Document:

EXHIBIT
10.11

 

Robert K. Lifton

Chairman
and CEO

 

March 14, 2003

 

 

Mr. Gennadi Finkelshtain

More Energy Ltd.

14 Shabazi Street

Yehud Israel

 

Subject:          Amendment of, and Exercise of Option
under, Agreement Dated November 9, 2000

 

 

Dear Gennadi:

 

Reference is hereby made to that Agreement (the
“Agreement”) entered into the 9th day of November 2000, by and
between Medis Technologies Ltd. and Mr. Gennadi Finkelstain, whereby you
granted to us the option to purchase 70 shares of More Energy Ltd. (“More
Energy”) owned by you (the “Option”), representing 7% of the total issued and
outstanding shares of More Energy.

 

This will confirm our agreement that the Option may be
exercised by us, in full or in part, at any time or from time to time, until
the Agreement expires in accordance with its terms, notwithstanding anything to
the contrary in the Agreement. All other provisions of the Agreement shall
remain in full force and effect and are hereby ratified, confirmed and
approved.

 

Provided you agree to the new Option exercise terms
described in the above paragraph by executing this letter in the space provided
below, we hereby elect to exercise the Option in full and, pursuant to the
Agreement, shall issue to you 120,000 shares of our common stock as payment in
full for such exercise. Furthermore, by executing this letter in the space
provided below, you hereby represent to us that such shares are being acquired
by you for investment purposes only and not with a view to their public
distribution.

 

	
   

  	
   

  	
   

  	
  Very truly yours,

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Medis
  Technologies Ltd.

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  By:

  	
  /s/ ROBERT K. LIFTON

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	 

	
  Agreed to and Accepted:

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
  /s/ GENNADI FINKELSHTAIN

  	
   

  	
   

  	
   

  
	
  Gennadi FinkelshtainExhibit 10.23

 

FOURTH
MODIFICATION OF AMENDED AND RESTATED

REVOLVING LINE OF CREDIT LOAN AGREEMENT, TERM LOANS

AGREEMENT AND SECURITY AGREEMENT

 

THIS FOURTH
MODIFICATION OF AMENDED AND RESTATED REVOLVING LINE OF CREDIT LOAN AGREEMENT,
TERM LOANS AGREEMENT AND SECURITY AGREEMENT (“Fourth Modification”) is entered
into effective as of the 3rd day of February, 2003, by and between
On-Site Sourcing, Inc., a Delaware corporation (the “Borrower”), with its
principal office at 832 North Henry Street, Alexandria, Virginia 22314, and
Wachovia Bank, National Association, formerly known as First Union National
Bank (the “Lender”), a national banking association with an address of 1970
Chain Bridge Road, McLean, Virginia 
22102.

 

RECITALS:

 

R-1.                           Lender
made a loan in the form of a revolving line of credit (“Line of Credit”) to
Borrower, currently in the maximum principal sum of Seven Million and 00/100
Dollars ($7,000,000.00), evidenced by an Amended and Restated Revolving Note,
dated as of May 30, 2001, as modified by that certain First Modification of
Amended and Restated Revolving Note dated as of May 23, 2002 (the “Revolving
Note”).  The Line of Credit is governed
and secured by that certain Amended and Restated Revolving Line of Credit Loan
Agreement, Term Loans Agreement and Security Agreement executed by Borrower and
Lender dated as of May 30, 2001, as modified by that certain First Modification
of Amended and Restated Revolving Line of Credit Loan Agreement, Term Loans
Agreement and Security Agreement dated as of July 2, 2001, that certain Second
Modification of Amended and Restated Revolving Line of Credit Loan Agreement,
Term Loans Agreement and Security Agreement dated as of May 23, 2002, and that
certain Third Modification of Amended and Restated Revolving Line of Credit
Loan Agreement, Term Loans Agreement and Security Agreement dated as of
September 25, 2002 (as so modified, the “Loan Agreement”).

 

R-2.                           The
Loan Agreement also governs and secures (1) that certain term loan to Borrower
and North Henry Street Realty Company, LLC, a Delaware limited liability
company (“North Henry”), in the original principal amount of Five Million Eight
Hundred Thousand and 00/100 Dollars ($5,800,000.00), as evidenced by that
certain Commercial Note executed by Borrower and North Henry dated as of
November 15, 2000; (2) that certain term loan to Borrower in the original
principal amount of One Million One Hundred Twenty Five Thousand and 00/100
Dollars ($1,125,000.00), as evidenced by that certain Term Note dated June 12,
2000, and (3) that certain term loan to Borrower in the original principal
amount of One Million Seven Hundred Eighty Thousand Three Hundred and 00/100
Dollars ($1,780,300.00), as evidenced by that certain Term Note dated July 2,
2001.

 

R-3.                           Borrower
and Lender have agreed to modify the Loan Agreement in certain respects as more
fully set forth herein.

 

 

NOW,
THEREFORE, in consideration of the premises, the mutual agreements herein
contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower and the Lender
hereby agree as follows:

 

1.                                       To
induce the Lender to enter into this Fourth Modification, the Borrower warrants
and represents to the Lender that:

 

a.                                       The
Borrower’s books and records properly reflect the Borrower’s financial
condition, and no material adverse change in the Borrower’s financial condition
has occurred since the last date that the Borrower provided financial reports
to the Lender; and

 

b.                                      No
litigation is pending or threatened against the Borrower of which the Borrower
has not informed the Lender in writing; and

 

c.                                       The
Borrower is in compliance with all provisions of the Loan Agreement and with
all applicable laws and regulations; and

 

d.                                      Borrower
has the power and authority to enter into this Fourth Modification, to perform
its obligations hereunder, to execute all documents being executed and
delivered in connection herewith, and to incur the obligations provided for
herein, all of which have been duly authorized and approved in accordance with
the Borrower’s organizational documents; and

 

e.                                       This
Fourth Modification, together with all documents executed in connection
herewith or pursuant hereto, constitute the valid and legally binding
obligations of the Borrower in accordance with their respective terms; and

 

f.                                         The
Borrower’s obligations under the Loan Documents (as defined in the Loan
Agreement as modified hereby) remain valid and enforceable obligations, and the
execution and delivery of this Fourth Modification and any other documents
executed in connection herewith shall not be construed as a novation of the
Loan Agreement or the other Loan Documents.

 

2.                                       The
definition of “EBIT” set forth in Section 1.1of the Loan Agreement is hereby
deleted in its entirety and restated as follows:

 

“bb.                         “EBIT”
means the consolidated net income of the Borrower and its subsidiaries
determined quarterly on a rolling four quarter period basis in accordance with
GAAP, after giving effect to all expenses and other property

 

2

 

charges, but
excluding interest and income taxes, and, with the Lender’s prior approval,
excluding (i) gains or losses on asset sales, (ii) losses or charges related to
impairment of existing goodwill, and (iii) losses related to discontinued
operations.”

 

3.                                       Section
6.14.c. of the Loan Agreement entitled “Interest Coverage Ratio” is
deleted in its entirety and restated as follows:

 

“c.                                 Interest
Coverage Ratio.  A minimum Interest
Coverage Ratio of 2.0 to 1.0 to be measured at the end of each of Borrower’s
fiscal quarters, at the end of each of Borrower’s fiscal years and at such
other times as Lender may require as determined by Lender in its sole and
absolute discretion; provided however, and solely with respect to the
Borrower’s fiscal quarters ending December 31, 2002, March 31, 2003, and June
30, 2003 (and any interim periods ending between December 31, 2002, and June
30, 2003), the minimum Interest Coverage Ratio shall be 1.75 to 1.

 

4.                                       The
Borrower promises to pay, on demand, all costs (including attorneys fees)
incurred by the Lender for the preparation of this Fourth Modification, any
additional documents and any other expenses incurred by Lender in relation to
this Fourth Modification.

 

5.                                       The
Borrower authorizes the Lender to advance funds to itself or to third parties
to pay the fees, costs and expenses listed in this Fourth Modification, which
advances shall be deemed to be Advances to the Borrower under the Loan
Agreement.

 

6.                                       ARBITRATION: PROVISIONS IN THE LOAN
AGREEMENT REGARDING ARBITRATION ARE INCORPORATED HEREIN BY REFERENCE AS IF
FULLY SET FORTH HEREIN.

 

7.                                       Except
as modified by this Fourth Modification, the Loan Agreement remains in full
force and effect and unmodified. 
Borrower warrants and represents that it has no offsets or defenses to
its obligations under the Loan Agreement, as so modified, and the other Loan
Documents.

 

8.                                       In
consideration of Lender’s agreement to this Fourth Modification, the Borrower
hereby releases and waives any and all claims of any kind that it may have
against the Lender as of the date of this Fourth Modification arising out of or
relating to the Loan Agreement, as amended by this Fourth Modification.

 

3

 

IN WITNESS
WHEREOF, the parties have executed this Fourth Modification as of the date and
year first written above.

 

 

	
   

  	
  ON-SITE SOURCING, INC., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Jason Parikh

  	
  (SEAL)

  
	
   

  	
  Name:

  	
   Jason Parikh

  	
   

  
	
   

  	
  Title:

  	
   CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Joseph C. Costa

  	
  (SEAL)

  
	
   

  	
  Name:

  	
   Joseph C. Costa

  	
   

  
	
   

  	
  Title:

  	
   Vice-President

  	
   

  
							

 

 

STATE OF VIRGINIA

COUNTY OF Arlington: to wit:

 

I, the
undersigned Notary Public in and for the State and County aforesaid, do hereby
certify that Jason Parikh as CFO of On-Site Sourcing, Inc., whose name is
signed to the foregoing Fourth Modification of Amended and Restated Revolving
Line of Credit Loan Agreement, Term Loans Agreement and Security Agreement,
dated the 3rd day of February, 2003, personally appeared before me
within the aforesaid jurisdiction and acknowledged the same.

 

GIVEN under my
hand and seal this 3rd day of February, 2003.

 

 

	
   

  	
  /s/ A. Touloumes - Britt

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
  My Commission expires:  6/30/05

  	
   

  

 

4

 

STATE OF VIRGINIA

COUNTY OF Fairfax: to wit:

 

I, the
undersigned Notary Public in and for the State and County aforesaid, do hereby
certify that Joseph C. Costa as Vice-President of Wachovia Bank, National
Association, whose name is signed to the foregoing Fourth Modification of
Amended and Restated Revolving Line of Credit Loan Agreement, Term Loans
Agreement and Security Agreement, dated the 3rd day of Feburary,
2003, personally appeared before me within the aforesaid jurisdiction and acknowledged
the same.

 

GIVEN under my
hand and seal this 3rd day of February, 2003.

 

 

	
   

  	
  /s/ Karen E. Reynolds

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
  My Commission expires:  May 31, 2005

  	
   

  

 

5

 

CONSENT
OF NORTH HENRY STREET REALTY COMPANY, LLC TO FOURTH

MODIFICATION TO AMENDED AND RESTATED REVOLVING LINE OF

CREDIT LOAN AGREEMENT, TERM LOANS AGREEMENT
AND SECURITY

AGREEMENT AND  RELATED DOCUMENTS

 

North Henry
Street Realty Company, LLC, a Delaware limited liability company (“North
Henry”), the grantor under that certain Deed of Trust, Assignment of Rents and
Security Agreement dated as of November 15, 2000 (the “Deed of Trust”),
benefitting Wachovia Bank, National Association (formerly known as First Union
National Bank) (“Wachovia”) to secure, among other things, that Commercial Note
executed and made payable by On-Site Sourcing, Inc., a Delaware corporation and
North Henry to Wachovia in the original principal amount of Five Million Eight
Hundred Thousand and 00/100 Dollars ($5,800,000.00), does hereby acknowledge,
consent and agree to the annexed Fourth Modification to Amended and Restated
Revolving Line of Credit Loan Agreement, Term Loans Agreement and Security
Agreement (the “Fourth Modification”), and all documents executed in connection
with the Fourth Modification, and North Henry represents, warrants and agrees
that North Henry has no offsets or defenses to the Deed of Trust, the Fourth
Modification and the Amended and Restated Revolving Line of Credit Loan
Agreement, Term Loans Agreement and Security Agreement modified thereby (and as
previously modified), or any other document or agreement to which North Henry
is bound or which was executed for the benefit of Wachovia.

 

	
   

  	
  NORTH HENRY STREET REALTY COMPANY, LLC, a
  Delaware limited liability company, by ON-SITE SOURCING, INC., a Delaware
  corporation, as its sole manager and sole member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Jason Parikh

  	
  [SEAL] 

  
	
   

  	
  Name:

  	
   Jason Parikh

  	
   

  
	
   

  	
  Title:

  	
   CFO

  	
   

  
					

 

6

 

	
  State of Virginia

  	
  )

  
	
  County of Arlington

  	
  ) To Wit:

  

 

Acknowledged
before me by Jason Parikh as CFO of On-Site Sourcing, Inc., a Delaware
corporation, as the sole manager and member of North Henry Street Realty
Company, LLC, a Delaware limited liability company this 3rd day of
February, 2003.

 

 

	
  [SEAL]

  	
     /s/ Touloumes - Britt

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
  My commission expires:  6/30/05

  	
   

  

 

7

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