TERM SHEETTerm Sheet • December 21st, 2010 • Magal Security Systems LTD • Communications equipment, nec
Issuer Magal Security Systems Ltd., of 17 Altalef St. Yehud, Israel (the “Company”or “Magal”). Lender(s) and Loaned Amounts Mr. Nathan Kirsh and/or entities affiliated with him (collectively, “NK” or the “Lender”). The Lender hereby undertakes to lend the Company the sum of US$10,000,000 (the “Principal Amount”). The Principal Amount will be paid to the Company within 3 business days following the execution of this Term Sheet but in any event not later than September 7, 2010 (the “Funding Date”). It is agreed that the Principal Amount shall not bear any interest for a period of 180 days after the Funding Date (as defined below) (hereinafter: the “First Period”). To the extent that the Principal Amount or any part thereof shall not be repaid in full during the First Period, then any unpaid balance of the Principal Amount shall bear interest in the rate of 3 month LIBOR plus 4% per annum (the “Interest”), calculated from the Funding Date and accumulated on a quarterly basis (the Principa
