Exhibit 4.(b)15
This amendment no. 2 (the
"Amendment") to the Restructuring Agreement is dated the 25 day of June
2008 (the "Effective Date") 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. |
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. |
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1.2 |
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. |
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1.3 |
The
paragraph headings are for the sake of convenience only and shall not affect the
interpretation of this Amendment. |
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1.4 |
The recitals, schedules, appendices, annexes and exhibits hereto form an integral part of
this Amendment. |
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2.1 |
Section
1.1.20 shall be revised to include new section 14.15A. |
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2.2 |
Sections
4.1.1, 4.1.2 and 4.1.3 of the Restructuring Agreement shall be deleted and
replaced with the following: |
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“4.1.1 |
The
Borrower shall repay to the Bank the Loan minus: (i) the Second Repayment Amount; (ii)
the Second Write Off; (iii) the Third Repayment Amount; (iv) the Third Write Off; (v) the
Fourth Repayment Amount; (vi) the Fourth Write Off; (vii) the Fifth Repayment Amount;
(viii) the Fifth Write Off; (ix) the Sixth Repayment Amount; and (x) the Sixth Write Off
(all as defined below) by way of 16 (sixteen) equal consecutive quarterly instalments,
payable on the last Business Day of each Quarter, the first such instalment to be paid on
December 31, 2009 and the last such instalment to be paid on the Final Maturity Date. |
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4.1.2 |
No
later than 30 June 2008, the following actions shall occur or be deemed to have occurred: |
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(a) |
the
Borrower shall pay the Bank a sum of $5 million Dollars (the “Second
Repayment Amount”) to be deposited in the Account in repayment of the
Loan; |
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(b) |
The
Bank shall issue the Borrower (i) a sum of $30 million Dollars (the “New
Loan A”), and (ii) a sum of $5 million Dollars (the “New Loan
B”) and the Bank shall deposit such amounts in the Account in
repayment of the Loan. The Borrower hereby gives the Bank irrevocable consent
to take any and all actions necessary to fulfill the intent of the foregoing; |
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(c) |
The
Bank shall issue the Borrower (i) a sum of $18.75 million Dollars (“Credit
A”), and (ii) a sum of $3.125 million Dollars (“Credit B”) and
the Bank shall deposit such amounts in the Account in repayment of the Loan.
The Borrower hereby gives the Bank irrevocable consent to take any and all
actions necessary to fulfill the intent of the foregoing; and |
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(d) |
the
Bank shall forgive $3.125 million Dollars of the Loan (the “Second
Write Off”). |
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4.1.3 |
No
later than 31 December 2008, the following actions shall occur or be deemed to have
occurred: |
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(a) |
the
Borrower shall pay the Bank a sum of $5 million Dollars (the “Third
Repayment Amount”) to be deposited in the Account in repayment of the
New Loan B; and |
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(b) |
the
Bank shall forgive $3.125 million Dollars of Credit B (the “Third Write
Off”). |
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4.1.4 |
No
later than 30 June 2009, the following actions shall occur or be deemed to have occurred: |
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(a) |
the
Borrower shall pay the Bank a sum of $10 million Dollars (the “Fourth Repayment
Amount”) to be deposited in the Account in repayment of the New Loan
A; and |
2
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(b) |
the
Bank shall forgive $6.25 million Dollars of Credit A (the “Fourth Write
Off”). |
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4.1.5 |
No
later than 30 June 2010, the following actions shall occur or be deemed to have occurred: |
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(a) |
the
Borrower shall, in addition to any instalment due under Section 4.1.1 above,
pay the Bank a sum of $10 million Dollars (the “Fifth Repayment
Amount”) to be deposited in the Account in repayment of the New Loan
A; and |
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(b) |
the
Bank shall forgive $6.25 million Dollars of Credit A (the “Fifth Write
Off”). |
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4.1.6 |
No
later than 30 June 2011, the following actions shall occur or be deemed to have occurred: |
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(a) |
the
Borrower shall, in addition to any instalment due under Section 4.1.1 above,
pay the Bank a sum of $10 million Dollars (the “Sixth Repayment
Amount”) to be deposited in the Account in repayment of the New Loan
A; and |
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(b) |
the
Bank shall forgive $6.25 million Dollars of Credit A (the “Sixth Write
Off”).” |
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(a) |
after
the words “1.5% (one point five percent) per annum” in the
fourth line, the following shall be added “(which commencing on
the date of Amendment No. 2 to the Restructuring Agreement, shall
apply also to the New Loan B), or, commencing on the date of
Amendment No. 2 to the Restructuring Agreement, on the New Loan A
with respect to the Fourth Repayment Amount, the Fifth Repayment
Amount and the Sixth Repayment, 3% (three percent) per annum”. |
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(b) |
the
last sentence shall be deleted and replaced with the following: |
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“Notwithstanding
the above, no Interest shall accrue or be payable with respect to the amount of the
Second Write Off, the Third Write Off, the Fourth Write Off, the Fifth Write Off or the
Sixth Write Off.” |
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2.4 |
In Section 13.25 of the Restructuring Agreement, the reference to “the first Quarter
of 2008” shall be replaced by “the first Quarter of 2009". |
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In
addition, Schedule 13.25 of the Restructuring Agreement shall be replaced by the
revised Schedule 13.25 attached to this amendment as Annex A. |
3
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2.5 |
A
new section 14.15A shall be added as follows: |
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“14.15A.
Amendment Closing. There is any breach of the provisions of clause 4 of
Amendment no. 2 to the Restructuring Agreement with respect to
Israeli or United States companies in the Group.” |
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Without
derogating from the terms of the Restructuring Agreement or the Cash Fee – Ltd. Stock
Side Letter dated 19th November 2003 (as amended by the Restructuring
Agreement), the Borrower hereby agrees to pay to the Bank in addition to the Interest a
payment in the amount of $4,000,000, (bearing no interest or premium), upon the earliest
to occur of the following events at any time when the Loan is outstanding: |
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(a) |
the
EBITDA (as defined in Annex A) of the Borrower for any year shall
exceed $50,000,000; |
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(b) |
the
closing of a public offering of any equity or convertible securities of the
Borrower for the account of the Borrower, but excluding a public offering
initiated at the request of the Bank if the shares of the Borrower sold in
such public offering are those owned by the Bank; |
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(c) |
the
closing of the sale by the Borrower of all or substantially all of its
assets; |
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(d) |
either
one or more of: LM Partners L.P., any of its Permitted Transferees, Ofer
Hi-Tech, any of its Affiliates or any of the third parties referred to in
clause (a) of footnote 2 of Item 7A in the Borrower’s Annual Report
on Form 20-F for the year ended December 31, 2007 for which Ofer Hi-Tech
holds shares of the Borrower in trust (the “Relevant Shareholders”);
transfer shares in the Borrower such that the aggregate shareholding in
the Borrower of all Relevant Shareholders together is reduced by at
least 40% of their aggregate shareholding in the Borrower as of the
Effective Date (i.e. reduced to an aggregate amount of shares below
82,876,331); |
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(e) |
either
one or more of the Relevant Shareholders reduce their holdings in the
Borrower’s outstanding share capital as of the Effective Date such
that the aggregate number of shares of the Borrower held by all Relevant
Shareholders together is reduced by at least 40% (i.e. their
aggregate outstanding shareholding is reduced to less than 47% of the
outstanding share capital of the Borrower (without given effect to any
shares issuable upon exercise of outstanding convertible securities of the
Borrower)) as a result of the issuance by the Borrower of shares at a
price per share above $1.55; |
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(f) |
a
spin off of assets of the Borrower representing at least 30% (thirty percent)
of the total assets of the Borrower; |
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(g) |
the
voluntary prepayment of at least 75% (seventy five percent) of the
outstanding balance of the Loan and Short Term Loan. |
4
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Without
derogating from Section 13.6 of the Restructuring Agreement, the Bank shall receive, by no
later than the 90th (ninetieth) Business Day following the Effective Date, such of the
following documents and matters as shall be agreed between the Borrower and the Bank
within 30 (thirty) days hereof and failing agreement as shall be determined by the Bank,
in form and substance reasonably satisfactory to the Bank: |
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(a) |
The
Borrower shall (and with respect to those Material Subsidiaries as shall be
agreed between the Borrower and the Bank, and failing agreement as the
Bank shall determine, shall use reasonable commercial efforts to procure
that such Material Subsidiaries shall) file, register, execute and perform
any other actions necessary, or in the reasonable opinion of the Bank
desirable to effectuate and perfect each of the New Securities in
accordance with any and all applicable laws governing each of such New
Securities and shall provide the Bank with evidence, satisfactory to the
Bank, that such New Securities have been duly perfected. |
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(b) |
Notwithstanding
anything to the contrary above, within 30 (thirty) days as of the
Effective Date, the Borrower shall, to the extent reasonably deemed
necessary by the Bank, amend the Existing Securities such that the
Existing Securities shall secure the transactions contemplated by the
Restructuring Agreement as amended hereby and any future transactions
between the Borrower and the Bank, in a form reasonably acceptable to the
Bank, and shall provide the Bank with evidence reasonably satisfactory to
the Bank, that such amendments have been duly filed with the Registrar of
Companies. |
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(c) |
The
Borrower shall use reasonable commercial efforts to provide the Bank with an
opinion of non-Israeli counsel, addressed to the Bank confirming that the
Existing Securities granted by non-Israeli companies in the Group secure
the transactions contemplated by the Restructuring Agreement as amended
hereby, in a the form reasonably acceptable to the Bank. |
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(d) |
The
Borrower shall provide the Bank with an opinion of counsel to the Borrower
addressed to the Bank confirming that the New Securities granted by
Israeli companies in the Group secure the transactions contemplated by the
Restructuring Agreement as amended hereby, in a form reasonably acceptable
to the Bank. |
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(e) |
The
Borrower shall use reasonable commercial efforts to provide the Bank with an
opinion of non-Israeli counsel, addressed to the Bank confirming that the
New Securities granted by non-Israeli companies in the Group secure the
transactions contemplated by the Restructuring Agreement as amended
hereby, in a form reasonably acceptable to the Bank. |
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In
the event that the aforegoing deliverables, with respect to Israeli or United States
companies in the Group, are not all delivered by the 90th (ninetieth) Business Day
following the Effective Date, such event shall be considered an Event of Default.
Notwithstanding the foregoing, failure to deliver deliverables with respect to entities
other than the Israeli or United States companies in the Group shall not derogate from the
validity or binding effect of this Amendment, and the Company shall continue to use
reasonable commercial efforts to complete these deliverables after the 90th (ninetieth)
Business Day following the Effective Date. The Bank undertakes that promptly following the
receipt to the reasonable satisfaction of the Bank of all the deliverables referred to in
clause 4 above, the Bank shall confirm to the Borrower in writing that the deliverables
have been satisfied. |
5
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It
is hereby confirmed that all the Existing Securities shall remain in effect and may be
used by the Bank to secure the repayment of the Loan, the New Loan and the Credit or any
additional outstanding debt to the Bank pursuant to this Amendment. It is further
confirmed that as of the Effective Date, LM Partners L.P., Ofer Hi-Tech Investments Ltd.
and the third parties referred to in clause (a) of footnote 2 of Item 7A in the
Borrower’s Annual Report on Form 20-F for the year ended December 31, 2007 for which
Ofer Hi-Tech holds shares of the Borrower in trust, hold 78,585,256, 52,546,998 and
6,994,964 shares of the Borrower, respectively, representing 44.34%, 29.65% and 3.95%
of the Company’s outstanding share capital of the Company as of the Effective Date
(without given effect to any shares issuable upon exercise of presently outstanding
convertible securities of the Borrower). |
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5.1 |
This Amendment may be executed in any number of counterparts and all of such counterparts
taken together shall be deemed to constitute one and the same instrument. |
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5.2 |
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. |
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5.3 |
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. |
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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. |
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5.4 |
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. |
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5.5 |
Other than as expressly set out herein, the provisions of the Restructuring Agreement
shall remain unchanged and in full force and effect in accordance with the terms thereof. |
– Signature pages
follow –
6
IN WITNESS WHEREOF, the parties have
signed this Amendment No. 2 to Restructuring Agreement on the date first mentioned above.
for: LUMENIS LTD.
By: /s/ Xxx Xxxx
——————————————
Title: Xxx Xxxx CEO
—————————————— |
/s/ Xxxxxx Xxxxxxxxx
——————————————
Xxxxxx Xxxxxxxxx CFO
—————————————— |
for: BANK HAPOALIM B.M.
By: /s/ Xxxxxx Xxxxx
——————————————
Title: Xxxxxx Xxxxx
—————————————— |
/s/ Xxx Xxxxxxxx
——————————————
Xxx Xxxxxxxx
—————————————— |
7
Annex A
Schedule 13.25
To:
Bank Hapoalim B.M. |
June
25, 2008 |
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 December 5, 2006 and June 25, 2008 (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 September 30, 2006 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. Financial
Ratios
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 March 31, 2009
a) Total
Debt to EBITDA shall not exceed: 6.5 (six point five) in the first Quarter of
2009, 5.5 (five point five) in the second Quarter of 2009, 5 (five) in the
third Quarter of 2009, 4.5 (four point five) in the fourth Quarter of 2009, and
3.5 (three point five) in the Fiscal Year 2010 and in each Fiscal Year
thereafter.
b) The
Interest Coverage Ratio shall be 1 (one) for the Fiscal Years of 2008 and 2009
and 2 (two) for Fiscal Year of 2010 and in each Fiscal Year thereafter.
2. Definitions
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:
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(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 $8 million in Fiscal Year 2008
only, and (ii) non-recurring items); and |
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(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 reviewed by the Bank shall be the sum of the EBITDA of the current
Quarter under review 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
Net 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 $8 million in Fiscal Year 2008
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.
2.4
"Total Debt" means the sum of:
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(a) |
the
Total Outstandings (other than the First Write Off, Second Write Off, Third
Write Off, Fourth Write Off, Fifth Write Off and Sixth Write Off),
assuming no Event of Default; and |
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(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”, “Total Debt”
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.
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.
