Document:

Exhibit10.3

-1-

TEMPUR SEALY INTERNATIONAL, INC. 
2013 EQUITY INCENTIVE PLAN
Stock Option Agreement
[Insert Director] 
(Board of Directors)
This Stock Option Agreement dated as of [Insert Date], between Tempur Sealy International, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and the individual identified below, residing at the address there set out (the “Optionee”).
1.Grant of Option.  Pursuant and subject to the Company’s 2013 Equity Incentive Plan (as the same may be amended from time to time, the “Plan”), the Company grants to the Optionee an option (the “Option”) to purchase from the Company all or any part of a total of [______] shares (the “Option Shares”) of the Company’s common stock, par value $0.01 per share (the “Stock”), at a price of $[Exercise Price] per share (the “Exercise Price”).  The Grant Date of this Option is [Date].
2.    Character of Option.  This Option is not to be treated as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.
3.    Duration of Option.  Subject to the following sentence, this Option shall expire at 11:59 p.m. (Lexington, KY local time) on the date that is immediately preceding the tenth anniversary of the Grant Date.  Subject to Section 5, if the Optionee’s membership with the Board of Directors of the Company ends before that date, this Option shall expire on the earlier date specified in whichever of the following applies:
(a)    If the termination of the Optionee’s membership with the Board of Directors of the Company is on account of the optionee’s death or disability, the first anniversary of the date the Optionee’s membership ends; or
(b)    If the termination of the Optionee’s membership with the Board of Directors of the Company is due to any other reason, three (3) months after the Optionee’s membership ends.
4.    Exercise of Option.
(a)    Until the expiration of this Option pursuant to Section 3 or Section 5 of this Agreement, the Optionee may exercise it as to the number of Option Shares identified in the table below, in full or in part, at any time on or after the applicable exercise date or dates identified in the table.  However, subject to Section 5, during any period that this Option remains outstanding after the Optionee’s membership with the Company’s Board of Directors ends for any reason, the Optionee may exercise it only to the extent it was exercisable immediately prior to the end of the Optionee’s membership with the Company’s Board of Directors; provided, however, if the Optionee dies or the Optionee’s membership with the Board ends due to the Optionee’s long-term disability (within the meaning of Section 409A of the Code), all of the Option Shares that have not become vested pursuant this Section 4 as of the date of death or disability, shall immediately vest and become exercisable.  
	
			
	Number of Shares 
in Each Installment
	Percentage of
Option Shares
	Initial Exercise Date 
for Shares in Installment

	[Number]
	[__]%
	[Date]

	[Number]
	[__]%
	[Date]

	[Number]
	[__]%
	[Date]

	[Number]
	[__]%
	[Date]

Section 7.1(e) of the Plan sets forth the procedure for exercising this Option by paying cash or a check made payable to the order of the Company in an amount equal to the aggregate Exercise Price of the Stock to be purchased, or by delivering other shares of Stock of equivalent Market Value, provided the Optionee has owned such shares of Stock for at least six (6) months.  The Optionee may also exercise this Option pursuant to a formal cashless exercise program as referred to in Section 7.1(e) of the Plan, subject to the terms and conditions referred to in Section 7.1(e) of the Plan.    
5.    Acceleration in Certain Cases.  
(a)    The Option shall be subject to early termination prior to the tenth anniversary of the Grant Date and accelerated vesting in certain circumstances, as described below. Notwithstanding anything contained in this Section 5 to the contrary, however, in no event shall the Option become or remain exercisable to any extent after the expiration date set forth in Section 3.
(b)    In lieu of the Change of Control provisions of Section 9 (a) and (b) of the Plan and notwithstanding anything herein to the contrary, if a Change of Control occurs this Agreement shall remain in full force and effect in accordance with its terms subject to the following.  In the event of such Change of Control: 
(i) if the Optionee’s association with the Company and its Affiliates is terminated after the occurrence of a Change of Control and before all of the Option Shares have become vested pursuant this Section 4, all of the Optionee’s Option Shares which have not become vested Option Shares pursuant to Section 4 as of the date of such termination shall immediately become vested Option Shares and the Option Shares shall remain outstanding and exercisable until the date that is the one (1) year anniversary of the date of such termination of employment; and 
(ii)    if the Option or the Option Shares are not assumed, converted or replaced by a successor organization following such Change of Control, all of the Optionee’s Option Shares which have not become vested Option Shares pursuant to Section 4 as of the date of such Change of Control shall immediately become vested Option Shares and the Option Shares shall remain outstanding and exercisable until the date that is the one (1) year anniversary of the date of such Change of Control.  
(c)    For the purposes of this Agreement, “Change of Control” shall have the meaning set forth in the Plan, provided, that no event or transaction shall constitute a Change of Control for purposes of this Agreement unless it also qualifies as a change of control for purposes of Section 409A of the Code.
6.    Transfer of Option.  Except as provided in Section 6.4 of the Plan, neither this Option nor any Option Shares nor any rights hereunder to the underlying Stock may be transferred except by will or the laws of descent and distribution, and during the Optionee’s lifetime, only the Optionee may exercise this Option.
7.    Incorporation of Plan Terms.  Except as otherwise provided herein in Section 5 above, this Option is granted subject to all of the applicable terms and provisions of the Plan, including but not limited to Section 8 of the Plan, “Adjustment Provisions”, and the limitations on the Company’s obligation to deliver Option Shares upon exercise set forth in Section 10 of the Plan, “Settlement of Awards”.  Capitalized terms used but not defined herein shall have the meaning assigned under the Plan.
8.    Miscellaneous.  This Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, without regard to the conflict of laws principles thereof, and shall be binding upon and inure to the benefit of any successor or assign of the Company and any executor, administrator, trustee, guardian, or other legal representative of the Optionee.  This Agreement may be executed in one or more counterparts all of which together shall constitute one instrument.
9.    Tax Consequences.  
(a)    The Company makes no representation or warranty as to the tax treatment of this Option, including upon the exercise of this Option or upon the Optionee’s sale or other disposition of the Option Shares.  The Optionee should rely on his/her own tax advisors for such advice.  Notwithstanding the foregoing, the Optionee and the Company hereby acknowledge that both the Optionee and the Company may be subject to certain obligations for tax withholdings, social security taxes and other applicable taxes associated with the vesting or exercise of the Options or the issuance of the Option Shares by the Optionee pursuant to this Agreement.  The Optionee hereby affirmatively consents to the transfer to the Company of any and all personal information necessary for the Company to comply with its obligations.
(b)    All amounts earned and paid pursuant to this Agreement are intended to be paid in compliance with, or on a basis exempt from, Section 409A of the Code.  This Agreement, and all terms and conditions used herein, shall be interpreted and construed consistent with that intent.  However, the Company does not warrant all such payments will be exempt from, or paid in compliance with, Section 409A.  The Optionee bears the entire risk of any adverse federal, state or local tax consequences and penalty taxes which may result from payments made on a basis contrary to the provisions of Section 409A or comparable provisions of any applicable state or local income tax laws.
10.    Certain Remedies.
(a)    If at any time prior to the later of (y) the two (2) year period after termination of the Optionee’s association with the Company and its Affiliates, and (z) the period that includes the date (after the termination of the Optionee’s association with the Company and its Affiliates) on which all of the Option Shares granted hereunder and capable of becoming vested Option Shares so become vested Option Shares (the last day of such later period being the “Covenant Termination Date”), any of the following occur:
(i)    the Optionee unreasonably refuses to comply with lawful requests for cooperation made by the Company, its board of directors, or its Affiliates;
(ii)    the Optionee accepts employment or a consulting or advisory engagement with any Competitive Enterprise (as defined in Section 11(c) below) of the Company or its Affiliates or the Optionee otherwise engages in competition with the Company or its Affiliates;
(iii)    the Optionee acts against the interests of the Company and its Affiliates, including recruiting or employing, or encouraging or assisting the Optionee’s new employer to recruit or employ an employee of the Company or any Affiliate without the Company’s written consent;
(iv)    the Optionee fails to protect and safeguard while in his/her possession or control, or surrender to the Company upon termination of the Optionee’s association with the Company or any Affiliate or such earlier time or times as the Company or its board of directors or any Affiliate may specify, all documents, records, tapes, disks and other media of every kind and description relating to the business, present or otherwise, of the Company and its Affiliates and any copies, in whole or in part thereof, whether or not prepared by the Optionee;
(v)    the Optionee solicits or encourages any person or enterprise with which the Optionee has had business-related contact, who has been a customer of the Company or any of its Affiliates, to terminate its relationship with any of them; 
(vi)    the Optionee breaches any confidentiality obligations the Optionee has to the Company or an Affiliate, the Optionee fails to comply with the policies and procedures of the Company or its Affiliates for protecting confidential information, the Optionee uses confidential information of the Company or its Affiliates for his/her own benefit or gain, or the Optionee discloses or otherwise misuses confidential information or materials of the Company or its Affiliates (except as required by applicable law); or
(vii)    the Optionee takes any action or makes any statement, written or oral, that disparages the business, products, services or management of Company or its Affiliates, or any of their respective directors, officers, agents, or employees, or the Optionee takes any action that is intended to, or that does in fact, damage the business or reputation of the Company or its Affiliates, or the personal or business reputations of any of their respective directors, officers, agents, or employees, or that interferes with, impairs or disrupts the normal operations of the Company or its Affiliates; then
(1)    this Option shall terminate and be cancelled effective as of the date on which the Optionee entered into such activity, unless terminated or cancelled sooner by operation of another term or condition of this Agreement or the Plan;
(2)    any stock acquired and held by the Optionee pursuant to the exercise of this Option during the Applicable Period (as defined in Section 11(b) below) may be repurchased by the Company at a purchase price equal to the Exercise Price per share; and
(3)    any gain realized by the Optionee from the sale of stock acquired through the exercise of this Option during the Applicable Period shall be paid by the Optionee to the Company.
(b)    The term “Applicable Period” shall mean the period commencing on the later of the date of this Agreement or the date which is one year prior to the Optionee’s termination of association with the Company or any Affiliate and ending on the Covenant Termination Date.
(c)    The term “Competitive Enterprise” shall mean a business enterprise that engages in, or owns or controls a significant interest in, any entity that engages in, the manufacture, sale or distribution of mattresses or pillows or other bedding products or other products competitive with the Company’s products.  Competitive Enterprise shall include, but not be limited to, the entities set forth on Appendix A hereto, which may be amended by the Company from time to time upon notice to the Optionee.  At any time the Optionee may request in writing that the Company make a determination whether a particular enterprise is a Competitive Enterprise.  Such determination will be made within fourteen (14) days after the receipt of sufficient information from the Optionee about the enterprise, and the determination will be valid for a period of ninety (90) days from the date of determination.
11.    Right of Set Off.  By executing this Agreement, the Optionee consents to a deduction from any amounts the Company or any Affiliate owes the Optionee from time to time, to the extent of the amounts the Optionee owes the Company under Section 10 above, provided that this set-off right may not be applied against wages, salary or other amounts payable to the Optionee to the extent that the exercise of such set-off right would violate any applicable law.  If the Company does not recover by means of set-off the full amount the Optionee owes the Company, calculated as set forth above, the Optionee agrees to pay immediately the unpaid balance to the Company upon the Company’s demand.
12.    Nature of Remedies.
(a)    The remedies set forth in Sections 10> and 11 above are in addition to any remedies available to the Company and its Affiliates in any non-competition, employment, confidentiality or other agreement, and all such rights are cumulative.  The exercise of any rights hereunder or under any such other agreement shall not constitute an election of remedies.
(b)    The Company shall be entitled to place a legend on any certificate evidencing any stock acquired upon exercise of this Option referring to the repurchase right set forth in Section 10(a).  The Company shall also be entitled to issue stop transfer instructions to the Company’s stock transfer agent in the event the Company believes that any event referred to in Section 10(a) has occurred or is reasonably likely to occur.
[Remainder of page intentionally left blank]
In Witness Whereof, the parties have executed this Agreement as of the date first above written.
	
		
	TEMPUR SEALY INTERNATIONAL, INC. 

	By:
	_______________________________

	Name:
	_______________________________

	 
	 

	OPTIONEE

	_________________________________________

	Name:
	[Insert Director]

	Optionee’s Address:

	_________________________________________

	_________________________________________

	_________________________________________

	_________________________________________

	 

Appendix A
Competitive Enterprises of the Company and its Affiliates
	
	
	Ace

	AH Beard

	Auping

	Ashley Sleep

	Boyd

	Carpe Diem

	Carpenter

	Carolina Mattress

	Cauval Group

	Chaide & Chaide

	Classic Sleep Products

	Comforpedic

	Comfort Solutions

	COFEL group

	De Rucci

	Diamona

	Doremo Octaspring

	Dorelan

	Dunlopillo

	Duxiana

	Eastborne

	Eminflex

	Englander

	Flex Group of Companies

	Foamex

	France Bed

	Future Foam

	Harrisons

	Hastens

	Hilding Anders Group

	Hypnos

	IBC

	KayMed

	King Koil

	Kingsdown

	Lady Americana

	Land and Sky

	Leggett & Platt

	Lo Monaco

	Magniflex

	Metzler

	Myers

	Optimo

	Ortobom

	Natura

	Natures Rest

	Park Place

	Permaflex

	Pikolin Group

	Recticel Group

	Relyon

	Restonic

	Rosen

	Rowe

	Sapsa Bedding

	Select Comfort

	Serta and any direct or indirect parent company

	Silentnight

	Simmons Company/Beautyrest and any direct or indirect parent company

	Sleepmaker

	Spring Air

	Sterling

	Stobel

	Swiss Comfort

	Swiss Sense

	Therapedic

	 

 

A/75493168.2Published CUSIP Numbers: Deal
M8554DAA8
Revolver M8554DAB6 

CREDIT AGREEMENT 

Dated as of November 7, 2013 

among 

STRATASYS LTD.,
as a Guarantor 

STRATASYS INTERNATIONAL
LTD.,
as the Borrower, 

BANK OF AMERICA, N.A.,
as Administrative Agent and Swing Line Lender,

and 

The Other Lenders Party Hereto

CITIBANK, N.A. and HSBC BANK USA, NATIONAL
ASSOCIATION,
as Co-Syndication Agents

SILICON VALLEY BANK,
as Documentation Agent

BANK OF AMERICA MERRILL
LYNCH,
as
Sole Lead Arranger and Sole
Book Manager

 

TABLE OF CONTENTS 

	Section	     		     	Page
	ARTICLE
    I.		DEFINITIONS AND ACCOUNTING
    TERMS		1
	 	1.01		Defined Terms		1
	 	1.02		Other Interpretive Provisions		25
		1.03		Accounting Terms		26
		1.04		Rounding		26
		1.05		Times of Day		26
				 		
	ARTICLE
      II.		THE COMMITMENTS AND
BORROWINGS		26
		2.01		Committed Loans		26
		2.02		Borrowings, Conversions and
      Continuations of Committed Loans		27
		2.03		Swing Line Loans		28
		2.04		Prepayments		31
		2.05		Termination or Reduction of Commitments		32
		2.06		Repayment of Loans		32
		2.07		Interest		32
		2.08		Fees		33
		2.09		Computation of Interest and Fees; Retroactive Adjustments
      of Applicable Rate		34
		2.10		Evidence of Debt		34
		2.11		Payments Generally; Administrative Agent’s
    Clawback		35
		2.12		Sharing of Payments by
Lenders		37
		2.13		Increase in Commitments		38
	 	2.14		Defaulting Lenders		39
				 		
	ARTICLE
      III.		TAXES, YIELD PROTECTION AND
      ILLEGALITY		41
		3.01		Taxes		41
		3.02		Illegality		45
		3.03		Inability to Determine Rates		46
		3.04	 	Increased Costs; Reserves on Eurodollar
      Rate Loans		47
		3.05		Compensation for Losses		49
		3.06	 	Mitigation Obligations; Replacement of
      Lenders	 	49
		3.07		Survival		50
				 		
	ARTICLE
      IV.		CONDITIONS PRECEDENT TO
      BORROWINGS		50
		4.01		Conditions of Initial Borrowing		50
		4.02		Conditions to all Borrowings		52
				 		
	ARTICLE
    V.		REPRESENTATIONS AND
WARRANTIES		53
		5.01		Existence, Qualification and Power		53
		5.02		Authorization; No
    Contravention		53
		5.03		Governmental Authorization; Other Consents		53
		5.04		Binding Effect		53
		5.05		Financial Statements; No Material Adverse
Effect		53

i

	5.06		Litigation		54
	5.07	     	No Default	     	54
	5.08		Ownership of Property; Liens		54
	5.09		Environmental Compliance		54
	5.10		Insurance		55
	5.11		Taxes		55
	5.12		ERISA Compliance		55
	5.13		Subsidiaries; Equity Interests		56
	5.14		Margin Regulations; Investment Company
      Act		56
	5.15		Disclosure		56
	5.16		Compliance with Laws		56
	5.17		Taxpayer Identification Number		57
	5.18		Intellectual Property; Licenses,
      Etc		57
	5.19		OFAC		57
	5.20		Representations as to Foreign
      Obligors		57
	5.21		Governing Law		58
	5.22		Anti-Corruption Laws and
      Sanctions		59
			 		
	ARTICLE VI.		AFFIRMATIVE COVENANTS		59
	6.01		Financial Statements		59
	6.02		Certificates; Other
    Information		60
	6.03		Notices		62
	6.04		Payment of Material
    Obligations		62
	6.05		Preservation of Existence, Etc		62
	6.06		Maintenance of Properties		63
	6.07		Maintenance of Insurance		63
	6.08		Compliance with Laws		63
	6.09		Books and Records		63
	6.10		Inspection Rights		63
	6.11		Use of Proceeds		64
	6.12		Approvals and Authorizations		64
	6.13		Additional Guarantors		64
	6.14		Additional Documents and Further
      Actions		64
	6.15		MakerBot		64
	6.16		Margin Stock		64
			 		
	ARTICLE VII.		NEGATIVE COVENANTS		65
	7.01	 	Liens		65
	7.02		Investments	 	67
	7.03		Indebtedness		68
	7.04		Fundamental Changes		70
	7.05		Dispositions		71
	7.06		Restricted Payments		72
	7.07		Change in Nature of Business		72
	7.08		Transactions with Affiliates		72
	7.09		Burdensome Agreements		73
	7.10		Use of Proceeds		73

ii

	7.11		Financial Covenants		74
	7.12	     	Sanctions	     	74
	7.13		Assignments In Contravention of
      No-Action Letter		74
			 		
	ARTICLE VIII.		EVENTS OF DEFAULT AND REMEDIES		74
	8.01		Events of Default		74
	8.02		Remedies Upon Event of
Default		77
	8.03		Application of Funds		77
			 		
	ARTICLE IX.		ADMINISTRATIVE AGENT		78
	9.01		Appointment and Authority		78
	9.02		Rights as a Lender		78
	9.03		Exculpatory Provisions		79
	9.04		Reliance by Administrative
    Agent		79
	9.05		Delegation of Duties		80
	9.06		Resignation of Administrative
      Agent		80
	9.07		Non-Reliance on Administrative Agent and Other
      Lenders		81
	9.08		No Other Duties, Etc		82
	9.09		Administrative Agent May File Proofs of Claim		82
	9.10		Guaranty Matters		82
	9.11		Related Cash Management Agreements and Related Hedging
      Obligations		83
			 		
	ARTICLE X.		MISCELLANEOUS		83
	10.01		Amendments, Etc		83
	10.02		Notices; Effectiveness; Electronic
      Communication		84
	10.03		No Waiver; Cumulative Remedies; Enforcement		86
	10.04		Expenses; Indemnity; Damage
      Waiver		87
	10.05		Payments Set Aside		89
	10.06		Successors and Assigns		89
	10.07		Treatment of Certain Information;
    Confidentiality		94
	10.08		Right of Setoff		95
	10.09		Interest Rate Limitation		96
	10.10	 	Counterparts; Integration;
      Effectiveness		96
	10.11		Survival of Representations and Warranties		96
	10.12		Severability		96
	10.13		Replacement of Lenders		97
	10.14		Governing Law; Jurisdiction;
    Etc		97
	10.15		Waiver of Jury Trial		99
	10.16		No Advisory or Fiduciary
      Responsibility		99
	10.17		Electronic Execution of Assignments and Certain Other
      Documents		100
	10.18		USA PATRIOT Act		100
	10.19		Keepwell		100
	10.20		Termination of Loan Documents	 	100
	10.21		Israeli Antitrust Letter; Lenders’ Receipt of Regulatory
      Agency		
			Correspondence		101
	  
	                
      SIGNATURES		S-1

iii

SCHEDULES 

		2.01		Commitments and Applicable
      Percentages
	          	5.01	     	Good Standings
		5.05		Supplement to Interim Financial
      Statements
		5.06		Litigation
		5.13		Subsidiaries; Other Equity
      Investments
		7.01		Existing Liens
		7.03		Existing
Indebtedness
		10.02		Administrative Agent’s Office;
      Certain Addresses for Notices

	EXHIBITS
      

				Form
    of
		 
	          	A	     	Committed Loan Notice
		B		Swing Line Loan Notice
	 	C		Note
		D	 	Compliance Certificate
		E		Assignment and Assumption
		F-1		Israeli Guaranty
		F-2		U.S. Subsidiary Guaranty
		G		U.S. Tax Compliance Certificates
		H		Approval for Consortium Arrangement Letter
		I		No-Action Letter

iv

CREDIT AGREEMENT 

     This
CREDIT AGREEMENT (“Agreement”) is entered into as of November 7, 2013, among STRATASYS LTD., a company formed under
the laws of Israel (“Holdings”), STRATASYS INTERNATIONAL
LTD., a company formed under the laws of
Israel (the “Borrower”), each lender from time to time party hereto (collectively,
the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as
Administrative Agent and Swing Line Lender. 

    
The Borrower has requested that the Lenders provide a revolving credit
facility, and the Lenders are willing to do so on the terms and conditions set
forth herein. 

    
In consideration of the mutual covenants and agreements herein contained,
the parties hereto covenant and agree as follows: 

ARTICLE
I. DEFINITIONS AND ACCOUNTING TERMS 

    
1.01 Defined Terms. As used
in this Agreement, the following terms shall have the meanings set forth below:

    
“Acquisition” means any transaction, or any series of related transactions, by which
any of Holdings, the Borrower or their respective Subsidiaries (a) acquires any
ongoing business or all or substantially all of the assets of, any firm,
corporation or division thereof, whether through purchase of assets, purchase of
stock, merger, amalgamation or otherwise, (b) directly or indirectly acquires
control of at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors, (c)
directly or indirectly acquires control of a majority ownership interest in any
partnership, joint venture or similar arrangement or (d) directly or indirectly
acquires assets constituting all or substantially all of a line of business of
another Person; provided, however, that, in each case, such acquisition is not a
“hostile” acquisition and, if required by applicable Law, has been approved by
the board of directors and/or shareholders (or comparable persons or groups) of
Holdings, the Borrower or such Subsidiary, as applicable, and such other Person.

    
“Administrative Agent” means Bank of America in its capacity as administrative
agent under any of the Loan Documents, or any successor administrative agent.

    
“Administrative Agent’s
Office” means the Administrative Agent’s
address and, as appropriate, account as set forth on Schedule 10.02, or such other address
or account as the Administrative Agent may from time to time notify to the
Borrower and the Lenders. 

    
“Administrative
Questionnaire” means an Administrative
Questionnaire in substantially the form approved by the Administrative Agent.

    
“Affiliate” means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. 

1

     “Aggregate Commitments” means the Commitments of all the Lenders. 

    
“Agreement” means this Credit Agreement. 

    
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction
applicable to the Borrower or its Subsidiaries from time to time concerning or
relating to bribery or corruption. 

    
“Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments
represented by such Lender’s Commitment at such time, subject to adjustment as
provided in Section 2.14. If the commitment of each Lender to make Loans has been
terminated pursuant to Section
8.02 or if the Aggregate Commitments have
expired, then the Applicable Percentage of each Lender shall be determined based
on the Applicable Percentage of such Lender most recently in effect, giving
effect to any subsequent assignments. The initial Applicable Percentage of each
Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable. 

    
“Applicable Rate” means, from time to time, the following percentages per
annum, based upon the Consolidated Leverage Ratio as set forth below:

	Applicable Rate
	Pricing	Consolidated	Commitment	Eurodollar	Base Rate +
	Level	Leverage Ratio	Fee	Rate +	
	1	
      Less than 1.00 to
      1.00
	0.375%	1.625%	0.625%
	
      2
	
      Greater than or equal to
      1.00 to 1.00 but less than 2.00 to 1.00 
	
      0.375%
	
      2.125%
	
      1.125%

	
      3
	
      Greater than or equal to
      2.00 to 1.00
	
      0.425%
	
      2.625%
	
      1.625%

Any increase or decrease in the
Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall
become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a
Compliance Certificate is not delivered when due in accordance with such
Section, then, upon the request of the Required Lenders, Pricing Level 3 shall
apply as of the first Business Day after the date on which such Compliance
Certificate was required to have been delivered and in each case shall remain in
effect until the date on which such Compliance Certificate is
delivered.

2 

Notwithstanding anything to the
contrary contained in this definition, the determination of the Applicable Rate
for the period from the Closing Date through and including the first Business
Day immediately following the date a Compliance Certificate is delivered
pursuant to Section 6.02(a) for the period of four consecutive fiscal quarters ending September 30,
2013 shall be Pricing Level 1.

     Notwithstanding anything to the contrary contained in this definition,
the determination of the Applicable Rate for any period shall be subject to the
provisions of Section 2.09(b). 

    
“Approved Fund” means any Fund that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender. 

    
“Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, in its
capacity as sole lead arranger and sole book manager. 

    
“Assignment and
Assumption” means an assignment and
assumption entered into by a Lender and an Eligible Assignee (with the consent
of any party whose consent is required by Section 10.06(b)), and accepted by the
Administrative Agent, in substantially the form of Exhibit E or any other form (including
electronic documentation generated by MarkitClear or other electronic platform)
approved by the Administrative Agent. 

    
“Attributable
Indebtedness” means, on any date, (a) in
respect of any capital lease of any Person, the capitalized amount thereof that
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the
capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease were accounted for as a capital lease.

    
“Audited Financial
Statements” means the audited consolidated
balance sheet of Holdings and its Subsidiaries for the fiscal year ended
December 31, 2012, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal year of Holdings
and its Subsidiaries, including the notes thereto. 

    
“Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate
Commitments pursuant to Section
2.05, and (c) the date of termination of the
commitment of each Lender to make Loans pursuant to Section 8.02. 

    
“Baccio Corporation” means Baccio Corporation, a Delaware
corporation. 

     “Bank of America” means Bank of America, N.A. and its successors. 

    
“Base Rate” means for any day a fluctuating rate per annum equal to the
highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its “prime rate,” and (c) the Eurodollar Rate plus 1.00%. The “prime
rate” is a rate set by Bank of America based upon various factors including Bank
of America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such prime rate
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.

3

     “Base Rate Committed
Loan” means a Committed Loan that is a Base
Rate Loan. 

    
“Base Rate Loan” means a Loan that bears interest at a rate based on the Base
Rate. 

    
“Borrower” has the meaning specified in the introductory paragraph hereto.

    
“Borrower Materials” has the meaning specified in Section 6.02. 

    
“Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context
may require. 

    
“Business Day” means any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day that is also a
London Banking Day.

    
“Capital Expenditures” means, with respect to any Person for any period, any
expenditure that, in conformity with GAAP, is required to be capitalized and
reflected in the property, plant and equipment or similar fixed or capital asset
on the consolidated balance sheet of Holdings and its Subsidiaries (excluding
normal replacements and maintenance which are properly charged to current
operations and excluding Acquisitions and Investments).

    
“Cash Equivalents” means any of the following types of Investments, to the
extent owned by the Borrower or any of its Subsidiaries free and clear of all
Liens (other than Permitted Liens): 

    
(a) readily marketable obligations issued or directly and fully
guaranteed or insured by the United States of America or the State of Israel or
any agency or instrumentality thereof having maturities of not more than 365
days from the date of acquisition thereof; provided that the full faith and
credit of the United States of America or the State of Israel is pledged in
support thereof; 

    
(b) time deposits and demand deposits with, or insured certificates of
deposit or bankers’ acceptances or notes of, any commercial bank that (i) (A) is
a Lender or (B) is organized under the laws of the United States of America, any
state thereof, the District of Columbia or the State of Israel or is the
principal banking subsidiary of a bank holding company organized under the laws
of the United States of America, any state thereof, the District of Columbia or
the State of Israel, (ii) issues (or the parent of which issues) commercial
paper rated as described in clause
(c) of this definition and (iii) has combined
capital and surplus of at least $500,000,000, in each case with maturities of
not more than 360 days from the date of acquisition thereof; 

4

     (c) commercial
paper, demand notes, master notes, promissory notes or other short-term debt
obligations issued by any Person organized under the laws of any state of the
United States of America or the State of Israel and rated at least “Prime-1” (or
the then equivalent grade) by Moody's Investors Service, Inc. and any successor
thereto (“Moody’s”) or at least “A-1” (or the
then equivalent grade) by Standard & Poor’s Financial Services LLC, a
subsidiary of The McGraw-Hill Companies, Inc. and any successor thereto
(“S&P”)
or rated as an equivalent rating by a recognized rating agency in the State of
Israel, in each case with maturities of not more than 360 days from the date of
acquisition thereof; and 

    
(d) Investments, classified in accordance with GAAP as current assets of
the Borrower or any of its Subsidiaries, in money market investment programs
which are administered by financial institutions that have the highest rating
obtainable from either Moody’s or S&P or by a recognized rating agency in
the State of Israel, and the portfolios of which are limited solely to
Investments of the character, quality and maturity described in clauses (a),
(b) and
(c) of this
definition. 

    
“Cash Management
Agreement” means any agreement to provide
cash management services, including treasury, depository, overdraft, credit or
debit card, electronic funds transfer and other cash management arrangements.

    
“Cash Management Bank” means any Person that, (a) at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, or (b) at the
time it (or its Affiliate) becomes a Lender, is a party to a Cash Management
Agreement, in each case in its capacity as a party to such Cash Management
Agreement. 

    
“Change in Law” means the occurrence, after the date of this Agreement, of
any of the following: (a) the adoption or taking effect of any law, rule,
regulation or treaty, (b) any change in any law, rule, regulation or treaty or
in the administration, interpretation, implementation or application thereof by
any Governmental Authority or (c) the making or issuance of any request, rule,
guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided that notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (y) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory authorities, in each case pursuant to Basel
III, shall in each case be deemed to be a “Change in Law”, regardless of the
date enacted, adopted or issued.

    
“Change of Control” means an event or series of events by which: 

    
(a) any “person” or “group” (as such terms are used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit
plan of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan)
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, except that a person or group shall be deemed
to have “beneficial ownership” of all securities that such person or group has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time (such right, an “option right”)), directly or
indirectly, of 35% or more of the equity securities of Holdings entitled to vote
for members of the board of directors or equivalent governing body of Holdings
on a fully-diluted basis (and taking into account all such securities that such
person or group has the right to acquire pursuant to any option right); or

5

     (b) during any
period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of Holdings cease to be composed of
individuals (i) who were members of that board or equivalent governing body on
the first day of such period, (ii) whose election or nomination to that board or
equivalent governing body was approved by individuals referred to in
clause (i)
above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses
(i) and (ii) above constituting at the time of
such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or
equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors); or 

    
(c) Holdings shall fail to directly own 100% of the Equity Interests of
the Borrower. 

    
“Closing Date” means the first date all the conditions precedent in
Section 4.01 are satisfied or waived in accordance with Section 10.01. 

    
“Code” means the Internal Revenue Code of 1986. 

    
“Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrower pursuant to Section
2.01, and (b) purchase participations in
Swing Line Loans, in an aggregate principal amount at any one time outstanding
not to exceed the amount set forth opposite such Lender’s name on
Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement. 

    
“Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans
of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period, made by each of the Lenders pursuant to Section 2.01. 

    
“Committed Loan” has the meaning specified in Section 2.01. 

    
“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a
conversion of Committed Loans from one Type to the other, or (c) a continuation
of Eurodollar Rate Loans, pursuant to Section
2.02(a), which, if in writing, shall be
substantially in the form of Exhibit
A. 

    
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1
et seq.), as amended from time to time, and any
successor statute.

6 

      
“Compliance Certificate” means a certificate substantially in the form of
Exhibit D.

      
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured
by net income (however denominated) or that are franchise Taxes or branch
profits Taxes. 

      
“Consolidated EBITDA” means, for any period, for Holdings and its Subsidiaries on
a consolidated basis, an amount equal to Consolidated Net Income for such period
plus (a)
the following to the extent deducted in calculating such Consolidated Net
Income: (i) Consolidated Interest Charges for such period, (ii) the provision
for Federal, state, local and foreign income taxes payable by Holdings and its
Subsidiaries for such period, (iii) depreciation and amortization expense, (iv)
other non-recurring expenses of Holdings and its Subsidiaries reducing such
Consolidated Net Income which do not represent a cash item in such period or any
future period, (v) non-cash stock-based compensation expenses for such period,
(vi) any actual transaction costs or expenses paid in such period in connection
with Permitted Acquisitions or Investments and any Required Disposition
permitted hereunder, so long as the Borrower provides the Administrative Agent
with a detailed summary of such costs and expenses within forty-five (45) days
of closing such Permitted Acquisition or Investment or Required Disposition,
(vii) any other extraordinary or non-recurring non-cash expenses or losses of
Holdings and its Subsidiaries incurred or charged in such period, (viii) any
other extraordinary or non-recurring cash expenses or losses of Holdings and its
Subsidiaries incurred or charged in such period, in an amount not to exceed
$5,000,000 per annum, and (ix) the MakerBot Earnout and other earnouts or other
deferred payment obligations in connection with Permitted Acquisitions or
Investments measured or contingent in whole or in part by events or performance
occurring after such Acquisition or Investment; and minus (b) the following to the extent
included in calculating such Consolidated Net Income: (i) Federal, state, local
and foreign income tax credits of Holdings and its Subsidiaries for such period,
(ii) all non-cash items increasing Consolidated Net Income for such period, and
(iii) all extraordinary items of gain of Holdings and its Subsidiaries whether
cash or non-cash items incurred or charged in such period. All components of
Consolidated EBITDA for any fiscal period shall include or exclude, as the case
may be, without duplication, such components of Consolidated EBITDA attributable
to any Subsidiary acquired or Investment consummated during such fiscal period
or any business or assets that have been disposed of after the first day of such
fiscal period and prior to the end of such fiscal period, determined as follows:
(A) in the case of the merger of Objet Ltd. and Stratasys, Inc. completed in
December of 2012, determined as if such merger has been consummated on January
1, 2012; (B) in the case of the merger transaction contemplated by the MakerBot
Merger Agreement, determined on a pro forma basis as if such transaction had
been consummated on July 1, 2013; and (C) with respect to any other Subsidiary
acquired or Investment consummated after the Closing Date, determined on a pro
forma basis as if such transaction had been consummated on the first day of the
relevant fiscal quarter. 

      
“Consolidated Fixed Charge Coverage
Ratio” means, as of any date of
determination, the ratio of (a) (i) Consolidated EBITDA for the period of the
four prior fiscal quarters ending on such date, less (ii) Capital Expenditures made
during such period to (b) (i) Consolidated Interest Charges for such period,
plus (ii)
any Restricted Payments paid by Holdings, the Borrower or any of
their Subsidiaries in such period, plus (iii) Federal, state, local and
foreign income taxes paid by Holdings or any Subsidiary in cash during such
period, plus (iv) the aggregate principal amount of all regularly scheduled principal
payments of Consolidated Funded Indebtedness required to be made during such
period (excluding repayments of principal under this
Agreement).

7 

      
“Consolidated Funded
Indebtedness” means, as of any date of
determination, for Holdings and its Subsidiaries on a consolidated basis, the
sum of (a) the outstanding principal amount of all obligations, whether current
or long-term, for borrowed money (including Obligations hereunder) and all
obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments (excluding intercompany Indebtedness permitted under
Section 7.03(h)), plus (b) all purchase money Indebtedness, plus (c) all direct, non-contingent
obligations arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments,
plus (d)
all obligations in respect of the deferred purchase price of property or
services, to the extent that such obligations are included as Indebtedness on
the balance sheet of Holdings and its Subsidiaries in accordance with GAAP
(other than (i) trade accounts payable in the ordinary course of business, (ii)
deferred compensation, (iii) the MakerBot Earnout and (iv) any earnout payment
made in connection with a Permitted Acquisition or Investment if such earnout is
payable solely in common stock of Holdings or its Subsidiaries), plus (e) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations,
plus (f)
without duplication, all Guarantees with respect to outstanding Indebtedness of
the types specified in clauses
(a) through (e) above of Persons other than
Holdings or any Subsidiary, plus (g) all Indebtedness of the types
referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint
venture that is itself a corporation or limited liability company) in which
Holdings or a Subsidiary is a general partner or joint venturer, unless and to
the extent such Indebtedness is expressly made non-recourse to Holdings or such
Subsidiary, minus (h) the excess of (i) an amount (not less than zero) equal to all
unrestricted cash and Cash Equivalents held by the Loan Parties in the United
States over
(ii) $50,000,000, minus (i) an amount (not less than zero) equal to sixty-five
percent (65%) of all unrestricted cash and Cash Equivalents held by the Loan
Parties in Israel; provided, that the total amount of clauses (h) and (i) shall in no event
reduce the amount of Consolidated Funded Indebtedness by more than $100,000,000.

      
“Consolidated Interest Charges” means, for any period, for Holdings and its Subsidiaries on
a consolidated basis, the sum of (a) all interest, premium payments, debt
discount, fees, charges and related expenses of Holdings and its Subsidiaries in
connection with borrowed money (including capitalized interest), other than any
such amounts related to intercompany Indebtedness permitted pursuant to
Section 7.03(h), in each case to the extent treated as interest in accordance with GAAP,
plus (b)
the portion of rent expense of Holdings and its Subsidiaries with respect to
such period under capital leases that is treated as interest in accordance with
GAAP. 

      
“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the
period of the four fiscal quarters most recently ended. 

      
“Consolidated Net Income” means, for any period, for Holdings, the Borrower and their
Subsidiaries on a consolidated basis, the net income of Holdings, the Borrower
and their Subsidiaries determined in accordance with GAAP for that
period.

8 

      
“Contractual Obligation” means, as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or other undertaking to
which such Person is a party or by which it or any of its property is bound.

      
“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. 

      
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect, including Israel’s Companies
Ordinance [New Version], 5743-1983 and Bankruptcy Ordinance [New Version],
5740-1980, and regulations thereunder. 

      
“Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default. 

      
“Default Rate” means an interest rate equal to (a) the Base Rate plus (b) the Applicable
Rate, if any, applicable to Base Rate Loans plus (c) 2% per annum; provided, however, that with respect
to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to
the interest rate (including any Applicable Rate) otherwise applicable to such
Loan plus
2% per annum. 

      
“Defaulting Lender” means, subject to Section
2.14(b), any Lender that (a) has failed to
(i) fund all or any portion of its Loans within two Business Days of the date
such Loans were required to be funded hereunder unless such Lender notifies the
Administrative Agent and the Borrower in writing that such failure is the result
of such Lender’s determination that one or more conditions precedent to funding
(each of which conditions precedent, together with any applicable default, shall
be specifically identified in such writing) has not been satisfied, or (ii) pay
to the Administrative Agent, the Swing Line Lender or any other Lender any other
amount required to be paid by it hereunder (including in respect of its
participation in Swing Line Loans) within two Business Days of the date when
due, (b) has notified the Borrower, the Administrative Agent or the Swing Line
Lender in writing that it does not intend to comply with its funding obligations
hereunder, or has made a public statement to that effect (unless such writing or
public statement relates to such Lender’s obligation to fund a Loan hereunder
and states that such position is based on such Lender’s determination that a
condition precedent to funding (which condition precedent, together with any
applicable default, shall be specifically identified in such writing or public
statement) cannot be satisfied), (c) has failed, within three Business Days
after written request by the Administrative Agent or the Borrower, to confirm in
writing to the Administrative Agent and the Borrower that it will comply with
its prospective funding obligations hereunder (provided that such Lender shall cease
to be a Defaulting Lender pursuant to this clause (c) upon receipt of such
written confirmation by the Administrative Agent and the Borrower), or (d) has,
or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii)
had appointed for it a receiver, custodian, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with
reorganization or liquidation of its business or assets, including the Federal
Deposit Insurance Corporation or any other state or federal regulatory authority
acting in such a capacity; provided that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any Equity
Interest in that Lender or any direct or indirect parent company thereof by a
Governmental Authority so long as such ownership interest does not result in or
provide such Lender with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of attachment on its
assets or permit such Lender (or such Governmental Authority) to reject,
repudiate, disavow or disaffirm any contracts or agreements made with such
Lender. Any determination by the Administrative Agent that a Lender is a
Defaulting Lender under any one or more of clauses (a) through (d) above, and of the
effective date of such status, shall be conclusive and binding absent manifest
error, and such Lender shall be deemed to be a Defaulting Lender (subject to
Section 2.14(b)) as of the date established therefor by the Administrative Agent in a
written notice of such determination, which shall be delivered by the
Administrative Agent to the Borrower, the Swing Line Lender and each other
Lender promptly following such determination.

9 

      
“Designated Jurisdiction” means any country or territory to the extent that such
country or territory itself is the subject of any Sanction. 

      
“Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith. 

      
“Dollar”
and “$”
mean lawful money of the United States. 

      
“Eligible Assignee” means any Person that meets the requirements to be an assignee under
Section 10.06(b)(iii), (v) and (vii) (subject to such consents, if any, as may be required under
Section 10.06(b)(iii)). 

      
“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems. 

      
“Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower, any other Loan Party or any of their respective
Subsidiaries directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing. 

10 

      
“Equity Interests” means, with respect to any Person, all of the shares of capital stock
of (or other ownership or profit interests (other than royalty and similar
profit interests) in) such Person, all of the warrants, options or other rights
for the purchase or acquisition from such Person of shares of capital stock of
(or other ownership or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests in) such Person or warrants, rights or options for
the purchase or acquisition from such Person of such shares (or such other
interests), and all of the other ownership or profit interests (other than
royalty and similar profit interests) in such Person (including partnership,
member or trust interests therein), whether voting or nonvoting, and whether or
not such shares, warrants, options, rights or other interests are outstanding on
any date of determination. 

      
“ERISA”
means the Employee Retirement Income Security Act of 1974. 

      
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or (c) of the
Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code). 

      
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to
Section 4063 of ERISA during a plan year in which such entity was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations
that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the treatment
of a Pension Plan amendment as a termination under Section 4041 or 4041A of
ERISA; (e) the institution by the PBGC of proceedings to terminate a Pension
Plan; (f) any event or condition which allows under Section 4042 of ERISA for
the institution of proceedings to terminate, or for the appointment of a trustee
to administer, any Pension Plan; (g) the determination that any Pension Plan is
considered an at-risk plan or a plan in endangered or critical status within the
meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of
ERISA; or (h) the imposition of any liability for failure to comply with Title
IV of ERISA, other than for PBGC premiums due but not delinquent under Section
4007 of ERISA, upon the Borrower or any ERISA Affiliate. 

      
“Eurodollar Rate” means: 

      
(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per
annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor
rate, which rate is approved by the Administrative Agent in its reasonable
discretion, as published on the applicable Reuters screen page (or such other
commercially available source providing such quotations as may be designated by
the Administrative Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for
Dollar deposits (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period; and 

      
(b) for any interest calculation with respect to a Base Rate Loan on any date,
the rate per annum equal to LIBOR, at approximately 11:00 a.m., London time
determined two Business Days prior to such date for U.S. Dollar deposits with a
term of one month commencing that day;

11 

provided that to the extent a comparable or successor rate is approved by the
Administrative Agent in its reasonable discretion in connection herewith, the
approved rate shall be applied to the applicable Interest Period in a manner
consistent with market practice; provided, further that to the extent such market
practice is not administratively feasible for the Administrative Agent, such
approved rate shall be applied to the applicable Interest Period as otherwise
reasonably determined by the Administrative Agent. 

      
“Eurodollar Rate Loan” means a Committed Loan that bears interest at a rate based
on clause (a) of the definition of “Eurodollar Rate.” 

      
“Event of Default” has the meaning specified in Section
8.01. 

      
“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation
if, and to the extent that, all or a portion of the Guaranty of such Guarantor
of, or the grant by such Guarantor of a security interest to secure, such Swap
Obligation (or any Guaranty thereof) is or becomes illegal under the Commodity
Exchange Act or any rule, regulation or order of the Commodity Futures Trading
Commission (or the application or official interpretation of any thereof) by
virtue of such Guarantor’s failure for any reason to constitute an “eligible
contract participant” as defined in the Commodity Exchange Act (determined after
giving effect to Section 10.19 and any other “keepwell, support or other agreement” for the
benefit of such Guarantor and any and all Guarantees of such Guarantor’s Swap
Obligations by other Loan Parties) at the time the Guaranty of such Guarantor,
or a grant by such Guarantor of a security interest, becomes effective with
respect to such Swap Obligation. If a Swap Obligation arises under a master
agreement governing more than one swap, such exclusion shall apply only to the
portion of such Swap Obligation that is attributable to swaps for which such
Guaranty or security interest is or becomes excluded in accordance with the
first sentence of this definition. 

      
“Excluded Taxes” means any of the following Taxes imposed on or with respect to any
Recipient or required to be withheld or deducted from a payment to a Recipient,
(a) Taxes imposed on or measured by net income (however denominated), franchise
Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such
Recipient being organized under the laws of, or having its principal office or,
in the case of any Lender, its Lending Office located in, the jurisdiction
imposing such Tax (or any political subdivision thereof) or (ii) that are Other
Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes
imposed on amounts payable to or for the account of such Lender with respect to
an applicable interest in a Loan or Commitment pursuant to a law in effect on
the date on which (i) such Lender acquires such interest in the Loan or
Commitment (other than pursuant to an assignment request by the Borrower under
Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to
the extent that, pursuant to Section
3.01(a)(ii), (a)(iii) or (c), amounts with respect to such
Taxes were payable either to such Lender’s assignor immediately before such
Lender became a party hereto or to such Lender immediately before it changed its
Lending Office, (c) Taxes attributable to such Recipient’s failure to comply
with Section 3.01(f) and (d) any U.S. federal withholding Taxes imposed pursuant
to FATCA. 

12 

      
“Facility Termination Date” means the date as of which all of the following shall have
occurred: (a) the Aggregate Commitments have terminated, and (b) all Obligations
have been paid in full (other than (x) contingent indemnification and contingent
expense obligations and (y) obligations, debts, covenants, duties and
liabilities under Related Cash Management Agreements and Related Hedge
Agreements).

      
“FASB ASC”
means the Accounting Standards Codification of the Financial Accounting
Standards Board. 

      
“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement
(or any amended or successor version that is substantively comparable and not
materially more onerous to comply with), any current or future regulations or
official interpretations thereof and any agreements entered into pursuant to
Section 1471 (b) (1) of the Code. 

      
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate (rounded upward, if necessary,
to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on
such transactions as determined by the Administrative Agent. 

      
“Fee Letter” means the letter agreement, dated July 25, 2013, among the Borrower,
the Administrative Agent and the Arranger. 

      
“Foreign Lender” means a Lender that is organized under the laws of a jurisdiction other
than the United States. For purposes of this definition, the United States, each
State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction. 

      
“Foreign Obligor” means a Loan Party that is organized under the laws of a jurisdiction
other than the United States, a State thereof or the District of Columbia.

      
“FRB” means
the Board of Governors of the Federal Reserve System of the United States.

      
“Fronting Exposure” means, at any time there is a Defaulting Lender, with respect to the
Swing Line Lender, such Defaulting Lender’s Applicable Percentage of Swing Line
Loans other than Swing Line Loans as to which such Defaulting Lender’s
participation obligation has been reallocated to other Lenders in accordance
with the terms hereof. 

      
“Fund”
means any Person (other than a natural Person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its activities.

13 

        “GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are
applicable to the circumstances as of the date of determination, consistently
applied. 

        “Governmental Authority” means the
government of the United States, Israel or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government (including any supra-national bodies
such as the European Union or the European Central Bank). 

        “Guarantee” means, as to any Person,
(a) any obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part),
or (b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning. 

        “Guaranteed Parties” means,
collectively, the Administrative Agent, the Lenders, the Hedge Banks, the Cash
Management Banks and each co-agent or sub-agent appointed by the Administrative
Agent from time to time pursuant to Section
9.05. 

        “Guaranty” or “Guaranties” means,
individually or collectively, the Israeli Guaranty and the U.S. Subsidiary
Guaranty.

        “Guarantors” means, collectively, (a)
Holdings and each other Israeli Guarantor, (b) the U.S. Subsidiary Guarantors
and (c) with respect to (i) Obligations owing by any Loan Party or any
Subsidiary of a Loan Party (other than the Borrower) under any Related Hedge
Agreement or any Related Cash Management Agreement and (ii) the payment and
performance by each Specified Loan Party of its obligations under its Guaranty
with respect to all Swap Obligations under Related Hedge Agreements, the
Borrower. Notwithstanding anything to the contrary contained herein, no Inactive
Subsidiary shall be a Guarantor at any time.

14 

      
“Hazardous Materials” means all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental Law.

      
“Hedge Bank” means any Person that, (a) at the time it enters into a Swap Contract not
prohibited under Article VI or VII, is a Lender or an Affiliate of a Lender, or (b) at the time
it (or its Affiliate) becomes a Lender, is a party to a Swap Contract not
prohibited under Article VI or VII, in each case, in its capacity as a party to such Swap
Contract. 

      
“IFRS”
means international accounting standards within the meaning of IAS Regulation
1606/2002 to the extent applicable to the relevant financial statements
delivered under or referred to herein. 

      
“Inactive Subsidiary” means any U.S. Subsidiary or Israeli Subsidiary that has no
current operations and owns no properties or assets. As of the Closing Date,
each of Objet Vision Ltd. and Stratasys Advanced Technologies
Inc. is an Inactive Subsidiary. 

      
“Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in
accordance with GAAP: 

       (a) all obligations of such Person
for borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar
instruments; 

       (b) all direct or contingent
obligations of such Person arising under letters of credit (including standby
and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments; 

       (c) net obligations of such Person
under any Swap Contract; 

       (d) all obligations of such Person
to pay the deferred purchase price of property or services (other than trade
accounts payable in the ordinary course of business); 

       (e) indebtedness (excluding prepaid
interest thereon) secured by a Lien on property owned or being purchased by such
Person (including indebtedness arising under conditional sales or other title
retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse; 

       (f) capital leases and Synthetic
Lease Obligations; 

       (g) all obligations of such Person
to purchase, redeem, retire, defease or otherwise make
any payment in respect of any Equity Interest in such Person or any other
Person, valued, in the case of a redeemable preferred interest, at the greater
of its voluntary or involuntary liquidation preference plus accrued and unpaid
dividends, other than any obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity Interest
in such Person in connection with any compensation plan provided to employees,
officers, directors or other service providers; and 

       (h) all Guarantees of
such Person in respect of any of the foregoing. 

15

      
For all purposes hereof, the Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer, unless and to the extent such
Indebtedness is expressly made non-recourse to such Person. The amount of any
net obligation under any Swap Contract on any date shall be deemed to be the
Swap Termination Value thereof as of such date. The amount of any capital lease
or Synthetic Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date. 

      
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect
to any payment made by or on account of any obligation of any Loan Party under
any Loan Document and (b) to the extent not otherwise described in
clause (a),
Other Taxes. 

      
“Indemnitees” has the meaning specified in Section
10.04(b). 

      
“Information” has the meaning specified in Section
10.07. 

      
“Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date;
provided,
however,
that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base
Rate Loan (including a Swing Line Loan), the last Business Day of each March,
June, September and December and the Maturity Date. 

      
“Interest Period” means as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a
Eurodollar Rate Loan and ending on the date one, two, three or six months
thereafter (in each case, subject to availability), as selected by the Borrower
in its Committed Loan Notice; provided that: 

       (i) any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless, in the case of a Eurodollar Rate Loan, such
Business Day falls in another calendar month, in which case such Interest Period
shall end on the next preceding Business Day; 

       (ii) any Interest Period pertaining
to a Eurodollar Rate Loan that begins on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest Period;
and 

       (iii) no Interest Period shall
extend beyond the Maturity Date. 

16

      
“Investment” means, as to any Person, any direct or indirect acquisition or
investment by such Person, whether by means of (a) the purchase or other
acquisition of capital stock or other securities of another Person, or (b) a
loan, advance or capital contribution to, Guarantee or assumption of debt of, or
purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture interest
in such other Person and any arrangement pursuant to which the investor
Guarantees Indebtedness of such other Person. For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment. 

      
“IP Rights”
has the meaning specified in Section
5.18. 

      
“IRS” means
the United States Internal Revenue Service. 

      
“Israeli Guarantors” means, collectively, Holdings and each Subsidiary of Holdings that is
an Israeli Subsidiary (whether now existing or hereafter created or acquired)
who from time to time becomes a party to the Israeli Guaranty, provided, however, that no Inactive
Subsidiary shall be a Guarantor. 

      
“Israeli Guaranty” means the Israeli Guaranty Agreement of even date herewith executed by
the Israeli Guarantors in favor of the Administrative Agent for the benefit of
the Guaranteed Parties, substantially in the form of Exhibit F-1, as supplemented from time
to time by execution and delivery of Israeli Guaranty Joinder Agreements.

      
“Israeli Guaranty Joinder
Agreement” means each Israeli Guaranty
Joinder Agreement, substantially in the form thereof attached to the Israeli
Guaranty, executed and delivered by an Israeli Guarantor pursuant to
Section 6.13 or otherwise. 

      
“Israeli Subsidiary” means any Subsidiary of Holdings that is organized under the laws of
Israel or any political subdivision thereof. 

      
“Laws”
means, collectively, all international, foreign (including Israeli), Federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law. 

      
“Lender”
has the meaning specified in the introductory paragraph hereto and, unless the
context requires otherwise, includes the Swing Line Lender. 

      
“Lending Office” means, as to any Lender, the foreign or domestic office or offices of
such Lender or any Affiliate thereof described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify the Borrower and the Administrative Agent. 

17 

     “LIBOR” has the meaning specified in the definition of Eurodollar Rate.

    
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or preferential arrangement in the nature of a security interest
(including any conditional sale or other title retention agreement, any
easement, right of way or other encumbrance on title to real property, and any
financing lease having substantially the same economic effect as any of the
foregoing). 

    
“Loan” means an extension of credit by a Lender to the Borrower under
Article II
in the form of a Committed Loan or a Swing Line Loan. 

    
“Loan Documents” means this Agreement, each Note, the Fee Letter, and the
Guaranties.

    
“Loan Parties” means, collectively, the Borrower and each Guarantor.

    
“London Banking Day” means any day on which dealings in Dollar deposits are
conducted by and between banks in the London interbank eurodollar
market.

    
“MakerBot Earnout” means the payments and other consideration payable under (a)
Section 1.8 and Exhibit C to the MakerBot Merger Agreement, (b) Section 1.9 of
the MakerBot Merger Agreement, (c) Section 9.1 of the MakerBot Merger Agreement,
and (d) the Performance Bonus Plan referenced in Section 5.17 to the MakerBot
Merger Agreement. 

    
“MakerBot Entities” means Baccio Corporation and each of its direct and indirect
Subsidiaries. 

    
“MakerBot Merger
Agreement” means that certain Agreement and
Plan of Merger, by and among Holdings, Baccio Merger Corporation, Baccio
Corporation, Cooperation Technology Corporation and Shareholder Representative
Services LLC, as Seller Representative, dated June 19, 2013. 

    
“MakerBot U.S. Entities” means Baccio Corporation and any Subsidiary of Baccio
Corporation that is organized under the laws of any political subdivision of the
United States. 

    
“Material Adverse
Effect” means (a) a material adverse change
in, or a material adverse effect upon, the operations, business, properties,
liabilities (actual or contingent), condition (financial or otherwise) of
Holdings, the Borrower and their Subsidiaries taken as a whole; (b) a material
impairment of the rights and remedies of the Administrative Agent or any Lender
under any loan documentation, or of the ability of the Borrower or the
Guarantors, taken as a whole, to perform their obligations under any Loan
Document to which they are a party; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against any Loan Party of
any Loan Document to which it is a party. 

    
“Maturity Date” means November 7, 2018; provided, however, that if such date is not a
Business Day, the Maturity Date shall be the next preceding Business Day.

    
“Multiemployer Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes
or is obligated to make contributions, or during the preceding five plan years,
has made or been obligated to make contributions.

18 

     “Multiple Employer Plan” means a Plan which has two or more contributing sponsors
(including the Borrower or any ERISA Affiliate) at least two of whom are not
under common control, as such a plan is described in Section 4064 of ERISA.

    
“No-Action Letter” means that certain no-action letter of the Israeli Antitrust
Commissioner, dated February 28, 2011, regarding “consortium arrangements”, as
may be amended, restated, modified or supplemented from time to time, or any
replacement thereof that hereinafter may be promulgated. A copy of the No-Action
Letter as of the Closing Date is attached hereto as Exhibit I. 

    
“Non-Consenting Lender” means any Lender that does not approve any consent, waiver
or amendment that (a) requires the approval of all Lenders or all affected
Lenders in accordance with the terms of Section 10.01 and (b) has been
approved by the Required Lenders. 

    
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting
Lender at such time. 

    
“Note” means a promissory note made by the Borrower in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of
Exhibit C.

    
“Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan, Related Cash Management Agreement or Related Hedge
Agreement, in each case whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding; provided that the “Obligations” of a Guarantor shall exclude any
Excluded Swap Obligations with respect to such Guarantor. 

    
“OFAC” means the Office of Foreign Assets Control of the United States
Department of the Treasury. 

    
“Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); and (c) with
respect to any partnership, joint venture, trust or other form of business
entity, the partnership, joint venture or other applicable agreement of
formation or organization and any agreement, instrument, filing or notice with
respect thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction).

19 

     “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the
jurisdiction imposing such Tax (other than connections arising from such
Recipient having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any
Loan Document, or sold or assigned an interest in any Loan or Loan Document).

    
“Other Taxes” means all present or future stamp, court or documentary, intangible,
recording, filing or similar Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect
to, any Loan Document, except any such Taxes that are Other Connection Taxes
imposed with respect to an assignment (other than an assignment made pursuant to
Section 3.06). 

    
“Outstanding Amount” means, with respect to Committed Loans and Swing Line Loans
on any date, the aggregate outstanding principal amount thereof after giving
effect to any borrowings and prepayments or repayments of Committed Loans and
Swing Line Loans, as the case may be, occurring on such date. 

    
“Participant” has the meaning specified in Section
10.06(d).

    
“Participant Register” has the meaning specified in Section 10.06(d).

    
“PBGC” means the Pension
Benefit Guaranty Corporation. 

    
“Pension Act” means the Pension Protection Act of 2006. 

     “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension
Plans and set forth in, with respect to plan years ending prior to the effective
date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each
as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431,
432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA. 

    
“Pension Plan” means any employee pension benefit plan (including a
Multiple Employer Plan but excluding any Multiemployer Plan) that is maintained
or is contributed to by the Borrower and any ERISA Affiliate and is either
covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Code. 

    
“Permitted Acquisition or
Investment” means an Acquisition or
Investment made in compliance with the requirements of Section 7.02.

    
“Permitted Liens” has the meaning set forth in Section 7.01. 

    
“Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity. 

20

     “Plan” means any employee benefit plan within the meaning of Section 3(3) of
ERISA (including a Pension Plan but excluding any Multiemployer Plan),
maintained for employees of the Borrower or any ERISA Affiliate or any such Plan
to which the Borrower or any ERISA Affiliate is required to contribute on behalf
of any of its employees. 

    
“Platform” has the meaning specified in Section
6.02. 

    
“Public Lender” has the meaning specified in Section 6.02. 

    
“Qualified ECP
Guarantor” shall mean, at any time, each Loan
Party with total assets exceeding $10,000,000 or that qualifies at such time as
an “eligible contract participant” under the Commodity Exchange Act and can
cause another person to qualify as an “eligible contract participant” at such
time under §1a(18)(A)(v)(II) of the Commodity Exchange Act. 

    
“Recipient” means the Administrative Agent, any Lender, or any other recipient of
any payment to be made by or on account of any obligation of any Loan Party
hereunder. 

    
“Register” has the meaning specified in Section
10.06(c). 

    
“Related Cash Management
Agreement” means any Cash Management
Agreement that is entered into by and between any Loan Party and any Cash
Management Bank. 

    
“Related Hedge
Agreement” means any Swap Contract permitted
under Article VII that is entered into by and between any Loan Party and any Hedge Bank.

    
“Related Parties” means, with respect to any Person, such Person’s Affiliates
and the partners, directors, officers, employees, agents, trustees,
administrators, managers, advisors and representatives of such Person and of
such Person’s Affiliates. 

    
“Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA, other than events for which the 30 day notice period has been waived.

    
“Request for Borrowing” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, and (b) with respect
to a Swing Line Loan, a Swing Line Loan Notice. 

    
“Required Disposition” means any Disposition of assets by Holdings or any of its
Subsidiaries that is necessary or desirable due to any requirement of Law in
order to facilitate the consummation of a Permitted Acquisition or Investment.

    
“Required Lenders” means, at any time, Lenders having Total Credit Exposures
representing more than 50% of the Total Credit Exposures of all Lenders. The
Total Credit Exposure of any Defaulting Lender shall be disregarded in
determining Required Lenders at any time; provided that, the amount of any
participation in any Swing Line Loan that such Defaulting Lender has failed to
fund that have not been reallocated to and funded by another Lender shall be
deemed to be held by the Lender that is the Swing Line Lender in making such
determination. 

21 

     “Responsible Officer” means the chief executive officer, president, chief
financial officer, treasurer, assistant treasurer, controller or director of a
Loan Party and solely for purposes of the delivery of incumbency certificates pursuant
to Section 4.01, the secretary, any assistant secretary or any director of a Loan Party.
Any document delivered hereunder that is signed by a Responsible Officer of a
Loan Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party. 

    
“Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity
Interest of Holdings, the Borrower or any of their Subsidiaries, or any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other
Equity Interest, or on account of any return of capital to Holdings’
stockholders, partners or members (or the equivalent Person thereof).

    
“Revolving Credit
Exposure” means, as to any Lender at any
time, the aggregate principal amount at such time of its outstanding Committed
Loans and such Lender’s participation in Swing Line Loans at such time.

    
“Sanction(s)” means any international economic sanction administered or enforced by
the United States Government (including without limitation, OFAC), the United
Nations Security Council, the European Union, Her Majesty’s Treasury or other
relevant sanctions authority. 

    
“Sanctioned Country” means, at any time, a country or territory which is the
subject or target of any Sanctions. 

    
“Sanctioned Person” means, at any time, (a) any Person listed in any
Sanctions-related list of designated Persons maintained by OFAC, the U.S.
Department of State or by the United Nations Security Council, the European
Union or any European Union member state, (b) any Person operating, organized or
resident in a Sanctioned Country or (c) any Person controlled by any such
Person. 

    
“SEC” means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions. 

    
“Specified Loan Party” means any Loan Party that is not an “eligible contract
participant” under the Commodity Exchange Act (determined prior to giving effect
to Section 10.19). 

    
“Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Holdings.

22

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement. 

    
“Swap Obligations” means with respect to any Guarantor any obligation to pay or
perform under any agreement, contract or transaction that constitutes a “swap”
within the meaning of Section 1a(47) of the Commodity Exchange Act. 

    
“Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement
relating to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date
referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for
such Swap Contracts, as determined based upon one or more mid-market or other
readily available quotations provided by any recognized dealer in such Swap
Contracts (which may include a Lender or any Affiliate of a Lender). 

    
“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to
Section 2.03.

    
“Swing Line Lender” means Bank of America in its capacity as provider of Swing
Line Loans, or any successor swing line lender hereunder. 

    
“Swing Line Loan” has the meaning specified in Section 2.03(a). 

    
“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.03(b), which, if in writing, shall be substantially in the form of
Exhibit B.

    
“Swing Line Sublimit” means an amount equal to the lesser of (a) $25,000,000 and
(b) the Aggregate Commitments. The Swing Line Sublimit is part of, and not in
addition to, the Aggregate Commitments. 

    
“Synthetic Lease
Obligation” means the monetary obligation of
a Person under (a) a so-called synthetic, off-balance sheet or tax retention
lease, or (b) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

23

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax
or penalties applicable thereto. 

    
“Total Credit Exposure” means, as to any Lender at any time, the unused Commitments
and Revolving Credit Exposure of such Lender at such time. 

    
“Type” means, with respect to a Committed Loan, its character as a Base Rate
Loan or a Eurodollar Rate Loan. 

    
“United States” and “U.S.” mean the United States of America. 

    
“U.S. Person” means any Person that is a “United States Person” as defined in Section
7701(a)(30) of the Code. 

    
“U.S. Subsidiary” means any Subsidiary of Holdings that is organized under the
laws of any political subdivision of the United States. 

    
“U.S. Subsidiary
Guarantors” means, collectively, each
Subsidiary that is a U.S. Subsidiary (whether now existing or hereafter created
or acquired) who from time to time becomes a party to the U.S. Subsidiary
Guaranty; provided, however, that (a) no Inactive Subsidiary shall be a Guarantor; and (b) for the
period from the Closing Date through January 17, 2015, no MakerBot Entity shall
be a Guarantor and no MakerBot Entity shall be required to execute a Guaranty or
any other Loan Document. 

    
“U.S. Subsidiary
Guaranty” means the U.S. Subsidiary Guaranty
Agreement of even date herewith executed by the U.S. Subsidiary Guarantors in
favor of the Administrative Agent for the benefit of the Guaranteed Parties,
substantially in the form of Exhibit F-2, as supplemented from time to time by
execution and delivery of U.S. Subsidiary Guaranty Joinder
Agreements.

    
“U.S. Subsidiary Guaranty Joinder
Agreement” means each U.S. Subsidiary
Guaranty Joinder Agreement, substantially in the form thereof attached to the
U.S. Subsidiary Guaranty, executed and delivered by a Subsidiary pursuant to
Section 6.13 or otherwise. 

    
“U.S. Tax Compliance
Certificate” has the meaning specified in
Section 3.01(f)(ii)(B)(III). 

24

    
1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document: 

    
(a) The
definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
“include,”
“includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” The
word “will”
shall be construed to have the same meaning and effect as the word
“shall.”
Unless the context requires otherwise, (i) any definition of or reference to any
agreement, instrument or other document (including any Organization Document)
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words
“hereto,”
“herein,”
“hereof”
and “hereunder,” and words of similar import when used in any Loan Document, shall be
construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law or regulation herein
shall include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law, and shall, unless otherwise specified, refer
to such law or regulation as amended, modified or supplemented from time to
time, and, unless the context requires otherwise, shall include without
limitation (1) any applicable Israeli or foreign statute, law (including any
rules or regulations promulgated under any such statute or law), regulation,
treaty, rule, official directive, request or guideline of any of the Israeli or
foreign national, state, local, municipal, or other governmental, fiscal,
monetary or regulatory body, agency, department or regulatory, self-regulatory
or other authority or organization, whether or not having the force of law (but
if not having the force of law, one which applies generally to the class or
category of financial institutions of which any Lender or the Administrative
Agent forms a part and compliance with which is in accordance with the general
practice of those financial institutions), including the instructions of Israeli
Supervisor of Banks with respect to proper conduct of banking affairs
(“Hora’ot Nihul Bankai Takin”) if applicable to any such Person and (2) any applicable
decision of any competent court or other judicial body, and (vi) the words
“asset” and
“property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights. 

     (b) “VAT”
shall be construed as a reference to value-added tax (Israeli or foreign),
including any similar Tax which may be imposed in place thereof from time to
time. 

    
(c) The
“winding-up,” “dissolution,” “bankruptcy” or “administration” of a
person shall be construed so as to include the seeking of liquidation,
winding-up, bankruptcy, reorganization, dissolution, administration,
arrangement, freeze order (Hakpa’at
Halichim), adjustment, protection from
creditors or relief of debtors or any proceedings equivalent or analogous to any
of the foregoing under the law of the jurisdiction in which such person is
incorporated or resides, as applicable, or any jurisdiction in which such person
carries on business.

    
(d) In the
computation of periods of time from a specified date to a later specified date,
the word “from” means “from and
including;” the words “to” and “until” each mean
“to but excluding;”
and the word “through” means “to and
including.” 

    
(e) Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document. 

25

    
1.03 Accounting Terms.

     (a) Generally. All accounting terms not
specifically or completely defined herein shall be construed in conformity with,
and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the Audited Financial Statements, except as otherwise specifically
prescribed herein. Notwithstanding the foregoing, for purposes of determining
compliance with any covenant (including the computation of any financial
covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries
shall be deemed to be carried at 100% of the outstanding principal amount
thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities
shall be disregarded. 

    
(b) Changes in GAAP. If at any time any
change in GAAP (including the adoption of IFRS) would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and either
the Borrower or the Required Lenders shall so request, the Administrative Agent,
the Lenders and the Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (A)
such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (B) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth
a reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP. Without limiting the foregoing,
leases shall continue to be classified and accounted for on a basis consistent
with that reflected in the Audited Financial Statements for all purposes of this
Agreement, notwithstanding any change in GAAP relating thereto, unless the
parties hereto shall enter into a mutually acceptable amendment addressing such
changes, as provided for above. 

    
1.04 Rounding. Any
financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number). 

    
1.05 Times of Day. Unless
otherwise specified, all references herein to times of day shall be references
to Eastern time (daylight or standard, as applicable).

ARTICLE
II. THE COMMITMENTS AND BORROWINGS 

    
2.01 Committed Loans.
Subject to the terms and conditions set forth herein, each Lender severally
agrees to make loans in Dollars (each such loan, a “Committed Loan”) to the Borrower from
time to time, on any Business Day during the Availability Period, in an
aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect to any Committed Borrowing, (a) the
Outstanding Amount of all Loans shall not exceed the Aggregate Commitments, and
(b) the Revolving Credit Exposure of any Lender shall not exceed such Lender’s
Commitment. Within the limits of each Lender’s Commitment, and subject to the
other terms and conditions hereof, the Borrower may borrow under this Section
2.01, prepay under Section 2.04, and reborrow under this Section 2.01. Committed
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided
herein. 

26

    
2.02 Borrowings, Conversions and Continuations of Committed
Loans.

     (a) Each
Committed Borrowing, each conversion of Committed Loans from one Type to the
other, and each continuation of Eurodollar Rate Loans shall be made upon the
Borrower’s irrevocable notice to the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Administrative Agent not
later than 11:00 a.m. (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any
conversion of Base Rate Committed Loans to Eurodollar Rate Loans, and (ii) one
Business Day prior to the requested date of any Borrowing of Base Rate Committed
Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written
Committed Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower. Each Borrowing of, conversion to or continuation of
Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof. Except as provided in Section 2.03(c), each
Borrowing of or conversion to Base Rate Committed Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each
Committed Loan Notice (whether telephonic or written) shall specify (i) whether
the Borrower is requesting a Committed Borrowing, a conversion of Committed
Loans from one Type to the other, or a continuation of Eurodollar Rate Loans,
(ii) the requested date of the Borrowing, conversion or continuation, as the
case may be (which shall be a Business Day), (iii) the principal amount of
Committed Loans to be borrowed, converted or continued, (iv) the Type of
Committed Loans to be borrowed or to which existing Committed Loans are to be
converted, and (v) if applicable, the duration of the Interest Period with
respect thereto. If the Borrower fails to specify a Type of Committed Loan in a
Committed Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Committed Loans
shall be made as, or converted to, Base Rate Loans. Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans. If the Borrower requests a Borrowing of, conversion to, or continuation
of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to specify
an Interest Period, it will be deemed to have specified an Interest Period of
one month. 

    
(b) Following receipt of a Committed Loan Notice, the Administrative Agent
shall promptly notify each Lender of the amount of its Applicable Percentage of
the applicable Committed Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify
each Lender of the details of any automatic conversion to Base Rate Loans
described in the preceding subsection. In the case of a Committed Borrowing,
each Lender shall make the amount of its Committed Loan available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Committed Loan Notice. Upon satisfaction of the applicable conditions
set forth in Section 4.02 (and, if such Borrowing is the initial Borrowing,
Section 4.01), the Administrative Agent shall make all funds so received available to
the Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower. Each Lender may, at its option, make any
Loan available to the Borrower by causing any foreign or domestic branch or
Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement.

27

     (c) Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan. During the existence of a Default, no Loans may be requested as, converted
to or continued as Eurodollar Rate Loans without the consent of the Required
Lenders. 

    
(d) The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in Bank of America’s prime rate used in determining the Base Rate
promptly following the public announcement of such change. 

    
(e) After
giving effect to all Committed Borrowings, all conversions of Committed Loans
from one Type to the other, and all continuations of Committed Loans as the same
Type, there shall not be more than ten (10) Interest Periods in effect with
respect to Committed Loans. 

    
2.03 Swing Line Loans.

    
(a) The
Swing Line. Subject to the terms and
conditions set forth herein, the Swing Line Lender, in reliance upon the
agreements of the other Lenders set forth in this Section 2.03, may in its discretion
make loans (each such loan, a “Swing Line
Loan”) to the Borrower from time to time on
any Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the
Applicable Percentage of the Outstanding Amount of Committed Loans of the Lender
acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment;
provided,
however,
that (x) after giving effect to any Swing Line Loan, (i) the Outstanding Amount
of all Loans shall not exceed the Aggregate Commitments, and (ii) the Revolving
Credit Exposure of any Lender shall not exceed such Lender’s
Commitment, (y)
the Borrower shall not use the proceeds of any Swing Line Loan to refinance any
outstanding Swing Line Loan, and (z) the Swing Line Lender shall not be under
any obligation to make any Swing Line Loan if it shall determine (which
determination shall be conclusive and binding absent manifest error) that it
has, or by such Borrowing may have, Fronting Exposure. Within the foregoing
limits, and subject to the other terms and conditions hereof, the Borrower may
borrow under this Section 2.03, prepay under Section
2.04, and reborrow under this Section 2.03. Each Swing
Line Loan shall be a Base Rate Loan. Immediately upon the making of a Swing Line
Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the Swing Line Lender a risk participation in such
Swing Line Loan in an amount equal to the product of such Lender’s Applicable
Percentage times the amount of such Swing Line Loan. 

28

    
(b) Borrowing Procedures. Each Swing Line
Borrowing shall be made upon the Borrower’s irrevocable notice to the
Swing Line Lender and the Administrative Agent, which may be given by telephone.
Each such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. one Business Day prior to the
requested borrowing date, and shall specify (i) the amount to be borrowed, which
shall be a minimum of $100,000, and (ii) the requested borrowing date, which
shall be a Business Day. Each such telephonic notice must be confirmed promptly
by delivery to the Swing Line Lender and the Administrative Agent of a written
Swing Line Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower. Promptly after receipt by the Swing Line Lender of any
telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Swing Line Loan Notice and, if not, the Swing Line Lender
will notify the Administrative Agent (by telephone or in writing) of the
contents thereof. Unless the Swing Line Lender has received notice (by telephone
or in writing) from the Administrative Agent (including at the request of any
Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of
the limitations set forth in the first proviso to the first sentence of
Section 2.03(a), or (B) that one or more of the applicable conditions specified in
Article IV
is not then satisfied, then, subject to the terms and conditions hereof, the
Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified
in such Swing Line Loan Notice, make the amount of its Swing Line Loan available
to the Borrower. 

      
(c) Refinancing
of Swing Line Loans. 

       (i)
The Swing Line Lender at any time in its sole
discretion may request, on behalf of the Borrower (which hereby irrevocably
authorizes the Swing Line Lender to so request on its behalf), that each Lender
make a Base Rate Committed Loan in an amount equal to such Lender’s Applicable
Percentage of the amount of Swing Line Loans then outstanding. Such request
shall be made in writing (which written request shall be deemed to be a
Committed Loan Notice for purposes hereof) and in accordance with the
requirements of Section 2.02, without regard to the minimum and multiples specified
therein for the principal amount of Base Rate Loans, but subject to the
unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.02. The Swing Line Lender shall furnish the Borrower with a copy of the
applicable Committed Loan Notice promptly after delivering such notice to the
Administrative Agent. Each Lender shall make an amount equal to its Applicable
Percentage of the amount specified in such Committed Loan Notice available to
the Administrative Agent in immediately available funds (and the Administrative
Agent may apply cash collateral available with respect to the applicable Swing
Line Loan) for the account of the Swing Line Lender at the Administrative
Agent’s Office not later than 1:00 p.m. on the day specified in such Committed
Loan Notice, whereupon, subject to Section
2.03(c)(ii), each Lender that so makes funds
available shall be deemed to have made a Base Rate Committed Loan to the
Borrower in such amount. The Administrative Agent shall remit the funds so
received to the Swing Line Lender. 

       (ii)
If for any reason any Swing Line Loan cannot be
refinanced by such a Committed Borrowing in accordance with Section 2.03(c)(i), the
request for Base Rate Committed Loans submitted by the Swing Line Lender as set
forth herein shall be deemed to be a request by the
Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent
for the account of the Swing Line Lender pursuant to Section 2.03(c)(i) shall be deemed payment in
respect of such participation. 

29 

       (iii)
If any Lender fails to make available to the
Administrative Agent for the account of the Swing Line Lender any amount
required to be paid by such Lender pursuant to the foregoing provisions of this
Section 2.03(c) by the time specified in Section
2.03(c)(i), the Swing Line Lender shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the Swing Line Lender at a rate per annum equal to the greater of the Federal
Funds Rate and a rate determined by the Swing Line Lender in accordance with
banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Swing Line Lender in
connection with the foregoing. If such Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute such Lender’s
Committed Loan included in the relevant Committed Borrowing or funded
participation in the relevant Swing Line Loan, as the case may be. A certificate
of the Swing Line Lender submitted to any Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (iii) shall be conclusive
absent manifest error. 

       (iv)
Each Lender’s obligation to make Committed Loans
or to purchase and fund risk participations in Swing Line Loans pursuant to this
Section 2.03(c) shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the Swing Line Lender, the
Borrower or any other Person for any reason whatsoever, (B) the occurrence or
continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation
to make Committed Loans pursuant to this Section 2.03(c) is subject to the
conditions set forth in Section
4.02. No such funding of risk participations
shall relieve or otherwise impair the obligation of the Borrower to repay Swing
Line Loans, together with interest as provided herein. 

      
(d) Repayment
of Participations.

       (i)
At any time after any Lender has purchased and
funded a risk participation in a Swing Line Loan, if the Swing Line Lender
receives any payment on account of such Swing Line Loan, the Swing Line Lender
will distribute to such Lender its Applicable Percentage thereof in the same
funds as those received by the Swing Line Lender. 

       (ii)
If any payment received by the Swing Line Lender
in respect of principal or interest on any Swing Line Loan is required to be
returned by the Swing Line Lender under any of the circumstances described in
Section 10.05 (including pursuant to any settlement entered into by the Swing Line
Lender in its discretion), each Lender shall pay to the Swing Line Lender its
Applicable Percentage thereof on demand of the Administrative Agent,
plus
interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate. The
Administrative Agent will make such demand upon the request of the Swing Line
Lender. The obligations of the Lenders under this clause shall survive the
payment in full of the Obligations and the termination of this
Agreement.

30 

      
(e) Interest
for Account of Swing Line Lender. The Swing
Line Lender shall be responsible for invoicing the Borrower for interest on the
Swing Line Loans. Until each Lender funds its Base Rate Committed Loan or risk
participation pursuant to this Section
2.03 to refinance such Lender’s Applicable
Percentage of any Swing Line Loan, interest in respect of such Applicable
Percentage shall be solely for the account of the Swing Line Lender. 

      
(f) Payments
Directly to Swing Line Lender. The Borrower
shall make all payments of principal and interest in respect of the Swing Line
Loans directly to the Swing Line Lender (if applicable, for the ratable benefit
of the Lenders). 

      
2.04 Prepayments.

      
(a) The Borrower
may, upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Committed Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the Administrative Agent not
later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Committed
Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal
amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and
(iii) any prepayment of Base Rate Committed Loans shall be in a principal amount
of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case,
if less, the entire principal amount thereof then outstanding. Each such notice
shall specify the date and amount of such prepayment and the Type(s) of
Committed Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid,
the Interest Period(s) of such Loans. The Administrative Agent will promptly
notify each Lender of its receipt of each such notice, and of the amount of such
Lender’s Applicable Percentage of such prepayment. If such notice is given by
the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein.

      
(b) The Borrower
may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in
whole or in part without premium or penalty; provided that (i) such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall be
in a minimum principal amount of $100,000. Each such notice shall specify the
date and amount of such prepayment. If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein. 

      
(c) If for any
reason the Outstanding Amount of all Loans at any time exceeds the Aggregate
Commitments then in effect, the Borrower shall immediately prepay Loans in an
aggregate amount equal to such excess.

31 

      
(d) Upon the
incurrence of unsecured Indebtedness incurred pursuant to the offering of
convertible unsecured bonds or similar convertible securities and permitted
under Section 7.03(f) of this Agreement, if, after giving pro forma effect to such
Indebtedness, the Consolidated Leverage Ratio is greater than 2.50 to 1.00, the
Borrower shall, pursuant to Section 7.03(f)(ii), within seven Business
Days of the closing of such offering, use the proceeds from any such offering to
repay outstanding Indebtedness owing under this Agreement in an amount that will
cause the Consolidated Leverage Ratio to be less than 2.50 to 1.00 after giving
pro forma effect to such repayment. 

      
(e) Any prepayment of a Eurodollar Rate Loan in accordance with this
Section 2.04 shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05. Subject to
Section 2.14, each such prepayment with respect to Section 2.04(a), (c) or (d) shall be applied to the
Committed Loans of the Lenders in accordance with their respective Applicable
Percentages. 

      
2.05 Termination or Reduction of Commitments. The Borrower may, upon notice to the Administrative Agent,
terminate the Aggregate Commitments, or from time to time permanently reduce the
Aggregate Commitments; provided that (i) any such notice shall be received by
the Administrative Agent not later than 11:00 a.m. five (5) Business Days prior
to the date of termination or reduction, (ii) any such partial reduction shall
be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in
excess thereof, (iii) the Borrower shall not terminate or reduce the Aggregate
Commitments if, after giving effect thereto and to any concurrent prepayments
hereunder, the Outstanding Amount of all Loans would exceed the Aggregate
Commitments, and (iv) if, after giving effect to any reduction of the Aggregate
Commitments, the Swing Line Sublimit exceeds the amount of the Aggregate
Commitments, the Swing Line Sublimit shall be automatically reduced by the
amount of such excess. The Administrative Agent will promptly notify the Lenders
of any such notice of termination or reduction of the Aggregate Commitments. Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Applicable Percentage. All fees accrued until the
effective date of any termination of the Aggregate Commitments shall be paid on
the effective date of such termination. 

      
2.06 Repayment of Loans.

      
(a) The Borrower
shall repay to the Lenders on the Maturity Date the aggregate principal amount
of Committed Loans outstanding on such date. 

      
(b) To the extent
not earlier refinanced in accordance with Section 2.03(c), the Borrower shall
repay each Swing Line Loan on the earlier to occur of (i) the date ten (10)
Business Days after such Loan is made and (ii) the Maturity Date. 

      
2.07 Interest. 

      
(a) Subject to the
provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on
the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate;
(ii) each Base Rate Committed Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing
date at a rate per annum equal to the Base Rate plus the Applicable Rate; and (iii)
each Swing Line Loan shall bear interest on the outstanding principal amount
thereof from the applicable borrowing date at a rate per annum equal to the Base
Rate plus
the Applicable Rate. 

32 

      
(b) (i) If any
amount of principal of any Loan is not paid when due, whether at stated
maturity, by acceleration or otherwise, such amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws. 

       (ii)
If any amount (other than principal of any Loan)
payable by the Borrower under any Loan Document is not paid when due (after the
lapse of any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, then upon the request of the Required Lenders such
amount shall thereafter bear interest at a fluctuating interest rate per annum
at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws. 

       (iii)
Upon the request of the Required Lenders, while
any Event of Default exists (other than as set forth in clauses (b)(i) and
(b)(ii)
above), the Borrower shall pay interest on the principal amount of all
outstanding Obligations under this Agreement at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

       (iv)
Accrued and unpaid interest on past due amounts
(including interest on past due interest) shall be due and payable upon demand.

      
(c) Interest on
each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before
and after judgment, and before and after the commencement of any proceeding
under any Debtor Relief Law. 

      
2.08 Fees.

      
(a) Commitment
Fee. The Borrower shall pay to the
Administrative Agent for the ratable account of each Lender in accordance with
its Applicable Percentage, a commitment fee equal to the Applicable Rate
times the
actual daily amount by which the Aggregate Commitments exceed the sum of the
Outstanding Amount of Committed Loans (subject to adjustments under
Section 2.14). For the avoidance of doubt, the Outstanding Amount of Swing Line Loans
shall not be counted towards or considered usage of the Aggregate Commitments
for purposes of determining the commitment fee. The commitment fee shall accrue
at all times during the Availability Period, including at any time during which
one or more of the conditions in Article
IV is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the last day of the Availability Period. The commitment fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable
Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each
period during such quarter that such Applicable Rate was in effect.

33 

      
(b) Other
Fees. (i)
The Borrower shall pay to the Arranger and
the Administrative Agent for their own respective accounts fees in the amounts
and at the times specified in the Fee Letter. Such fees shall be fully earned
when paid and shall not be refundable for any reason whatsoever. 

       (ii)
The Borrower shall pay to the Lenders such fees
as shall have been separately agreed upon in writing in the amounts and at the
times so specified. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever. 

      
2.09 Computation of Interest and Fees; Retroactive Adjustments of
Applicable Rate. 

      
(a) All
computations of interest for Base Rate Loans (including Base Rate Loans
determined by reference to the Eurodollar Rate) shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion
is paid, provided that any Loan that is repaid on the same day on which it is made shall,
subject to Section 2.11(a), bear interest for one day. Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive
and binding for all purposes, absent manifest error.

      
(b) If, as a result of any restatement of or other adjustment to the financial
statements of Holdings or for any other reason, Holdings, the Borrower or the
Lenders determine that (i) the Consolidated Leverage Ratio as calculated by
Holdings or the Borrower as of any applicable date was inaccurate and (ii) a
proper calculation of the Consolidated Leverage Ratio would have resulted in
higher pricing for such period, the Borrower shall immediately and retroactively
be obligated to pay to the Administrative Agent for the ratable account of the
applicable Lenders, promptly on demand by the Administrative Agent (or, after
the occurrence of an actual or deemed entry of an order for relief with respect
to Holdings or the Borrower under the Bankruptcy Code of the United States,
automatically and without further action by the Administrative Agent or any
Lender), an amount equal to the excess of the amount of interest and fees that
should have been paid for such period over the amount of interest and fees
actually paid for such period. This paragraph shall not limit the rights of the
Administrative Agent or any Lender, as the case may be, under Section 2.07(b) or under
Article VIII. The Borrower’s obligations under this paragraph shall survive the
termination of the Aggregate Commitments and the repayment of all other
Obligations hereunder. 

      
2.10 Evidence of Debt.

      
(a) The Borrowings
made by each Lender shall be evidenced by one or more accounts or records
maintained by such Lender and by the Administrative Agent in the ordinary course
of business. The accounts or records maintained by the Administrative Agent and
each Lender shall be conclusive absent manifest error of the amount of the
Borrowings made by the Lenders to the Borrower and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations under this Agreement. In the event
of any conflict between the accounts and records maintained by any Lender and
the accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the
Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note, which shall evidence such Lender’s
Loans in addition to such accounts or records. Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

34 

      
(b) In addition to
the accounts and records referred to in subsection (a) above, each Lender and
the Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of
participations in Swing Line Loans. In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts and
records of any Lender in respect of such matters, the accounts and records of
the Administrative Agent shall control in the absence of manifest error.

      
2.11 Payments Generally; Administrative Agent’s
Clawback. 

      
(a) General. All payments to be made by
the Borrower shall be made free and clear of and without condition or deduction
for any counterclaim, defense, recoupment or setoff. Except as otherwise
expressly provided herein, all payments by the Borrower hereunder shall be made
to the Administrative Agent, for the ratable account of the respective Lenders
to which such payment is owed, at the Administrative Agent’s Office in Dollars
and in immediately available funds not later than 2:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each
Lender its Applicable Percentage (or other applicable share as provided herein)
of such payment in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by the Administrative Agent after 2:00
p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made
by the Borrower shall come due on a day other than a Business Day, payment shall
be made on the next following Business Day, and such extension of time shall be
reflected in computing interest or fees, as the case may be. 

35 

      
(b) (i)
Funding by Lenders; Presumption by
Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Committed Borrowing of Eurodollar Rate Loans (or, in the
case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the
date of such Committed Borrowing) that such Lender will not make available to
the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section
2.02 (or, in the case of a Committed
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in reliance
upon such assumption, make available to the Borrower a corresponding amount. In
such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available
funds with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment to
the Administrative Agent, at (A) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the Administrative Agent in connection with the foregoing, and (B) in
the case of a payment to be made by the Borrower, the interest rate applicable
to Base Rate Loans. If the Borrower and such Lender shall pay such interest to
the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such
interest paid by the Borrower for such period. If such Lender pays its share of
the applicable Committed Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Committed Loan included in such Committed
Borrowing. Any payment by the Borrower shall be without prejudice to any claim
the Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.

       (ii)
Payments by Borrower; Presumptions by
Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if the Borrower has not
in fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender, in immediately available funds with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative Agent, at the greater of the Federal Funds
Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation. 

       A
notice of the Administrative Agent to any Lender or the Borrower with respect to
any amount owing under this subsection
(b) shall be conclusive, absent manifest
error. 

      
(c) Failure to
Satisfy Conditions Precedent. If any Lender
makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in the foregoing provisions of this Article II, and such funds
are not made available to the Borrower by the Administrative Agent because the
conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall promptly return
such funds (in like funds as received from such Lender) to such Lender, without
interest. 

      
(d) Obligations
of Lenders Several. The obligations of the
Lenders hereunder to make Committed Loans, to fund participations in Swing Line
Loans and to make payments pursuant to Section
10.04(c) are several and not joint. The
failure of any Lender to make any Committed Loan, to fund any such participation
or to make any payment under Section
10.04(c) on any date required hereunder shall
not relieve any other Lender of its corresponding obligation to do so on such
date, and no Lender shall be responsible for the failure of any other Lender to
so make its Committed Loan, to purchase its
participation or to make its payment under Section 10.04(c). 

36 

      
(e) Funding
Source. Nothing herein shall be deemed to
obligate any Lender to obtain the funds for any Loan in any particular place or
manner or to constitute a representation by any Lender that it has obtained or
will obtain the funds for any Loan in any particular place or manner.

      
(f) Bank
Accounts Established with a Lender. To the
extent required under Israeli or Bank of Israel law, rule or regulation or
interpretation thereof or any internal compliance policy of a Lender, a Lender
shall be entitled to require the Borrower to establish a bank account with such
Lender (or Affiliate thereof) prior to the making of any loan or issuing credit
hereunder in any form, in each case on customary terms and conditions.

      
2.12 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim
or otherwise, obtain payment in respect of any principal of or interest on any
of the Committed Loans made by it, or the participations in Swing Line Loans
held by it resulting in such Lender’s receiving payment of a proportion of the
aggregate amount of such Committed Loans or participations and accrued interest
thereon greater than its pro rata share thereof as provided herein, then the
Lender receiving such greater proportion shall (a) notify the Administrative
Agent of such fact, and (b) purchase (for cash at face value) participations in
the Committed Loans and subparticipations in Swing Line Loans of the other
Lenders, or make such other adjustments as shall be equitable, so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Committed Loans and other amounts owing them, provided that: 

       (i)
if any such participations or subparticipations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations or subparticipations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest;
and 

       (ii)
the provisions of this Section shall not be
construed to apply to (y) any payment made by or on behalf of the Borrower
pursuant to and in accordance with the express terms of this Agreement
(including the application of funds arising from the existence of a Defaulting
Lender), or (z)
any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Committed Loans or subparticipations in Swing
Line Loans to any assignee or participant, other than an assignment to the
Borrower or any Affiliate thereof (as to which the provisions of this Section
shall apply). 

      
Each Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation. 

37 

      
2.13 Increase in Commitments.

      
(a) Request for
Increase. Provided there exists no Default,
upon notice to the Administrative Agent (which shall promptly notify the
Lenders), the Borrower may from time to time, request an increase in the
Aggregate Commitments by an amount (for all such requests) not exceeding
$75,000,000; provided that (i) any such request for an increase shall be in a
minimum amount of $15,000,000, and (ii) the Borrower may make a maximum of three
such requests. At the time of sending such notice, the Borrower (in consultation
with the Administrative Agent) shall specify the time period within which each
Lender is requested to respond (which shall in no event be less than ten (10)
Business Days from the date of delivery of such notice to the
Lenders).

      
(b) Lender
Elections to Increase. Each Lender shall
notify the Administrative Agent within such time period whether or not it agrees
to increase its Commitment and, if so, whether by an amount equal to, greater
than, or less than its Applicable Percentage of such requested increase. Any
Lender not responding within such time period shall be deemed to have declined
to increase its Commitment.

      
(c) Notification by Administrative Agent; Additional Lenders. The Administrative Agent shall notify the Borrower and each
Lender of the Lenders’ responses to each request made hereunder. To achieve the
full amount of a requested increase and subject to the approval of the
Administrative Agent and the Swing Line Lender (which approval shall not be
unreasonably withheld or delayed), the Borrower may also invite additional
Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance satisfactory to the Administrative Agent and its counsel. 

      
(d) Effective
Date and Allocations. If the Aggregate
Commitments are increased in accordance with this Section, the Administrative
Agent and the Borrower shall determine the effective date (the “Increase Effective Date”)
and the final allocation of such increase. The Administrative Agent shall
promptly notify the Borrower and the Lenders of the final allocation of such
increase and the Increase Effective Date.

      
(e) Conditions
to Effectiveness of Increase. As a condition
precedent to such increase, the Borrower shall deliver to the Administrative
Agent a certificate of each Loan Party dated as of the Increase Effective Date
(in sufficient copies for each Lender) signed by a Responsible Officer of such
Loan Party (x) certifying and attaching the resolutions adopted by such Loan
Party approving or consenting to such increase, and (y) in the case of the
Borrower, certifying that, before and after giving effect to such increase,
(A)(1) the representations and warranties contained in Sections 5.01(a),
5.02,
5.03,
5.04,
5.14 and
5.21 are
true and correct, and (2) all other representations and warranties contained in
Article V
and the other Loan Documents are true and correct in all material respects (or,
in the case of any such other representation, warranty, certification or
statement of fact qualified by materiality, Material Adverse Effect or any
similar concept, incorrect or misleading in any respect), in each case on and as
of the Increase Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are
true and correct in all material respects as of such earlier date, and except
that for purposes of this Section
2.13, the representations and warranties
contained in subsections (a) and (b) of Section
5.05 shall be deemed to refer to the most
recent statements furnished pursuant to subsections (a) and (b), respectively, of
Section 6.01, and (B) no Default exists. The Borrower shall prepay any Committed
Loans outstanding on the Increase Effective Date (and
pay any additional amounts required pursuant to Section 3.05) to the extent necessary
to keep the outstanding Committed Loans ratable with any revised Applicable
Percentages arising from any nonratable increase in the Commitments under this
Section. 

      
(f) Conflicting
Provisions. This Section shall supersede any
provisions in Section 2.12 or 10.01 to the contrary. 

38 

      
2.14 Defaulting Lenders.

      
(a) Adjustments. Notwithstanding anything
to the contrary contained in this Agreement, if any Lender becomes a Defaulting
Lender, then, until such time as that Lender is no longer a Defaulting Lender,
to the extent permitted by applicable Law: 

       (i)
Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any
amendment, waiver or consent with respect to this Agreement shall be restricted
as set forth in the definition of “Required Lenders” and Section 10.01. 

       (ii)
Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts
received by the Administrative Agent for the account of such Defaulting Lender
(whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise)
or received by the Administrative Agent from a Defaulting Lender pursuant to
Section 10.08 shall be applied at such time or times as may be determined by the
Administrative Agent as follows: first, to the payment of any amounts
owing by such Defaulting Lender to the Administrative Agent hereunder;
second, to
the payment on a pro rata basis of any amounts owing by such Defaulting Lender
to the Swing Line Lender hereunder; third, as the Borrower may request (so
long as no Default or Event of Default exists), to the funding of any Loan in
respect of which such Defaulting Lender has failed to fund its portion thereof
as required by this Agreement, as determined by the Administrative Agent;
fourth, if
so determined by the Administrative Agent and the Borrower, to be held in a
deposit account as cash collateral and released pro rata in order to satisfy such Defaulting
Lender’s potential future funding obligations with respect to Loans under this
Agreement; fifth, to the payment of any amounts owing to the Lenders or Swing Line Lender
as a result of any judgment of a court of competent jurisdiction obtained by any
Lender or the Swing Line Lender against such Defaulting Lender as a result of
such Defaulting Lender’s breach of its obligations under this Agreement;
sixth, so
long as no Event of Default exists, to the payment of any amounts owing to the
Borrower as a result of any judgment of a court of competent jurisdiction
obtained by the Borrower against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; and
seventh, to
such Defaulting Lender or as otherwise directed by a court of competent
jurisdiction; provided that if (x) such payment is a payment of the principal amount
of any Loans in respect of which such Defaulting Lender has not fully funded its
appropriate share, and (y) such Loans were made at a time when the conditions
set forth in Section 4.02 were satisfied or waived, such payment shall be applied
solely to pay the Loans of all Non-Defaulting Lenders on a pro rata basis prior
to being applied to the payment of any Loans of such Defaulting Lender until
such time as all Loans and funded and unfunded participations in and Swing Line
Loans are held by the Lenders pro rata in accordance with the Commitments
hereunder without giving effect to Section 2.14(a)(iv). Any
payments, prepayments or other amounts paid or payable to a Defaulting Lender
that are applied (or held) to pay amounts owed by a Defaulting Lender or to post
cash collateral pursuant to this Section
2.14(a)(ii) shall be deemed paid to and
redirected by such Defaulting Lender, and each Lender irrevocably consents
hereto.

39 

     (iii) Certain Fees. No Defaulting Lender
shall be entitled to receive any fee payable under Section 2.08(a) or Section 2.08(b)(ii) for any
period during which that Lender is a Defaulting Lender (and the Borrower shall
not be required to pay any such fee that otherwise would have been required to
have been paid to that Defaulting Lender). 

     (iv) Reallocation of Applicable Percentages to Reduce Fronting
Exposure. All or any part of such Defaulting
Lender’s participation in Swing Line Loans shall be reallocated among the
Non-Defaulting Lenders in accordance with their respective Applicable
Percentages (calculated without regard to such Defaulting Lender’s Commitment)
but only to the extent that (x) the conditions set forth in Section 4.02 are satisfied
at the time of such reallocation (and, unless the Borrower shall have otherwise
notified the Administrative Agent at such time, the Borrower shall be deemed to
have represented and warranted that such conditions are satisfied at such time),
and (y) such reallocation does not cause the aggregate Revolving Credit Exposure
of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Commitment.
No reallocation hereunder shall constitute a waiver or release of any claim of
any party hereunder against a Defaulting Lender arising from that Lender having
become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a
result of such Non-Defaulting Lender’s increased exposure following such
reallocation. 

     (v)
Repayment of Swing Line Loans. If the reallocation described in clause (a)(iv) above cannot, or can only
partially, be effected, the Borrower shall, without prejudice to any right or
remedy available to it hereunder or under applicable Law, prepay Swing Line
Loans in an amount equal to the Swing Line Lenders’ Fronting
Exposure.

     (b)
Defaulting Lender Cure. If the Borrower, the Administrative Agent and Swing Line
Lender agree in writing that a Lender is no longer a Defaulting Lender, the
Administrative Agent will so notify the parties hereto, whereupon as of the
effective date specified in such notice and subject to any conditions set forth
therein, that Lender will, to the extent applicable, purchase at par that
portion of outstanding Loans of the other Lenders or take such other actions as
the Administrative Agent may determine to be necessary to cause the Committed
Loans and funded and unfunded participations in Swing Line Loans to be held on a
pro rata basis by the Lenders in accordance with their Applicable Percentages
(without giving effect to Section 2.14(a)(iv)), whereupon such Lender
will cease to be a Defaulting Lender; provided that no adjustments will be
made retroactively with respect to fees accrued or payments made by or on behalf
of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the
extent otherwise expressly agreed by the affected parties, no change hereunder
from Defaulting Lender to Lender will constitute a waiver or release of any
claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender. 

40

ARTICLE
III. TAXES, YIELD PROTECTION AND
ILLEGALITY 

     3.01 Taxes.

     (a)
Payments Free of Taxes; Obligation to
Withhold; Payments on Account of Taxes.

     (i) Any and all payments by or on account of any obligation of any Loan Party
under any Loan Document shall be made without deduction or withholding for any
Taxes, except as required by applicable Laws. If any applicable Laws (as
determined in the good faith discretion of the Administrative Agent) require the
deduction or withholding of any Tax from any such payment by the Administrative
Agent or a Loan Party, then the Administrative Agent or such Loan Party shall be
entitled to make such deduction or withholding, upon the basis of the
information and documentation to be delivered pursuant to Section 3.01(f) below.

     (ii)
If any Loan Party or the Administrative Agent
shall be required by the Code to withhold or
deduct any Taxes, including both United
States Federal backup withholding and withholding taxes, from any payment, then
(A) the Administrative Agent shall withhold or make such deductions as are
determined by the Administrative Agent to be required based upon the information
and documentation it has received pursuant to Section 3.01(f) below, (B) the
Administrative Agent shall timely pay the full amount withheld or deducted to
the relevant Governmental Authority in accordance with the Code, and (C) to the
extent that the withholding or deduction is made on account of Indemnified
Taxes, the sum payable by the applicable Loan Party shall be increased as
necessary so that after any required withholding or the making of all required
deductions (including deductions applicable to additional sums payable under
this Section 3.01) the applicable Recipient receives an amount equal to the sum it would
have received had no such withholding or deduction been made. 

     (iii)
If any Loan Party or the Administrative Agent
shall be required by any applicable Laws other than the Code to withhold
or deduct
any Taxes from any payment, then (A) such Loan Party or the Administrative
Agent, as required by such Laws, shall withhold or make such deductions as are
determined by it to be required based upon the information and documentation it
has received pursuant to Section 3.01(f) below, (B) such Loan Party or the
Administrative Agent, to the extent required by such Laws, shall timely pay the
full amount withheld or deducted to the relevant Governmental Authority in
accordance with such Laws, and (C) to the extent that the withholding or
deduction is made on account of Indemnified Taxes, the sum payable by the
applicable Loan Party shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions
applicable to additional sums payable under this Section 3.01) the applicable Recipient
receives an amount equal to the sum it would have received had no such
withholding or deduction been made. 

     (b)
Payment of Other Taxes by the
Borrower. Without limiting the provisions of
Section 3.01(a) above, the Loan Parties shall timely pay to the relevant Governmental
Authority in accordance with applicable law, or at the option of the
Administrative Agent timely reimburse it for the payment of, any Other Taxes.

41 

     (c) Tax
Indemnifications. (i) Each of the Loan
Parties shall, and does hereby, jointly and severally indemnify each Recipient,
and shall make payment in respect thereof within ten (10) Business Days after
demand therefor, for the full amount of any Indemnified Taxes (including
Indemnified Taxes imposed or asserted on or attributable to amounts payable
under this Section 3.01 and all VAT) payable or paid by such Recipient or required to
be withheld or deducted from a payment to such Recipient, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrower by a Lender (with a copy
to the Administrative Agent), or by the Administrative Agent on its own behalf
or on behalf of a Lender, shall be conclusive absent manifest error. Each of the
Loan Parties shall, and does hereby, jointly and severally indemnify the
Administrative Agent, and shall make payment in respect thereof within ten (10)
Business Days after demand therefor, for any amount which a Lender for any
reason fails to pay indefeasibly to the Administrative Agent as required
pursuant to Section
3.01(c)(ii) below. 

     (ii)
Each Lender shall, and does hereby, severally
indemnify, and shall make payment in respect thereof within ten (10) Business
Days after demand therefor, (x) the Administrative Agent against any Indemnified Taxes
attributable to such Lender (but only to the extent that any Loan Party has not
already indemnified the Administrative Agent for such Indemnified Taxes and
without limiting the obligation of the Loan Parties to do so), (y) the Administrative Agent
and the Loan Parties, as applicable, against any Taxes attributable to such
Lender’s failure to comply with the provisions of Section 10.06(d) relating to the maintenance
of a Participant Register and (z) the Administrative Agent and the
Loan Parties, as applicable, against any Excluded Taxes attributable to such
Lender that are payable or paid by the Administrative Agent or a Loan Party in
connection with any Loan Document, and any reasonable expenses arising therefrom
or with respect thereto, whether or not such Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to any Lender by the
Administrative Agent shall be conclusive absent manifest error. Each Lender
hereby authorizes the Administrative Agent to set off and apply any and all
amounts at any time owing to such Lender under this Agreement or any other Loan
Document against any amount due to the Administrative Agent under this
clause (ii).

     (d)
Evidence of Payments. Upon request by the Borrower or the Administrative Agent, as
the case may be, after any payment of Taxes by any Loan Party or by the
Administrative Agent to a Governmental Authority as provided in this
Section 3.01, the Borrower shall deliver to the Administrative Agent or the
Administrative Agent shall deliver to the Borrower, as the case may be, the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to report such
payment or other evidence of such payment reasonably satisfactory to the
Borrower or the Administrative Agent, as the case may be. 

     (e)
Stamp Taxes. The Borrower shall pay and, within ten (10) Business Days of demand,
indemnify each Lender and the Administrative Agent against any cost, loss or
liability incurred in relation to all stamp duty, registration and other similar
Taxes payable in respect of this Agreement or any
related agreement or document. 

42 

     (f) Status of Lenders; Tax Documentation.

     (i)
Any Lender that is entitled to an exemption from
or reduction of withholding Tax with respect to payments made under any Loan
Document shall deliver to the Borrower and the Administrative Agent, at the time
or times reasonably requested by the Borrower or the Administrative Agent, such
properly completed and executed documentation reasonably requested by the
Borrower or the Administrative Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any
Lender, if reasonably requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent as will enable
the Borrower or the Administrative Agent to determine whether or not such Lender
is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the
completion, execution and submission of such documentation (other than such
documentation set forth in Section 3.01(f)(ii)(A), (ii)(B) and (ii)(D) below and such
documentation as is presently required to obtain a reduced rate of withholding
tax under the law of Israel in accordance with the US-Israel Income Tax Treaty,
including obtaining a certificate of residence from the relevant Governmental
Authority in the case of a recipient of a payment) shall not be required if in
the Lender’s reasonable judgment such completion, execution or submission would
subject such Lender to any material unreimbursed cost or expense or would
materially prejudice the legal or commercial position of such
Lender. 

     (ii)
Without limiting the generality of the foregoing,
in the event that the Borrower is a U.S. Person, 

     (A)
any Lender that is a U.S. Person shall deliver to
the Borrower and the Administrative Agent on or prior to the date on which such
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Borrower or the Administrative Agent),
executed originals of IRS Form W-9 certifying that such Lender is exempt from
U.S. federal backup withholding tax;

     (B)
any Foreign Lender shall, to the extent it is
legally entitled to do so, deliver to the Borrower and the Administrative Agent
(in such number of copies as shall be requested by the recipient) on or prior to
the date on which such Foreign Lender becomes a Lender under this Agreement (and
from time to time thereafter upon the reasonable request of the Borrower or the
Administrative Agent), whichever of the following is applicable: 

          (I) in the case of a Foreign
Lender claiming the benefits of an income tax treaty to which the United States
is a party (x) with respect to payments of interest under any Loan Document,
executed originals of IRS Form W-8BEN establishing an exemption from, or
reduction of, U.S. federal withholding Tax pursuant to the “interest” article of
such tax treaty and (y) with respect to any other
applicable payments under any Loan Document, IRS Form W-8BEN establishing an
exemption from, or reduction of, U.S. federal withholding Tax pursuant to the
“business profits” or “other income” article of such tax treaty;

43

          (II) executed originals of IRS Form W-8ECI; 

          (III) in the case of a Foreign
Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate substantially in the form of
Exhibit G-1
to the effect that such Foreign Lender is not a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower
within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign
corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or 

          (IV) to the extent a Foreign Lender
is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied
by IRS Form W-8ECI, IRS Form W-8BEN, a U.S. Tax Compliance Certificate
substantially in the form of Exhibit
G-2 or Exhibit G-3, IRS Form W-9, and/or
other certification documents from each beneficial owner, as applicable;
provided
that if the Foreign Lender is a partnership and one or more direct or indirect
partners of such Foreign Lender are claiming the portfolio interest exemption,
such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially
in the form of Exhibit G-4 on behalf of each such direct and indirect partner;

     (C) any Foreign Lender shall, to the
extent it is legally entitled to do so, deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable
request of the Borrower or the Administrative Agent), executed originals of any
other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in U.S. federal withholding Tax, duly completed, together with
such supplementary documentation as may be prescribed by applicable law to
permit the Borrower or the Administrative Agent to determine the withholding or
deduction required to be made; and 

     (D) if a payment made to a Lender
under any Loan Document would be subject to U.S. federal withholding Tax imposed
by FATCA if such Lender were to fail to comply with the applicable reporting
requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to the Borrower and the
Administrative Agent at the time or times prescribed by law and at such time or
times reasonably requested by the Borrower or the Administrative Agent such
documentation prescribed by applicable law (including as prescribed by Section
1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower or the Administrative Agent as may be necessary for
the Borrower and the Administrative Agent to comply with
their obligations under FATCA and to determine that such Lender has complied
with such Lender’s obligations under FATCA or to determine the amount to deduct
and withhold from such payment. Solely for purposes of this clause (D), “FATCA” shall
include any amendments made to FATCA after the date of this Agreement.

44

     (iii) Each Lender agrees that if any form or certification it previously
delivered pursuant to this Section
3.01 expires or becomes obsolete or
inaccurate in any respect, it shall update such form or certification or
promptly notify the Borrower and the Administrative Agent in writing of its
legal inability to do so. 

     (g) Treatment of Certain Refunds. Unless
required by applicable Laws, at no time shall the Administrative Agent have any
obligation to file for or otherwise pursue on behalf of a Lender, or have any
obligation to pay to any Lender, any refund of Taxes withheld or deducted from
funds paid for the account of such Lender. If any Recipient determines, in its
sole discretion exercised in good faith,
that it has received a refund or similar
remission or repayment of any Tax (a “Tax
Benefit”) as a result of the Taxes as to
which it has been indemnified by any Loan Party or with respect to which any
Loan Party has paid additional amounts pursuant to this Section 3.01, it shall pay
to the Loan Party an amount equal to such Tax Benefit (but only to the extent of indemnity
payments made, or additional amounts paid, by a Loan Party under this
Section 3.01 with respect to the Taxes giving rise to such Tax Benefit), net of all
out-of-pocket expenses (including Taxes) incurred by such Recipient, and without
interest (other than any interest paid by the relevant Governmental Authority),
provided
that the Loan Party, upon the request of the Recipient, agrees to repay the
amount paid over to the Loan Party (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Recipient in the event
the Recipient is required to repay such Tax Benefit to such Governmental
Authority. Notwithstanding anything to the contrary in this subsection, in no
event will the applicable Recipient be required to pay any amount to the Loan
Party pursuant to this subsection the payment of which would place the Recipient
in a less favorable net after-Tax position than such Recipient would have been
in if the Tax subject to indemnification and giving rise to such refund had not
been deducted, withheld or otherwise imposed and the indemnification payments or
additional amounts with respect to such Tax had never been paid. This
Section 3.01(g) shall not be construed to require any Recipient to make available its
tax returns (or any other information relating to its taxes that it deems
confidential) to any Loan Party or any other Person. 

     (h)
Survival.
Each party’s obligations under this Section
3.01 shall survive the resignation or
replacement of the Administrative Agent or any assignment of rights by, or the
replacement of, a Lender and the Facility Termination Date. 

     3.02 Illegality.

     (a) Illegality to Make, Maintain or Fund Certain Loans. If any Lender determines that any Law has made it unlawful,
or that any Governmental Authority has asserted that it is unlawful, for any
Lender or its Lending Office to make, maintain or fund Loans whose interest is
determined by reference to the Eurodollar Rate, or to determine or charge
interest rates based upon the Eurodollar Rate, or any Governmental Authority has
imposed material restrictions on the authority of such Lender to purchase or
sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, (i) any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Committed Loans to
Eurodollar Rate Loans shall be suspended, and (ii) if such notice asserts the
illegality of such Lender making or maintaining Base Rate Loans the interest
rate on which is determined by reference to the Eurodollar Rate component of the
Base Rate, the interest rate on which Base Rate Loans of such Lender shall, if
necessary to avoid such illegality, be determined by the Administrative Agent
without reference to the Eurodollar Rate component of the Base Rate, in each
case until such Lender notifies the Administrative Agent and the Borrower that
the circumstances giving rise to such determination no longer exist. Upon
receipt of such notice, (x) the Borrower shall, upon demand from such Lender
(with a copy to the Administrative Agent), prepay or, if applicable, convert all
Eurodollar Rate Loans of such Lender to Base Rate Loans (the interest rate on
which Base Rate Loans of such Lender shall, if necessary to avoid such
illegality, be determined by the Administrative Agent without reference to the
Eurodollar Rate component of the Base Rate), either on the last day of the
Interest Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans and (y) if such notice
asserts the illegality of such Lender determining or charging interest rates
based upon the Eurodollar Rate, the Administrative Agent shall during the period
of such suspension compute the Base Rate applicable to such Lender without
reference to the Eurodollar Rate component thereof until the Administrative
Agent is advised in writing by such Lender that it is no longer illegal for such
Lender to determine or charge interest rates based upon the Eurodollar Rate.
Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted. 

45 

     (b)
Designated Lending Office; Israeli Law
Limitations. (i) If any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office to
issue, make, maintain, fund or charge interest with respect to any Borrowing who
is organized under the laws of a jurisdiction other than the United States, a
State thereof or the District of Columbia, (ii) if, as a result of any merger, consolidation, amalgamation or acquisition
by or of Holdings or any Subsidiary with, into or of another Person, it is or
becomes unlawful due to group or company lending limitations or other similar
limitations under Israeli Law (or rule, regulation or interpretation thereof or
any rules, regulations or interpretations of the Bank of Israel) for any Lender
to perform its obligations hereunder or to fund any Loans, or (iii) if any
Lender reasonably determines that such Lender cannot perform its obligations
hereunder or fund any Loans, in either case, in compliance with the terms of the
No-Action Letter, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, and until such notice by such Lender is revoked, any
obligation of such Lender to issue, make, maintain, fund or charge interest with
respect to any such Borrowing shall be suspended. Upon receipt of such notice,
the Loan Parties shall take all reasonable actions requested by such Lender to
mitigate or avoid such illegality. 

     3.03 Inability to Determine
Rates. If in connection with any request
for a Eurodollar Rate Loan or a conversion to or continuation thereof, (a) the
Administrative Agent determines that (i) Dollar deposits are not being offered
to banks in the applicable offshore interbank market for such currency for the
applicable amount and Interest Period of such Eurodollar Rate Loan, or (ii)
adequate and reasonable means do not exist for determining the Eurodollar Rate
for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan or in connection with the Eurodollar Rate component
of an existing or proposed Base Rate Loan (in each case with respect to
clause (a)
above, “Impacted Loans”), or (b) the Administrative Agent or the Required Lenders
determine that for any reason the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Eurodollar Rate Loan,
the Administrative Agent will promptly so notify the Company and each Lender.
Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar
Rate Loans shall be suspended, (to the extent of the affected Eurodollar Rate
Loans or Interest Periods), and (y) in the event of a determination described in
the preceding sentence with respect to the Eurodollar Rate component of the Base
Rate, the utilization of the Eurodollar Rate component in determining the Base
Rate shall be suspended, in each case until the Administrative Agent upon the
instruction of the Required Lenders
revokes such notice. Upon receipt of such
notice, the Company may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans (to the extent of the
affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be
deemed to have converted such request into a request for a Committed Borrowing
of Base Rate Loans in the amount specified therein.

46 

     Notwithstanding the foregoing, if the Administrative Agent has made the
determination described in clause
(a) of the first sentence of this Section,
the Administrative Agent, in consultation with the Borrower and the affected
Lenders, may establish an alternative interest rate for the Impacted Loans for
funding Loans in Dollars and with the same Interest Period as the Eurocurrency
Rate Loan requested to be made, converted or continued, as the case may be , in
which case, such alternative rate of interest shall apply with respect to the
Impacted Loans until (1) the Administrative Agent revokes the notice delivered
with respect to the Impacted Loans under clause (a) of the first sentence of
this Section, (2) the Required Lenders notify the Administrative Agent and the
Borrower that such alternative interest rate does not adequately and fairly
reflect the cost to such Lenders of funding the Impacted Loans, or (3) any
Lender determines that any Law has made it unlawful, or that any Governmental
Authority has asserted that it is unlawful, for such Lender or its applicable
Lending Office to make, maintain or fund Loans whose interest is determined by
reference to such alternative rate of interest or to determine or charge
interest rates based upon such rate or any Governmental Authority has imposed
material restrictions on the authority of such Lender to do any of the foregoing
and provides the Administrative Agent and the Borrower written notice thereof.

     3.04 Increased Costs; Reserves on
Eurodollar Rate Loans.

     (a)
Increased Costs Generally. If any Change in Law shall: 

     (i)
impose, modify or deem applicable any reserve,
special deposit, compulsory loan, insurance charge, liquidity or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section
3.04(e));

     (ii)
subject any Recipient to any Taxes (other than
(A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of
Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal,
letters of credit, commitments, or other obligations, or its deposits, reserves,
other liabilities or capital attributable thereto; or

47

     (iii) impose on any Lender or the London interbank market any other condition,
cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or participation therein; 

and the result of any of the foregoing
shall be to increase the cost to such Lender of making, converting to,
continuing or maintaining any Loan the interest on which is determined by
reference to the Eurodollar Rate (or of maintaining its obligation to make any
such Loan), or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender, the Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered. Notwithstanding anything in this Section 3.04 to the
contrary, this Section 3.04 shall not apply to Taxes which shall be governed exclusively
by Section 3.01. 

     (b) Capital Requirements. If any Lender in
good faith determines that any Change in Law affecting such Lender or the
applicable Lending Office of such Lender or such Lender’s holding company, if
any, regarding capital or liquidity requirements has or would have the effect of
reducing the rate of return on such Lender’s capital or on the capital of such
Lender’s holding company, if any, as a consequence of this Agreement, the
Commitments of such Lender or the Loans made by, or participations in Swing Line
Loans held by, such Lender, to a level below that which such Lender or such
Lender’s holding company could have achieved but for such Change in Law (taking
into consideration such Lender’s policies and the policies of such Lender’s
holding company with respect to capital adequacy), then from time to time upon
written notice from such Lender (such notice to set out the basis for such
reduction suffered and a summary calculation of such reduction suffered), the
Borrower, within ten (10) Business Days of receipt of such notice will pay to
such Lender such additional amount or amounts as will compensate such Lender or
such Lender’s holding company for any such reduction suffered. 

     (c)
Certificates for Reimbursement. A certificate of a Lender setting forth the amount or
amounts necessary to compensate such Lender or its holding company, as the case
may be, as specified in subsection
(a) or (b) of this Section and delivered to
the Borrower along with a summary calculation thereof, shall be conclusive
absent manifest error asserted by the Borrower within ten (10) Business Days of
receipt. The Borrower shall pay such Lender the amount shown as due on any such
certificate within ten (10) Business Days after receipt thereof. 

     (d)
Delay in Requests. Failure or delay on the part of any Lender to demand compensation
pursuant to the foregoing provisions of this Section 3.04 shall not constitute a
waiver of such Lender’s right to demand such compensation, provided that the Borrower
shall not be required to compensate a Lender pursuant to the foregoing
provisions of this Section for any increased costs incurred or reductions
suffered more than six months prior to the date that such Lender notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Lender’s intention to claim compensation therefor (except that, if
the Change in Law giving rise to such increased costs or reductions is
retroactive, then the six-month period referred to above shall be extended to
include the period of retroactive effect thereof). 

     (e)
Additional Reserve
Requirements. The Borrower shall pay to each
Lender, (i) as long as such Lender shall be required to maintain reserves with
respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive absent manifest error), and (ii) as long as
such Lender shall be required to comply with any reserve ratio requirement or
analogous requirement of any other central banking or financial regulatory
authority imposed in respect of the maintenance of the Commitment or the funding
of the Eurocurrency Rate Loans, such additional costs (expressed as a percentage
per annum and rounded upwards, if necessary, to the nearest five decimal places)
equal to the actual costs allocated to such Commitment or Loan by such Lender
(as determined by such Lender in good faith, which determination shall be
conclusive absent manifest error), which in each case shall be due and payable
on each date on which interest is payable on such Loan, provided the Borrower shall
have received at least ten (10) Business Days’ prior notice (with a copy to the
Administrative Agent) of such additional interest or costs from such Lender,
such notice to set out the basis for such additional interest or cost incurred
and a summary calculation thereof. If a Lender fails to give notice ten (10)
Business Days prior to the relevant Interest Payment Date, such additional
interest or costs shall be due and payable ten (10) Business Days from receipt
of such notice. 

48 

     3.05 Compensation for
Losses. Upon written demand of any
Lender (with a copy to the Administrative Agent) from time to time, the Borrower
shall promptly compensate such Lender for and hold such Lender harmless from any
loss, cost or expense incurred by it as a result of: 

     (a) any
continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan
(whether voluntary, mandatory, automatic, by reason of acceleration, or
otherwise); 

     (b)
any failure by the Borrower (for a reason other
than the failure of such Lender to make a Loan) to prepay, borrow, continue or
convert any Loan other than a Base Rate Loan on the date or in the amount
notified by the Borrower; or 

     (c)
any assignment of a Eurodollar Rate Loan on a day
other than the last day of the Interest Period therefor as a result of a request
by the Borrower pursuant to Section
10.13; 

including any loss or expense arising
from the liquidation or reemployment of funds obtained by it to maintain such
Loans or from fees payable to terminate the deposits from which such funds were
obtained (but excluding any loss of anticipated profits). The Borrower shall
also pay any customary administrative fees charged by such Lender in connection
with the foregoing. 

For purposes of calculating amounts
payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to
have funded each Eurodollar Rate Loan made by it at the Eurodollar
Rate for
such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether
or not such Eurodollar Rate Loan was in fact so funded. 

     3.06 Mitigation Obligations;
Replacement of Lenders. 

     (a)
Designation of a Different Lending
Office. If any Lender requests compensation
under Section
3.04, or requires the Borrower to pay any
Indemnified Taxes or additional amounts to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a
notice pursuant to Section 3.02, then at the request of the Borrower such Lender
shall use reasonable efforts to designate a different Lending Office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the good faith
judgment of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the
future, or eliminate the need for the notice pursuant to Section 3.02, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be materially
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such
designation or assignment. 

49 

     (b) Replacement of Lenders. If any Lender
requests compensation under Section 3.04, or has invoked the provisions of
Section 3.02, or if the Borrower is required to pay any Indemnified Taxes or
additional amounts to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section
3.01 and, in each case, such Lender has
declined or is unable to designate a different lending office in accordance with
Section 3.06(a), the Borrower may replace such Lender in accordance with
Section 10.13. 

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments, the Facility Termination Date, and
resignation of the Administrative Agent. 

ARTICLE
IV. CONDITIONS PRECEDENT TO BORROWINGS 

     4.01 Conditions of Initial
Borrowing. The obligation of each Lender
to make its initial Borrowing hereunder is subject to satisfaction of the
following conditions precedent: 

     (a)
The Administrative Agent’s receipt of the
following, each of which shall be originals or telecopies (followed promptly by
originals) unless otherwise specified, each properly executed by a Responsible
Officer of the signing Loan Party, each dated the Closing Date (or, in the case
of certificates of governmental officials, a recent date before the Closing
Date) and each in form and substance satisfactory to the Administrative Agent
and each of the Lenders: 

     (i)
executed counterparts of this Agreement, the
Israeli Guaranty, and the U.S. Subsidiary Guaranty, sufficient in number for
distribution to the Administrative Agent, each Lender and the Borrower;

     (ii) a Note executed by the Borrower in favor
of each Lender requesting a Note; 

     (iii) such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require evidencing
the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement and
the other Loan Documents to which such Loan Party is a party; 

50 

     (iv) such
documents and certifications as the Administrative Agent may reasonably require
to evidence that each Loan Party is duly organized or formed, and that each Loan
Party is validly existing, in good standing (with respect to jurisdictions in
which the concept of good standing exists), and qualified to engage in business
in each jurisdiction where its ownership, lease or operation of properties or
the conduct of its business requires such qualification, except to the extent
that failure to do so could not reasonably be expected to have a Material
Adverse Effect; 

     (v)
a favorable opinion of Morrison Foerster, U.S.
counsel to the Loan Parties, Meitar Liquornik Geva Leshem Tal, Israeli counsel
to the Loan Parties, and other appropriate corporate or local counsel to the
Loan Parties, each addressed to the Administrative Agent and each Lender;

     (vi) a certificate of a Responsible Officer of
each Loan Party either (A) attaching copies of all U.S., Israeli and other
consents, licenses and approvals required in connection with the execution,
delivery and performance by such Loan Party, and such consents, licenses and
approvals shall be in full force and effect, or (B) stating that no such
consents, licenses or approvals are so required; 

     (vii) a certificate signed by a Responsible
Officer of the Borrower certifying (A) that the conditions specified in
Sections 4.02(a) and (b) have been satisfied, and (B) that, to the knowledge of such Responsible
Officer, there has been no event or circumstance since the date of the Audited
Financial Statements that has had or could be reasonably expected to have,
either individually or in the aggregate, a Material Adverse Effect; and

     (viii) such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the Swing Line
Lender or the Required Lenders reasonably may require and as requested prior to
the Closing Date. 

     (b)
The Administrative Agent and each Lender shall
have received (i) applicable permits and/or approvals from the Governor of the
Bank of Israel to use the word “bank” in the name of the Administrative Agent or
such Lender, as applicable, (ii) executed Approval for Consortium
Arrangement letters from each of the Borrower and the Israeli Guarantors and (iii) all additional
required licenses, permits and consents from the applicable regulatory authority
in Israel to enter into this Agreement, consummate the transactions described
herein, and perform their obligations hereunder as requested prior to the
Closing Date. 

     (c)
Any fees required to be paid on or before the
Closing Date shall have been paid. 

     (d)
Unless waived by the Administrative Agent, the
Borrower shall have paid all fees, charges and disbursements of counsel to the
Administrative Agent (directly to such counsel if requested by the
Administrative Agent) to the extent invoiced prior to or on the Closing Date and
payable under Section 10.04(a), plus such additional amounts of such fees, charges and
disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the closing
proceedings (provided that such estimate shall not thereafter preclude a final
settling of accounts between the Borrower and the Administrative Agent), to the extent
payable under Section 10.04(a).

51 

     Without
limiting the generality of the provisions of the last paragraph of
Section 9.03, for purposes of determining compliance with the conditions specified in
this Section 4.01, each Lender that has signed this Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or acceptable
or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

    
4.02 Conditions to all Borrowings. The obligation of each Lender to honor any Request for Borrowing (other
than a Committed Loan Notice requesting only a conversion of Committed Loans to
the other Type, or a continuation of Eurodollar Rate Loans) is subject to the
following conditions precedent: 

    
(a) (i) The
representations and warranties of Holdings and the Borrower contained in
Sections 5.01(a), 5.02, 5.03, 5.04, 5.14 and 5.21 are true and correct, and (ii) all other representations and warranties
of Holdings and the Borrower contained in Article V and the other Loan
Documents, or which are contained in any document furnished in connection with
the Request for Borrowing, are true and correct in all material respects (or, in
the case of any such other representation, warranty, certification or statement
of fact qualified by materiality, Material Adverse Effect or any similar
concept, incorrect or misleading in any respect), in each case on and as of the
date of such Borrowing, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be
true and correct in all material respects as of such earlier date, and except
that for purposes of this Section
4.02, the representations and warranties
contained in subsections (a) and (b) of Section
5.05 shall be deemed to refer to the most
recent statements furnished pursuant to subsections (a) and (b), respectively, of
Section 6.01. 

    
(b) No
Default shall exist, or would result from such proposed Borrowing or from the
application of the proceeds thereof. 

    
(c) The
Administrative Agent and, if applicable, the Swing Line Lender shall have
received a Request for Borrowing in accordance with the requirements hereof.

    
(d) There
shall not have occurred any change in U.S. national or international financial,
political or economic conditions which in the reasonable opinion of the
Administrative Agent or the Required Lenders would make it impracticable for
such Borrowing to be made. 

    
(e) There
shall be no impediment, restriction, limitation or prohibition imposed under Law
or by any Governmental Authority, as to the proposed financing under this
Agreement or the repayment thereof or as to rights created under any of the
Guaranties or as to application of the proceeds of the realization of any such
rights. 

    
Each Request for Borrowing (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a) and
(b) have
been satisfied on and as of the date of the applicable
Borrowing. 

52 

ARTICLE
V. REPRESENTATIONS AND WARRANTIES 

    
Each of Holdings and the Borrower represents and warrants to the
Administrative Agent and the Lenders that: 

    
5.01 Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof (a) is duly
organized or formed, validly existing and, as applicable, in good standing (with
respect to jurisdictions in which the concept of good standing exists) under the
Laws of the jurisdiction of its incorporation or organization, (b) has all
requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) own or lease its assets and carry
on its business and (ii) execute, deliver and perform its obligations under the
Loan Documents to which it is a party, and (c) is duly qualified and is licensed
and, as applicable, in good standing (with respect to jurisdictions in which the
concept of good standing exists) under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification or license, other than as disclosed on
Schedule 5.01; except in each case referred to in clause (b)(i) or (c), to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect. 

    
5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party, have been duly authorized
by all necessary corporate or other organizational action, and do not and will
not (a) contravene the terms of any of such Person’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of
any Lien under (i) any material Contractual Obligation to which such Person is a
party or affecting such Person or the properties of such Person or any of its
Subsidiaries or (ii) any material order, injunction, writ or decree of any
Governmental Authority or any material arbitral award to which such Person or
its property is subject; or (c) violate any material Law. 

    
5.03 Governmental Authorization; Other
Consents. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document.

    
5.04 Binding Effect. This
Agreement has been, and each other Loan Document, when delivered hereunder, will
have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will
constitute, a legal, valid and binding obligation of such Loan Party,
enforceable against each Loan Party that is party thereto in accordance with its
terms, except as may be limited by equitable principles and by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to creditors
rights generally. 

    
5.05 Financial Statements; No Material Adverse
Effect.

    
(a) The
Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (ii) fairly present in all
material respects the financial condition of Holdings and its Subsidiaries as of
the date thereof and their results of operations for the period covered thereby
in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (iii) show all
material Indebtedness and other material liabilities of Holdings and its
Subsidiaries as of the date thereof to the extent required by GAAP.

53 

    
(b) The
unaudited consolidated balance sheets of Holdings and its Subsidiaries dated
June 30, 2013, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for the fiscal quarter ended on that date
(i) were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein, and (ii)
fairly present the financial condition of Holdings and its Subsidiaries as of
the date thereof and their results of operations for the period covered thereby,
subject, in the case of clauses
(i) and (ii), to the absence of footnotes and
to normal year-end audit adjustments. Schedule
5.05 sets forth all material Consolidated
Funded Indebtedness of Holdings and its consolidated Subsidiaries as of the date
of such financial statements. 

    
(c) Since
the date of the Audited Financial Statements, except as disclosed publicly in
filings with the SEC, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect. 

    
(d) The
consolidated forecasted balance sheet and statements of income and cash flows of
Holdings and its Subsidiaries delivered pursuant to Section 6.01(c) were, in the
reasonable judgment of Holdings, prepared in good faith on the basis of the
assumptions stated therein. 

    
5.06 Litigation. There are
no actions, suits, proceedings, claims or disputes pending or, to the actual
knowledge of Holdings and the Borrower, threatened or contemplated, at law, in
equity, in arbitration or before any Governmental Authority, by or against
Holdings, the Borrower or any of their respective Subsidiaries or against any of
their properties or revenues that (a) purport to affect or pertain to this
Agreement or any other Loan Document, or any of the transactions contemplated
hereby, or (b) except as specifically disclosed in Schedule 5.06, either individually or in
the aggregate could reasonably be expected to have a Material Adverse Effect.

    
5.07 No Default. Neither
any Loan Party nor any Subsidiary thereof is in default under or with respect to
any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has
occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

    
5.08 Ownership of Property; Liens. Each of Holdings, the Borrower and each Subsidiary has good record and
marketable title in fee simple to, or valid leasehold interests in, all real
property necessary in the ordinary conduct of its business, except for such
defects in title as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The property of Holdings, the
Borrower and their respective Subsidiaries is subject to no Liens, other than
Permitted Liens. 

    
5.09 Environmental Compliance. (a) There exists no written claim alleging potential liability or responsibility for violation of any Environmental Law on the
respective business of Holdings, Borrower or any of their respective
Subsidiaries, and (b) there exists no violation of an Environmental Law by
Holdings, Borrower or any of their respective Subsidiaries, in the case of
clauses (a)
or (b), to
the extent such liability, responsibility or violation would reasonably be
expected to have a Material Adverse Effect. 

54 

    
5.10 Insurance. The
properties of Holdings, the Borrower and their respective Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of the Borrower, in such amounts, with such deductibles and covering such risks
as are customarily carried by companies engaged in similar businesses and owning
similar properties in localities where Holdings, the Borrower or the applicable
Subsidiary operates. 

    
5.11 Taxes. Holdings, the
Borrower and their respective Subsidiaries have filed all Federal and state
income and other material tax returns and reports required to be filed, and have
paid all Federal and state income and all other material taxes, assessments,
fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings diligently conducted
and for which adequate reserves have been provided in accordance with GAAP.
There is no proposed tax assessment against Holdings, the Borrower or any of
their respective Subsidiaries that would, if made, have a Material Adverse
Effect.

    
5.12 ERISA Compliance.

    
(a) Each
Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state laws. Each Pension Plan that is
intended to be a qualified plan under Section 401(a) of the Code is subject to
an Internal Revenue Service opinion letter, or has received a favorable
determination letter from the Internal Revenue Service to the effect that the
form of such Plan is qualified under Section 401(a) of the Code, or an
application for such a letter is currently being processed by the Internal
Revenue Service. To the best knowledge of Holdings and the Borrower, nothing has
occurred that would prevent or cause the loss of such tax-qualified status.

    
(b) There
are no pending or, to the best knowledge of Holdings or the Borrower, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with
respect to any Plan that could reasonably be expected to have a Material Adverse
Effect. There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect. 

    
(c) (i) No
ERISA Event has occurred, and neither Holdings, the Borrower nor any ERISA
Affiliate is aware of any fact, event or circumstance that could reasonably be
expected to constitute or result in an ERISA Event with respect to any Pension
Plan; (ii) Holdings, the Borrower and each ERISA Affiliate has met all
applicable requirements under the Pension Funding Rules in respect of each
Pension Plan, and no waiver of the minimum funding standards under the Pension
Funding Rules has been applied for or obtained; (iii) as of the most recent
valuation date for any Pension Plan, the funding target attainment percentage
(as defined in Section 430(d)(2) of the Code) is 60% or higher and neither
Holdings, the Borrower nor any ERISA Affiliate knows of any facts or
circumstances that could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below
60% as of the most recent valuation date; (iv) neither Holdings, the Borrower
nor any ERISA Affiliate has incurred any liability to the PBGC other than for
the payment of premiums, and there are no premium payments which have become due
that are unpaid; (v) neither Holdings, the Borrower nor any ERISA Affiliate has
engaged in a transaction that could reasonably be expected to be subject to
Section 4069 or Section 4212(c) of ERISA; and (vi) no Pension Plan has been
terminated by the plan administrator thereof nor by the PBGC, and no event or
circumstance has occurred or exists that could reasonably be expected to cause
the PBGC to institute proceedings under Title IV of ERISA to terminate any
Pension Plan.

55 

    
5.13 Subsidiaries; Equity Interests. As of the Closing Date, no Loan Party has any Subsidiaries other than
those specifically disclosed in Part (a) of Schedule 5.13 and all of the
outstanding Equity Interests in such Subsidiaries have been or will be validly
issued, are fully paid and nonassessable and are owned by a Loan Party in the
amounts specified on Part (a) of Schedule
5.13 free and clear of all Liens, other than
Permitted Liens. As of the Closing Date, no Loan Party has any material equity
investments in any other corporation or entity other than those specifically
disclosed in Part (b) of Schedule
5.13. All of the outstanding Equity Interests
in the Loan Parties have been validly issued and are fully paid and
nonassessable. 

    
5.14 Margin Regulations; Investment Company
Act.

    
(a) No Loan
Party is engaged or will engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose
of purchasing or carrying margin stock. 

    
(b) None of
Holdings, the Borrower, any Person Controlling Holdings or the Borrower, or any
Subsidiary is or is required to be registered as an “investment company” under
the Investment Company Act of 1940. 

    
5.15 Disclosure. None of
the reports, financial statements, certificates and other written information
(taken as a whole) furnished by or on behalf of the Loan Parties to the
Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered hereunder
or under any other Loan Document contain, as the date such reports, financial
statements, certificates or other written information were furnished to the
Administrative Agent or any Lender (in each case, as may be later modified or
supplemented by other information so furnished), material misstatements of fact
or omit to state material facts necessary to make the statements therein, in the
light of the circumstances under which they were made and taken as a whole, not
misleading; provided that, with respect to projected financial information, each
of Holdings and the Borrower represents only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the
time. 

    
5.16 Compliance with Laws.
Each Loan Party and each Subsidiary thereof is in compliance in all material
respects with the requirements of all Laws and all orders, writs, injunctions
and decrees applicable to it or to its properties, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings
diligently conducted or (b) the failure to comply therewith, either individually
or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. 

56 

    
5.17 Taxpayer Identification Number. The Borrower’s true and correct unique identification number that has
been issued by its jurisdiction of organization and the name of such
jurisdiction are set forth on Schedule
10.02.

    
5.18 Intellectual Property; Licenses, Etc. Each Loan Party and its Subsidiaries own, or possess the
right to use, all of the trademarks, service marks, trade names, copyrights,
patents, patent rights, franchises, licenses and other intellectual property
rights (collectively, “IP
Rights”) (a) that are material to the
operation of their respective businesses, and (b) without conflict with the
rights of any other Person, except in the case of each of clauses (a) and
(b), as
could not reasonably be expected to have a Material Adverse Effect. To the best
knowledge of Holdings and the Borrower, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, or now
contemplated to be employed, by Holdings, the Borrower or any of their
respective Subsidiaries infringes upon any rights held by any other Person,
except where the effect thereof could not reasonably be expected to have a
Material Adverse Effect.

    
5.19 OFAC. Neither
Holdings, nor any of its Subsidiaries, nor, to the knowledge of Holdings and its
Subsidiaries, any director, officer, employee or agent thereof, is an individual
or entity currently the subject of any Sanctions, nor is Holdings or any
Subsidiary located, organized or resident in a Designated Jurisdiction.

    
5.20 Representations as to Foreign Obligors. 

    
Each of Holdings, the Borrower and each Foreign Obligor represents and
warrants to the Administrative Agent and the Lenders that: 

    
(a) Such Foreign Obligor is subject to civil and commercial Laws with
respect to its obligations under this Agreement and the other Loan Documents to
which it is a party (collectively as to such Foreign Obligor, the
“Applicable Foreign Obligor
Documents”), and the execution, delivery and
performance by such Foreign Obligor of the Applicable Foreign Obligor Documents
constitute and will constitute private and commercial acts and not public or
governmental acts. Neither such Foreign Obligor nor any of its property has any
immunity from jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Obligor is organized and existing in respect of its obligations
under the Applicable Foreign Obligor Documents. 

    
(b) The Applicable Foreign Obligor Documents are in proper legal form
under the Laws of the jurisdiction in which such Foreign Obligor is organized
and existing for the enforcement thereof against such Foreign Obligor under the
Laws of such jurisdiction, and to ensure the legality, validity, enforceability,
priority or admissibility in evidence of the Applicable Foreign Obligor
Documents, subject to the exceptions on the enforceability thereof described in
Section 5.04. It is not necessary to ensure the legality, validity, enforceability
(subject to the exceptions on the enforceability thereof
described in Section 5.04), priority or admissibility in evidence of the Applicable
Foreign Obligor Documents that the Applicable Foreign Obligor Documents be
filed, registered or recorded with, or executed or notarized before, any court
or other authority in the jurisdiction in which such Foreign Obligor is
organized and existing, conducts business, holds assets or is registered or that
any registration charge or stamp or similar tax be paid on or in respect of the
Applicable Foreign Obligor Documents or any other document, except for (i) any
such filing, registration, recording, execution or notarization as has been made
or is not required to be made until the Applicable Foreign Obligor Document or
any other document is sought to be enforced and (ii) any charge or tax as has
been timely paid. 

57 

    
(c) There is no tax, levy, impost, duty, fee, assessment or other
governmental charge, or any deduction or withholding, imposed by any
Governmental Authority in or of the jurisdiction in which such Foreign Obligor
is organized and existing either (i) on or by virtue of the execution or
delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to
be made by such Foreign Obligor pursuant to the Applicable Foreign Obligor
Documents, except as has been disclosed to the Administrative Agent; provided
that it is understood that the payment of interest under the Loan Documents by
Foreign Obligors may require the payment of withholding taxes. 

    
(d) The execution, delivery and performance of the Applicable Foreign
Obligor Documents executed by such Foreign Obligor are, under applicable foreign
exchange control regulations of the jurisdiction in which such Foreign Obligor
is organized and existing, not subject to any notification or authorization
except (i) such as have been made or obtained or (ii) such as cannot be made or
obtained until a later date (provided that any notification or
authorization described in clause
(ii) shall be made or obtained as soon as is
reasonably practicable). 

    
5.21 Governing Law. The choice of the laws of the State of New York as the governing law of
this Agreement or any Loan Document is a valid choice of law under the laws of
the State of Israel and will be honored by courts in the State of Israel,
subject to the following: any final judgment for a fixed or readily calculable
sum of money rendered by a New York Court having jurisdiction under its own
domestic laws in respect of any suit, action or proceeding against Holdings, the
Borrower or any Israeli Guarantor based upon this Agreement or any other Loan
Document and any instruments or agreements entered into for the consummation of
the transactions contemplated herein and therein would be declared enforceable
against Holdings, the Borrower or any Israeli Guarantor without re-examination
or review of the merits of the cause of action in respect of which the original
judgment was given or re-litigation of the matters adjudicated upon by the
courts of the State of Israel, provided that (a) the judgment is
still valid, final and is capable of execution in New York; (b) the judgment is
not contrary to any principle affecting public policy in the State of Israel;
(c) the New York Court had jurisdiction to hear the claim; (d) Holdings, the
Borrower or such Israeli Guarantor (as applicable) had been regularly summoned
to attend the proceedings before the New York Court; (e) adequate service of
process has been effected and the defendant has had a reasonable opportunity to
be heard; (f) such judgment was not obtained by fraudulent means and does not
conflict with any other valid judgment in the same matter between the same
parties; and (g) an action between the same parties in the same matter is not
pending in any State of Israel court at the time the lawsuit is instituted in
the foreign court. 

58 

    
5.22 Anti-Corruption Laws and Sanctions. The Borrower has implemented and maintains in effect
policies and procedures designed to ensure compliance by the Borrower, its
Subsidiaries and their respective directors, officers, employees and agents with
Anti-Corruption Laws and applicable Sanctions, and the Borrower, its
Subsidiaries and their respective officers and, to the Borrower’s knowledge,
their respective employees, directors and agents, are in compliance with
Anti-Corruption Laws and applicable Sanctions in all material respects. None of
(a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such
Subsidiary any of their respective directors, officers or employees, or (b) to
the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that
will act in any capacity in connection with the credit facility established
hereby, is a Sanctioned Person. No Borrowing, use of proceeds or
other transaction contemplated by this Agreement will violate Anti-Corruption
Laws or applicable Sanctions. 

ARTICLE
VI. AFFIRMATIVE COVENANTS 

    
So long as any Lender shall have any Commitment hereunder and until the
Facility Termination Date, Holdings and the Borrower shall, and shall (except in
the case of the covenants set forth in Sections 6.01, 6.02, 6.03, 6.06, 6.09 and 6.11) cause each Subsidiary
to do the following; provided, however, that until January 1, 2015, the covenants set forth in this
Article VI
shall not apply to any MakerBot Entity: 

    
6.01 Financial Statements.
Deliver to the Administrative Agent (for delivery to the Lenders, which delivery
may be effected by filing with the SEC), in form and detail reasonably
satisfactory to the Administrative Agent and the Required Lenders: 

    
(a) as soon
as available, but in any event within 90 days after the end of each fiscal year
of Holdings (commencing with the fiscal year ending December 31, 2013), a
consolidated balance sheet of Holdings and its Subsidiaries as at the end of
such fiscal year, and the related consolidated statements of income or
operations, changes in shareholders’ equity, and cash flows for such fiscal
year, setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and prepared in accordance with
GAAP, such consolidated statements to be audited and accompanied by a report and
opinion of an independent certified public accountant of nationally recognized
standing, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception as
to the scope of such audit;

    
(b) as soon
as available, but in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of Holdings (commencing with the
fiscal quarter ending September 30, 2013), a consolidated balance sheet of
Holdings and its Subsidiaries as at the end of such fiscal quarter, the related
consolidated statements of income or operations for such fiscal quarter and for
the portion of Holdings’ fiscal year then ended, and the related consolidated
statements of changes in shareholders’ equity, and cash flows for the portion of
Holdings’ fiscal year then ended, in each case setting forth in comparative
form, as applicable, the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, such consolidated statements to be certified by the
chief executive officer, chief financial officer, treasurer or controller of
Holdings as fairly presenting the financial condition,
results of operations, shareholders’ equity and cash flows of Holdings and its
Subsidiaries in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes; 

59 

    
(c) no
later than 60 days after the end of each fiscal year of Holdings (including the fiscal
year in which the Maturity Date occurs), a management-prepared budget for
Holdings and its Subsidiaries for the then-current fiscal year; and 

    
(d) prior to December 24, 2013, the audited financial reports of the Borrower, on a non-consolidated basis, as at the end of the fiscal year immediately preceding  the date of execution of this Agreement, prepared in accordance with Israeli generally accepted accounting principles applicable to the Borrower. 

As to any information contained in
materials furnished pursuant to Section
6.02(c), Holdings shall not be separately
required to furnish such information under subsection (a) or (b) above, but the
foregoing shall not be in derogation of the obligation of Holdings to furnish
the information and materials described in subsections (a) and (b) above at the times
specified therein. 

    
6.02 Certificates; Other Information. Deliver to the Administrative Agent (for distribution to
each Lender), in form and detail reasonably satisfactory to the Administrative
Agent and the Required Lenders: 

    
(a) concurrently with the delivery of the financial statements referred to in
Section 6.01(a), a certificate of its independent certified public accountants
certifying such financial statements and stating that in making the examination
necessary therefor no knowledge was obtained of any Default under the financial
covenants set forth herein or, if any such Default shall exist, stating the
nature and status of such event; 

    
(b) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by the chief executive
officer, chief financial officer, treasurer or controller of Holdings (which
delivery may, unless the Administrative Agent, or a Lender requests executed
originals, be by electronic communication including fax or email and shall be
deemed to be an original authentic counterpart thereof for all
purposes);

    
(c) promptly after the same are available (and in any event within fifteen
(15) Business Days) copies of each annual report, proxy or financial statement
or other report or communication sent to the stockholders of the Borrower, and
copies of all annual, regular, periodic and special reports and registration
statements which Holdings or the Borrower may file or be required to file with
the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and
not otherwise required to be delivered to the Administrative Agent pursuant
hereto; 

    
(d) promptly, and in any event within fifteen (15) Business Days after
receipt thereof by any Loan Party or any Subsidiary thereof, copies of each
notice or other correspondence received from the SEC (or
comparable agency in any applicable non-U.S. jurisdiction) notifying such party
of the initiation of a formal investigation by such agency regarding financial
or other operational results of any Loan Party or any Subsidiary
thereof;

60 

    
(e) promptly, and in any event within ten (10) Business Days after
receipt thereof by any Loan Party or any Subsidiary thereof, copies of each
notice or other correspondence received from the Israeli Antitrust Authority (or
comparable agency) asserting a failure to comply with, or relating to any
material aspect of, Israeli antitrust Laws; 

    
(f) promptly, such additional information regarding the business,
financial or corporate affairs of Holdings or any Subsidiary, or compliance with
the terms of the Loan Documents, as the Administrative Agent or any Lender may
from time to time reasonably request. 

    
Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(c) (to the
extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to
have been delivered on the date (i) on which Holdings posts such documents, or
provides a link thereto on Holdings’ website on the Internet at the website
address listed on Schedule
10.02; or (ii) on which such documents are
posted on Holdings’ behalf on an Internet or intranet website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent);
provided
that: (i) Holdings shall deliver paper copies of such documents to the
Administrative Agent or any Lender upon its request to Holdings to deliver such
paper copies until a written request to cease delivering paper copies is given
by the Administrative Agent or such Lender and (ii) Holdings shall notify the
Administrative Agent (and the Administrative Agent shall promptly notify each
other Lender) of the posting of any such documents and, upon request, shall
provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft
copies) of such documents. The Administrative Agent shall have no obligation to
request the delivery of or to maintain paper copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by
Holdings with any such request by a Lender for delivery, and each Lender shall
be solely responsible for requesting delivery to it or maintaining its copies of
such documents. 

    
Each of Holdings and the Borrower hereby acknowledges that (a) the
Administrative Agent and/or the Arranger may, but shall not be obligated to,
make available to the Lenders materials and/or information provided by or on
behalf of Holdings or the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on Debt Domain, IntraLinks, Syndtrak or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders (each, a “Public
Lender”) may have personnel who do not wish
to receive material non-public information with respect to the Borrower or its
Affiliates, or the respective securities of any of the foregoing, and who may be
engaged in investment and other market-related activities with respect to such
Persons’ securities. Each of Holdings and the Borrower hereby agrees that (w)
all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that
the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” Holdings and the Borrower shall be deemed
to have authorized the Administrative Agent, the Arranger and the Lenders to
treat such Borrower Materials as not containing any material non-public information with respect to Holdings or its
securities for purposes of United States Federal and state securities laws
(provided,
however,
that to the extent such Borrower Materials constitute Information, they shall be
treated as set forth in Section 10.07); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Side Information;” and (z) the Administrative Agent
and the Arranger shall be entitled to treat any Borrower Materials that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform
not designated “Public Side Information.” Notwithstanding the foregoing, neither
Holdings nor the Borrower shall be under any obligation to mark any Borrower
Materials “PUBLIC.” 

61 

    
6.03 Notices. Promptly
notify the Administrative Agent of any of the following occurrences of which any
Responsible Officer of the Borrower has knowledge: 

    
(a) the
occurrence of any Default; 

    
(b) any
matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect; 

    
(c) the
occurrence of any ERISA Event; and 

    
(d) any
material change in accounting policies or financial reporting practices by
Holdings, the Borrower or any of their respective Subsidiaries. 

    
Each notice pursuant to this Section
6.03 shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes
to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with
particularity any and all provisions of this Agreement and any other Loan
Document that are known to have been breached. 

    
6.04 Payment of Material Obligations. Pay and discharge as the same shall become due and payable,
all its material obligations and liabilities, including (a) all material tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, including, without limitation, all VAT, if any, payable in
respect of any payment to be made by Holdings, the Borrower or any Guarantor
(including, any fees and expenses to be paid) under this Agreement or under any
other related agreement; (b) all material lawful claims which, if unpaid, would
by law become a Lien upon its property (other than a Permitted Lien); and (c)
all material Indebtedness, as and when due and payable, but subject to any
subordination provisions contained in any instrument or agreement evidencing
such Indebtedness, except in the case of clauses (a), (b) or (c), if (i) the same are
being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by Holdings,
the Borrower or such Subsidiary, or (ii) the failure to make such payment could
not reasonably be expected to result in a Material Adverse Effect. 

    
6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its legal
existence and good standing (with respect to jurisdictions in which the concept
of good standing exists) under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section
7.04 or 7.05; (b) take all reasonable action
to maintain all rights, privileges, permits, licenses and franchises necessary
or desirable in the normal conduct of its business,
except to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of
which could reasonably be expected to have a Material Adverse Effect.

62 

    
6.06 Maintenance of Properties. Other than as permitted under Article
VII hereof, each Loan Party shall (a)
maintain, preserve and protect all of its properties and equipment necessary in
the operation of its business in good working order and condition, ordinary wear
and tear excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof, except in the case of clause (a) or (b), where the failure to
do so could not reasonably be expected to have a Material Adverse Effect.

    
6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance companies not
Affiliates of the Borrower, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons. 

    
6.08 Compliance with Laws.

    
(a) Comply
in all material respects with the requirements of all Laws and all orders,
writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted; or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

    
(b) Maintain in effect and enforce policies and procedures designed to
ensure compliance by the Borrower, its Subsidiaries and their respective
directors, officers, employees and agents with Anti-Corruption Laws and
applicable Sanctions. 

    
6.09 Books and Records.
Maintain proper books of record and account, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of the
Borrower or such Subsidiary, as the case may be. 

    
6.10 Inspection Rights.
Permit representatives and independent contractors of the Administrative Agent
(and if requested by a Lender, accompanied by such Lender) to visit and inspect
any of its properties, to examine its corporate, financial and operating
records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent
public accountants, all at such reasonable times during normal business hours
and as often as may be reasonably desired, upon reasonable advance notice to the
Borrower; provided that, unless an Event of Default shall exist, the Administrative
Agent shall not (whether at its own request or at the request of a Lender)
exercise such rights more than one time in any calendar year; and
provided
further
however,
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice. 

63 

    6.11 Use of Proceeds. Use the
proceeds of the Borrowings for general corporate purposes, to include, without
limitation, the financing of Permitted Acquisitions or Investments not in
contravention of any Law or of any Loan Document. 

   
6.12 Approvals and Authorizations. Maintain all authorizations, consents, approvals and licenses from,
exemptions of, and filings and registrations with, each Governmental Authority
of the jurisdiction in which each Foreign Obligor is organized and existing, and
all approvals and consents of each other Person in such jurisdiction, in each
case that are required in connection with the Loan Documents, if the failure to
do so could reasonably be expected to result in a Material Adverse
Effect. 

   
6.13 Additional Guarantors.
Notify the Administrative Agent at the time after the Closing Date that any
Person (other than an Inactive Subsidiary) becomes a U.S. Subsidiary or an
Israeli Subsidiary, or any Inactive Subsidiary no longer qualifies as an
“Inactive Subsidiary” pursuant to the definition thereof, or of any transaction
permitted under Sections
7.04(a)(iii), 7.04(a)(iv) or 7.04(b)(i), and (subject to
the last sentence hereof), promptly thereafter (and in any event within 60
days), cause such Person to (a) become a Guarantor by executing and delivering
to the Administrative Agent a counterpart of the Israeli Guaranty Joinder
Agreement or the U.S. Subsidiary Guaranty Joinder Agreement, as applicable, or
such other document as the Administrative Agent shall reasonably deem
appropriate for such purpose, and (b) deliver to the Administrative Agent
documents of the types referred to in clauses
(iii) and (iv) of Section 4.01(a) and if required by the Administrative Agent in its reasonable
judgment favorable opinions of counsel to such Person (which shall cover, among
other things, the legality, validity, binding effect and enforceability of the
documentation referred to herein), all in form, content and scope reasonably
satisfactory to the Administrative Agent. Notwithstanding the foregoing, (a) no
Inactive Subsidiary shall be required to become a Guarantor, and (b) no MakerBot
Entity shall be required to become a Guarantor other than in accordance with
Section 6.15 hereof. 

   
6.14 Additional Documents and Further Actions. Each Loan Party shall at its expense, promptly do all such
acts and execute and deliver all such documents as the Administrative Agent,
may, from time to time, reasonably require in connection with the rights and
remedies of the Administrative Agent or any Lender pursuant to this Agreement or
any Loan Document, including the Guaranties, to consummate the transactions
contemplated herein or therein. 

   
6.15 MakerBot. On or before
January 17, 2015, cause each MakerBot Entity that is a U.S. Subsidiary to (a)
become a Guarantor by executing and delivering to the Administrative Agent a
counterpart of the U.S. Subsidiary Guaranty Joinder Agreement, and (b) deliver
to the Administrative Agent documents of the types referred to in
clauses (iii) and (iv) of Section 4.01(a) and if required by the Administrative Agent in its reasonable judgment
favorable opinions of counsel to such Person (which shall cover, among other
things, the legality, validity, binding effect and enforceability of the
documentation referred to herein), all in form, content and scope consistent
with the documentation delivered on the Closing Date with respect to the U.S.
Subsidiary Guarantors. 

   
6.16 Margin Stock. The
Borrower shall promptly (but in any event within fifteen (15) days) notify the
Administrative Agent in the event that more than 25% of the value of the assets
otherwise subject to the restrictions of
Section 7.01 would consist of margin stock, but for the provisions of Section 7.10(b), and shall
provide form FRU-1 if and when required under Regulation U of the FRB.

64

ARTICLE
VII. NEGATIVE COVENANTS 

     So long as any
Lender shall have any Commitment hereunder and until the Facility Termination
Date, neither Holdings nor the Borrower shall, nor shall it permit any
Subsidiary to, directly or indirectly, do any of the following; provided, however, that
until January 1, 2015, the covenants set forth in this Article VII shall not apply
to any MakerBot Entity: 

    
7.01 Liens. Create, incur,
assume or suffer to exist any Lien upon any of its property, assets or revenues,
whether now owned or hereafter acquired, other than the following (“Permitted
Liens”):

    
(a) Liens
pursuant to any Loan Document; 

    
(b) Liens
existing on the date hereof and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that (i) the property covered thereby is not increased
(unless such increase is itself a Permitted Lien), (ii) the amount secured or
benefited thereby is not increased except as contemplated by Section 7.03(b), and (iii)
any renewal or extension of the obligations secured or benefited thereby is
permitted by Section 7.03(b); 

    
(c) Liens
for taxes or other governmental charges or assessments not yet due or which are
being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books
of the applicable Person in accordance with GAAP; 

    
(d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or
other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 45 days or which are being contested in good
faith and by appropriate proceedings diligently conducted, if adequate reserves
with respect thereto are maintained on the books of the applicable Person;

    
(e) pledges
or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security or employee
legislation (including managers insurance, pension plans and severance payment
requirements and other social benefits or requirements under Israeli Law or the
other Laws of other foreign jurisdictions), other than any Lien imposed by
ERISA; 

    
(f) pledges
or deposits to secure the performance of bids, trade contracts, government
contracts and obligations, and leases (other than Indebtedness), statutory
obligations, surety and appeal bonds, performance bonds, and other obligations
of a like nature incurred in the ordinary course of business, including
obligations imposed by the applicable Laws of foreign jurisdictions; 

    
(g) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which do not in any case materially detract from the
value of the property subject thereto or
materially interfere with the ordinary conduct of the business of the applicable
Person; 

65 

     (h) Liens
securing judgments for the payment of money, or securing appeal or other surety
bonds related to such judgments, not constituting an Event of Default under
Section 8.01(h); 

    
(i) Liens
on Indebtedness permitted under Section
7.03(g)(i) and, in each case, not created in
contemplation of or in connection with such event; provided that (i) no such Lien shall
extend to or cover any other property or assets of any Loan Party or any
Subsidiary (including such Person), as the case may be, and (ii) such Lien shall
secure only those obligations that it secures on the date of such Acquisition or
Investment or the date such Person becomes a Subsidiary (or is so merged,
amalgamated or consolidated) and any refinancing or replacement
thereof;

    
(j) Liens
securing Indebtedness permitted under Section
7.03(e); provided that (i) such Liens do not at
any time encumber any property other than the property financed by such
Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost
or fair market value, whichever is lower, of the property being acquired on the
date of acquisition;

    
(k) Liens
arising by virtue of any contractual, statutory or common law provision relating
to banker’s liens, rights of setoff or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution;

    
(l) limitations upon the use or transfer of knowhow and manufacturing rights
arising under the Israeli Law for the Encouragement of Industrial Research and
Development, 1984, and related regulations; 

    
(m) restrictions on transfers of securities imposed by applicable securities
laws; 

(n) (i) any
interest of title of a lessor or licensor, and leases or licenses granted by
Holdings or any Subsidiaries to others, either (A) in a transaction permitted
under Section 7.02(c) or 7.05(f) hereof, or (B) otherwise in
the ordinary course of business and not interfering in any material respect with
the ordinary conduct of the business; 

     (ii) Liens arising by virtue of deposits
made or letters of credit or bonds obtained in the ordinary course of business
to secure liability for premiums to insurance carriers, payments to landlords,
payments in respect of utility obligations, payments for the delivery of goods
and materials, and similar ordinary course payment obligations; provided that, the
obligations secured by the Liens permitted pursuant to this subsection (n)(ii) shall not exceed $2,000,000 at
any time; and 

     (iii) Liens arising out of (A)
conditional sale, title retention, consignment, contract manufacturing, vendor
or seller financing or similar arrangements for the sale or manufacture of goods
entered into by any Loan Party or any Subsidiary thereof in the ordinary course
of business; (B) loans of equipment, goods and materials to educational,
research and non-profit institutions; and (C) loans and leases of equipment,
goods and materials to customers and potential customers on a trial or temporary
basis;

66 

     (o) Liens
solely on (i) cash earnest money deposits in connection with any letter of
intent or purchase agreement in connection with a Permitted Acquisition or
Investment; and (ii) cash or securities relating to escrows established for an
adjustment in purchase price, earnout or other liabilities or indemnities in
connection with Permitted Acquisitions or Investments or any Dispositions
permitted hereunder; and 

    
(p) Liens
not otherwise permitted hereunder securing obligations not to exceed $5,000,000
in the aggregate at any time. 

    
7.02 Investments. Make any
Investments, except: 

    
(a) Investments held by the Borrower or such Subsidiary in the form of cash
and Cash Equivalents; 

    
(b) advances to officers, directors and employees of any Loan Party and its
Subsidiaries in an aggregate amount not to exceed $500,000 at any time
outstanding, for travel, entertainment, relocation and analogous ordinary
business purposes; 

    
(c) (i)
Investments of any Loan Party in any Loan Party; (ii) Investments of any
Subsidiary in any Loan Party; (iii) Investments of any Subsidiary that is not a
Loan Party in any other Subsidiary that is not a Loan Party; (iv) Investments of
a Loan Party in any other wholly-owned Subsidiary; and (v) Investments of a Loan
Party in a joint venture that is otherwise a permitted Investment hereunder;

    
(d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the
ordinary course of business, and Investments received in satisfaction or partial
satisfaction thereof from financially troubled account debtors to the extent
reasonably necessary in order to prevent or limit loss; 

    
(e) Holdings, the Borrower or any of their respective Subsidiaries may
consummate any Acquisition (consistent with the defined term thereof) so long as
after giving pro forma effect to such Acquisition the Consolidated Leverage
Ratio shall be less than 2.50 to 1.00; 

    
(f) Holdings, the Borrower or any of their respective Subsidiaries may make
any Investment (consistent with the defined term thereof) so long as after
giving pro forma effect to such Investment (i) the Consolidated Leverage Ratio
shall be less than 2.25 to 1.00, and (ii) the available amount to be borrowed
under the Aggregate Commitments plus unrestricted cash and Cash
Equivalents of the Loan Parties, taken as a whole, is at least $100,000,000;

    
(g) Guarantees permitted by Section
7.03;

    
(h) Investments resulting from pledges or deposits that are included as
Permitted Liens;

    
(i) so long
as no Default would result after giving pro forma effect therefrom, Investments
consisting of non-cash stock or other Equity Interest consideration received in
connection with a Permitted Acquisition or Investment or a Disposition permitted
hereunder; 

67 

     (j) so long
as no Default would result after giving pro forma effect therefrom, Investments
and Acquisitions to the extent the consideration therefor consists of non-cash
stock or other Equity Interests; and 

    
(k) other
Investments not exceeding $5,000,000 in the aggregate in any fiscal year of the
Borrower. 

    
7.03 Indebtedness. Create,
incur, assume or suffer to exist any Indebtedness, except: 

     (a) Indebtedness under the Loan Documents; 

     (b) Indebtedness outstanding on the date hereof and listed on Schedule 7.03 and any
refinancings, refundings, renewals or extensions thereof; provided that (i) the
amount of such Indebtedness is not increased at the time of such refinancing,
refunding, renewal or extension except by an amount equal to a reasonable
premium or other reasonable amount paid, and fees and expenses reasonably
incurred, in connection with such refinancing and by an amount equal to any
existing commitments unutilized thereunder
and (ii) the terms relating to principal
amount, amortization, maturity, collateral (if any) and subordination (if any),
and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of any
instrument issued in connection therewith, are no less favorable in any material
respect to the Loan Parties or the Lenders than the terms of any agreement or
instrument governing the Indebtedness being refinanced, refunded, renewed or
extended and the interest rate applicable to any such refinancing, refunding,
renewing or extending Indebtedness does not exceed the then applicable market
interest rate; 

    
(c) Guarantees of any Loan Party in respect of Indebtedness otherwise
permitted hereunder of any Loan Party or any Subsidiary that is otherwise
subject to the covenants set forth in Articles
VI and VII herein; 

    
(d) obligations (contingent or otherwise) of Holdings, the Borrower or any of
their respective Subsidiaries existing or arising under any Swap Contract,
provided
that such obligations are (or were) entered into by such Person in the ordinary
course of business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by such
Person, and not for purposes of speculation or taking a “market view”;

    
(e) Indebtedness in respect of capital leases, Synthetic Lease Obligations
and purchase money obligations for fixed or capital assets within the
limitations set forth in Section
7.01(j); provided, however, that the aggregate amount of all such Indebtedness incurred in any
fiscal year of Holdings shall not exceed $5,000,000;

    
(f) unsecured Indebtedness incurred pursuant to the offering of convertible
unsecured bonds or similar convertible securities so long as (i) after giving
pro forma effect to such Indebtedness, the Consolidated Leverage Ratio shall be
less than 2.50 to 1.00 or (ii) the proceeds from any such offering of
convertible securities are used within seven Business Days of the closing of
such offering to repay outstanding Indebtedness owing under this Agreement in an
amount that will cause the Consolidated Leverage Ratio to be less than 2.50 to
1.00 after giving pro forma effect to such repayment; 

68 

     (g) (i)
secured Indebtedness of any Person that becomes, and continues as, a Subsidiary
after the date hereof, and secured Indebtedness in respect of assets acquired
pursuant to an Acquisition permitted hereunder and existing at the time of such
Acquisition in an aggregate amount with Non-Conforming Unsecured Acquisition
Debt referred to in subsection (g)(ii) below not to exceed $20,000,000 at any time outstanding;
provided
that (A) no such Indebtedness is created in contemplation of such Acquisition
and (B) immediately before and immediately after giving effect to the incurrence
of such secured Indebtedness, no Default or Event of Default shall have occurred
and be continuing (including without limitation any Event of Default arising
from any failure to comply with the financial covenants set forth in
Section 7.11), such calculation to be
determined on the basis of the financial information most recently delivered to
the Administrative Agent pursuant to Section
6.01(a) or (b); and (ii) unsecured Indebtedness
of any Person that becomes, and continues as, a Subsidiary after the date
hereof, and unsecured Indebtedness in respect of assets acquired pursuant to an
Acquisition permitted hereunder and existing at the time of such Acquisition;
provided
that (A) no such unsecured Indebtedness is created in contemplation of such
Acquisition, (B) immediately before and immediately after giving effect to the
incurrence of such unsecured Indebtedness, no Default or Event of Default shall
have occurred and be continuing (including without limitation any Event of
Default arising from any failure to comply with the financial covenants set
forth in Section 7.11), such calculation to
be determined on the basis of the financial information most recently delivered
to the Administrative Agent pursuant to Section 6.01(a) or (b), (C) such unsecured
Indebtedness has a stated maturity date that is at least three months after the
Maturity Date and (D) such unsecured Indebtedness either (x) contains terms and
covenants that are no more restrictive, taken as a whole, than the terms and
covenants set forth in this Agreement or (y) to the extent that the terms and
covenants in respect of such Indebtedness are more restrictive, taken as a
whole, than the terms and covenants set forth in this Agreement, this Agreement
shall be amended (which amendment shall, notwithstanding the provisions of
Section 10.01, require the consent of only the Administrative Agent) prior to,
or simultaneously with, the issuance of any such Indebtedness so that the terms
and covenants in this Agreement shall be no less restrictive; provided, however, that, if all
conditions set forth in this subsection
(g)(ii) have not otherwise been satisfied
which respect to such unsecured Indebtedness (“Non-Conforming Unsecured Acquisition Debt”), Holdings and its
Subsidiaries shall be permitted to incur such Non-Conforming Unsecured
Acquisition Debt in an aggregate amount with all such secured Indebtedness
incurred pursuant to subsection
(g)(i) above not exceed
$20,000,000 at any time outstanding; 

    
(h) Indebtedness (i) of any Loan Party owing to any other Loan Party; (ii) of
any Subsidiary that is not a Loan Party owing to any Loan Party; (iii) of any
Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan
Party; and (iv) of any Loan Party owing to any Subsidiary that is not a Loan
Party that, upon the request of the Administrative Agent, is subordinated on
terms reasonably acceptable to the Administrative Agent; which terms shall
permit interest payments thereunder as long as no Default or Event of Default
has occurred and is continuing;

    
(i) Indebtedness in the form of the MakerBot Earnout; 

    
(j) Indebtedness in the form of earnout obligations incurred in connection
with Permitted Acquisitions or Investments; 

69 

     (k) Indebtedness in respect of (i) cash management operations, netting
services, cash pooling arrangements, automatic clearinghouse arrangements,
daylight overdraft protections, employee credit card programs and other cash
management and similar arrangements in the ordinary course of business, and any
Guarantees thereof; and (ii) letters of credit or bonds obtained in the ordinary
course of business to secure liability for premiums to insurance carriers,
payments to landlords, payments in respect of utility obligations, payments for
the delivery of goods and materials, and similar ordinary course payment
obligations, not to exceed in the aggregate, for clause (ii), $2,000,000 at any time;
and 

    
(l) other
unsecured Indebtedness so long as after giving pro forma effect to the
incurrence of such Indebtedness (such calculation to be determined on the basis
of the financial information most recently delivered to the Administrative Agent
pursuant to Section 6.01(a) or (b)) the Consolidated Leverage Ratio shall be less than 2.50 to
1.00. 

    
7.04 Fundamental Changes.
Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose
of (whether in one transaction or in a series of transactions) all or
substantially all of its IP Rights or other assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom: 

    
(a) any
Subsidiary may merge with (i) Holdings; provided that Holdings shall be the
continuing or surviving Person; (ii) the Borrower (including in connection with
a Permitted Acquisition or Investment), provided that the Borrower shall be
the continuing or surviving Person; (iii) any one or more other Subsidiaries
(including in connection with a Permitted Acquisition or Investment),
provided
that when any Guarantor is merging with another Subsidiary, the Guarantor shall
either be the continuing or surviving Person or shall become a Guarantor
pursuant to the provisions of Section
6.13 hereof; or (iv) an acquirer as part of a
Disposition permitted under Section
7.05 and upon such disposition such Guarantor
shall be released from its Guaranty pursuant to Section 9.10 hereof; 

    
(b) any
Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) (i) to Holdings, the Borrower or to another
Subsidiary; provided that if the transferor in such a transaction is a Guarantor,
then the transferee must either be Holdings, the Borrower or a Guarantor or a
Subsidiary that becomes a Guarantor pursuant to the provisions of
Section 6.13 hereof; or (ii) as part of a Disposition permitted under Section 7.05, upon which
Disposition of all of its assets such Guarantor may be dissolved and shall be
released from its Guaranty pursuant to Section
9.10 hereof;

    
(c) subject
to Section 7.04(b), the existence (corporate or otherwise) of any Subsidiary of Holdings or
the Borrower may be terminated or liquidated if such termination or liquidation is
determined by Holdings or the Borrower to be in the best interest of Holdings
and its Subsidiaries, taken as a whole, and such termination would not
reasonably be expected to result in a Material Adverse Effect (upon which
dissolution such Subsidiary, if a Guarantor, may be dissolved and shall be
released from its Guaranty pursuant to Section
9.10 hereof); and 

    
(d) Holdings, the Borrower or any of their respective Subsidiaries may
consummate any Permitted Acquisition or Investment.

70 

    
7.05 Dispositions. Make any
Disposition, except: 

     (a) Dispositions of obsolete, surplus or worn out property, whether now owned
or hereafter acquired, in the ordinary course of business; 

    
(b) Dispositions of inventory in the ordinary course of business; 

    
(c) (i)
Dispositions of property to the extent that (A) such property is exchanged for
credit against the purchase price of similar replacement property, (B) the
proceeds of such Disposition are reasonably promptly applied to the purchase
price of such replacement property, or (C) such property is no longer necessary
to the continued operation of the business of any Loan Party or any Subsidiary;
and (ii) Dispositions of real property of any Loan Party or any of its
Subsidiaries; provided that such Disposition does not materially adversely affect
the business or operation of the Loan Parties and their Subsidiaries, taken as a
whole;

    
(d) Dispositions of property by any Subsidiary to Holdings, the Borrower or
to a wholly-owned Subsidiary; provided that if the transferor of
such property is a Guarantor, the transferee thereof must either be Holdings,
the Borrower or a Guarantor;

    
(e) Dispositions otherwise permitted under this Agreement;

    
(f) the
licensing, whether exclusive or non-exclusive, of IP Rights to the extent such
licensing does not materially interfere with the business of Holdings and its
Subsidiaries, taken as a whole;

    
(g) Dispositions of accounts receivable arising in the ordinary course of
business which are overdue or payable by a distressed company in connection with
the compromise or collection thereof; 

    
(h) (i) as
long as, at the time of such Disposition, no Default shall exist or would result
therefrom, Dispositions of Investments that are not necessary to the business or
operations of any Loan Party; (ii) Dispositions of assets acquired or to be
acquired in an Acquisition or Investment that is not necessary to the business
or operations of any Loan Party or the entity that was the subject of an
Acquisition or Investment or not permitted to be held by any Loan Party or any
of its Subsidiaries due to a requirement of Law; or (iii) Required Dispositions;
and 

    
(i) Dispositions by Holdings and its Subsidiaries not otherwise permitted
under this Section 7.05; provided that (i) at the time of such Disposition, no Default shall
exist or would result from such Disposition and (ii) the aggregate book value of
all property Disposed of in reliance on this clause (i) in any fiscal year shall
not exceed $10,000,000; 

provided, however, that any Disposition pursuant to subsections (a) through
(i) (other
than clause (d)) shall be for fair market value.

71 

    
7.06 Restricted Payments.
Declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that: 

     (a) each
Subsidiary may make Restricted Payments to Holdings, the Borrower, the
Guarantors and any other Person that owns an Equity Interest in such Subsidiary,
ratably according to their respective holdings of the type of Equity Interest in
respect of which such Restricted Payment is being made; 

    
(b) Holdings, the Borrower and each Subsidiary may declare and make dividend
payments or other distributions or payments payable solely in the common stock
or other common Equity Interests of such Person; 

    
(c) Holdings, the Borrower and each Subsidiary may purchase, redeem or
otherwise acquire Equity Interests issued by it with the proceeds received from
the substantially concurrent issue of new shares of its common stock or other
common Equity Interests;

    
(d) so long
as no Default shall have occurred and be continuing at the time of any action
described below or would result therefrom, Holdings, the Borrower and each
Subsidiary may make payments in respect of an intercompany Indebtedness
permitted pursuant to Section 7.03(h); 

    
(e) so long
as no Default shall have occurred and be continuing at the time of any action
described below or would result therefrom, Holdings or the Borrower may make
payments under the MakerBot Earnout; 

    
(f) so long
as no Default shall have occurred and be continuing at the time of any action
described below or would result therefrom, Holdings, the Borrower and each
Subsidiary may make Restricted Payments (including repurchases of Equity
Interests) in connection with a compensation plan provided to employees,
officers, directors or other service providers;

    
(g) so long
as no Default shall have occurred and be continuing at the time of any action
described below or would result therefrom, Holdings or the Borrower may make
earnout payments or other deferred payment obligations in connection with
Permitted Acquisitions or Investments measured or contingent in whole or in part
by events or performance occurring after such Acquisition or Investment; and

    
(h) so long
as (x) after giving pro forma effect thereto, the Consolidated Leverage Ratio
shall be less than 2.25 to 1.00 and (y) no Default shall have occurred and be
continuing at the time of any action described below or would result therefrom,
Holdings may make other Restricted Payments not otherwise described in this
Section 7.06 to any Person that owns an Equity Interest or capital stock in
Holdings.

    
7.07 Change in Nature of Business. Engage in any material line of business substantially different from
those lines of business conducted by Holdings and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto that has the
effect of materially changing the nature of the business of Holdings and its
Subsidiaries, taken as a whole. 

    
7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate or any party
that owns 25% or more of the Borrower or any of its Affiliates, whether or not
in the ordinary course of business, other than on fair and reasonable terms
substantially as favorable to Holdings, the Borrower or such respective
Subsidiary as would be obtainable by Holdings, the Borrower
or such respective Subsidiary at the time in a comparable arm’s length
transaction with a Person other than an Affiliate, provided that the foregoing restriction
shall not apply to (a) transactions between or among Loan Parties, (b)
transactions between Subsidiaries that are not Loan Parties, and (c) customary
compensation and indemnification paid to officers, directors, employees and
joint venture parties. 

72 

    
7.09 Burdensome Agreements.
Enter into any Contractual Obligation (other than this Agreement or any other
Loan Document) that (a) limits the ability (i) of any Subsidiary to make
Restricted Payments to Holdings, the Borrower or any Guarantor or to otherwise
transfer property to Holdings, the Borrower or any Guarantor, (ii) of any
Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of Holdings,
the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens
on property of such Person; provided, however, that this clause (iii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of a
Lien permitted under Sections
7.01(e), (f), (h), (i), (j), (n), (i), (o) and (p) solely to the extent any such
negative pledge relates to the property that is the subject of such Lien; or (b)
requires the grant of a Lien to secure an obligation of such Person if a Lien is
granted to secure another obligation of such Person; provided, however, that this Section 7.09 shall not
prohibit any such limitations or requirements that are binding on a Person at
the time such Person first became a Subsidiary of Holdings, so long as all such
limitations and requirements were not entered into in contemplation of such
Person becoming a Subsidiary of Holdings, together with any replacement
agreement thereof so long as the terms thereof are not materially less favorable
to such Subsidiary. 

    
7.10 Use of Proceeds.

     (a) Use the
proceeds of any Borrowing, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others
for the purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for such purpose in a manner which violates, or would be
inconsistent with, Regulation U of the FRB; provided however, that (a) this Section 7.10 shall not
prohibit the proceeds of a Borrowing to be used for the purpose of acquiring
margin stock (within the meaning of Regulation U of the FRB) in connection with
a Permitted Acquisition or Investment; and (b) that in the event that proceeds
of a Borrowing are so used to purchase or carry margin stock, the restrictions
of Section 7.01 shall not apply to any margin stock (for so long as it continues to be
margin stock) that constitutes more than 25% of the value (as determined by any
reasonable method) of the assets otherwise subject to Section 7.01. 

    
(b) Request any Borrowing, and the Borrower shall not use, and shall
procure that its Subsidiaries and its or their respective directors, officers,
employees and agents shall not use, the proceeds of any Borrowing (i) in
furtherance of an offer, payment, promise to pay, or authorization of the
payment or giving of money, or anything else of value, to any Person in
violation of any Anti-Corruption Laws, (ii) for the purpose of funding,
financing or facilitating any activities, business or transaction of or with any
Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that
would result in the violation of any Sanctions applicable to any party hereto.

73 

    
7.11 Financial Covenants.

     (a) Minimum Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio measured
at the end of any fiscal quarter of Holdings to be less than 1.50 to 1.00.

    
(b) Maximum Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio measured at the end of any fiscal quarter
of Holdings to be greater than 2.75 to 1.00. 

    
(c) Consolidated EBITDA. Permit
Consolidated EBITDA as of the end of any fiscal quarter of Holdings measured for
the trailing four fiscal quarters to be less than the amount set forth below
opposite such fiscal quarter: 

		Minimum Consolidated
	Four Fiscal Quarters Ending	EBITDA
	Closing Date through September 30,
      2014	$60,000,000
	December 31, 2014 through March
      31, 2015	$85,000,000
	June 30, 2015 and each fiscal
      quarter thereafter	$100,000,000

    
7.12 Sanctions. Directly or
indirectly, use the proceeds of any Borrowing, or lend, contribute or otherwise
make available such proceeds to any Subsidiary, joint venture partner or other
individual or entity, to fund any activities of or business with any individual
or entity, or in any Designated Jurisdiction, that, at the time of such funding,
is the subject of Sanctions, or in any other manner that will result in a
violation by any individual or entity participating in the transaction, whether
as Lender, Arranger, Administrative Agent, Swing Line Lender, or otherwise of
Sanctions. 

    
7.13 Assignments In Contravention of No-Action
Letter. Permit any assignments pursuant
to Section 10.06 that would violate the No-Action Letter or any applicable Israeli or
foreign Laws. 

ARTICLE
VIII. EVENTS OF DEFAULT AND REMEDIES

    
8.01 Events of Default. Any
of the following shall constitute an “Event of Default”: 

    
(a) Non-Payment. The Borrower or any other
Loan Party fails to pay (i) when and as required to be paid herein, any amount
of principal of any Loan, or (ii) within five (5) days after the same becomes
due, any interest on any Loan, or any fee due hereunder, or (iii) within five
(5) days after the same becomes due, any other amount payable hereunder or under
any other Loan Document; or 

    
(b) Specific Covenants. Holdings or the
Borrower fails to perform or observe any term, covenant or agreement contained
in any of Section 6.01, 6.02(a) or (b), 6.03(a), 6.05(a), 6.11, 6.13, 6.15 or 6.16 or Article
VII; or 

74 

      
(c) Other
Defaults. Any Loan Party fails to perform or
observe any other covenant or agreement (not specified in subsection (a) or
(b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days after the earlier of (i) knowledge by any
Responsible Officer of Borrower, or (ii) receipt by the Borrower of written
notice thereof from the Administrative Agent; or 

      
(d) Representations and Warranties. (i)
Any representation or warranty contained in Sections 5.01(a), 5.02, 5.03, 5.04, 5.14 and 5.21 made or deemed made by
or on behalf of Holdings or the Borrower, (ii) any other representation or
warranty made or deemed made by or on behalf of Holdings, the Borrower or any
other Loan Party herein or in any other Loan Document shall be incorrect or
misleading in any material respect (or, in the case of any such other
representation or warranty qualified by materiality, Material Adverse Effect or
any similar concept, shall be incorrect or misleading in any respect) when made
or deemed made; or 

      
(e) Cross-Default. (i) Holdings, the
Borrower or any of their respective Subsidiaries (A) fails to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise) in respect of any Indebtedness or Guarantee (other than
Indebtedness hereunder and Indebtedness under Swap Contracts) having an
aggregate principal amount (including undrawn committed or available amounts and
including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than $10,000,000, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or Guarantee
described in clause (A) or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event occurs, the effect of which
default or other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee
or agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause, with the giving of notice if required, such Indebtedness to be demanded
or to become due or to be repurchased, prepaid (other than mandatory prepayments
not due to a default thereunder), defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay (other than mandatory prepayments
not due to a default thereunder), defease or redeem such Indebtedness to be
made, prior to its stated maturity, or such Guarantee to become payable or cash
collateral in respect thereof to be demanded (but excluding pursuant to
due-on-sale clauses of which are not subject to or triggered by a breach or
default); or (ii) there occurs under any Swap Contract an Early Termination Date
(as defined in such Swap Contract) resulting from (A) any event of default under
such Swap Contract as to which Holdings, the Borrower or any of their respective
Subsidiaries is the Defaulting Party (as defined in such Swap Contract) or (B)
any Termination Event (as so defined) under such Swap Contract as to which
Holdings, the Borrower or any of their respective Subsidiaries is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by
Holdings or such Subsidiary as a result thereof is greater than $10,000,000; or

      
(f) Insolvency
Proceedings, Etc. Any Loan Party or any of
its Subsidiaries institutes or consents to the institution of any proceeding for
the bankruptcy, winding-up, dissolution, administration, insolvency,
reorganization of or for any freeze order (hakpaa’t halichim), moratorium or
other similar proceeding under any Debtor Relief Law, or makes an assignment for
the benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

75 

      
(g) Inability
to Pay Debts; Attachment. (i) Holdings, the
Borrower or any of their respective Subsidiaries becomes unable or admits in
writing its inability or fails generally to pay its debts as they become due, or
(ii) any writ or warrant of attachment or execution or similar process is issued
or levied against all or any material part of the property of any such Person
and is not released, vacated or fully bonded within 30 days after its issue or
levy; or 

      
(h) Judgments. There is entered against
Holdings, the Borrower or any of their respective Subsidiaries (i) one or more
final and unappealable judgments or orders for the payment of money in an
aggregate amount (as to all such judgments or orders) exceeding $10,000,000 (to
the extent not covered by independent third-party insurance as to which the
insurer does not dispute coverage, other than a customary reservation of rights
letter), or (ii) any one or more non-monetary final judgments that have, or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order, or (B) in the case of a
monetary judgment, such judgment remains unpaid there is a period of 45
consecutive days during which a stay of enforcement of such judgment, by reason
of a pending appeal or otherwise, is not in effect; or 

      
(i) ERISA. (i) An ERISA Event occurs with
respect to a Pension Plan or Multiemployer Plan which has resulted or could
reasonably be expected to result in liability of the Borrower under Title IV of
ERISA to the Pension Plan, Multiemployer Plan or the PBGC that could be
reasonably likely to result in a Material Adverse Effect, or (ii) the Borrower
or any ERISA Affiliate fails to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate
amount that could be reasonably likely to result in a Material Adverse Effect;
or 

      
(j) Invalidity
of Loan Documents. Any material provision of
any Loan Document, at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or thereunder or upon the
Facility Termination Date, ceases to be in full force and effect; or any Loan
Party or any other Person contests in any manner the validity or enforceability
of any material provision of any Loan Document; or any Loan Party denies that it
has any or further liability or obligation under any Loan Document, or purports
to revoke, terminate or rescind any material provision of any Loan Document; or

      
(k) Change of
Control. There occurs any Change of Control;
or 

      
(l) Unlawfulness of Loan Documents. This
Agreement or any Loan Document or the performance hereof or thereof shall at any
time and for any reason shall be declared by a court of competent jurisdiction
to be, or pursuant to any applicable Law shall be, unlawful. 

76 

      
8.02 Remedies Upon Event of Default. If any
Event of Default occurs and is continuing, the Administrative Agent shall, at
the request of, or may, with the consent of, the Required Lenders, take any or
all of the following actions: 

       (a) declare the commitment of each
Lender to make Loans to be terminated, whereupon such commitments shall be
terminated;

       (b) declare the unpaid principal
amount of all outstanding Loans, all interest accrued and unpaid thereon, and
all other amounts owing or payable hereunder or under any other Loan Document to
be immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;
and 

       (c) exercise on behalf of itself
and the Lenders all rights and remedies available to it and the Lenders under
the Loan Documents; 

provided, however, that upon the occurrence of an actual or deemed entry of an order for
relief with respect to Holdings or the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all interest
and other amounts as aforesaid shall automatically become due and payable
without further act of the Administrative Agent or any Lender. 

      
8.03 Application of Funds. After the
exercise of remedies provided for in Section 8.02 (or after the Loans have
automatically become immediately due and payable as set forth in the proviso to
Section 8.02), any amounts received on account of the Obligations shall, subject to
the provisions of Sections
2.14, be applied by the Administrative Agent
in the following order: 

      
First, to payment of that portion
of the Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Administrative
Agent and amounts payable under Article III) payable to the Administrative Agent
in its capacity as such; 

      
Second, to payment of that
portion of the Obligations constituting fees, indemnities and other amounts
(other than principal and interest) payable to the Lenders (including fees,
charges and disbursements of counsel to the respective Lenders and amounts
payable under Article III), ratably among them in proportion to the respective amounts
described in this clause Second payable to them; 

      
Third, to payment of that portion
of the Obligations constituting accrued and unpaid interest on the Loans and
other Obligations under the Loan Documents, ratably among the Lenders in
proportion to the respective amounts described in this clause Third payable to them;

      
Fourth, to payment of that
portion of the Obligations constituting unpaid principal of the Loans and
Obligations then owing under Related Hedge Agreements and Related Cash
Management Agreements, ratably among the Lenders, the Hedge Banks and the Cash
Management Banks in proportion to the respective amounts described in this
clause
Fourth held
by them; and 

77 

      
Last, the balance, if any, after all of
the Obligations have been indefeasibly paid in full or upon the Facility
Termination Date, to the Borrower or as otherwise required by Law; 

provided that Excluded Swap Obligations
with respect to any Loan Party shall not be paid with amounts received from such
Loan Party or its assets, but appropriate adjustments shall be made with respect
to payments from other Loan Parties to preserve the allocation to Obligations
otherwise set forth above in this Section. 

Notwithstanding the foregoing,
Obligations arising under Related Cash Management Agreements and Related Hedge
Agreements shall be excluded from the application described above if the
Administrative Agent has not received written notice thereof, together with such
supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank or Hedge Bank, as the case may be. Each Cash
Management Bank or Hedge Bank not a party to this Agreement that has given the
notice contemplated by the preceding sentence shall, by such notice, be deemed
to have acknowledged and accepted the appointment of the Administrative Agent
pursuant to the terms of Article
IX for itself and its Affiliates as if a
“Lender” party hereto. 

ARTICLE
IX. ADMINISTRATIVE AGENT

      
9.01 Appointment and Authority. Each of the Lenders hereby irrevocably appoints Bank of America to act
on its behalf as the Administrative Agent hereunder and under the other Loan
Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent and the Lenders, and neither the Borrower
nor Holdings shall have rights as a third party beneficiary of any of such
provisions. It is understood and agreed that the use of the term “agent” herein
or in any other Loan Documents (or any other similar term) with reference to the
Administrative Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable Law.
Instead such term is used as a matter of market custom, and is intended to
create or reflect only an administrative relationship between contracting
parties. 

      
9.02 Rights as a Lender.
The Person serving as the Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the
context otherwise requires, include the Person serving as the Administrative
Agent hereunder in its individual capacity. Such Person and its Affiliates may
accept deposits from, lend money to, own securities of, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with Holdings, the Borrower or any of their respective Subsidiaries
or other Affiliate thereof as if such Person were not the Administrative Agent
hereunder and without any duty to account therefor to the Lenders. 

78 

      
9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein and in the other Loan Documents, and its
duties hereunder shall be administrative in nature. Without limiting the
generality of the foregoing, the Administrative Agent: 

       (a) shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing; 

       (b) shall not have any duty to take
any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that the Administrative Agent is required to exercise as directed
in writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be expressly provided for herein or in the other Loan
Documents), provided that the Administrative Agent shall not be required to take
any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or
applicable law, including for the avoidance of doubt any action that may be in
violation of the automatic stay under any Debtor Relief Law or that may effect a
forfeiture, modification or termination of property of a Defaulting Lender in
violation of any Debtor Relief Law; and 

       (c) shall not, except as expressly
set forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to the
Borrower or any of its Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any
capacity. 

      
The Administrative Agent shall not be liable for any action taken or not taken
by it (i) with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections
10.01 and 8.02) or (ii) in the absence of its
own gross negligence or willful misconduct as determined by a court of competent
jurisdiction by final and nonappealable judgment. The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice
describing such Default is given in writing to the Administrative Agent by the
Borrower or a Lender. 

      
The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document or (v) the satisfaction
of any condition set forth in Article
IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

      
9.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or other
distribution) believed by it to be genuine and to have been signed, sent or
otherwise authenticated by the proper Person. The Administrative Agent also may
rely upon any statement made to it orally or by telephone and believed by it to
have been made by the proper Person, and shall not incur any liability for
relying thereon. In determining compliance with any condition hereunder to the
making of a Loan that by its terms must be fulfilled to the satisfaction of a
Lender, the Administrative Agent may presume that such condition is satisfactory
to such Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of
any such counsel, accountants or experts.

79 

      
9.05 Delegation of Duties. The
Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any
one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Related Parties. The
exculpatory provisions of this Article shall apply to any such sub-agent and to
the Related Parties of the Administrative Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as
Administrative Agent. The Administrative Agent shall not be responsible for the
negligence or misconduct of any subagents except to the extent that a court of
competent jurisdiction determines in a final and non-appealable judgment that
the Administrative Agent acted with gross negligence or willful misconduct in
the selection of such sub-agents. 

      
9.06 Resignation of Administrative Agent.

       (a) The Administrative Agent may
at any time give notice of its resignation to the Lenders and the Borrower. Upon
receipt of any such notice of resignation, the Required Lenders shall have the
right to appoint a successor, which shall be a bank with an office in the United
States, or an Affiliate of any such bank with an office in the United States
which successor, if not a Lender, shall, as long as no Event of Default exists,
be approved by the Borrower, such approval not to be unreasonably withheld. If
no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation (or such earlier day as shall be agreed by
the Required Lenders) (the “Resignation
Effective Date”), then the retiring
Administrative Agent may (but shall not be obligated to) on behalf of the
Lenders, appoint a successor Administrative Agent meeting the qualifications set
forth above and the Borrower’s approval (if required above). Whether or not a
successor has been appointed, such resignation shall become effective in
accordance with such notice on the Resignation Effective Date. 

       (b) If the Person serving as
Administrative Agent is a Defaulting Lender pursuant to clause (d) of the
definition thereof, the Required Lenders may, to the extent permitted by
applicable law, by notice in writing to the Borrower and such Person remove such
Person as Administrative Agent and appoint a successor , which shall be a Lender
or a bank with an office in the United States, or an Affiliate of any such bank
with an office in the United States, which successor, if not a Lender shall, so
long as no Event of Default exists, be approved by Borrower, such approval not to be unreasonably withheld or delayed. If no such
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days (or such earlier day as shall be agreed
by the Required Lenders) (the “Removal
Effective Date”), then such removal shall
nonetheless become effective in accordance with such notice on the Removal
Effective Date. 

80 

      
(c) With effect
from the Resignation Effective Date or the Removal Effective Date (as
applicable) (1) the retiring or removed Administrative Agent shall be discharged
from its duties and obligations hereunder and under the other Loan Documents and
(2) except for any indemnity payments or other amounts then owed to the retiring
or removed Administrative Agent, all payments, communications and determinations
provided to be made by, to or through the Administrative Agent shall instead be
made by or to each Lender directly, until such time, if any, as the Required
Lenders appoint a successor Administrative Agent as provided for above. Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or removed) Administrative Agent (other
than as provided in Section
3.01(h) and other than any rights to
indemnity payments or other amounts owed to the retiring or removed
Administrative Agent as of the Resignation Effective Date or the Removal
Effective Date, as applicable), and the retiring or removed Administrative Agent
shall be discharged from all of its duties and obligations hereunder or under
the other Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrower and such successor. After the retiring or removed
Administrative Agent’s resignation or removal hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04 shall continue in effect
for the benefit of such retiring or removed Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring or removed Administrative Agent
was acting as Administrative Agent. 

      
(d) Any resignation by Bank of America as Administrative Agent pursuant to this
Section shall also constitute its resignation Swing Line Lender. If Bank of
America resigns as Swing Line Lender, it shall retain all the rights of the
Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such resignation, including
the right to require the Lenders to make Base Rate Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.03(c).
Upon the
appointment by the Borrower of a successor Swing Line Lender hereunder (which
successor shall in all cases be a Lender other than a Defaulting Lender), (a)
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring Swing Line Lender, and (b) the
retiring Swing Line Lender shall be discharged from all of its duties and
obligations hereunder or under the other Loan Documents. 

      
9.07 Non-Reliance on Administrative Agent and Other
Lenders. Each Lender acknowledges that
it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

81 

      
9.08 No Other Duties, Etc. Anything herein
to the contrary notwithstanding, none of the Book Manager, Arranger,
Co-Syndication Agents or Documentation Agent listed on the cover page hereof
shall have any powers, duties or responsibilities under this Agreement or any of
the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or a Lender hereunder. 

      
9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding under any Debtor Relief Law
or any other judicial proceeding relative to any Loan Party, the Administrative
Agent (irrespective of whether the principal of any Loan shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise: 

       (a) to file and
prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Obligations under the Loan
Documents that are owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders
and the Administrative Agent under Section
2.08 and 10.04) allowed in such judicial
proceeding; and 

       (b) to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same; 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under
Sections 2.08 and
10.04.

       Nothing contained
herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations
or the rights of any Lender to authorize the Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding. 

      
9.10 Guaranty Matters. Each of the Lenders
irrevocably authorizes the Administrative Agent, at its option and in its
discretion, to release any Guarantor from its obligations under the applicable
Guaranty if such Person ceases to be a U.S. Subsidiary or an Israeli Subsidiary
of the Borrower as a result of a transaction permitted under the Loan Documents. 

82 

      
Upon request by the Administrative Agent at any time, the Required Lenders will
confirm in writing the Administrative Agent’s authority to release any Guarantor
from its obligations under the Guaranty pursuant to this Section 9.10. 

      
9.11 Related
Cash Management Agreements and Related Hedging
Obligations. Except as otherwise expressly
set forth herein, no Cash Management Bank or Hedge Bank that obtains the benefit
of the provisions of Section
8.03 or any Guaranty by virtue of the
provisions hereof or of the applicable Guaranty shall have any right to notice
of any action or to consent to, direct or object to any action hereunder or
under any other Loan Document (or to notice of or to consent to any amendment,
waiver or modification of the provisions hereof or of either Guaranty) other
than in its capacity as a Lender and, in such case, only to the extent expressly
provided in the Loan Documents. Notwithstanding any other provision of this
Article IX
to the contrary, the Administrative Agent shall not be required to verify the
payment of, or that other satisfactory arrangements have been made with respect
to, Obligations arising under Related Cash Management Agreements and Related
Hedging Obligations unless the Administrative Agent has received written notice
of such Obligations, together with such supporting documentation as the
Administrative Agent may request, from the applicable Cash Management Bank or
Hedge Bank, as the case may be. The Administrative Agent shall not be required
to verify the payment of, or that other satisfactory arrangements have been made
with respect to, Obligations arising under Related Cash Management Agreements
and Related Hedge Agreements in the case of a Facility Termination Date.

ARTICLE
X. MISCELLANEOUS 

      
10.01 Amendments, Etc. No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Borrower or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or consent shall: 

      
(a) waive any
condition set forth in Sections
4.01(a) or (b) without the written consent of
each Lender; 

      
(b) extend or
increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender; 

      
(c) postpone any
date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

83 

      
(d) reduce the
principal of, or the rate of interest specified herein on, any Loan, or (subject
to clause (iii) of the second proviso to this Section
10.01) any fees or other amounts payable
hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby; provided, however, that only the consent of the
Required Lenders shall be necessary (i) to amend the definition of “Default
Rate” or to waive any obligation of the Borrower to pay interest at the Default
Rate or (ii) to amend any financial covenant hereunder (or any defined term used
therein) even if the effect of such amendment would be to reduce the rate of
interest on any Loan or to reduce any fee payable hereunder; 

      
(e) change
Section 8.03 in a manner that would alter the pro rata sharing of payments required
thereby without the written consent of each Lender; 

      
(f) change any
provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to
amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder, without the written consent of each Lender;
or 

      
(g) release all or
substantially all of the value of the Guaranties without the written consent of
each Lender, except to the extent the release of any Guarantor is permitted
pursuant to Section 9.10 (in which case such release may be made by the Administrative
Agent acting alone); 

and, provided further, that (i) no amendment, waiver
or consent shall, unless in writing and signed by the Swing Line Lender in
addition to the Lenders required above, affect the rights or duties of the Swing
Line Lender under this Agreement; (ii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent in addition to the
Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; and (iii) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder (and any amendment, waiver or consent which by its
terms requires the consent of all Lenders or each affected Lender may be
effected with the consent of the applicable Lenders other than Defaulting
Lenders), except that (x) the Commitment of any Defaulting Lender may not be
increased or extended without the consent of such Lender and (y) any waiver,
amendment or modification requiring the consent of all Lenders or each affected
Lender that by its terms affects any Defaulting Lender disproportionately
adversely relative to other affected Lenders shall require the consent of such
Defaulting Lender. 

      
10.02 Notices; Effectiveness; Electronic
Communication.

      
(a) Notices
Generally. Except in the case of notices and
other communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications provided for
herein shall be in writing and in English and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
facsimile as follows, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows: 

       (i)
if to Holdings, the Borrower or any other Loan
Party, the Administrative Agent or the Swing Line Lender, to the address,
facsimile number, electronic mail address or telephone number specified for such
Person on Schedule 10.02; and

84 

       (ii)
if to any other Lender, to the address, facsimile
number, electronic mail address or telephone number specified in its
Administrative Questionnaire (including, as appropriate, notices delivered
solely to the Person designated by a Lender on its Administrative Questionnaire
then in effect for the delivery of notices that may contain material non-public
information relating to the Borrower). 

Notices and other communications sent
by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices and other
communications sent by facsimile shall be deemed to have been given when sent
(except that, if not given during normal business hours for the recipient, shall
be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices and other communications delivered through
electronic communications to the extent provided in subsection (b) below, shall be
effective as provided in such subsection
(b). 

      
(b) Electronic
Communications. Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent, provided that the foregoing
shall not apply to notices to any Lender pursuant to Article II if such Lender has notified
the Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication. The Administrative Agent, the Swing Line
Lender or the Borrower may each, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications. 

      
Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), and (ii) notices or communications posted to an
Internet or intranet website shall be deemed received upon the deemed receipt by
the intended recipient at its e-mail address as described in the foregoing
clause (i)
of notification that such notice or communication is available and identifying
the website address therefor; provided that, for both
clauses (i)
and (ii),
if such notice, email or other communication is not sent during the normal
business hours of the recipient, such notice, email or communication shall be
deemed to have been sent at the opening of business on the next business day for
the recipient. 

      
(c) The
Platform. THE PLATFORM IS PROVIDED “AS IS”
AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR
THE PLATFORM. In no event shall the Administrative Agent or any of its Related
Parties (collectively, the “Agent
Parties”) have any liability to the Borrower,
any Lender or any other Person for losses, claims, damages, liabilities or
expenses of any kind (whether in tort, contract or otherwise) arising out of the
Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet.

85 

      
(d) Change of
Address, Etc. Each of the Borrower, the
Administrative Agent and the Swing Line Lender may change its address, facsimile
or telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each other Lender may change its address, facsimile or
telephone number for notices and other communications hereunder by notice to the
Borrower, the Administrative Agent and the Swing Line Lender. In addition, each
Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address, contact
name, telephone number, facsimile number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire instructions
for such Lender. Furthermore, each Public Lender agrees to cause at least one
individual at or on behalf of such Public Lender to at all times have selected
the “Private Side Information” or similar designation on the content declaration
screen of the Platform in order to enable such Public Lender or its delegate, in
accordance with such Public Lender’s compliance procedures and applicable Law,
including United States Federal and state securities Laws, to make reference to
Borrower Materials that are not made available through the “Public Side
Information” portion of the Platform and that may contain material non-public
information with respect to the Borrower or its securities for purposes of
United States Federal or state securities laws. 

      
(e) Reliance by
Administrative Agent and Lenders. The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic or electronic Committed Loan Notices and Swing
Line Loan Notices) purportedly given by or on behalf of the Borrower even if (i)
such notices were not made in a manner specified herein, were incomplete or were
not preceded or followed by any other form of notice specified herein, or (ii)
the terms thereof, as understood by the recipient, varied from any confirmation
thereof. The Borrower shall indemnify the Administrative Agent, each Lender and
the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to and
other telephonic communications with the Administrative Agent may be recorded by
the Administrative Agent, and each of the parties hereto hereby consents to such
recording. 

      
10.03 No Waiver; Cumulative Remedies;
Enforcement. No failure by any Lender or
the Administrative Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder or under any other
Loan Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided, and
provided under each other Loan Document, are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law. 

86 

      
Notwithstanding anything to the contrary contained herein or in any other Loan
Document, the authority to enforce rights and remedies hereunder and under the
other Loan Documents against the Loan Parties or any of them shall be vested
exclusively in, and all actions and proceedings at law in connection with such
enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 8.02 for the benefit of all
the Lenders; provided, however, that the foregoing shall not prohibit (a) the Administrative
Agent from exercising on its own behalf the rights and remedies that inure to
its benefit (solely in its capacity as Administrative Agent) hereunder and under
the other Loan Documents, (b) the Swing Line Lender from exercising the rights
and remedies that inure to its benefit (solely in its capacity as Swing Line
Lender) hereunder and under the other Loan Documents, (c) any Lender from
exercising setoff rights in accordance with Section 10.08 (subject to the terms of
Section
2.12), or
(d) any Lender from filing proofs of claim or appearing and filing pleadings on
its own behalf during the pendency of a proceeding relative to any Loan Party
under any Debtor Relief Law; and provided, further, that if at any time there is
no Person acting as Administrative Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise
ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in
addition to the matters set forth in clauses
(b), (c) and (d) of the preceding proviso and
subject to Section 2.12, any Lender may, with the consent of the Required Lenders,
enforce any rights and remedies available to it and as authorized by the
Required Lenders. 

      
10.04 Expenses; Indemnity; Damage Waiver. 

      
(a) Costs and
Expenses. The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel
for the Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender (including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans. 

      
(b) Indemnification by the Borrower. The
Borrower shall indemnify the Administrative Agent (and any sub-agent thereof)
and each Lender, and each Related Party of any of the foregoing Persons (each
such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any Person (including the Borrower or any other Loan Party), other
than such Indemnitee and its Related Parties, arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby or
thereby, annual filings in Israel in connection with the No-Action Letter, the
performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or thereby,
or, in the case of the Administrative Agent (and any sub-agent thereof) and its
Related Parties only, the administration of this Agreement and the other Loan
Documents (including in respect of any matters addressed in Section 3.01), (ii) any
actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iii) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower or any other Loan Party, and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee or (y) result from
a claim brought by the Borrower or any other Loan Party against an Indemnitee
for breach in bad faith of such Indemnitee’s obligations hereunder or under any
other Loan Document, if the Borrower or such Loan Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction. Without limiting the provisions of Section 3.01(c), this
Section 10.4(b) shall not apply with respect to Taxes other than any Taxes that
represent losses, claims, damages, etc. arising from any non-Tax claim.

87 

     (c) Reimbursement by Lenders. To the
extent that the Borrower for any reason fails to indefeasibly pay any amount
required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent
(or any sub-agent thereof), the Swing Line Lender or any Related Party of any of
the foregoing, each Lender severally agrees to pay to the Administrative Agent
(or any such sub-agent), the Swing Line Lender or such Related Party, as the
case may be, such Lender’s pro rata share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought based on each
Lender’s share of the Total Credit Exposure at such time) of such unpaid amount
(including any such unpaid amount in respect of a claim asserted by such
Lender), such payment to be made severally among them based on such Lenders’
Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought), provided, further that, the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent (or any
such sub-agent) or the Swing Line Lender in its capacity as such, or against any
Related Party of any of the foregoing acting for the Administrative Agent (or
any such sub-agent) or the Swing Line Lender in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the
provisions of Section 2.11(d). 

    
(d) Waiver of Consequential Damages, Etc.
To the fullest extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, and acknowledges that no other Person shall have, any
claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the proceeds
thereof. No Indemnitee referred to in subsection (b) above shall be liable
for any damages arising from the use by unintended recipients of any information
or other materials distributed to such unintended recipients by such Indemnitee
through telecommunications, electronic or other information transmission systems
in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual
damages resulting from the gross negligence or willful misconduct of such
Indemnitee as determined by a final and nonappealable judgment of a court of
competent jurisdiction.

88

     (e) Payments. All amounts due under this
Section shall be payable not later than ten (10) Business Days after demand
therefor. 

    
(f) Survival. The agreements in this
Section and the indemnity provisions of Section 10.02(e) shall survive the resignation
of the Administrative Agent and the Swing Line Lender, the replacement of any Lender, the
termination of the Aggregate Commitments and the Facility Termination Date.

    
10.05
Payments Set Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had
not occurred, and (b) each Lender severally agrees to pay to the Administrative
Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from
the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect. The obligations of
the Lenders under clause (b) of the preceding sentence shall survive the Facility
Termination Date. 

    
10.06
Successors and Assigns.

    
(a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that neither the Borrower nor any other Loan Party may
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance with the
provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (e) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

89

     (b) Assignments by Lenders. Any Lender may
at any time assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans (including for purposes of this subsection (b), participations
in Swing Line Loans) at the time owing to it); provided that any such assignment
shall be subject to the following conditions: 

(i)
Minimum Amounts. 

    
(A) in the
case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and/or the Loans at the time owing to it or contemporaneous
assignments to related Approved Funds that equal at least the amount specified
in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum
amount need be assigned; and 

    
(B) in any
case not described in subsection
(b)(i)(A) of this Section, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent or, if “Trade Date”
is specified in the Assignment and Assumption, as of the Trade Date, shall not
be less than $10,000,000 unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed).

    
(ii) Proportionate Amounts. Each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to
the Loans or the Commitment assigned, except that this clause (ii) shall not apply
to the Swing Line Lender’s rights and obligations in respect of Swing Line
Loans;

    
(iii) Required Consents. No consent shall be
required for any assignment except to the extent required by subsection (b)(i)(B) of
this Section and, in addition: 

    
(A) the
written consent of the Borrower shall be required (such consent not to be
unreasonably withheld or delayed); provided, however, that the parties agree that,
without limitation, it would not be unreasonable for Borrower to refuse to
consent to any assignment if in the Borrower’s reasonable judgment after
consultation with its counsel, such assignment could violate the No-Action
Letter or any applicable Israeli or foreign Laws; provided further, that (x) if such assignment
is to a Lender, an Affiliate of a Lender that is not a Foreign Lender or an
Approved Fund that is not a Foreign Lender, or (y) an Event of Default has
occurred and is continuing, the Borrower shall provide such consent unless it
informs the Administrative Agent within fifteen (15) Business Days after having
received a request for consent that, in its reasonable judgment after
consultation with its counsel, such assignment could violate the No-Action
Letter or any applicable Israeli or foreign Laws; 

90

     (B) the
written consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed after the Administrative Agent consults with appropriate
counsel) shall be required if such assignment (1) is to a Person that is not a
Lender, an Affiliate of such Lender or an Approved Fund with respect to such
Lender, (2) is to a Foreign Lender or (3) is from a Foreign Lender;
provided,
however,
that the Administrative Agent shall not be required to consent to any assignment
if such assignment could violate the No-Action Letter or any applicable Israeli
or foreign Laws; and provided, further, that the Administrative Agent shall not be liable, nor
otherwise incur any liability, for consenting to any assignment that does
violate the No-Action Letter or any applicable Israeli or foreign Laws; and

    
(C) the
consent of the Swing Line Lender shall be required for any assignment.

    
(iv) Assignment and Assumption. Subject
to Section 10.13(a), the assignor and assignee parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee in the amount of $3,500; provided, however, that the
Administrative Agent may, in its sole discretion, elect to waive such processing
and recordation fee in the case of any assignment. The assignee, if it is not a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. 

    
(v) No
Assignment to Certain Persons. No such
assignment shall be made (A) to the Borrower or to Holdings or any of Holdings’
Subsidiaries, (B) to any Defaulting Lender or any of its Subsidiaries, or any
Person who, upon becoming a Lender hereunder, would constitute any of the
foregoing Persons described in this clause
(B), or (C) to a natural Person.

    
(vi) Certain Additional Payments. In
connection with any assignment of rights and obligations of any Defaulting
Lender hereunder, no such assignment shall be effective unless and until, in
addition to the other conditions thereto set forth herein, the parties to the
assignment shall make such additional payments to the Administrative Agent in an
aggregate amount sufficient, upon distribution thereof as appropriate (which may
be outright payment, purchases by the assignee of participations or
subparticipations, or other compensating actions, including funding, with the
consent of the Borrower and the Administrative Agent, the applicable pro rata
share of Loans previously requested but not funded by the Defaulting Lender, to
each of which the applicable assignee and assignor hereby irrevocably consent),
to (x) pay and satisfy in full all payment liabilities then owed by such
Defaulting Lender to the Administrative Agent or any Lender hereunder (and
interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro
rata share of all Loans and participations in Swing Line Loans in accordance
with its Applicable Percentage. Notwithstanding the foregoing, in the event that
any assignment of rights and obligations of any Defaulting Lender hereunder
shall become effective under applicable Law without compliance with the
provisions of this paragraph, then the assignee of such interest shall be deemed
to be a Defaulting Lender for all purposes of this Agreement until such
compliance occurs.

91

     (vii) No Violation of the
No-Action Letter. (A) No such assignment
shall be made if such assignment would violate the No-Action Letter or any
applicable Israeli or foreign Laws, and (B) if any such assignment is entered
into with a Lender that is organized under the laws of the State of Israel (an
“Israeli Lender”), such Israeli Lender does hereby confirm, and shall confirm in the
applicable Assignment and Assumption, that such assignment would not violate the
No-Action Letter or any applicable Israeli or foreign Laws. Any assignment that
does not comply with the foregoing shall be deemed void ab initio and of no force
or effect. 

The Borrower shall, and shall procure
that each Israeli Guarantor shall, at the request of a Lender assigning or
seeking to assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans (including, for purposes of this subsection (b), participations in
Swing Line Loans) at the time owing to it), promptly, including in advance of
the assignment, execute and deliver an Approval for Consortium Arrangement
letter, with attorney authorization, in the form attached hereto as
Exhibit H,
addressed to the Lender and any assignee, actual or prospective, identified by
the Lender or in such letter (in such number of originals for such Lender and so
identified assignees). Delivery of such letter shall not by itself be deemed
consent by the Borrower under subsection (b)(iii)(A) of this Section.

Subject to acceptance and recording
thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after
the effective date specified in each Assignment and Assumption, the assignee
thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released
from its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall continue
to be entitled to the benefits of Sections
3.01, 3.04, 3.05, and 10.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment;
provided,
that except to the extent otherwise expressly agreed by the affected parties, no
assignment by a Defaulting Lender will constitute a waiver or release of any
claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender. Upon request, the Borrower (at its expense) shall execute and deliver a
Note to the assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (d) of this
Section. 

     (c) Register. The Administrative Agent,
acting solely for this purpose as a nonfiduciary agent of the Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it (or the equivalent thereof in electronic form) and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts (and stated interest) of the Loans owing
to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive absent manifest
error, and the Borrower, the Administrative Agent and the Lenders shall treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

92

     (d) Participations. Any Lender may at any
time, without the consent of, or notice to, the Borrower, the Administrative
Agent or the Swing Line Lender, sell participations to any Person (other than a
natural Person, a Defaulting Lender or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of
such Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender’s
participations in Swing Line Loans) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent and the
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. For
the avoidance of doubt, each Lender shall be responsible for the indemnity under
Section 10.04(c) without regard to the existence of any participation. No such
participation shall be made if such participation would violate the No-Action
Letter or any applicable Israeli or foreign Laws. Any participation that does
not comply with the foregoing shall be deemed void ab initio and of no force or effect.

    
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section
10.01 that affects such Participant. The
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to subsection
(b) of this Section (it being understood that
the documentation required under Section
3.01(f) shall be delivered to the Lender who
sells the participation) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section;
provided
that such Participant (A) agrees to be subject to the provisions of
Sections 3.06 and 10.13 as if it were an assignee under paragraph (b) of this Section and (B)
shall not be entitled to receive any greater payment under Sections 3.01 or
3.04, with
respect to any participation, than the Lender from whom it acquired the
applicable participation would have been entitled to receive, except to the
extent such entitlement to receive a greater payment results from a Change in
Law that occurs after the Participant acquired the applicable participation.
Each Lender that sells a participation agrees, at the Borrower’s request and
expense, to use reasonable efforts to cooperate with the Borrower to effectuate
the provisions of Section 3.06 with respect to any Participant. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.08
as though it were a Lender; provided that such
Participant agrees to be subject to Section
2.12 as
though it were a Lender. Each Lender that sells a participation shall, acting
solely for this purpose as an agent of the Borrower, maintain a register on
which it enters the name and address of each Participant and the principal
amounts (and stated interest) of each Participant’s interest in the Loans or
other obligations under the Loan Documents (the “Participant Register”);
provided
that no Lender shall have any obligation to disclose all or any portion of the
Participant Register (including the identity of any Participant or any
information relating to a Participant’s interest in any commitments, loans,
letters of credit or its other obligations under any Loan Document) to any
Person except to the extent that such disclosure is necessary to establish that
such commitment, loan, letter of credit or other obligation is in registered
form under Section 5f.103-1(c) of the United States Treasury Regulations. The
entries in the Participant Register shall be conclusive absent manifest error,
and such Lender shall treat each Person whose name is recorded in the
Participant Register as the owner of such participation for all purposes of this
Agreement notwithstanding any notice to the contrary. For the avoidance of
doubt, the Administrative Agent (in its capacity as Administrative Agent) shall
have no responsibility for maintaining a Participant Register.

93

     (e) Certain Pledges. Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement (including under its Note, if any) to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto. 

    
(f) Resignation as Swing Line Lender after Assignment. Notwithstanding anything to the contrary contained herein,
if at any time Bank of America assigns all of its Commitment and Loans pursuant
to subsection (b) above, Bank of America may, upon 30 days’ notice to the Borrower, resign
as Swing Line Lender. In the event of any such resignation as Swing Line Lender,
the Borrower shall be entitled to appoint from among the Lenders a successor
Swing Line Lender hereunder; provided, however, that no failure by the
Borrower to appoint any such successor shall affect the resignation of Bank of
America as Swing Line Lender, as the case may be. If Bank of America resigns as
Swing Line Lender, it shall retain all the rights of the Swing Line Lender
provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right to
require the Lenders to make Base Rate Committed Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.03(c). Upon the
appointment of a successor Swing Line Lender, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring Swing Line Lender, as the case may be. 

    
10.07
Treatment of Certain Information;
Confidentiality. Each of the
Administrative Agent and the Lenders agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its Related Parties (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent required or requested by any regulatory
authority purporting to have jurisdiction over such Person or its Related
Parties (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights and obligations under this Agreement or any Eligible Assignee invited to
be a Lender pursuant to Section
2.13(c) or (ii) any actual or prospective party (or its Related Parties) to any
swap, derivative or other transaction under which payments are to be made by
reference to the Borrower and its obligations, this Agreement or payments
hereunder, (g) on a confidential basis to (i) any rating agency in connection
with rating the Borrower or its Subsidiaries or the credit facilities provided
hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection
with the issuance and monitoring of CUSIP numbers or other market identifiers
with respect to the credit facilities provided hereunder, (h) with the consent
of the Borrower or (i) to the extent such Information (x) becomes publicly
available other than as a result of a breach of this Section or (y) becomes
available to the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower. For
purposes of this Section, “Information” means all information received from
Holdings, the Borrower or any of their respective Subsidiaries relating to
Holdings, the Borrower or any of their respective Subsidiaries or any of their
respective businesses, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by Holdings, the Borrower or any of their respective Subsidiaries.
Any Person required to maintain the confidentiality of Information as provided
in this Section shall be considered to have complied with its obligation to do
so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

94

     Each of the
Administrative Agent and the Lenders acknowledges that (a) the Information may
include material non-public information concerning Holdings, the Borrower or any
of their respective Subsidiaries, as the case may be, (b) it has developed
compliance procedures regarding the use of material non-public information and
(c) it will handle such material non-public information in accordance with
applicable Law, including United States Federal and state securities Laws.

    
10.08
Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender and each of their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender or any such
Affiliate to or for the credit or the account of Holdings or the Borrower
against any and all of the obligations of Holdings or the Borrower now or
hereafter existing under this Agreement or any other Loan Document to such
Lender or their respective Affiliates, irrespective of whether or not such
Lender or Affiliate shall have made any demand under this Agreement or any other
Loan Document and although such obligations of Holdings or the Borrower may be
contingent or unmatured or are owed to a branch, office or Affiliate of such
Lender different from the branch, office or Affiliate holding such deposit or
obligated on such indebtedness; provided, that in the event that any Defaulting
Lender shall exercise any such right of setoff, (x) all amounts so set off shall
be paid over immediately to the Administrative Agent for further application in
accordance with the provisions of Section
2.14 and, pending such payment, shall be
segregated by such Defaulting Lender from its other funds and deemed held in
trust for the benefit of the Administrative Agent and the Lenders, and (y) the
Defaulting Lender shall provide promptly to the Administrative Agent a statement
describing in reasonable detail the Obligations owing to such Defaulting Lender
as to which it exercised such right of setoff. The rights of each Lender and
their respective Affiliates under this Section are in addition to other rights
and remedies (including other rights of setoff) that
such Lender or their respective Affiliates may have. Each Lender agrees to
notify the Borrower and the Administrative Agent promptly after any such setoff
and application, provided that the failure to give such notice shall not affect the
validity of such setoff and application.

95

     10.09 Interest Rate Limitation.
Notwithstanding anything to the contrary contained in any Loan Document, the
interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the
“Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal
of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.
In determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to
the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations under the Loan Documents.

    
10.10
Counterparts; Integration;
Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement, the other
Loan Documents, and any separate letter agreements with respect to fees payable
to the Administrative Agent, constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. This Agreement shall become effective when it shall have been executed
by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. Delivery of an executed counterpart of a
signature page of this Agreement by facsimile or other electronic imaging means
(e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed
counterpart of this Agreement. 

    
10.11
Survival of Representations and
Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered
pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof. Such representations and
warranties have been or will be relied upon by the Administrative Agent and each
Lender, regardless of any investigation made by the Administrative Agent or any
Lender or on their behalf and notwithstanding that the Administrative Agent or
any Lender may have had notice or knowledge of any Default at the time of any
Borrowing, and shall continue in full force and effect until the Facility
Termination Date. 

    
10.12
Severability. If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. Without limiting the foregoing provisions
of this Section 10.12, if and to the extent that the enforceability of any
provisions in this Agreement relating to Defaulting Lenders shall be limited by
Debtor Relief Laws, as determined in good faith by the Administrative Agent or
the Swing Line Lender, as applicable, then such provisions shall be deemed to be
in effect only to the extent not so limited.

96

    
10.13
Replacement of Lenders. If the Borrower is entitled to replace a Lender pursuant to
the provisions of Section 3.06, or if any Lender is a Defaulting Lender or a Non-Consenting
Lender, or if any Lender fails to comply with the terms and conditions of
Section 10.21, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.06), all of its interests, rights (other than its existing
rights to payments pursuant to Sections 3.01 and 3.04) and obligations under this
Agreement and the related Loan Documents to an Eligible Assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment), provided that: 

     (a) the
Borrower shall have paid to the Administrative Agent the assignment fee (if any)
specified in Section 10.06(b); 

    
(b) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents (including
any amounts under Sections
3.01, 3.04 and 3.05) from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts); 

    
(c) in the
case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments
thereafter; 

    
(d) in the
case of any such assignment resulting from a claim under Section 3.02, the
applicable assignee shall not, at the time of such assignment, be subject to
Section 3.02; 

    
(e) such
assignment does not conflict with applicable Laws; and 

    
(f) in the
case of an assignment resulting from a Lender becoming a Non-Consenting Lender,
the applicable assignee shall have consented to the applicable amendment, waiver
or consent. 

    
A Lender shall not be required to make any such assignment or delegation
if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply. 

    
10.14
Governing Law; Jurisdiction;
Etc.

    
(a) GOVERNING LAW. THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION
(WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER
LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED
HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

97

     (b) SUBMISSION TO JURISDICTION. EACH OF
HOLDINGS AND THE BORROWER IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL
NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION,
WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST
THE ADMINISTRATIVE AGENT, ANY LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN
ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF
THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES
DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT
FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER MAY OTHERWISE HAVE TO
BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST HOLDINGS OR THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION. 

    
(c) WAIVER OF VENUE. EACH OF HOLDINGS AND
THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT. 

    
(d) SERVICE OF PROCESS. EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN
SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

98

     10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

    
10.16
No Advisory or Fiduciary
Responsibility. In connection with all
aspects of each transaction contemplated hereby (including in connection with
any amendment, waiver or other modification hereof or of any other Loan
Document), each of Holdings and the Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and
other services regarding this Agreement provided by the Administrative
Agent, the
Arranger, and the Lenders are arm’s-length commercial transactions between
Holdings, the Borrower, and their respective Affiliates, on the one hand, and
the Administrative Agent, the Arranger, and the Lenders, on the other hand, (B)
each of Holdings and the Borrower has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate, and (C)
each of Holdings and the Borrower is capable of evaluating, and understands and
accepts, the terms, risks and conditions of the transactions contemplated hereby
and by the other Loan Documents; (ii) (A) the Administrative Agent, the Arranger
and each Lender is and has been acting solely as a principal and, except as
expressly agreed in writing by the relevant parties, has not been, is not, and
will not be acting as an advisor, agent or fiduciary for Holdings, the Borrower
or any of their respective Affiliates, or any other Person and (B) neither the
Administrative Agent, the Arranger, nor any Lender has any obligation to
Holdings, the Borrower, or any of their respective Affiliates with respect to
the transactions contemplated hereby except those obligations expressly set
forth herein and in the other Loan Documents; and (iii) the Administrative
Agent, the Arranger, and the Lenders and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ from
those of Holdings, the Borrower,
and their respective Affiliates, and neither
the Administrative Agent, the Arranger, nor any Lender has any obligation to
disclose any of such interests to Holdings, the Borrower, or any of their respective
Affiliates. To the fullest extent permitted by law, each of Holdings
and the
Borrower hereby waives and releases any claims that it may have against the
Administrative Agent, the Arranger,
or any Lender with respect to any breach or
alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby. 

99

    
10.17
Electronic Execution of Assignments and Certain
Other Documents. The words “execute,” “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption or in any
amendment or other modification hereof (including waivers and consents) shall be
deemed to include electronic signatures, the electronic matching of assignment
terms and contract formations on electronic platforms approved by the
Administrative Agent, or the keeping of records in electronic form, each of
which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act. 

     10.18 USA PATRIOT Act. Each Lender that is subject to the Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it
is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Act. The Borrower
shall, promptly following a request by the Administrative Agent or any Lender,
provide all documentation and other information that the Administrative Agent or
such Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations,
including the Act. 

    
10.19
Keepwell. Each Loan Party that is a Qualified ECP Guarantor at the time the
Guaranties under the Loan Documents, in each case, by any Specified Loan Party,
become effective with respect to any Swap Obligation, hereby jointly and
severally, absolutely, unconditionally and irrevocably undertakes to provide
such funds or other support to each Specified Loan Party with respect to such
Swap Obligation as may be needed by such Specified Loan Party from time to time
to honor all of its obligations under its Guaranty and the other Loan Documents
in respect of such Swap Obligation (but, in each case, only up to the maximum
amount of such liability that can be hereby incurred without rendering such
Qualified ECP Guarantor’s obligations and undertakings under this
Section 10.19 voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer, and not for any greater amount). The obligations and
undertakings of each Qualified ECP Guarantor under this Section shall remain in
full force and effect until the Obligations have been indefeasibly paid and
performed in full. Each Qualified ECP Guarantor intends this Section to
constitute, and this Section shall be deemed to constitute, a guarantee of the
obligations of, and a “keepwell, support, or other agreement” for the benefit
of, each Specified Loan Party for all purposes of the Commodity Exchange Act.

    
10.20
Termination of Loan
Documents. This Agreement and the other Loan
Documents shall terminate upon the Facility Termination Date. 

100 

    
10.21
Israeli Antitrust Letter; Lenders’ Receipt of
Regulatory Agency Correspondence.

    
(a) In
connection with this Agreement and the other Loan Documents and negotiations
related thereto, each Lender shall comply with the terms and conditions for no
action contained in the No-Action Letter. Without limiting the generality of the
foregoing, each Lender shall (i) refrain from sharing with an actual or
prospective Lender any information not necessary for participation in this
Agreement and the other Loan Documents, (ii) when sharing information with an
actual or prospective Lender, do so in such a manner as to minimize any concern
regarding reduction of competition between any of the Lenders, and (iii)
document and retain such information, and make such reports, as described in
Section 12(e) of the No-Action Letter. Upon the written request from any Lender to the Administrative Agent, the Administrative Agent shall use commercially reasonable efforts to promptly provide such Lender, to the extent it has such information, information regarding the credit consortium to enable such Lender to comply with Section 10.21(a); provided that the Administrative Agent shall have no liability to any Lender or any other Person for failure to provide  such information.

    
(b) Each Lender shall promptly, if legally permitted to do so and in any
event within five (5) Business Days after receipt thereof by any Lender, deliver
to the Administrative Agent copies of each notice or other correspondence
received from any regulatory agency in connection with any matters related to
the transactions contemplated by this Agreement and the other Loan Documents.

    
(c) The provisions of this Section
10.21 are solely for the benefit of the
Administrative Agent and the Lenders, and neither the Borrower nor any other
Loan Party shall have rights as a third party beneficiary of any of such
provisions. 

[Signature pages
follow.]

101 

    
IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the date first above
written. 

	
      STRATASYS INTERNATIONAL LTD.
      

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      STRATASYS LTD.
    

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      BANK OF AMERICA,
      N.A.,

	as
      Administrative Agent 
	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      BANK OF AMERICA, N.A.,
      as a Lender and 

	Swing Line Lender 
	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      CITIBANK, N.A.
    

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      HSBC BANK USA, NATIONAL
      

	ASSOCIATION 
	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      SILICON VALLEY BANK
      

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      JPMORGAN CHASE BANK, N.A.
      

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      BANK LEUMI LE-ISRAEL B.M.
      

	  
	 
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

	  
	By: 
    	  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page 

	
      MORGAN STANLEY BANK
      N.A. 

	  
	 
	By:  	 
  

	Name: 
      	 

	Title: 
      	 

 

 

 

 

 

 

 

 

 

STRATASYS INTERNATIONAL LTD. 
Credit
Agreement 
Signature Page

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