Document:

exv4w29

 

Exhibit
4.29

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

			
	 	 	 
	Warrant no. 8
	 	Number of Shares: 10,639,875
	December 5, 2006
	 	(subject to adjustment)

 

WARRANT TO PURCHASE ORDINARY SHARES

OF

LUMENIS LTD.

 

     FOR VALUE RECEIVED, LM Partners L.P. (together with its successors, transferees and
assigns, the “Holder”) is entitled to purchase subject to the provisions of this Warrant (this
“Warrant”) from Lumenis Ltd., an Israeli company (“Company”), during the term of this Warrant, at a
purchase price per share equal to $1.1794 (as adjusted from time to time pursuant to the terms of
this Warrant), 10,639,875Ordinary Shares, par value NIS 0.1 per share, of the Company (the “Company
Shares”) (as adjusted from time to time pursuant to the terms of this Warrant). The shares
purchasable upon exercise of this Warrant and the purchase price per share, as adjusted from time
to time pursuant to the terms of this Warrant, shall be referred to herein as the “Warrant Shares”
and the “Exercise Price”, respectively.

	1.	 	Exercise.

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

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

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

X =
Y * (A — B)

A

					
	 	  Where:
	 	 	X = the number of Warrant Shares to be issued to the Holder.
	 
	 	 	 	 	Y = the number
of Warrant Shares, as adjusted to the date of such
calculation, underlying the portion of the Warrant
being exercised.

	 
	 	 	 	 	A= the Fair
Market Value (as defined below) of one Warrant Share.
	 
	 	 	 	 	B = the
Exercise Price, as adjusted to the date of such
calculation.

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

	 	      1.3.2.1.	 	If the Company Shares are listed on a national securities
exchange or are quoted on the National Association of Securities
Dealers, Inc. Automated Quotation/National Market System

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	 	 	 	(NASDAQ/NMS), then the Fair Market Value shall be the average
closing or last sale price, respectively, reported for the five
(5) trading days prior to the exercise date.
	 
	 	1.3.2.2.	 	If the Company Shares are not listed on a national securities
exchange or quoted on NASDAQ/NMS, but are traded in any
over-the-counter market, then the Fair Market Value shall be the
last sale price of the Company Shares reported for the five (5)
trading days immediately preceding the exercise date, and if no
such sale price is reported, the average of the closing bid and
asked prices as reported for the five (5) trading days prior to
the exercise date. If the Company Shares are not publicly traded,
then the Fair Market Value shall be the fair market value of a
Company Share as determined by an Appointed Expert (as defined in
that certain Purchase Agreement, dated September 30, 2006 among
the Company, the Holder and the other parties named therein (the
“Purchase Agreement”)), unless the Company is at such time subject
to a Liquidity Event (as defined below), in

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

	 	1.4.	 	Delivery to Holder. As soon as practicable after the exercise of this
Warrant in whole or in part, and in any event within ten (10) days

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	 	 	 	thereafter, the
Company at its expense will cause to be issued in the name of, and delivered to, the
Holder, or as such Holder may direct:

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

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

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

	 	2.1.	 	Purchase Agreement Adjustments.

	 	2.1.1.	 	At any time following the date hereof, if and whenever additional Company
Shares are to be issued to the Original Holder (as define below) pursuant to
Article X of the Purchase Agreement, (each such event, the “Trigger
Issuance”), then in each such case the then-existing Exercise Price shall
automatically be reduced, as of the close of business on the effective date
of the Trigger Issuance, to a price, rounded to 4 decimal points, calculated
as follows:

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	 	 	 	(capitalized terms used but not otherwise defined herein shall have the
meaning ascribed to them in the Purchase Agreement)
	 
	 	 	 	110% multiplied by a fraction: (i) the numerator of which equals to the
aggregate amount of the purchase price paid by the Original Holder at
the Closing; and (ii) the denominator of which equals to the number of
Purchased Shares actually issued to the Original Holder at the Closing
plus any and all additional Company Shares that were or should have
been previously issued to the Original Holder pursuant to Article X of
the Purchase Agreement less any Redeemable A Shares, Redeemable
B Shares and/or Redeemable C Shares that were initially issued to the
Original Holder and were actually redeemed by the Company in accordance
with the provisions of the Purchase Agreement.
	 
	 	 	 	provided, however, that in no event shall the Exercise Price after
giving effect to such Trigger Issuance be greater than the Exercise
Price in effect prior to such Trigger Issuance.
	 
	 	2.1.2.	 	At any time following the date hereof, if and whenever any Additional
Warrants (as defined in the Purchase Agreement) are exercised, in whole or in
part, by the Original Holder thereof pursuant to their terms (each such
event, the “Exercise Event”), then in each such case the following adjustment
shall occur:
	 
	 	 	 	The number of Warrant Shares shall automatically be increased, as of
the close of business on the effective date of the Exercise Event, by
an additional number of Warrant Shares, rounded to the nearest whole
number, calculated as follows:
	 
	 	 	 	The product of: (i) the number of Warrant Shares (as adjusted from time
to time) purchasable upon exercise of this Warrant immediately prior to
the Exercise Event; multiplied by (ii) the aggregate exercise price
paid for the exercise of the Additional Warrants by the Original Holder
in such exercise divided by the aggregate amount of the purchase price
paid at the Closing by the Original Holder.
	 
	 	 	 	provided, however, that in no event shall the number of Warrant Shares
after giving effect to such Trigger Issuance be less than the number of
Warrant Shares in effect prior to such Trigger Issuance.
	 
	 	2.1.3.	 	The “Original Holder” shall mean the Holder, and if the Holder is a
successor, transferee, assignee or designee, then the Investor to which this
Warrant was issued at Closing and any of its successors, transferees,
assignees or designees (including the Holder).

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	 	2.2.	 	Stock Splits, Dividends and Combinations. If the outstanding Company
Shares shall be subdivided into a greater number of shares or a dividend or other
distribution payable in additional shares shall be paid in respect of Common Shares,
the Exercise Price in effect immediately prior to such subdivision or at the record
date of such dividend shall simultaneously with the effectiveness of such subdivision
or immediately after the record date of such dividend be proportionately reduced. If
outstanding Company Shares shall be combined into a smaller number of shares, the
Exercise Price in effect immediately prior to such combination shall, simultaneously
with the effectiveness of such combination be proportionately increased. When any
adjustment is required to be made in the Exercise Price, the number of Warrant Shares
purchasable upon the exercise of this Warrant shall be changed to the number determined
by dividing (i) an amount equal to the number of shares issuable upon the exercise of
this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in
effect immediately prior to such adjustment, by (ii) the Exercise Price in effect
immediately after such adjustment.
	 
	 	2.3.	 	Reclassification, Etc. In case of any reclassification or change of the
outstanding securities of the Company or of any reorganization of the Company (or any
other corporation the stock or securities of which are at the time receivable upon the
exercise of this Warrant) or any similar corporate reorganization on or after the date
hereof, then and in each such case the holder of this Warrant, upon the exercise hereof
at any time after the consummation of such reclassification, change, reorganization,
merger or conveyance, shall be entitled to receive, in lieu of the stock or other
securities and property receivable upon the exercise hereof prior to such consummation,
the stock or other securities or property to which such holder would have been entitled
upon such consummation if such holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment as provided in Section 2; and in each such
case, the terms of this Section 2 shall be applicable to the shares of stock or other
securities properly receivable upon the exercise of this Warrant after such
consummation.
	 
	 	2.4.	 	Other Transactions. In the event that the Company shall issue shares
to its shareholders as a result of a split-off, spin-off or the like, then the Company
shall only complete such issuance or other action if, as part thereof, allowance is
made to protect the economic interest of the Holder either by increasing the number of
Warrant Shares or by procuring that the Holder shall be entitled, on economically
proportionate terms, to acquire additional shares of the spun-off or split-off
entities. Upon each adjustment in the number or kind of Warrant Shares purchasable
hereunder, the Exercise Price shall be proportionately increased or decreased, as the
case may be, in a manner that is the inverse of the manner in which the number of
Warrant Shares purchasable hereunder shall be adjusted.
	 
	 	2.5.	 	Notice of Adjustments. Whenever the Exercise Price or the number of
Warrant Shares purchasable hereunder shall be adjusted pursuant to this Section 2, the
Company shall prepare a certificate

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	 	 	 	signed by an executive officer of the Company
setting forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, the Exercise Price
and the number of Warrant Shares purchasable hereunder after giving effect to such
adjustment, and shall cause copies of such certificate to be delivered to the Holder.
	 
	 	2.6.	 	Subsequent Issuances and Rights. Other than Company Shares issued
pursuant to the Purchase Agreement, the Company shall not issue or grant any shares,
securities or rights of any kind conferring upon or granting to the holder thereof any
rights that are derived, arising from or triggered by, or whose terms shall be
modified, accelerated or give rise to any benefits or privileges as a result of, the
implementation of the adjustment provision contained in Section 2.1 hereof.

	3.	 	Investment Representations.

	 	3.1.	 	The Holder is knowledgeable, sophisticated and experienced in making, and is
qualified to make, decisions with respect to investments in shares representing an
investment decision like that involved in the purchase of this Warrant and the Warrant
Shares (the “Purchased Securities”), without limitation of the representations and
warranties included herein and in the Purchase Agreement.
	 
	 	3.2.	 	The Holder is acquiring the Purchased Securities in the ordinary course of its
business and for its own account for investment only and with no present intention of
distributing any of such Purchased Securities and does not have any current arrangement
or understanding with any other persons regarding the distribution of such securities
(this representation and warranty not limiting the Holder’s right to sell or distribute
in compliance with the Securities Act and the rules and regulations thereunder);
nothing contained herein shall be deemed a representation or warranty by the Holder to
hold the Purchased Securities for any period of time;
	 
	 	3.3.	 	The Holder will not, directly or indirectly, offer, sell, pledge, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of) any of the Purchased Securities, nor will the Holder engage in any
short sale that results in a disposition of any of the Purchased Securities by the
Holder, except in compliance with the Securities Act and the rules and regulations
thereunder and any applicable state securities laws; and
	 
	 	3.4.	 	The Holder is an “accredited investor” within the meaning of Rule 501(a)
promulgated under the Securities Act. Neither such inquiries nor any other due
diligence investigation conducted by the Holder shall modify, limit or otherwise affect
the Holder’s right to rely on the Company’s representations and warranties contained
herein or in the Purchase Agreement.
	 
	 	3.5.	 	The Holder understands that its investment in the Purchased Securities involves
a significant degree of risk, including a risk of

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	 	 	 	total loss of Holder’s investment.
The Holder understands that no representation is being made as to the future value or
market price of the Company Shares. The Holder has the knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of
an investment in the Purchased Securities and has the ability to bear the economic
risks of an investment in the Purchased Securities.
	 
	 	3.6.	 	The Holder understands that, until all of the applicable provisions of Section
3.7 hereof are satisfied, any certificates representing the Purchased Securities will
bear a restrictive legend in substantially the following form:
	 
	 	 	 	“THE SECURITIES EVIDENCED BY THIS CERTIFICATE (AND ANY SECURITIES THAT MAY BE
ISSUED UPON EXERCISE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE) HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE
SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ALL
APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS, AND IN THE CASE
OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(k),
PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO
THE AVAILABILITY OF SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”
	 
	 	3.7.	 	Promptly following the earlier of (i) effectiveness of a registration statement
under the Securities Act with respect to the sale of Purchased Securities or (ii) Rule
144(k) becoming available, the Company shall (A) deliver to the transfer agent for the
Company Shares (the “Transfer Agent”) irrevocable instructions that the Transfer Agent
shall reissue a certificate representing the Warrant Shares without legends upon
receipt by such Transfer Agent of: (a) the legended certificates for such Warrant
Shares; and (b) either (1) a customary written representation by the Holder that Rule
144(k) applies to the Warrant Shares represented thereby or (2) a written statement by
the Company that the Holder may sell the Warrant Shares represented thereby in
accordance with the Plan of Distribution contained in a registration statement that was
declared effective under the Securities Act (the date on which the Transfer Agent
receives all of the items listed in clauses (a), and (b) above, the “Legend Removal
Date”), and (B) if required by the Transfer Agent, cause its counsel to deliver to the
Transfer Agent one or more opinions to the effect that the removal of such legends in
such circumstances may be effected under the Securities Act. From and after the Legend
Removal Date, upon the Holder’s

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	 	 	 	written request, the Company shall promptly cause
certificates evidencing the Holder’s Warrant Shares referred to in such written request
to be replaced with certificates which do not bear such restrictive legends, and
Warrant Shares subsequently issued upon due exercise of the Warrants shall not bear
such restrictive legends, provided the provisions of clauses (a) and (b) above, as
applicable, are satisfied with respect to such Warrant Shares.

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

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

	6.	 	No Impairment. The Company will not, by amendment of its charter documents or through any
reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, sale
of assets, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder, or
impair the economic interest of the Holder, but will at all times in good faith assist in the
carrying out of all the provisions hereof and in taking of all such actions and making all
such adjustments as may be necessary or appropriate in order to protect the rights and the
economic interests of the Holder against impairment.

	7.	 	Termination. This Warrant and the right to purchase securities upon exercise hereof shall
terminate on 5:00 P.M. Eastern Time on fifth anniversary of the Closing Date of the Purchase
Agreement.

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	8.	 	Notices of Certain Transactions. In case:

	 	8.1.	 	the Company shall take a record of the holders of its Company Shares (or other
shares or securities at the time deliverable upon the exercise of this Warrant) for the
purpose of entitling or enabling them to receive any dividend or other distribution, or
to receive any right to subscribe for or purchase any shares of any class or any other
securities, or to receive any other right, to subscribe for or purchase any shares of
any class or any other securities, or to receive any other right, or
	 
	 	8.2.	 	of any capital reorganization of the Company, any reclassification of the share
capital of the Company, any Liquidity Event, or
	 
	 	8.3.	 	of the voluntary or involuntary dissolution, liquidation or winding-up of the
Company, or
	 
	 	8.4.	 	of a public offering of the Company Shares pursuant to an effective
registration statement under the Securities Act or the equivalent actions under the
laws of another jurisdiction,

then, and in each such case, the Company will deliver to the Holder a notice
specifying, as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and character of
such dividend, distribution or right, or (ii) the estimated effective date on which such
reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up is
to take place, and the time, if any is to be fixed, as of which the holders of record of
Company Shares (or such other shares or securities at the time deliverable upon such
reorganization, reclassification, Liquidity Event, dissolution, liquidation or winding up)
are to be determined. Such notice shall be delivered ten (10) days prior to the record date
or estimated effective date for the event specified in such notice.

	9.	 	Reservation of Shares. The Company will at all times reserve and keep available, solely for
the issuance and delivery upon the exercise of this Warrant, such Warrant Shares and other
shares, securities and property, as from time to time shall be issuable upon the exercise of
this Warrant.
	 
	10.	 	Registration Rights.

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

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	 	 	 	and the Warrant
Shares shall be considered “Registrable Securities”, all as defined in the Registration
Rights Agreement.

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

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

	 	 	 
	       12.1.     If to Holder:

	 	to the address set forth on the signature page
	       12.2.     If to Company:

	 	Lumenis Ltd.
	 

	 	POB 240
	 

	 	Yokneam, Industrial Park Israel
	 

	 	Attention:          Chief Executive Officer
	 

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

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

	 	 	Each of the above addressees may change its address for purposes of this Section by giving to
the other addressees notice of such new address in conformance with this paragraph.
	 
	13.	 	No Rights as Shareholder. The Holder shall not have any rights as a shareholder of the
Company with regard to the Warrant Shares prior to the exercise of this Warrant, and then with
respect to such Warrant Shares purchasable upon such exercise.
	 
	14.	 	No Fractional Interest. No fractional shares will be issued in connection with any exercise
hereunder, but in lieu of such fractional shares which would otherwise be issuable the number
of shares shall rounded to the nearest whole number.
	 
	15.	 	Entire Agreement. This Warrant constitutes the entire agreement between the parties hereto
with regard to the subject matters hereof, and supercedes any prior communications, agreements
and/or understandings between the parties hereto with regard to the subject matters hereof.
	 
	16.	 	Amendment or Waiver. This Warrant may be amended only by a written instrument signed by the
Company and the Holder. Any term of this Warrant may be waived only

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	 	 	by an instrument in
writing signed by the party against which enforcement of the waiver is sought.
	 
	17.	 	Successors. All the covenants and provisions hereof by or for the benefit of the Holder shall
bind and inure to the benefit of its respective successors and assigns hereunder.
	 
	18.	 	Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance
with the laws of the State of Israel, without giving effect to principles of conflicts of law.
The parties hereby submit any dispute arising under or in relation to this Warrant to the
exclusive jurisdiction of the competent court for the District of Tel Aviv-Jaffa, other than
with respect to the matters set forth in Section 1.3.2.2 which, in accordance with such
Section, are to be referred to arbitration.
	 
	19.	 	Arbitration Pursuant to Section 1.3.2.2.

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

Execution Copy

 

- 14 -

	 	19.6.	 	For the purpose of this Section “Business Day” shall mean each day that is not
a Friday, Saturday or holiday on which banking institutions located in Tel Aviv, Israel
are authorized or obligated by law or executive order to close.

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

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

- Signature page follows -

Execution Copy

 

- 15 -

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

	 	 	 	 	 	 	 
	 	 	LUMENIS LTD.	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 
	 	 	 
	 

	 	Title:	 	 	 	 

Acknowledged and Agreed to:

LM Partners L.P.

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

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

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title: Authorized Signatory	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title: Authorized Signatory	 	 
	 
	Address:           16 Abba Even Avenue	 	 
	 

	 	              Herzliya, Israel	 	 
	Telephone No: +972-(0)9-957-8595	 	 
	Facsimile No.:   +972-(0)9-957-8770	 	 

Acknowledged and Agreed to:

With a mandatory copy to:

Meitar Liquornik Geva & Leshem Brandwein

16 Abba Hillel Road Ramat Gan 52506 Israel

Attention:           Dan Shamgar, Advocate

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

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

Herzog, Fox & Neeman

Asia House, 4 Weizmann Street

Tel-Aviv 64239 Israel

Attention:           Alon Sahar, Advocate

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

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

Execution Copy

 

- 16 -

NOTICE OF EXERCISE

			
	 	 	 
	To: Lumenis Ltd.
	 	Date: [ ]

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

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

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

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

Name:

Address:

ID or Social Security No.:

	 	 	 	 	 	 	 
	 

(Date)

	 	 
	 	 

(Print Name)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 

	 	 
	 

	 	 	 	(Signature)	 	 

Execution Copyexv10w29

 

Exhibit 10.29

SEVERANCE AND RETENTION AGREEMENT

     SEVERANCE AND RETENTION AGREEMENT (this “Agreement”) dated as of December 19, 2005, by
and between CSK Auto, Inc., an Arizona corporation (the “Company”), and Louis Mancini (the
“Executive”).

R E C I T A L S

     The Company considers it essential and in the best interest of its stockholders to foster the
continuous employment of key management personnel. The Company further recognizes that, as in the
case of many publicly held corporations, the possibility of a change of control of the Company may
exist and that such possibility, and the uncertainty and questions which it may raise among
management, may create concerns for, and the distraction of, management personnel and may even
result in departures which might have otherwise not have taken place, all to the detriment of the
Company and its stockholders. The Company now desires to take steps to reinforce and encourage the
continued attention and dedication of members of the Company’s management, including the Executive,
to their assigned duties without distraction in the face of potentially disturbing circumstances
arising from the possibility of a Change of Control (as defined below) of the Company.

A G R E E M E N T

     1. Definitions

          1.1. An “Affiliate” of the Company is an entity controlling, controlled by or under
common control with the Company as defined in Rule 405 of the Securities and Exchange Commission
under the Securities Act of 1933, as amended.

          1.2. “Base Salary” shall mean the Executive’s regular annual rate of base pay as of
the date in question.

          1.3. “Cause” shall mean that Executive: (i) has been convicted of a felony, or has
entered a plea of guilty or nolo contendere to a felony; (ii) has committed an act of fraud
involving dishonesty for personal gain which is injurious to the Company or any of its
subsidiaries; (iii) has willfully and continually refused to substantially perform his duties with
the Company or any of its subsidiaries (other than any such refusal resulting from his incapacity
due to mental illness or physical illness or injury), after a demand for substantial performance
has been delivered to the Executive by the Board of Directors of the Company, where such demand
reasonably identifies the manner in which the Board of Directors believes that the Executive has
refused to substantially perform his duties and the passage of a reasonable period of time as
specified by the Board of Directors for Executive to comply with such demand; or (iv) has willfully
engaged in gross misconduct injurious to the Company or any of its subsidiaries.

          1.4. A “Change of Control” shall be deemed to have taken place if, after the date
hereof:

 

     (a) any person, corporation, or other entity or group, including any “group” as defined
in Section 13(d)(3) of the Securities Exchange Act of 1934, other than any employee benefit
plan then maintained by CSK Auto Corporation (“Parent”), becomes the beneficial
owner of shares of Parent having 50% or more of the total number of votes that may be cast
for the election of directors of Parent (including any shares owned by such beneficial owner
or members of its “group” as of the date hereof);

     (b) as the result of, or in connection with, any contested election for the Board of
Directors of Parent, or any tender or exchange offer, merger or other business combination
or sale of assets, or any combination of the foregoing (a “Transaction”), the persons who
were directors of Parent before the Transaction shall cease to constitute a majority of the
Board of Directors of Parent or any successor to Parent or its assets;

     (c) at any time Parent shall consolidate or merge with any other Person and Parent
shall not be the continuing or surviving corporation, or any Person shall consolidate or
merge with Parent and Parent shall be the continuing or surviving corporation, and in
connection therewith, all or part of the outstanding Parent stock shall be changed into or
exchanged for stock or other securities of any other Person or cash or any other property;

     (d) Parent shall be a party to a statutory share exchange with any other Person after
which Parent is a subsidiary of any other Person; or

     (e) Parent shall sell or otherwise transfer all or substantially all of the assets or
earning power of Parent and its subsidiaries (taken as a whole) to any Person or Persons.

          1.5. The “Change of Control Date” shall mean the date immediately prior to the
effectiveness of the Change of Control.

          1.6. The Executive shall have “Good Reason” to terminate employment if:

     (a) the Executive is not elected, reelected, or otherwise continued in the office of
the Company or any of its subsidiaries or the continuing or surviving corporation in the
case of a Change of Control that he held immediately prior to the Change of Control Date, or
he is removed as a member of the Board of Directors of Parent or the continuing or surviving
corporation in the case of a Change of Control if the Executive was a director immediately
prior to the Change of Control Date;

     (b) the Executive’s duties, responsibilities or authority are materially reduced or
diminished without the Executive’s consent;

     (c) the Executive’s compensation or benefits are reduced;

     (d) the Company reduces the potential earnings of the Executive under any
performance-based bonus or incentive plan of the Company;

2

 

     (e) the Company requires that the Executive’s employment be based at a location outside
a 50 mile radius from the location of the Executive’s employment location
as of the date hereof or the Executive’s employment location immediately prior to a
Change of Control Date, as the case may be;

     (f) any purchaser, assign, continuing or surviving corporation, or successor of the
Company or its business or assets (whether by acquisition, merger, liquidation,
consolidation, reorganization, sale or transfer of assets or business, or otherwise) fails
or refuses to expressly assume in writing this Agreement and all of the duties and
obligations of the Company hereunder pursuant to Section 9 hereof; or

     (g) the Company breaches any of the material provisions of this Agreement or the
Executive’s employment agreement, if any.

          Notwithstanding the foregoing, none of the events referred to in (a) through (g) above shall
constitute Good Reason unless the Executive gives written notice to the Company of his election to
terminate his employment for such reason within 90 days after he becomes aware of the existence of
facts or circumstances constituting Good Reason. Such notice shall set forth in reasonable detail
the facts and circumstances constituting the Good Reason and, if the Good Reason is a curable
condition, shall provide the Company with 30 days to cure such condition. The notice shall also
specify the date when the termination of employment is to become effective (if the Good Reason is
not curable or is curable, but not cured within the 30 days), which date shall be not less than 60
days and not more than 180 days from the date the notice is given.

          1.7. “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
Securities Exchange Act of 1934 and used in Sections 13(d) and 14(d) thereof, including a “group”
as defined in Section 13(d).

          1.8. “Target Bonus” shall mean the target bonus (100% level) established for the
Executive for the year in question under the Company’s “Annual Incentive Plan” or “Performance Unit
Plan,” as applicable.

     2. Retention Bonus. If (i) the Executive remains continuously employed by the Company
or its Affiliates or the continuing or surviving corporation in the case of Section 1.4 hereof on a
full-time basis through the date that is six months following a Change of Control Date or (ii) the
Executive’s employment with the Company is terminated (a) by the Company without Cause or (b) by
the Executive for Good Reason, in each case before the date that is six months following a Change
of Control Date, the Company shall pay to the Executive a gross lump sum cash amount equal to three
(3) months of the Executive’s then current Base Salary (the “Retention Bonus”). In
accordance with the preceding sentence, such payments, if any, shall be made to the Executive
within 10 days following the date that is six months following a Change of Control Date. Any
payment of the Retention Bonus shall be paid net of any applicable withholding required under
federal, state or local law.

3

 

3. Change of Control Severance Benefits

          3.1. Eligibility for Change of Control Severance Benefits. The Executive shall be
eligible for the benefits described in Section 3.2 (the “Change of Control Severance
Benefits”)
if there has been a Change of Control and during the twelve (12) month period commencing on
the Change of Control Date (the “Post Change of Control Period”), the Executive’s
employment with the Company is terminated (i) by the Company without Cause or (ii) by the Executive
for Good Reason.

          3.2. Severance Benefit. Upon satisfaction of the terms and conditions of this
Agreement, and subject to Section 6, the Executive shall be entitled to the following Change of
Control Severance Benefits:

     (a) Cash Payments. The Executive shall be entitled to receive an amount in
cash equal to the sum of:

     (i) 100% of the greater of (x) the sum of the Executive’s Base Salary, benefits
and Target Bonus, in each case as in effect upon the date Executive’s employment was
terminated, or (y) the sum of the Executive’s Base Salary, benefits and Target
Bonus, in each case as in effect on the Change of Control Date; and

     (ii) accrued and unused vacation.

The payment shall be made in equal monthly installments over a twelve (12) month period and
shall be paid net of any applicable withholding required under federal, state or local law.
Any such payment shall be in lieu of any payment otherwise due under the Company’s “Annual
Incentive Plan” or “Performance Unit Plan” for the year in which the Executive’s termination
occurs.

     (b) Outplacement Services. The Company shall provide the Executive with
outplacement counseling services from an outplacement firm of national reputation to assist
the Executive in obtaining new employment, provided that the amount required to be expended
on such services by the Company shall not exceed 15% of the greater of Executive’s Base
Salary as in effect upon the date Executive’s employment was terminated or as in effect on
the Change of Control Date.

     4. Standard Severance Benefits

          4.1. Eligibility for Standard Severance Benefits. If the Executive’s employment with
the Company is terminated (i) by the Company without Cause or (ii) by the Executive for Good
Reason, in each case other than during the Post Change of Control Period, the Executive shall be
eligible for the benefits described in Section 4.2 (the “Standard Severance Benefits”).

          4.2. Severance Benefit. Upon satisfaction of the terms and conditions of this
Agreement, and subject to Section 6, the Executive shall be entitled to the following Standard
Severance Benefits:

4

 

     (a) Cash Payments. The Executive shall be entitled to receive an amount in
cash equal to the sum of:

     A. For the one year period commencing on the effective date of this
agreement:

     (i) 100% of the greater of (x) the sum of the Executive’s Base Salary, benefits
and Target Bonus, in each case as in effect upon the date Executive’s employment was
terminated, or (y) the sum of the Executive’s Base Salary, benefits and Target
Bonus, in each case as in effect on the date hereof; and

     (ii) accrued and unused vacation.

The payment shall be made in equal monthly installments over a twelve (12) month period and
shall be paid net of any applicable withholding required under federal, state or local law.
Any such payment shall be in lieu of any payment otherwise due under the Company’s “Annual
Incentive Plan” or “Performance Unit Plan” for the year in which the Executive’s termination
occurs.

     B. Thereafter:

     (i) 50% of the greater of (x) the sum of the Executive’s Base Salary, benefits
and Target Bonus, in each case as in effect upon the date Executive’s employment was
terminated, or (y) the sum of the Executive’s Base Salary, benefits and Target
Bonus, in each case as in effect on the date hereof; and

     (ii) accrued and unused vacation.

The payment shall be made in equal monthly installments over a six (6) month period and
shall be paid net of any applicable withholding required under federal, state or local law.
Any such payment shall be in lieu of any payment otherwise due under the Company’s “Annual
Incentive Plan” or “Performance Unit Plan” for the year in which the Executive’s termination
occurs.

     (b) Outplacement Services. The Company shall provide the Executive with
outplacement counseling services from an outplacement firm of national reputation to assist
the Executive in obtaining new employment, provided that the amount required to be expended
on such services by the Company shall not exceed 15% of the greater of Executive’s Base
Salary as in effect upon the date Executive’s employment was terminated or as in effect on
the date hereof.

     5. Release. Notwithstanding anything in this Agreement to the contrary, neither the
Retention Bonus, the Change of Control Severance Benefits nor the Standard Severance Benefits shall
be payable to the Executive pursuant to this Agreement unless and until the eighth (8th) day after
the Executive executes, in each case, a general release in the form of Exhibit A attached
hereto (the “Release”).

5

 

     6. Limitation on Payments to Executive. Notwithstanding anything in this Agreement to
the contrary, the total of all payments made to the Executive under this Agreement shall be reduced
such that no such payments will result, individually or in the aggregate, in (i) the payment
of any “excess parachute payments” within the meaning of Section 280G of the Internal Revenue
Code, as amended (the “Code”) or (ii) the non-deductibility of such payments under Section
162(m) of the Code.

     7. Restrictive Covenants.

          7.1. Confidentiality. The Executive understands and acknowledges that during the
Executive’s employment with the Company, the Executive has had and will have access to and has
learned and will learn (i) information proprietary to the Company and its Affiliates that concerns
the operation and methodology of the businesses conducted by the Company and its Affiliates and as
the same are hereafter conducted by the Company and its Affiliates (the “Business”) or (ii)
other information proprietary to the Company and its Affiliates, including, without limitation,
trade secrets, processes, patent and trademark applications, product development, price, customer
and supply lists, pricing and marketing plans, policies and strategies, details of client and
consultant contracts, operations methods, product development techniques, business acquisition
plans, new personnel acquisition plans and all other confidential information with respect to the
Business (collectively, “Proprietary Information”). The Executive agrees that, from and
after the date hereof, the Executive will keep confidential and will not disclose directly or
indirectly any such Proprietary Information to any third party, except as required to fulfill the
Executive’s duties as an Executive of the Company, and will not misuse, misappropriate or exploit
such Proprietary Information in any way. The restrictions contained herein shall not apply to any
information which (a) was already available to the public at the time of disclosure, or
subsequently becomes available to the public otherwise than by breach of this Agreement, or (b) was
disclosed due to a requirement of law, provided that the Executive shall have given prompt notice
of such requirement to the Company to enable the Company to seek an appropriate protective order
with respect to such disclosure. Upon any termination of the employment of the Executive, the
Executive shall promptly return to the Company and its Affiliates all documents, computer disks,
records, notebooks and similar repositories of any Proprietary Information in the Executive’s
possession, including copies thereof.

          7.2. Agreement Not to Compete/Non-Solicitation.

     (a) During the twelve (12) month period following the first monthly payment
constituting a Change of Control Severance Benefit, or during the six month period following
the first monthly payment constituting the Standard Severance Benefit, as applicable (the
“Non-Compete Period”), the Executive shall not become engaged in a managerial or
executive capacity for, or consultant to, Auto Zone, Inc., The Pep Boys – Manny, Moe & Jack,
O’Reilly Automotive, Inc., Advance Stores Company, Incorporated or Discount Auto Parts, Inc.

     (b) During the Non-Compete Period, the Executive shall not, directly or indirectly,
hire or attempt to hire any employee of the Company.

6

 

     (c) During the Non-Compete Period, the Executive shall not, directly or indirectly,
call on or solicit any person, firm, corporation, business or other entity who or
which is, or within two years prior to the Non-Compete Period had been, a customer of
the Company or any Affiliate of the Company.

          7.3. Remedies. The Executive acknowledges and agrees that damages for a breach or
threatened breach of any of the covenants set forth in this Section 7 will be difficult to
determine and will not afford a full and adequate remedy, and therefore agrees that the Company, in
addition to seeking actual damages in connection therewith, may seek specific enforcement of any
such covenant in any court of competent jurisdiction, including, without limitation, by the
issuance of a temporary or permanent injunction. In addition, the Company may terminate the
payment of any remaining Change of Control Severance Benefits or Standard Severance Benefits in the
event of a breach or threatened breach of any of the covenants set forth in this Section 7.

     8. Waiver of Other Severance Benefits. The Change of Control Severance Benefits and
Standard Severance Benefits payable pursuant to this Agreement are in lieu of any and all other
severance benefits that may otherwise be payable to the Executive upon termination of his or her
employment for any reason, (including, without limitation, any benefits to which the Executive
might otherwise have been entitled under the Stockholders Agreement, dated October 30, 1996, among
the stockholders named therein and the Company, any employment agreement and any letter agreements
to which the Executive is a party (collectively, “Contractual Benefits”), except those
benefits which are to be made available to the Executive as required by applicable law, and
Executive hereby waives all such Contractual Benefits in exchange for the Company’s agreement to
make the payments to be made hereunder.

     9. Assumption of Agreement. The Company will require any successor (whether by
purchase of assets, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform all of the obligations of the
Company under this Agreement (including the obligation to cause any subsequent successor to also
assume the obligations of this Agreement) unless such assumption occurs by operation of law.

     10. Notices. Any notice or communication given by either party hereto to the other
shall be in writing and personally delivered, delivered by overnight delivery service or mailed by
registered or certified mail, return receipt requested, postage prepaid, to the following
addresses:

	 	 	 	 	 
	 

	 	(a)
	 	If to the Company:
	 
	 	 	 	 
	 

	 	 	 	CSK Auto Corporation
	 

	 	 	 	625 East Missouri Avenue
	 

	 	 	 	Phoenix, Arizona 85012
	 

	 	 	 	Attn.: General Counsel
	 
	 	 	 	 
	 

	 	 	 	with a copy to:

7

 

	 	 	 	 	 
	 

	 	 	 	Gibson, Dunn & Crutcher LLP
	 

	 	 	 	1801 California Street, Suite 4100
	 

	 	 	 	Denver, Colorado 80202
	 

	 	 	 	Attn.: Richard M. Russo, Esq.
	 
	 	 	 	 
	 

	 	(b)
	 	if to the Executive, to the address of the Executive as it
appears in the records of the Company

     Any notice shall be deemed given when actually delivered to such address, or five days after
such notice has been mailed or one day after such notice has been sent by overnight delivery
service, whichever comes earliest. Any person entitled to receive notice may designate in writing,
by notice to the other, such other address to which notices to such person shall thereafter be
sent.

     11. Miscellaneous.

          11.1. Entire Agreement. This Agreement, including the Release, contains the entire
understanding of the parties in respect of its subject matter, and any other agreement or
understanding between the parties, oral or written, made prior to the date of this Agreement is
hereby terminated in its entirety.

          11.2. Amendment; Waiver. This Agreement may not be amended, supplemented, cancelled
or discharged, except by written instrument executed by the party affected thereby. No failure to
exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a
waiver thereof. No waiver of any breach of any provision of this Agreement shall be deemed to be a
waiver of any preceding or succeeding breach of the same or any other provision.

          11.3. Binding Effect; Assignment. The rights and obligations of this Agreement shall
bind and inure to the benefit of any successor of the Company by reorganization, merger or
consolidation, or any assignee of all or substantially all of the Company’s business and
properties. The Company may assign its rights and obligations under this Agreement to any of its
Affiliates without the consent of the Executive, but shall remain liable for any payments provided
hereunder not timely made by any Affiliate assignee. The Executive’s rights or obligations under
this Agreement may not be assigned by the Executive.

          11.4. Headings. The headings contained in this agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement.

          11.5. Governing Law. This Agreement shall be construed in accordance with and
governed for all purposes by the laws and public policy (other than conflict of laws principles) of
the State of Arizona applicable to contracts executed and to be wholly performed within such state.

8

 

          11.6. Arbitration. Any dispute or controversy arising under or in connection with
this Agreement, including any claim arising out of or in connection with any termination of the
Executive’s employment, shall be settled exclusively by arbitration in Phoenix, Arizona in
accordance with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrator’s award in any court having jurisdiction.

          11.7. Further Assurances. Each of the parties agrees to execute, acknowledge, deliver
and perform, and cause to be executed, acknowledged, delivered and performed, at any time and from
time to time, as the case may be, all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the
provisions or intent of this Agreement.

          11.8 Severability. The parties have carefully reviewed the provisions of this
Agreement and agree that they are fair and equitable. However, in light of the possibility of
differing interpretations of law and changes in circumstances, the parties agree that if any one or
more of the provisions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the provisions of this Agreement shall, to
the extent permitted by law, remain in full force and effect and shall in no way be affected,
impaired or invalidated. Moreover, if any of the provisions contained in this Agreement is
determined by a court of competent jurisdiction to be excessively broad as to duration, activity,
geographic application or subject, it shall be construed, by limiting or reducing it to the extent
legally permitted, so as to be enforceable to the extent compatible with then applicable law.

[SIGNATURES BEGIN ON NEXT PAGE]

9

 

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	CSK AUTO, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Maynard Jenkins
 

Name: Maynard Jenkins

Title: Chairman and Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Louis Mancini	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Louis Mancini	 	 

10

 

Exhibit 10.29

EXHIBIT A

Date of Notification:                                        

GENERAL RELEASE

     This is a General Release (this “Release”) executed by                      (the
“Executive”) pursuant to Section 5 of the Severance and Retention Agreement dated as of
                     ___, 2005 (the “Retention Agreement”) between CSK Auto, Inc., an Arizona
corporation (the “Company”), and the Executive.

     WHEREAS, the Company and the Executive intend that the terms and conditions of the Retention
Agreement and this Release shall govern all issues related to the Executive’s employment and
termination of employment by the Company;

     WHEREAS, the Executive has had at least 21 days to consider the form of this Release.

     WHEREAS, the Company advised the Executive in writing to consult with a lawyer before signing
this Release;

     WHEREAS, the Executive has represented and hereby reaffirms that the Executive has disclosed
to the Company any information in the Executive’s possession concerning any conduct involving the
Company or its affiliates that the Executive has any reason to believe involves any false claims to
the United States or is or may be unlawful or violates the policies of the Company in any respect;

     WHEREAS, the Executive acknowledges that the consideration to be provided to the Executive
under the Retention Agreement is sufficient to support this Release;

     WHEREAS, the Executive represents that the Executive has not filed any charges, claims or
lawsuits against the Company involving any aspect of the Executive’s employment which have not been
terminated as of the date of this Release; and

     WHEREAS, the Executive understands that the Company regards the representations by the
Executive as material and that the Company is relying on these representations in paying amounts to
the Executive pursuant to the Retention Agreement.

     THEREFORE, the Executive agrees as follows:

     1. The Executive, on behalf of the Executive and anyone claiming through the Executive,
including the Executive’s heirs, assigns and agents, releases and discharges the Company and its
directors, officers, employees, subsidiaries, affiliates and agents, and the predecessors,
successors and assigns of any of them (the “Released Parties”), from each and every claim,
action or right of any sort, in law or in equity, known or unknown, asserted or unasserted,
foreseen or unforeseen, arising on or before the Effective Date (as defined in Section 7 hereof).

A-1

 

          (a) This Release includes, but is not limited to: any claim of discrimination on the basis of
race, sex, religion, marital status, sexual orientation, national origin, handicap or disability,
age, veteran status, special disabled veteran status or citizenship status; any other claim based
on a statutory prohibition or common law doctrine; any claim arising out of or related to the
Executive’s employment with the Company, the terms and conditions thereof or the termination or
cessation thereof; any express or implied employment contract, any other express or implied
contract affecting terms and conditions of the Executive’s employment or the termination or
cessation thereof, or a covenant of good faith and fair dealing; any tort claims and any personal
gain with respect to any claim arising under the qui tam provisions of the False Claims Act, 31
U.S.C. 3730.

          (b) The Executive represents that the Executive understands this Release, that rights and
claims under the Age Discrimination in Employment Act of 1967, as amended, the Civil Rights Act of
1964, as amended, the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Older Workers’
Benefit Protection Act, the Family and Medical Leave Act, the Americans with Disabilities Act and
the Executive Retirement Income Security Act of 1974 are among the rights and claims against the
Released Parties the Executive is releasing, and that the Executive understands that the Executive
is not releasing any rights or claims arising after the Effective Date.

          (c) The Executive further agrees never to sue the Released Parties or cause the Released
Parties to be sued regarding any matter within the scope of this Release. If the Executive
violates this Release by suing any of the Released Parties or causing any of the Released Parties
to be sued, the Executive agrees to pay all costs and expenses of defending against the suit
incurred by the Released Parties, including reasonable attorneys’ fees.

          (d) The Executive expressly represents and warrants that the Executive is the sole owner of
the actual or alleged claims, demands, rights, causes of action and other matters that are released
herein, that the same have not been transferred or assigned or caused to be transferred or assigned
to any other person, firm, corporation or other entity, and that the Executive has the full right
and power to grant, execute and deliver this Release.

     2. The Executive acknowledges that the Executive is bound by the provisions of Section 6 of
the Retention Agreement.

     3. The Executive understands that any and all Company covenants which relate to Company
obligations to the Executive following any Change of Control Date (as defined in the Retention
Agreement), including but not limited to the payments set forth in the Retention Agreement, are
contingent on the Executive’s satisfaction of the Executive’s obligations under this Release.

     4. The Executive agrees that he or she will cooperate fully with the Company in connection
with any and all existing or future litigation or investigations brought by or against the Company
or any of its affiliates, agents, officers, directors or employees, whether

2

 

administrative, civil
or criminal in nature, in which and to the extent the Company deems the Executive’s cooperation
necessary. The Executive understands that the Company will reimburse the
Executive for reasonable out-of-pocket expenses incurred as a result of such cooperation.
Nothing herein shall prevent the Executive from communicating with or participating in any
government investigation. The Executive will act in good faith to furnish the information and
cooperation required by this Section 4 and the Company will act in good faith so that the
requirement to furnish such information and cooperation does not create a hardship for the
Executive.

     5. The Executive agrees, subject to any obligations the Executive may have under applicable
law, that the Executive will not make or cause to be made any statements that disparage, are
inimical to, or damage the reputation of the Company or any of its affiliates, subsidiaries,
agents, officers, directors or Executives. In the event such a communication is made to anyone,
including but not limited to the media, public interest groups and publishing companies, it will be
considered a material breach of the terms of the Retention Agreement and this Release and the
Executive will be required to reimburse the Company for any and all payments made under the terms
of the Retention Agreement and all commitments to make additional payments to the Executive will be
null and void.

     6. The Company is not obligated to offer employment to the Executive (or to accept services or
the performance of work from the Executive directly or indirectly) now or in the future.

     7. The Executive may revoke this Release in writing within seven days of signing it. This
release will not take effect until the Effective Date. If the Executive revokes this Release, all
of its provisions and the payment provisions of the Retention Agreement shall be void and
unenforceable. The “Effective Date” shall be the day after the end of the revocation period
described in this Section 7 hereof.

     8. The Executive shall keep strictly confidential all the terms and conditions, including
amounts, in the Retention Agreement and this Release and shall not disclose them to any person
other than the Executive’s spouse, the Executive’s legal or financial advisor or United States
governmental officials who seek such information in the course of their official duties, unless
compelled by law to do so. If a person not a party to the Retention Agreement requests or demands,
by subpoena or otherwise, that the Executive disclose or produce the Retention Agreement or this
Release or any terms or conditions thereof, the Executive shall immediately notify the Company and
shall give the Company an opportunity to respond to such notice before taking any action or making
any decision in connection with such request or subpoena.

     9. The Retention Agreement and this Release constitute the entire understanding between the
parties. The Executive has not relied on any oral statements that are not included in the
Retention Agreement or this Release.

     10. In the event that any provision of this Agreement is determined to be legally invalid or
unenforceable by any court of competent jurisdiction, and cannot be modified to be enforceable, the
affected provision shall be stricken from the Agreement, and the remaining terms of the Agreement
and its enforceability shall remain unaffected.

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     11. This Release shall be construed, interpreted and applied in accordance with the law of the
State of Arizona (other than conflict of laws principles).

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

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