Document:

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

DISTRIBUTION AGREEMENT

     THIS DISTRIBUTION AGREEMENT, dated as of July 29, 2007, is by and between TopSpin Medical
(Israel) Ltd., a corporation incorporated under the laws of the state of Israel (the “Company”) and
Johnson & Johnson Medical Israel, A Division of J — C Healthcare L.T.D. an entity incorporated
under the laws of Israel (the “Distributor”).

Recitals

     A. The Company is engaged in the development, manufacture, production and sale of
IntraVascular MRI catheter system for the coronary arteries.

     B. The Distributor possesses the sales force, facilities and ability to distribute, market and
promote the sale of the Company’s products in the Territory (as such term is defined below).

     C. The Company is willing to enter into this Agreement in order to avail itself of such sales
force, facilities and ability to so market and promote Company’s products.

Agreement

     Accordingly, and in consideration of the representations, warranties, agreements and
conditions herein contained, the parties hereto agree as follows:

1. Appointment

     1.1 Products. The Company’s products that are subject to this Agreement (the
“Products”) will be: (a) the products described in Exhibit A attached hereto; and (b) any
improvements to the Products or additional Company products in the Field (as such term is defined
in Exhibit A). The Company shall give the Distributor a notice about any improvements or
additional products and their transfer prices, and the parties shall add them to Exhibit A.

     1.2 Exclusivity. Subject to the terms and conditions contained herein, the Company
hereby grants to the Distributor for the term of this Agreement, the exclusive non transferable
right and license to promote, advertise, market, sell and distribute the Products solely in the
geographic area set forth in Exhibit B (the “Territory”) under the Company’s name, logotype
and trademarks. Except with the express written permission of The Company, which may be granted or
denied in the Company’s sole and absolute discretion, the Distributor shall not sell the Products
to third parties located outside of the Territory and, with respect to the Product, shall not
establish any branch or maintain any distribution depot for the Products outside the Territory
(such third parties and areas being exclusively reserved to the Company or the Company’s other
distributors), provided that nothing in this Agreement is intended (and is not to be construed) to
prevent passive sales (being the sale or other disposition of the Products in response to an
unsolicited request from a customer) of the Products by the Distributor anywhere within the
European Economic Area. The Company agrees, to the extent permitted by law, not to appoint any
other person, entity or organization located in the Territory as a distributor or agent or

 

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

reseller
of the Products. The Distributor accepts this appointment and agrees to use its best efforts to
promote and develop the sale potential of the Products in the Territory. The Distributor shall act
in its sole and absolute discretion.

     Without derogating from the foregoing, the Company shall not sell, market and / or distribute
any Products by itself (in consideration or free of charge), in the Territory, to anyone (including
any end user), except for the distributor. In a case the Company shall sell, market and / or
distribute any Products by itself (in consideration or free of charge), in the Territory, to anyone
except for the distributor, without derogating from any remedy the distributor is intitled to, the
distributor shall have the right to receive the full amount of the Marketing Fees set forth in
section 3.4, for any such Product.

     1.3 Subdistributors and Agents. The Distributor will not appoint any subdistributors
or agents to promote or distribute the Products without the prior written consent of the Company,
which may be granted or withheld in the Company’s sole and absolute discretion. The rights of any
permitted subdistributor or agent to distribute any Product will not be any greater than the rights
of the Distributor hereunder. If the Distributor enters into any written agreement with any such
subdistributor or agent, it will be subject to the prior written approval of the Company, at the
Company’s sole and absolute discretion. The Distributor will indemnify and hold the Company
harmless from and against any claim, loss, damage or expense (including attorneys’ fees) suffered
or incurred by the Company relating to any claim threatened or initiated by any subdistributor or
agent appointed by the Distributor.

     1.4 Competitive Products. During the term of this Agreement and for a period of one
(1) year thereafter, the Distributor will not, without obtaining the prior written consent of the
Company, directly or indirectly, alone, or in any capacity with another firm, whether as an agent,
consultant, independent contractor, distributor, broker or otherwise, manufacture, promote, sell,
distribute or offer for sale or distribution any goods, products or articles that compete with,
perform similar functions to or are used for the same general purposes as the Products or with the
Company in the field of Intravascular diagnostic catheters and related areas, except with the prior
written consent of the Company. Any breach of this Section 1.4 will entitle the Company to
terminate the Agreement in accordance with Sections 7.2(c)(ii) hereunder, without derogating from
any other remedy that the Company may be entitled to in accordance with this Agreement and any
applicable law.

2. Orders for Products

     2.1 Purchase Orders. The Distributor will, from time to time, submit written purchase
orders to the Company for the Products. Each purchase order will, at a minimum, include: (a)
identification of the Products ordered; (b) quantity, which, with respect to each purchase order,
will not include less than the minimum of Products detailed in Exhibit D; (c) requested
delivery date; and (d) shipping instructions and shipping address. The Distributor will submit
purchase orders to the Company based on purchase orders the Distributor receives from the end user
customers. Products will be shipped and delivered only after Distributor submits a purchase
order to the Company.

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

     2.2 Acceptance of Orders. All purchase orders are subject to acceptance by the
Company, and no order will be binding upon the Company until the same has been accepted in writing
or by e-mail by the Company. Purchase orders for the Products must be received by the Company at
least **** days prior to the delivery date requested. The terms and conditions of this Agreement
will govern and supersede any additional or contrary terms set forth in the Distributor’s purchase
order or any Company or the Distributor acceptance, confirmation, invoice or other document unless
duly signed by an officer of the Distributor and an officer of the Company and expressly stating
and identifying which specific additional or contrary terms will supersede the terms and conditions
of this Agreement. It is expressly understood that the obligation of the Company to sell any
Product to the Distributor is subject to the availability of such Product. The Company reserves the
right to allocate available supplies of the Products among its distributors and customers as it, in
its sole discretion, determines to be appropriate. The Company will make reasonable efforts to fill
each order that is accepted, but the Company will not be liable for damages caused by failure to
ship or delay in shipment resulting from conditions beyond the control of the Company including,
but not limited to, the inability of its suppliers to obtain materials and supplies or to produce
sufficient components to meet Product sales demands.

     2.3 Forecasts. Upon execution of this Agreement, the Distributor will provide the
Company with a written twelve (12) month forecast of its expected orders of Products in the
Territory. Thereafter, on the 10th day of each month, the Distributor will furnish to the Company a
written rolling twelve (12) month forecast of its expected orders of Products in the Territory.
Each forecast provided to the Company will constitute a non-binding good faith estimate of expected
orders for Products. Except for the Minimum Product Requirement (defined in Section 5.1 below), the
Distributor will not be obligated to purchase, and the Company will not be obligated to deliver,
any units of Products unless the Distributor has submitted, and the Company has accepted and
consented, a written firm purchase order. In the event the Distributor places a purchase order less
than **** days in advance of the requested delivery date for Products exceeding the applicable
forecast, the Company shall make commercially reasonable efforts to promptly fill such purchase
orders and shall schedule delivery into future periods and communicate such schedule to the
Distributor.

     2.4 Shipment. All Products sold to the Distributor by the Company in accordance with
an accepted purchase order will be shipped by the Company to the Distributor ExWorks
(“ExWorks” as defined by Incoterms 2000) at the Distributor storage house in Shefayim
Israel, or, upon mutual agreement of the parties at the Company’s offices in Lod, Israel or such
other shipping (the “Shipping Point”). The Distributor assumes all risk of loss upon the
Company’s delivery of the Products to the Distributor’s designated carrier at the Shipping Point,
and after the delivery to the Distributor’s carrier the Company will have no further responsibility
for delivery of the Products to the Distributor. The Distributor agrees to pay (or reimburse the
Company if the Company shall be required to make such payment) all loading, freight, shipping,
insurance, forwarding and handling charges, taxes, fees, storage, and all other charges applicable
to the Products after they are delivered by the Company at the Shipping Point. Title to all goods
will remain in the Company until payment for such goods has been fully received by the Company.
The Company reserves all rights with respect to delivered Products permitted by law, including

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

without limitation the rights of rescission, repossession, resale, and stoppage in transit, until
the full amount in respect of all delivered Products has been paid.

     2.4A Advance Shipment of Goods. The parties agree that notwithstanding any other
provision of this Agreement, from time to time the Company will make available to Distributor
Products in such quantities as set forth in Exhibit C, as shall be mutually amended by the
parties in advance and in writing (the “Advanced Products”). Title to all Advanced Products will
remain in the Company until payment for such goods has been fully received by the Company and until
such time they will be clearly marked as owned by the Company and held separately from any other
products or inventory. Advanced Products will be used by the Distributor for promoting the sales of
the Products. Distributor may allow his clients to keep the Advanced Products in their possession
and use the Advanced Products subject to any and all terms. In the event of using such Advanced
Products by the Distributor clients, such Products will be deemed for any and all purposes sold
immediately upon their use and Distributor shall issue purchase order pursuant to the terms of this
Agreement for every Advanced Product used, as promptly as possible thereafter and in any event not
later than 5 days thereafter.

     2.5 Modification of Orders. No accepted purchase order will be modified or canceled
except upon the written agreement of both parties. The Distributor’s purchase orders or mutually
agreed change orders will be subject to all provisions of this Agreement, whether or not the
purchase order or change order so states.

     2.6 Inspection and Acceptance. Without derogation from and in addition to the warranty
provided in Sections 8 and 12 the Distributor will conduct reasonable and regular external and
visual incoming inspection tests on the Products within ten (10) days of receipt by the
Distributor. In the event of any shortage, damage or discrepancy in or to a shipment of Products,
the Distributor, will within ten (10) days thereafter give notice thereof to the Company and will
furnish such written evidence or other documentation as the Company may deem appropriate. If such
evidence indicates, that such shortage, damage or discrepancy existed at the time of delivery of
the Products to the carrier, the Company will promptly deliver additional or substitute Products to
the Distributor. In addition, in such event, the Company will pay all loading, freight, shipping,
insurance, forwarding and handling charges, taxes, fees, storage and other charges applicable to
such additional or substitute Products. Any Products not rejected by the Distributor by written
notice given to the Company within such (20) twenty-day period will be deemed to have been accepted
by the Distributor. Following any such acceptance, the sole remedies of the Distributor with
respect to damage to or defects in the Products will be those set forth in Sections 8 and 12.

3. Prices and Payments; Marketing Fee; Participation in Clinical Trials Costs

     3.1 Prices. The transfer price of all Products sold hereunder, ExWorks Shipping Point,
will be the prices set forth on Exhibit C. Price changes will not apply to purchase orders
received and accepted by the Company for delivery prior to the effective date of any price change.

     3.2 Payment Terms. The Company will invoice the Distributor upon shipment of

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

Products. All invoices payable to the Company will be made through wire transfer, in full within
**** days from the date of the invoice. At any time during the term of this Agreement, the
aggregate amount of all invoices due and payable to the Company will not exceed the amount set
forth in Exhibit C attached hereto (the “Maximum Amount”).. In the event any purchase order
issued by the Distributor involves payments to the Company which, together with all other amounts
due to the Company by Distributor will exceed the Maximum Amount, all such exceeding amounts will
be paid to the Company by the Distributor in advance upon the delivery to the Company of such
purchase order. Interest at the rate of ****% per month, or such lesser rate as is the maximum rate
of interest permitted by law, will be charged on all overdue accounts. All payments made under this
Agreement will be made in U.S. dollars, free of any currency control or other restrictions.

     3.3 Participation in Clinical Trials Costs. In order to maximize the exposure of the
potential markets in the Territory to the Company’s Product it is Distributor’s anticipation that
the Company will conduct clinical trials with respect to the Product in the Territory during the
term of this Agreement. The conduct of such trials (if any) will be at the sole responsibility of
the Company, but the Distributor agrees to participate in the costs of such clinical trial in the
first eighteen months period of the term of this Agreement, and to pay the Company such amounts,
based on such payment terms, as detailed in Exhibit C.

     3.4 Marketing Fees. In consideration for the Distributor’s marketing efforts, the
Company will pay Distributor marketing fee, which will be calculated as certain percentage of the
actual selling price of each Product sold by Distributor as detailed in Exhibit C (the
“Marketing Fee”). The Marketing Fee will be payable in U.S. dollars only with respect to Products
sold to Distributor against payment to the Company of the full proceeds listed in Exhibit C
and only with respect to the transfer prices actually received by the Company net of all sales
taxes, within **** days from the actual receipt by the Company of the applicable purchase price for
which the Marketing Fee is payable, against valid invoice. With the prior written agreement of the
Company Distributor may setoff the Marketing Fees from payments made by Distributor to the Company
pursuant to Section 3.2 above.

     3.5 Taxes. The Distributor will be responsible for, and will pay or reimburse the
Company for, all taxes, duties, import deposits, assessments and other governmental charges,
however designated, based on the amounts payable hereunder, or on the Products, their import into
the Territory or their sale or use, which are now or hereafter imposed under or by any governmental
authority or agency, other than income taxes and any other payments applying to the Company as the
manufacturer and seller of the Products. In the event any of the payments to be made by the
Distributor to the Company pursuant to this Agreement become subject to taxes, duties, assessments
or fees of whatever kind levied in the Territory, said payments to the Company will be increased to
such an extent as to allow the Company to receive the net amounts due under this Agreement.

     3.6 Resale Prices. The Distributor may resell the Products at such prices as it, in
its sole discretion, determines. The Distributor will, provide the Company, in writing on a monthly
basis, with the monthly average selling prices of the Products in the Territory.

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

4. General Obligations of Distributor.

     4.1 Marketing. The Distributor will act in a diligent manner to further the
promotion, marketing, sale and other distribution of the Products in the Territory.

     4.2 Responsibilities. Without limiting the generality of Section 4.1, the Distributor
will:

     (a) respond to any reasonable requests for market information requested by the Company
and provide the Company written responses to such requests.

     (b) maintain an adequate sales force necessary for the sale and support of the Products
in the Territory.

     (c) ensure that its sales personnel representing the Products receive complete training
with respect to the promotion and use of the Products, as provided by the Company.

     (d) [omitted]

     (e) participate actively in sales and marketing programs prepared by the Company and
develop and implement sales programs for the promotion of the Products in a scope of not
less than the scope set forth in Exhibit F.

     (f) attend and provide support for the Products at appropriate medical trade shows and
congresses each year in the Territory, as agreed upon by the Company and the Distributor, in
a scope of not less than the scope set forth in Exhibit F; the Distributor shall pay
all related costs.

     (g) to the extent requested by the Company, provide personnel and logistical support
for clinical studies of the Products and publication of clinical study results in medical
journals.

     (h) support and promote active clinical use of the Products.

     (i) maintain an adequate and balanced inventory of the Products and related supplies
and accessories so as to be able to promptly fill all orders from customers; the Distributor
shall allow the Company to review actual inventory levels and suggest target levels of
inventory upon request by the Company. The Distributor will sell such inventory on a FIFO
basis.

     (j) provide monthly written inventory counts of the Product(s) to the Company no later
than the 5th day following a calendar month ending date.

     (k) ensure at all times proper storage and handling procedures for the Products, taking
all steps to avoid subjecting the Products to excessive heat, sunlight, humidity, dryness,
insects or animals, or other damaging conditions and will comply with

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

all the Company’s instructions with regard to the same, as provided to the Distributor
by the Company from time to time.

     (l) promptly respond to all inquiries from customers, including complaints, process all
orders, and effect all shipments of the Products; the Distributor shall provide the Company
with written summaries of such inquiries and responses on a monthly basis.

     (m) shall be responsible as the first point of contact for technical support with the
customer and/or end-users, and thereafter support will be provided by Distributor or the
Company as detailed in Exhibit F. The Distributor will provide a line of communications
directly to the Company in matters of vigilance and post-market surveillance (early warning)
in accordance with any applicable law, rule or regulation. Customer feedback, the occurrence
of incidents, near-incidents and inquires from Competent Authorities (as defined below) will
be reported by the Distributor within three (3) business days directly to the Company
contacts named in Exhibit E, or within such earlier period enabling the Company to
properly comply with any reporting obligations under any applicable law.

     (n) establish and maintain a complaint file of any information, including written and
oral communications, received by the Distributor or any subdistributor and agent concerning
customer feedback, the occurrence of incidents and near-incidents and allow the Company, any
authorized representative appointed by the Company or any relevant national authority to
inspect and review such complaint file.

     (o) establish and maintain traceability to the Product serial number and related
supplies and accessories to the customers; in the matter of vigilance, the Distributor shall
provide the traceability of the particular units requested by the Company within a
reasonable time, not to exceed five (5) days.

     (p) diligently investigate and pursue all leads with respect to potential customers
referred to it by the Company and, upon request of the Company, report the status of such
leads and inquiries.

     (q) The parties shall develop together a comprehensive marketing plan, and update such
marketing plan with respect to each forthcoming calendar year (divided into 12 monthly
periods) prior to the end of the then-current year or at such intervals as the Company may
otherwise require.

     (r) provide the Company within ten (10) days of the end of each quarter a detailed
written report of the Distributor’s sales and marketing activities, of all installed base
(i.e. hospitals or other medical centers in which the Company’s Console Product (as defined
in Exhibit A herein) is installed or based) and of all sales of the Products during
such quarter, including quantity of Products sold by model, by serial number, by end
customer, including address, by sales team and sales price.

     (s) transmit promptly to the Company all inquiries and orders received by the

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

Distributor from customers located outside the Territory.

     (t) provide its customers with all necessary and appropriate training and support
regarding the use of the Products and maintain reasonably detailed records of such training.

     (u) [omitted]

     (v) permit the Company, any Authorized Representative appointed by the Company and any
relevant national authority, after advance reasonable notice to the Distributor, to visit
and observe the Distributor’s places of business and those of the Distributor’s
subdistributors and accompany the Distributor or any subdistributor or agent permitted to be
appointed by the Company pursuant to Section 1.3 during sales calls or training sessions
with customers.

     (w) not, in any way, alter the Products or remove, cover, change, alter or add to the
labels attached to the Products by the Company, except with the Company’s prior written
approval.

     For the avoidance of doubt and unless otherwise explicitly provided herein, the Distributor
will not be entitled to any compensation for the performance of the above obligations.

     4.3 Support of Products. The Distributor will provide such after-sales services for
customers within the Territory and will at all times maintain a sufficient staff of resident
personnel fully trained and qualified to perform such support services, all subject to the
provisions of Exhibit F.

     4.4 Purchase of Demonstration Products. In consultation with the Company the
Distributor will deliver a purchase order to the Company for the receipt of Products for
demonstration purposes only. Such Products for demonstration purposes will not be used for resale
and will be comprised of non functional Catheters (as such term is defined in Exhibit A hereto) at
the quantities set forth on Exhibit C (as amended by the parties upon the inclusion of
additional products in this Agreement) and shall be free of charge. Notwithstanding the above, any
delivery of Products for demonstration purposes will be subject to the availability of such
non-functional Products by the Company, taking into account, among others, the Company’s
obligations to provide such non-functional Products to other distributors.

     4.5 Product Manager and Training. The Distributor shall maintain a product manager
designated to the Products. The Distributor will, at least three times per year during the term of
this Agreement, send all sales representatives and any other person (including any subdistributors
or agents permitted to be appointed by the Company pursuant to Section 1.3) who will promote,
market, sell or otherwise distribute the Products in the Territory to a place in the Territory for
sales and support services training concerning the Products at Distributor’s expense. In the event
improvements to the Products or additional Company products are added to this Agreement and
included within the definition of “Product” from time to time pursuant to Section

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

1.1, the Company will, in its sole discretion, provide similar training. All employees or
other individuals sent by the Distributor to the Company’s headquarters or such other site for
sales and support services training concerning the Products should be able to speak, read and write
English and must have a solid understanding of cardiac medical devices. The Distributor may,
however, send a translator to assist such employees or other individuals sent by the Distributor in
the training process, including assisting such persons in understanding the examinations required
below. The Distributor will be responsible for all travel (including travel to and from Israel),
hotel and subsistence expenses incurred by its employees and other individuals receiving training
hereunder (and the translator). The Company will not be liable for any injury or property damage
suffered by the Distributor’s employees or other individuals receiving training hereunder (or the
translator). The Company will have the right to discontinue training pursuant to this Agreement and
withhold certification without further liability to the Distributor, as to any employee of the
Distributor or other individual who is unable to pass required written, oral and/or practical
examinations by the Company.

     4.6 User Manuals and Marketing Materials. The Company shall be responsible for the
preparation of sales literature, user documentation, user manuals in English, and the Distributor
shall be responsible for the preparation of advertising materials, sales and marketing materials
for the training, marketing and sale of the Products (collectively, “Materials”) for use in the
Territory, including the translation, adaptation and/or modification of the Company’s Materials, as
deemed appropriate by the Distributor, to reflect the culture or business practices and languages
of the Territory and in accordance with the Company’s policy with regard to the Materials in the
Company’s sole and absolute discretion. The Company and the Distributor will prepare all Materials
in compliance with all applicable laws and shall submit any newly created Materials to the Company
for its prior written approval before using or distributing such Materials. A final copy of all
translated Materials, together with a certification that the translation accurately reflects the
contents of the original English language version, shall be forwarded to the Company for its
records.

     4.7 Misrepresentations. The Distributor will not make any false statements,
representations, warranties or advertisements regarding any of the Products which exceeds in scope
or is different in meaning from the statements made by the Company in its own literature or
specifications or approved indications for use or regarding the Company in promoting sales of the
Products, and the Distributor will hold the Company harmless from and indemnify it against any
liability which may arise out of, or result from, any such false representation.

     4.8 Records, Recall and Audit. The Distributor will maintain complete and accurate
written records of all Products sold by the Distributor and any subdistributors or agents permitted
by the Company to be appointed pursuant to Section 1.3 and will maintain and provide such other
records and reports as the Company may reasonably request. The Distributor will notify the Company
immediately and confirm such notice in writing if the Distributor obtains information indicating
that any of the Company’s Products may have to be recalled, either by virtue of applicable law or
good business judgment. In the event of a recall of any of the Products, the Distributor will
cooperate fully with the Company in effecting such recall, including without limitation,
immediately contacting any purchasers that the Company desires to be contacted and promptly
communicating to such purchasers the information or instructions the Company desires

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PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

to be transmitted. The Distributor agrees to comply with any and all traceability programs in
effect at any time as initiated by the Company. The Distributor will permit the Company, any of the
Company’s Authorized Representatives and any relevant national authority to examine, inspect and
audit such records and make transcripts of any records required as part of a traceability program
at reasonable times during business hours. The Company shall have the right to hire an independent
certified public accountant to inspect all such records so required to be kept by the Distributor
(which accountant shall agree in writing to keep all information confidential except as needed to
disclose to the Company any discovered discrepancies); provided, such audit: (i) is conducted
during normal business hours, (ii) is conducted no more often than once per year (unless a
discrepancy is discovered), and (iii) is conducted only after the Company has given the Distributor
five (5) days prior written notice. The Company shall bear the full cost and expense of such audit,
unless a discrepancy of 7.5% or more is discovered, in which event the Distributor shall bear the
full cost and expense of such audit. Regardless of the amount of discrepancy discovered, all
discrepancies (and interest thereon) shall be immediately due and payable.

     4.9 Regulatory Compliance and Licenses. The Distributor agrees, at all times during
the term of this Agreement to fully and accurately comply with all applicable laws, regulations,
rules, standards, regulatory regulations and other instructions in the Territory applicable to the
Distributor’s purchase, storage, record keeping, promotion and resale of the Products. The
Distributor will obtain all required licenses, permits, authorizations, filings and registrations
that may be required by any governmental agency or law relating to the sale of the Products in the
Territory, including, without limitation, the approval of the Ministry of Health in the Territory
and the approvals of all Israel’s Sick Funds (“Kupot Holim”) for the sale of the Product to
hospitals in the Territory (collectively, the “Licenses”) at Distributor’s expense, excluding the
CE Mark required for the distribution of the Products in the European Community, which shall be
obtained by the Company; all such required Licenses will be in the name of the Company, except
where prohibited by applicable law or regulation. In the event that such Licenses are not permitted
under applicable law to be made in the name of the Company, the Distributor will cause such
Licenses to be issued jointly in the name of the Company and the Distributor. In the event that
such Licenses are not permitted under applicable law to be made in the name of the Company or
jointly in the name of the Company and the Distributor, the Distributor will cause such Licenses to
be issued in the name of the Distributor. In any situation in which any Licenses are not solely in
the name of the Company, the Distributor will and hereby does, to the extent permitted by
applicable law, assign all rights and privileges in connection therewith to the Company or its
designee as soon as is reasonably practicable but no later than thirty (30) days after termination
or expiration of this Agreement. Any documents submitted or filed in order to obtain such Licenses
shall be subject to the Company’s written approval prior to their submission or filing. Distributor
shall provide the Company with full copies of any correspondence and any other documents exchanged
regarding said Licenses within 2 (two) business days of their receipt. Alternatively, the Company
may choose, in its sole discretion, to obtain any or all of the required Licenses and in such
event, the Distributor shall cooperate with the Company to obtain such Licenses.

5. Minimum Product Requirements of Distributor

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

     5.1 Minimum Product Requirements. The Distributor agrees to purchase from the Company,
at least the minimum quarterly quantities of Products in accordance with attached Exhibit D
(the “Minimum Product Requirement”), as amended from time to time by mutual written agreement of
the parties hereto. In the event the Distributor does not meet the Minimum Product Requirement for
any quarter it must exceed the Minimum Product Requirement for the quarter immediately following
such quarter by the number it needed to meet the Minimum Product Requirement for the previous
quarter. If Distributor fails to meet the Minimum Product Requirement plus the number it needed to
make up for a previous quarter’s shortfall, the Distributor shall have failed to meet its
obligations under this Section and the Company shall be entitled to terminate this agreement in
accordance with the provisions of Section 5.2 hereunder.

     5.2 Special Right to Terminate or Convert Agreement. The Distributor understands and
agrees that the establishment and achievement of the Minimum Product Requirement pursuant to
Section 5.1 is the essence of this Agreement and that any failure by the Distributor to satisfy its
obligations under Section 5.1 will entitle the Company to terminate this Agreement upon sixty (60)
days’ written notice pursuant to Section 7.2, or, alternatively, the Company will be entitled, in
its sole discretion, to convert this Agreement into an entirely non-exclusive distributor
agreement.

6. General Rights and Obligations of the Company

     6.1 Marketing and Support. The Company will provide training for the Distributor’s
sales personnel representing the Products with respect to the promotion and use of the Products, in
the scope detailed in Exhibit F and refer to the Distributor for follow-up customer
inquiries and orders received by the Company from prospective customers located in the Territory.

     6.2 Sales Materials and User Documentation. The Company will provide the Distributor
with a copy of any Materials developed by the Company for the Products in English. The Distributor
will not use any other sales Materials, except those prepared in accordance with Section 4.6 above.
All expenses incurred by the Distributor with respect to creating sales and Materials and
advertising and promoting the Products will be borne by the Distributor. The Distributor will
provide the Company with a reasonable quantity of Materials prepared by the Distributor.

     6.3 Product Changes. The Company reserves the right, in its sole discretion and
without incurring any liability to the Distributor, to:

     (a) alter the specification for any Product or component thereof;

     (b) discontinue the manufacture of any Product or component thereof;

     (c) discontinue the development of any improvement to a Product or new product, whether
or not such improvement or product has been announced publicly; or

     (d) commence the manufacture and sale of improvements to Products or new products
having features which make any Product wholly or partially obsolete in the

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

Field.

     Notwithstanding the above, the Company will use reasonable efforts to provide the Distributor
with prompt written notice of such decisions and will fill all accepted purchase orders from the
Distributor for any such altered or discontinued Products of which manufacturing and commercial
deliveries have commenced.

7. Term and Termination

     7.1 Term. This Agreement will take effect as of the date first above written and,
unless terminated earlier pursuant to Section 7.2, will continue in force until three (3) years
after the date hereof, at which time this Agreement will automatically expire and terminate unless
the parties mutually agree otherwise in writing.

     7.2 Termination. Notwithstanding the provisions of Section 7.1, this Agreement may be
terminated in accordance with any of the following provisions:

     (a) The parties may mutually agree in writing to terminate this Agreement at any time
and for any reason.

     (b) Either party may terminate this Agreement by giving notice in writing to the other
party should an event of Force Majeure (as defined below) continue for more than six (6)
months.

     (c) Each party may terminate this Agreement immediately in the event of any of the
following:

     (i) “Cause,” which includes, without limitation, (a) dishonesty, fraud,
misrepresentation, misappropriation of property, deliberate injury or attempted
injury, by the other party or any employees or agents of the other party; (b) any
unlawful or criminal activity by the other party or any employees or agents of the
other party; (c) the Distributor selling any Products, directly or indirectly, to
customers located outside the Territory; (d) failure by the Distributor to supply
the record keeping and marketing information in the time periods provided herein or
the falseness of such records; (e) violation by the Distributor of the covenant
not-to-compete set forth in Section 1.4 or violation by the Company of the covenant
of exclusivity set forth in Section 1.2 or its confidentiality undertakings under
this Agreement; (f) payment or non-payment by the Distributor of any invoice more
than 30 days later than the applicable due date of the invoice pursuant to Section
3.2; or (g) the breach by the other party of any other provision of this Agreement
and the failure of the other party to cure such breach within thirty (30) calendar
days after receipt of written notice requesting such breach to be cured.

     (ii) [omitted]

     (iii) the other party makes an assignment for the benefit of creditors;

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

the institution of voluntary or involuntary proceedings by or against the other
party under bankruptcy or insolvency laws; any general suspension by the other party
of payments to creditors; the other party files a petition of any type as to its
bankruptcy, is declared bankrupt, becomes insolvent, or goes into liquidation or
receivership; or any similar actions by or against the other party in respect of
bankruptcy, insolvency or actions taken by creditors generally.

     (d) The Company may terminate this Agreement upon sixty (60) days’ prior written notice
if the Distributor fails to meet the Minimum Product Requirement detailed in Section 5.1;
and the Company elects to terminate this Agreement instead of converting this Agreement into
a non-exclusive arrangement pursuant to Section 5.2.

     (e) The parties may terminate this Agreement pursuant to Section 7.3.

     7.3 Change of Control of the Company; Changes in Global Policy of the Distributor:

     (a) During the initial 18 months after the date hereof (the “Initial Term”): (a) the
Company may terminate this Agreement upon ninety (90) days’ written notice in the event of
any material change in the control of the Company, including any sale or transfer of the
business to which this Agreement relates, the sale of all or substantially all of the assets
of the Company (including if held through subsidiaries), a merger of the Company into
another entity in which the Company does not survive and the acquisition by another person
or group of persons acting together of at least fifty percent (50%) of the outstanding
voting capital stock of the Company (a “Change of Control”); and (b) the Distributor may
terminate this Agreement upon ninety (90) days’ written notice in the event of any changes
in the global business policy of Johnson & Johnson, which do not enable the Distributor in
any manner, to the extent it is required to comply with such policy, to continue its
obligations hereunder, provided, however, that in event of such early termination the
terminating party shall pay the other party as liquidated damages, and not as a penalty, an
amount as set forth in Exhibit C.

     (b) After the Initial Term: (a) the Company may terminate this Agreement upon ninety
(90) days’ written notice in the event Change of Control; and (b) the Distributor may
terminate this Agreement upon ninety (90) days’ written notice in the event of any changes
in the global business policy of Johnson & Johnson, which do not enable the Distributor in
any manner, to the extent it is required to comply with such policy, to continue its
obligations hereunder, both without any compensation to the other party.

     7.4 [omitted]

     7.5 In the event the Company has the right pursuant to the provisions of Section 7.2 to
terminate this Agreement in its entirety, the Company may elect to terminate this Agreement solely
as it applies to any specific Product by providing the Distributor with written notice in
accordance with the relevant Section referred to above; provided, that nothing in this Section
7.4(b) will be construed as creating a precondition to or otherwise precluding the Company from

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

terminating this Agreement in its entirety in accordance with the terms of Section 7.2.

     7.6 Rights and Obligations on Termination. In the event of the expiration or
termination of this Agreement for any reason, the parties will have the following rights and
obligations:

     (a) Termination of this Agreement will not release either party from the obligation to
make payment of all amounts then or thereafter due and payable.

     (b) If and to the extent applicable, the Company will have the right, at its option, to
repurchase from the Distributor all or any part of the Distributor’s inventory of Products
in good repair and which are in good re-sellable condition in the Distributor’s possession,
as of the termination date at the Company’s invoiced price (plus any additional actual
reasonable and direct costs which the Distributor actually paid or has been debited of in
connection with such Products, up to an amount not exceeding 20% of the aggregate invoiced
price) to the Distributor for such Products, other than Product for which purchased orders
were provided to Distributor by its clients. The Company may exercise its option under this
Section 7.6(b) by notifying the Distributor in writing no later than thirty (30) days after
the effective termination date. The Company may deduct any amounts owed to it by the
Distributor, whether for payment of Products or otherwise, from the amount due the
Distributor for the repurchase by the Company of the Products. The Distributor will be
permitted to resell any such inventory of Products that the Company does not repurchase from
the Distributor for a period of 3 months following the termination of the Agreement.

     (c) The Distributor’s and The Company’s obligations pursuant to Sections 1.3, 1.4, 3.1,
3.2. 3.3, 4.8, 4.9, 7.5, 7.6, 7.7, 10.3 and Articles 8, 9, 11, 12, 13, 14 and 15 will
survive termination of this Agreement until the obligations set forth in the applicable
section are fully satisfied and the statute of limitations has expired with respect to such
obligations.

     (d) Within thirty (30) days of the date of termination, the Distributor will furnish to
the Company a list of all the Distributor’s active sales leads, current customers and the
place of destination of all Products sold or distributed in the immediately preceding twelve
(12) months and all Products whose shelf-life has not yet expired.

     Within ninety (90) days of the date of termination, the Distributor will return to the
Company all Advanced Products the Company has provided to the Distributor.

     (e) Upon termination, the Distributor will discontinue the use of any and all
advertising and promotional activities, and will immediately return, at the Company’s
expense, any equipment, product literature, training materials or other items provided by
the Company; provided, however, that with respect to any Products subject to Section 7.6(b)
above, if and to the extent applicable, the Distributor will not be under any obligation to
return such Products unless and until the Company has given the Distributor notice of the
Company’s intention to exercise its option under Section 7.6(b) and has paid

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

for such Products..

     (f) For the avoidance of doubt, after the termination or expiration of this Agreement
for any reason whatsoever, the Company shall be free to directly or indirectly contact and
engage in business with any and all of the Distributor’s customers with respect to the
Product and the Distributor shall not be entitled to any compensation from the Company with
respect to the aforesaid.

     7.7 Right to Terminate. It is expressly understood and agreed that the rights of the
Company and the Distributor to terminate this Agreement pursuant to Section 7 are absolute, and
that the parties have considered the possibility of such termination and the possibility of loss
and damage resulting therefrom in making expenditures related to the performance of this Agreement.
Except as set forth in Section 7.3, it is the express intent and agreement of the parties that
neither will be liable to the other for damages or any other compensation by reason of the
termination of this Agreement in accordance with Section 7 above.

     7.8 Termination of Subdistributors and Agents. Any and all agreements between the
Company and any of the Distributor’s subdistributors and/or agents permitted in accordance with
Section 1.3 above, if and to the extent applicable, will be automatically and immediately
terminated upon the termination of this Agreement for any reason whatsoever, and without any
additional notice or action required to be taken by the Company with regard to such termination.
The Distributor will have sole responsibility for termination of any subdistributor or agent,
including any costs or expenses associated therewith, and will indemnify and hold the Company
harmless from and against any claim, loss, damage or expense (including attorneys’ fees) suffered
or incurred by the Company relating to the termination of any subdistributor or agent appointed by
the Distributor.

8. Warranty and Liability

     8.1 Warranty. The Company warrants to the Distributor that the Products will, when
delivered to the Distributor, be free from defects in materials and workmanship and any other
defect under normal use and service for a period of **** months from the date of delivery to the
Distributor and through the period of the Company’s published shelf-life for the Products. The
Company will in the Distributor reasonable discretion: (a) give the Distributor a full refund of
the purchase price, of any Product that it reasonably determines was defective at the time of
shipment to the Distributor or that is the subject of any breach of any warranty by the Company,
and, with respect to the warranty provided to Distributor only (and not with respect to the
warranty to be provided to customers pursuant to Section 8.2), any additional actual reasonable and
direct costs or payments which the Distributor has been debited with respect to such defective
Product, or (b) replace or repair, in its reasonable discretion, any Product that it reasonably
determines was defective at the time of shipment to the Distributor or that is the subject of any
breach of any warranty by the Company, provided such Product is returned at the Company’s expense
to the Company within the warranty periods set forth above; provided, however, that the Company
will have no obligation under this warranty to make repairs or replacements necessitated in whole
or in part by accidents, fault or negligence of the Distributor or user. Prior to returning any
Product alleged to be defective, the Distributor will notify the

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

Company in writing of the claimed defect and will include the model and lot/serial number of
such Product, as well as the number and date of the invoice therefor. No Product may be returned
without first obtaining a returned goods authorization from the Company.

     8.2 Warranty to Customers. The Distributor will provide each of its customers that
purchases a Product a warranty identical in all material respects to that provided by the Company
to the Distributor pursuant to Section 8 (but excluding Section 8.3). The Distributor will provide
each of its customers with documentation provided by the Company, informing each customer that
except for a breach of the specific warranties contained in Section 8 (but excluding Section 8.3),
the Company shall not be liable for any loss or damage nor be subject to any other remedy. The
Distributor will make no other warranties, guarantees or representations, whether written or oral,
regarding the Products, whether on its own behalf or on behalf of the Company. Notwithstanding the
foregoing, the Distributor will have the right to translate the warranty into another language;
provided, however, that the Company will have the right to review and approve such translation
prior to its distribution to customers. The Distributor shall include in each of its agreements
with its end user customers and/or any agreement with subdistributors and/ or agents permitted by
the Company in accordance with Section 1.3 above, provisions incorporating the terms hereof and
confirming the customers’ and/or subdistributors’ and/or agents’ acknowledgement of and agreement
to the same.

     8.3 In addition to the aforementioned, the Company shall hold the Distributor harmless and
indemnify, compensate and reimburse the Distributor for the full extent of any loss, damage, claim,
or demand of any kind (including reasonable attorneys’ fees) (“Loss”), it shall suffer because of
any defect or problem with any of the Products or because of any breach of this agreement by the
Company, other than Loss incurred due to Distributor gross negligence, intentional misconduct, or
breach of this Agreement or any applicable law. The Company will have control of the defense of any
such action (but the Distributor shall take a part on those proceedings), including any appeals and
negotiations for the settlement or compromise thereof and will have full authority to enter into a
binding settlement or compromise.

     8.4 Limited Warranty. THE WARRANTIES SET FORTH IN THIS SECTION 8 ARE INTENDED SOLELY
FOR THE BENEFIT OF THE DISTRIBUTOR. ALL CLAIMS HEREUNDER WILL BE MADE BY THE DISTRIBUTOR AND MAY
NOT BE MADE BY THE DISTRIBUTOR’S CUSTOMERS. THE WARRANTIES SET FORTH ABOVE ARE IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AND ANY OTHER REPRESENTATIONS, TERMS, OR CONDITIONS,
WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY THE
COMPANY TO THE FULLEST EXTENT PERMISSIBLE BY LAW, INCLUDING WITHOUT LIMITATION ANY WARRANT FOR
MODIFICATIONS TO THE PRODUCTS MADE BY ANYONE OTHER THAN THE COMPANY (OR ON ITS BEHALF) AND NOT
APPROVED BY THE COMPANY IN ADVANCE AND IN WRITING, ANY OTHER ACT OR OMISSION OF ANYONE OTHER.

     8.5 Sole Remedies; Limited Liability. THE SOLE AND EXCLUSIVE REMEDIES FOR BREACH OF
ANY AND ALL WARRANTIES AND THE SOLE REMEDIES FOR THE COMPANY’S LIABILITY OF ANY KIND (INCLUDING
LIABILITY FOR NEGLIGENCE)

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

WITH RESPECT TO THE PRODUCTS AND ALL OTHER PERFORMANCE BY THE COMPANY UNDER THIS AGREEMENT
WILL BE LIMITED TO THE REMEDIES PROVIDED IN THIS SECTION 8 AND IN SECTION 9; NOTWITHSTANDING ANY
OTHER PROVISION OF THIS AGREEMENT (BUT EXCLUDING THE AGREEMENT REGARDING LIQUIDATED DAMAGES AS SET
FORTH IN EXHIBIT C), THE COMPANY’S LIABILITY TO THE DISTRIBUTOR IN CONNECTION, DIRECTLY OR
INDIRECTLY, WITH THIS AGREEMENT, SHALL NOT EXCEED IN ANY MANNER WHATSOEVER THE AMOUNT ACTUALLY PAID
BY THE DISTRIBUTOR TO THE COMPANY HEREUNDER.

     8.6 [omitted]

     8.7 Consequential Damages. IN NO EVENT WILL THE COMPANY’S LIABILITY, OF ANY KIND
INCLUDE ANY SPECIAL, INDIRECT, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES, EVEN IF THE
COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE.

9. Patents and Intellectual Property Rights

     9.1 Intellectual Property Rights. Distributor agrees that all the rights with respect
to the Products and Materials, including, without limitation, all patents, trademarks, copyrights,
services marks, trade names, technology, know how, moral rights and trade secrets, all applications
for any of the foregoing, permits, grants and licenses or other rights relating to the Products and
any improvement, modification, adaptation, innovation, derivation or development made to any of the
Products, including at the request of the Distributor or based on the Distributor’s ideas of
proposals (“Improvements”)(collectively, “Intellectual Property Rights”) are and shall remain at
all times the sole property of the Company. This Agreement shall not, under any circumstance, be
construed to constitute a grant to the Distributor of any Intellectual Property Rights belonging to
the Company, except as expressly provided herein. The Distributor hereby irrevocable assigns (and
shall procure that any subdistributor, if and to the extent applicable or any employee shall
assign) to the Company all right, title and interest it (or they) have in and to any Improvements
and agrees to take all action and to execute all required documents to affect the same.

     9.2 Defense of Claims. The Company will, at its own expense, defend any suit
instituted against the Distributor which is based on an allegation that any Product constitutes an
infringement third party intellectual property rights. The Company will have control of the
defense of any such action, including any appeals and negotiations for the settlement or compromise
thereof and will have full authority to enter into a binding settlement or compromise. Subject to
the provisions of Sections 8.5 and 8.7, the Company will indemnify the Distributor against any
award of damages and costs made against the Distributor as a result of any such action.

     9.3 Limitation of Liability. The Company will have no liability of any kind to the
Distributor under Section 9.2 or based upon any other claim the Distributor may have to the extent
any such claim is based upon or arises out of (a) the use of any Product in combination

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

with an apparatus or device not manufactured, supplied or approved in advance and in writing
by The Company, (b) the use of any Product in a manner for which it was not designed or intended to
be used, (c) any modification of any Product by the Distributor or any third party which causes it
to become infringing, or (d) the use of any Product not in full compliance with the Company
instructions enclosed therewith.

     9.4 Replacement Product. In order to avoid or limit any liability for infringement,
the Company may, at any time and irrespective of whether it will be obligated to do so by order of
any court, at its own expense and option, replace any Product with a non-infringing item providing
substantially the same performance.

     9.5 Infringement. The Distributor will promptly notify the Company as soon as it
becomes aware of any infringement or alleged infringement of any Intellectual Property Rights of
the Company. The Company reserves the right in its sole discretion to institute any proceedings
against such third-party infringers, and the Distributor will refrain from doing so. The
Distributor agrees to cooperate fully with the Company in any action taken by the Company against
such third parties, provided that all expenses of such action will be borne by the Company and all
damages which may be awarded or agreed upon in settlement of such action will accrue to the
Company.

10. Trademarks

     10.1 License. The Company hereby grants to the Distributor a non-exclusive,
non-transferable, and royalty-free right and license to use the Company’s trademarks, trade names
and logotypes in connection with the sale, distribution, promotion and advertising of the Products
in the Territory as long as such trademarks are used by the Distributor in accordance with the
Company’s standards, specifications and instructions, but in no event beyond the term of this
Agreement. The Distributor will not acquire any right, title or interest under the laws of any
nation in such trademarks, trade names or logotypes of the Company other than the foregoing limited
license and will not attempt to assert or register any such right, title or interest. The
Distributor will not use any of the Company’s trademarks, trade names or logotypes as part of the
Distributor’s corporate or trade names or permit any third party to do so without the prior written
consent of the Company.

     10.2 Infringement. The Distributor will promptly notify the Company of any use by any
third party of the Company’s trademarks, trade names or logotypes or any use by such third parties
of similar marks which may constitute an infringement or passing off of the Company’s trademarks,
trade names or logotypes. The Company reserves the right in its sole discretion to institute any
proceedings against such third-party infringers, and the Distributor will refrain from doing so.
The Distributor agrees to cooperate fully with the Company in any action taken by the Company
against such third parties, provided that all expenses of such action will be borne by the Company
and all damages which may be awarded or agreed upon in settlement of such action will accrue to the
Company.

     10.3 Termination of Use. The Distributor acknowledges the Company’s proprietary rights
in and to the Company’s trademarks, trade names and logotypes, and the Distributor

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

hereby waives all rights to any trademarks, trade names and logotypes now or hereafter
originated by The Company. The Distributor will not adopt, use or register any words, phrases or
symbols which are identical to or confusingly similar to any of the Company’s trademarks. Upon
termination of this Agreement, the Distributor will immediately cease using the Company’s
trademarks, trade names and logotypes in any manner.

11. Confidentiality

Simultaneously with the execution of this Agreement, the parties shall enter into a
Non Disclosure Agreement in the form attached hereto as Exhibit G.

12. Representations, Warranties and Indemnities

     12.1 Mutual Representations and Warranties. Each of the parties represents and
warrants to the other that (a) it has the right, power and authority to enter into this Agreement
and perform its obligations hereunder, and has taken all requisite organizational action to approve
and authorize its execution and delivery hereof, (b) this Agreement is valid and binding on it and
enforceable against it in accordance with the terms hereof, and (c) neither the execution nor the
performance of this Agreement will constitute a breach or violation of the terms of its charter,
incorporation or organizational documents or any contract, agreement or other commitment to which
it is a party or by which it or any of its properties are bound.

     12.2 Distributor Representation and Warranties. In addition to the aforesaid, the
Distributor represents and warrants to the Company that it has the required knowledge, experience,
expertise and financial capacity to fulfill its obligations hereunder, that it has previous
experience and knowledge regarding products similar to the Products and the applicable market in
the Territory, that it has gathered for itself and received and reviewed all the information deemed
required by it and that it is entering into this Agreement based on its independent analysis and
after evaluation for itself the merits hereof.

     12.3 Indemnification by The Company. Subject to Sections 8 and 9 above, the Company
agrees to indemnify, defend and hold harmless the Distributor and its subsidiaries, directors,
shareholders, officers and employees from and against any amounts paid to third parties for claims,
liabilities, damages, losses, costs and expenses (including reasonable attorneys’ fees) of any
nature (“Indemnifiable Losses”) resulting from or arising out of (a) any breach of any
representation, warranty, covenant or agreement on the part of the Company under this Agreement,
(b) the negligence, intentional or criminal act of the Company, its directors, officers, employees
and agents, or (c) personal injury, product liability or warranty claims of third parties related
to any of the Products, provided however, that the Distributor shall immediately notify the Company
in writing as soon as it becomes aware of such claim and allow the Company to defend such claim;
provided, further, that in no event will the Company be liable for matters for which the
Distributor is responsible under Section 12.4 below. For the avoidance of doubt, it is hereby
agreed that the Company shall not be required to indemnify the Distributor for any claims,
liabilities, damages, losses, costs and expenses resulting form Distributor’s failure to comply
with the requirement contained in Section 8.2 to include in each of distributor’s agreements with
its end user customers and/or any agreement with subdistributors and/ or agents

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

permitted by the Company in accordance with Section 1.3 above, provisions incorporating the
terms of Section 8.2 and confirming the customers’ and/or subdistributors’ and/or agents’
acknowledgement of and agreement to the same.

     12.4 Indemnification by the Distributor. The Distributor agrees to indemnify, defend
and hold harmless the Company and its subsidiaries, directors, officers and employees from and
against any amounts paid to third parties for Indemnifiable Losses resulting from or arising out of
(a) any breach of any representation, warranty, covenant or agreement on the part of the
Distributor under this Agreement, (b) the negligence, intentional or criminal act of the
Distributor, its directors, officers, employees and agents, (c) product claims, whether written or
oral, made or alleged to be made, by the Distributor in its advertising, publicity, promotion, or
sale of any Products where such product claims were not agreed to by the Company, or (d) negligent
handling by the Distributor of the Products or changes, additions or modifications to the Products
by the Distributor; provided, however, that in no event will the Distributor be liable for matters
for which the Company is responsible under Section 12.3 above, and provided however, that the
Company shall immediately notify the Distributor in writing as soon as it becomes aware of such
claim and allow the Distributor to defend such claim.

13. Jurisdiction

     13.1 Disputes. Any dispute, controversy or claim arising out of or relating to this
Agreement, or the breach, termination or invalidity thereof, which is not resolved between the
parties themselves, will be submitted to the competent courts of Tel Aviv, Israel.

     13.2 Governing Law. This Agreement will be governed by, and interpreted and construed
in accordance with, the laws of the State of Israel.

14. Force Majeure

     14.1 Definition. Force Majeure will mean any event or condition, not existing as of
the date of this Agreement, not reasonably foreseeable as of such date and not reasonably within
the control of either party, which prevents in whole or in material part the performance by one of
the parties of its obligations hereunder or which renders the performance of such obligations so
difficult or costly as to make such performance commercially unreasonable. Without limiting the
foregoing, the following will constitute events or conditions of Force Majeure: riots, civil or
military disturbances, war, strikes, lockouts, labor slowdowns or stoppages, prolonged shortage of
energy supplies, epidemics, fire, flood, hurricane, typhoon, earthquake, lightning and explosion.

     14.2 Notice. If a Force Majeure event occurs, a party affected by an event of Force
Majeure will promptly notify the other party of such event. Such notice will include a description
of the nature of the event of Force Majeure, its cause and possible consequences.

     14.3 Suspension of Performance. During the period that the performance by one of the
parties of its obligations under this Agreement has been suspended by reason of an event of Force
Majeure, the other party may likewise suspend the performance of all or part of its

20

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

obligations hereunder, except for the obligation to pay any amounts due and owing hereunder,
to the extent that such suspension is commercially reasonable.

15. Miscellaneous

     15.1 Relationship. This Agreement does not make either party the employee, agent or
legal representative of the other for any purpose whatsoever. Neither party is granted any right or
authority to assume or to create any obligation or responsibility, express or implied, on behalf of
or in the name of the other party. In fulfilling its obligations pursuant to this Agreement each
party will be acting as an independent contractor. This Agreement will not be construed in any way
to deem the Distributor an agent or franchisee of the Company for any purpose whatsoever. The
parties acknowledge that their relationship under this Agreement is that of supplier and
distributor and not that of principal and agent or of franchisor and franchisee. The Distributor
acknowledges that it has paid no fee or other consideration for any right under this Agreement. It
is the express intent of the parties, pursuant to their right to freedom of contract, that this
Agreement will govern the obligations of each to the other and the right of each resulting from
such relationship and that no state or foreign franchise law or any other law purporting to alter
the relationship between the Company and the Distributor, presently in force or hereafter enacted,
may apply to the rights and obligations of and between the parties under this Agreement. The rights
and obligations of the parties in the event of termination of this Agreement have been separately
bargained for and are intended by both parties to be in lieu of any rights or obligations arising
under any state or foreign franchise law, or any other law purporting to alter the relationship
between the parties. The time within which the Distributor may bring an action for breach of this
Agreement will be one hundred eighty (180) days from the date he was first aware of such breach. No
action may be commenced after that one hundred eighty (180) day period.

     15.2 Assignment. Neither party may assign or otherwise transfer its rights and
obligations under this Agreement without the prior written consent of the other party, except that
a party may assign this Agreement to any successor in interest of all or substantially all of its
business, whether by merger, acquisition, operation of law, assignment, purchase or otherwise, or
to any of its subsidiaries and/or affiliates, other than to a competitor of the other party
(whether or not in the Field). Any prohibited assignment will be null and void. All terms and
conditions of this Agreement will be binding on and inure to the benefit of the successors and
permitted assigns of the parties.

     15.3 Publicity. This Agreement is confidential and no party will issue press releases
or engage in other types of publicity of any nature dealing with the commercial and legal details
of this Agreement without the other party’s prior written approval, which approval will not be
unreasonably withheld. However, approval of such disclosure will be deemed to be given to the
extent such disclosure is required to comply with governmental rules, regulations or other
governmental requirements, including without limitation, any reporting obligations by any
governmental securities authority.

     15.4 Notices. Notice permitted or required to be given under this Agreement will be
deemed sufficient if given in writing by facsimile, commercial air delivery service or by

21

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

registered or certified air mail, postage prepaid, return receipt requested, addressed to the
respective addresses of the parties set forth below or at such other address as the respective
parties may designate by like notice from time to time. Notices so given will be effective upon the
earlier of: (a) receipt by the party to which notice is given (which, in the instance of a
facsimile, will be deemed to have occurred at the time that the machine transmitting the facsimile
verifies a successful transmission of the facsimile); (b) on the seventh business day following the
date such notice was deposited in the mail; or (c) on the third business day such notice was
delivered to a commercial air delivery service. Notices will be given as follows:

	 	 	 
	If to the Distributor:

	 	Johnson & Johnson Medical Israel, A Division of J — C Healthcare L.T.D
	 

	 	Kibbutz Shefayim 60990
	 

	 	Israel
	 

	 	Attn: Cordis Business Unit Manager
	 

	 	Fax: 972-9-9565787
	 
	 	 
	If to the Company:

	 	TopSpin Medical (Israel) Ltd.
	 

	 	2 Yodfat Street
	 

	 	Lod 71921
	 

	 	Israel
	 

	 	Attn: Chief Executive Officer
	 

	 	Fax: 972-8-9259003

     15.5 Entire Agreement. This Agreement, including the exhibits attached hereto and
incorporated as an integral part of this Agreement, constitutes the entire agreement of the parties
with respect to the subject matter hereof, and supersedes all previous proposals, oral or written,
and all negotiations, conversations or discussions heretofore had between the parties related to
this agreement. The Distributor acknowledges that it has not been induced to enter into this
Agreement by any representations or statements, oral or written, not expressly contained herein.

     15.6 Amendment. This Agreement will not be deemed or construed to be modified,
amended, rescinded, canceled or waived, in whole or in part, other than by written amendment signed
by the parties hereto, except as expressly provided in this Agreement.

     15.7 Severability. In the event that any of the terms of this Agreement are in
conflict with any rule of law or statutory provision or otherwise unenforceable under the laws or
regulations of any government or subdivision thereof, such terms will be deemed stricken from this
Agreement, but such invalidity or unenforceability will not invalidate any of the other terms of
this Agreement and this Agreement will continue in force, unless the invalidity or unenforceability
of any such provisions of this Agreement substantially violates, comprises an integral part of or
is otherwise inseparable from the remainder of this Agreement.

     15.8 Counterparts. This Agreement will be executed in two or more counterparts in the
English language, and each such counterpart will be deemed an original hereof. In case of any
conflict between the English version and any translated version of this Agreement, the English
version will govern.

22

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

     15.9 Waiver. No failure by either party to take any action or assert any right
hereunder will be deemed to be a waiver of such right in the event of the continuation or
repetition of the circumstances giving rise to such right.

     15.10 No Third Party Beneficiaries. This Agreement shall be binding upon and, except
as specifically provided herein, shall inure solely to the benefit of the parties hereto and their
respective successors and assigns.

     The parties hereto have caused this Agreement to be duly executed by their authorized
representatives as of the day and year first above written.

	 	 	 	 	 	 	 
	TOPSPIN MEDICAL (ISRAEL) LTD.	 	JOHNSON & JOHNSON MEDICAL ISRAEL, A
DIVISION OF J — C HEALTHCARE LTD.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Erez Golan
	 	By:
	 	/s/ Uri Frisch
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Erez Golan
	 	Name:
	 	Uri Frisch
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer
	 	Title:
	 	Director
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Eyal Kolka	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	Eyal Kolka	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	Chief Financial Officer	 	 	 	 
	 

	 	 	 	 	 	 

23

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT A

Product:

Intravascular MRI Catheter for the Coronary Arteries (“Catheter”)

Intravascular MRI Console (“Console”)

Field:

Intravascular MRI Catheter for the Coronary Arteries

24

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT B

TERRITORY

The Territory: Israel

25

 

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT C

CONSIDERATION, PAYMENT SCHEDULE AND INVOICING

Transfer Price per Product payable by the Distributor to the Company: 

Catheter: ****

Console: ****

* All Prices quoted herein are net of the taxes detailed in Section 3.5.

Maximum Amount (for the Purpose of Section 3.2): ****

Participation of Distributor in Costs of Clinical Trials: 

Distributor pays: ****.

Minimal estimated clinical trial support by distributor: ****

Method of payment to be agreed between the parties.

****

If the Company shall be in breach of this obligation it shall pay Distributor, as an agreed upon
compensations, the amount detailed below (under the paragraph titled “Liquidated damages during the
Initial Term”), but in no event will damages be paid both under this paragraph and under said
paragraph.

Marketing Fee Payable by the Company to Distributor: 

****

Quantities of Advanced Products: ****.

Quantities of Demonstration Products: ****

26

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

Liquidated damages during the Initial Term:

A. Payment by the Company:

     An amount to be calculated based on the following formula:

C = US$ 162,500 — (CP)

In which -

“C” is the US$ amount of compensation to be paid by the Company; and

“CP” is the actual amount of general payments actually made by (or on behalf of) the
Company (excluding any payments actually made, directly or indirectly by
Distributor), to clinical sites in connection with the conduct of the clinical
trials pursuant to Section 3.5 of the Agreement, and excluding any payments relating
to the participation of patients, their enrolment or any other payment relating
directly to the number of patients participating in such trials.

B. Payments by Distributor:

     An amount to be calculated based on the following formula:

C = US$ 162,500 — [(X*US$500) + (Y* US$100)] — (DP)

In which -

“C” is the US$ amount of compensation to be paid by the Distributor; and

“X” is the number of Catheters used by clinical sites in connection with the conduct
of the clinical trials pursuant to Section 3.5 of the Agreement, provided, however,
that in any event X + Y will not be more than 175; and

“Y” is the number patients enrolled by clinical sites in connection with the conduct
of the clinical trials pursuant to Section 3.5 of the Agreement, for which Catheters
have not yet been used, provided, however, that in any event X + Y will not be more
than 175; and

“DP” is the actual amount of general payments actually made by the Distributor to
the Company or directly to clinical sites in connection with the conduct of the
clinical trials pursuant to Section 3.5 of the Agreement.

27

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT D

MINIMUM PURCHASE REQUIREMENTS

Minimum Purchase Requirements:

	 	 	 	 	 
	Year	 	Quarter	 	Minimum Purchase Requirements*
	First Year of the Term
	 	Q1	 	****
	First Year of the Term
	 	Q2	 	****
	First Year of the Term
	 	Q3	 	****
	First Year of the Term
	 	Q4	 	****
	Second Year of the Term
	 	Q1	 	****
	Second Year of the Term
	 	Q2	 	****
	Second Year of the Term
	 	Q3	 	****
	Second Year of the Term
	 	Q4	 	****
	Third Year of the Term
	 	Q1	 	****
	Third Year of the Term
	 	Q2	 	****
	Third Year of the Term
	 	Q3	 	****
	Third Year of the Term
	 	Q4	 	****

Minimum Purchase Requirements per each Purchase Order: None

* All Minimum Purchase Requirements stated herein are in aggregate amounts in US$.

28

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT E

The Company’s Regulatory Affairs Contact Details:

TopSpin Medical (Israel) Ltd.

Attn: Regulatory Affairs

2 Yodfat Street

Lod 71921

Tel: 972-8-9200033

Fax: 972-8-9259003

Email: marina@topspin.co.il

29

 

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT F

PROMOTION, MARKETING AND SERVICING SCHEDULE

List of promotion, marketing and training tasks of the Distributor under the agreement:

	 	•	 	Participating in the major interventional cardiology conferences: Euro-PCR, ESC and
TCT. Being present in Company booth if applicable, joining meetings and inviting potential
customers to the booth.

	 	•	 	Assistance in reviewing and preparing marketing materials, including brochures and
presentations.

	 	•	 	Assistance in defining marketing strategy, product positioning and key messages
(product strengths, obtaining testimonials from users).

	 	•	 	Assisting the company in arranging visits to key sites.
	 
	 	•	 	Joining meetings with physicians when needed: advisory board meetings, investigator
meetings, etc.
	 
	 	•	 	Recommending to the company which regional meetings can be relevant and participating
in them with company representatives.
	 
	 	•	 	Assisting company in obtaining co-funding for Post-Marketing Studies from industry
partners (device/pharma) on regional level.
	 
	 	•	 	Be trained on the clinical need, the technology and system operation.
	 
	 	•	 	Assist in assembling training program for site initiations (physicians and operators).
	 
	 	•	 	After an agreed number of initiations, take over site initiation and user training
programs.

List of servicing tasks of the Company under the agreement:

	 	•	 	Provide service activity by remote trouble shooting level (phone, email).
	 
	 	•	 	Provide field service activity (labor) at component level.
	 
	 	•	 	Provide laboratory service.
	 
	 	•	 	Maintain and manage spare parts.

30

 

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CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

EXHIBIT G

NON-DISCLOSURE AGREEMENT

31

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

NON DISCLOSURE AGREEMENT

This non disclosure agreement (the “Agreement”) is entered into as of the 29 day of July,
2007, by and among TopSpin Medical (Israel) Ltd., a company incorporated under the laws of the
State of Israel (the “Company”) whose address for purposes hereof is 2 Yodfat St., Lod (the
“Company”), and Johnson & Johnson Medical Israel, A Division of J — C Healthcare L.T.D, a company
incorporated under the laws of the state of Israel (the “Distributor”) whose address for purposes
hereof is Kibbutz Shefayim 60990, Israel.

The Distributor and the Company have executed an Exclusive Distribution Agreement (the
“Distribution Agreement”), and in connection with the same either party (the “Disclosing Party”)
has been, and/or will be, provided with, and/or has access to certain confidential information of
the other party (“Receiving Party”). With respect to any and all information disclosed by the
Disclosing Party to the Receiving Party, the parties wish to ensure due protection of such
information. For the purposes of this agreement, Confidential Information of TopSpin Medical
(Israel) Ltd. shall include Confidential Information of its parent company, TopSpin Medical Inc.,
and its subsidiaries and other affiliates.
Therefore, the parties hereby agree as follows:

1. Receiving Party acknowledges and agrees that it may have access to confidential and proprietary
information concerning the activities and business of the Disclosing Party, all whether in oral,
written, graphic, or machine-readable form, or in any other form, including, without limitation,
concepts, techniques, processes, methods, systems, designs, drawings, photographs, models,
prototypes, computer programs, research materials, formulas, development or experimental work, work
in progress, mask work, inventions, cost data, marketing plans, product plans, business strategies,
financial information, forecasts, personnel information and customer or supplier lists. Such
information, whether documentary, written, oral or computer generated, shall be deemed to be and
referred to as “Proprietary Information”.

2. Notwithstanding the aforesaid, information shall not be deemed as Proprietary Information, for
purposes of this Agreement, if the Receiving Party can show documentary evidence that: (a) such
information is in the public domain at the time of disclosure, or subsequently becomes part of the
public domain, through no breach of the Receiving Party of its obligations hereunder; or (b) such
information is received by the Receiving Party from a third party exempt from confidentiality
undertakings; or (c) such information was in its possession at the time of disclosure, and the
Receiving Party so advised the Disclosing Party immediately upon disclosure; or (d) the Receiving
Party is compelled by court or government action pursuant to applicable law to disclose such
information, provided, however, that the Receiving Party gives the Disclosing Party prompt notice
thereof so that the Disclosing Party may seek a protective order or other appropriate remedy, and
further provided that in the event that such protective order or other remedy is not obtained, the
Receiving Party shall furnish only that portion of the Proprietary Information which is legally
required, and shall exercise all efforts required to obtain confidential treatment for such
information.

3. The Proprietary Information shall be used by the Receiving Party for the limited purposes set
forth in the Distribution Agreement.

32

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

4. The Receiving Party hereby acknowledges that the Proprietary Information is highly confidential,
and undertakes that, at all times, it: (i) shall treat and maintain the Proprietary Information as
confidential, and hold all such Proprietary Information in trust and in strict confidence,
utilizing the same degree of care it uses to protect its own confidential information, but in no
event less than a reasonable degree of care; (ii) shall not disclose the Proprietary Information to
any third party, whether or not for consideration; (iii) shall not use the Proprietary Information
for any purpose other than the limited purpose mentioned in Section 3 above, or exploit the
Proprietary Information for its own benefit or for the benefit of anyone else, without the prior
written consent of the Disclosing Party; and (iv) shall not make any copies of the Proprietary
Information without the prior written consent of the Disclosing Party.

5. Receiving Party undertakes to hold all Proprietary Information locked and to disclose the
Proprietary Information only to those of its employees and consultants (provided, with respect to
such consultants, that disclosure to any consultant shall be made only after receipt of written
consent of the Disclosing Party) (each, a “Representative”) who have to be so informed in order to
provide the services pursuant to the Distribution Agreement, and provided that such Representatives
are bound by written confidentiality and non-use undertakings towards Receiving Party which also
apply to the Proprietary Information disclosed to Receiving Party under this Agreement. Receiving
Party will be responsible for ensuring that the obligations of confidentiality and non-use
contained herein are observed by all Representatives, and it represents that it has instituted
policies and procedures which provide such adequate protection for the Proprietary Information.
Without derogating from the aforesaid, Receiving Party shall bear full responsibility for any harm
caused to the Disclosing Party by disclosure to Representatives.

6. Upon the Disclosing Party ‘s first demand, Receiving Party shall return to the Disclosing Party
all Proprietary Information, including all records, products and samples received, and any copies
thereof, as well as any notes, memoranda or other writings or documentation which contain or
pertain to the Proprietary Information or any portion thereof, whether in its possession or under
its control, and shall erase all electronic records thereof, an shall so confirm to the Disclosing
Party in writing.

7. Receiving Party recognizes, acknowledges and agrees that the Disclosing Party may be irreparably
harmed if the Receiving Party s obligations and undertakings herein are not specifically enforced
and that the Disclosing Party would not have an adequate remedy at law in the event of actual or
threatened violation by the Receiving Party of such obligations and undertakings. Therefore, the
Receiving Party agrees that the Disclosing Party shall be entitled to seek and obtain an
injunction, without bond, or to an appropriate decree of specific performance or any other
appropriate equitable relief.

8. The Receiving Party recognizes that Disclosing Party will receive confidential or Proprietary
Information from third parties subject to a duty on Disclosing Party’s part to maintain the
confidentiality of such information and to use it only for certain limited purposes. At all times,
both during the term of this Agreement and after its termination, the Receiving Party undertakes to
keep all such information in strict confidence and trust, and not to use or disclose any of such
information without the prior written consent of Disclosing Party, except as may be

33

 

PORTIONS OF THIS EXHIBIT IDENTIFIED BY “****” HAVE BEEN DELETED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER SECTION 406 TO
REGULATION C OF THE SECURITIES ACT OF 1933, AS AMENDED.

necessary to perform his duties under the Distribution Agreement and consistent with Disclosing
Party’s agreement with such third party. Upon termination of the Distribution Agreement, the
Receiving Party shall act with respect to such information as set forth in Section 6, mutatis
mutandis.

9. The Receiving Party agrees and declares that all Proprietary Information, patents and other
rights in connection therewith shall be the sole property of Disclosing Party and its assigns.

10. All of the Disclosing Party ‘s rights hereunder and all of the Receiving Party ‘s obligations
and undertakings hereunder shall be in full effect for the entire term of this Agreement, and for
an unlimited period of time after its termination, cancellation or expiration for any reason
whatsoever.

11. The provisions of Section 15 of the Distribution Agreement shall apply to this Agreement,
mutatis mutandis.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	TopSpin Medical (Israel) Ltd.	 	Johnson & Johnson Medical Israel,
A Division of J — C Healthcare L.T.D
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 

34ex44sbgar.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 4.3

     SERIES B GUARANTEE AGREEMENT

UMPQUA HOLDINGS CORPORATION

Dated as of September 6, 2007

Guarantee – Series B

	
TABLE OF CONTENTS
	
	
 
		
 		
 
		
 		

Page 
	

	
ARTICLE I
	
	
DEFINITIONS AND INTERPRETATION
	
	
Section 1.1 
		
      		
                Definitions and Interpretation 
		
 		
1 
	
	
ARTICLE II
	
	
POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
	
	
Section 2.1 
		
 		
                Powers and Duties of the Guarantee Trustee 
		
 		
4 
	
	
Section 2.2 
		
 		
                Certain Rights of the Guarantee Trustee 
		
 		
6 
	
	
Section 2.3 
		
 		
                Not Responsible for Recitals or Issuance of Guarantee 
		
 		
8 
	
	
Section 2.4 
		
 		
                Events of Default; Waiver 
		
 		
8 
	
	
Section 2.5 
		
 		
                Events of Default; Notice 
		
 		
8 
	
	
ARTICLE III
	
	
THE GUARANTEE TRUSTEE
	
	
Section 3.1 
		
 		
                The Guarantee Trustee; Eligibility 
		
 		
8 
	
	
Section 3.2 
		
 		
                Appointment, Removal and Resignation of the Guarantee Trustee 
		
 		
9 
	
	
ARTICLE IV
	
	
GUARANTEE
	
	
Section 4.1 
		
 		
                Guarantee 
		
 		
10 
	
	
Section 4.2 
		
 		
                Waiver of Notice and Demand 
		
 		
10 
	
	
Section 4.3 
		
 		
                Obligations Not Affected 
		
 		
10 
	
	
Section 4.4 
		
 		
                Rights of Holders 
		
 		
11 
	
	
Section 4.5 
		
 		
                Guarantee of Payment 
		
 		
11 
	
	
Section 4.6 
		
 		
                Subrogation 
		
 		
12 
	
	
Section 4.7 
		
 		
                Independent Obligations 
		
 		
12 
	
	
Section 4.8 
		
 		
                Enforcement 
		
 		
12 
	
	
ARTICLE V
	
	
LIMITATION OF TRANSACTIONS; SUBORDINATION
	
	
Section 5.1 
		
 		
                Limitation of Transactions 
		
 		
12 
	
	
Section 5.2 
		
 		
                Ranking 
		
 		
13 
	
	
ARTICLE VI
	
	
TERMINATION
	
	
Section 6.1 
		
 		
                Termination 
		
 		
13 
	

	
-i-

	
[TPW: NYLEGAL:710707.2] 21095-00004 08/31/2007 01:51 PM

	
TABLE OF CONTENTS
	
	
(continued)
	
	
 
		
 		
 
		
 		

Page 
	

	
ARTICLE VII
	
	
INDEMNIFICATION
	
	
Section 7.1 
		
      		
Exculpation 
		
 		

14 
	

	
Section 7.2 
		
 		
Indemnification 
		
 		

14 
	

	
Section 7.3 
		
 		
Compensation; Reimbursement of Expenses 
		
 		

15 
	

	
ARTICLE VIII
	
	
MISCELLANEOUS
	
	
Section 8.1 
		
 		
Successors and Assigns 
		
 		

16 
	

	
Section 8.2 
		
 		
Amendments 
		
 		

16 
	

	
Section 8.3 
		
 		
Notices 
		
 		

16 
	

	
Section 8.4 
		
 		
Benefit 
		
 		

17 
	

	
Section 8.5 
		
 		
Governing Law 
		
 		

17 
	

	
Section 8.6 
		
 		
Counterparts 
		
 		

17 
	

	
-ii-

	
[TPW: NYLEGAL:710707.2] 21095-00004 08/31/2007 01:51 PM

	GUARANTEE AGREEMENT

     This GUARANTEE AGREEMENT (the “Guarantee”), dated as of September 6, 2007, is executed and delivered by Umpqua Holdings Corporation, a bank holding company (the “Guarantor”), and LaSalle Bank National Association, as trustee (the “Guarantee Trustee”), for the benefit of the Holders (as defined herein) from time to time of the Series of Capital Securities (as defined herein) of Umpqua Master Trust I, a Delaware statutory trust (the “Issuer”).

     WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Master Trust Declaration”), dated August 9, 2007, among the trustees named therein of the Issuer, Umpqua Holdings Corporation, as sponsor, and the Holders from time to time of undivided beneficial interests in the specific assets associated with each series of the Issuer, as supplemented by the Series B Series Supplement, dated as of the date hereof (such series supplement, together with the Master Trust Declaration, the “Declaration”), the Issuer is issuing on the date hereof a class of preferred undivided beneficial interests in the specific assets of the Issuer associated with the Series pursuant to the Declaration, having an aggregate liquidation amount of $20,000,000 (the “Capital Securities”); and

     WHEREAS, as incentive for the Holders to purchase the aforesaid Capital Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth in this Guarantee, to pay to the Holders of the Capital Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase by each Holder of the Capital Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of the Holders.

	ARTICLE I

	DEFINITIONS AND INTERPRETATION

	SECTION 1.1     Definitions and Interpretation.

In this Guarantee, unless the context otherwise requires:

     (a) capitalized terms used in this Guarantee but not defined in the preamble above have the respective meanings assigned to them in this Section 1.1;

     (b)  a term defined anywhere in this Guarantee has the same meaning  

throughout;

     (c)  all references to “the Guarantee” or “this Guarantee” are to this Guarantee as modified, supplemented or amended from time to time;

     (d) all references in this Guarantee to Articles and Sections are to Articles and Sections of this Guarantee, unless otherwise specified;

Guarantee – Series B

     (e) terms defined in the Declaration as of the date of execution of this Guarantee have the same meanings when used in this Guarantee, unless otherwise defined in this Guarantee or unless the context otherwise requires; and

     (f) a reference to the singular includes the plural and vice versa.

     “Beneficiaries” means any Person to whom the Issuer is or hereafter becomes indebted to or liable to in connection with or with respect to the Series.

     “Common Securities” means the class of common undivided beneficial interests in the specific assets of the Issuer associated with the Series pursuant to the Declaration.

     “Corporate Trust Office” means the office of the Guarantee Trustee at which at any particular time its corporate trust business shall be principally administered, which at all times shall be located within the United States and at the time of the execution of this Guarantee shall be 135 S. LaSalle Street, Suite 1511, Chicago, Illinois 60603, Attention: CDO Trust Services Group.

     “Covered Person” means any Holder of Capital Securities.

     “Debenture Issuer” means Umpqua Holdings Corporation or any successor entity resulting from any consolidation, amalgamation, merger or other business combination, in its capacity as issuer of the Debentures.

     “Debentures” means the series of junior subordinated debentures issued and sold by the Debenture Issuer, under the Indenture, to the Master Trust (for, with respect to, and on behalf of the Series) and to be designated as the “Junior Subordinated Debt Securities, Series B, due December 15, 2037” and held by the Institutional Trustee (as defined in the Declaration) of the Issuer.

     “Event of Default” has the meaning set forth in Section 2.4.

     “Guarantee Payments” means the following payments or distributions, without duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer: (i) any accrued and unpaid Distributions (as defined in the Declaration) which are required to be paid on such Capital Securities to the extent the Issuer has funds available in the Property Account (as defined in the Declaration) therefor at such time, (ii) the price payable upon the redemption of any Capital Securities to the extent the Issuer has funds available in the Property Account therefor at such time, with respect to any Capital Securities that are (1) called for redemption by the Issuer or (2) mandatorily redeemed by the Issuer, in each case, in accordance with the terms of such Capital Securities, and (iii) upon a voluntary or involuntary liquidation, dissolution, winding-up or termination of the Issuer (other than in connection with the distribution of Debentures to the Holders of the Capital Securities in exchange therefor as provided in the Declaration), the lesser of (a) the aggregate of the liquidation amount of the Capital Securities and all accrued and unpaid Distributions on the Capital Securities to the date of payment, to the extent the Issuer has funds available in the Property Account therefor at such time, and (b) the amount of assets of the Issuer remaining available for distribution to Holders in

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liquidation of the Issuer after satisfaction of liabilities to creditors of the Issuer as required by applicable law (in either case, the “Liquidation Distribution”).

     “Guarantee Trustee” means LaSalle Bank National Association, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and thereafter means each such Successor Guarantee Trustee.

     “Holder” means any Person in whose name any of the Capital Securities are registered on the books and records of the Issuer; provided, however, that, in determining whether the holders of the requisite percentage of Capital Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor or any Affiliate of the Guarantor.

     “Indemnified Person” means the Guarantee Trustee (including in its individual capacity), any Affiliate of the Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees, representatives, nominees, custodians or agents of the Guarantee Trustee.

     “Indenture” means the Indenture, dated August 9, 2007, between the Debenture Issuer and LaSalle Bank National Association, not in its individual capacity but solely as trustee, and any indenture supplemental thereto establishing or governing the terms of the Debentures pursuant to which the Debentures are to be issued to the Institutional Trustee of the Issuer (for, with respect to, and on behalf of the Series).

     “Liquidation Distribution” has the meaning set forth in the definition of “Guarantee Payments” herein.

     “Majority in liquidation amount of the Capital Securities” means Holder(s) of outstanding Capital Securities, voting together as a class, but separately from the holders of Common Securities, of more than 50% of the aggregate liquidation amount (including the amount that would be paid upon the redemption, liquidation or otherwise on the date upon which the voting percentages are determined, plus unpaid Distributions accrued thereon to such date) of all Capital Securities then outstanding.

     “Obligations” means any costs, expenses or liabilities (but not including liabilities related to taxes) of the Issuer with respect to the Series, other than obligations of the Issuer to pay to holders of the Trust Securities the amounts due such holders pursuant to the terms of the Trust Securities.

     “Officer’s Certificate” means, with respect to any Person, a certificate signed by one Authorized Officer of such Person. Any Officer’s Certificate delivered with respect to compliance with a condition or covenant provided for in this Guarantee shall include:

     (a) a statement that such officer signing the Officer’s Certificate has read the covenant or condition and the definitions relating thereto;

     (b) a brief statement of the nature and scope of the examination or investigation undertaken by such officer in rendering the Officer’s Certificate;

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     (c) a statement that such officer has made such examination or investigation as, in such officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and

     (d) a statement as to whether, in the opinion of such officer, such condition or covenant has been complied with.

     “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature.

     “Responsible Officer” means, with respect to the Guarantee Trustee, any officer within the Corporate Trust Office of the Guarantee Trustee with direct responsibility for the administration of any matters relating to this Guarantee, including any vice president, any assistant vice president, any secretary, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or other officer of the Corporate Trust Office of the Guarantee Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject.

     “Series” means the series of beneficial interests in the Master Trust established by and in accordance with the Declaration, comprised of the Trust Securities and designated Series B Securities issued as of the date hereof.

     “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 3.1.

“Trust Securities” means the Common Securities and the Capital Securities.

	ARTICLE II

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

	SECTION 2.1     Powers and Duties of the Guarantee Trustee.

     (a) This Guarantee shall be held by the Guarantee Trustee for the benefit of the Holders of the Capital Securities, and the Guarantee Trustee shall not transfer this Guarantee to any Person except a Holder of Capital Securities exercising his or her rights pursuant to Section 4.4 (b) or to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee.

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     (b) If an Event of Default actually known to a Responsible Officer of the Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee for the benefit of the Holders of the Capital Securities.

     (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee, and no implied covenants shall be read into this Guarantee against the Guarantee Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.4(b)) and is actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

     (d) No provision of this Guarantee shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct or bad faith, except that:

          (i) prior to the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred:

                (A) the duties and obligations of the Guarantee Trustee shall be determined solely by the express provisions of this Guarantee, and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee, and no implied covenants or obligations shall be read into this Guarantee against the Guarantee Trustee; and

                (B) in the absence of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to the requirements of this Guarantee; but in the case of any such certificates or opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not on their face they conform to the requirements of this Guarantee;

          (ii) the Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that such Responsible Officer of the Guarantee Trustee or the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made;

          (iii) the Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the Holders of a Majority in liquidation amount of the Capital Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee; and

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          (iv) no provision of this Guarantee shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds is not reasonably assured to it under the terms of this Guarantee, or security and indemnity, reasonably satisfactory to the Guarantee Trustee, against such risk or liability is not reasonably assured to it.

	SECTION 2.2     Certain Rights of the Guarantee Trustee.

     (a)      Subject to the provisions of Section 2.1:

          (i) The Guarantee Trustee may conclusively rely, and shall be fully protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent or presented by the proper party or parties.

          (ii) Any direction or act of the Guarantor contemplated by this Guarantee shall be sufficiently evidenced by an Officer’s Certificate.

          (iii) Whenever, in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or omitting any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an Officer’s Certificate of the Guarantor which, upon receipt of such request, shall be promptly delivered by the Guarantor.

          (iv) The Guarantee Trustee shall have no duty to see to any recording, filing or registration of any instrument or other writing (or any rerecording, refiling or reregistration thereof).

          (v) The Guarantee Trustee may consult with counsel of its selection, and the advice or opinion of such counsel with respect to legal matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the Guarantor or any of its Affiliates and may include any of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee from any court of competent jurisdiction.

          (vi) The Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Guarantee at the request or direction of any Holder, unless such Holder shall have provided to the Guarantee Trustee such security and indemnity, reasonably satisfactory to the Guarantee Trustee, against the costs, expenses (including attorneys’ fees and expenses and the expenses of the Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the Guarantee Trustee; provided, however, that nothing contained in this Section 2.2(a)(vi) shall be taken to relieve the

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Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this Guarantee.

          (vii) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

          (viii) The Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, custodians or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

          (ix) Any action taken by the Guarantee Trustee or its agents hereunder shall bind the Holders of the Capital Securities, and the signature of the Guarantee Trustee or its agents alone shall be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its compliance with any of the terms and provisions of this Guarantee, both of which shall be conclusively evidenced by the Guarantee Trustee’s or its agent’s taking such action.

          (x) Whenever in the administration of this Guarantee the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders of a Majority in liquidation amount of the Capital Securities, (B) may refrain from enforcing such remedy or right or taking such other action until such instructions are received and (C) shall be protected in conclusively relying on or acting in accordance with such instructions.

          (xi) The Guarantee Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Guarantee.

     (b) No provision of this Guarantee shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a duty.

     SECTION 2.3 Not Responsible for Recitals or Issuance of Guarantee.

     The recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The Guarantee Trustee makes no representation as to the validity or sufficiency of this Guarantee.

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     SECTION 2.4        Events of Default; Waiver.

     (a)  An “Event of Default” under this Guarantee will occur upon the failure of the Guarantor to perform any of its payment or other obligations hereunder.

     (b) The Holders of a Majority in liquidation amount of the Capital Securities may, voting or consenting as a class, on behalf of the Holders of all of the Capital Securities, waive any past Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and shall be deemed to have been cured, for every purpose of this Guarantee, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

	     SECTION 2.5       Events of Default; Notice.

     (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid, to the Holders of the Capital Securities, notices of all Events of Default actually known to a Responsible Officer of the Guarantee Trustee, unless such defaults have been cured before the giving of such notice, provided, however, that the Guarantee Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Capital Securities.

     (b) The Guarantee Trustee shall not be charged with knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice thereof from the Guarantor or a Holder of the Capital Securities, or a Responsible Officer of the Guarantee Trustee charged with the administration of this Guarantee shall have actual knowledge thereof.

	ARTICLE III

	THE GUARANTEE TRUSTEE

	     SECTION 3.1     The Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Guarantee Trustee which shall:

          (i) not be an Affiliate of the Guarantor; and

          (ii) be a corporation or national association organized and doing business under the laws of the United States of America or any state thereof or of the District of Columbia, or Person authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state or District of Columbia authority. If such corporation or national association publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or examining authority referred to above, then, for the purposes of this Section 3.1(a)(ii), the combined capital and surplus of such corporation or national association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

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     (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section 3.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set forth in Section 3.2(c) .

     (c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee shall either eliminate such interest or resign to the extent and in the manner provided by, and subject to, this Guarantee.

     SECTION 3.2 Appointment, Removal and Resignation of the Guarantee Trustee.

     (a)  Subject to Section 3.2(b), the Guarantee Trustee may be appointed or removed without cause at any time by the Guarantor except during an Event of Default.

     (b) The Guarantee Trustee shall not be removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee has been appointed and has accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor.

     (c) The Guarantee Trustee appointed to office shall hold office until a Successor Guarantee Trustee shall have been appointed or until its removal or resignation. The Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Guarantee Trustee has been appointed and has accepted such appointment by an instrument in writing executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee.

     (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 3.2 within 60 days after delivery of an instrument of removal or resignation, the Guarantee Trustee resigning or being removed may petition any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee.

     (e) No Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Guarantee Trustee.

     (f) Upon termination of this Guarantee or removal or resignation of the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing to the Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such termination, removal or resignation.

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	  ARTICLE IV

 GUARANTEE

	SECTION 4.1     Guarantee.

     (a) The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when due, regardless of any defense (except defense of payment by the Issuer), right of set-off or counterclaim that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders.

     (b) The Guarantor hereby also agrees to assume any and all Obligations of the Issuer and in the event any such Obligation is not so assumed, subject to the terms and conditions hereof, the Guarantor hereby irrevocably and unconditionally guarantees to each Beneficiary the full payment, when and as due, of any and all Obligations to such Beneficiaries. This Guarantee is intended to be for the Beneficiaries who have received notice hereof.

	SECTION 4.2     Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Guarantee and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands.

	SECTION 4.3     Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under this Guarantee shall in no way be affected or impaired by reason of the happening from time to time of any of the following:

     (a) the release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition relating to the Capital Securities to be performed or observed by the Issuer;

     (b) the extension of time for the payment by the Issuer of all or any portion of the Distributions, the price payable upon the redemption of the Capital Securities, the Liquidation Distribution or any other sums payable under the terms of the Capital Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with, the Capital Securities (other than an extension of time for the payment of the Distributions, the price payable upon the redemption of the Capital Securities, the Liquidation Distribution or other sums payable that results from the extension of any interest payment period on the Debentures);

     (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the Holders

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pursuant to the terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or extension of any kind;

     (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer;

     (e) any invalidity of, or defect or deficiency in, the Capital Securities;

     (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or

     (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this Section 4.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect to the happening of any of the foregoing.

	SECTION 4.4     Rights of Holders.

     (a) The Holders of a Majority in liquidation amount of the Capital Securities have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or power conferred upon the Guarantee Trustee under this Guarantee; provided, however, that (subject to Sections 2.1 and 2.2) the Guarantee Trustee shall have the right to decline to follow any such direction if the Guarantee Trustee shall determine that the actions so directed would be unjustly prejudicial to the Holders not taking part in such direction or if the Guarantee Trustee being advised by legal counsel determines that the action or proceeding so directed may not lawfully be taken or if the Guarantee Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors or trustees and/or Responsible Officers shall determine that the action or proceeding so directed would involve the Guarantee Trustee in personal liability.

     (b) Any Holder of the Capital Securities may institute a legal proceeding directly against the Guarantor to enforce the Guarantee Trustee’s rights under this Guarantee, without first instituting a legal proceeding against the Issuer, the Guarantee Trustee or any other Person. The Guarantor waives any right or remedy to require that any such action be brought first against the Issuer, the Guarantee Trustee or any other Person before so proceeding directly against the Guarantor.

	SECTION 4.5     Guarantee of Payment.

     This Guarantee creates a guarantee of payment and not of collection.

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	SECTION 4.6     Subrogation.

     The Guarantor shall be subrogated to all (if any) rights of the Holders of the Capital Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by applicable provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to any such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders.

	SECTION 4.7     Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer with respect to the Capital Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee notwithstanding the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 4.3 hereof.

	SECTION 4.8     Enforcement.

     A Beneficiary may enforce the Obligations of the Guarantor contained in Section 4.1(b) directly against the Guarantor, and the Guarantor waives any right or remedy to require that any action be brought against the Issuer or any other person or entity before proceeding against the Guarantor.

     The Guarantor shall be subrogated to all rights (if any) of any Beneficiary against the Issuer in respect of any amounts paid to the Beneficiaries by the Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by applicable provisions of law) be entitled to enforce or exercise any rights that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Beneficiaries and to pay over such amount to the Beneficiaries.

	ARTICLE V

LIMITATION OF TRANSACTIONS; SUBORDINATION

	SECTION 5.1     Limitation of Transactions.

     So long as any of the Capital Securities remain outstanding, if (a) there shall have occurred and be continuing an Event of Default or (b) Debenture Issuer shall have selected an Extension Period as provided in the Indenture and such period, or any extension thereof, shall have commenced and be continuing, then the Guarantor may not (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with

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respect to, any of the Guarantor’s capital stock, (y) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Guarantor that rank in all respects pari passu with or junior in interest to the Debentures or (z) make any payment under any guarantees of the Guarantor that rank in all respects pari passu with or junior in interest to this Guarantee (other than (i) repurchases, redemptions or other acquisitions of shares of capital stock of the Guarantor (A) in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors, or consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the Guarantor (or securities convertible into or exercisable for such capital stock), as consideration in an acquisition transaction entered into prior to the occurrence of an Event of Default or the applicable Extension Period, (ii) as a result of any exchange or conversion of any class or series of the Guarantor’s capital stock (or any capital stock of a subsidiary of the Guarantor) for any class or series of the Guarantor’s capital stock or of any class or series of the Guarantor’s indebtedness for any class or series of the Guarantor’s capital stock, (iii) the purchase of fractional interests in shares of the Guarantor’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (iv) any declaration of a dividend in connection with any stockholder’s rights plan, or the issuance of rights, stock or other property under any stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto, or (v) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior in interest to such stock).

	SECTION 5.2    Ranking.

     This Guarantee will constitute an unsecured obligation of the Guarantor and will rank subordinate and junior in right of payment to all present and future Senior Indebtedness (as defined in the Indenture) of the Guarantor. By their acceptance thereof, each Holder of the Capital Securities agrees to the foregoing provisions of this Guarantee and the other terms set forth herein.

	ARTICLE VI

TERMINATION

	SECTION 6.1     Termination.

     This Guarantee shall terminate as to the Capital Securities (i) upon full payment of the price payable upon redemption of all of the Capital Securities then outstanding, (ii) upon the distribution of all of the Debentures to the Holders of all of the Capital Securities or (iii) upon full payment of the amounts payable in accordance with the Declaration upon dissolution of the Issuer. This Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of the Capital Securities must restore payment of any sums paid under the Capital Securities or under this Guarantee.

	Guarantee – Series B

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	     ARTICLE VII

INDEMNIFICATION

	SECTION 7.1     Exculpation.

     (a) No Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Guarantor or any Covered Person for any loss, damage or claim incurred by reason of any act or omission of such Indemnified Person in good faith in accordance with this Guarantee and in a manner that such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Guarantee or by law, except that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such Indemnified Person’s negligence, willful misconduct or bad faith with respect to such acts or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Issuer or the Guarantor and upon such information, opinions, reports or statements presented to the Issuer or the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and who, if selected by such Indemnified Person, has been selected with reasonable care by such Indemnified Person, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of the Capital Securities might properly be paid.

	SECTION 7.2     Indemnification.

     (a) The Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified Person harmless against, any and all loss, liability, damage, claim or expense incurred without negligence, willful misconduct or bad faith on the part of the Indemnified Person, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including but not limited to the costs and expenses (including reasonable legal fees and expenses) of the Indemnified Person defending itself against, or investigating, any claim or liability in connection with the exercise or performance of any of the Indemnified Person’s powers or duties hereunder. The obligation to indemnify as set forth in this Section 7.2 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee.

     (b) Promptly after receipt by an Indemnified Person under this Section 7.2 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Guarantor under this Section 7.2, notify the Guarantor in writing of the commencement thereof; but the failure so to notify the Guarantor (i) will not relieve the Guarantor from liability under paragraph (a) above unless and to the extent that the Guarantor did not otherwise learn of such action and such failure results in the forfeiture by the Guarantor of substantial rights and defenses and (ii) will not, in any event, relieve the Guarantor from any obligations to any Indemnified Person other than the indemnification obligation provided in paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the

	Guarantee – Series B

	14

Guarantor’s choice at the Guarantor’s expense to represent the Indemnified Person in any action for which indemnification is sought (in which case the Guarantor shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person or Persons except as set forth below); provided, however, that such counsel shall be satisfactory to the Indemnified Person. Notwithstanding the Guarantor’s election to appoint counsel to represent the Indemnified Person in any action, the Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Guarantor shall bear the reasonable fees, costs and expenses of such separate counsel, if (i) the use of counsel chosen by the Guarantor to represent the Indemnified Person would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Guarantor and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Persons which are different from or additional to those available to the Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of the institution of such action or (iv) the Guarantor shall authorize the Indemnified Person to employ separate counsel at the expense of the Guarantor. The Guarantor will not, without the prior written consent of the Indemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Persons are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action, suit or proceeding.

	SECTION 7.3     Compensation; Reimbursement of Expenses.

     The Guarantor agrees:

     (a) to pay to the Guarantee Trustee from time to time such compensation for all services rendered by it hereunder as the parties shall agree to from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and

     (b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and advances incurred or made by it in accordance with any provision of this Guarantee (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to the negligence, willful misconduct or bad faith of the Guarantee Trustee.

     The provisions of this Section 7.3 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee.

	Guarantee – Series B

	15

	   ARTICLE VIII

MISCELLANEOUS

	SECTION 8.1   Successors and Assigns.

     All guarantees and agreements contained in this Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Capital Securities then outstanding. Except in connection with any merger or consolidation of the Guarantor with or into another entity or any sale, transfer or lease of the Guarantor’s assets to another entity, in each case to the extent permitted under the Indenture, the Guarantor may not assign its rights or delegate its obligations under this Guarantee without the prior approval of the Holders of a Majority in liquidation amount of the Capital Securities.

	SECTION 8.2     Amendments.

     Except with respect to any changes that do not adversely affect the powers, preferences, rights or interests of Holders of the Capital Securities in any material respect (in which case no approval of Holders will be required), this Guarantee may be amended only with the prior approval of the Holders of a Majority in liquidation amount of the Capital Securities. The provisions of the Declaration with respect to amendments thereof shall apply equally with respect to amendments of the Guarantee.

	SECTION 8.3     Notices.

     All notices provided for in this Guarantee shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied or mailed by first class mail, as follows:

     (a) If given to the Guarantee Trustee, at the Guarantee Trustee's mailing address set forth below (or such other address as the Guarantee Trustee may give notice of to the Holders of the Capital Securities):

	 	LaSalle Bank National Association

135 S. LaSalle Street, Suite 1511

Chicago, Illinois 60603

Attention: CDO Trust Services Group

Umpqua Master Trust I

Telecopy: (312) 904-0524

Telephone: (312) 904-0283

     (b) If given to the Guarantor, at the Guarantor's mailing address set forth below (or such other address as the Guarantor may give notice of to the Holders of the Capital Securities and to the Guarantee Trustee):

	Guarantee – Series B

	16

	 	Umpqua Holdings Corporation

One SW Columbia Street, Suite 1200

Portland, Oregon 97258

Attention: Ron Farnsworth

Telecopy: (503) 727-4233

Telephone: (503) 727-4108

     (a) If given to any Holder of the Capital Securities, at the address set forth on the books and records of the Issuer.

     All such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver.

	SECTION 8.4     Benefit.

     This Guarantee is solely for the benefit of the Holders of the Capital Securities and, subject to Section 2.1(a), is not separately transferable from the Capital Securities.

	SECTION 8.5     Governing Law.

     THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

	SECTION 8.6     Counterparts.

     This Guarantee may contain more than one counterpart of the signature page and this Guarantee may be executed by the affixing of the signature of the Guarantor and the Guarantee Trustee to any of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature page.

	*       *      *

 

	Guarantee – Series B

	17

THIS GUARANTEE is executed as of the day and year first above written.

	 	UMPQUA HOLDINGS CORPORATION, as 

GuarantorBy:________________________________

Name:______________________________

Title:_______________________________

 

	 	LASALLE BANK NATIONAL 

		ASSOCIATION, as Guarantee TrusteeBy:________________________________

Name:______________________________

Title:_______________________________

[TPW: NYLEGAL:710707.2] 21095-00004 08/31/2007 01:51 PM

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