased or decreased, as
the case may be, in a manner that is the inverse of the manner in which the number
of Warrant Shares purchasable hereunder shall be adjusted.
	 
	 	2.4.	 	Notice of Adjustments. Whenever the Exercise Price or the number of
Warrant Shares purchasable hereunder shall be adjusted pursuant to this Section 2, the
Company shall prepare a certificate signed by an executive officer of the Company
setting forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, the Exercise Price
and the number of Warrant Shares purchasable hereunder after giving effect to such
adjustment, and shall cause copies of such certificate to be delivered to the Holder.

	3.	 	Investment Representations.

	 	3.1.	 	The Holder is knowledgeable, sophisticated and experienced in making, and is
qualified to make, decisions with respect to investments in shares representing an
investment decision like that involved in the purchase of this Warrant and the Warrant
Shares (the “Purchased Securities”), without limitation of the

 

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	 	 	 	representations and
warranties included herein and in the Agreement dated September 30, 2006 between the
Holder and the Company (the “Agreement”).
	 
	 	3.2.	 	The Holder is acquiring the Purchased Securities in the ordinary course of its
business and for its own account for investment only and with no present intention of
distributing any of such Purchased Securities and does not have any current arrangement
or understanding with any other persons regarding the distribution of such securities
(this representation and warranty not limiting the Holder’s right to sell or distribute
in compliance with the Securities Act and the rules and regulations thereunder);
nothing contained herein shall be deemed a representation or warranty by the Holder to
hold the Purchased Securities for any period of time;
	 
	 	3.3.	 	The Holder will not, directly or indirectly, offer, sell, pledge, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of) any of the Purchased Securities, nor will the Holder engage in any
short sale that results in a disposition of any of the Purchased Securities by the
Holder, except in compliance with the Securities Act and the rules and regulations
thereunder and any applicable state securities laws; and
	 
	 	3.4.	 	The Holder is an “accredited investor” within the meaning of Rule 501(a)
promulgated under the Securities Act. Neither such inquiries nor any other due
diligence investigation conducted by the Holder shall modify, limit or otherwise affect
the Holder’s right to rely on the Company’s representations and warranties contained
herein or in the Agreement.
	 
	 	3.5.	 	The Holder understands that its investment in the Purchased Securities involves
a significant degree of risk, including a risk of total loss of Holder’s investment.
The Holder understands that no representation is being made as to the future value or
market price of the Company Shares. The Holder has the knowledge and experience in
financial and business matters as to be capable of evaluating the merits
and risks of an investment in the Purchased Securities and has the ability to bear
the economic risks of an investment in the Purchased Securities.
	 
	 	3.6.	 	The Holder understands that, until all of the applicable provisions of Section
3.7 hereof are satisfied, any certificates representing the Purchased Securities will
bear a restrictive legend in substantially the following form:
	 
	 	 	 	“THE SECURITIES EVIDENCED BY THIS CERTIFICATE (AND ANY SECURITIES THAT MAY BE
ISSUED UPON EXERCISE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE) HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE
SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE

 

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	 	 	 	TRANSFERRED EXCEPT (1)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER
THAN PURSUANT TO RULE 144(k), PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY
REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF SUCH RULE 144(k)), UNLESS THE
COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH
TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER
APPLICABLE LAWS.”
	 
	 	3.7.	 	Promptly following the earlier of (i) effectiveness of a registration statement
under the Securities Act with respect to the sale of Purchased Securities or (ii) Rule
144(k) becoming available, the Company shall (A) deliver to the transfer agent for the
Company Shares (the “Transfer Agent”) irrevocable instructions that the Transfer Agent
shall reissue a certificate representing the Warrant Shares without legends upon
receipt by such Transfer Agent of: (a) the legended certificates for such Warrant
Shares; and (b) either (1) a customary written representation by the Holder that Rule
144(k) applies to the Warrant Shares represented thereby or (2) a written statement by
the Company that the Holder may sell the Warrant Shares represented thereby in
accordance with the Plan of Distribution contained in a registration statement that was
declared effective under the Securities Act (the date on which the Transfer Agent
receives all of the items listed in clauses (a), and (b) above, the “Legend Removal
Date”), and (B) if required by the Transfer Agent, cause its counsel to deliver to the
Transfer Agent one or more opinions to the effect that the removal of such legends in
such circumstances may be effected under the Securities Act. From and after the Legend
Removal Date, upon the Holder’s written request, the Company shall promptly cause
certificates evidencing the Holder’s Warrant Shares referred to in such written request
to be replaced with certificates which do not bear such restrictive legends, and
Warrant Shares subsequently issued upon due exercise of the Warrants shall not bear
such restrictive legends, provided the provisions of clauses (a) and (b) above, as
applicable, are satisfied with respect to such Warrant Shares.

	4.	 	Exemption from Registration. The Holder understands that the Purchased Securities are being
offered and sold to it in reliance upon specific exemptions from the registration requirements
of the Securities Act, the rules and regulations thereunder and state securities laws and that
the Company is relying upon the truth and accuracy of, and the Holder’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of the Holder set
forth herein in order to determine the availability of such exemptions and the eligibility of
the Holder to acquire the Purchased Securities.

 

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5. Transfer

	 	5.1.	 	Subject to the restrictions on transfer provided herein and subject to Sections
3.6 and 3.7, this Warrant shall be transferable, in whole or in part, at the discretion
of the Holder and the Company shall transfer this Warrant, in whole or in part, from
time to time upon the books to be maintained by the Company for that purpose, upon
surrender thereof for transfer accompanied by appropriate instructions for transfer and
such other documents as may be reasonably required by the Company, including, if
required by the Company, an opinion of its counsel to the effect that such transfer is
exempt from the registration requirements of the Securities Act, to establish that such
transfer is being made in accordance with the terms hereof, and a new Warrant(s) shall
be issued to the transferee(s) and the surrendered Warrant shall be canceled by the
Company.
	 
	 	5.2.	 	The Company will maintain a register containing the names and addresses of the
Holder(s) of this Warrant. Until any transfer of this Warrant is made in the warrant
register, the Company may treat the Holder of this Warrant as the absolute owner hereof
for all purposes. Any Holder may change such Holder’s address as shown on the warrant
register by written notice to the Company requesting such change.

	6.	 	No Impairment. The Company will not, by amendment of its charter documents or through any
reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, sale
of assets, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder, or
impair the economic interest of the Holder, but will at all times in good faith assist in the
carrying out of all the provisions hereof and in taking of all such actions and making all
such adjustments as may be necessary or appropriate in order to protect the rights and the
economic interests of the Holder against impairment.
	 
	7.	 	Termination. This Warrant and the right to purchase securities upon exercise hereof shall
terminate on 5:00 P.M. Eastern Time on December 5, 2011.
	 
	8.	 	Notices of Certain Transactions. In case:

	 	8.1.	 	the Company shall take a record of the holders of its Company Shares (or other
shares or securities at the time deliverable upon the exercise of this Warrant) for the
purpose of entitling or enabling them to receive any dividend or other distribution, or
to receive any right to subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, to subscribe for or purchase any shares of
any class or any other securities, or to receive any other right, or
	 
	 	8.2.	 	of any capital reorganization of the Company, any reclassification of the share
capital of the Company, any Liquidity Event, or

 

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	 	8.3.	 	of the voluntary or involuntary dissolution, liquidation or winding-up of the
Company, or
	 
	 	8.4.	 	of a public offering of the Company Shares pursuant to an effective
registration statement under the Securities Act or the equivalent actions under the
laws of another jurisdiction,

	 	 	then, and in each such case, the Company will deliver to the Holder a notice
specifying, as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and character of
such dividend, distribution or right, or (ii) the estimated effective date on which such
reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up is
to take place, and the time, if any is to be fixed, as of which the holders of record of
Company Shares (or such other shares or securities at the time deliverable upon such
reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up)
are to be determined. Such notice shall be delivered ten (10) days prior to the record date
or estimated effective date for the event specified in such notice.
	 
	9.	 	Reservation of Shares. The Company will at all times reserve and keep available, solely for
the issuance and delivery upon the exercise of this Warrant, such Warrant Shares and other
shares, securities and property, as from time to time shall be issuable upon the exercise of
this Warrant.
	 
	10.	 	Registration Rights.

	 	10.1.	 	The Company covenants and agrees that the Holder shall be entitled to
registration rights pursuant to the Registration Rights Agreement of even date hereof,
in respect of the Warrant Shares purchasable hereunder (and any shares issued as (or
issuable upon the conversion or exercise of any warrant, right or other security that
is issued as) a dividend or other distribution with respect to, or in exchange for or
in replacement of, such Warrant Shares), and the Warrant Shares shall be deemed to be
Registrable Securities and Original Registrable Securities thereunder.
	 
	 	10.2.	 	The Holder undertakes to be bound by the provisions of Section 9 (Lock-Up
Agreement) of the Registration Rights Agreement of even date hereof, with respect to
prohibitions to offer or sale any Warrant Shares (or any other shares exchanged
therefor), if and to the extent that this Warrant has been exercised. For the purpose
of this sub-section 10.2 the Holder shall be considered a “Holder”” and the Warrant
Shares shall be considered “Registrable Securities”, all as defined in the Registration
Rights Agreement.

	11.	 	Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or
destruction) upon delivery of an indemnity agreement reasonably satisfactory to the Company,
or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company
will issue, in lieu thereof, a new Warrant of
like tenor, dated as of the date hereof. This
Warrant is exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer agent, if any,
for other warrants of

 

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	 	 	different denominations entitling the holders thereof to purchase in
the aggregate the same number of Warrant Shares purchasable hereunder.

	12.	 	Notices. Any notice required or permitted by this Warrant shall be in writing and shall be
deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery
service or confirmed facsimile, or forty-eight (48) hours after being deposited in the regular
mail as certified or registered mail (airmail if sent internationally) with postage prepaid,
addressed (a) if to the Holder, to the address of the Holder most recently furnished in
writing to the Company and (b) if to the Company, to the address set forth below or
subsequently modified by written notice to the Holder.

	 	 	 	 	 	 	 	 	 
	 

	 	 	12.1.	 	 	If to Holder:
	 	to the address set forth on the signature page
	 
	 	 	 	 	 	 	 	 
	 

	 	 	12.2.	 	 	If to Company:
	 	Lumenis Ltd.
	 

	 	 	 	 	 	 	 	POB 240
	 

	 	 	 	 	 	 	 	Yokneam, Industrial Park Israel
	 

	 	 	 	 	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	 	 	 	 	Telephone No.: (972)-(4)-9599356
	 

	 	 	 	 	 	 	 	Facsimile No.: (972)-(4)- 9599360

	 	 	Each of the above addressees may change its address for purposes of this Section by giving to
the other addressees notice of such new address in conformance with this paragraph.
	 
	13.	 	No Rights as Shareholder. The Holder shall not have any rights as a shareholder of the
Company with regard to the Warrant Shares prior to the exercise of this Warrant, and then with
respect to such Warrant Shares purchasable upon such exercise.
	 
	14.	 	No Fractional Interest. No fractional shares will be issued in connection with any exercise
hereunder, but in lieu of such fractional shares which would otherwise be issuable the number
of shares shall rounded to the nearest whole number.
	 
	15.	 	Entire Agreement. This Warrant constitutes the entire agreement between the parties hereto
with regard to the subject matters hereof, and supercedes any prior communications, agreements
and/or understandings between the parties hereto with regard to the subject matters hereof,
including the Option Agreement dated April 30, 2001, as amended on February 6, 2003, and the
Option Agreement dated February 6, 2003, which are terminated.
	 
	16.	 	Amendment or Waiver. This Warrant may be amended only by a written instrument signed by the
Company and the Holder. Any term of this Warrant may be waived only by an instrument in
writing signed by the party against which enforcement of the waiver is sought.
	 
	17.	 	Successors. All the covenants and provisions hereof by or for the benefit of the Holder shall
bind and inure to the benefit of its respective successors and assigns hereunder.

 

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	18.	 	Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance
with the laws of the State of Israel, without giving effect to principles of conflicts of law.
The parties hereby submit any dispute arising under or in relation to this Warrant to the
exclusive jurisdiction of the competent court for the District of Tel Aviv-Jaffa, other than
with respect to the matters set forth in Section 1.3.2.2 which, in accordance with such
Section, are to be referred to arbitration.
	 
	19.	 	Arbitration Pursuant to Section 1.3.2.2.

	 	19.1.	 	In the event a matter is referred to arbitration pursuant to Section 1.3.2.2
hereof, then such arbitration shall be conducted and all decisions and awards shall be
rendered by a single arbitrator (the “Arbitrator”) in accordance with the rules of the
Israeli Arbitration Law — 1968 (the “Arbitration Law”), which rules and procedures are
deemed to be incorporated by reference into this Section. The arbitration proceedings
shall be conducted in Hebrew in Tel-Aviv, Israel. Any arbitration proceeding hereunder
shall be conducted on a confidential basis.
	 
	 	19.2.	 	The Arbitrator shall be jointly selected by the Company and the Holder, or, if
such parties do not select the Arbitrator within the ten (10) Business Days of the
delivery of a notice by either party to the other requesting such selection, then the
Arbitrator shall be appointed by the Chairman of the Israeli Bar Association.
	 
	 	19.3.	 	All aspects of the arbitration proceedings, including all preliminary and
post-ruling matters, shall be conducted in accordance with Israeli substantive laws
then in force. The Arbitrator shall be authorized to determine the procedural and
evidentiary rules applicable to the arbitration and shall not be bound by the rules of
procedure or evidence under law. The Arbitrator shall specify in writing the basis for
his decision and the basis of any other remedy authorized under this Section. The
discretion of the Arbitrator to fashion remedies hereunder shall be no broader than the
legal and equitable remedies available to a court in Israel.
	 
	 	19.4.	 	Each of the parties to the arbitration proceedings shall pay its own expenses.
The Company and the Holder will share equally the expenses of the arbitration
proceeding, unless otherwise determined by the Arbitrator in his award.
	 
	 	19.5.	 	The arbitration proceedings shall not exceed 30 Business Days from the
commencement of the proceedings. The Arbitrator shall provide its decision within 15
days after the completion of the arbitration proceedings. Any award rendered by the
Arbitrator shall be final, binding and un-appealable, except as provided in the
Arbitration Law and judgment may be entered on any such award by Israeli court having
competent jurisdiction.
	 
	 	19.6.	 	For the purpose of this Section “Business Day” shall mean each day that is not
a Friday, Saturday or holiday on which banking

 

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	 	 	 	institutions located in Tel Aviv, Israel
are authorized or obligated by law or executive order to close.

	20.	 	Headings. The headings in this Warrant are for purposes of reference only and shall not
limit or otherwise affect the meaning of any provision of this Warrant.

	21.	 	Counterparts. This Warrant may be executed in one or more counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party,
it being understood that all parties need not sign the same counterpart and that signatures
may be provided by facsimile transmission.

- Signature page follows -

 

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     This WARRANT TO PURCHASE ORDINARY SHARES OF LUMENIS LTD. is executed as of the date first set forth
above.

	 	 	 	 	 	 	 
	 	 	LUMENIS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

Acknowledged and Agreed to:

	 	 	 	 	 	 	 
	BANK HAPOALIM B.M.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 

	 	 	 
	Address:

	 	Menachem Begin 23,
	 

	 	Migdal Levinstein, Tel Aviv
	Telephone No:

	 	(972)-(3)-567-4757
	Facsimile No.:

	 	(972)-(3)- 5675699

With a mandatory copy to:

Yigal Arnon & Co.

1 Azrieli Center

Tel-Aviv, 67021

Telephone No.: (972)-(3)-608-7856

Facsimile:           (972)-(3)-608-7727

Attention:           David H. Schapiro, Advocate

 

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NOTICE OF EXERCISE

	 	 	 
	To: Lumenis Ltd.

	 	Date: [ ]

The undersigned, pursuant to the provisions set forth in the attached WARRANT TO PURCHASE ORDINARY
SHARES OF LUMENIS LTD. hereby irrevocably elects to:

o
purchase ____Company Shares covered by such Warrant and herewith makes
payment of $____ ,
representing the full purchase price for such shares at the price per share provided for in such
Warrant (as adjusted from time to time pursuant to the terms of this Warrant), or

o exercise such Warrant for ____shares purchasable under the Warrant pursuant to the Net Issue
Exercise provisions of Section 1.3 of such Warrant and tenders the Warrant accordingly.

Please issue a certificate representing the Warrant Shares in the name of the undersigned or as
otherwise indicated below, and if the number of Warrant Shares shall not be all the Warrant Shares
purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares
purchasable upon exercise of this Warrant be registered in the name of the undersigned or as
otherwise indicated below and delivered to the address stated below:

Name:

Address:

ID or Social Security No.:

	 	 	 	 	 
	 

	 	 	 	 
	(Date)

	 	(Print Name)
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Signature)exv4w28

 

Exhibit
4.28

THIS WARRANT AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE THEREOF) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS,
AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(k),
PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY
OF SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER
APPLICABLE LAWS.

	 	 	 
	Warrant no. 7
	 	Number of Shares: 11,560,343
	December 5, 2006
	 	(subject to adjustment)

 

WARRANT TO PURCHASE ORDINARY SHARES

OF

LUMENIS LTD.

 

     FOR VALUE RECEIVED, LM Partners L.P. (together with its successors, transferees and
assigns, the “Holder”) is entitled to purchase subject to the provisions of this Warrant (this
“Warrant”) from Lumenis Ltd., an Israeli company (“Company”), during the term of this Warrant, at a
purchase price per share equal to $1.0722 (as adjusted from time to time pursuant to the terms of
this Warrant), Ordinary Shares, par value NIS 0.1 per share, of the Company (the “Company Shares”)
(as adjusted from time to time pursuant to the terms of this Warrant) at an aggregate exercise
price of up to US$12,395,000. The shares purchasable upon exercise of this Warrant and the purchase
price per share, as adjusted from time to time pursuant to the terms of this Warrant, shall be
referred to herein as the “Warrant Shares” and the “Exercise Price”, respectively.

	1.	 	Exercise.

	 	1.1.	 	Manner of Exercise. This Warrant may be exercised, in
whole or in part, on one or more occasions during its term. The
Warrant may be exercised by the surrender of this Warrant, together
with the Notice of Exercise in the form attached hereto, duly
completed and executed by the Holder, at the principal office of the
Company or at such other office or agency as the Company may
designate, accompanied by payment in full of the aggregate Exercise
Price payable in respect of the Warrant Shares purchasable upon such
exercise. The Exercise Price may be paid by cash, check, wire
transfer or by the cancellation of debt owed by the Company to the
Holder.
	 
	 	1.2.	 	Effective Time of Exercise. Each exercise of this
Warrant shall be deemed to have been effected immediately prior to
the close of

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	 	 	 	business on the day on which this Warrant shall have been
surrendered to the Company as provided in Section  1.1
above. At such time, the person(s) in whose name(s) any
certificates representing the Warrant Shares shall be issuable
upon exercise as provided in Section  1.3 below shall
be deemed to have become the holder of record of such Warrant
Shares represented by such certificates.
	 
	 	1.3.	 	Delivery to Holder. As soon as practicable after the
exercise of this Warrant in whole or in part, and in any event within
ten (10) days thereafter, the Company at its expense will cause to be
issued in the name of, and delivered to, the Holder, or as such
Holder may direct:

	 	1.3.1.	 	a certificate(s) for the number of Warrant
Shares to which such Holder shall be entitled,
and
	 
	 	1.3.2.	 	in case such exercise is in part only, a new
warrant(s) (dated the date hereof) of like
tenor, calling in the aggregate on the face(s)
thereof for the number of Warrant Shares equal
to the number of such shares called for on the
face of this Warrant minus the number of such
shares purchased by the Holder upon such
exercise as provided in Section  1.1
above.

	 	1.4.	 	Conditional Exercise. In case of an exercise made in
connection with a public offering of the Company Shares pursuant to
an effective registration statement under the Securities Act or the
equivalent actions under the laws of another jurisdiction, or a
Liquidity Event (as defined below), such exercise may be made
conditional upon the closing of such offering or event.
	 
	 	 	 	For purposes of this Warrant, the term “Liquidity Event” shall mean: (i) a
sale of all or substantially all of the Company’s assets; (ii) a sale of
all or substantially all of the Company’s issued and outstanding shares,
such that following the transaction more than fifty percent (50%) of the
Company’s issued shares are held by persons who, prior to the said
transaction, held less than fifty percent (50%) of the Company’s issued
shares; or (iii) a merger or consolidation of the Company with or into
another corporation, such that following the transaction more than fifty
percent (50%) of the surviving entity’s issued shares are held by persons
who, prior to the said transaction, held less than fifty percent (50%) of
the Company’s issued shares.

	2.	 	Adjustments
	 
	 	 	The number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time as follows:

	 	2.1.	 	Purchase Agreement Adjustments. At any time following
the date hereof, if and whenever additional Company Shares are to be
issued to the Original Holder (as define below) pursuant to Article X
of the Purchase Agreement among the Company, the Holder and

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	 	 	 	the other parties named therein, dated September 30, 2006 (the
“Purchase Agreement”) (each such event, the “Trigger Issuance”),
then in each such case the following adjustment shall occur:

	 	2.1.1.	 	the then-existing Exercise Price shall
automatically be reduced, as of the close of
business on the effective date of the Trigger
Issuance, to a price, rounded to 4 decimal
points, calculated as follows:
	 
	 	 	 	(capitalized terms used but not otherwise defined herein shall
have the meaning ascribed to them in the Purchase Agreement)
	 
	 	 	 	100% multiplied by a fraction: (i) the numerator of which
equals to the aggregate amount of the purchase price paid by
the Original Holder at the Closing of the Purchase Agreement;
and (ii) the denominator of which equals to the number of
Purchased Shares actually issued to the Original Holder at the
Closing of the Purchase Agreement plus any and all
additional Company Shares that were or should have been
previously issued to the Original Holder pursuant to Article X
of the Purchase Agreement less any Redeemable A Shares,
Redeemable B Shares and/or Redeemable C Shares that were
initially issued to the Original Holder and were actually
redeemed by the Company in accordance with the provisions of
the Purchase Agreement.
	 
	 	 	 	provided, however, that in no event shall the Exercise Price
after giving effect to such Trigger Issuance be greater than
the Exercise Price in effect prior to such Trigger Issuance.
	 
	 	2.1.2.	 	The “Original Holder” shall mean the Holder,
and if the Holder is a successor, transferee,
assignee or designee, then the Investor to which
this Warrant was issued at Closing of the
Purchase Agreement and any of its successors,
transferees, assignees or designees (including
the Holder).

	 	2.2.	 	Stock Splits, Dividends and Combinations. If the
outstanding Company Shares shall be subdivided into a greater number
of shares or a dividend or other distribution payable in additional
shares shall be paid in respect of Common Shares, the Exercise Price
in effect immediately prior to such subdivision or at the record date
of such dividend shall simultaneously with the effectiveness of such
subdivision or immediately after the record date of such dividend be
proportionately reduced. If outstanding Company Shares shall be
combined into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination shall, simultaneously
with the effectiveness of such combination be proportionately
increased. When any adjustment is required to be made in the Exercise
Price, the number of Warrant Shares purchasable upon the exercise of
this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the
exercise of this Warrant

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	 	 	 	immediately prior to such adjustment, multiplied by the Exercise
Price in effect immediately prior to such adjustment, by (ii)
the Exercise Price in effect immediately after such adjustment.
	 
	 	2.3.	 	Reclassification, Etc. In case of any
reclassification or change of the outstanding securities of the
Company or of any reorganization of the Company (or any other
corporation the stock or securities of which are at the time
receivable upon the exercise of this Warrant) or any similar
corporate reorganization on or after the date hereof, then and in
each such case the holder of this Warrant, upon the exercise hereof
at any time after the consummation of such reclassification, change,
reorganization, merger or conveyance, shall be entitled to receive,
in lieu of the stock or other securities and property receivable upon
the exercise hereof prior to such consummation, the stock or other
securities or property to which such holder would have been entitled
upon such consummation if such holder had exercised this Warrant
immediately prior thereto, all subject to further adjustment as
provided in Section  2; and in each such case, the terms of
this Section  2 shall be applicable to the shares of stock
or other securities properly receivable upon the exercise of this
Warrant after such consummation.
	 
	 	2.4.	 	Other Transactions. In the event that the Company
shall issue shares to its shareholders as a result of a split-off,
spin-off or the like, then the Company shall only complete such
issuance or other action if, as part thereof, allowance is made to
protect the economic interest of the Holder either by increasing the
number of Warrant Shares or by procuring that the Holder shall be
entitled, on economically proportionate terms, to acquire additional
shares of the spun-off or split-off entities. Upon each adjustment in
the number or kind of Warrant Shares purchasable hereunder, the
Exercise Price shall be proportionately increased or decreased, as
the case may be, in a manner that is the inverse of the manner in
which the number of Warrant Shares purchasable hereunder shall be
adjusted.
	 
	 	2.5.	 	Notice of Adjustments. Whenever the Exercise Price
or the number of Warrant Shares purchasable hereunder shall be
adjusted pursuant to this Section  2, the Company shall
prepare a certificate signed by an executive officer of the Company
setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such
adjustment was calculated, the Exercise Price and the number of
Warrant Shares purchasable hereunder after giving effect to such
adjustment, and shall cause copies of such certificate to be
delivered to the Holder.
	 
	 	2.6.	 	Subsequent Issuances and Rights. Other than Company
Shares issued pursuant to the Purchase Agreement, the Company shall
not issue or grant any shares, securities or rights of any kind
conferring upon or granting to the holder thereof any rights that are
derived, arising from or triggered by, or whose terms shall be
modified, accelerated or give rise to any benefits or privileges as a
result of, the implementation of the adjustment provision contained
in Section 2.1 hereof.

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	3.	 	Investment Representations.

	 	3.1.	 	The Holder is knowledgeable, sophisticated and experienced in
making, and is qualified to make, decisions with respect to
investments in shares representing an investment decision like that
involved in the purchase of this Warrant and the Warrant Shares (the
“Purchased Securities”), without limitation of the representations
and warranties included herein and in the Purchase Agreement.
	 
	 	3.2.	 	The Holder is acquiring the Purchased Securities in the
ordinary course of its business and for its own account for
investment only and with no present intention of distributing any of
such Purchased Securities and does not have any current arrangement
or understanding with any other persons regarding the distribution of
such securities (this representation and warranty not limiting the
Holder’s right to sell or distribute in compliance with the
Securities Act and the rules and regulations thereunder); nothing
contained herein shall be deemed a representation or warranty by the
Holder to hold the Purchased Securities for any period of time;
	 
	 	3.3.	 	The Holder will not, directly or indirectly, offer, sell,
pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) any of the
Purchased Securities, nor will the Holder engage in any short sale
that results in a disposition of any of the Purchased Securities by
the Holder, except in compliance with the Securities Act and the
rules and regulations thereunder and any applicable state securities
laws; and
	 
	 	3.4.	 	The Holder is an “accredited investor” within the meaning of
Rule 501(a) promulgated under the Securities Act. Neither such
inquiries nor any other due diligence investigation conducted by the
Holder shall modify, limit or otherwise affect the Holder’s right to
rely on the Company’s representations and warranties contained herein
or in the Purchase Agreement.
	 
	 	3.5.	 	The Holder understands that its investment in the Purchased
Securities involves a significant degree of risk, including a risk of
total loss of Holder’s investment. The Holder understands that no
representation is being made as to the future value or market price
of the Company Shares. The Holder has the knowledge and experience
in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Purchased Securities and has
the ability to bear the economic risks of an investment in the
Purchased Securities.
	 
	 	3.6.	 	The Holder understands that, until all of the applicable
provisions of Section  3.7 hereof are satisfied, any
certificates representing the Purchased Securities will bear a
restrictive legend in substantially the following form:
	 
	 	 	 	“THE SECURITIES EVIDENCED BY THIS CERTIFICATE (AND ANY SECURITIES THAT MAY
BE ISSUED UPON EXERCISE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE)
HAVE NOT BEEN

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	 	 	 	REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION
(OTHER THAN PURSUANT TO RULE 144(k), PROVIDED THAT THE COMPANY HAS
RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF
SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”
	 
	 	3.7.	 	Promptly following the earlier of (i) effectiveness of a
registration statement under the Securities Act with respect to the
sale of Purchased Securities or (ii) Rule 144(k) becoming available,
the Company shall (A) deliver to the transfer agent for the Company
Shares (the “Transfer Agent”) irrevocable instructions that the
Transfer Agent shall reissue a certificate representing the Warrant
Shares without legends upon receipt by such Transfer Agent of: (a)
the legended certificates for such Warrant Shares; and (b) either (1)
a customary written representation by the Holder that Rule 144(k)
applies to the Warrant Shares represented thereby or (2) a written
statement by the Company that the Holder may sell the Warrant Shares
represented thereby in accordance with the Plan of Distribution
contained in a registration statement that was declared effective
under the Securities Act (the date on which the Transfer Agent
receives all of the items listed in clauses (a), and (b) above, the
“Legend Removal Date”), and (B) if required by the Transfer Agent,
cause its counsel to deliver to the Transfer Agent one or more
opinions to the effect that the removal of such legends in such
circumstances may be effected under the Securities Act. From and
after the Legend Removal Date, upon the Holder’s written request, the
Company shall promptly cause certificates evidencing the Holder’s
Warrant Shares referred to in such written request to be replaced
with certificates which do not bear such restrictive legends, and
Warrant Shares subsequently issued upon due exercise of the Warrants
shall not bear such restrictive legends, provided the provisions of
clauses (a) and (b) above, as applicable, are satisfied with respect
to such Warrant Shares.

	4.	 	Exemption from Registration. The Holder understands that the Purchased Securities
are being offered and sold to it in reliance upon specific exemptions from the
registration requirements of the Securities Act, the rules and regulations thereunder
and state securities laws and that the Company is relying upon the truth and accuracy
of, and the Holder’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Holder set forth herein in order to
determine the availability of such exemptions and the eligibility of the Holder to
acquire the Purchased Securities.

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	5.	 	Transfer

	 	5.1.	 	Subject to the restrictions on transfer provided herein and
subject to Sections  3.6 and  3.7, this Warrant
shall be transferable, in whole or in part, at the discretion of the
Holder and the Company shall transfer this Warrant, in whole or in
part, from time to time upon the books to be maintained by the
Company for that purpose, upon surrender thereof for transfer
accompanied by appropriate instructions for transfer and such other
documents as may be reasonably required by the Company, including, if
required by the Company, an opinion of its counsel to the effect that
such transfer is exempt from the registration requirements of the
Securities Act, to establish that such transfer is being made in
accordance with the terms hereof, and a new Warrant(s) shall be
issued to the transferee(s) and the surrendered Warrant shall be
canceled by the Company.
	 
	 	5.2.	 	The Company will maintain a register containing the names and
addresses of the Holder(s) of this Warrant. Until any transfer of
this Warrant is made in the warrant register, the Company may treat
the Holder of this Warrant as the absolute owner hereof for all
purposes. Any Holder may change such Holder’s address as shown on the
warrant register by written notice to the Company requesting such
change.

	6.	 	No Impairment. The Company will not, by amendment of its charter documents or through
any reorganization, recapitalization, transfer of assets, consolidation, merger,
dissolution, sale of assets, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder, or impair the economic interest of the Holder, but
will at all times in good faith assist in the carrying out of all the provisions
hereof and in taking of all such actions and making all such adjustments as may be
necessary or appropriate in order to protect the rights and the economic interests of
the Holder against impairment.
	 
	7.	 	Termination. This Warrant and the right to purchase securities upon exercise hereof
shall terminate on 5:00 P.M. Eastern Time on six months anniversary of the Closing
Date of the Purchase Agreement.
	 
	8.	 	Notices of Certain Transactions. In case:

	 	8.1.	 	the Company shall take a record of the holders of its Company
Shares (or other shares or securities at the time deliverable upon
the exercise of this Warrant) for the purpose of entitling or
enabling them to receive any dividend or other distribution, or to
receive any right to subscribe for or purchase any shares of any
class or any other securities, or to receive any other right, to
subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, or
	 
	 	8.2.	 	of any capital reorganization of the Company, any
reclassification of the share capital of the Company, any Liquidity
Event, or
	 
	 	8.3.	 	of the voluntary or involuntary dissolution, liquidation or
winding-up of the Company, or

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	 	8.4.	 	of a public offering of the Company Shares pursuant to an
effective registration statement under the Securities Act or the
equivalent actions under the laws of another jurisdiction,

	 	 	then, and in each such case, the Company will deliver to the Holder a notice
specifying, as the case may be, (i) the date on which a record is to be taken for
the purpose of such dividend, distribution or right, and stating the amount and
character of such dividend, distribution or right, or (ii) the estimated effective
date on which such reorganization, reclassification, Liquidity Event, dissolution,
liquidation or winding up is to take place, and the time, if any is to be fixed, as
of which the holders of record of Company Shares (or such other shares or securities
at the time deliverable upon such reorganization, reclassification, Liquidity Event,
dissolution, liquidation or winding up) are to be determined. Such notice shall be
delivered ten (10) days prior to the record date or estimated effective date for the
event specified in such notice.
	 
	9.	 	Reservation of Shares. The Company will at all times reserve and keep available,
solely for the issuance and delivery upon the exercise of this Warrant, such Warrant
Shares and other shares, securities and property, as from time to time shall be
issuable upon the exercise of this Warrant.
	 
	10.	 	Registration Rights.

	 	10.1.	 	The Company covenants and agrees that the Holder shall be
entitled to registration rights pursuant to the Registration Rights
Agreement of even date hereof, in respect of the Warrant Shares
purchasable hereunder (and any shares issued as (or issuable upon the
conversion or exercise of any warrant, right or other security that
is issued as) a dividend or other distribution with respect to, or in
exchange for or in replacement of, such Warrant Shares), and the
Warrant Shares shall be deemed to be Registrable Securities and
Original Registrable Securities thereunder.
	 
	 	10.2.	 	The Holder undertakes to be bound by the provisions of
Section 9 (Lock-Up Agreement) of the Registration Rights Agreement of
even date hereof, with respect to prohibitions to offer or sale any
Warrant Shares (or any other shares exchanged therefor), if and to
the extent that this Warrant has been exercised. For the purpose of
this sub-section  10.2 the Holder shall be considered a
“Holder”” and the Warrant Shares shall be considered “Registrable
Securities”, all as defined in the Registration Rights Agreement.

	11.	 	Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (in the case
of loss, theft or destruction) upon delivery of an indemnity agreement reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant
of like tenor, dated as of the date hereof. This Warrant is exchangeable, without
expense, at the option of the Holder, upon presentation and surrender hereof to the
Company or at the office of its stock transfer agent, if any, for other warrants of
different denominations entitling the holders thereof to purchase in the aggregate the
same number of Warrant Shares purchasable hereunder.
	 
	12.	 	Notices. Any notice required or permitted by this Warrant shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by courier,
overnight delivery service or confirmed facsimile, or forty-eight (48) hours after
being

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	 	 	deposited in the regular mail as certified or registered mail (airmail if sent
internationally) with postage prepaid, addressed (a) if to the Holder, to the
address of the Holder most recently furnished in writing to the Company and (b) if
to the Company, to the address set forth below or subsequently modified by written
notice to the Holder.

	 	12.1.	 	If to Holder: to the address set forth on the signature page
	 
	 	12.2.	 	If to Company: Lumenis Ltd.

                           POB 240

                           Yokneam, Industrial Park Israel

                           Attention: Chief Executive Officer

                           Telephone No.: (972)-(4)-9599356

                           Facsimile No.: (972)-(4)- 9599360

	 	 	Each of the above addressees may change its address for purposes of this Section by giving to
the other addressees notice of such new address in conformance with this paragraph.
	 
	13.	 	No Rights as Shareholder. The Holder shall not have any rights as a shareholder of
the Company with regard to the Warrant Shares prior to the exercise of this Warrant,
and then with respect to such Warrant Shares purchasable upon such exercise.
	 
	14.	 	No Fractional Interest. No fractional shares will be issued in connection with any
exercise hereunder, but in lieu of such fractional shares which would otherwise be
issuable the number of shares shall rounded to the nearest whole number.
	 
	15.	 	Entire Agreement. This Warrant constitutes the entire agreement between the parties
hereto with regard to the subject matters hereof, and supercedes any prior
communications, agreements and/or understandings between the parties hereto with
regard to the subject matters hereof.
	 
	16.	 	Amendment or Waiver. This Warrant may be amended only by a written instrument signed
by the Company and the Holder. Any term of this Warrant may be waived only by an
instrument in writing signed by the party against which enforcement of the waiver is
sought.
	 
	17.	 	Successors. All the covenants and provisions hereof by or for the benefit of the
Holder shall bind and inure to the benefit of its respective successors and assigns
hereunder.
	 
	18.	 	Governing Law; Jurisdiction. This Warrant shall be governed by and construed in
accordance with the laws of the State of Israel, without giving effect to principles
of conflicts of law. The parties hereby submit any dispute arising under or in
relation to this Warrant to the exclusive jurisdiction of the competent court for the
District of Tel Aviv-Jaffa.
	 
	19.	 	Headings. The headings in this Warrant are for purposes of reference only and shall
not limit or otherwise affect the meaning of any provision of this Warrant.
	 
	20.	 	Counterparts. This Warrant may be executed in one or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered

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	 	 	to the other party, it being understood that all parties need not sign the same
counterpart and that signatures may be provided by facsimile transmission.

- Signature page follows -

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This WARRANT TO PURCHASE ORDINARY SHARES OF LUMENIS LTD. is executed as of the date first set forth
above.

	 	 	 	 	 
	 	LUMENIS LTD.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Acknowledged and Agreed to:

LM Partners L.P.

By: L.M. (GP) L.P., its managing general partner

By: LM (GP) Company Ltd., its general partner

	 	 	 	 	 
	By: 

Name:

	 	 
 

	 	 
	Title:

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	By:

	 	 
 

	 	 
	Name:
	 	 	 	 
	Title:

	 	Authorized Signatory	 	 

	 	 	 	 	 
	Address:

	 	16 Abba Even Avenue
	 	 
	 

	 	Herzliya, Israel	 	 
	Telephone No:

	 	+972-(0)9-957-8595	 	 
	Facsimile No.:

	 	+972-(0)9-957-8770	 	 

With a mandatory copy to:

Meitar Liquornik Geva & Leshem Brandwein

16 Abba Hillel Road Ramat Gan 52506 Israel

Attention: Dan Shamgar, Advocate

Telephone No.: (972)-(3)-610-3100

Facsimile No.: (972)-(3)-6103-111

Herzog, Fox & Neeman

Asia House, 4 Weizmann Street

Tel-Aviv 64239 Israel

Attention: Alon Sahar, Advocate

Telephone No.: (972)-(3)-692-2861

Facsimile No.: (972)-(3)-696-6464

Execution Copy

 

- 12 -

NOTICE OF EXERCISE

			
	To: Lumenis Ltd.
	 	Date: [ ]

The undersigned, pursuant to the provisions set forth in the attached WARRANT TO PURCHASE ORDINARY
SHARES OF LUMENIS LTD. hereby irrevocably elects to purchase  Company Shares covered by
such Warrant and herewith makes payment of $ , representing the full purchase price for such shares
at the price per share provided for in such Warrant (as adjusted from time to time pursuant to the
terms of this Warrant).

Please issue a certificate representing the Warrant Shares in the name of the undersigned or as
otherwise indicated below, and if the number of Warrant Shares shall not be all the Warrant Shares
purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares
purchasable upon exercise of this Warrant be registered in the name of the undersigned or as
otherwise indicated below and delivered to the address stated below:

Name:

Address:

ID or Social Security No.:

	 	 	 
	 

	 	 
	(Date)

	 	(Print Name)
	 
	 	 
	 

	 	 

	 	 	(Signature)

Execution Copy

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