Exhibit 4(b)17
This Amendment no. 3 (the “Amendment”)
to the Restructuring Agreement is dated as of the 30 day of June 2009 between:
| 1. |
Lumenis
Ltd., a company incorporated under the laws of Israel, whose registered
office is at Industrial Zone, Yoqneam, Israel (the “Borrower”);
and |
| 2. |
Bank
Hapoalim B.M. (the “Bank”). |
WHEREAS:
| |
A. |
On
29th September 2006, the Borrower and the Bank entered into a
Restructuring Agreement (the “Restructuring Agreement”)
pursuant to which the Borrower and the Bank agreed to restructure the
Prior Outstanding Debt of the Borrower and subsidiaries of the
Borrower into a single Loan (as defined therein) and to set out the
terms and conditions applicable with respect to the Loan; |
| |
C. |
OnJune
25, 2008, the Borrower and the Bank entered into Amendment No. 2 to
the Restructuring Agreement, which amendment was itself amended on
November 10, 2008 and on February 22, 2009 (“Amendment No. 2”);
and |
THEREFORE, IT IS HEREBY
AGREED AS FOLLOWS:
| 1. |
DEFINITIONS
AND INTERPRETATION |
| |
1.1. |
In
this Amendment, capitalised terms that are used but not defined herein shall
have the meanings ascribed to such terms in the Restructuring Agreement and in
Amendment No. 2. |
| |
1.2. |
“Amendment
Closing Date” shall mean the date hereof, provided the Bank is
satisfied that all the conditions precedent referred to in Section 3 below
shall have been fulfilled in form and substance reasonably satisfactory to the
Bank on or prior to the Amendment Closing Date, or waived by the Bank (the
Banks being under no obligation whatsoever to grant any waiver); |
| |
1.3. |
Words
and defined terms denoting the singular number include the plural and vice
versa and the use of any gender shall be applicable to all genders. |
| |
1.4. |
The
paragraph headings are for the sake of convenience only and shall not affect
the interpretation of this Amendment. |
| |
1.5. |
The
recitals, schedules, appendices, annexes and exhibits hereto form an integral
part of this Amendment. |
| 2. |
AMENDMENT
OF THE RESTRUCTURING AGREEMENT AND AMENDMENT NO. 2 |
| |
2.1. |
With
effect from the Amendment Closing Date, the Restructuring Agreement (including
the Schedules attached thereto) as well as the applicable sections of Amendment
No. 2 shall automatically be amended as set forth herein. For the avoidance of
doubt, all sections of the Restructuring Agreement and Amendment No. 2 not
amended, deleted or replaced under this Amendment shall remain unamended and in
full effect. By delivery to the Company of the Bank’s counter signature on
this Amendment, the Bank shall be deemed to confirm that the conditions
precedent referred to in Section 3 below shall have been fulfilled or waived,
to its satisfaction. |
| |
2.2. |
The
following amendments shall be made to the Restructuring Agreement: |
| |
2.2.1.
Section
1.1.20 shall be revised to include new Section 14.15B. |
|
2.2.2.
Section
1.1.23 shall be deleted and replaced in its entirety with the following: |
| |
““Final
Maturity Date” means June 30, 2017.” |
| |
2.2.3.
A
new Section 1.1.63 shall be added as follows: |
| |
“"2009
Write Offs” means each of the write off amounts set forth in the repayment and
write off schedule set forth in Section 4.1.4.” |
| |
2.2.4.
A
new Section 1.1.61A will be added as follows: |
| |
““Type
A Installments” mean each of the installments set forth in the following
schedule under the heading “Type A Installments”": |
| |
Type A Installments, Original Payment Dates and Interest Rate Schedule
|
| |
|
Type A Installments
|
Type A Original Payment Date
|
Type A Interest Rate
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
1. |
|
|
$ | 10,000,000 |
|
June 30, 2009 |
|
|
| 3 |
% |
| |
2. | | |
$ | 5,133,040 |
|
December 31, 2009 | | |
| 1.5 |
% |
| |
3. | | |
$ | 5,133,040 |
|
March 31, 2010 | | |
| 1.5 |
% |
| |
4. | | |
$ | 5,133,040 |
|
June 30, 2010 | | |
| 1.5 |
% |
| |
5. | | |
$ | 10,000,000 |
|
June 30, 2010 | | |
| 3 |
% |
| |
6. | | |
$ | 5,133,040 |
|
September 30, 2010 | | |
| 1.5 |
% |
| |
7. | | |
$ | 5,133,040 |
|
December 31, 2010 | | |
| 1.5 |
% |
| |
8. | | |
$ | 5,133,040 |
|
March 31, 2011 | | |
| 1.5 |
% |
| |
9. | | |
$ | 5,133,040 |
|
June 30, 2011 | | |
| 1.5 |
% |
| |
10. | | |
$ | 10,000,000 |
|
June 30, 2011 | | |
| 3 |
% |
| |
11. | | |
$ | 5,133,040 |
|
September 30, 2011 | | |
| 1.5 |
% |
| |
12. | | |
$ | 5,133,040 |
|
December 31, 2011 | | |
| 1.5 |
% |
| |
13. | | |
$ | 5,133,040 |
|
March 31, 2012 | | |
| 1.5 |
% |
| |
14. | | |
$ | 5,133,040 |
|
June 30, 2012 | | |
| 1.5 |
% |
| |
15. | | |
$ | 5,133,040 |
|
September 30, 2012 | | |
| 1.5 |
% |
| |
16. | | |
$ | 5,133,040 |
|
December 31, 2012 | | |
| 1.5 |
% |
| |
17. | | |
$ | 5,133,040 |
|
March 31, 2013 | | |
| 1.5 |
% |
| |
18. | | |
$ | 5,133,040 |
|
June 30, 2013 | | |
| 1.5 |
% |
| |
19. | | |
$ | 5,133,077 |
|
September 30, 2013 | | |
| 1.5 |
% |
2
| |
2.2.5.
A
new Section 1.1.61B will be added as follows: |
| |
““Type
A Original Payment Date” means for each Type A Installment, the original payment
date set forth next to such Type A Installment in the schedule in Section 1.1.61A under
the heading “Type A Original Payment Date”. Nothing in Section 1.1.61A shall
imply that the payment of the Type A Installment is due on the Type A Original Payment
Date and this definition is used only in order to calculate interest payments under
Section 7.1.” |
| |
2.2.6.
A
new Section 1.1.61C will be added as follows: |
| |
““Type
A Interest Rate” means the interest rate per annum set forth next to the
applicable Type A Installment in the schedule in Section 1.1.61A under the heading “Type
A Interest Rate”.” |
| |
2.2.7.
A
new Section 1.1.61D will be added as follows: |
| |
““Type
B Installments” mean each of the installments set forth in the following
schedule under the heading “Type B Installments”:" |
| |
Type B Installments and Payment Dates Schedule
|
| |
|
Type B Installments
|
Type B Original Payment Date
|
Type B Revised Maturity Date
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
1. |
|
|
$ | 10,000,000 |
|
June 30, 2009 |
|
|
| June 30, 2012 |
|
| |
2. | | |
$ | 5,133,040 |
|
December 31, 2009 | | |
| June 30, 2013 |
|
| |
3. | | |
$ | 5,133,040 |
|
March 31, 2010 | | |
| June 30, 2013 |
|
| |
4. | | |
$ | 7,133,040 |
|
June 30, 2010 | | |
| June 30, 2014 |
|
| |
5. | | |
$ | 5,133,040 |
|
September 30, 2010 | | |
| June 30, 2014 |
|
| |
6. | | |
$ | 2,733,920 |
|
December 31, 2010 | | |
| June 30, 2014 |
|
| |
7. | | |
$ | 2,399,120 |
|
December 31, 2010 | | |
| June 30, 2015 |
|
| |
8. | | |
$ | 5,133,040 |
|
March 31, 2011 | | |
| June 30, 2015 |
|
| |
9. | | |
$ | 5,133,040 |
|
June 30, 2011 | | |
| June 30, 2015 |
|
| |
10. | | |
$ | 2,334,800 |
|
September 30, 2011 | | |
| June 30, 2015 |
|
| |
11. | | |
$ | 2,798,240 |
|
September 30, 2011 | | |
| June 30, 2016 |
|
| |
12. | | |
$ | 5,133,040 |
|
December 31, 2011 | | |
| June 30, 2016 |
|
| |
13. | | |
$ | 5,133,040 |
|
March 31, 2012 | | |
| June 30, 2016 |
|
| |
14. | | |
$ | 1,935,680 |
|
September 30, 2012 | | |
| June 30, 2016 |
|
| |
15. | | |
$ | 3,197,360 |
|
September 30, 2012 | | |
| June 30, 2017 |
|
| |
16. | | |
$ | 5,133,040 |
|
December 31, 2012 | | |
| June 30, 2017 |
|
| |
17. | | |
$ | 5,133,040 |
|
March 31, 2013 | | |
| June 30, 2017 |
|
| |
18. | | |
$ | 5,133,040 |
|
September 30, 2013 | | |
| June 30, 2017 |
|
| |
2.2.8.
A
new Section 1.1.61E will be added as follows: |
| |
““Type
B Original Payment Date” means for each Type B Installment, the applicable
original payment date set forth next to such Type B Installment in the schedule in
Section 1.1.61D under the heading “Type B Original Payment Date.” |
3
| |
2.2.9.
A
new Section 1.1.61F will be added as follows: |
| |
““Type
B Revised Maturity Date” means for each Type B Installment, the applicable
maturity date set forth next to such Type B Installment in the schedule in Section
1.1.61D under the heading “Type B Revised Maturity Date”. Nothing in Section
1.1.61D shall imply that the payment of the Type A Installment is due on the Type A
Original Payment Date and this definition is used only in order to calculate interest
payments under Section 7.1.” |
| |
2.2.10.
Sections
4.1.1, 4.1.2 and 4.1.3 of the Restructuring Agreement shall be deleted and
replaced in their entirety with the word “Reserved”. |
| |
2.2.11.
Section
4.1.4 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“The
Borrower shall repay the Loan (which as of June 28, 2009 consisted of an aggregate
principal amount of $130,878,677) to the Bank by way of consecutive yearly installments
(each a “Repayment Installment”), each to be paid in the amount
and on the date set forth in the repayment and write off schedule below under the
headings “Repayments” and “Date”, respectively, by deposit into the
Account, the first installment of which shall be paid on June 30, 2010 and the last such
installment to be paid on the Final Maturity Date. |
| |
The
Bank shall forgive an amount as set forth opposite the respective Repayment Installment
in the repayment and write off schedule below under the heading “Write Off” following the repayment of such Repayment Installment. Notwithstanding anything to the contrary in this Agreement, in the event that the Bank
declares the Loan immediately due and payable in accordance with Section 14.16 herein:
(i) the write off amounts set forth opposite such Repayment Installments, which were not
previously written off, shall not be written off, shall be deemed to be part of the
principal amount of the Loan to be paid by the Borrower immediately upon receipt of such
declaration and shall accrue Interest at a rate per annum determined by the Bank to be
LIBOR on the Interest Determination Date for such Interest Period plus 5.25% (five point
twenty five percent) per annum from the date the Bank declared the Loan immediately due
and payable in accordance with Section 14.16 until such time as it is paid in full; and
(ii) all amounts which were not previously written off shall not be written off and all
such amounts shall be deemed to be part of the Loan to be paid by the Borrower in
accordance with Section 14.16 herein. |
| |
|
Repayment and Write Off Schedule
|
| |
|
Repayment
|
Date
|
Write off
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
1. |
|
|
$ | 8,000,000 |
|
June 30, 2010 |
|
|
$ | 5,000,000 |
|
| |
2. | | |
$ | 10,000,000 |
|
June 30, 2011 | | |
$ | 6,250,000 |
|
| |
3. | | |
$ | 15,133,040 |
|
June 30, 2012 | | |
$ | 7,500,00 |
|
| |
4. | | |
$ | 15,399,120 |
|
June 30, 2013 | | |
| 0 |
|
| |
5. | | |
$ | 15,000,000 |
|
June 30, 2014 | | |
| 0 |
|
| |
6. | | |
$ | 15,000,000 |
|
June 30, 2015 | | |
| 0 |
|
| |
7. | | |
$ | 15,000,000 |
|
June 30, 2016 | | |
| 0 |
|
| |
8. | | |
$ | 18,596,517 |
|
June 30, 2017 | | |
| 0 |
|
| |
2.2.12.
Sections
4.1.5 and 4.1.6 of the Restructuring Agreement shall be deleted and replaced in
their entirety with the word “Reserved”. |
4
| |
2.2.13.
Section
6.1.2 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“Where
the Borrower has disposed of an asset of the Borrower (or a Material Subsidiary has
disposed of assets of such Material Subsidiary and distributed (or is permitted by law to
distribute) such proceeds to the Borrower), and the net proceeds to the Borrower of such
disposition are at least $10 million (the “Disposal Amount”), the Borrower
shall prepay (i) an amount equal to the Disposal Amount if the Total Debt to EBITDA ratio
(as defined in Schedule 13.25) as of the end of the fiscal quarter during which the
disposition was made is in excess than 4; or (ii) 50% of the Disposal Amount if the Total
Debt to EBITDA ratio (as defined in Schedule 13.25) is equal to or lower than 4; provided
that a disposal permitted under Sections 13.7.2 shall not be subject to this Section.” |
| |
2.2.14.
Section
7.1 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
7.1.1
The
rate of Interest applicable to the Loan in respect of each Interest Period for each Type
A Installments, taking into account only Type A Installments for which the Type A
Original Payment Date is subsequent to or on the same date as the Interest Payment Date
of such Interest Period, shall be the sum of (a) the rate per annum determined by the
Bank to be LIBOR on the Interest Determination Date for such Interest Period; and (b) the
Type A Interest Rate. |
|
7.1.2.
The
rate of Interest applicable to the Loan in respect of each Interest Period for
Type B Installments, taking into account only Type B Installments for which the
Type B Original Payment Date precedes the Interest Payment Date of such
Interest Period and for which the Type B Revised Maturity Date has not occurred
or has occurred on such Interest Payment Date, shall be the sum of (a) the rate
per annum determined by the Bank to be LIBOR on the Interest Determination Date
for such Interest Period; and (b) 5.25% (five point twenty five percent) per
annum. |
| |
A
table setting forth the outstanding balance of the Type A Installments and Type B
Installments on which the applicable Interest applies is attached as Schedule 7 hereto.
All definitions in Sections 1.1.61A-F are used only in order to calculate interest
payments under Section 7.1 and shall not imply any repayment obligation of any kind or
nature. |
| |
Notwithstanding
the above, and subject to Section 4.1.4, no Interest shall accrue or be payable with
respect to the 2009 Write Offs.” |
| |
2.2.15.
Section
8.1.1 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“all
external costs and expenses (including legal fees for external counsel and reasonable
out-of-pocket expenses) incurred by the Bank in connection with: (i) the performance of
all legal due diligence inquiries as the Bank has required or shall require with respect
to the transactions in connection with this Agreement, any amendments thereto and the
Security Documents; or (ii) the negotiation, preparation and execution of this Agreement,
any amendments thereto and the Security Documents and the completion of the transactions
contemplated therein. |
5
|
2.2.16.
Section
13.5.1 of the Restructuring Agreement shall be replaced in its entirety with
the following: |
| |
“The
Borrower will not make or resolve to make any Distributions prior to the date that the
aggregate outstanding amount of the Loan (including principal and accrued and unpaid
interest thereon) is equal to or less than $40 million. |
| |
The
Borrower will not, after the date that the aggregate outstanding amount of the Loan
(including principal and accrued and unpaid interest thereon) is equal to or less than
$40 million make or resolve to make any Distribution other than from the profits
available for Distribution from the ongoing operations of the Borrower, provided that no
Event of Default shall have occurred and be continuing nor shall it result from the
proposed Distribution.” |
| |
2.2.17.
The
following paragraph shall be added at the end of Section 13.6 of the
Restructuring Agreement: |
| |
“The
parties will work together to reach a reasonable agreement, by no later than July 31,
2009, on which New Securities the Borrower should further pursue, as well as non-Israeli
opinions (other than U.S. Opinions (as defined below)), while exercising reasonable
commercial efforts and subject to any local legal restrictions. No later than July 31,
2009, the Borrower shall provide the Bank with (i) an opinion of United States counsel,
addressed to the Bank confirming that the Existing Securities granted by United States
companies in the Group secure the transactions contemplated by the Restructuring
Agreement, and (ii) an opinion of United States counsel addressed to the Bank confirming
that the New Securities granted by United States companies in the Group secure the
transactions contemplated by the Restructuring Agreement, (together the “U.S.
Opinions”), in a form to be agreed by the parties”. |
| |
2.2.18.
Section
13.25 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following, which, for the sake of clarity, as amended shall
also apply with respect to the Quarter ending on June 30, 2009: |
| |
For
the period commencing on the Amendment Closing Date (as such term is defined in Amendment
no. 3 to this Agreement) and ending on June 30, 2011, the Group shall have available and
accessible cash reserves in an aggregate amount of at least $20 million Dollars, on a
consolidated basis. The Borrower shall provide the Bank following the end of each Quarter
with a certificate executed by the Chief Financial Officer of the Borrower certifying the
available and accessible cash reserves of the Group during such Quarter and as of the
date of such certificate are at least equal to $20 million Dollars, on a consolidated
basis. |
| |
The
Borrower and the Group shall, on a consolidated basis, with effect from July 1, 2011,
comply with the Financial Ratios set out in Schedule 13.25.” |
| |
2.2.19.
Section
14.3.2 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“Failure
of the Borrower and its Subsidiaries to comply with Section 13.25 and failure to meet the
conditions for curing such breach as set forth in Section 13.25.” |
6
| |
2.2.20.
A
new Section 14.15B shall be added as follows: |
| |
There
is any breach of the provisions of Amendment no. 3 to the Restructuring Agreement that
constitutes an Event of Default under Clauses 14.2 and 14.3 above (as amended by
Amendment no. 3 to the Restructuring Agreement).” |
| |
2.3. |
The
following amendments shall be made to amendment No. 2: |
| |
2.3.1.
The
number $4,000,000 in the preamble of Section 3 shall be replaced with the
phrase “up to $6,000,000" and the following proviso shall be added: |
| |
“provided,
that if the earliest event to occur is any of the events set forth in Section 3(a)(i) or
(ii) below, and a later event of the events listed below occurs during the time the Loan
is outstanding, then upon such later event the Borrower shall pay to the Bank an amount
(bearing no interest or premium) equal to the difference between the amount previously
paid under this Section and $6,000,000.” |
| |
2.3.2.
Section
3(a) shall be replaced in its entirety with the following: |
| |
“the
EBITDA (as defined in Annex A) of the Borrower for any year shall exceed $45,000,000;
provided that (i) if the EBITDA for any year exceeds $25,000,000 but is equal to or lower
than $35,000,000 then the Borrower shall only be obligated to pay to the Bank pursuant to
this Section, in addition to the Interest, an amount equal to $2,000,000; and (ii) if the
EBITDA for any year exceeds $35,000,000 but is equal to or lower than $45,000,000 then
the Borrower shall only be obligated to pay to the Bank pursuant to this Section, in
addition to the Interest, an amount equal to $4,000,000 (or $2,000,000 if the event set
forth in sub-section (i) above occurred earlier than the event set forth in this
sub-section (ii)).” |
| |
2.4. |
Section
4 to the Cash Fee- Ltd. Stock Side Letter dated November 19, 2003 issued by the
Borrower in favor of the Bank (the “Letter”) shall be replaced
in its entirety with the following: |
| |
“This
agreement shall terminate upon the later of March 31, 2017 or repayment of all amounts
outstanding under the Restructuring Agreement between Ltd. and the Bank, dated September
30, 2006 as amended, in full.” |
| |
2.5. |
Section
5.3 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“The
Borrower shall not prepay any part of the Loan except in accordance with the aforegoing
in this clause 5, clause 6 below, or as expressly provided elsewhere in this Agreement.” |
| |
2.6. |
Section
5.8 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“Any
prepayment under this Agreement shall be applied to the repayment installments in respect
of the Loan in the same manner as set forth in Section 6.5.” |
7
| |
2.7. |
The
last paragraph of Section 5 of the Restructuring Agreement shall be deleted and
replaced in its entirety with the following: |
| |
“For
the sake of clarity, the provisions of Clause 5.5 shall not apply to any repayments or to
prepayments made pursuant to this Agreement (but other than pursuant to Clause 5.1).” |
| |
2.8. |
Section
6.5 of the Restructuring Agreement shall be deleted and replaced in its
entirety with the following: |
| |
“Any
prepayment under this Agreement shall be applied to the repayment installments in respect
of the Loan in reverse order (that is, shall be deemed first to constitute the last
repayment installment, then the second last, and so on and so forth), and such prepaid
installments shall be applied for Interest calculation purposes in reverse order as well
(that is, shall be deemed first to constitute the last repayment installment (whether
Type A Installment or Type B Installment, as applicable) pursuant to latest date of Type
A Original Payment Date or Original Type B Revised Maturity Date, then the second to
last, and so on and so forth).” |
| |
This
Amendment is subject to the conditions precedent that the Bank shall have received, by no
later than the Amendment Closing Date, all of the following documents, matters and things
in form and substance satisfactory to the Bank: |
| |
3.1. |
The
Borrower shall present to the Bank a certificate by the Chief Executive Officer
and the Chairman of the Board of Directors of the Borrower, confirming that (i)
an amount of at least $15 million Dollars in cash has been invested in equity
of the Borrower; and (ii) LM Partners L.P. (together with any person or entity
that qualifies as a Permitted Transferee) holds more than 29,844,871 shares of
the Borrower; and (iii) Harel Beit On is serving on the Board of Directors of
the Borrower and, solely in its capacity as a director, is, in addition to
participation in board meetings, involved in assisting or guiding the
management of the Borrower. |
| |
3.2. |
The
Borrower shall have executed and delivered to the Bank an amended and restated
warrant no. 5 in the form set forth as Exhibit A-1 attached
hereto providing for the purchase of 9,411,300 ordinary shares of the Borrower
with an exercise price of US$ 1.00 and an expiration date of June 30, 2014. |
| |
3.3. |
The
Borrower shall have executed and delivered to the Bank an amended and restated
warrant no. 6 in the form set forth as Exhibit A-2 attached
hereto providing the purchase of 2,500,000 ordinary shares of the Borrower with
an exercise price of US$ 1.40 and an expiration date of June 30, 2014. |
| |
3.4. |
The
Borrower shall provide the Bank with an opinion of Israeli counsel addressed to
the Bank in the form set forth as Exhibit B attached
hereto. |
| |
3.5. |
All
of the Borrower’s representations and warranties in Clause 12 (other then
Clause 12.7) of the Restructuring Agreement and in Article 3 of the Share
Purchase Agreements between the Borrower and certain Investors dated June 21,
2009 (including any disclosures made in the disclosure schedules to such
agreements) shall be true and correct in all material respects as of the
Amendment Closing Date, as if made on the Amendment Closing Date (except to the
extent that any such representation or warranty is expressly made as of a
specified date, in which case as of such specified date). The Borrower shall
provide the Bank with a certificate signed by the Chief Executive Officer of
the Company certifying that such of the Borrower’s representations and
warranties are true and correct in all material respects as of the Amendment
Closing Date, as if made on the Amendment Closing Date. |
8
| |
3.6. |
The
Borrower shall have paid all accrued and unpaid Interest, including Interest to
be paid on the Interest Period Date of June 30, 2009 in the amount of US$
893,200.05. |
| |
3.7. |
The
Borrower shall provide the bank with copies of all requisite corporate
approvals, approving the execution, delivery and performance of this Amendment
and all agreements and acts to be performed by the Borrower under, or otherwise
in connection with, this Amendment. |
| |
4.1. |
The
Company shall pay the costs and expenses of the Bank required under Section
2.2.15 hereof, including the costs of the Bank’s legal advisors and all
legal fees incurred by such advisors, within 15 days of the date of being
requested to pay such costs and expenses, following which the Bank’s legal
advisors shall issue a tax invoice to the Bank. |
| |
4.2. |
This
Amendment may be executed in any number of counterparts (including by facsimile
or by electronic delivery in .pdf format or the like) and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument sufficient to bind the parties as an original. |
| |
4.3. |
This
Amendment shall be construed in accordance with the laws of the State of
Israel. The exclusive place of jurisdiction for the purpose of this Amendment
is hereby established as the competent court of law in Israel situated in Tel
Aviv-Jaffa. |
| |
4.4. |
If
a provision of this Amendment is or becomes illegal, invalid or unenforceable
in any jurisdiction, that shall not affect the validity or enforceability in
that jurisdiction of any other provision hereof or the validity or
enforceability in other jurisdictions of that or any other provision hereof. |
| |
4.5. |
Where
provisions of any applicable law resulting in such illegality, invalidity or
unenforceability may be waived, they are hereby waived by each party to the
full extent permitted so that this Amendment shall be deemed valid and binding
agreements, enforceable in accordance with its terms. |
| |
4.6. |
Nothing
in this Amendment shall create or confer upon any person or entity, other than
the parties hereto or their respective successors and permitted assigns, any
rights, remedies, obligations or liabilities. |
| |
4.7. |
With
effect from the Amendment Closing Date and upon all activities to be performed
in accordance with Section 3 herein to be completed (or waived, the Banks being
under no obligation whatsoever to grant any waiver), the Restructuring
Agreement, including all Schedules and exhibits attached thereto, Amendment No.
2 and the Letter shall automatically be amended so that each shall be read and
construed for all purposes as set forth hereto. Other than as expressly set
forth herein, the provisions of the Restructuring Agreement, all schedules and
exhibits thereto, Amendment No. 2 and the Letter shall remain unchanged and in
full force and effect in accordance with the terms thereof. |
9
IN WITNESS WHEREOF, the parties have
signed this Amendment on the date first mentioned above.
By: /s/ Xxx Xxxx
——————————————
Xxx Xxxx
Chief Executive Officer |
By: /s/ Xxxxxx Xxxxxxxxx
——————————————
Xxxxxx Xxxxxxxxx
Chief Financial Officer |
By: /s/ Xxxxxx Xxxxx /s/ Xxx Xxxxxxxx
——————————————
|
Bank Hapoalim B.M
Head Office |
|
10
Schedule 13.25
To:
Bank Hapoalim B.M. |
June 30, 2009
|
Re: Financial Covenants
Reference
is made to the Restructuring Agreement by and between Lumenis Ltd. (the
“Borrower”) and Bank Hapoalim B.M. (the “Bank”) dated
September 30, 2006, as amended (the “Restructuring Agreement”), to which
this document is attached as a schedule and forms an integral part thereof.
WHEREAS
the Borrower has received and/or may receive from time to time from the Bank and other
third parties have received and/or shall receive from time to time from the Bank against a
guarantee or indemnification from the Borrower, credit, documentary credit, various loans,
overdrafts in a current account, in a current loan account or any other account, various
letters of indemnity and guarantees in favour of the Bank and/or third parties or others
at our request or at the request of third parties, discounted notes, grants or extensions
and various banking waivers and other various banking services (each separately and
together – the “Banking Services”), under the conditions agreed upon
or that shall be agreed upon from time to time with respect to each Banking Service.
WHEREAS
the Borrower executed a letter dated June 25, 2008 entitled Financial Covenants (the
“Financial Covenants Letter”), and this letter shall replace such
Financial Covenants Letter in its entirety.
NOW THEREFORE, the Borrower hereby
declares and undertakes that as long as it owes certain moneys to the Bank with respect
to the Banking Services under the terms and conditions agreed upon from time to time or
that shall be agreed upon with respect to each Banking Service, the Borrower shall comply
with the following:
1.1
The Borrower covenants and undertakes that it will comply with the following financial
ratios based on its Financial Statements that have been furnished to the Bank in
accordance with Section 13.1 of the Restructuring Agreement, at all times and from time to
time as of (and including) the Quarter ending September 30, 2011:
| |
a) |
The
ratio of Total Debt to EBITDA shall not exceed: |
| |
(i) |
6.5
(six point five) as of the end of each Quarter commencing as of the third
Quarter of 2011 and ending on the first Quarter of 2012 (inclusive); |
| |
(ii) |
5
(five) as of the end of each Quarter commencing as of the second Quarter of
2012 and ending on the first Quarter of 2013 (inclusive); |
| |
(iii) |
4
(four) as of the end of each Quarter commencing as of the second Quarter of
2013 and ending on the first Quarter of 2014 (inclusive); and |
| |
(iv) |
3.5
(three point five) as of the end of each Quarter commencing as of the second
Quarter of 2014 until the Loan is repaid in full. |
| |
b) |
The
Interest Coverage Ratio shall be: |
| |
(i) |
at
least 1 (one) as of the end of each Quarter commencing as of the third Quarter
of 2009 and ending on the first Quarter of 2012 (inclusive); and |
| |
(ii) |
at
least 2 (two) as of the end of each Quarter commencing as of the second Quarter
of 2012 until the Loan is repaid in full. |
2.1
Defined terms not otherwise defined herein shall have the meaning ascribed to them in the
Restructuring Agreement.
2.2
“EBITDA” shall mean
for
any Accounting Period the sum of the following:
| |
(i) |
the
Operating Income of the Borrower in the ordinary course of business
(excluding (i) income and/or, costs and payments associated with any
lawsuits commenced prior to December 5, 2006 and up to a maximum of $1
million in Fiscal Years 2011-2013 only, and (ii) non-recurring items); and |
| |
(ii) |
any
amortisation (including of intangible assets and intellectual property) ,
impairment and depreciation (such as depreciation of fixed assets), and
excluding expense related to options or warrants pursuant to SFAS 123(R)
reflected in the Financial Statements of the Borrower. |
The
EBITDA that shall be used for purposes of this Letter shall be the sum of the EBITDA of
the relevant Quarter and the EBITDA of the 3 preceding Quarters.
All
items referred to above shall be taken from the Borrower’s relevant consolidated
Financial Statements.
2.3
“Interest Coverage Ratio” means the product of the Borrower’s
Operating Income excluding (i) income and/or, costs and payments associated with any
lawsuits commenced prior to December 5, 2006 and up to a maximum of $1 million in Fiscal
Years 2011-2013 only, (ii) non-recurring items and (iii) expense related to options or
warrants pursuant to SFAS 123(R) divided by the Borrower’s interest expenses,
each during the relevant Accounting Period.
The
Operating Income that shall be used for purposes of this Letter shall be the average of
the Operating Income of the relevant Quarter and the Operating Income of the 3 preceding
Quarters.
2.4
"Total Debt" means the sum of:
| |
(a) |
the
Total Outstandings (other than all write offs, whether previously wrote off
or scheduled to be wrote off, under the Restructuring Agreement),
assuming no Event of Default; and |
| |
(b) |
the
balance of all Financial Indebtedness and any interest or other amounts
payable on account of such Financial Indebtedness. |
Save as expressly stated otherwise,
each of “EBITDA”, “Interest Coverage Ratio” and “Operating
Income” for any period, shall be determined from the consolidated quarterly and
annual Financial Statements, or, if not included in the Financial Statements, shall be
determined from a certificate signed by the Auditors delivered to the Bank together with
the Financial Statements. “Total Debt” for any period shall be determined as set
forth in Schedule 7 of the Restructuring Agreement with respect to that period.
3.
Any breach of any financial ratio set forth in Section 1 hereof shall be an
Event of Default under the Restructuring Agreement.
4.
In each event that the Borrower breaches or does not comply with any of its
obligations hereunder, the Bank shall have the right to demand immediate
repayment of all the amounts due with respect to all or a part of the Banking
Services retained by the Borrower and make use, at its discretion, of any and
all the measures available to it in order to ensure full repayment of all
amounts due to it.
|
|
Sincerely,
/s/ Xxx Xxxx /s/ Xxxxxx Xxxxxxxxx
——————————————
Lumenis Ltd. |
