Document:

exv4w21

 

Exhibit
4.21

RESTRUCTURING AGREEMENT

BETWEEN

as the Borrower

and

www.bankhapoalim.co.il

as the Bank

September 29, 2006

	 	 	 
	(YIGAL ARNON & CO. LOGO)

	 	
	1 Azrieli Center

	 	The Rubinstein House
	(Round Tower)

	 	20 Lincoln St.
	Tel Aviv, Israel

	 	Tel Aviv, Israel
	www.arnon.co.il

	 	www.zelpel.com
	 
	 	 
	

	 	
	4 Weizmann St.
	 	 
	Asia House

	 	16 Abba Hillel St.
	Tel Aviv, Israel

	 	Ramat Gan, Israel
	www.hfn.co.il

	 	www.meitar.com

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page No.
	1.  INTERPRETATION 
	 	 	4	 
	2. RESTRUCTURING
	 	 	16	 
	3. CONDITIONS PRECEDENT
	 	 	20	 
	4. REPAYMENT
	 	 	22	 
	5. VOLUNTARY PREPAYMENT
	 	 	23	 
	6. MANDATORY PREPAYMENT
	 	 	25	 
	7. INTEREST
	 	 	26	 
	8. LEGAL AND OTHER COSTS
	 	 	26	 
	9. TAXES
	 	 	27	 
	10. INCREASED COSTS
	 	 	29	 
	11. ILLEGALITY
	 	 	30	 
	12. REPRESENTATIONS AND WARRANTIES
	 	 	31	 
	13. UNDERTAKINGS
	 	 	32	 
	14. DEFAULT
	 	 	41	 
	15. DEFAULT INTESEST
	 	 	45	 
	16. BROKEN FUNDING INDEMNITY
	 	 	46	 
	17. PAYMENTS
	 	 	47	 
	18. RIGHTS OF THE BANK
	 	 	47	 
	19. APPLICATION OF PAYMENTS
	 	 	49	 
	20. CALCULATION AND EVIDENCE OF DEBT
	 	 	50	 
	21. ASSIGNMENTS AND TRANSFERS
	 	 	50	 
	22. REMEDIES AND WAIVERS
	 	 	51	 
	23. NOTICES
	 	 	52	 
	24. AMENDMENTS
	 	 	53	 
	25. COUNTERPARTS
	 	 	53	 
	26. GOVERNING LAW AND JURISDICTION
	 	 	53	 
	27. ENTIRE AGREEMENT
	 	 	53	 

Page 2 of 59

 

THIS AGREEMENT is made on the 29th day of September, 2006,

BETWEEN:

	(1)	 	LUMENIS LTD., a company incorporated under the laws of Israel, whose registered office is
at Industrial Zone, Yoquneam, Israel

(“the Borrower”);

AND

(2) BANK HAPOALIM B.M.

WHEREAS: Lumenis Holdings Inc., on the one hand, and the Bank, on the other hand, are parties to a
Loan Agreement dated April 30, 2001, as amended through the date hereof (“the Holdings Loan
Agreement”);

WHEREAS: the Bank has provided the Borrower with a Short Term Credit Line Letter dated April 24,
2001, as amended through the date hereof (“the Short Term Credit Line”);

WHEREAS: the Borrower, on the one hand, and the Bank, on the other hand, are parties to a Loan
Agreement dated March 26, 2002, as amended through the date hereof (“the Lumenis Ltd. Loan
Agreement”); and

WHEREAS: the Borrower has requested that the Holdings Loan Agreement, the Short Term Credit Line,
the Lumenis Ltd. Loan Agreement and all other credit arrangements and Contracts between the
Borrower or any of its Subsidiaries and the Bank (“the Prior Loan Agreements”) be cancelled (other
than those described in Clause 2.1.2(e)(i) to (iv) below) and replaced with a new facility on the
terms and conditions hereof;

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

	1.	 	INTERPRETATION
	 
	1.1.	 	Definitions
	 
	 	 	In this Restructuring Agreement (“this Agreement”), the following
terms have the meanings given to them in this clause 1.1:

	1.1.1.	 	“Accounting Period” means any period of one Quarter or a Fiscal Year for which Accounts are
prepared;
	 
	1.1.2.	 	“Account” means account number 11145 in branch 700 in the name of the Borrower at the Bank.

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	1.1.3	 	“Financial Statements” means, at any time and from time to time:

	 	(a)	 	the audited annual consolidated financial statements of the Borrower
(including: (i) a profit and loss statement which reflects the operating profit or
loss; (ii) cash flow statement; and (iii) a balance sheet reflecting current
assets, current liabilities and fixed assets);
	 
	 	(b)	 	the reviewed consolidated quarterly financial statements of the
Borrower (including: (i) a profit and loss statement which reflects the operating
profit or loss; (ii) cash flow statement; and (iii) a balance sheet reflecting
current assets, current liabilities and fixed assets).

	1.1.4.	 	“Acquisition” means the acquisition, directly or indirectly (whether by one transaction or
by a series of related transactions) of any interest whatsoever in the share capital (or
equivalent) or the business or undertaking or assets constituting a separate business or
undertaking of any company or other person;
	 
	1.1.5	 	“Closing Date” means the 5th (fifth) Business Day (or such other Business Day as
the Bank and the Borrower may agree) following the date on which the Bank is satisfied that
all the conditions precedent referred to in clause 3 below have been fulfilled in a form and
substance reasonably satisfactory to the Bank;
	 
	1.1.6.	 	“Auditors” means BDO Ziv Haft, or another leading firm of independent Israeli auditors;
	 
	1.1.7.	 	“Bank Hapoalim” or “Bank” means Bank Hapoalim B.M.;
	 
	1.1.8.	 	Not Used;
	 
	1.1.9.	 	“Borrower” means Lumenis Ltd.;
	 
	1.1.10.	 	“Business” means the business of developing, marketing and selling medical and aesthetic
lasers and light-based technology services;
	 
	1.1.11.	 	“Business Day” means any day on which banks in Tel Aviv, London, and the country in which
the currency of the Loan constitutes legal tender, are open for business; for the purpose of
any commissions, expenses or fees required to be paid hereunder by the Borrower, the term
‘Business Day’ means: a day on which the Bank of Israel publishes representative rates of
exchange.
	 
	1.1.12.	 	“Business Targets Summary” means the summary of the business targets of the Borrower and
its consolidated Subsidiaries, taken as a whole, a copy of which will be agreed before the
Closing Date and attached as Schedule 1.1.12 hereto;

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	1.1.13.	 	“Consent” means any approval, consent, permit, ratification, waiver, licence, exemption,
filing, registration or authorisation (including any Governmental Authorisation);

	1.1.14.	 	“Contracts” means any agreement, contract, obligation, promise or undertaking, whether oral
or written, that is legally binding;

	1.1.15.	 	“Currency Hedging Transaction” includes any foreign exchange transaction, currency swap
transaction, cross currency rate swap transaction, currency option, collar transaction or
other similar transaction (including any option with respect thereto and any combination in
respect thereof);

	1.1.16.	 	Not Used.;

	1.1.17.	 	“Default” means any Event of Default or any event which with the giving of notice or lapse
of time, or the making of any determination hereunder, or the satisfaction of any other
condition (or any combination thereof) would constitute an Event of Default;

	1.1.18.	 	“Distribution” means the declaration or payment of any dividend or distribution on or in
respect of any shares of any class of capital stock of the Borrower; the purchase, redemption
or other retirement, or the giving of any financing for the purchase, redemption or
retirement, of any shares of any class of capital stock (including redeemable shares) or of
convertible securities of the Borrower, directly or indirectly through a Subsidiary or
otherwise; the return of equity capital by any person to its shareholders; or any other
distribution (within the meaning of such term as defined in Section 1 of the Companies Law,
1999) on or in respect of any shares of any class of capital stock of the Borrower; or any
undertaking to do any of the aforegoing;

	1.1.19.	 	“Encumbrance” means:

	 	(a)	 	any mortgage, charge (whether fixed or floating), pledge, lien,
assignment, security interest, title retention or other encumbrance of any kind
securing, or any right conferring a priority of payment in respect of, any
obligation of any person;
	 
	 	(b)	 	any other type of security arrangement having similar effect;

	1.1.20.	 	“Event of Default” means any of the events or circumstances described in clauses 14.2-14.15
(inclusive) below;
	 
	1.1.21	 	“Existing Securities” means:

	 	(a)	 	the
securities granted
to the Bank in
connection with the
Prior

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	 	 	 	Loan Agreements a
list of which are
attached hereto as
Schedule 1.1.21;
	 
	 	(b)	 	the
Existing Debenture;
	 
	 	(c)	 	any
existing pledges on
the shares of the
Borrower’s Material
Subsidiaries, which
are held by the
Borrower;
	 
	 	(d)	 	any
existing specific
charge on the
Marks, Patents and
Copyrights;
	 
	 	(e)	 	each mortgage, pledge or assignment by way of charge to be
executed by any member of the Group in favour of the Bank in accordance with the
provisions of the Existing Debenture;
	 
	 	(f)	 	all acknowledgments and consents required to be delivered
pursuant to the documents referred to above,

in each case, subject to certain amendmentsto be agreed prior to the
Closing Date and included in Schedule 1.1.21A to be attached hereto.

	1.1.22	 	“Existing Debenture” means the debenture between the Borrower and the Bank effectuated
pursuant to the Prior Loan Agreements, a copy of which is attached hereto as Schedule 1.1.22,
which notwithstanding anything stated herein shall remain in effect until any and all sums due
from the Borrower to the Bank (including pursuant to letters of credits or guarantees) from
time to time are fully repaid subject to certain amendments to be agreed prior to the Closing
Date and included in Schedule 1.1.22A to be attached hereto
	 
	1.1.23.	 	“Final Maturity Date” means December 31, 2013;
	 
	1.1.24.	 	“Finance Documents” means this Agreement, the Existing Debenture, other Security Documents
and the guarantees referred to in section 2.1.2(e)(iv) and (v) below.

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	1.1.25.	 	“Financial Indebtedness” means any Indebtedness in respect of or pursuant to:

	 	(a)	 	moneys borrowed;
	 
	 	(b)	 	any amount raised under any credit facility;
	 
	 	(c)	 	any amount raised pursuant to any note, purchase facility or the
issue of bonds, notes, debentures, bills, loan stock or any similar instrument
(including any debt security convertible, but not at the relevant time
converted, into share capital) having the commercial effect of borrowing
(including, moneys raised by the sale of invoices, bills or notes or other
financial assets on terms that recourse may be had to the vendor in the event of
non-payment of such invoices, bills or financial assets when due);
	 
	 	(d)	 	the amount of any liability in respect of any lease contract
(including any sale and lease back, sale and repurchase and similar agreements
and instruments) which would, in accordance with GAAP, be treated as a financial
or capital lease;
	 
	 	(e)	 	receivables sold or discounted;
	 
	 	(f)	 	any amount raised under any other transaction having the
commercial effect of borrowing (other than transactions specifically referred to
in the other paragraphs of this clause 1.1.25);
	 
	 	(g)	 	the acquisition cost of assets or services to the extent payable
on deferred payment terms which are outside the ordinary course of business or
where the deferred payment terms are primarily a method of raising finance or
financing the acquisition of the asset or service;
	 
	 	(h)	 	moneys received in consideration for the supply of goods and/or
services to the extent received before the due date for such supply where the
receipt as aforesaid is arranged primarily as a method of raising finance;
	 
	 	(i)	 	any Hedging Transaction or any other derivative transaction
entered into in connection with protection against or benefit from fluctuation
in any rate or price;
	 
	 	(j)	 	any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, standby or documentary letter of credit or any other instrument
issued by a bank or financial institution;
	 
	 	(k)	 	the amount of any liability in respect of any guarantee,
indemnity or other legally binding instrument to assure payment

Page 7 of 59

 

of, or against loss in respect of non-payment of, any of the items referred to
in paragraphs (a)–(j) above;

	1.1.26.	 	“Fiscal Year” means a calendar year;
	 
	1.1.27.	 	NOT USED
	 
	1.1.28.	 	“GAAP” means the applicable generally accepted accounting principles, in force from time to
time;
	 
	1.1.29.	 	“Governmental Authorisation” means any approval, exemption, notification, licence, permit,
waiver, other authorisation issued, granted, given or otherwise made available by or under the
authority of any Governmental Body or pursuant to any law;
	 
	1.1.30.	 	“Governmental Body” means any Israeli or foreign governmental, national, state, local,
municipal or other government, governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, ministry, department, official or entity and any
court or other tribunal), or body exercising or entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or power of any
nature;
	 
	1.1.31.	 	“Group” means the Borrower and the Material Subsidiaries;
	 
	1.1.32.	 	“Hedging Transaction” means any Interest Rate Hedging Transaction and any Currency Hedging
Transaction;
	 
	1.1.33.	 	“Indebtedness” means any obligation (whether incurred as principal or surety or guarantor)
for the payment or repayment of money, whether actual or contingent;
	 
	1.1.34.	 	“Insurance Policies” means all insurance policies to be maintained or effected, from time
to time, by the Group in accordance with this Agreement;
	 
	1.1.35.	 	“Intellectual Property Assets” means all such rights set forth in paragraphs (a)–(d) below
and all know-how, trade secrets, confidential information, customer lists, software, technical
information, data, process technology, plans, drawings and blue prints (collectively, “Trade
Secrets”); owned, used or licensed by the Group as licensee or licensor which are, in each
case, used in or are necessary for the conduct of the Business as now conducted and as
approved by their respective Boards of Directors to be conducted in accordance with the
Business Targets Summary. Schedule 1.1.35 hereto (in the form to be provided by the Borrower
prior to the Closing Date) sets forth a list of the Intellectual Property Assets, other than
Trade Secrets and unregistered Copyrights:

	 	(a)	 	trade names, registered and unregistered trademarks, service
marks and applications (collectively, “Marks”);

Page 8 of 59

 

	 	(b)	 	all patents, patent applications and inventions and discoveries
that may be patentable (collectively, “Patents”);
	 
	 	(c)	 	all copyrights, registered and unregistered in both published
works and unpublished works (collectively, “Copyrights”); and
	 
	 	(d)	 	all domain names;

	1.1.36.	 	“Interest” means the interest due with respect to the Loan in accordance with this
Agreement.
	 
	1.1.37.	 	“Interest Determination Date” in relation to any Interest Period, means the Business Day
falling 2 (two) Business Days prior to the first day of such Interest Period;
	 
	1.1.38.	 	“Interest Payment Date” means the last Business Day of each Quarter;
	 
	1.1.39.	 	“Interest Periods” means consecutive periods of 1 (one) Quarter; provided that,
notwithstanding the aforegoing:

	 	(a)	 	if any Interest Period would otherwise end on a day which is not
a Business Day, such Interest Period shall end on the next day which is a
Business Day, unless it would thereby be made in the next calendar month, in
which case such Interest Period shall end on the immediately preceding Business
Day;
	 
	 	(b)	 	each Interest Period (other than the first Interest Period) shall
commence on the expiry of the Interest Period preceding such Interest Period
and, for the removal of doubt, shall, subject to (a) above, end on the last day
of the Quarter following such preceding Interest Period;
	 
	 	(c)	 	assuming the Closing shall have occurred, the first Interest
Period shall commence on the date of this Agreement and shall end on the last
day of the Quarter in which the Closing Date occurs;
	 
	 	(d)	 	no Interest Period may extend later than the Final Maturity Date;
and
	 
	 	(e)	 	with respect to Unpaid Sums, “Interest Period” shall bear the
meaning assigned to such term in clause 15.1 below;

	1.1.40.	 	“Interest Rate Hedging Transaction” includes any rate swap transaction, basis swap, forward
rate transaction, commodity swap, commodity option, equity or equity index swap, equity or
equity index option, interest rate option, knock-out transaction, cap transaction, floor
transaction, collar transaction or other similar transaction (including any option with
respect thereto and any combination in respect thereof);

Page 9 of 59

 

	1.1.41.	 	“Investment” means an investment of the Investors in the capital stock of the Borrower all
as further detailed in clause 3.10 below;

	1.1.42.	 	“Investors” means Ofer (Ships Holding) Ltd. (or any of its Subsidiaries that acquires the shares in the Borrower, as notified to the Bank prior to the Closing Date) and LM Partners
L.P.;

	1.1.43.	 	“LIBOR” means, with respect to each Interest Period, the rate of interest determined by the
Bank as being the highest rate rounded upward, if necessary, to the nearest whole multiple of
1/8% (one-eighth of a percent) for Euro–Dollar deposits for a period of
3 (three) months (or if such Interest Period is less than a Quarter, then for the number of
weeks of such Interest Period, rounded-up for part of a week), offered to it in the London
Interbank market, as quoted at or about 11:00 a.m. (London time) on the Interest Determination
Date for such Interest Period and published by the Reuters Information Service (“Reuters”)
or, if on any relevant date, such LIBOR rate is not published by Reuters, for any reason, the
LIBOR rate will be fixed for a period of 3 (three) months or, as the case may be, that number
of weeks comprising such Interest Period, rounded-up, if necessary, to the nearest whole
multiple of 1/8% (one-eighth of a percent) in accordance with such other
publications as will, in the opinion of the Bank, constitute a suitable alternative for the
publication by Reuters. Notwithstanding the foregoing, where the Bank determines that on any
relevant date for determining the LIBOR rate it is unable to obtain deposits in the London
interbank market as stated above, or where, in the opinion of the Bank, no suitable
alternative exists for the publication by Reuters, the LIBOR rate will, for the purpose of
determining the interest rate, be the rate to be determined from time to time by the Bank as
being the interest rate at which the Bank would have been able to obtain in the London
interbank market interbank deposits in the currency of the Loan for a period of 3 (three)
months or, as the case may be, that number of weeks comprising such Interest Period;

	1.1.44.	 	“Loan” means, as of the Closing Date, the loan in the aggregate principal amount
(excluding, for the removal of doubt, accrued Interest and any other amounts owing under the
Finance Documents) of the difference between the Prior Outstanding Debt on the Closing Date
and the sum of (i) the First Repayment Amount (as defined in Section 2.1.2(b)); (ii) the First
Write Off (as defined in Section 2.1.2(c)); and (iii) the amounts of the guarantees referred
to in section 2.1.2(e)(iv), (v) and (vi) below, and after the Closing Date, such amount minus
any amounts of the Loan previously repaid by the Borrower or forgiven by the Bank;

	1.1.45.	 	“Material Adverse Effect” means with respect to the Group taken as a whole, any
change, event, fact, violation, inaccuracy, circumstance or effect that occurs, arises or is
discovered or made known to the Bank (whether or not it was known to the Borrower at signing
hereof) during the period commencing on the date hereof (each, an “Effect”) that, individually
or taken together with all other

Page 10 of 59

 

Effects, has an extreme adverse or other exceptional impact on the condition (financial
or otherwise), properties, assets (including intangible assets, but other than goodwill
within the meaning of GAAP), liabilities, business, prospects, capitalization,
operations or results of operations of the Group, taken as a whole.

	1.1.47.	 	“Material Subsidiaries” means:

Lumenis Inc.

Laser Industries Ltd.;

Lumenis Japan Co. Ltd.;

Lumenis (HK) Ltd.;

Lumenis France SARL;

Lumenis Italy;

Lumenis GmbH; and

Lumenis (UK) Ltd.

	 
	 	 	and such additional company controlled by the Borrower with
revenues of more than $10 million per year, which shall be added
to this definition pursuant to the following procedures:

	 	(a)	 	together with the provision of the annual Financial
Statements of the Borrower to the Bank in accordance with Section
13.1 hereof, the Borrower shall provide the Bank with an updated
list of all its current subsidiaries that according to such
Financial Statements have revenues of more than $10 million for
such year;
	 
	 	(b)	 	the Bank shall review such list and notify the
Borrower which subsidiaries will be included to the definition of
Material Subsidiaries (the “Notification”);
	 
	 	(c)	 	within thirty (30) days of the Notification the
Borrower and the Material Subsidiaries added to the definition of
Material Subsidiaries shall be required to be fully compliant
with all the applicable provisions of this Agreement relating
thereto.

	1.1.47A. “New Indebtedness” means the Loan and the guarantees referred to in Section 2.1.2(e)(iv),
(v) and (vi) below.
	 
	1.1.48	 	“New Securities” means the following securities which the Borrower is required to use
reasonable commercial efforts to perfect by no later than March 31, 2007:

	 	(a)	 	a
debenture of Laser
Industries Ltd. in
the form to be agreed
prior to the

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	 	 	 	Closing Date and
included as
Schedule 1.1.48(a)
hereof;
	 
	 	(b)	 	a
guarantee of Laser
Industries Ltd. in
the form to be agreed
prior to the Closing
Date and included as
Schedule 1.1.48(b)
hereof;
	 
	 	(c)	 	pledge
on the shares of
Laser Industries Ltd.
held by the Borrower
and shares of Lumenis
(Germany), Lumenis
(France), Lumenis
(UK) and Lumenis
(HK) held by Laser
Industries Ltd.
other than such
pledges that exist
prior to the date
hereof and are
included in the
Existing Securities
including the pledge
agreements with
respect thereto in
the form to be agreed
prior to the Closing
Date and included as

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	 	 	 	Schedule 1.1.48(c)
hereof;
	 
	 	(d)	 	pledge
on the assets of
Lumenis (Germany),
Lumenis (France),
Lumenis (UK) and
Lumenis (HK) in the
form to be agreed
prior to the Closing
Date and included as
Schedule 1.1.48(d)
hereof, other than
such pledges that
exist prior to the
date hereof and are
included in the
Existing Securities;
	 
	 	(e)	 	guarantees from the
Lumenis (Germany),
Lumenis (France),
Lumenis (UK) and
Lumenis (HK) in the
form to be agreed
prior to the Closing
Date and included as
Schedule 1.1.48(e)
hereof; other than
those guarantees
granted by the
Borrower’s Material

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	 	 	 	Subsidiaries prior
to the date hereof
and are included in
the Existing
Securities;
	 
	 	(f)	 	specific
charge on the Marks,
Patents and
Copyrights in the
form to be agreed
prior to the Closing
Date and included as
Schedule 1.1.48(f)
hereof, other than
such charges that
exist prior to the
date hereof and are
included in the
Existing Securities;
and
	 
	 	(g)	 	all
acknowledgments and
consents required to
be delivered pursuant
to the documents
referred to above.

	1.1.49.	 	“Order” means any award, decision, injunction, judgment, order, ruling, subpoena or verdict
entered, issued, made or rendered by any court, administrative agency or other Governmental
Body or by any arbitrator;
	 
	1.1.50.	 	“Organisational Documents” means the certificate of incorporation, Memorandum of
Association, Articles of Association or other documents of incorporation of any person being a
corporation;
	 
	1.1.51.	 	“Paid-in Equity” means the aggregate amount paid-up in cash in respect of share capital of
the Borrower including the redeemable shares issued to the Investors;

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	1.1.52.	 	“Permitted Encumbrances” means any Encumbrance which is

	 	(a)	 	constituted or evidenced by the Security Documents;
	 
	 	(b)	 	a right of set-off arising by operation of law or in the ordinary
course of business;
	 
	 	(c)	 	a lien arising by operation of law;
	 
	 	(d)	 	arising out of retention of title provisions in a supplier’s
standard conditions of supply in respect of goods acquired by the Borrower in the
ordinary course of business;
	 
	 	(e)	 	securing any Permitted Financial Indebtedness of the Borrower
only (other than as provided by the Bank), provided that such
Encumbrance does not entitle the beneficiaries thereof to apply for the
liquidation of the Borrower or the appointment of a receiver of the Borrower or
its assets prior to the realisation by the Bank of the Encumbrances granted under
the Security Documents.
	 
	 	(f)	 	of the type referred to in section 169(d) of the Companies
Ordinance [New Version] (1983), where the Financial Indebtedness being secured is
Permitted Financial Indebtedness.
	 
	 	(g)	 	securing any Permitted Financial Indebtedness referred to in
paragraph (e) of the definition of Permitted Financial Indebtedness.

	1.1.53.	 	“Permitted Financial Indebtedness” means:

	 	(a)	 	Financial Indebtedness arising pursuant to this Agreement;
	 
	 	(b)	 	Financial Indebtedness incurred by the Borrower only which is
subordinate to the Financial Indebtedness arising hereunder in the event of the
insolvency or liquidation of the Borrower;
	 
	 	(c)	 	Financial Indebtedness incurred by the Borrower only pursuant to
Section 13.4(b);
	 
	 	(d)	 	Financial Indebtedness incurred by the Borrower only which is
raised in order to finance capital expenditure which is permitted hereunder. ;
and
	 
	 	(e)	 	Financial Indebtedness incurred by any member of the Group for
its own working capital purposes in the aggregate not exceeding $2 million.

	1.1.54.	 	“Prior Outstanding Debt” means the outstanding debt of the Borrower and its Subsidiaries to
the Bank in aggregate as of the

Page 15 of 59

 

Closing Date (including principal, interest, guarantees and all other amounts due)
under all of the Prior Loan Agreements as further set forth in clause 2 below, which
shall not exceed 220 million US Dollars;

	1.1.55.	 	“Proceeding” means any action, arbitration, audit, hearing, investigation, litigation or
suit (whether civil, criminal, administrative, investigative or informal) commenced, brought,
conducted or heard by or before or otherwise involving, any Governmental Body, arbitrator or
mediator;

	1.1.56.	 	“Quarter Day” means 31 March, 30 June, 30 September and 31 December in any year and
“Quarter Day” means any of them;

	1.1.57.	 	“Quarters” means each period commencing on the day after a Quarter Day and ending on the
next following Quarter Day;

	1.1.58.	 	“Security Documents” means any and all documents governing the Existing Securities and the
New Securities.

	1.1.59.	 	“Tax on Overall Net Income” means an income tax or capital gains tax including income tax
on interest;

	1.1.60.	 	“Taxes” means all income and other taxes, including, taxes or charges on capital gains,
profits, value-added taxes and all other taxes of whatsoever nature and levies, imposts,
duties, charges, deductions and withholdings in the nature of or on account of tax, together
with interest thereon and penalties and fees with respect thereto, if any, and any payments
made on or in respect thereof and “Tax” and “Taxation” shall be construed accordingly;

	1.1.61.	 	“Total Outstandings” means, at any time, the sum in Dollars of the Loan at such time;
	 
	1.1.62.	 	“Unpaid Sum” shall bear the meaning assigned to such term in clause 15.1 below;
	 
	1.2.	 	Clause Headings/Table of Contents
	 
	 	 	Clause headings and the table of contents are inserted for
convenience of reference only and shall be ignored in the
interpretation of this Agreement.
	 
	1.3.	 	Interpretation
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	1.3.1.	 	references to clauses and Schedules are to be construed as references to the clauses of, and
Schedules to, this Agreement and references to this Agreement include its Schedules;

Page 16 of 59

 

	1.3.2.	 	references to (or to any specified provision of) this Agreement or any other document shall
be construed as references to this Agreement, that provision or that document as in force for
the time being and as amended in accordance with the terms thereof, or, as the case may be,
with the agreement of the relevant parties;
	 
	1.3.3.	 	words importing the plural shall include the singular and vice versa;
	 
	1.3.4.	 	“Affiliate” means, with respect to any person, mean any company which controls, is
controlled by, or under common control with, such person; “control” and “holding” shall bear
the meanings assigned to such term in Section 1 of the Securities Law, 1968;
	 
	1.3.5.	 	“Bank” shall be construed so as to include any subsequent permitted successors, transferees
and permitted assigns of the Bank;
	 
	1.3.6.	 	“including” and “includes” means including, without limiting the generality of any
description preceding such terms;
	 
	1.3.7.	 	a “law” includes any statute, law, regulation, treaty, rule, official directive of any
governmental, or regulatory body, agency, department or other authority having the force of
law;
	 
	1.3.8.	 	a “person” shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership (whether or not
having separate legal personality) or two or more of the aforegoing;
	 
	1.3.9.	 	“Subsidiary” of a person means any company which is directly or indirectly controlled by
such person;
	 
	1.3.10	 	“US $”, “United States Dollars”, “US Dollars” and “Dollars” denote the lawful currency of
the United States of America; and “NIS” and “New Israel Sheqels” denote the lawful currency of
Israel;
	 
	1.3.11.	 	“VAT” shall be construed as a reference to Israeli value added tax, including any similar
Israeli Tax which may be imposed in place thereof from time to time;
	 
	1.3.12.	 	the “winding-up”, “dissolution” or “administration” of a company or corporation shall be
construed so as to include any equivalent or analogous proceedings under the law of the
jurisdiction in which such company or corporation is incorporated or any jurisdiction in which
such company or corporation carries on business, including the seeking of liquidation,
winding-up, reorganisation, dissolution,

Page 17 of 59

 

	 	 	administration, arrangement, adjustment, protection or relief of debtors and
protection against creditors (hakpa’at halichim);
	 
	1.3.13.	 	all accounting expressions which are not otherwise defined herein shall be construed in
accordance with GAAP; and
	 
	1.3.14	 	any reference in this Agreement to a law shall be construed as a reference to such law as
the same may have been, or may from time to time be, amended or re-enacted.

	2.	 	RESTRUCTURING
	 
	2.1	 	Restructuring of Debt

	 	2.1.1	 	The Parties confirm that the following sums constitute the Prior Outstanding
Debt as of the Closing Date (including principal and interest) pursuant to all of the
Prior Loan Agreements and all ancillary documents related thereto:

	 	 	 
	Agreement	 	Prior Outstanding Debt
	Holdings Loan Agreement
	 	$89,254,000
	Lumenis Ltd. Loan Agreement
	 	$68,047,000
	Short Term Credit Line
	 	$47,309,000**
	Guarantee No. 11145/2 issued to Mr.
Avner Raz
	 	$733,334
	Standby Letter of Credit No.
700-02-000037/8 issued to UPS Supply
Chain Solutions Inc.
	 	$1,000,000
	Guarantee No. 11145/03 to Netanya
Magistrate Court
	 	$6,000
	Guarantee No. 11145/05 to Tel
Aviv-Jaffo District Court
	 	$3,000
	Guarantee in respect of Yokneam
facility lease
	 	NIS 100,000
	Total
	 	US $206,375,228, as of September 15, 2006 and as shall be amended and updated to reflect accrued interest and any additional loans provided by the Bank under the Short Term Credit Line (if any)**, up to a maximum of $220 million as of the Closing Date.

Page 18 of 59

 

 

			
	**	 	If requested by the Borrower, the Bank will grant additional loans
under the Short Term Credit Line if (i) the Bank is satisfied that the
additional loans are required by the Borrower to continue conducting its
business and meeting expenses in the ordinary course and consistent with past
practice, and (ii) the Investors agree to such additional loans being granted
and provided that in no event will the Prior Outstanding Debt at the Closing
Date exceed $220 million.

	2.1.2	 	Upon the Closing Date, the following actions shall occur or be deemed to have
occurred:

	 	(a)	 	the Bank shall have advanced
the Borrower the amount of the Loan (in
accordance with the terms hereof);
	 
	 	(b)	 	the Borrower shall pay the Bank a sum of $40 million
Dollars (the “First Repayment Amount”) deposited in the Account in
repayment of the Prior Outstanding Debt;
	 
	 	(c)	 	the Bank shall forgive $25 million Dollars of the
Prior Outstanding Debt (the “First Write Off”);
	 
	 	(d)	 	the Borrower shall use the Loan to prepay all of the
amounts outstanding under the Prior Loan Agreements;
	 
	 	(e)	 	all of the Prior Loan Agreements, (whether referred
to in Clause 2.1.1 or not) including the Schedules attached thereto and
all rights thereunder, other than the following:

	 	(i)	 	the Cash Fee – Ltd. Stock Side Letter,
dated November 19, 2003 issued by the Borrower in favour of the
Bank, which shall be restated to incorporate the provisions as set
out in Clause 2.1.4 below;
	 
	 	(ii)	 	the Option Agreements dated April 30,
2001, February 6, 2003 and November 19, 2003, respectively (“the
Option Agreements”) which shall be amended as set out in Clause
2.1.4 below;
	 
	 	(iii)	 	the Existing Securities, which shall be
amended as set out in Clause 3.11 below;
	 
	 	(iv)	 	Guarantee No. 11145/2 issued to Mr. Avner
Raz;
	 
	 	(v)	 	Standby Letter of Credit No.
700-02-000037/8 issued to UPS Supply Chain Solutions Inc.; and
	 
	 	(vi)	 	Guarantee No. 11145/03 to Netanya
Magistrate Court, Guarantee No. 11145/05 to Tel Aviv-Jaffo

Page 19 of 59

 

	 	 	 	District Court and guarantee in respect of Yokneam facility lease.

shall automatically terminate and be of no further force and effect.; and

	 	(f)	 	Following the transactions described in 2.1.2 (a)-(
f), the sole outstanding debt of the Borrower and its Subsidiaries to the
Bank shall be the New Indebtedness.

	2.1.3	 	The Cash Fee – Ltd. Stock Side Letter, dated November 19, 2003 issued by the
Borrower in favour of the Bank shall be amended at Closing to the effect that the cash
fee set out therein shall only be payable with respect to the “Fixed Price Average” (as
defined therein) category of $7.00 (seven US dollars) and the Bank will receive only the
amount payable in respect of such category, if applicable.
	 
	2.1.4	 	The Option Agreements shall be replaced with the form of agreement set forth at
Schedule 2.1.4. at Closing and shall provide as follows:

	 	(a)	 	the exercise period for the 1,136,300
options granted under the Option Agreement dated April 30, 2001, as
amended on February 6, 2003, and 275,000 options granted under the
Option Agreement dated February 6, 2003 shall all be extended to the
5th anniversary of the Closing;
	 
	 	(b)	 	the exercise price for the 7,824,000
options granted under the Option Agreement dated November 19, 2003
shall be reduced to $1.17 (one US Dollar and seventeen cents);
	 
	 	(c)	 	176,000 additional options shall be
granted on identical terms to those granted under the Option
Agreement dated November 19, 2003 which shall have an exercise
price of $1.17 (one US Dollar and seventeen cents) and shall expire
on November 2013, such that the total number of options held by the
Bank on such terms (assuming no prior exercise of any such options)
shall be 8,000,000 (eight million).
	 
	 	(d)	 	any rights of the Bank under any previous
option or other agreement to prevent the Borrower from issuing shares or other securities will be terminated and of no further
effect; and
	 
	 	(e)	 	the Bank will be granted the right to
exercise the options described in this section 2.1.4 on a cash-less

Page 20 of 59

 

	 	 	 	basis, and registration rights on the same terms as provided to
the Investors, by executing the registration rights agreement in
the form attached as Schedule 2.1.4(e) hereto (the “Registration
Rights Agreement”).

	2.2	 	Acknowledgement and Waiver
	 
	2.2.1	 	Each of the Borrower and the Bank affirms that it has thoroughly examined the accounts of
the Borrower and its Subsidiaries in the Bank, including, but not limited to, debit accounts,
loan and credit accounts, and all debt, credit, transfers and all other actions executed
pursuant to the Prior Loan Agreements. Additionally, each of the Borrower and Bank has checked
all credit and/or debit dates on which interest payments under the Prior Loan Agreements were
received and repaid, as well as interest rates, calculations and the dates of notices and
method of debit or credit following such notices. The Bank and the Borrower hereby
acknowledges that the amounts listed in Clause 2.1 above are an accurate representation of the
Borrower and its Subsidiaries’ Prior Outstanding Debt to the Bank.
	 
	 	 	Consequently:

	 	(a)	 	the Borrower waives all current and future claims and
demands against the Bank and its employees with respect to the Prior Loan
Agreements, the Prior Outstanding Debt and the said accounts examined by
the Borrower, or that could have been examined by the Borrower, as
stipulated above. Furthermore, the Borrower hereby acknowledges that the
amount of the Prior Outstanding Debt has been agreed upon with the Bank to
represent the current outstanding debt of the Borrower and its
Subsidiaries, and therefore waives all possible claims with respect to all
business relations with the Bank and services received from the Bank in
relation to such Prior Outstanding Debt. For avoidance of doubt, the
foregoing consent of the Bank to the amount of the Prior Outstanding Debt
shall not be construed as an admission by the Bank of any responsibility,
by it or its employees, for any actions or omissions; and
	 
	 	(b)	 	the Bank waives all current and future claims and
demands against the Borrower, its Subsidiaries and employees thereof with
respect to the Prior Loan Agreements, the Prior Outstanding Debt and the
said accounts examined by the bank, or that could have been examined by
the Bank, as stipulated above. Furthermore, the Bank hereby acknowledges
that the amount of the Prior Outstanding Debt has been agreed upon with
the Borrower to represent the current outstanding debt of the

Page 21 of 59

 

	 	 	 	Borrower and its Subsidiaries, and therefore waives all possible claims
with respect to all business relations with the Borrower and its
Subsidiaries and services provided by the Bank in relation to such Prior
Outstanding Debt. For avoidance of doubt, the foregoing consent of the
Borrower to the amount of the Prior Outstanding Debt shall not be
construed as an admission by the Borrower of any responsibility, by it
for any actions or omissions.

	2.2.2	 	The Borrower hereby acknowledges and declares that notwithstanding the termination of the
Prior Loan Agreements (i) the Cash Fee – Ltd. Stock Side Letters, dated November 19, 2003, as
amended; (ii) the Option Agreements as amended, and (iii) the Existing Securities, as amended
are effective and binding on the Borrower and its Subsidiaries and shall serve as security for
the amounts due under this Agreement.

	3.	 	CONDITIONS PRECEDENT

The consummation of the transactions contemplated by this Restructuring Agreement is subject to
the conditions precedent that the Bank shall have received, by no later than the 5th (fifth)
Business Day prior to December 31, 2006, all of the following documents and matters, in form and
substance satisfactory to the Bank:

	3.1	 	a certified copy of the Memorandum and Articles of Association of the Borrower;
	 
	3.2	 	copies of resolutions of the Board of Directors of the Borrower, approving the execution,
delivery and performance of this Restructuring Agreement and all agreements and acts to be
performed by the Borrower as conditions precedent to, or otherwise in connection with, this
Restructuring Agreement, as well as a resolution of the Board of Directors of the Borrower
authorising a named officer of the Borrower to execute, deliver and perform this Restructuring
Agreement and such other agreements and acts, and to give all notices and take all such other
action required to be given or taken by the Borrower under this Restructuring Agreement or in
connection therewith;
	 
	3.3.	 	Release in the form to be agreed prior to the Closing Date and included in Schedule 3.3 to be
attached hereto duly executed by Lumenis Holdings Inc. confirming the termination of the
Holdings Loan Agreement, acknowledging the Prior Outstanding Debt and instructing the Bank to
repay its debt pursuant to the Holdings Loan Agreement by applying the amounts received under
the transactions hereunder;
	 
	3.4.	 	an opinion of Zellermeyer, Pellossof & Co., Advocates, the Borrower’s external legal counsel,
addressed to the Bank, in the form to be agreed prior to the Closing Date and included in
Schedule 3.4 to be attached hereto;

Page 22 of 59

 

	3.5.	 	all of the Borrower’s representations and warranties in Clause 12 (other then Clause 12.7) of
this Agreement given pursuant to this Restructuring Agreement shall be accurate in all
respects as of the Closing Date, as if made on the Closing Date;
	 
	3.7.	 	each of schedules to the Agreement that are listed in Schedule 3.7, shall have been completed
in form and substance acceptable to the Bank and duly executed as applicable to each of such
schedules;
	 
	3.8	 	Not used
	 
	3.9.	 	a copy of an investment agreement in the form of Schedule 3.9 hereto, by and between the
Borrower and the Investors relating to the Investment Proceeds as defined in Section 3.10
below (the “Investment Agreement”) and confirmation from the Investors that, other than the
occurrence of the Closing date hereunder, all other conditions precedent to the transactions
contemplated thereby have been duly fulfilled or waived;
	 
	3.10.	 	confirmation acceptable to the Bank confirming that the Investors have, on, or immediately
prior to, the Closing Date, invested in the paid-up share capital of the Borrower, an amount
of at least US $120,000,000 (one hundred and twenty million United States Dollars) (“the
Investment Proceeds”),
	 
	3.11.	 	the Existing Securities shall have been amended in order to conform such documents to the
terms of this Agreement and such amendments shall have been duly filed with the Registrar of
Companies;
	 
	3.12.	 	the First Repayment Amount shall have repaid Prior Outstanding Debt;
	 
	3.13	 	a restatement of the Option Agreements by and between the Bank and the Borrower in accordance
with Clause 2.1.4 above;
	 
	3.14	 	Not Used.
	 
	3.15	 	the Registration Rights Agreement executed by the Borrower and the Bank, and
	 
	3.16	 	Written consent of the parties listed on Schedule 3.16 confirming that all the Existing
Securities granted by it pursuant to any Prior Loan Agreement remain in effect and may be used
by the Bank to secure the repayment of the Loan or any additional outstanding debt to the Bank
pursuant to the Finance Documents.
	 
	 	 	In the event that the aforegoing conditions precedent are not all fulfilled by the 5th
(fifth) Business Day prior to December 31, 2006, or

Page 23 of 59

 

in the event that they shall have been fulfilled, but the closing of this
Restructuring Agreement shall not be fully performed in accordance with clause 3 above
by such date, then, except for clause 8 below, this Restructuring Agreement shall no
longer be of any force or effect and the Prior Loan Agreements shall remain unaltered
and in full force and effect. The Bank undertakes that promptly following the
fulfillment to the satisfaction of the Bank of all the conditions precedent referred
to in clause 3 above, the Bank shall confirm to the Borrower in writing that the
conditions precedent have been fulfilled.

	4	 	REPAYMENT
	 
	4.1	 	Repayment of Loan
	 
	4.1.1	 	The Borrower shall repay to the Bank the Loan minus: (i) the Second Repayment Amount; (ii)
the Second Write Off; (iii) the Third Repayment Amount; and (iv) the Third Write Off (all as
defined in Sections 4.1.2 and 4.1.3 below) by way of 16 (sixteen) equal consecutive quarterly
instalments, payable on the last Business Day of each Quarter, the first such instalment to be
paid on December 31, 2009 and the last such instalment to be paid on the Final Maturity Date.
	 
	4.1.2	 	No later than eighteen (18) months after the Closing Date (the “First Post Closing Date”),
the following actions shall occur or be deemed to have occurred:

	 	(a)	 	the Borrower shall pay the Bank a sum of
$20 million Dollars (the “Second Repayment Amount”)
deposited in the Account in repayment of the Loan; and
	 
	 	(b)	 	the Bank shall forgive $12.5 million
Dollars of the Loan (the “Second Write Off”).

	4.1.3	 	No later than twenty four (24) months after the Closing Date (the “Second Post Closing
Date”), the following actions shall occur or be deemed to have occurred:

	 	(a)	 	the Borrower shall pay the Bank a sum of
$20 million Dollars (the “Third Repayment Amount”)
deposited in the Account in repayment of the Loan; and
	 
	 	(b)	 	the Bank shall forgive $12.5 million
Dollars of the Loan (the “Third Write Off”).

	4.2	 	Repayment Schedule

Page 24 of 59

 

	 	 	As required by the (guidelines) of the Examiner of Banks with respect to proper
conduct of bank affairs (“Hora’ot Nihul Bankai Takin”), details of the installments
and dates of repayment of the Loan and of any and all Interest payments will be
contained in a repayment schedule that will be provided to the Borrower by the Bank
shortly after the Closing Date, and such schedule will form an integral part of this
Agreement. Such schedule shall be entirely consistent with the provisions of Clause
4.1 above.
	 
	4.3	 	Payment of all other Sums Due on the Final Maturity Date
	 
	 	 	On the Final Maturity Date, the Borrower additionally shall pay to the
Bank all other sums then outstanding under this Agreement.
	 
	4.4	 	Repayment in Currency of Loan
	 
	 	 	For the removal of doubt, the Loan, as well as all Interest thereon,
shall be repaid in the currency (US Dollars) of the Loan.
	 
	4.5	 	Repayments to Payments Accounts
	 
	 	 	All repayments as aforesaid shall be made by transfer to the Account.
	 
	 	 	The Borrower hereby instructs the Bank to debit the Account with the amounts required
to pay all the payments of the Loan, Interest, expenses, commissions and other
payments that are due from the Borrower as set forth herein.
	 
	4.6	 	No Reborrowing
	 
	 	 	The Borrower shall not be entitled to reborrow any part of the
Loan which is repaid.
	 
	4.7	 	No Commitments
	 
	 	 	For the removal of doubt, the Borrower has no rights to borrow
any amount (other than the Loan), nor to obtain any other form of
credit or Indebtedness from the Bank (whether in respect of Hedging
Transactions, letters of credit or in any other form) under this
Agreement. The foregoing shall not derogate from the Borrower’s right
to request further credit form the Bank; provided that the Borrower
expressly acknowledges that the Bank shall be under NO obligations to
provide any additional credit to the Borrower or the Group.

5 VOLUNTARY PREPAYMENT

	5.1	 	Voluntary Prepayment
	 
	 	 	The Borrower may, in the manner and subject to the terms and
conditions set out in this clause 5 below, if it has given to the Bank

Page 25 of 59

 

	 	 	not less than 10 (ten) Business Days’ advance written notice to such effect, make a
prepayment to the Bank of the Loan on an Interest Payment Date; provided that, the
amount of each such prepayment (principal) shall not be less than US $5,000,000 (five
million United States Dollars) in aggregate.
	 
	5.2	 	Notice of Prepayment
	 
	 	 	Any notice of prepayment given by the Borrower pursuant to clause 5.1
above shall be irrevocable, shall specify the Interest Payment Date
upon which such prepayment is to be made and the amount of such
prepayment and shall oblige the Borrower to make such prepayment on
such date.
	 
	5.3	 	No Other Prepayments
	 
	 	 	The Borrower shall not prepay any part of the Loan except in
accordance with the aforegoing in this clause 5 or clause 6 below.
	 
	5.4	 	No Reborrowing
	 
	 	 	The Borrower shall not be entitled to reborrow any amount repaid or
prepaid on account of the Loan.
	 
	5.5	 	Prepayment Commissions
	 
	 	 	The Borrower shall pay to the Bank on the date of prepayment in
accordance with this clause 5.1 above, (a) with respect to amounts of
$20,000,000 (twenty million United States Dollars) or less, a
commission of 0.25% (zero point two five percent) of the amount
(principal) prepaid; and (b) with respect to amounts of more than
$20,000,000 (twenty million United States Dollars) a commission of
0.125% (zero point one two five percent) of the amount (principal)
prepaid. No other commission or penalty shall be payable on such
prepayment.
	 
	5.6	 	Prepayment to Payments Account
	 
	 	 	All prepayments as aforesaid shall be made by transfer to the Account.
	 
	5.7	 	Prepayments together with Interest and Other Sums Owed
	 
	 	 	All prepayments shall be made together with all accrued Interest on
the amount prepaid and all other sums due in respect of the amount
prepaid.
	 
	5.8	 	Selection of Instalments for Voluntary Prepayment
	 
	 	 	Any prepayment shall be applied pari passu in respect of the repayment
of the Loan based on the repayment schedule set forth in section 4.1.

Page 26 of 59

 

Notwithstanding the above, the provisions of Clause 5.5 shall not apply to any payments set out in
Clause 4.1.2 and 4.1.3 above, provided that any prepayment thereof shall be on an the Interest
Payment Date.

	6	 	MANDATORY PREPAYMENT

	6.1	 	Mandatory Prepayment
	 
	 	 	All the following amounts shall be deposited in the Account
immediately on receipt thereof (such deposit not to be withdrawn) and
shall be applied in mandatory prepayment to the Bank of the Loan on
the first Interest Payment Date after receipt of such amounts by the
Borrower:
	 
	6.1.1	 	all proceeds from time to time received under the Insurance Policies (other than under
Insurance Policies in respect of liability of the Borrower and Material Subsidiaries to third
parties or of liability of the Borrower and Material Subsidiaries for damage to property of
third parties) in excess of $3,000,000 per event and an aggregate of $5,000,000 , where, as a
result of the insured event for which the proceeds are being paid, a significant portion of
the Borrower and Material Subsidiary’s facilities cease to operate.
	 
	6.1.2	 	Where the Borrower has disposed of an asset of the Borrower (or a Material Subsidiary has
disposed of assets of such Material Subsidiary and distributed proceeds to the Borrower) and
the proceeds of such disposal exceed at least $10 million (the “Disposal Amount’), the
Borrower shall prepay an amount equal the Proportionate Amount. The Proportionate Amount shall
be that percentage of the Loan equal to: the higher of (i) the percentage reduction in the
Borrower’s EBITDA (as defined in Schedule 13.25) caused by the disposal, as calculated by the
Auditors, and (ii) the percentage reduction in the Borrower’s sales caused by the disposal, as
calculated by the Auditors. The difference between the Disposal Amount and the Proportionate
Amount shall be referred to as the “Remaining Amount”.
	 
	6.2	 	No Reborrowing of Mandatory Prepayment
	 
	 	 	The Borrower shall not be entitled to reborrow any amount mandatorily
prepaid in accordance with this clause 6 above.
	 
	6.3	 	Account of Mandatory Prepayment
	 
	 	 	All mandatory prepayments as aforesaid shall be made by transfer
thereof to the Account.

Page 27 of 59

 

	6.4	 	Mandatory Prepayment together with Interest and Other Sums Owed
	 
	 	 	Any mandatory prepayment shall be made together with all accrued Interest on the
amount prepaid and all other sums due in respect of the amount prepaid.
	 
	6.5	 	Schedule for Mandatory Prepayment
	 
	 	 	Any prepayment shall be applied to the repayment instalments in
respect of the Loan in reverse order (that is, shall be deemed first
to constitute the last repayment instalment, then the second last, and
so on and so forth).

	7	 	INTEREST

	7.1	 	Interest Rate
	 
	 	 	The rate of Interest applicable to the Loan in respect of each
Interest Period shall be the sum of: (a) the rate per annum determined
by the Bank to be LIBOR on the Interest Determination Date for such
Interest Period; and (b) 1.5% (one point five percent) per annum.
Notwithstanding the above, no Interest shall accrue or be payable with
respect to the amount of the Second Write Off or the Third Write Off.
	 
	7.2	 	Accrual of Interest
	 
	 	 	Interest as aforesaid in clause 7.1 above in respect of the Loan
shall accrue from day to day and shall be calculated on the basis of
the actual number of days elapsed and a 360 (three hundred and sixty)
day year.
	 
	7.3	 	Payment of Interest
	 
	 	 	All Interest accrued as aforesaid in clause 7.2 above on the Loan
shall be paid on each Interest Payment Date and on the Final Maturity
Date. The Borrower shall pay to the Bank all Interest payable as
aforesaid into the Account.

	8	 	COMMISSIONS, FEES AND EXPENSES

	8.1	 	Legal and Other Costs
	 
	 	 	The Borrower shall pay to the Bank on demand:
	 
	8.1.1	 	all external costs and expenses (including legal fees for external counsel and out-of-pocket
expenses) incurred by the Bank in connection with: (i) the performance of all legal due
diligence inquiries as the Bank has required or shall require with respect to the transactions
in connection herewith; (ii) the negotiation, preparation and execution of this Agreement and

Page 28 of 59

 

	 	 	the Security Documents and the completion of the transactions herein
contemplated provided that such costs and expenses shall be $50,000 plus VAT.
	 
	8.1.2	 	all expenses (including legal fees and out-of-pocket expenses) incurred by the Bank in
contemplation of, or otherwise in connection with, the enforcement of, or preservation of any
rights under, this Agreement or otherwise in respect of the moneys owing under this Agreement,
together with interest at the rate referred to in clause 15 below from the date on which the
payment of such expenses was demanded by the Bank until the date of payment (after as well as
before judgment).
	 
	8.2	 	Duties and Taxes
	 
	 	 	The Borrower shall pay all documentary, registration or other
like duties or Taxes (including any such duties or Taxes payable by
the Bank) imposed on or in connection with this Agreement, the Loan
and any of the Security Documents.
	 
	8.3	 	Not Used
	 
	8.4	 	Currency for Payment
	 
	 	 	All sums payable by the Borrower under this clause 8 shall be
payable in the currency in which such sums were incurred by the Bank.
	 
	8.5	 	VAT
	 
	 	 	All fees and expenses referred to in this clause 8 are exclusive
of any VAT or any other Taxes which might be charged in connection
with such fees and expenses. If any VAT or other such Tax is so
chargeable, it shall be paid by the Borrower at the same time as it
pays the relevant fees and expenses.

	9	 	  TAXES

	9.1	 	Taxes
	 
	 	 	All payments to be made by the Borrower to the Bank shall be made
free and clear of and without deduction for or on account of Tax,
unless the Borrower is required by law to make such payment subject to
the deduction or withholding of Tax, in which case (save where such
deduction or withholding is in respect of Tax on Overall Net Income of
the Bank and the Borrower shall have delivered to the Bank a receipt
as referred to in clause 9.3 below, simultaneously with the making of
the payment from which such Tax deduction has been made) the sum
payable by the Borrower in respect of which such deduction or
withholding is required to be made shall be increased, to the extent
necessary, to ensure that after the making of the required deduction
or withholding, the Bank receives and retains

Page 29 of 59

 

	 	 	(free from any liability in respect of any such deduction or withholding), a net sum
equal to the sum which it would have received and so retained had no such deduction or
withholding been made or required to be made.
	 
	9.2	 	Notification of Taxes
	 
	 	 	If, at any time, the Borrower is required by law to make any deduction
or withholding from any sum payable by it hereunder, the Borrower
shall, as soon as reasonably practicable, notify the Bank.
	 
	9.3	 	Payment and Submission of Receipt
	 
	 	 	If the Borrower makes any payment hereunder in respect of which it is
required to make any deduction or withholding, it shall pay the full
amount required to be deducted or withheld to the relevant taxation or
other authority within the time allowed for such payment under
applicable law and shall deliver to the Bank, as soon as reasonably
practicable after it has made such payment to the applicable
authority, an original receipt (or a certified copy thereof) issued by
such authority evidencing the payment to such authority of all amounts
so required to be deducted or withheld in respect of such payment.
	 
	9.4	 	Tax Saving
	 
	9.4.1	 	In the event that following the imposition of any Tax on any payment by the Borrower in
consequence of which the Borrower is required, under clause 9.1, to pay any additional amount
in respect thereof, the Bank shall, in its sole opinion and based on its own interpretation of
any relevant laws or regulations (but acting in good faith), receive or be granted a repayment
of Tax, or a credit against, or remission for, or deduction from, or in respect of, any Tax
payable by it (any of the aforegoing, to the extent so reasonably identifiable and
quantifiable, being referred to as “a saving”), the Bank shall, to the extent that it can do
so without prejudice to the retention of the relevant saving and subject to the Borrower’s
obligation to repay the amount to the Bank, if the relevant saving is subsequently disallowed
or cancelled (which repayment shall be made promptly on receipt of notice by the Borrower from
such person of such disallowance or cancellation), reimburse the Borrower promptly after
receipt of such saving by the Bank with such amount equal to the lower of: (i) the additional
amount paid by the Borrower in respect of such Tax under clause 9.1 as aforesaid; and (ii)
such amount as the Bank shall, in its sole opinion but in good faith, have concluded to be the
finally determined amount or value of the relevant saving.
	 
	9.4.2	 	Nothing contained in this Agreement shall interfere with the right of the Bank to arrange
its Tax and other affairs in whatever manner it thinks fit and, in particular, the Bank shall
be under no

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obligation to claim relief from Tax on its corporate profits, or from any
similar Tax liability, in respect of the Tax, or to claim relief in priority to
any other claims, reliefs, credits or deductions available to it or to disclose
details of its Tax affairs. The Bank shall not be required to disclose any
confidential information relating to the organisation of its affairs.

	9.4.3	 	The Bank will notify the Borrower promptly of the receipt by the Bank of any saving and of
the Bank’s opinion as to the amount or value of that saving.
	 
	9.5	 	VAT
	 
	 	 	The Borrower shall pay to the Bank all VAT, if any, payable in
respect of any payment to be made by the Borrower to the Bank under
this Agreement or under any other Finance Document.

	10	 	  INCREASED COSTS

If by reason of any change in, or the introduction of, or any
change in the interpretation, administration or application by any
Governmental Body (after the date hereof) of any law or by reason of
the interpretation, administration or application adopted or declared
by any Governmental Body in respect of any law (including of any
official directive or official request from, or the rules of, any
governmental, fiscal, monetary or regulatory (including
self-regulatory) authority, organisation or agency including, the
position (guidelines) of the Examiner of Banks with respect to proper
conduct of bank affairs (“Hora’ot Nihul Bankai Takin”) or any
interpretation of any of the aforegoing by the Examiner of Banks
(whether or not having the force of law but, if not having the force
of law, being a regulation, treaty, official directive, official
request or rule which it is the practice of banks in Israel to comply
with) after the date of this Agreement which affects the Bank or
compliance by the Bank with any such change, introduction, adoption or
declaration, including, in each case, those relating to Taxation,
reserves, special deposits, cash ratio, liquidity, limits on provision
of credit to single borrowers or groups of borrowers or capital
adequacy requirements or other forms of banking, fiscal, monetary or
regulatory controls:

	10.1.	 	the Bank incurs a cost as a result of it having entered into and/or performing and/or
assuming and/or maintaining and/or funding its obligations or commitments hereunder and/or
maintaining the outstanding balance of the Loan; or
	 
	10.2	 	the Bank is unable to obtain the rate of return on its overall capital which it would have
been able to obtain but for it having entered into and/or performing its obligations hereunder
(including maintaining the outstanding balance of the Loan); or

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	10.3	 	any amount receivable by the Bank hereunder is reduced (save to the extent matched by a
reduction in the cost of providing the Loan); or
	 
	10.4	 	the Bank makes any payment or forgoes any Interest or other return on, or calculated by
reference to, any amount received or receivable by it from the Borrower hereunder; or
	 
	10.5	 	there is any increase in the cost of the Bank of funding or maintaining the outstanding
balances of the Loan
	 
	 	 	and such cost (or the relevant proportion thereof), reduction, payment, forgone
Interest or other return is not compensated for by any other provision of this
Agreement, then and in each such case:

	 	(i)	 	the Bank shall notify the Borrower of that event promptly upon it
becoming aware of the event, including, in reasonable detail, particulars of the
event; and
	 
	 	(ii)	 	within 30 (thirty) Business Days after receipt by the Borrower of a
demand from time to time by the Bank accompanied by a certificate of the Bank
specifying the amount of compensation claimed and setting out the calculation of
the amount in reasonable detail, the Borrower shall pay to the Bank such amount
as shall compensate the Bank for such increased cost, reduction, payment or
forgone Interest or other return. Nothing in this clause 10 shall oblige the
Bank to disclose any confidential information relating to the organisation of its
affairs.

The Borrower may, after receipt of a demand as aforesaid in (ii) above, notify the
Bank that it will prepay, on the next following Interest Payment Date, the whole (but
not part only) of the Total Outstandings. Such notice shall be irrevocable and the
Borrower shall on such Interest Payment Date as aforesaid pay to the Bank the Total
Outstandings, together with all accrued Interest thereon and all other amounts owing
to the Bank under the Finance Documents. In the event of prepayment under this clause
10, the provisions of clause 5.5 above requiring the payment of a prepayment
commission in respect of prepayments, shall not be applicable.

	11	 	ILLEGALITY
	 
	 	 	If any change in or the introduction of any law, or any change in
the interpretation, administration or application of laws by a
final decision of a competent court or the relevant authority or
agency after the date hereof or compliance by the Bank with any
such change or introduction of laws or change in interpretation,
administration or application of laws or by reason of the
interpretation, administration or application adopted or declared
by any Governmental Body in respect of any law after the date
hereof including, the position (guidelines) of the Examiner of
Banks with respect to proper conduct of bank affairs (“Hora’ot
Nihul Bankai Takin”) or any interpretation of any of the
aforegoing by the Examiner of Banks

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(whether or not having the force of law but, if not having the force of law, which it is the
practice of banks in Israel to comply with)), shall make it unlawful or a breach of laws for
the Bank to maintain the Loan under this Agreement or to give effect to its obligations as
contemplated by this Agreement, the Bank may, by notice to the Borrower, declare that to the
extent necessary to avoid any such illegality or breach of laws, its obligations to the
Borrower hereunder shall be to the extent necessary as aforesaid, terminated forthwith or, if
later, on the latest date to which the obligations may remain in effect without causing the
Bank to be in breach of laws, whereupon the Borrower will, by the earlier of: (i) the date on
which the illegality or breach in question takes effect; and (ii) the Interest Payment Date
next following such notice from the Bank, prepay the Loan, to the extent necessary as
aforesaid. All such prepayments shall be made together with all Interest and other charges
accrued on all the aforegoing to the date of the prepayment.

	12	 	REPRESENTATIONS AND WARRANTIES
	 
	12.1.	 	General
	 
	 	 	The Borrower hereby makes the representations and warranties
set out in this clause 12 to the Bank. The Borrower acknowledges
that the Bank has entered into this Agreement in full reliance on
the representations and warranties set out in this clause 12 below.
	 
	12.2	 	Legal Validity
	 
	 	 	The Borrower has the absolute and unrestricted right, power,
authority and capacity to execute and deliver this Agreement and the
New Securities to which the Borrower is a party and to perform its
obligations hereunder and thereunder and has taken all corporate
action necessary to approve the consummation of the transactions
contemplated hereby and thereby and to perform its obligations
hereunder and thereunder. Each of this Agreement and the New
Securities to which the Borrower is a party, has been duly
authorised, executed and delivered by the Borrower and constitutes
the legal, valid and binding obligation of the Borrower, enforceable
against the Borrower in accordance with its terms.
	 
	12.3.	 	Non-Conflict
	 
	 	 	Neither the execution and delivery of this Agreement, New
Securities to which the Borrower is a party nor the consummation or
performance of any of the aforegoing is or will, directly or
indirectly (with or without notice of lapse of time):
	 
	12.3.1.	 	contravene, conflict with, or result in a violation of (a) any provision of the
Organisational Documents of the Borrower, or (b) any resolution adopted by the board of
directors or the shareholders of the Borrower; or

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	12.3.2.	 	contravene, conflict with, or result in a violation of, or give any Governmental Body or
other person the right to challenge or to exercise any remedy or obtain any relief under, any
law to which the Borrower or any of the assets owned or used by the Borrower may be subject;
or
	 
	12.3.3.	 	contravene, conflict with, or result in a violation of any of the terms or requirements of,
or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or
modify, any Governmental Authorisation that is held by the Borroweror that otherwise relates
to the Business of, or any of the assets owned or used by, the Borrower and which is material
to the Business of the Borrower; or
	 
	12.3.5.	 	result in the imposition or creation of any Encumbrance (other than Permitted
Encumbrances) upon or with respect to any of the assets owned or used by the Borrower.
	 
	 	 	Without limiting the generality of the aforegoing, there is no restriction or
prevention, legal or otherwise, on the creation of the Encumbrances to be created
pursuant to the New Securities.
	 
	12.5.	 	Consents
	 
	 	 	No notice to, filing with or Consent from any person or Governmental
Body is or will be required to be made or obtained in connection
with the execution, delivery and validity of any of this Agreement
or the New Securities or the consummation or performance of any of
the transactions contemplated hereby or thereby (save for
registrations with the Registrar of Pledges and the Registrar of
Companies).
	 
	12.6	 	Ranking of Securities
	 
	 	 	The security conferred by the Security Documents constitutes a
priority security interest of the type therein described (subject to
statutory preferences which may rank ahead of the security created
thereunder) over the security assets therein referred to, which are
not subject to any prior or other Encumbrances and is not liable to
be set aside on insolvency of the Borrower.
	 
	12.7	 	All the representations and warranties provided by the Borrower to the Investors in Article
III of the Investment Agreement shall be deemed to be included herein, mutatis mutandis
(including any disclosures made in the disclosure schedules to such agreement). For the
avoidance of doubt, these representations and warranties shall not survive the Closing Date
and shall not entitle the Bank to any rights or remedies after the Closing Date.
	 
	13.	 	UNDERTAKINGS

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	 	 	The Borrower undertakes to the Bank that so long as any sum remains payable by the Borrower
hereunder:
	 
	13.1	 	Financial Information
	 
	13.1.1	 	The Borrower shall furnish to the Bank at such intervals as agreed between the parties:

	 	(i)	 	the audited consolidated Financial Statements of the
Borrower for that Fiscal Year;
	 
	 	(ii)	 	the reviewed consolidated Financial Statements of
the Borrower for that Quarter;

	13.1.2	 	The Borrower shall also furnish the Bank with copies of all internal financial reports
provided by the Borrower to its Board of Directors.

	13.2	 	Financial Statements and Auditors
	 
	 	 	The Borrower will ensure that:
	 
	13.2.1	 	to the extent delivered to the Bank, the annual Financial Statements to be delivered to the
Bank pursuant to clause 13.1 above are audited by the Auditors and that the quarterly
Financial Statements are, unless otherwise indicated herein, reviewed by the Auditors;
	 
	13.2.2	 	the Borrower shall at all times have duly appointed Auditors;
	 
	13.2.3	 	the Borrower will not change its financial year-end without the prior written consent of the
Bank;
	 
	13.2.4	 	all Financial Statements shall be prepared in accordance with GAAP (consistently applied) or
shall indicate in notes to or accompanying such Financial Statements any material departures
from GAAP or changes in the accounting policy of the Borrower;
	 
	13.2.7	 	all Financial Statements shall fairly present in all material respects (subject to
adjustments which fall to be made at the end of the financial year in accordance with GAAP),
the financial position and results of operations of its financial position and results of
operations, as at the end of and for the Accounting Period to which they relate.
	 
	13.3	 	Negative Pledge
	 
	 	 	The Borrower shall not create or permit to subsist any Encumbrance on
the whole or any part of its, or any of any member of the Group’s
present or future assets, business or undertaking or on the shares
held by the Borrower (directly or indirectly) in its Material

Page 35 of 59

 

	 	 	Subsidiaries, save for Permitted Encumbrances, any other Encumbrances over such
assets, business or undertaking existing as of the date hereof.
	 
	13.4	 	No Financial Indebtedness

	(a)	 	Save with the prior written consent of the Bank, the Borrower and its Material
Subsidiaries will not incur any Financial Indebtedness nor will it provide any
guarantee to a third party, save for Permitted Financial Indebtedness, and the
Borrower will procure that the Group will not incur any Financial Indebtedness or
provide any guarantee to a third party other than Permitted Financial Indebtedness.
	 
	(b)	 	Notwithstanding the foregoing, the Borrower only will be entitled to incur
Financial Indebtedness in accordance with the following, without the prior consent of
the Bank:

	 	(i)	 	the maximum amount of such Financial Indebtedness
shall be $30 million;
	 
	 	(ii)	 	in the event that the aggregate amount of such
Financial Indebtedness actually borrowed by the Borrower is greater than
$10 million, then for each sum of $1 above $10 million, the Borrower
shall, on the Interest Payment Date following such borrowing, prepay
$0.50 of the Financial Indebtedness outstanding hereunder (such that the
maximum prepayment under this Clause shall be $10 million); and
	 
	 	(iii)	 	such Financial Indebtedness shall rank pari passu
with the Financial Indebtedness created hereunder and shall be secured by
the Security Documents and the Bank shall enter into such agreements with
the provider of such Financial Indebtedness as are necessary to implement
the foregoing.

	13.5	 	Distributions
	 
	13.5.1	 	The Borrower will not, prior to the date that the Second Repayment Amount and the Third
Repayment Amount have been fully repaid, and at least fifty percent (50%) of the Loan shall
have been paid in full (after payment in full of the Second Repayment Amount and the Third
Repayment Amount), make or resolve to make any Distribution, other than (i) provided that no
Event of Default shall have occurred and be continuing, nor shall it result from the proposed
Distribution, the Remaining Amount (as defined in Clause 6.1.2 above); and (ii) any redemption
of shares pursuant to Clause 10.3 of the Investment Agreement.

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	 	 	The Borrower will not, after the date that the Second Repayment Amount and the Third
Repayment Amount have been fully repaid, and at least fifty percent (50%) of the Loan
shall have been paid in full (after payment in full of the Second Repayment Amount and
the Third Repayment Amount), make or resolve to make any Distribution other than (i)
provided that no Event of Default shall have occurred and be continuing nor shall it
result from the proposed Distribution, from the profits available for Distribution
from the ongoing operations of the Borrower; or (ii) provided that no Event of
Default shall have occurred and be continuing, nor shall it result from the proposed
Distribution, the Remaining Amount (as defined in Clause 6.1.2 above); or (iii) any
redemption of shares pursuant to Clause 10.3 of the Investment Agreement.
	 
	13.6.	 	New Securities
	 
	 	 	The Borrower shall, and with respect to its Material Subsidiaries shall use
reasonable commercial efforts to procure that such Material Subsidiaries shall file,
register, execute and perform any other actions necessary, or in the opinion of the
Bank desirable to effectuate and perfect each of the New Securities in accordance with
any and all applicable laws governing each of such New Securities by no later than
April 30, 2007 and shall provide the Bank with evidence, satisfactory to the Bank,
that such New Securities have been duly perfected by such date. In addition, the
Borrower shall use its reasonable commercial efforts to provide the Bank by no later
than April 30, 2007, with (i) an opinion of non-Israeli counsel, addressed to the Bank
confirming that the Existing Securities granted by non-Israeli companies in the Group
secure the transactions contemplated hereby and an opinion of — Zellermeyer, Pellossof
& Co., Advocates, addressed to the Bank confirming that the New Securities granted
by Israeli companies in the Group secure the transactions contemplated hereby and (ii)
and an opinion of – non-Israeli counsel, addressed to the Bank confirming that the
New Securities granted by non-Israeli companies in the Group secure the transactions
contemplated hereby.
	 
	13.7	 	Intellectual Property Assets
	 
	 	 	The Borrower will (and will procure that its Material Subsidiaries will):
	 
	13.7.1	 	make such registrations and pay such fees and similar amounts as are necessary to keep those
registered Intellectual Property Assets owned by the Borrower or such Material Subsidiary
which are material to the operation of the Business in force and to record its interest in
those Intellectual Property Assets;
	 
	13.7.2.	 	not sell, transfer, lease, license on an exclusive basis or otherwise dispose of all or any
part of its interest in any of the Intellectual Property Assets referred to in clause 13.7.1
above, save for (a) any licence arrangements in respect of those rights

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	 	 	entered into with any third party, where those licence arrangements are entered
into on arms’ length terms and in the ordinary course of business and (b)
disposals permitted in accordance with Clause 13.21 below; and
	 
	13.7.3.	 	not permit any registration of any of the Intellectual Property Assets referred to in
clause 13.7.1 above to be abandoned, cancelled or lapsed or to be liable to any claim of
abandonment for non-use or otherwise, except in respect of Intellectual Property Assets, the
non-registration of which shall not have a Material Adverse Effect.
	 
	13.8.	 	Insurance
	 
	13.8.1.	 	With effect from the date hereof and until the date upon which all amounts payable by the
Borrower hereunder shall have been paid in full, the Borrower shall, and shall procure that
its Material Subsidiaries shall insure and keep insured all material properties and assets of
the Borrower or such Material Subsidiary, with reputable insurance companies or underwriters.
	 
	13.8.2.	 	The Borrower shall, and shall procure that its Material Subsidiaries shall promptly after
becoming aware of the relevant requirement, effect and maintain all insurances required by the
terms of any applicable law or any Contract binding on it.
	 
	13.8.3.	 	The Borrower shall, and shall procure that its Material Subsidiaries shall ensure that it
has such insurance coverage in respect of any risks or liabilities as would from time to time
generally and customarily be insured by a company carrying on a business similar to the
Business.
	 
	13.8.4.	 	The Borrower shall, and shall procure that its Material Subsidiaries shall pay all premiums
on all Insurance Policies when due and the Borrower shall, and shall procure that its Material
Subsidiaries shall maintain and comply with the provisions of the Insurance Policies and the
Borrower shall, and shall procure that its Material Subsidiaries shall ensure that the
Insurance Policies do not become void or voidable. The Borrower will promptly supply to the
Bank on request evidence reasonably satisfactory to the Bank of payment of all premiums and
other amounts payable by it under and a certified copy of, each insurance policy taken out and
maintained by it pursuant to this clause 13.8.
	 
	13.8.5.	 	The Borrower shall promptly notify the Bank of any insurance claim where the amount of such
claim exceeds US $1,000,000 (one million United States Dollars) (or its equivalent, on the
date on which the claim is made, in the currency in which such claim is made).

Page 38 of 59

 

	13.9	 	Mergers and Amalgamations
	 
	 	 	The Borrower will not and will procure that its Subsidiaries will
not, enter into or resolve to approve any merger, consolidation,
amalgamation or scheme of reconstruction or in any way transfer its
or their respective businesses or part thereof or otherwise change
its corporate structure, save with the prior written consent of the
Bank or to the extent such transaction is permitted pursuant to
Clause 13.21 below.
	 
	 	 	To the extent that the Bank consents to the setting up of one or more direct or
indirect new Material Subsidiaries of the Borrower, a first priority charge shall be
placed on the shares held by the Borrower, direct or indirect in such new Material
Subsidiaries, including on any of the profits, dividends and/or other rights of the
Borrower linked to such shares.
	 
	13.10	 	Consents
	 
	 	 	The Borrower will (and will procure that any Subsidiary executing a New Security will) obtain every Consent required to
perform its obligations under this Agreement or the Security Documents and ensure that: (a) none of the Consents is
revoked, cancelled, suspended, withdrawn, terminated, expires or is not renewed or otherwise ceases to be in full force
and effect; and (b) no Consent is modified and that it does not commit any breach of the terms or conditions of any
Consent, except in each case to the extent that failure to comply will not have a Material Adverse Effect.
	 
	13.11	 	Not Used
	 
	13.12	 	Auditors
	 
	13.12.1	 	The Borrower will notify the Bank of any change in its Auditors.
	 
	13.12.2.	 	The Borrower will authorise the Auditors to discuss the Borrower’s financial position with
the Bank on the Bank’s reasonable request and after notice is provided to the Borrower, at the
expense of the Borrower.
	 
	13.13.	 	Acquisitions
	 
	13.13.1.	 	The Borrower will not and will procure that its Subsidiaries will not, without the prior
written consent of the Bank, make any Acquisition (including any investment of any kind in any
Material Subsidiary or other Affiliate), unless: (a) the aggregate amount of the investment by
the Borrower and its Subsidiaries in all Acquisitions during any calendar year does not exceed
US $8,000,000 (eight million United States Dollars); and (b) the Borrower and its
Subsidiaries shall not incur any Indebtedness (contingent or otherwise) other than Permitted
Financial

Page 39 of 59

 

Indebtedness of the Borrower only in connection with such Acquisition.
Notwithstanding the foregoing, the following Acquisitions from subsidiaries or
Affiliates shall be permitted:

	 	(i)	 	any investment in or loan to Lumenis Holdings Inc.
deemed to have been made by the Borrower as a result of the transactions
contemplated hereby;
	 
	 	(ii)	 	any investment in a subsidiary required in order to
enable the subsidiary to comply with any minimum capital requirements
imposed by law;
	 
	 	(iii)	 	the acquisition by the Borrower of the Intellectual
Property Assets of Lumenis Holdings Inc. or any other Subsidiary of the
Borrower; and
	 
	 	(iv)	 	other Acquisitions by the Borrower from any
Subsidiary.

	13.13.2.	 	The ability of the Borrower and its Subsidiaries to make any Acquisition pursuant to
clause 13.13.1 above will be conditional upon the Borrower or the relevant Subsidiary using
its best efforts to provide that the interests acquired in such Acquisition are first capable
of being pledged in favour of the Bank by way of a first pledge and charge under the Existing
Debenture or any other charge, in a form satisfactory to the Bank.
	 
	13.14.	 	Access
	 
	13.14.1.	 	For such time as an Event of Default has occurred and is continuing the Borrower and its
Material Subsidiaries shall, subject to prior coordination with the Borrower and its Material
Subsidiaries of the time and during regular working hours, permit the Bank to have access to
the facilities of the Borrower and its Material Subsidiaries’ in order to review the corporate
and financial books, records, accounts, documents and other similar information in the
possession of or available to it, and to take such copies as may be considered appropriate.
Notwithstanding the foregoing, the Borrower shall provide the Bank with copies of the
corporate and financial books, records and accounts relating to the Borrower and/or its
Material Subsidiaries at any time held by the Borrower that the Bank shall so request. In
addition, the Bank shall have the right to discuss the affairs, finances and Financial
Statements of the Borrower and its Material Subsidiaries with the directors and officers of
the Borrower and its Material Subsidiaries, all at such reasonable times after giving written
notice and as often as the Bank may from time to time request.
	 
	13.14.2.	 	For the avoidance of doubt, no information or access provided to the pursuant to this
Agreement shall release the Borrower from its obligations to make and provide, and to be fully
responsible for, all reports and notices as shall be required

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	 	 	under this Agreement, or in any way place any responsibility on the Bank with
respect to the Borrower or to any third parties with respect to such
information and access, including, any claim that any knowledge obtained by the
Bank constitutes any waiver of any nature or acceptance by the Bank of any such
matter or matters as to which the Bank has obtain knowledge.
	 
	13.15.	 	NOT USED
	 
	13.16.	 	Organisational Documents
	 
	 	 	The Borrower shall not (and shall procure that its Subsidiaries
shall not) amend its Articles of Association or other
Organisational Documents in any respect materially adverse to the
interests of the Bank without the prior written consent of the
Bank, unless such amendment is required by law.
	 
	13.17	 	NOT USED
	 
	13.18.	 	Hedging
	 
	 	 	The Borrower and its Material Subsidiaries shall not enter into any
Hedging Transaction, other than Permitted Hedging Transactions.
“Permitted Hedging Transactions” shall mean: (i) forward
transactions, swap transactions, future transactions or other
similar types of transactions; or (ii) other Hedging Transactions
in which the maximum financial exposure is reasonable and the exact
amount thereof may be calculated pursuant to the Hedging
Transaction agreement at the time such agreement is entered into,
provided, in the case of both (i) and (ii), such Hedging
Transaction is made with the Bank in respect of interest rates or
currencies exposures with respect to the Group and, provided
further that, the Borrower and its Material Subsidiaries shall not:
(a) enter into any Permitted Hedging Transactions for any
speculative purpose; and (b) enter into any Permitted Hedging
Transactions, save with the prior written consent of the Bank.
	 
	13.19.	 	Transactions with Related Persons
	 
	 	 	Except with the prior written consent of the Bank, the Borrower
will not and will procure that its Subsidiaries will not, directly
or indirectly, purchase, acquire or lease any property from, or
sell transfer or lease any property to, or otherwise have any
dealings or enter into any transaction after the date of this
Agreement with, any interested person (Baal Inyan), Affiliate or
any Subsidiary of the Borrower, except on terms no more favourable
to such other person than would apply in the case of arm’s length
Contracts entered into in the ordinary course of business, except
for transactions which are not material.
	 
	13.20.	 	NOT USED

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	13.21.	 	Disposals
	 
	 	 	The Borrower will not, and will procure that its Material
Subsidiaries will not either in a single transaction or in a series
of transactions whether related or not and whether voluntarily or
involuntarily, sell, transfer, lease or otherwise dispose of all or
any part of or interest in its respective assets or undertaking to
any person, save for (i) disposals in the ordinary course of
business carried out in accordance with market conditions; (ii)
disposals of assets of the Borrower or such Material Subsidiary
for full consideration and on arms’ length, commercial terms (only
for so long as Section 14.10 shall be complied with) and (iii) any
other disposal with the prior written consent of the Bank and as to
(i), (ii) and (iii), all provided that no Event of Default has
occurred and is continuing; provided that if Event of Default has
occurred and is continuing, disposals in amounts not exceeding $10
million per year shall be permitted if the proceeds of such
disposal are invested in the Borrower.
	 
	13.22.	 	Notification of Default
	 
	 	 	The Borrower shall notify the Bank of any Default or Event of
Default of which it is aware (and the steps, if any, being taken to
remedy such Default or Event of Default) promptly upon becoming
aware thereof.
	 
	13.23.	 	Compliance with Laws
	 
	 	 	The Borrower will and will procure that its Subsidiaries will
comply in all respects material to the Bank with all applicable
laws and Orders (provided that any breaches of the requirements of
this Clause occurring prior to the Closing Date shall not be
considered a breach of this Agreement).
	 
	13.24.	 	Forecasts
	 
	 	 	Following submission of any forecast or updated forecast to the
Board of Directors of the Borrower (but in any event, not less than
once per year), the Borrower shall provide the Bank a copy of such
forecast.
	 
	13.25.	 	Financial Ratios
	 
	 	 	The Borrower shall, commencing with respect to the first Quarter of 2008, comply with
the Financial Ratios set out in Schedule 13.25.
	 
	13.26.	 	Change of Business
	 
	 	 	The Borrower will not and will procure that its Material
Subsidiaries will not make or threaten to make any substantial
change in the nature of its Business (save as contemplated in the
Business Targets Summary) or as a result of Disposals permitted
hereunder.

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	 	 	The Borrower will not and will procure that its Material Subsidiaries will not carry
on any business other than the Business.
	 
	14.	 	DEFAULT
	 
	14.1	 	Events of Default
	 
	 	 	Each of the events set out in clause 14.2 to clause 14.15 is an Event
of Default (whether or not caused by any reason outside the control
of the Group or of any other person). To the extent that any further
defaults or breaches are set out in any of the other Security
Documents or bank account opening forms to which the Borrower or any
Subsidiary is a party, such defaults or breaches shall not be
applicable with respect to the Loan, this Agreement or the
transactions contemplated hereby.
	 
	14.2	 	Non-Payment
	 
	 	 	The Borrower does not pay any amount payable by it hereunder at the
place and in the funds expressed to be payable, within the earlier
of: (i) 7 (seven) Business Days; or (ii) 10 (ten) days, of the due
date for payment.
	 
	14.3	 	Breach of Obligations
	 
	14.3.1.	 	There is any breach of: the provisions of any of clauses 13.3-13.5, (inclusive); clauses
13.7.2., 13.9, 13.13, 13.21 and, if such default is capable of remedy within such period,
within 21 (twenty one) days after receipt by the Borrower of written notice from the Bank
requiring the failure to be remedied, the Borrower shall have failed to cure such default.
	 
	14.3.2	 	Failure of the Borrower and its Subsidiaries to meet any of the Financial Ratios set out in
Schedule 13.25, and failure to meet the conditions for curing such breach as set forth
therein.
	 
	14.3.3.	 	The Borrower fails to comply with any undertaking or obligation contained herein (other
than an undertaking referred to in clause 14.2, 14.3.1 or 14.3.2 above) and, if such default
is capable of remedy within such period, within 45 (forty five) days after receipt by the
Borrower of written notice from the Bank requiring the failure to be remedied, the Borrower
shall have failed to cure such default.
	 
	14.5.	 	Invalidity
	 
	 	 	This Agreement or any of the Security Documents shall cease to be in
full force and effect in any respect or shall cease to constitute
the legal, valid, binding and enforceable obligation of the Borrower
or relevant member of the Group or in the case of any Security
Document, fail to provide effective perfected security in favour of
the Bank over the assets over which security is intended to be given
by

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	 	 	that Security Document and such failure has a Material Adverse Effect.
	 
	14.6.	 	Cross Acceleration
	 
	14.6.1.	 	Without derogating from sections 14.2 or 14.3, (i) the Borrower is in default of the
Financial Indebtedness referred to in Section 1.1.53 (c) above or (ii) an amount of at least
$5,000,000 of the Borrower’s Financial Indebtedness is not paid when due (whether falling due
by demand, at scheduled maturity or otherwise) or within any applicable grace period provided
for in the document evidencing or constituting such Financial Indebtedness and the Borrower
has failed to pay such amount within 21 days of receipt of demand to make such payment.
	 
	14.7.	 	Insolvency and Rescheduling
	 
	 	 	The Borrower and/or Laser Industries Ltd. or a Material Subsidiary
with revenues of more than $20 million per year (each a “Super
Material Subsidiary”) is unable to pay its debts as they fall due or
admits inability to pay its debts as they fall due, commences
negotiations with any one or more of its creditors with a view to
the general readjustment or rescheduling of its Indebtedness or
makes a general assignment for the benefit of or a composition with
its creditors.
	 
	14.8.	 	Winding-Up

	 	(a)	 	The Borrower or anya Super Material Subsidiary takes any corporate
action for its winding-up, liquidation, bankruptcy, dissolution, administration
or re-organisation (or for the suspension of payments generally or any process
giving protection against creditors, including hakpaat halichim) or for the
appointment of a permanent or temporary liquidator, receiver, trustee,
administrator, administrative receiver or similar officer of it or of all or any
part of its revenues or assets;
	 
	 	(b)	 	Any person is issued on an ex parte basis an order for the
appointment of a permanent or temporary liquidator, receiver, trustee,
administrator, administrative receiver or similar officer of the Borrower or of
all or any material part of its revenues or assets which is not subsequently
withdrawn or set aside within 21 days;
	 
	 	(c)	 	The appointment of a permanent or temporary liquidator, receiver,
trustee, administrator, administrative receiver or similar officer of the
Borrower or any Super Material Subsidiary or of all or any material part of its
revenues or assets, or the issuing of an order for hakpaat halichim in each case,
after a hearing at which the Borrower or any Super Material Subsidiary was
present.

	14.9	 	Execution or Other Process

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	 	 	Any execution, attachment, collection, sequestration or other
process arising out of any claim by any third party against the
Borrower or any Super Material Subsidiary for amounts in excess of
$1,000,000, save where: (a) the Borrower or any Super Material
Subsidiary is in good faith on reasonable grounds, contesting the
execution, attachment, sequestration or other process by appropriate
proceedings diligently pursued; (b) the Bank is satisfied that the
ability of the Borrower or any Super Material Subsidiary to comply
with its respective obligations hereunder will not be adversely
affected whilst such distress, execution, attachment, collection,
diligence or other process is being so contested; and (c) such
process as aforesaid is cancelled or withdrawn not later than 21
(twenty one) days after the institution thereof.
	 
	14.10	 	Change of Holdings
	 
	 	 	Save with the prior written consent of the Bank (such consent not to be unreasonably
withheld), as a result of a single transaction or series of transactions, LM Partners
L.P. (or any of its permitted transferees, as defined below) shall hold any less than
20% of the outstanding shares of the Borrower on a fully diluted basis, unless a
reduction below this percentage results from the issuance of new securities by the
Borrower to unaffiliated investors in the Borrower, and LM Partners L.P. (together
with its permitted transferees) continues to be the largest shareholder of the
Borrower.
	 
	 	 	For the purposes of this clause, a permitted transferee shall mean any corporate
entity which controls, is controlled by, or is under common control with LM Partners
LP, in each case, either directly or indirectly.
	 
	14.11.	 	Proceedings
	 
	 	 	Any litigation, dispute, arbitration, administrative, regulatory or
other proceedings or enquiry concerning or involving the Borrower
or any Subsidiary which has a Material Adverse Effect is commenced
after the date hereof.
	 
	14.12.	 	Consents
	 
	14.12.1.	 	Any Consent necessary for the Borrower to comply with its obligations hereunder:

	 	(i)	 	is not obtained or is surrendered, terminated,
withdrawn, suspended, cancelled or revoked or does not remain in full
force and effect or otherwise expires and is not renewed prior to its
expiry (in each case, without replacement by permits, consents or
authorisations, as applicable, having equivalent effect); or
	 
	 	(ii)	 	is modified in any material adverse respect or
breached

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	 	 	 	In each case, in a manner that has a Material Adverse
Effect.

	14.13.	 	Material Adverse Effect
	 
	 	 	Any event or series of events occur which, in the reasonable
opinion of the Bank, after discussion with the Borrower, is
likely to have a Material Adverse Effect, including, any material
adverse change in the Business or financial condition of the
Group or in the ability of the Borrower to perform its
obligations hereunder.
	 
	14.14.	 	Government Action
	 
	 	 	Any government or Governmental Body: (a) nationalises, seizes or
expropriates all or any substantial or material part of the
assets of the Group; or (b) assumes custody or control of such
assets, or of the business or operations of the Group; or (c)
takes any action that would prevent the Group or its officers
from carrying on its Business or operations or a substantial or
material part thereof, in each case, in a manner which has a
Material Adverse Effect; or by or under the authority of the
government of Israel or any other competent Israeli Governmental
Body any law is introduced after the date hereof imposing
restrictions on the free exchange of NIS for Dollars or of
Dollars for NIS.
	 
	14.15.	 	Illegality
	 
	 	 	It is or becomes unlawful for (i) the Borrower to perform any of
its material obligations hereunder or (ii) the Borrower or any
Subsidiary party to a Security Document to perform any of its
material obligations under such Security Document.
	 
	14.16.	 	Acceleration
	 
	 	 	Upon the occurrence of an Event of Default and at any time
thereafter while the same is continuing, the Bank may, by notice
to the Borrower:
	 
	14.16.1.	 	declare that an Event of Default has occurred; and/or
	 
	14.16.2.	 	declare that the Loan together with all Interest accrued and all other amounts (including
amounts due under clause 16, to the extent applicable) payable by the Borrower hereunder from
time to time, shall thenceforth be repayable on demand being made by the Bank (and in the
event of any such demand, the Loan, such Interest and such other amounts shall be immediately
due and payable); and/or
	 
	14.16.3.	 	declare the Loan immediately due and payable, whereupon it shall become immediately due
and payable, together with all Interest accrued on the Loan and all other amounts payable by

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	 	 	the Borrower hereunder (including, amounts due under clause 16, to the extent
applicable).
	 
	14.17	 	Loans Due on Demand
	 
	 	 	If, pursuant to clause 14.16.2 above
the Bank declares the Loan to be due and
payable on demand, then and at any time
thereafter, so long as any Event of Default
is continuing or has not been waived, the
Bank may by written notice to the Borrower
require repayment of the Loan on such date
as the Bank may specify in such notice
(whereupon the same shall become due and
payable on such date together with accrued
Interest thereon and any other sums then
owed by the Borrower hereunder) or withdraw
such declaration with effect from such date
as they may specify in such notice.
	 
	14.18.	 	Collection
	 
	 	 	In the event of acceleration of the
Loan pursuant to clause 14.16.3 above or of
a written notice under clause 14.17 above,
then, without derogating from any other
remedies or relief available to the Bank
under law or under any of the Security
Documents, the Bank shall be entitled to
take all steps as it deems fit in order to
collect all sums owed by the Borrower to
the Bank (including all sums referred to in
clause 14.16 above), including, to realise
all or any of the assets secured under the
Security Documents, all at the expense of
the Borrower and to utilise the sums
received to repay in part or in full all
amounts owed by the Borrower hereunder.
	 
	14.19.	 	Indemnity
	 
	 	 	The Borrower shall indemnify the Bank
against any losses, charges or expenses
which the Bank may sustain or incur as a
consequence of:
	 
	14.19.1	 	the occurrence of any Event of Default or Default; or
	 
	14.19.2.	 	the operation of clauses 14.16, 14.17 or 14.18,
	 
	 	 	including, any losses, charges or
expenses on account of funds acquired,
contracted for or utilised to fund any
amount payable under this Agreement or any
amount repaid or prepaid. A certificate of
the Bank as to the amount of any such loss
or expense shall be prima facie evidence in
the absence of manifest error.
	 
	15	 	DEFAULT INTEREST
	 
	15.1.	 	Default Rate Periods
	 
	 	 	If any sum due and payable by the
Borrower hereunder is not paid on the due
date therefore in accordance with the
provisions of this Agreement (“Unpaid
Sum”), the period beginning on such due
date and ending on the date upon which the
obligation of the Borrower to

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	 	 	pay the Unpaid Sum is discharged, shall be divided into successive periods, each of
which (other than the first) shall start on the last day of such preceding period and
the duration of each of which shall (except as otherwise provided in this clause 15)
be selected by the Bank (such periods selected as aforesaid “Interest Periods”).
	 
	15.2.	 	Default Interest
	 
	 	 	During each such Interest Period as is mentioned in clause 15.1
above, an Unpaid Sum shall bear interest at the rate per annum which
is the sum from time to time of: (a) 2.5% (two point five percent);
and (b) the interest rate in respect of such Interest Period as
would have been determined in accordance with clause 7.1 above.
	 
	15.3.	 	Payment of Default Interest
	 
	 	 	Any interest which shall have accrued under clause 15.2 above in
respect of an Unpaid Sum shall be due and payable and shall be paid
by the Borrower at the end of each Interest Period by reference to
which it is calculated or on such other dates as the Bank may
specify by written notice to the Borrower.
	 
	16.	 	BROKEN FUNDING INDEMNITY
	 
	 	 	Broken Funding
	 
	 	 	If the Bank receives or recovers all or any part of the Loan otherwise than on the
scheduled date of repayment of the Loan, the Borrower shall on the first Interest
Payment Date following such repayment on demand pay to the Bank an amount equal to the
amount (if any) by which: (a) the additional amount of Interest which would, in
accordance with the terms of this Agreement, have been payable on the amount so
received or recovered had it been received or recovered on the following Interest
Payment Date exceeds (b) the amount of Interest which, in the opinion of the Bank,
would have been payable to the Bank on the last day of such Interest Period in respect
of a deposit in the currency of the Loan, of an amount equal to the amount so received
or recovered, had such an amount been placed by it with a prime bank in London for a
period starting on the date of such receipt or recovery and ending on the following
Interest Payment Date. For the removal of all doubt: (i) with respect to all or any
part of the Loan received or recovered otherwise than on the scheduled date of
repayment of such amount relating to the Loan, the payment set forth above shall only
be made once; and (ii) voluntary or mandatory prepayments made in accordance with
clause 5, 6, 11 or 13.4(b), as the case may be, on an Interest Payment Date shall not
be subject to a payment of broken funding in accordance with this clause 16.
	 
	17	 	PAYMENTS

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	 	 	Payments by Borrower
	 
	 	 	All payments to be made by the Borrower to the Bank shall be made in
same day funds to the Account.
	 
	18	 	RIGHTS OF THE BANK
	 
	18.1	 	The Bank shall have a right of possession, lien, set-off and charge over any amounts, assets
and rights including gold, securities, coins, banknotes, documents in respect of goods,
insurance policies, bills, assignments of rights or obligations, deposits, collaterals and
their countervalue held at the Bank and/or in its control at any time to the credit and/or on
behalf of the Borrower, including such as have been delivered for collection, security,
safe-keeping or otherwise. The Bank shall be entitled to detain the said assets until
repayment in full of the Loan or to realize them by selling them and applying the countervalue
thereof in whole or in part to repayment of the Loan.
	 
	 	 	In the event that the sums that are set off are being deposited in foreign currency,
the Borrower hereby instructs the Bank in advance to sell the credit balance in
foreign currency at the customary rate of the Bank and set off the countervalue of
such sale against the Loan after deducting the necessary expenses and charges.
	 
	18.2	 	Without derogating from the Bank’s right of lien in accordance with clause 18.1 above, the
Bank may, at any time:
	 
	18.2.1	 	Set off any amount of the Loan that is due and payable that is as yet unpaid against any
sums due from the Bank to the Borrower in any account in Israeli or foreign currency in any
manner or for any reason.
	 
	18.2.2	 	Purchase and credit to the Account, any sum in foreign currency that will be required to pay
any amount of the Loan due and payable that is as yet unpaid, or sell any foreign currency
standing at the Bank to his credit, and apply the proceeds of sale in payment of any amount of
the Loan due and payable that is as yet unpaid.
	 
	18.2.3	 	Debit any account of the Borrower with any sum required to pay any amount of the Loan which
is due and payable that is as yet unpaid, regardless of whether such account is in credit or
overdrawn (or whether it will become overdrawn as a result of such debiting of the account by
the Bank), and without derogating from the rights of the Bank under clause 15 above. Save that
if the state of the account does not enable the final repayment of any amount, the Bank will
be entitled to refrain from debiting such account in which case it may reverse any debit and
treat any sum for which the debit has been reversed as an amount unpaid on account of the
Loan, and in consequence take any act it deems fit in accordance with this Agreement.

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	18.2.4	 	The Bank will, in any event, provide the Borrower with 10 (ten) days’ prior notice before
the date of effecting the set-off, unless an Event of Default has occurred and is continuing.
	 
	 	 	Notwithstanding that stated in sub-clause 18.2.4 above, if the deferred
execution of the set-off could jeopardize the condition of the Bank or affect
any of its rights, the set-off may be effected by the Bank immediately,
provided that it shall promptly notify the Borrower thereof. In addition, if,
during the period of the 10 days’ notice, an attachment order or notice of
receivership over the Borrower’s property arrives or any similar event occurs,
the Bank may effect the set-off immediately.
	 
	18.3	 	The Borrower hereby declares that it is aware that in those cases where the Bank exercises
all or any of such rights of set-off before the Maturity Date with respect to any deposit of
the Borrower, in whole or in part, there may be adverse changes to its rights in connection
with or relating to such deposits (including, without limitation, with regard to: interest
rates, linkage differentials, exchange rate differentials, rights to bonuses or loans,
exemption or reduced income tax and deductions at source, all to the extent that the
conditions of such deposit granted it such rights). The Borrower will bear all the costs and
payments for the time being customary in the Bank for the purpose of executing such act.
	 
	18.4	 	Any purchase or sale mentioned in clause 18.2.2 above, will be made according to the
customary rate of the Bank, out of sums in Israeli or foreign currency, as the case may be,
which are existing at the Bank to the Borrower’s credit or which will be received from
realizing any collateral that have been or will have been given to the Bank by or on behalf of
the Borrower.
	 
	18.5	 	The Bank may, at any time, debit any account of the Borrower, with any sum due from the
Borrower in any manner, regardless of whether such account is in credit or overdrawn or
whether it will become overdrawn as a result of such debiting of the account by the Bank, and
without derogating from the rights of the Bank under clause 15 above. It is agreed by the
Borrower that whenever any demand in writing is referred to it by the Bank which is not
responded to by it within the period prescribed in the demand, the Bank may act as stated at
the beginning of this section, and debit any account of the Borrower with the amount that was
demanded. The Bank will further be entitled to credit any sum received from the Borrower or on
its behalf to the credit of such account as it deems fit, and transfer any sum standing to his
credit to such other account as it deems fit.
	 
	 	 	The Borrower’s instruction to debit the Account, set out in clause 17 above, does not
affect the Bank’s right to debit any other account of the Borrower as stated in this
clause 18.

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	18.6	 	The Borrower confirms that the Bank’s books and accounts shall in the absence of manifest or
proven error, serve as prima facie evidence against it in all their details including in
reference to the calculation of the Loan components, the particulars of the bills, guarantees
and other collateral and any other matter relating to this Agreement.
	 
	18.7	 	The Borrower confirms that the Bank has notified it, according to the Protection of Privacy
Law, 5741-1981 that all the details that will be given by it to the Bank will be used by the
Bank in the normal course of its operations, at its absolute discretion. All the particulars
that have been or will be given by it to the Bank will be stored according to the needs of the
Bank in data banks maintained by the Bank or by those supplying to the Bank from time to time,
computer, data processing and data bank services.
	 
	18.8	 	The Bank will be entitled, upon the occurrence of any Event of Default, to use such means as
it deems fit in order to collect the Loan and exercise any of its rights hereunder, including
by way of realizing all or any part of property that has been charged under the Securities
Documents, and apply the proceeds thereof in discharge of the Loan, without being obliged to
first realize guarantees or other collateral, (if any) held by the Bank.
	 
	18.9	 	If the Bank decides to realize securities, bills or any other negotiable instrument, three
days’ advance notice regarding the steps to be taken by the Bank will be regarded as
reasonable notice for the purpose of section 19(b) of the Pledges Law, 5727-1967, or of any
legal provision in substitution therefore.
	 
	18.10	 	If amounts on account of the Loan are not yet due and payable or are only contingently due
to the Bank, at the time that any charged or other property under the Security Documents is
sold, (hereinafter: – “the above amounts”) the Bank will be entitled to collect out of the
proceeds of sale, sums sufficient to cover the amounts due, and the amount collected which has
not yet been appropriated to the satisfaction of the amounts mentioned in clause 18.13 above
will be charged to the Bank as security for the repayment of the Loan and be retained by the
Bank until they have been fully discharged.
	 
	19.	 	APPLICATION OF PAYMENTS
	 
	19.1.	 	Insufficient Payment
	 
	 	 	If the Bank receives a payment insufficient to discharge all the
amounts then due and payable by the Borrower to it under the Finance
Documents, the Bank shall apply that payment towards the obligations
of the Borrower under the Finance Documents in the following order
or in such other order as the Bank may deem fit:

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	19.1.1.	 	firstly, in or towards payment of any unpaid fees, costs and expenses of the Bank or any
Receiver (as defined in any Security Document) under the Finance Documents; and
	 
	19.1.2.	 	secondly, in or towards payment of any other amount due to the Bank but unpaid under this
Agreement or any other Finance Document, other than principal (including, Interest, damages,
commissions, fees, broken funding indemnity fees and all other costs), the above in such order
as the Bank deems fit; and
	 
	19.1.3.	 	thirdly, in or towards payment to the Bank on account of the principal of the Loan.
	 
	19.2.	 	Currency Conversion
	 
	 	 	If, notwithstanding the obligations of the Borrower under this
Agreement (and without derogating from such obligations), any sum is
received by the Banks in a currency (“the first currency”) other
than the currency (“the second currency”) in which the relevant
amount is to be paid pursuant to the provisions of this Agreement,
then such sum shall be converted into the second currency at the
buying rate of the second currency in the first currency prevailing
at the Bank at the close of business on the date of receipt thereof.
	 
	20.	 	CALCULATIONS AND EVIDENCE OF DEBT
	 
	20.1.	 	The Bank shall maintain in accordance with its usual practice accounts evidencing the
amounts from time to time lent by and owing to it hereunder.
	 
	20.2.	 	In any legal action or Proceeding arising out of or in connection with this Agreement the
entries made in the accounts maintained pursuant to clause 20.1 above shall, in the absence of
manifest or proven error, be prima facie evidence of the existence and amounts of the
specified obligations of the Borrower.
	 
	20.3.	 	A certificate of the Bank as to: (a) the amount by which a sum payable to it hereunder is to
be increased under clause 9.1 above; or (b) the amount for the time being required to
indemnify it against any such cost, payment or liability as is mentioned in clause 10 above
shall, in the absence of manifest or proven error, be prima facie evidence of the existence
and amounts of the specified obligations of the Borrower.
	 
	21	 	ASSIGNMENTS AND TRANSFERS
	 
	21.1.	 	This Agreement shall be binding upon and enure to the benefit of each party hereto and its
or any subsequent permitted successors, transferees and permitted assigns.

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	21.2.	 	The Borrower shall not be entitled to assign or transfer all or any of its rights, benefits
and obligations under any of the Finance Documents.
	 
	21.3.	 	The Bank may, at any time, assign up to 50% of its rights, benefits and obligations under
the Finance Documents to any bank or financial institution of the kind listed in paragraphs
(3) and (4) of the first schedule to the Securities Law; provided that the 50% limitation
shall not apply to (i) sales by the Bank of participation interests or (ii) an Event of
Default has occurred and is outstanding.
	 
	21.4.	 	The Bank may at any time disclose to any actual or potential assignee or transferee or
subparticipant (or other party entering into contractual arrangements to assume risks in
relation to the Loans) in respect of this Agreement, such information about the the Borrower
as the Bank shall consider appropriate, provided that such entity has executed a
confidentiality undertaking in favour of the Borrower in a from reasonably satisfactory to the
Borrower. The Bank may also disclose any such information that it is required by law or the
position (guidelines) of the Examiner of Banks with respect to proper conduct of bank affairs
(“Hora’ot Nihul Bankai Takin”) or any interpretation of any of the aforegoing by the Examiner
of Banks (whether or not having the force of law but, if not having the force of law, which it
is the practice of banks in Israel to comply with) to the Bank of Israel, the Supervisor of
Banks and any person acting on their behalf or any other Governmental Body to which the Bank
is subject, upon receipt by the Bank of a demand for such information from any such person or
Governmental Body.
	 
	22	 	REMEDIES AND WAIVERS
	 
	22.1	 	Waiver
	 
	 	 	Without derogating from any of the other provisions herein contained, any waiver,
extension, concession, acquiescence, forbearance from acting (“the Waiver”) on the
part of the Bank with respect to the non-performance or partial performance or
improper performance of any of his undertakings under or in connection with this
Agreement, will not be regarded as any Waiver on the part of the Bank of any right,
but will be regarded as consent to the particular instance in which it was given. Any
Waiver granted by the Bank to a party to any bill that the Bank holds to secure the
payment of the Loan, will in no way affect its undertakings.
	 
	 	 	Without derogating from any of the other provisions herein contained, any modification
of its undertakings requires the prior written consent of the Bank to be received. Any
other consent, made orally or by way of Waiver or in any other manner not being in
writing, will not be regarded as a consent.
	 
	22.2	 	Remedies

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	 	 	The rights and remedies herein provided are cumulative and not exhaustive of any
rights or remedies provided by law.
	 
	23	 	NOTICES
	 
	23.1.	 	Notices in Writing
	 
	 	 	Notices to be given hereunder shall be in writing and may be
given personally, by facsimile or, if not available, as required by
clause 23.2 below. Any notice to be given hereunder must be given
during normal banking hours to the person and at the address
designated below.
	 
	23.2.	 	Addresses
	 
	 	 	Any other notices to be given hereunder shall be served on a
party by facsimile, personal delivery or mail to its address given
below or such other address as may from time to time be notified for
this purpose. Any notice so served shall be deemed to have been
served:

	 	(a)	 	if sent by facsimile, with a confirmed receipt of transmission from
the receiving machine, on the day on which transmitted;
	 
	 	(b)	 	in the case of a notice given by hand, on the day of actual
delivery; and
	 
	 	(c)	 	if by mail, on fifth day after the time at which such notice was
posted and in proving such service, it shall be sufficient to prove that the
notice was properly addressed and posted,

provided that a notice given in accordance with the above but received on a day which
is not a Business Day or after normal business hours in the place of receipt shall be
deemed to have been received on the next Business Day.

	23.2.1.	 	to the Borrower at:

Lumenis Ltd.

POB 240

Yokneam, Industrial Park Israel

Attention: Chief Executive Officer

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

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

Page 54 of 59

 

	 	 	 	 	 
	23.2.2.

	 	to Bank Hapoalim at:
	 	23 Menachem Begin Street
	 

	 	 	 	Migdal Levinstein
	 

	 	 	 	Facsimile: 972-3-5675699
	 

	 	 	 	Attention: Lea Landau
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Yigal Arnon & Co.
	 

	 	 	 	1 Azrieli Center
	 

	 	 	 	Tel-Aviv, 67021
	 

	 	 	 	Facsimile: (03) 608 7727
	 

	 	 	 	Attention: David H. Schapiro, Adv.

	24	 	AMENDMENTS
Any addition, variation, modification or amendment to this Agreement shall not be effective unless
any such addition, variation, modification or amendment is in writing and signed by the authorised
signatories of all of the parties to this Agreement.

	 
	25	 	COUNTERPARTS
This Agreement may be executed in any number of counterparts and all of such counterparts taken
together shall be deemed to constitute one and the same instrument.

	 
	26	 	 GOVERNING LAW AND JURISDICTION
This Agreement shall be governed by and shall be construed in accordance with Israeli law and the
courts of Tel-Aviv-Jaffa shall have exclusive jurisdiction to hear any matters, provided that the
Bank shall be entitled to sue the Borrower in any jurisdiction in which it has an office or holds
assets.

	 
	27	 	ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the
subject-matter hereof and supersedes any prior agreement, or arrangement amongst the parties. Any
addition or amendment to this Agreement shall not be effective unless in writing signed by the
authorised signatories of both the parties.

IN WITNESS WHEREOF, the parties have signed this Restructuring Agreement on the date first
mentioned above.

	 	 	 	 	 
	for:

	 	LUMENIS LTD.	 	 

Page 55 of 59

 

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	for:

	 	BANK HAPOALIM B.M.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 
	 

	 	 

	 	 

Page 56 of 59

 

Schedule 1.1.21

List of Existing Securities

	1.	 	Debenture dated April 24, 2001 for Floating Charge on Lumenis Ltd. and
Amendment to the Debenture dated August 18, 2003.

	2.	 	Debenture dated April 30, 2001– Fixed Charge on the right of Lumenis Ltd.to
receive monies under the Agreement between Lumenis Ltd. and Coherent Inc. dated
February 25, 2001.

	3.	 	UCC-1 on Lumenis Holdings Inc. dated May 3, 2001 file number 1037970.
	 
	4.	 	UCC-1 on Lumenis Inc. dated May 3, 2001 file number 200102016570.

	5.	 	Subsidiary Guarantee of Lumenis Inc. for the debt of Lumenis Holdings Inc.
and Lumenis Ltd.

	6.	 	Deed of Continuing Guarantee Unlimited in Amount of Lumenis Ltd. for the
debt of Lumenis Holdings Inc.

	7.	 	Subsidiary Guarantee of Lumenis Holdings Inc. for the debt of Lumenis Ltd.
dated March 26, 2002.

	8.	 	Pledge on the shares of Lumenis Luxembourg S.a.r.l. that are held by Laser
Industries Ltd. from June 28, 2001.

	9.	 	Deed of Continuing Guarantee unlimited in Amount of Lumenis (Italy) S.r.l
for the debt of Lumenis Holdings Inc. and Lumenis Ltd. dated July 26, 2001.

	10.	 	Charge on the Bank Accounts, Inventory, Equipment and Receivables of Lumenis
(Italy) S.r.l pursuant to the Security Agreement between Lumenis Italy S.r.l. and
Bank Hapoalim B.M. dated July 31, 2001.

	11.	 	Pledge on the Shares of Lumenis Japan Co. Ltd. that are held by Lumenis Ltd.
dated July 1, 2002.

	12.	 	Pledge on the Shares of Lumenis Japan Co. Ltd. that are held by Laser
Industries Ltd. dated July 1, 2002.

	13.	 	Pledge on the Shares of Lumenis Holdings Inc. that are held by Lumenis Ltd.
dated July 1, 2003.

	14.	 	Pledge on the Shares of Lumenis Inc. that are held by Lumenis Holdings Inc.
dated July 1, 2003.

Page 57 of 59

 

	15.	 	Deed of Continuing Guarantee Unlimited in Amount of Lumenis Ltd. for the
debt of Lumenis Inc. dated November 13, 2003.

	16.	 	Pledge on the Shares of Lumenis Holland BV. that are held by Laser
Industries Ltd. dated June 23, 2002.

	17.	 	Debenture on Laser Industries Ltd. dated 1990.

Page 58 of 59

 

Schedule 3.7

List of Schedules to be Completed by Closing

	1.	 	Schedule 1.1.12 – Business Targets Summary
	 
	2.	 	Schedule 1.1.21A – Agreed amendments to Existing Securities.
	 
	3.	 	Schedule 1.1.22A — Agreed amendment to Existing Debenture.
	 
	4.	 	Schedule 1.1.35 — List of the Intellectual Property Assets.
	 
	5.	 	Schedule 1.1.48(a) — Debenture of Laser Industries Ltd.
	 
	6.	 	Schedule 1.1.48(b) — Guarantee of Laser Industries Ltd.
	 
	7.	 	Schedule 1.1.48(c) — Pledge on the shares of Laser Industries Ltd. held by
the Borrower and shares of Lumenis (Germany), Lumenis (France), Lumenis (UK) and
Lumenis (HK) held by Laser Industries Ltd.
	 
	8.	 	Schedule 1.1.48(d) — Pledge on the assets of Lumenis (Germany), Lumenis
(France), Lumenis (UK) and Lumenis (HK).
	 
	9.	 	Schedule 1.1.48(e) — Guarantees from the Lumenis (Germany), Lumenis
(France), Lumenis (UK) and Lumenis (HK).
	 
	10.	 	Schedule 1.1.48(f) — Specific charge on the Marks, Patents and Copyrights.

	 
	11.	 	Schedule 3.3 – Release.
	 
	12.	 	Schedule 3.4 — Zellermeyer, Pellossof & Co. Legal Opinion.

Page 59 of 59exv4w22

 

Exhibit
4.22

Execution Copy

AMENDMENT NO. 1 TO RESTRUCTURING AGREEMENT

This amendment no. 1 (the “Amendment”) to the Restructuring Agreement is dated the 5th
day of December 2006 between:

	1.	 	Lumenis Ltd., a company incorporated under the laws of Israel, whose registered office is at
Industrial Zone, Yoqneam, Israel (the “Borrower”); and

2. Bank Hapoalim B.M. (the “Bank”)

WHEREAS:

	A.	 	On 30th September 2006, the Borrower and the Bank entered into a Restructuring
Agreement (the “Restructuring Agreement”) pursuant to which the Borrower and the Bank agreed
to restructure the Prior Outstanding Debt of the Borrower and subsidiaries of the Borrower
into a single Loan (as defined therein) and to set out the terms and conditions applicable
with respect to the Loan.

	B.	 	The Parties wish to amend the Restructuring Agreement as set forth herein.

THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. DEFINITIONS AND INTERPRETATION

	 	1.1	 	In this Amendment, capitalised terms that are used but not defined herein shall
have the meanings ascribed to such terms in the Restructuring Agreement.
	 
	 	1.2	 	Words and defined terms denoting the singular number include the plural and vice
versa and the use of any gender shall be applicable to all genders.
	 
	 	1.3	 	The paragraph headings are for the sake of convenience only and shall not affect
the interpretation of this Amendment.
	 
	 	1.4	 	The recitals, schedules, appendices, annexes and exhibits hereto form an integral
part of this Amendment.

	2.	 	AMENDMENTS
	 
	 	 	The following amendments shall be made to the Restructuring Agreement:

	 	2.1	 	Clause 1.1.23 shall me amended as follows:
	 
	 	 	 	“Final Maturity Date” means September 30, 2013.
	 
	 	2.2	 	Clause 1.1.48 shall be amended as follows:

	 	(a)	 	The first sentence of Clause 1.1.48 shall be replaced with the
following:
	 
	 	 	 	“New Securities” means the following securities which (i) with respect to the
securities listed in sub-clause (a), (b), (c) and the securities of the Borrower
and/or Israeli Subsidiaries of the Borrower included in sub-clauses (f) and (g),
the Borrower is required to perfect by no later than thirty (30) days following the

 

2

	 	 	 	Closing Date; and (ii) with respect to sub-clauses (d), (e) and the securities of
foreign Subsidiaries of the Borrower included in sub-clauses (f) and (g), the
Borrower is required to use reasonable commercial efforts to perfect by no later
than April 30, 2007”;

	 	(b)	 	Clause 1.1.48(a) shall be amended and restated as follows:
	 
	 	 	 	“a debenture of Laser Industries Ltd. in the form to be agreed and attached as an
integral part of this Agreement as Schedule 1.1.48(a) hereof prior to thirty (30)
days from the Closing Date;
	 
	 	(c)	 	Clause 1.1.48(b) shall be amended and restated as follows:
	 
	 	 	 	“a guarantee of Laser Industries Ltd. in the form to be agreed and attached as an
integral part of this Agreement as Schedule 1.1.48(b) prior to thirty (30) days
from the Closing Date;
	 
	 	(d)	 	In Clause 1.1.48(c) the words “prior to the Closing Date and
included as Schedule 1.1.48(c) hereof” shall be replaced with “ and attached as
an integral part of this Agreement as this Agreement as Schedule 1.1.48(c) prior
to thirty (30) days from the Closing Date ”;
	 
	 	(e)	 	In Clause 1.1.48(d) the following words shall be deleted: “in the
form to be agreed prior to the Closing Date and included” and replaced with the
following words: “to be attached as an integral part of this Agreement by no
later than April 30, 2007”;
	 
	 	(f)	 	In Clause 1.1.48(e) the following words shall be deleted: “in the
form to be agreed prior to the Closing Date and” and replaced with the following
words: “to be attached as an integral part of this Agreement by no later than
April 30, 2007”; and
	 
	 	(g)	 	In Clause 1.1.48(f):

	 	(i)	 	the words “in the form to be agreed prior to the Closing Date and” shall be
deleted and replaced with the following words: “to be attached as an integral part
of this Agreement by no later than April 30, 2007”; and
	 
	 	(ii)	 	at the end of Clause 1.1.48 the following words shall be added:
	 
	 	“Notwithstanding anything stated in this Clause 1.1.48(f), the form of the
specific charge on the Marks, Patents and Copyrights that are held by the Borrower
and/or any of its Subsidiaries located in Israel shall be agreed upon and attached
as an integral part of this Agreement as Schedule 1.1.48(f)(i) and perfected by no
later than thirty (30) days from the Closing Date.”

	 	(h)	 	In Clause 1.1.48(g) the following words shall be added:
	 
	 	 	 	” in Clauses 1.1.48 (a), (b) (c) and the securities of the Borrower and/or Israeli
Subsidiaries of the Borrower included in sub-clause (f) shall be provided and
attached as an integral part of this Agreement as Schedule 1.1.48(g)(i) hereof by

 

3

	 	 	 	no later than thirty (30) days from the Closing Date, and all acknowledgements and
consents required to be delivered pursuant to the documents referred to above in
sub-clauses (d), (e) and the securities of foreign Subsidiaries of the Borrower
included in sub-clause (f), in respect of which the Borrower is required to use
reasonable commercial efforts to ensure that such documents shall be provided and
attached as an integral part of this Agreement as Schedule 1.1.48(g)(ii) hereof by
no later than April 30, 2007”.

	 	2.3	 	Clause 3.3 shall be amended as follows: the following words shall be added to the
end of Clause 3.3: “The Borrower shall ensure that Lumenis Holdings, Inc. adopts the
required corporate resolutions to approve the Release included in Schedule 3.3 and to
authorize the signature of the individuals signing thereon by the Closing Date.”
	 
	 	2.4	 	In Clause 3.16 the following words shall be added to the end of Clause 3.16: “in
the form to be agreed upon prior to the Closing Date and included as Schedule 3.16 hereto
and duly executed by no later than thirty (30) days from the Closing Date. The Borrower
shall ensure that each of the Subsidiaries that are parties to the written consents
included in Schedule 3.16 adopts the required corporate resolutions to approve such
respective written consents and to authorize the signature of the individuals signing
thereon by no later than thirty (30) days from the Closing Date.”
	 
	 	2.5	 	Schedule 3.7 of the Restructuring Agreement shall be amended as follows:

	 	(a)	 	Items 2, 5, 6, 7, 8, 9 and 10 listed in Schedule 3.7 shall be
deleted;
	 
	 	(b)	 	Item 13 shall be added to Schedule 3.7 as follows: “Schedule 3.16 –
Written Consent of each of Lumenis Holdings, Inc., Lumenis, Inc., Lumenis (Italy)
Sarl and Laser Industries Ltd.”; and
	 
	 	(c)	 	The form of items 1, 3, 4, 11, 12 and 13 of Schedule 3.7 are
attached as Annex A, B, C, D, E,F and G of this Amendment 1.

	 	2.6	 	Clause 14.10 shall be deleted and the following new provision shall be inserted in
its place as follows:

	 	14.10	 	Change of Holdings

Save with the prior written consent of the Bank (such consent not to be unreasonably
withheld), as a result of a single transaction or series of transactions,]

	 	(a)	 	LM Partners L.P. (together with any person or entity
that qualifies as a Permitted Transferee, as defined below)
(collectively “LM”) shall hold less than 29,844,871 shares of the
Borrower (as adjusted for any stock split, reverse stock split, stock
dividend or any recapitalization event) ; provided that this clause (a)
shall expire upon the earlier of the (x) date that the outstanding
principal amount of the Loan shall not exceed $40 million and the
payment of interest and principal of the Loan was made in accordance
with its terms or (y) expiration of five years from the Closing Date
provided the payment of interest and principal of the Loan was made in
accordance with its terms; or
	 
	 	(b)	 	none of the Promoters is Actively Involved in the
Borrower (as defined below).

 

4

For the purposes of this clause, (i) a Permitted Transferee shall mean any entity
which controls, is controlled by, or is under common control with the Promoters in
each case, either directly or indirectly; (ii) Promoters shall mean Harel Beit On,
Avi Zeevi and Shlomo Dovrat and (iii) Actively Involved in the Borrower shall mean
that at least one of the Promoters shall be serving on the Board of Directors of the
Borrower and, solely in its capacity as a director, shall, in addition to
participation in board meetings, be involved in assisting or guiding the management
of the Borrower.

This section 14.10 shall expire upon the earlier of the (x) date that the
outstanding principal amount of the Loan shall not exceed $24 million and the
payment of interest and principal of the Loan was made in accordance with its terms
or (y) expiration of 6 years after the Closing Date provided the payment of interest
and principal of the Loan was made in accordance with its terms.

	 	 	The Borrower and the Bank hereby agree that the Restructuring Agreement shall be amended in
accordance with this Amendment. Other than as expressly amended as set out herein, the
provisions of the Restructuring Agreement shall remain unchanged and in full force and effect
in accordance with the terms thereof.
	 
	3.	 	MISCELLANEOUS

	 	3.1	 	This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.
	 
	 	3.2	 	This Amendment shall be construed in accordance with the laws of the State of
Israel. The exclusive place of jurisdiction for the purpose of this Amendment is hereby
established as the competent court of law in Israel situated in Tel Aviv-Jaffa.
	 
	 	3.3	 	If a provision of this Amendment is or becomes illegal, invalid or unenforceable in
any jurisdiction, that shall not affect the validity or enforceability in that
jurisdiction of any other provision hereof or the validity or enforceability in other
jurisdictions of that or any other provision hereof.
	 
	 	 	 	Where provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by each party to the full
extent permitted so that this Amendment shall be deemed valid and binding agreements,
enforceable in accordance with its terms.
	 
	 	3.4	 	Nothing in this Amendment shall create or confer upon any person or entity, other
than the parties hereto or their respective successors and permitted assigns, any rights,
remedies, obligations or liabilities.

 

5

IN WITNESS WHEREOF, the parties have signed this Amendment on the date first mentioned above.

	 	 	 	 	 
	for:

	 	LUMENIS LTD.
	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	for:

	 	BANK HAPOALIM B.M.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

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