Document:

PATENT LICENSE AND SETTLEMENT AGREEMENT

This Patent License and Settlement  Agreement  ("AGREEMENT") is made as of March
4, 2004  ("EFFECTIVE  DATE") by and between the  following:  (a) Lumenis Inc., a
Massachusetts  corporation  with its principal place of business in Santa Clara,
California, and Lumenis Ltd., an Israeli corporation with its principal place of
business  in  Yokneam,  Israel  (together  with  their  parents,   subsidiaries,
Affiliates,   predecessors,   permitted  successors  and  assigns,  collectively
"LICENSOR");  and (b) Syneron,  Inc., a Delaware  corporation with its principal
place of business in Toronto,  Canada,  and  Syneron  Medical  Ltd.,  an Israeli
corporation  with its  principal  place of business in Yokneam,  Illit.,  Israel
(together  with  their  parents,  subsidiaries,  Affiliates,  predecessors,  and
permitted  successors  and  assigns,  collectively  "LICENSEE").   Licensor  and
Licensee  are each  referred  to  herein as a "PARTY"  and  collectively  as the
"PARTIES."

                                    RECITALS

WHEREAS,  the Parties have been involved in litigation  concerning,  among other
things,  the  alleged  infringement  by  Licensee  of certain  patents  owned by
Licensor  and various  claims and  cross-claims  for unfair  competition,  trade
disparagement and  misappropriation of trade secrets,  including in LUMENIS LTD.
V.  SYNERON  MEDICAL  LTD.,  Case No.  02-8269  ABC  (PLAx),  pending  as of the
Effective Date in the United States  District Court for the Central  District of
California (the "LOS ANGELES ACTION"); LUMENIS INC. V. SYNERON INC., Case No. CV
811282,  pending as of the Effective  Date in the Superior Court of the State of
California for the County of Santa Clara (the "SANTA CLARA ACTION"), and LUMENIS
LTD. V. ECKHOUSE, Case No. 2133/02, pending as of the Effective Date in district
court in Tel Aviv,  Israel (the  "ISRAEL  ACTION")  (collectively,  the "PENDING
LITIGATION"); and

WHEREAS,  Licensee  and  Licensor  wishing  to  avoid  the  expense  of  further
litigation,  have agreed to settle such Pending Litigation pursuant to the terms
set forth below without any Party making any admission of any liability,  and as
part of the  settlement,  Licensor has agreed,  among other things,  to grant to
Licensee certain  licenses,  releases,  and immunities from suit with respect to
certain patents,  and Licensee has agreed to grant Licensor certain releases and
immunities from suit with respect to the Pending Litigation.

NOW,  THEREFORE,  in  consideration  of the mutual  covenants,  representations,
warranties and other terms and conditions  contained herein,  the sufficiency of
which is hereby acknowledged, the Parties hereto agree as follows:

                                    AGREEMENT

1.     DEFINITIONS

In addition to other terms defined  elsewhere  herein,  the following  terms, as
used in this Agreement, shall have the meanings indicated:

       1.1    "AFFILIATE" shall mean, as to any person,  any corporation,  firm,
partnership,  entity or other person that, directly or indirectly,  controls, is
controlled by, or is under common control with such person, where "control" of a
person means the capacity to designate, appoint or otherwise determine the board
of directors or other governing  authority of such person,  whether by law or in
fact,  and  whether by (i)  ownership  of more than fifty  percent  (50%) of the
equity or rights or shares in  profits  and losses  (or such  lesser  percentage
which  is  the  maximum  allowed  to be  owned  by a  foreign  corporation  in a
particular  jurisdiction)  of such  person,  (ii)  voting  rights or  management
contract or agreement,  (iii) any other contract or agreement that grants to any
other person  effective  control over the affairs and activities of such person,
or (iv) some combination of the foregoing.

       1.2    "LUMENIS COMPETITORS" shall mean those persons listed on EXHIBIT F
and  their  respective   Affiliates,   successors,   assigns,   and  controlling
shareholders.

       1.3    "NET SALES" shall mean the gross  revenues  actually  received for
the  benefit  of  Licensee  from the Sale of any  products  (including,  without
limitation, systems, components,  software, upgrades and accessories) to a third
party,  less (a) normal and customary cash rebates;  (b) sales, use and/or other
excise taxes or duties; (c) insurance costs and outbound  transportation charges
(which include  packaging and packing  costs);  (d) import and/or export duties;
and (e)  amounts  allowed in cash or  credited  in cash due to  returns  (not to
exceed the original billing or

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invoice amount). Licensee shall be deemed to have received as gross revenues the
average  selling  price for a product  in the  territory  in which it is Sold in
connection  with any Sale of products  that does not consist  solely of monetary
consideration, provided, however, that transfers of product at cost or less than
cost  for  bona  fide  research,  experimental,  demonstration,  or  trial  use,
including,  without  limitation,  for use in connection  with clinical trials or
research or to obtain  regulatory  approvals,  shall not be considered  Sales of
product.

       1.4    "PATENT RIGHTS" shall mean:

              (a)    the  patents  asserted  in the Los  Angeles  Action,  their
continuations,   continuations  in  part,  divisionals,  revisions,  extensions,
reissued and  reexamined  patents and patent  applications,  whether  previously
filed or filed in the future, all patents and patent applications from which the
patents asserted in the Los Angeles Action claim priority,  in whole or in part,
directly  or  indirectly,   and  all  foreign  counterpart  patents  and  patent
applications  of  the  patents  and  applications   described  herein,   whether
previously  filed or filed in the  future,  together  with all patents or patent
applications  anywhere in the world,  whether  previously  filed or filed in the
future, which claim priority,  in whole or in part directly or indirectly,  from
any of the foregoing patents or patent applications; and

              (b)    all patents and patent  applications  anywhere in the world
that are owned by or  assigned  to  Lumenis,  or that  Lumenis  has the right to
license  to  others,  involving  or  relating  to  incoherent  light  or gel for
therapeutic,  medical, dermatological or aesthetic applications, that were filed
on or before the Effective Date, and their continuations, continuations-in-part,
divisionals,  reissues,  revisions,  extensions  and  reexamination  patents and
patent  applications,  whether  previously filed or filed in the future, and all
foreign   counterpart  patents  and  patent  applications  of  the  patents  and
applications  described herein, whether previously filed or filed in the future,
together with all patents and patent applications anywhere in the world, whether
previously  filed or filed in the  future,  that  are  owned by or  assigned  to
Lumenis,  or that  Lumenis  has the right to  license  to  others,  which  claim
priority, in whole or in part, directly or indirectly, from any of the foregoing
patents or patent applications;

including,  without limitation, the patents and patent applications set forth in
EXHIBIT A  ("SCHEDULED  PATENTS")  and,  to the extent  Licensor  has any rights
therein,  their continuations,  continuations in part,  divisionals,  revisions,
extensions,  reissued and reexamined  patents and patent  applications,  whether
previously  filed or filed in the future,  all  patents and patent  applications
from which any of the  Scheduled  Patents claim  priority,  in whole or in part,
directly  or  indirectly,   and  all  foreign  counterpart  patents  and  patent
applications of any of the foregoing,  whether  previously filed or filed in the
future,  together with all patents or patent applications anywhere in the world,
whether previously filed or filed in the future, which claim priority,  in whole
or in part directly or indirectly,  from any of the foregoing  patents or patent
applications.

       1.5    "SALE" or "SELL" or "SOLD" shall mean the transfer or  disposition
of a product for value by Licensee to a person other than Licensee.

       1.6    "SPECIALLY  COVERED  PRODUCT"  shall mean any  product,  as of the
Assignment  Date (as defined in Section 9.5):  (i) that Licensee had offered for
sale, is offering for sale, or (ii) in respect of which  Licensee has filed with
the Food and Drug  Administration a Section 510(k)  Premarket  Notification or a
Section  515  Premarket  Approval;  and any  successors  or  follow-ons  to such
products that do not in any manner incorporate technology or processes developed
by Assignee (as defined in Section 9.5) or of which Assignee is the source;  and
any apparatus used to manufacture (including develop,  assemble, test, repair or
maintain) any such product.

2.     RELEASES AND SETTLEMENT

       2.1    MUTUAL  RELEASE.  Each Party, on behalf of itself and its parents,
subsidiaries,   Affiliates,   agents,   representatives,   officers,  directors,
shareholders, employees, attorneys, advisors, insurers, licensees, sublicensees,
successors,  assigns,  and  heirs  ("ASSOCIATED  PARTIES"),  hereby  irrevocably
releases and forever discharges each other Party and its parents,  subsidiaries,
Affiliates,   agents,   representatives,   officers,  directors,   shareholders,
employees,  attorneys,  advisors,  insurers,  direct  and  indirect  third-party
manufacturers,  suppliers,  distributors,  resellers,  sales agents,  customers,
users,  and  licensees  (such  directly  and  indirectly  related  persons,  the
"COMMERCIAL  PARTNERS"),  successors,  assigns,  and heirs  (including,  without
limitation,  all persons named as defendants in the Pending  Litigation)  of and
from any and all  claims,  counterclaims,  demands,  actions,  causes of action,
damages,  liabilities,   losses,  payments,   obligations,  costs  and  expenses
(including, without limitation, attorneys' fees and costs) of any

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kind or  nature,  past,  present  or  future,  fixed or  contingent,  direct  or
indirect, in law or equity, several or otherwise, known or unknown, suspected or
unsuspected,  that arise from or relate in any way to any act or omission  prior
to the Effective Date with respect to the Patent Rights or the subject matter of
the Pending  Litigation,  or that were or could have been brought in the Pending
Litigation  ("RELEASED CLAIMS").  The foregoing release is expressly intended to
cover and include,  without  limitation,  all claims,  past,  present or future,
known or unknown, suspected or unsuspected, which can or may ever be asserted by
successors,  assigns,  heirs, or otherwise,  as the result of the matters herein
released,  or the effects or  consequences  thereof.  With respect to Licensee's
Commercial  Partners,  the  foregoing  release by  Licensor  and its  Associated
Parties shall apply only to Released  Claims arising from or relating in any way
to products or services  provided  by,  for,  or to  Licensee.  With  respect to
Licensor's  Commercial  Partners,  the  foregoing  release by  Licensee  and its
Associated  Parties shall apply only to Released Claims arising from or relating
in any way to products  or  services  provided  by,  for,  or to  Licensor.  The
foregoing  release  shall not apply to each Party's  obligations  required to be
performed under this Agreement.

       2.2    WAIVER.   Each  Party,  on  behalf  of  itself  and  its  parents,
subsidiaries,   Affiliates,   agents,   representatives,   officers,  directors,
shareholders, employees, attorneys, advisors, insurers, licensees, sublicensees,
successors, assigns, and heirs, hereby irrevocably and forever waives all rights
it may have arising under  California  Civil Code Section 1542 (or any analogous
requirement  of  law)  with  respect  to  the  foregoing  release.   Each  Party
understands that Section 1542 provides that:

       A general  release  does not extend to claims  which the  creditor
       does not  know or  suspect  to  exist in his  favor at the time of
       executing the release,  which if known by him must have materially
       affected his settlement with the debtor.

Each  Party  acknowledges  that  it has  been  fully  informed  by  its  counsel
concerning the effect and import of this Agreement under  California  Civil Code
Section 1542 and other requirements of law.

       2.3    DISMISSAL  OF PENDING  LITIGATION.  Within ten (10) days after the
Effective Date, the parties shall cause to be completed, executed and filed with
the  applicable  courts  stipulated  dismissals  with  prejudice  of the Pending
Litigation  consistent  with this Agreement and in the forms attached  hereto as
EXHIBIT B (for the Los Angeles Action),  EXHIBIT C (for the Santa Clara Action),
and EXHIBIT D (for the Israel Action) (the "DISMISSALS").

       2.4    NO  DISPARAGEMENT.   Neither  Licensee  nor  Licensor,  nor  their
respective agents,  representatives,  officers, directors, employees, attorneys,
advisors, licensees, sublicensees, successors, assigns, and heirs, shall make or
publish any statements in any form or through any medium, to actual or potential
customers,  members  of the  medical  community,  or the  public  at large  that
unlawfully  disparages  the other's  products,  services,  business or marketing
practices,  financial condition or commercial prospects. By way of example only,
neither Licensor nor Licensee shall make or publish any unlawful  statement that
represents  or  suggests  that the  other's  products  are  unsafe or will cause
significant  bodily  harm to either the  persons  who utilize the product or the
persons who receive treatment from use of the products. Nothing contained herein
shall prohibit open and fair competition between the parties.

       2.5    NO  ADMISSION.   This  Agreement  is  entered  into  in  order  to
compromise and settle  disputed  claims,  without any concession or admission of
validity or  invalidity or  enforceability  or  nonenforceability  of the Patent
Rights by any Party, and without any acquiescence on the part of any Party as to
the merit of any claim, defense, affirmative defense, counterclaim,  liabilities
or damages related to the Patent Rights and/or the Pending  Litigation.  Neither
this  Agreement  nor any part  thereof  shall be, or be used as, an admission of
infringement or liability by anyone, at any time for any purpose.

       2.6    ATTORNEYS' FEES AND COSTS. Each Party shall be responsible for its
own attorneys'  fees and costs in connection with this Agreement and the Pending
Litigation.

       2.7    CONSENTS.   Concurrent  with  the  execution  of  this  Agreement,
Licensor shall execute and Licensee shall cause each of Brian D. Lodwig and Mark
Lazinski  to  execute a  consent  and  acknowledgement  of the form set forth in
EXHIBIT E.

3.     LICENSE GRANT

       3.1    LICENSE  GRANT.  Subject  to the  terms  and  conditions  of  this
Agreement, Licensor hereby grants to Licensee a royalty-bearing (pursuant to the
terms of Section 4), worldwide, non-exclusive right and license under the Patent
Rights to make and have made,  use,  import,  offer to sell,  sell, or otherwise
exploit or dispose of any article of

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manufacture,  product,  service,  component or matter,  and to practice and have
practiced any method,  process or procedure  within the Patent Rights,  PROVIDED
that Licensee may not exercise its "have made" and "have practiced"  rights with
any Lumenis Competitors. The right and license granted in this Section 3.1 shall
be irrevocable except that such right and license shall be revoked automatically
and  without  further  notice  or  action by  Licensor  in the  event  that this
Agreement is terminated  pursuant to Section 5.2. Without limiting the effect of
Section  3.2, and except as  expressly  provided in this  Section 3.1,  Licensee
shall have no right of sublicense in respect of the Patent Rights.

       3.2    IMMUNITY.  The rights and license granted to Licensee  pursuant to
Section 3.1 shall inure to the  benefit of, and  includes an immunity  from suit
for  infringement  of the  Licensed  Patents by Licensor or  licensors of Patent
Rights to Licensor, for any direct or indirect distributor,  reseller,  customer
or other user of products or services made, sold, or otherwise disposed of by or
for Licensee, insofar as the inventions,  discoveries and information covered by
the Patent Rights may be practiced in connection with  application or use of any
such product or service, whether alone or in combination with any other product,
component or service,  PROVIDED, that the foregoing immunity shall not extend to
any claims by any person,  including  Licensor,  for  infringement of any patent
claim to the extent (and only to the extent) that each limitation of such patent
claim is met by such other product,  component or service  alone,  and PROVIDED,
FURTHER, Licensee shall provide reasonably prompt notice to Licensor of any such
suit or threatened  suit by licensors of Patent  Rights to Licensor.  Failure to
provide  such notice  shall  relieve  the  indemnifying  Party of its  indemnity
obligations  hereunder  to the  extent  (and  only to the  extent)  it  suffered
prejudice from such failure.

4.     PAYMENTS AND ROYALTIES

       4.1    INITIAL  LICENSE FEE. In  consideration  of the rights and license
granted by Licensor to Licensee  under this  Agreement,  Licensee  agrees to pay
Licensor  within ten (10) days after the Effective  Date an initial  license fee
equal to 1.5 million  United  States  Dollars  ($1,500,000),  which fee shall be
considered an advance and shall be credited against the total maximum  royalties
due hereunder pursuant to Section 4.2.

       4.2    RUNNING  ROYALTIES.  In  further  consideration  of the rights and
license  granted  by  Licensor  to  Licensee  under  this  Agreement,  except as
otherwise  provided in Section 4.3, Licensee agrees to pay to Licensor a running
royalty  equal  to  three  percent  (3%) of Net  Sales,  up to a  total  maximum
(including the $1,500,000  initial license fee payable  pursuant to Section 4.1)
of 4.2 million United States Dollars ($4,200,000).  Under no circumstances shall
the total  royalties paid by Licensee to Licensor  under this  Agreement  exceed
$4,200,000.  The running  royalties under this Section 4.2 for Sales of products
shall be payable  only for Sales  beginning  on the date of the first Sale after
the Effective Date. The running royalties set forth in this Section 4.2 shall be
calculated  and paid on a quarterly  basis within thirty (30) days after the end
of each fiscal  quarter during the term of this  Agreement,  with the first such
calculation  and payment in respect of Net Sales for the first and second fiscal
quarters of 2004 to be performed and made no later than July 30, 2004.

       4.3    LIMITATIONS ON RUNNING ROYALTIES. The running royalties in respect
of each unit of product  under Section 4.2 shall be payable only with respect to
the first Sale thereof. In the event that more than one patent within the Patent
Rights is applicable to any product  subject to royalties  under this Section 4,
then only one royalty  shall be paid to Licensor in respect of such  quantity of
products and in any event  duplication of the running  royalty shall be avoided.
No royalty  shall be payable  under  Section 4.2 with respect to the transfer of
products between or among Syneron, Inc., Syneron Medical Ltd., or their parents,
subsidiaries,  Affiliates,  predecessors,  successors  and assigns;  nor shall a
royalty be payable  under  Section 4.2 with respect to Sales of products for use
in clinical trials or as samples.

       4.4    PAYMENTS.  All amounts  payable  hereunder  by  Licensee  shall be
payable in United States Dollars.  If any currency  conversion shall be required
in connection with the payment of royalties hereunder,  such conversion shall be
made using the exchange rates customarily used by Licensee in the preparation of
its own financial statements. Any deduction,  withholding or taxes that Licensee
is  required  to  withhold by statute or  applicable  law,  with  respect to the
amounts payable under this Agreement,  shall be deducted from such amounts,  and
Licensee  shall  furnish  Licensor,  at Licensor's  request,  with a copy of the
certificate  or other  documentation  evidencing  the payment to applicable  tax
authorities of the deducted,  withheld or taxed amount. Payment shall be made by
wire  transfer  to an account  designated  in writing by  Licensor,  without any
deduction for wire transfer or conversion fees or charges.

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       4.5    PAYMENT REPORTS; RIGHT OF INSPECTION; DISPUTES.

              (a)    Licensee  shall,  concurrently  with the  royalty  payments
provided in Section 4.2, deliver to Licensor a report setting forth: (i) the Net
Sales for that quarter,  and (ii) the  calculation of royalties  thereon;  which
report shall be certified or otherwise  confirmed in writing by Syneron's  chief
financial officer.  A report shall be deemed accepted by Licensor,  and shall be
binding on the  Parties,  in the event  Licensor  does not,  within one  hundred
twenty  (120) days of receipt of such  report,  provide  notice to  Licensee  in
writing or by email to Licensee's chief financial  officer that Licensor intends
to challenge all or any part of such report,  and setting forth in general terms
the nature of such challenge.  Licensor shall have the right, no more than twice
each  calendar  year,  to have a  reputable  audit firm in the United  States or
Israel with no current or prior  relationship  with either  Licensee or Licensor
(the "Auditor") inspect Licensee's books and records, upon reasonable notice, at
Licensee's premises, and during normal business hours, solely for the purpose of
verifying  Licensee's  compliance  with  its  payment  obligations  to  Licensor
hereunder.  Any such  Auditor  shall be subject  to  Licensee's  approval,  such
approval not to be  unreasonably  withheld,  provided,  however,  that  Licensee
consents in advance to the use of PricewaterhouseCoopers as the Auditor provided
that  PricewaterhouseCoopers  has not been  engaged  by  Licensor  in any  other
capacity  between the  Effective  Date and the date of any such audit.  Any such
Auditor shall, prior to obtaining access to Licensee's books and records,  enter
into a confidentiality  agreement with Licensee  acceptable in form to Licensor,
such acceptance not to be unreasonably withheld,  providing, among other things,
that only the Determined Amount, as defined below, may be disclosed to Licensor.
Any such audit shall be  conducted  in a manner so as to minimize  the impact on
Licensee's ordinary operations.  Licensor shall maintain and preserve its books,
records,  and documents  necessary to the calculation of royalties hereunder for
at least two (2) years from the date of such report,  after which time, it shall
have no further  obligation  to maintain  such  books,  records,  and  documents
(notwithstanding  the  provisions  of  subsection  (b) below).  Subject  only to
subsection  (b)  below,  the  Auditor's  determination,  based  on an  audit  as
described above, of the actual amount payable or owed (the "Determined  Amount")
shall be final and binding. The Auditor shall provide Licensee and Licensor with
written  notice of the  Determined  Amount.  In the event  that such  inspection
reveals an underpayment by Licensee of the actual royalties owed, Licensee shall
pay to Licensor such  difference,  plus  interest  thereon at the rate of twelve
percent  (12%) per annum,  from the date such  payment was due until the date of
actual  payment  to  Licensor.  In the event  that such  inspection  reveals  an
overpayment  by Licensee,  Licensor shall pay to Licensee such  difference.  Any
such payments  shall be made within thirty (30) days of such written notice from
the  Auditor  to the  Party  responsible  for such  payment.  The costs for such
Auditor  shall be borne  equally by the Parties,  PROVIDED that in the event the
Determined Amount is less than eighty percent (80%) of the actual amount paid by
Licensee,  then Licensor shall pay all such costs, and PROVIDED further, that if
the  Determined  Amount is more than one hundred  twenty  percent  (120%) of the
actual amount paid by Licensee, then Licensee shall pay all such costs.

              (b)    In the event  Licensor  believes,  in good faith,  that the
Auditor is likely to have  committed a bona fide  error,  or engaged in fraud or
misconduct,  in determining the Determined  Amount to the material  prejudice of
Licensor,  Licensor  may,  at its own  expense,  appoint  its  own  independent,
unaffiliated  auditor  (which may be its regular  outside  auditor) to review an
Auditor's report. In such case, Licensor shall deliver written notice thereof to
the Auditor and to Licensee, setting forth the specific grounds for such review,
and Licensee  agrees that in such case the Auditor shall  disclose to Licensor's
auditor all  information in its  possession  used in preparation of such report,
PROVIDED that Licensor's auditor shall have first entered into a confidentiality
agreement  with the Auditor and Licensee  acceptable  in form to Licensee,  such
acceptance not to be unreasonably withheld,  providing, among other things, that
no  information  may be  disclosed to Licensor,  other than the  conclusions  of
Licensor's  auditors with respect to the accuracy of the  Determined  Amount and
the reasons for any inaccuracy  ("INACCURACY").  Any remaining  dispute shall be
addressed as provided in Section 9.3.

5.     TERM AND TERMINATION

       5.1    TERM.  Unless  terminated  earlier pursuant to this Section 5, the
term of this  Agreement  shall commence on the Effective Date and shall continue
in full  force  and  effect  until the later of (a)  expiration,  revocation  or
invalidation  of the last patent within the Patent Rights and (b) abandonment of
the last patent application within the Patent Rights.

       5.2    TERMINATION.  Licensor may terminate  this  Agreement  upon thirty
(30) days written notice of and describing  with  particularity a Breach of this
Agreement by  Licensee,  if such Breach is not cured within such thirty (30) day
period.  The following and only the following events shall be deemed "Breaches":
(a) Licensee's failure to

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deliver,  when due,  any report  required  under the first  sentence  of Section
4.5(a);  (b)  Licensee's  failure to pay,  when due, any  royalties  admitted by
Licensee to be due  hereunder in any such report that remains  uncorrected;  and
(c) Licensee's failure to pay, when due, any Determined Amount.

       5.3    EFFECT OF  TERMINATION.  Termination of this Agreement by Licensor
shall not act as a waiver of any breach of this Agreement and shall not act as a
release of any Party from any liability  for breach of such Party's  obligations
under this  Agreement.  Licensor  shall not be liable to Licensee for damages of
any kind solely as a result of terminating this Agreement in accordance with its
terms, and termination of this Agreement by Licensor shall be without  prejudice
to any other right or remedy of Licensor under this Agreement or applicable law.

       5.4    SURVIVAL.  Sections  1, 2, 3.2,  5.3,  6, 7, 8 (to the  extent set
forth  therein),  and 9 shall survive the expiration and any termination of this
Agreement.  Except as  otherwise  provided  in this  Section  5, all  rights and
obligations  of the  parties  under  this  Agreement  shall  terminate  upon the
expiration or termination of this Agreement;  PROVIDED that, upon termination of
this  Agreement,  nothing  herein shall be construed to release any Party of any
obligation hereunder that matured or accrued prior to the effective date of such
termination.

6.     REPRESENTATIONS, WARRANTIES AND COVENANTS

       6.1    REPRESENTATIONS,  WARRANTIES AND COVENANTS.  Licensor  represents,
warrants and  covenants  that (a) Licensor has the full power to enter into this
Agreement and to perform its obligations hereunder; (b) Licensor is the owner of
the entire  right,  title and  interest  in and to the  Scheduled  Patents;  (c)
Licensor has the sole right and authority to enter into this Agreement and grant
the rights,  licenses,  releases and immunities granted  hereunder,  without the
need for any  licenses,  releases,  consents,  approvals or  immunities  not yet
granted or obtained; (d) Licensor has not previously granted and shall not grant
any  rights in the  Patent  Rights  that are  inconsistent  with the  rights and
licenses  granted to Licensee  herein;  (e) Licensor  shall either  maintain the
Patent Rights during the term of this  Agreement,  or, if Licensor elects not to
maintain any patent  forming part of the Patent  Rights,  Licensor shall provide
reasonable prior notice to Licensee,  and shall offer Licensee  reasonable terms
for the purchase of such patent  (which terms shall also include a  royalty-free
license of such patent  back to  Licensor),  and (f)  Licensor  has  provided to
Licensee or its counsel full access,  on a strictly  confidential  basis, to all
patents and patent  applications  owned by or assigned to Licensor,  or to which
Licensor has any right of license or sublicense on and as of the Effective Date.
The sole  remedy  for breach of the  representation  and  warranty  set forth in
Section 6.1(f) shall be that any patent,  patent application,  or patent license
not disclosed to Licensee in breach of such  representation  and warranty  shall
automatically  be included  within the Patent Rights,  and Licensee shall have a
license thereto pursuant to Section 3 of this Agreement.

Licensee represents,  warrants and covenants that it has the full power to enter
into this Agreement and to perform its obligations hereunder.

       6.2    DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN SECTION 6.1
OF THIS  AGREEMENT,  NO PARTY  MAKES ANY OTHER  REPRESENTATIONS  OR  WARRANTIES,
WHETHER EXPRESS OR IMPLIED.

7.     INDEMNIFICATION

(a)    Licensor  shall hold  harmless  and  indemnify  Licensee and its parents,
subsidiaries,   Affiliates,   agents,   representatives,   officers,  directors,
shareholders,  employees,  attorneys,  advisors,  insurers,  direct and indirect
distributors,  resellers, customers, users, and licensees,  successors, assigns,
and heirs, from and against amounts paid to third parties as a result of any and
all  claims,   demands,  causes  of  action,  suits  or  proceedings  whatsoever
("CLAIM(S)"),  and any and all damages, liabilities,  losses, settlements, costs
(including,  without limitation,  reasonable attorneys' fees and costs), arising
out of or relating  to any such  Claim,  in all cases to the extent (and only to
the  extent)  based on any  breach of (or any claim  that,  if true,  would be a
breach of or would be inconsistent with) Licensor's representations,  warranties
and covenants set forth in Section 6.1.

(b)    Licensee  shall hold  harmless  and  indemnify  Licensor and its parents,
subsidiaries,   Affiliates,   agents,   representatives,   officers,  directors,
shareholders,  employees,  attorneys,  advisors,  insurers,  direct and indirect
distributors,  resellers, customers, users, and licensees,  successors, assigns,
and heirs, from and against amounts paid to third parties as a result of any and
all  claims,   demands,  causes  of  action,  suits  or  proceedings  whatsoever
("CLAIM(S)"),  and any and all damages, liabilities,  losses, settlements, costs
(including, without limitation, reasonable

                                       6
CONFIDENTIAL
<PAGE>

attorneys' fees and costs), arising out of or relating to any such Claim, in all
cases to the extent (and only to the extent) based on  Licensee's  breach of (or
any claim that, if true, would be a breach of or would be inconsistent with) its
representations,  warranties  and covenants set forth in Section 6.1 or based on
any  defect  in  the   manufacturing,   design  or   operation  of  any  devices
manufactured,  modified, altered or sold by Licensee,  presently, in the past or
hereafter.

(c)    The non-indemnifying  Party shall provide reasonably prompt notice to the
indemnifying  Party of any Claim.  Failure to provide such notice shall  relieve
the indemnifying  Party of its indemnity  obligations  hereunder,  to the extent
(and only to the extent) it suffered prejudice from such failure.

8.     CONFIDENTIAL INFORMATION

Each  Party  shall  keep  the  material  terms of this  Agreement  confidential,
provided,  however,  the parties may file and otherwise  disclose the Dismissals
and the information contained in the mutually  agreed-upon,  joint press release
concerning the settlement of the Pending Litigation that was released on January
20, 2004 (the "JOINT PRESS RELEASE"). No Party may issue any other press release
or otherwise  disclose any of the material  terms of this Agreement to any third
party without the express  written  consent of the other Party.  Notwithstanding
the  foregoing,  a Party may disclose such  information  (a) to the extent it is
legally  compelled to do so  (including  as required by  securities  laws to the
extent such laws are or become applicable to either Party),  provided that prior
to any such compelled  disclosure,  the Party so compelled  ("DISCLOSING PARTY")
shall give the other Party ("PROTECTED  PARTY") reasonable advance notice of any
such  disclosure;  (b) in confidence,  to legal counsel;  (c) in confidence,  to
accountants,  banks,  and  financing  sources  and  their  advisors;  and (d) in
connection with the enforcement of this Agreement or any rights  hereunder.  The
confidentiality  obligations  of the  parties  pursuant  to this  Section  shall
continue  in full  force and  effect  for a period  of five (5) years  after the
Effective Date.

9.     GENERAL

       9.1    NOTICES.  Any  notice,  request,  demand  or  other  communication
required or  permitted  hereunder  shall be in  writing,  shall  reference  this
Agreement  and  shall  be  deemed  to be  properly  given:  (a)  when  delivered
personally;  (b) when sent by facsimile,  with written  confirmation of receipt;
(c) five (5)  business  days after having been sent by  registered  or certified
mail, return receipt  requested,  postage prepaid;  or (d) two (2) business days
after deposit with a private industry express courier, with written confirmation
of receipt. All notices shall be sent to the address set forth below (or to such
other address or person as may be designated by a Party by giving written notice
to the other Party pursuant to this Section).

To Licensor:                           To Licensee:
Lumenis Ltd.                           Syneron Medical Ltd.
Yokneam Industrial Park                Industrial Zone
POB # 240                              Yokneam Illit, 20601
Yokneam 20692                          P.O. Box 550
Israel                                 Israel

Attn: Chief Executive Officer          Attn: Chief Executive Officer

       9.2    GOVERNING LAW. This Agreement  shall be governed by, and construed
and interpreted in accordance with, the laws of the State of California (without
giving effect to the laws,  rules or principles  thereof  regarding  conflict of
laws);  provided,  however,  that all questions  with respect to validity of any
patents or patent  applications  within the Patent Rights shall be determined in
accordance  with the laws of the  respective  country in the  territory in which
such  patents  or patent  applications  shall  have been  granted  or filed,  as
applicable.

       9.3    DISPUTE  RESOLUTION;   JURISDICTION;   SERVICE;  ENFORCEMENT.  Any
dispute  related to  calculation  or payment of  royalties  shall  initially  be
addressed as provided in Section 4.5. Any dispute  arising out of the finding of
an Inaccuracy by Licensor's  auditor pursuant to Section 4.5(b) or other dispute
in respect of this Agreement not related to the  calculation of royalties  shall
be  addressed  diligently  and in good faith by the  Parties.  In the event such
dispute cannot be resolved within  forty-five (45) days, the Parties shall agree
to a prompt  meeting in person or by telephone  between the parties'  respective
chief financial  officers,  who shall  thereafter  consult with their respective

                                       7
CONFIDENTIAL
<PAGE>

chief  executive  officers.  If the  Parties  are then  unable to  resolve  such
dispute,  the matter shall be submitted to  non-binding  mediation in a location
agreed by the  Parties,  or failing such  agreement,  in Tel Aviv,  Israel.  The
Parties agree that no Party may bring an action under this Agreement  unless the
Parties  have  attended   mediation  in  good  faith,   and  such  mediation  is
unsuccessful.  Each Party (a) hereby irrevocably  submits itself to and consents
to the  exclusive  jurisdiction  of the  United  States  District  Court for the
Central District of California (or if such court lacks jurisdiction,  the courts
of the State of  California,  County of Los  Angeles)  for the  purposes  of any
action,  claim, suit or proceeding in connection with any controversy,  claim or
dispute  arising  out of or  relating  to this  Agreement  or any of  Licensee's
products,  and (b) hereby waives, and agrees not to assert, by way of motion, as
a defense or otherwise, in any such action, claim, suit or proceeding, any claim
that it is not personally subject to the jurisdiction of such court(s), that the
action,  claim, suit or proceeding is brought in an inconvenient  forum, or that
the venue of the action, claim, suit or proceeding is improper.

       9.4    RELATIONSHIP OF PARTIES. Nothing contained in this Agreement shall
be deemed  or  construed  as  creating  a joint  venture,  partnership,  agency,
employment or fiduciary  relationship between the parties.  Neither Licensee nor
Licensor,  or any of their  agents,  have any  authority of any kind to bind the
other in any respect whatsoever,  and the relationship of the parties is, and at
all times shall continue to be, that of independent contractors.

       9.5    ASSIGNMENT. This Agreement may not be assigned by Licensee without
the prior written consent of Licensor. Notwithstanding the foregoing, Licensor's
consent shall not be required for any assignment to a party that succeeds to all
or  substantially  all  of  Licensee's  business  or  assets  relating  to  this
Agreement, whether by sale, merger, operation of law or otherwise, provided that
such assignee or transferee  ("Assignee") promptly agrees in writing to be bound
by the terms  and  conditions  of this  Agreement  and  provided  that,  if such
Assignee is a Lumenis  Competitor,  the references to "articles of  manufacture"
and  "products" in the license set forth in Section 3.1 shall  automatically  be
amended as of the date of such assignment  ("ASSIGNMENT  DATE") to be references
to "Specially  Covered Products." This Agreement shall be binding upon and shall
inure to the benefit of the parties and their  respective  permitted  successors
and assigns.

       9.6    FURTHER ASSURANCES. Each Party agrees to take or cause to be taken
such further actions, and to execute,  deliver and file or cause to be executed,
delivered and filed such further  documents and instruments,  and to obtain such
consents,  as may be  reasonably  required or requested  in order to  effectuate
fully the purposes, terms and conditions of this Agreement.

       9.7    WAIVER.  A waiver,  express  or  implied,  by either  Licensor  or
Licensee  of any right  under  this  Agreement  or of any  failure to perform or
breach hereof by the other Party hereto shall not  constitute or be deemed to be
a waiver of any other  right  hereunder  or of any other  failure  to perform or
breach  hereof by such other Party,  whether of a similar or  dissimilar  nature
thereto.

       9.8    SEVERABILITY.  If any provision of this Agreement is unenforceable
or invalid under any applicable law or is so held by applicable  court decision,
such   unenforceability   or   invalidity   shall  not  render  this   Agreement
unenforceable or invalid as a whole, and, in such event, such provision shall be
changed and  interpreted so as to best  accomplish the objectives of the parties
within the limits of applicable law or applicable court decision.

       9.9    FORCE MAJEURE.  In the event any Party hereto is prevented from or
delayed in the performance of any of its obligations hereunder by reason of acts
of God, war, strikes,  riots, storms, fires or any other cause whatsoever beyond
the reasonable  control of the Party, the Party so prevented or delayed shall be
excused from the performance of any such obligation to the extent and during the
period of such prevention or delay.

       9.10   BANKRUPTCY. All licenses, immunities, releases, and similar rights
granted  under or pursuant to this  Agreement  by Licensor to Licensee  are, and
shall  otherwise  be  deemed  to be,  for  purposes  of  Section  365(n)  of the
Bankruptcy Code, licenses of rights of "intellectual  property" as defined under
Section 101 of the Bankruptcy Code. The Parties agree that Licensee, as licensee
of such rights under this Agreement,  shall retain and may fully exercise all of
its  rights  and  elections  under  the  Bankruptcy  Code  in the  event  of any
bankruptcy or insolvency proceeding of any kind or nature.

       9.11   CUMULATIVE REMEDIES. The rights and remedies of the parties as set
forth in this  Agreement  are not  exclusive  and are in  addition  to any other
rights and remedies now or hereafter provided by law or at equity.

       9.12   CAPTIONS AND  HEADINGS.  The  captions  and headings  used in this
Agreement  are  inserted  for  convenience  only,  do not  form a part  of  this
Agreement,  and  shall  not be used in any way to  construe  or  interpret  this
Agreement.

                                       8
CONFIDENTIAL
<PAGE>

       9.13   CONSTRUCTION.  This  Agreement has been  negotiated by the parties
and shall be  interpreted  fairly in  accordance  with its terms and without any
construction in favor of or against any Party.

       9.14   COUNTERPARTS.  This Agreement may be executed (including,  without
limitation,  by facsimile signature) in one or more counterparts,  with the same
effect as if the  parties  had signed the same  document.  Each  counterpart  so
executed shall be deemed to be an original,  and all such counterparts  shall be
construed together and shall constitute one Agreement.

       9.15   ENTIRE  AGREEMENT;   AMENDMENT.  This  Agreement,   including  the
Exhibit(s)   attached  hereto  which  are  incorporated   herein  by  reference,
constitutes the entire understanding and only agreement between the parties with
respect  to the  subject  matter  hereof  and  supersedes  any and all  prior or
contemporaneous  negotiations,  representations,  agreements and understandings,
written or oral,  that the parties may have  reached with respect to the subject
matter  hereof  (including,  without  limitation,  that certain Deal  Memorandum
between the parties  dated  January 6, 2004 by the  signatories).  No agreements
altering  or  supplementing  the terms  hereof may be made  except by means of a
written  document signed by the duly authorized  representatives  of each of the
parties hereto.

IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  their duly  authorized
representatives to execute this Agreement as of the Effective Date.

--------------------------------------- ---------------------------------------
("Licensor")                            ("Licensee")

By:                                      By:    Moshe Mizrahy
       --------------------------------         -------------------------------
Name:                                    Name:  /s/ Moshe Mizrahy
       --------------------------------         -------------------------------

Title:                                   Title: CEO
       --------------------------------         -------------------------------

                                       9
CONFIDENTIAL
<PAGE>

                                   EXHIBIT A

Part 1*

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-1733-US         Method And Treatment For Treating Psoriasis     08/535,705       5,836,999
                                      Using Pulsed Electromagnetic Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1744-AU         Method And Apparatus For Depilation Using       48174/96         717203
                                      Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1744-CA         Method And Apparatus For Depilation Using       2,171,260
                                      Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-1744-DEU        Depilation Using Radiation                      29623504.0       296 23 504.0
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Denmark             P-1744-DKU        Method and Apparatus for Depiliation Using      DK9800173U       DK9800173U
                                      Pulsed Electromagnetic Radiation                (BA1998 00173)   (BA1998 00173)
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1744-EP         Method And Apparatus For Depilation Using       96301922.9
Office                                Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1744-JP         Method And Apparatus For Depilation Using       77310/96
                                      Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1744-US         Method And Apparatus For Depilation Using       08/412,519       5,683,380
                                      Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1744-US1        Method And Apparatus For Electromagnetic        08/912,764       6,280,438
                                      Treatment Of The Skin, Including Hair
                                      Depilation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1744-US2        Method And Apparatus For Electromagnetic        09/505,998       6,514,243
                                      Treatment Of The Skin, Including Hair
                                      Depilation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1744-US3        Method And Apparatus For Electromagnetic        10/246,722
                                      Treatment Of The Skin, Including Hair
                                      Depilation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1747-AU         Method And Apparatus For Depilation Using       12295/97         729559
                                      Pulsed Electromagnetic Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1747-CA         Method And Apparatus For Depilation Using       2,195,294
                                      Pulsed Electronic Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1747-JP         Method And Apparatus For Depilation Using       25618/97
                                      Pulsed Electromagnetic Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1747-US         Method And Apparatus For Depilation Using       08/605,321       5,885,273
                                      Pulsed Electromagnetic  Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1749-US         Method And Apparatus For Diagnosis Of Skin      08/594,891       5833612
                                      Lesions
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1753-US         Method And Apparatus For Treatment Of Cancer    08/536,985       5,776,175
                                      Using Pulsed Electromagnetic Radiation
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1755-CA         Method And Apparatus For Skin Rejuvenation      2,185,196
                                      And Wrinkle Smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1755-EP         Method And Apparatus For Skin Rejuvenation      96306588.3
Office                                And Wrinkle Smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1755-JP         Method And Apparatus For Skin Rejuvenation      243696/96
                                      And Wrinkle Smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

--------
* Lumenis makes no  representation  that the patents or  applications  listed in
Part 1 of this Exhibit A will be maintained.

                                       10
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-1755-US1        Method And Apparatus For Skin Rejuvination      08/529,044       5,964,749
                                      And Wrinkle Smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1755-US2        Method And Apparatus For Skin Rejuvination      09/307,874       6,387,089
                                      And Wrinkle Smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1756-US         Method And Apparatus For Therapeutic            08/508,129       5,720,772
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1758-AU         Method And Apparatus For Therapeutic            43326/96         691713
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1758-CA         Method And Apparatus For Therapeutic            2,093,055        2,093,055
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1758-CA1        Method And Apparatus For Therapeutic            2,168,624        2,168,624
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-1758-DE         Apparatus And Method For Therapeutic            93302662.7       69329885.5
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Denmark             P-1758-DK         Apparatus And Method For Therapeutic            93302662.7       0565331
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1758-EP         Apparatus And Method For Therapeutic            93302662.7       0 565 331
Office                                Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1758-EP1        Method Apparatus For Therapeutic                96300756.2
Office                                Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1758-EP2        Apparatus And Method For Therapeutic            00124370.8
Office                                Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-1758-EP3        Apparatus And Method For Therapeutic            00124371.6
Office                                Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Finland             P-1758-FI1        Method And Apparatus For Therapeutic            960,493
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
France              P-1758-FR         Apparatus And Method For Therapeutic            93302662.7       0565331
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United Kingdom      P-1758-GB         Apparatus And Method For Therapeutic            93302662.7       0565331
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Italy               P-1758-IT         Apparatus And Method For Therapeutic            93302662.7       0565331
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1758-JP         Method And Apparatus For Therapeutic            18004/96
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1758-KR         Apparatus For Therapeutic Electromagnetic       2667/1996
                                      Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US         Apparatus And Method For Therapeutic            07/964,210       5,405,368
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US1        A System For Providing Pulsed Light To An       08/398,542       5,828,803
                                      Optical Fiber
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US2        Method And Apparatus For Therapeutic            08/473,532       5,755,751
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US3        Method And Apparatus For Therapeutic            08/992,319       6,174,325
                                      Electromagnetic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US4        A System For Providing Pulsed Light To An       08/383,509       5,626,631
                                      Optical Fiber
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1758-US5        A System For Providing Pulsed Light To An       08/477,479       5,620,478
                                      Optical Fiber
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1767-US         Method And Apparatus For The Diagnostic And     08/385,190       5,643,334
                                      Composite Pulsed Heating And Photodynamic
                                      Therapy Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2241-US         Optimal procedure for performing a hair         09/294,753       6,162,212
                                      removal
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       11
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-2809-US         Method And Apparatus For An Efficient           08/394,238       5,707,401
                                      Photodynamic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
European Patent     P-4983-EP         Flash Lamp Pulse Width Control                  97304777.2
Office
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-4989-IL         Skin Treatment Device With Incoherent Pulsed    101547           101547
                                      Light Source
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States                         Measurement of Burn Depth in Skin                                5,074,306
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States                         Use of Green Porphyrins to Treat                                 6,610,679
                                      Neovasculature in the Eye
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/664,193
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/663,987
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        10/377,099
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        10/357,496
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/494,098
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       12
CONFIDENTIAL
<PAGE>

Part 2*

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Australia           P-1004-AU         METHOD AND APPARATUS FOR HAIR TRANSPLANTATION   39099/95
                                      USING A SCANNING CONTINUOUS-WORKING CO2 LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1004-CA         METHOD AND APPARATUS FOR HAIR TRANSPLANTATION   2164157
                                      USING A SCANNING CONTINUOUS-WORKING CO2 LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1004-EP         METHOD AND APPARATUS FOR HAIR TRANSPLANTATION   95308595.8
                                      USING A SCANNING CONTINUOUS WORKING CO2 LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1004-JP         METHOD AND APPARATUS FOR HAIR TRANSPLANTATION   HE1.7-335804
                                      USING A SCANNING CONTINUOUS-WORKING CO2 LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1004-KR         METHOD AND APPARATUS FOR HAIR TRANSPLANTION     95-45354
                                      USING A SCANNING CONTINUOUS-WORKING CO2 LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-1008-GB         HAIR REMOVAL WITH A LASER SYSTEM AND            GB 9626150.8
                                      WAVEGUIDE FOR RADIAL TRANSMISSION OF LASER
                                      ENERGY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1008-IL         HAIR REMOVAL WITH A LASER SYSTEM AND            119854
                                      WAVEGUIDE FOR RADIAL TRANSMISSION OF LASER
                                      ENERGY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1008-USP        HAIR REMOVAL WITH A LASER SYSTEM AND            60/008,802
                                      WAVEGUIDE FOR RADIAL TRANSMISSION OF LASER
                                      ENERGY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1009-IL         GAS LASER                                       95906            95,906
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1020-IL         TRANSPARENT LASER HANDPIECE OPERATING TIP       121215
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1036-AU         HAIR REMOVAL BY SELECTIVE PHOTOTHERMOLYSIS      10710/97         704,892
                                      WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Brazil              P-1036-BR         HAIR REMOVAL BY SELECTIVE PHOTOTHERMOLYSIS      PI 9612145-9
                                      WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1036-CA         HAIR REMOVAL BY SELECTIVE PHOTOTHERMOLYSIS      2240842
                                      WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1036-IL         NON-INVASIVE HAIR REMOVAL BY SELECTIVE          119051           119,051
                                      PHOTOTHERMOLYSIS WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

----------
* Lumenis  makes no  representation,  warranty or  covenant  that the patents or
applications  listed  in Part 2 of this  Exhibit  A are in  force,  or,  if such
patents or applications are in force,  that such patents or applications will be
maintained.

                                       13
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Japan               P-1036-JP         HAIR REMOVAL BY SELECTIVE PHOTOTHERMOLYSIS      9-513798
                                      WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
New Zealand         P-1036-NZ         HAIR REMOVAL BY SELECTIVE PHOTOTHERMOLYSIS      323705
                                      WITH AN ALEXANDRITE LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1044-IL
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1053-AU         LASER FACIAL REJUVENATION                       42155/96
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1053-CA         LASER FACIAL REJUVENATION                       2168276
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1053-EP         LASER FACIAL REJUVENATION                       96300692.9
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1053-JP         LASER FACIAL REJUVENATION                       HEI.8-40657
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1053-KR         LASER FACIAL REJUVENATION                       96-2586
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1057-US         A SCANNING LASER INSTRUMENT FOR MYRINGOTOMY     08/370,267
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1059-US         LASER HEAD AND MICROSCOPE ATTACHMENT ASSEMBLE   07/179,819       4,856,512
                                      WITH SWIVEL CAPABILITY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1061-US         GAS LASER                                       07/450,580       5,020,070
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1079-US         A LASER SYSTEM                                  09/032,393
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1079-US1        A LASER SYSTEM                                  09/289,877
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1112-IL         OPTICAL-FIBER TYPE POWER TRANSMISSION DEVICE    82163            82,163
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1112-US         OPTICAL-FIBER TYPE POWER TRANSMISSION DEVICE    136620           4,830,462
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1115-US         METHOD AND APPARATUS FOR COMBINING TWO LOWER    317678           4,982,166
                                      POWER LASER BEAMS TO PRODUCE A COMBINED
                                      HIGHER POWER BEAM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1116-US         METHOD AND APPARATUS FOR ATTENUATION AND        317575           5,004,338
                                      MEASUREMENT OF LASER POWER AT THE END OF A
                                      LASER GUIDE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1117-US         COMBINED ELECTROSURGERY AND LASER BEAM          371744           5,011,483
                                      DELIVERY DEVICE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1125-US         ENDOSCOPIC ATTACHMENT TO A SURGICAL LASER       613338           4,597,380
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1127-US         LASER SYSTEM WITH LASER ACTUATION MEANS         264417           4,907,588
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1128-IL         OPHTHALMOSCOPIC INSTRUMENT FOR MEASURING EYE    56509            56,509
                                      DEFECTS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1146-IL         METHOD AND APPARATUS FOR PERFORMING             120811
                                      TRANSMYOCARDIAL REVASCULARIZATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1146-US         METHOD AND APPARATUS FOR PERFORMING             09/075,293
                                      TRANSMYOCARDIAL REVASCULARIZATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1147-IL
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1299-AU         DEVICE FOR TREATING TISSUE VOLUMES              30522/99
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1299-CA         DEVICE FOR TREATING TISSUE VOLUMES              2325896
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       14
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Israel              P-1302-IL         A SYSTEM FOR LAPAROSCOPIC ULTRASOUND GUIDANCE   121357
                                      OF A SURGICAL CRYO-PROBE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1645-EP         SYSTEM AND METHOD FOR MANIPULATING MOVEMENT     99926731.1
                                      OF AN ENERGY EMITTING DEVICE WITHIN A BODY
                                      CAVITY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1733-CA         METHOD AND APPARATUS FOR TREATING PSORIASIS     2185197
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1733-EP         METHOD AND APPARATUS FOR TREATING PSORIASIS     96306917.4
                                      USING PULSED ELECTOMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1733-JP         METHOD AND TREATMENT FOR TREATING PSORIASIS     254790/96
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1733-KR         METHOD AND TREATMENT FOR TREATING PSORIASIS     43484/1996
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1743-AU         METHOD AND APPARATUS FOR CONTROLLING THE        76419/96
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1743-CA         METHOD AND APPARATUS FOR CONTROLLING THE        2193193
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1743-EP         METHOD AND APPARATUS FOR CONTROLLING THE        96309353.9
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1743-JP         METHOD AND APPARATUS FOR CONTROLLING THE        347438/96
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1743-KR         METHOD AND APPARATUS FOR CONTROLLING THE        72413/1996
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1743-US         METHOD AND APPARATUS FOR CONTROLLING THE        08/578,754       5,849,029
                                      THERMAL PROFILE OF SKIN
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Austria             P-1744-AT         GERAT ZUR ELEKTROMAGNETISCHEN THERAPIE          AT1993000302662  AT198836T
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Finland             P-1744-Fl         METHOD AND APPARATUS FOR DEPILATION USING       961413
                                      PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1744-KR         METHOD AND APPARATUS FOR DEPILATION USING       8841/1996
                                      PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1747-EP         METHOD AND APPARATUS FOR DEPILATION USING       97300804.8
                                      PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1747-KR         METHOD AND APPARATUS FOR DEPILATION USING       3831/1997
                                      PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1749-AU         METHOD AND APPARATUS FOR DIAGNOSIS OF SKIN      12296/97         707,237
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1749-CA         METHOD AND APPARATUS FOR DIAGNOSIS OF SKIN      2195292
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       15
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Europe              P-1749-EP         METHOD AND APPARATUS FOR DIAGNOSIS OF SKIN      97300806.3
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1749-JP         METHOD AND APPARATUS FOR DIAGNOSIS OF SKIN      25586/97
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1749-KR         METHOD AND APPARATUS FOR DIAGNOSIS OF SKIN      3830/1997
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1753-AU         METHOD AND APPARATUS FOR TREATMENT OF CANCER    64464/96         726,249
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Brazil              P-1753-BR         METHOD AND APPARATUS FOR TREATMENT OF CANCER    PI 9603841-1
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1753-CA         METHOD AND APPARATUS FOR TREATMENT OF CANCER    2187417
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1753-EP         METHOD AND APPARATUS FOR TREATMENT OF CANCER    96306916.6
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1753-JP         METHOD AND APPARATUS FOR TREATMENT OF CANCER    256706/96
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1753-KR         METHOD AND APPARATUS FOR TREATMENT OF CANCER    43483/1996
                                      USING PULSED ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1755-AU         Method and apparatus for skin rejuvenation      64310/96         726267
                                      and wrinkle smoothing
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1755-KR         METHOD AND APPARATUS FOR SKIN REJUVINATION      39986/1996
                                      AND WRINKLE SMOOTHING
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1755-US         METHOD AND APPARATUS FOR SKIN REJUVINATION      08/529,044
                                      AND WRINKLE SMOOTHING
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1756-AU         METHOD AND APPARATUS FOR THERAPEUTIC            60620/96         700,079
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1756-CA         METHOD AND APPARATUS FOR THERAPEUTIC            2180616
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1756-EP         METHOD AND APPARATUS FOR THERAPEUTIC            96305423.4
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1756-JP         METHOD AND APPARATUS FOR THERAPEUTIC            197889/96
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1756-KR         METHOD AND APPARATUS FOR THERAPEUTIC            31694/1996
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       16
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Finland             P-1758-FI         METHOD AND APPARATUS FOR THERAPEUTIC            931608
                                      ELECTROMAGNETIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1767-AU         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      44402/96
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1767-CA         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      2168636
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe I            P-1767-EP         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      96300783.6
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Finland             P-1767-Fl         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      960539
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1767-JP         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      21436/96
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1767-KR         METHOD AND APPARTUS FOR THE DIAGNOSTIC AND      2790/1996
                                      COMPOSITE PULSED HEATING AND PHOTODYNAMIC
                                      THERAPY TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1768-AU         MONITORING APPARATUS                            33252/97         717,103
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1768-CA         MONITORING APPARATUS                            2212396
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1768-EP         MONITORING APPARATUS                            97114468.8
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1768-KR         MONITORING APPARATUS                            43560/1997
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1887-CA         APPARATUS AND METHOD FOR VENOUS LIGATION        2181453
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-1887-EP         APPARATUS AND METHOD FOR VENOUS LIGATION        95908069.8
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1887-US3        APPARATUS AND METHOD FOR VENOUS LIGATION        08/183,994       5,437,664
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1887-US4        IN SITU SAPHENOUS VEIN BYPASS APPARATUS WITH    08/646,776
                                      CAUTERIZING ELECTRODE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1892-US         APPARATUS FOR IN-SITU CUTTING OF VALVES         07/366,427       5,026,383
                                      WITHIN VEINS AND METHOD THEREFOR
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-1931-AU         HIGH POWER INFRARED LASER SYSTEM                25604/97
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-1931-CA         HIGH POWER INFRARED LASER SYSTEM                2208280
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       17
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Europe              P-1931-EP         HIGH POWER INFRARED LASER SYSTEM                97110064.9
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-1931-IL         HIGH POWER INFRARED LASER SYSTEM                121099
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-1931-JP         HIGH POWER INFRARED LASER SYSTEM                H9-162153
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-1931-KR         HIGH POWER INFRARED LASER SYSTEM                97-25650
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-1931-US         HIGH POWER INFRARED LASER SYSTEM                08/665,930       5,907,574
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2037-EP         APPARATUS FOR THERAPEUTIC ELECTROMAGNETIC       98964564.3       1,042,033
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-2037-IL         APPARATUS FOR THERAPEUTIC ELECTROMAGNETIC       136953
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2037-US         METHOD AND APPARATUS FOR HAIR REMOVAL USING     08/795,677
                                      LONG PULSE OF ND: YAG LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2037-US2        APPARATUS FOR THERAPEUTIC ELECTROMAGNETIC       08/997,398
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2037-US3        METHOD METHOD OF OF INTRAVASCULAR               -386517
                                      ELECTROMAGNETIC RADIATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2037-US4        APPARATUS FOR THERAPEUTIC ELECTROMAGNETIC       09/388,928
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2175-CA         HOLLOW LIGHTPIPE AND METHOD FOR ITS             2,004,087-4      2,004,087
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-2175-DE         HOLLOW LIGHTPIPE AND METHOD FOR ITS             37477
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2175-EP         HOLLOW LIGHTPIPE AND METHOD FOR ITS             90/900557.1      451,169
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
France              P-2175-FR         HOLLOW LIGHTPIPE AND METHOD FOR ITS             90/900557.1      451,169
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-2175-GB         HOLLOW LIGHTPIPE AND METHOD FOR ITS             90/900557.1      451,169
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Italy               P-2175-IT         HOLLOW LIGHTPIPE AND METHOD FOR ITS             90/900557.1      451,169
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-2175-JP         HOLLOW LIGHTPIPE AND METHOD FOR ITS             02-500773        02-500773
                                      MANUFACTURE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Austria             P-2266-AT         LASER SCANNING METHOD AND APPARATUS             9091/96          9091/96
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2266-CA         LASER SCANNING METHOD AND APPARATUS             2234669          2,234,669
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-2266-DE         LASER SCANNING METHOD AND APPARATUS             19681641.6       19,681,642
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2266-EP         LASER SCANNING METHOD AND APPARATUS             96940283.3
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-2266-GB         LASER SCANNING METHOD AND APPARATUS             9808691.1        9808691.1
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-2266-JP         LASER SCANNING METHOD AND APPARATUS             9-517591
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2296-CA         METHOD AND APPARATUS FOR HAIR REMOVAL           2222222
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2296-EP         METHOD AND APPARATUS FOR HAIR REMOVAL           97905880.7
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       18
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Japan               P-2296-JP         METHOD AND APPARATUS FOR HAIR REMOVAL           9-534384
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2296-US1        METHOD AND APPARATUS FOR HAIR REMOVAL           08/858,420
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2297-CA         METHOD AND APPARATUS FOR DERMATOLOGY TREATMENT  2224333          2,224,333
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-2297-JP         METHOD AND APPARATUS FOR DERMATOLOGY TREATMENT  9-505924
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2638-US         HOLLOW LIGHTPIPE USING A LOW REFRACTIVE INDEX   139285           4,805,987
                                      INNER LAYER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2638-US1        HOLLOW LIGHTPIPE AND LIGHTPIPE TIP USING A      07/310,774       5,005,944
                                      LOW REFRACTIVE INDEX INNER LAYER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2638-US2        LIGHTPIPE TIP FOR CONTACT LASER SURGERY         07/513,666       5,071,222
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2802-EP         DEVICE AND METHOD FOR LASER MARKING             97929482.4
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-2802-JP         DEVICE AND METHOD FOR LASER MARKING             H10-505429
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-2806-AU         METHOD FOR LASER SURGERY                        19952/97
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2806-CA         METHOD FOR LASER SURGERY                        12201836
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-2806-IL         METHOD FOR LASER SURGERY                        120528
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-2806-JP         METHOD FOR LASER SURGERY                        H9-113731
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-2806-KR         METHOD FOR LASER SURGERY                        97-18440
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-2809-AU         METHOD AND APPARATUS FOR AN EFFICIENT           30650/95         696,682
                                      PHOTODYNAMIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-2809-CA         METHOD AND APPARATUS FOR AN EFFICIENT           2144209          2,144,209
                                      PHOTODYNAMIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-2809-DE         METHOD AND APPARATUS FOR AN EFFICIENT           19507980.9-33    19507980.9-09
                                      PHOTODYNAMIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-2809-EP         SYSTEM AND METHOD FOR ENDOSCOPICALLY APPLYING   98950947.6
                                      AND MONITORING PHOTODYNAMIC THERAPY AND
                                      PHOTODYNAMIC DIAGNOSIS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-2809-GB         METHOD AND APPARATUS FOR AN EFFICIENT           GB9504032.5      GB2287652
                                      PHOTODYNAMIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-2809-IL         METHOD AND APPARATUS FOR AN EFFICIENT           108918           108,918
                                      PHOTODYNAMIC TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-2809-IL1        SYSTEM AND METHOD FOR ENDOSCOPICALLY APPLYING   135831
                                      AND MONITORING PHOTODYNAMIC THERAPY AND
                                      PHOTODYNAMIC DIAGNOSIS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
South Africa        P-2809-SA         Method and Apparatus for An Efficient                            9501948
                                      Photodynamic Treatment
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       19
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-2809-US1        SYSTEM AND METHOD FOR ENDOSCOPICALLY APPLYING   08/961,014
                                      AND MONITORING PHOTODYNAMIC THERAPY AND
                                      PHOTODYNAMIC DIAGNOSIS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2809-US2        SYSTEM AND METHOD FOR ENDOSCOPICALLY APPLYING   09/664,920
                                      AND MONITORING PHOTODYNAMIC THERAPY AND
                                      PHOTODYNAMIC DIAGNOSIS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-2810-DE         APPARATUS FOR THE PHOTODYNAMIC THERAPY          4244429.2
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-2810-IL         APPARATUS FOR THE PHOTODYNAMIC THERAPY          100545           100,545
                                      TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-2947-US         DEPILATORY METHOD AND DEVICE                    08/980,625
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-3362-US         AN APPARATUS SYSTEM AND METHOD FOR              09/956,245
                                      IDENTIFYING A TREATMENT TOOL WITHIN A
                                      PATIENT'S BODY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-3794-US         METHOD FOR DELIVERING ENERGY WITHIN             08/792,355       5,906,609
                                      CONTINUOUS OUTLINE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
PCT                 P-3978-PC         A LASER PROBE                                   PCT/IL02/00373
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-4215-DE         CONTACT LASER DELIVERY SYSTEM                   69122279.7       69,122,280
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-4215-EP         CONTACT LASER DELIVERY SYSTEM                   91300960.1       441,606
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
France              P-4215-FR         CONTACT LASER DELIVERY SYSTEM                   91300960.1       441,606
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-4215-GB         CONTACT LASER DELIVERY SYSTEM                   91300960.1       441,606
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-4221-DE         METHOD AND APPARATUS FOR SUPPLYING PULSED       92309279.5       537,032
                                      POWER TO AN OPHTHALMIC LASER SYSTEM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-4221-EP         METHOD AND APPARATUS FOR SUPPLYING PULSED       92309279.5       537,032
                                      POWER TO AN OPHTHALMIC LASER SYSTEM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
France              P-4221-FR         METHOD AND APPARATUS FOR OPHTHALMIC O AN        192309279.5      1,537,032
                                      LASER SYSTEM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-4221-GB         METHOD AND APPARATUS FOR SUPPLYING PULSED       92309279.5       537,032
                                      POWER TO AN OPHTHALMIC LASER SYSTEM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-4221-JP         METHOD AND APPARATUS FOR SUPPLYING PULSED       4-315500
                                      POWER TO AN OPHTHALMIC LASER SYSTEM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4223-US         DUAL WAVELENGTH TREATMENT OF VASCULAR LESIONS   09/538,787
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4231-US         POWER MONITORING ARRANGEMENT FOR BROKEN FIBER   09/602,442
                                      DETECTOR
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4275-US         SOLID-STATE LASER WITH PRISMATIC GAIN-REGION    09/492,025       6,373,866
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4280-US         LASER TREATMENT FOR REDUCING WRINKLES           09/738,523
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4281-US1        FIBER MANAGEMENT PACKAGE                        10/115,584
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
PCT                 P-4283-PC         FREQUENCY DOUBLED ND:YAG LASER WITH YELLOW      PCTIUS01/27727
                                      LIGHT OUTPUT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       20
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-4283-US         FREQUENCY DOUBLED ND:YAG LASER WITH YELLOW      09/655,535
                                      LIGHT OUTPUT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4286-US         SCANNING LASER HANDPIECE WITH SHAPED OUTPUT     09/814,445
                                      BEAM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-4294-GB         APPARATUS FOR DELIVERING A DEFOCUSED LASER      92308978.3       536,951
                                      BEAM HAVING A SHARP-EDGED CROSS-SECTION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
France              P-4299-FR         ISOTOPIC CO2 LASER AND METHOD OF USE FOR        90313893.1       437,955
                                      MEDICAL TREATMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-4300-EP         MEDICAL LASER DELIVERY SYSTEM WITH INTERNALLY   92307057.7       529,823
                                      REFLECTING
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-4305-JP         METHOD AND DEVICE FOR PRECONDITIONING A LASER   4-56978
                                      HAVING A SOLID STATE GAIN MEDIUM
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-4306-JP         SOLID STATE LASER WITH INTERLEAVED OUTPUT       37408
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-4307-CA         HOLLOW WAVEGUIDE                                504248           1,268,362
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4307-US         HOLLOW WAVEGUIDE                                06/713,149       4,652,083
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4307-US1        HOLLOW WAVEGUIDE HAVING PLURAL LAYER            06/713,150       4,688,893
                                      DIELECTRIC
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-4320-IL         ELECTRONICALLY PULSED LASER SYSTEM              96089            96,089
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-4320-JP         ELECTRONICALLY PULSED LASER SYSTEM              2-290603
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4322-US         HIGH REPETITION RATE ERBIUM: YAG LASER FOR      09/592,324       6,395,000
                                      TISSUE ABLATION
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4364-US2        LIQUID CIRCULATION SYSTEM FOR COOLING A LASER   08/873,823       5,781,574
                                      HEAD
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4385-US         METHOD AND APPARATUS FOR TREATING VASCULAR      08/355,512
                                      LESIONS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4396-US         ANTI-ASTIGMATIC OPHTHALMIC CONTACT LENS FOR     08/183,530       5,548,352
                                      USE IN PERFORMING LASER SURGERY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-4397-US1        SURGICAL LASER HANDPIECE FOR SLIT INCISIONS     08/338,412       5,454,808
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-914-IL          SIDE-EMITTING OPTICAL FIBERS FOR LASERS         112087           112,087
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-916-IL          METHOD AND APPARATUS FOR APPLYING LASER BEAMS   108059           108,059
                                      TO A WORKING SURFACE, PARTICULARLY FOR
                                      ABLATING TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-916-IL1         METHOD AND APPARATUS FOR APPLYING LASER BEAMS   116556           116,556
                                      TO A WORKING SURFACE, PARTICULARLY FOR
                                      ABLATING TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-916-US1         METHOD AND APPARATUS FOR APPLYING LASER BEAMS   08/700,351
                                      TO A WORKING SURFACE, PARTICULARLY FOR
                                      ABLATING TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-916-US3         METHOD AND APPARATUS FOR APPLYING LASER BEAMS   08/738,304
                                      TO A WORKING SURFACE, PARTICULARLY FOR
                                      ABLATING TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-918-DE          ASSEMBLY FOR LASER APPARATUS                    19650574.7
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       21
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
Israel              P-918-IL          HANDPIECE ASSEMBLY FOR LASER APPARATUS          116266
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-918-US          HANDPIECE ASSEMBLY FOR LASER APPARATUS          08/759,563       5,951,544
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-919-IL          SIDE-EMITTING OPTICAL FIBERS FOR LASERS WITH    113674           113,674
                                      ORIENTATION MARKINGS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-920-IL          LASER BEAM DELIVERY METHOD AND SYSTEM           112108           112,108
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-922-IL          PACKAGED OPTICAL FIBER                          112089           112,089
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-922-US1         PACKAGED OPTICAL FIBER                          08/839,197
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-924-GB          DEVICE FOR TREATING THE INTERIOR OF BODY        95305456.6       717,965
                                      CAVITIES WITH LASER ENERGY
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Italy               P-924-IT          ION FOR INTERIOR BOGY ST WITH LASER ENERGY      195305456.6      10,717,965
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-925-IL          ADAPTOR ASSEMBLY FOR A FIBER CONNECTOR          103327           103,327
                                      PARTICULARLY USEFUL IN LASER APPARATUS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-927-IL          LASER BEAM DELIVERY SYSTEM                      102083           102,083
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-927-US          LASER BEAM DELIVERY SYSTEM                      08/070,816       5,364,391
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-928-US1         SYSTEM FOR CAUSING ABLATION OF IRRADIATED       08/175,980       5,411,502
                                      MATERIAL OF LIVING TISSUE WHILE NOT CAUSING
                                      DAMAGE BELOW A PREDETERMINED
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-928-US4         SYSTEM FOR CAUSING ABLATION OF IRRADIATED       09/040 ,729
                                      MATERIAL OF LIVING TISSUE WHILE NOT CAUSING
                                      DAMAGE BELOW A PREDETERMINED
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-929-IL          COUPLER DEVICE FOR LASER APPARATUS              100441           100,441
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-929-US          COUPLER DEVICE FOR LASER APPARATUS              07/985,048
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-931-IL          CONTROL APPARATUS PARTICULARLY USEFUL FOR       67599            67,599
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-934-IL          HANDPIECE FOR LASER APPARATUS                   105957
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-935-EP          LASER MICROSCOPE ADAPTOR APPARATUS WITH AUTO    95304619
                                      - FOCUS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-935-IL          LASER MICROSCOPE ADAPTOR APPARATUS WITH         108335
                                      AUTO-FOCUS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-935-US1         LASER MICROSCOPE ADAPTOR APPARATUS WITH         08/421,436       6,071,275
                                      AUTO-FOCUS
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-936-EP          METHOD AND APPARATUS FOR GENERATING BRIGHT      94307879
                                      LIGHT SOURCES
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-936-IL          METHOD AND APPARATUS FOR GENERATING BRIGHT      107299
                                      LIGHT SOURCES
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-960-IL          APPARATUS AND METHOD FOR TREATMENT EMPLOYING    1118229
                                      A LASER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-964-US          TONGUE BLADE EVACUATION SYSTEM                  223986           5,460,626
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-965-IL          FIBER SHAPER                                    121259
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       22
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       P-966-US          SYNCRONIZATION OF LASER OPERATION AND SCANNER   08/834,024
                                      MOVEMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-966-USP         SYNCRONIZATION OF LASER OPERATION AND SCANNER   60/015,333
                                      MOVEMENT
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Australia           P-991-AU          APPARATUS AND METHOD FOR LASER VAPORIZATION     68883/96
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Brazil              P-991-BR          APPARATUS AND METHOD FOR LASER VAPORIZATION     PI 9610936-0     PCT/IL96/0009
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Canada              P-991-CA          APPARATUS AND METHOD FOR LASER VAPORIZATION     2231421
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-991-EP          APPARATUS AND METHOD FOR LASER VAPORIZATION     96 929 502.1
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               P-991-JP          APPARATUS AND METHOD FOR LASER VAPORIZATION     9-512541
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       P-991-KR          APPARATUS AND METHOD FOR LASER VAPORIZATION     705545/1998
                                      OF HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-991-US          APPARATUS AND METHOD FOR LASER DRILLING OF      08/711,184
                                      HARD TISSUE
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       P-991-USP         VAPORIZATION AND LASER DRILLING OF HARD         60/003,361
                                      TISSUE-TEETH AND BONES- WITH A CO2 LASER
                                      FLASHSCANNER
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Germany             P-993-DE          APPARATUS AND METHOD AS PREPARATION FOR         196 80 710.7
                                      PERFORMING A MYRINGOTOMY IN A CHILD'S EAR
                                      WITHOUT NEED FOR ANAESTHESIA
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Great Britain       P-993-GB          APPARATUS AND METHOD AS PREPARATION FOR         9705008.2
                                      PERFORMING A MYRINGOTOMY IN A CHILD'S EAR
                                      WITHOUT NEED FOR ANAESTHESIA
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-993-IL          APPARATUS AND METHOD AS PREPARATION FOR         120357
                                      PERFORMING A MYRINGOTOMY IN A CHILD'S EAR
                                      WITHOUT NEED FOR ANAESTHESIA
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              P-995-EP          FOLDABLE FOOT SWITCH                            96305800.3
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              P-995-IL          FOLDABLE FOOT SWITCH                            119013
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/007,417
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/684,839
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/684,839
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        119508
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Europe              Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Japan               Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Korea (South)       Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/547,984
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/003,360
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       23
CONFIDENTIAL
<PAGE>

<TABLE>
<CAPTION>
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
COUNTRY             EPLC ID           FULL-TITLE                                      APP. NO.         REG. NO.
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
<S>                 <C>               <C>                                             <C>              <C>
United States       Redacted          Redacted                                        08/461,260
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/883,873
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/367,473
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/767,972
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        120347
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/383,724
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        -364251
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/134,213
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/263,761
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/262,669
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/106,584
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/214,027
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/227,363
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/121,265
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/443,034
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/526,149
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/276,713
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/478,728
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/765,183
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/815,467
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        09/439,919
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        112512
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        103664
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        100664
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        108060
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/358,420
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        120631
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
Israel              Redacted          Redacted                                        119210
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        08/711,425
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
United States       Redacted          Redacted                                        60/003,362
------------------- ----------------- ----------------------------------------------- ---------------- -----------------
</TABLE>

                                       24
CONFIDENTIAL
<PAGE>

                                    EXHIBIT B

                     LOS ANGELES ACTION STIPULATED DISMISSAL

1     SONNENSCHEIN NATH & ROSENTHAL
      ROBERT F. SCOULAR (State Bar No. 85293)
2     LAURA A. WYTSMA (State Bar No. 189527)
      FELIX T. WOO (State Bar No. 208107)
3     601 South Figueroa Street, Suite 1500
      Los Angeles, California  90017
4     Telephone:  (213) 623-9300
      Facsimile:  (213) 623-9924
5
      SONNENSCHEIN NATH & ROSENTHAL
6     JORDAN A. SIGALE (Admitted PRO HAC VICE)
      8000 Sears Tower
7     Chicago, Illinois  60606

8     Attorneys for Plaintiffs
      LUMENIS LTD. and LUMENIS INC.
9

10    CHARLES S. BARQUIST (State Bar No. 133785)
      ANTHONY L. PRESS (State Bar No. 125027)
11    BENJAMIN J. FOX (State Bar No. 193374)
      MORRISON & FOERSTER LLP
12    555 West Fifth Street, Suite 3500
      Los Angeles, California  90013-1024
13    Telephone:  (213) 892-5200
      Facsimile:  (213) 892-5454
14
      Attorneys for Defendants
15    SYNERON INC. and
      SYNERON MEDICAL LTD.
16

17                        UNITED STATES DISTRICT COURT

18                       CENTRAL DISTRICT OF CALIFORNIA

19

20    LUMENIS LTD., an Israeli corporation; and     Case No. 02-8269 ABC (PLAx)
      LUMENIS INC., a Massachusetts
21    corporation,

22                                   Plaintiffs,    STIPULATION RE: DISMISSAL
                                                    OF ACTION WITH PREJUDICE
23                         v.

24    SYNERON MEDICAL LTD., an Israeli
      corporation; SYNERON INC., a Delaware
25    corporation; SYNERON CANADA CORP.,
      a Canadian corporation; and Does 1
26    through 10,

27                                   Defendants.

28
la-702051

                                       25
CONFIDENTIAL
<PAGE>

<TABLE>
<S>   <C>
1           The parties, having reached a settlement of all claims that have been asserted

2     or could be asserted in this litigation,

3           HEREBY STIPULATE AND AGREE through their designated counsel and

4     pursuant to Federal Rules of Civil Procedure Rule 41(a)(1), that all claims asserted

5     in this action by plaintiffs Lumenis Ltd. and Lumenis Inc. are dismissed with

6     prejudice.  Each party shall bear its own attorneys' fees and costs.
</TABLE>
7

8     Dated:  _________, 2004               SONNENSCHEIN NATH & ROSENTHAL

9

10                                          By:
                                                --------------------------------

11                                              Attorneys for Plaintiffs
                                                LUMENIS LTD. and LUMENIS INC. 12

13

14    Dated:  _________, 2004               MORRISON & FOERSTER LLP

15

16                                          By:
                                                --------------------------------

17                                              Attorneys for Defendants
                                                SYNERON INC. and SYNERON
18                                              MEDICAL LTD.

19

20

21

22

23

24

25

26

27

28
                                        1

                                       26
CONFIDENTIAL
<PAGE>

                                    EXHIBIT C

                     SANTA CLARA ACTION STIPULATED DISMISSAL

--------------------------------------------------------------------------------

ATTORNEY OR PARTY WITHOUT
ATTORNEY (Name and Address):            TELEPHONE NO.:        FOR COURT USE ONLY
Ivor E. Samson (SBN 52767)              (415) 882-5800
SONNENSCHEIN NATH & ROSENTHAL LLP
685 Mark Street
6th Floor
San Francisco, CA 94105
Facsimile: (415)543-5472
ATTORNEY FOR (Name): Plaintiff and Cross-Defendant

Insert name of court and name of judicial district and branch court, if any:
Santa Clara County Superior Court
Superior Court Old Courthouse

PLAINTIFF/PETITIONER: LUMENIS INC., a Massachussetts corporation
DEFENDANT/RESPONDENT: SYNERON, INC., a Delaware corporation, et al.

              REQUEST FOR DISMISSAL                           CASE NUMBER:
       Personal Injury, Property Damage, or Wrongful Death    CV811282
              Motor Vehicle                Other
       Family Law
       Eminent Domain
   X   Other (specify): Breach of Contract, etc.

--- A conformed copy will not be returned by the clerk unless a method of return
is provided with the document. ---

--------------------------------------------------------------------------------

1.     TO THE CLERK: Please dismiss this action as follows:
              a.    (1)   X With prejudice             (2)     Without prejudice
              b.    (1)     Complaint                  (2)     Petition
                    (3)     Cross-complaint filed by (name):   on (date):
                    (4)     Cross-complaint filed by (name):   on (date):
                    (5)   X Entire  action of all parties and all causes
                            of action
                    (6)     Other (specify):*

Date: January    , 2004                  Sonnenschein Nath & Rosenthal LLP

Ivor E. Samson (SBN 52767)
---------------------------------------  ---------------------------------------
(TYPE OR PRINT NAME OF                                 (SIGNATURE)
   X   ATTORNEY                          Attorney or party without attorney for:
       PARTY WITHOUT ATTORNEY)           Lumenis Inc.

*If dismissal requested is of specified      X Plaintiff/Petitioner
parties only, of specified causues of          Defendant/Respondent
action only, of specified cross                Cross-complainant
complaints only, so state and identify
the parties, causes of action, or
cross-complaints to be dismissed.

                                       27
CONFIDENTIAL
<PAGE>

--------------------------------------------------------------------------------

2.   TO THE CLERK: Consent to the above
     dismissal is hereby given.**

Date: January    , 2004                  Fulbright S Jaworski
L.L.P.

Peter H. Mason (SBN 71839)
---------------------------------------  ---------------------------------------
(TYPE OR PRINT NAME OF                                 (SIGNATURE)
   X  ATTORNEY                           Attorney or party without attorney for:
      PARTY WITHOUT ATTORNEY             Syneron, Inc., Brian D. Lodwig,
                                         J. Scott, Callihan, Mark Lazinski,
                                         Stephen Harsnett and David J. Maslowski

**If a cross-complaint - or Response            Plaintiff/Petitioner
(Family Law) seeking affirmative relief      X  Defendant/Respondent
- is on file, the attorney for cross-        X  Cross-complaints
complaint (respondent) must sign this
consent if required by Code of Civil
Procedure section 581(i) or (j).

--------------------------------------------------------------------------------

(To be completed by clerk)
3.   Dismissal entered as requested on (date):
4.   Dismissal  entered on (date):            as to only (name):
5.   Dismissal not entered as requested for the following reasons (specify):
6.   a.   Attorney or party without attorney notified on (date):
     b.   Attorney or party without attorney not notified. Filing party failed
          to provide a copy to conform means to return conformed copy

Date:                               Clerk, by                           , Deputy
                                             ---------------------------

--------------------------------------------------------------------------------

                              REQUEST FOR DISMISSAL

Form Adopted by the Judicial Council of California 982(a)(5)
[Rev. January 1, 1997] Mandatory Form
Legal Solutions Plus
Code of Civil Procedure,ss.581 et seq. Cal. Rules of Court, rules 383, 1233

                                       28
CONFIDENTIAL
<PAGE>

                                    EXHIBIT D

                       ISRAEL ACTION STIPULATED DISMISSAL

                                         Civil claim ____________

                                         INTEL AVIV - JAFO

                                         Scheduled For Pre-Trial  24.2.04 before

                                         HIS HONOUR JUDGE ADI AZAR

      CONCERNING:   Lumenis Ltd.
                    Represented by Advocates M. Zellermayer and/or A.D. Pelossof
                    and/or E. Mey-Tal From Rubinstein House, 20 Lincoln St.
                    Tel-Aviv, 67134
                    Tel: 03-6255555  Fax: 03-6255500

                                                       PLAINTIFF

                                     - Vs. -

          1.   Shimon Eckhouse I.D. 041785635

          2.   Syneron Medical Ltd. Company Number 512986514

          3.   Michael Kreindel I.D. 311020762

          4.   Mark Aronovitch I.D. 321274557

          5.   Avner Lior I.D. 007776115
          Represented By Haim Tzadok & Co., Advocates
          Which their address for service of process is:

                     20 Lincoln St. Tel-Aviv, 67134
                     Tel: 03-6254000  Fax: 03-6254040

                                                       DEFENDANTS

Announcement concerning a Settlement Agreement:

     1.   The  parties  hereby  give  notice  to the  honorable  court  that  on
          __________ a settlement agreement was signed between the Plaintiff and
          Defendant 2, which makes redundant the continuation of process in this
          claim.

     2.   Accordingly,  the court is requested to dismiss the claim without writ
          for expenses.

     3.   The  Plaintiff  undertakes  not to file claim  anywhere  in world with
          respect to the claims set forth in this claim.

     4.   Therefore,  the parties  request that the honorable  court instruct to
          dismiss the Claim as agreed and  instruct  that the court fees paid be
          returned.

          -------------------------               --------------------------
          Eyal Rozovsky, Advocate                 Eli Mey-Tal, Advocate

                                       29
CONFIDENTIAL
<PAGE>

                                    EXHIBIT E

                           CONSENT AND ACKNOWLEDGEMENT

          Lumenis Inc., a Massachusetts  corporation with its principal place of
business in Santa Clara,  California,  and Lumenis Ltd., an Israeli  corporation
with its principal  place of business in Yokneam,  Israel  (together  with their
parents,  subsidiaries,   affiliates,  predecessors,  permitted  successors  and
assigns,  collectively "LUMENIS"),  and [insert name], an individual residing in
[insert city],  California,  together with his assigns and heirs  (collectively,
"SYNERON EMPLOYEE"), hereby agree as follows:

1.   Each  party has read and is  familiar  with the  terms of  Section 2 of the
Settlement Agreement by and between Lumenis, on the one hand, and Syneron,  Inc.
and Syneron  Medical Ltd., on the other  ("SETTLEMENT  AGREEMENT").  Capitalized
terms  used and not  otherwise  defined  herein  shall the  respective  meanings
ascribed to such terms in the Settlement Agreement.

2.   Each party  acknowledges  and agrees that Syneron Employee is an "employee"
of "Syneron" as those terms are used in Section 2 of the  Settlement  Agreement,
and acknowledges  and agrees that Syneron Employee  releases Lumenis and each of
its Commercial  Partners,  and Lumenis and its Associated  Parties each releases
Syneron  Employee,  to the full extent  provided in Section 2 of the  Settlement
Agreement.  Syneron  Employee  acknowledges and agrees that it shall not receive
any value or  consideration  from Lumenis in exchange for the releases  provided
herein, separate from the consideration provided by Lumenis under the Settlement
Agreement.

3.   Each party  hereby  irrevocably  and forever  waives all rights it may have
arising under California  Civil Code Section 1542 (or any analogous  requirement
of law) with respect to the releases.  Each Party  understands that Section 1542
provides that:

          A  general  release  does not  extend  to  claims  which the
          creditor  does not know or  suspect to exist in his favor at
          the time of  executing  the  release,  which if known by him
          must  have  materially  affected  his  settlement  with  the
          debtor.

Each  party  acknowledges  that  it has  been  fully  informed  by  its  counsel
concerning the effect and import of this Consent and Acknowledgement,  including
under California Civil Code Section 1542 and other requirements of law.

4.   This Consent and Acknowledgement is entered into in order to compromise and
settle disputed claims,  without any concession,  admission,  or acquiescence on
the  part of any  party  as to the  merit  of any  claim,  defense,  affirmative

                                       30
CONFIDENTIAL
<PAGE>

defense, counterclaim, liabilities or damages. This Consent and Acknowledgement,
the Settlement Agreement, and any part of either shall not be, or be used as, an
admission of liability by anyone, at any time, for any purpose.

5.   Attorneys'  Fees and Costs.  Each party  shall be  responsible  for its own
attorneys'  fees and costs in connection  with this Consent and  Acknowledgement
and the pending litigation between the parties.

IN WITNESS WHEREOF,  this Consent and  Acknowledgement has been signed by and on
behalf of Lumenis  and Syneron  Employee,  this _____ day of _______  2004,  and
shall be effective immediately.

Lumenis Ltd.

By:
     ----------------------------
Name:
     ----------------------------
Its:
     ----------------------------

Lumenis Inc.

By:
     ----------------------------
Name:
     ----------------------------
Its:
     ----------------------------

[insert name]

---------------------------------

                                       31
CONFIDENTIAL
<PAGE>

                                    EXHIBIT F

                               LUMENIS COMPETITORS

Palomar Medical Technologies, Inc.

Danish Dermatological Development A/S

Altus Medical, Inc./Cutera, Inc.

Alderm, N.A. LLC

Candela Corporation

Cynosure Inc.

Laserscope Inc.

BIOLASE Technology, Inc.

Biolitec AG

Radiancy Ltd.

Primary Technologies

WaveLight Laser Technologie AGDIMON INCORPORATED

	EXHIBIT 10.01 

	 
	 
	SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

	 
	 
	          THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (“Second Amendment”) made and entered into this 7th day of July 2004, to be effective as of the 1st day of July 2004, by and between DIMON Incorporated (the “Company”) and Brian J. Harker (the “Executive”).

	 
	          WHEREAS, the Company and the Executive entered into that certain Employment Agreement (the “Employment Agreement”) dated January 3, 1997, which was effective as of October 1, 1996. The Company and the Executive have agreed to modify Section 6.2 of the Agreement to reflect certain understandings between the parties with regard to the Special Health Care Benefit.

	 
	          NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the Company and the Executive agree that the Agreement shall be amended by replacing the entire Section 6.2 such that the revised Section shall read as follows:

	 
	          6.2     Special Health Care Benefit.     In addition to the other benefits provided for in this Agreement, upon the expiration of the Term for any reason that would entitle the Executive to receive the Severance Benefit (as defined in Section 12.3), the Executive shall be entitled for the period commencing on the Termination Date and ending on the date of the Executive’s death (the “Coverage Period”) to participate in any group health plan or program (whether insured or self-insured, or any combination thereof) provided by the Company for the benefit of its active employees (the “Company Plan”). The Company, consistent with sound business practices, shall use its best efforts to provide the Executive with coverage for the Executive and his spouse under the Company Plan during the Coverage Period (and any period thereafter to the extent required by applicable state and federal law), including, if necessary, amending the applicable provisions of the Company Plan and negotiating the addition of any necessary riders to any group health insurance contract. If the amount of the premium charged for coverage of the Executive and his spouse under the Company Plan shall exceed the amount of the premium charged an active employee participating in the Company Plan with respect to coverage under the Company Plan for the active employee and his spouse (or, the active employee and his family, in the event the Company Plan does not offer employee and spouse only coverage) (the “Maximum Premium Charge”), the amount of the premium charged for coverage of the Executive and his spouse under the Company Plan in excess of the Maximum Premium Charge shall be paid by the Company. In addition, regardless of the Executive’s years of service with the Company as of the Termination Date, the Company shall pay all or any portion of the Maximum Premium Charge with respect to coverage of the Executive and his spouse to the extent of the highest premium paid by the Company for other retired executives of the Company. The portion of the Maximum Premium Charge not paid by the Company, if any, shall be paid by the Executive. If the amount of the premium charged to active employees participating in the Company Plan with respect to coverage under the Company Plan for such active employees and their spouses (or

	 
	 
	 
	 
	 
	 
	 

	 
	families, as the case may be) varies for each active employee, the Maximum Premium Charge shall be the average of the premium charged to all active employees participating in the Company Plan with respect to coverage under the Company Plan for such active employees and their spouses (or families, as the case may be). In the event the Company is unable for whatever reason to provide the Executive with coverage under the Company Plan, the Company, consistent with sound business practices, shall use its best efforts to provide the Executive with an individual policy of health insurance providing coverage for the Executive and his spouse (the “Individual Policy”) during the Coverage Period. If the amount of the premium charged for the Individual Policy shall exceed the Maximum Premium Charge, the amount of the premium charged for the Individual Policy in excess of the Maximum Premium Charge shall be paid by the Company. In addition, regardless of the Executive’s years of service with the Company as of the Termination Date, the Company shall pay all or any portion of the Maximum Premium Charge with respect to the Individual Policy to the extent of the highest premium paid by the Company for other retired executives under the Company Plan or any individual plan or policy. The portion of the Maximum Premium Charge with respect to the Individual Policy not paid by the Company, if any, shall be paid by the Executive. The coverage to be provided to the Executive pursuant to this Section 6.2 (whether under the Company Plan or the Individual Policy) shall consist of coverage which, as of the time the coverage is being provided, is identical (or, with respect to an Individual Policy, substantially identical) to the coverage provided under the Company Plan to active employees and their dependents. Notwithstanding the foregoing, the Company shall coordinate coverage for the Executive under this Section 6.2 with any applicable federal or state government programs (e.g., Medicare or Medicaid) when Executive is eligible to begin receiving benefits under such program. Any premiums required to be paid for coverage of the Executive under such government programs shall be paid by the Executive.

	 
	          IN WITNESS WHEREOF, the parties have executed this Second Amendment to Employment Agreement on the day and year first above written.

	 	 
	 	 
	 	EXECUTIVE

	 	 
	 	/s/ Brian J. Harker                  

	 	Brian J. Harker

	 	 
	WITNESS

	 
	 	DIMON Incorporated

	/s/ Susan P. Herndon         

	By: /s/ Don C. Hare                

	 	Its:  Vice President – Human Resources

	 	 
	Attest:

	 
	 	 
	/s/Thomas C. Parrish        

	 
	Secretary

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