Exhibit 4.85
A M E N D I N G A G R E E M E N T
TO THE FACILITY
AGREEMENT
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THIS
AMENDING AGREEMENT IS MADE AND ENTERED INTO AS OF THE 25TH DAY OF SEPTEMBER, 2008, BY
AND BETWEEN: |
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(2) |
BANK
HAPOALIM B.M. AND BANK LEUMI LE – ISRAEL B.M. (“THE
BANKS”) |
| WHEREAS: |
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THE
BORROWER, ON THE ONE HAND, AND THE BANKS, ON THE OTHER HAND, ARE PARTIES TO A
FACILITY AGREEMENT DATED JANUARY 18, 2001, AS AMENDED AND RESTATED
ON AUGUST 24, 2006 AND AS FURTHER AMENDED BY AMENDMENT NO.1 THERETO
DATED SEPtember 10, 2007 ("the Facility Agreement"); and |
| WHEREAS: |
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the
Borrower has requested that changes be made to various provisions of the
Facility Agreement, including the conversion of a portion of
the Loans into capital notes to be issued by the Borrower to the
Banks and the postponement of the Borrower's obligation to make
repayments of principal with respect to the Loans; and |
| WHEREAS: |
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the
Borrower and the Banks have agreed to amend the Facility Agreement, subject to the
terms and conditions set out in this Amending Agreement below, |
NOW, THEREFORE, IT IS
HEREBY AGREED AS FOLLOWS:
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1.1. |
In
this Agreement, including the Exhibits hereto: |
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1.1.1. |
"Amending Agreement" |
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means this Amending Agreement; |
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1.1.2. |
"Amendment Closing Date" |
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means September 29, 2008, provided the Banks are
satisfied that by September 25, 2008 ("the Completion
Date") all the conditions precedent referred to in
clause 3 below shall have been fulfilled in form and
substance reasonably satisfactory to the Banks and
that all of the documents, matters and things referred
to in clause 5 below shall have been performed on or
prior to the Completion Date;
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1.1.3. |
"Restated Facility Agreement" |
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means the Facility Agreement, as amended and restated
by this Amending Agreement, the terms of which are set
out in Exhibit 1 hereto and initialled, for the
purposes of identification, by the parties hereto.
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1.2. |
Terms
and expressions defined in the Facility Agreement shall have the same
meanings when used in this Amending Agreement and all provisions of
the Facility Agreement concerning matters of construction and
interpretation shall apply to this Amending Agreement. |
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1.3. |
All
references in this Amending Agreement to clauses and paragraphs of the
Facility Agreement are references to clauses and paragraphs in the
Facility Agreement in its form prior to this Amending Agreement. |
| 2. |
AMENDMENT
AND RESTATEMENT OF THE FACILITY AGREEMENT |
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With
effect from the Amendment Closing Date and upon all activities to be performed on or
before the Completion Date being completed (or waived, the Banks being under no obligation
whatsoever to grant any waiver), the Facility Agreement (including the Schedules attached
thereto) shall automatically be amended and restated so that it shall be read and
construed for all purposes as set forth in Exhibit 1 hereto and, thereupon,
Exhibit 1 shall, for the avoidance of doubt, constitute the definitive and binding
version of the Facility Agreement as amended by this Amending Agreement. For the avoidance
of doubt, all Schedules to the Facility Agreement not amended, deleted or replaced under
this Amending Agreement shall remain unamended. |
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3.1. |
This
Amending Agreement is subject to the conditions precedent that the Banks
shall have received, by no later than September 25, 2008, all of
the following documents, matters and things in form and substance
satisfactory to the Banks: |
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3.1.1. |
a
copy, certified a true copy by the external legal counsel of the Borrower, of
the updated Certificate of Incorporation, Memorandum and Articles of
Association of the Borrower; |
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3.1.2. |
copies
of resolutions of the Board of Directors of the Borrower, its audit
committee and shareholders, approving the execution, delivery and
performance of this Amending Agreement and all agreements and acts to
be performed by the Borrower as conditions precedent to, or otherwise
in connection with, this Amending Agreement, including: (a) the
issue of capital notes, and of the shares issuable upon conversion
thereof, of the Borrower to the Banks or their respective nominees as
contemplated in clause 5.4 below; (b) the execution of
amended and restated registration rights agreements, between the
Borrower and each of the Banks or their respective nominees as
referred to in clause 5.5 below; (c) the investment by TIC
of US$20,000,000 (twenty million United States Dollars) in cash in
capital notes of the Borrower as referred to in clause 5.2 below
and the issue of capital notes of the Borrower to TIC as contemplated
in clauses 5.1 and 5.2 below; (d) the execution by the
Borrower and TIC of the conversion agreement referred to in clause 5.6
below; and (e) the execution by TIC and the Borrower of the
“TIC Safety Net Undertaking” referred to in clause 5.7
below, as well as a resolution of the Board of Directors of the
Borrower authorising a named officer of the Borrower to execute,
deliver and perform this Agreement and such other agreements and
acts, and to give all notices and take all such other action required
to be given or taken by the Borrower under this Amending Agreement or
in connection therewith; |
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3.1.3. |
Amending
Agreement fee letters with each of the Banks, both executed as of the
date hereof by the Borrower; |
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3.1.4. |
an
opinion of ▇▇▇▇▇ ▇▇▇▇▇ & Co., Advocates, the Borrower’s external
legal counsel, addressed to the Banks; |
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3.1.4A. |
an
opinion of Gornitzky & Co., TIC’s external legal counsel, addressed
to the Banks; |
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3.1.5. |
an
opinion of reputable U.S. legal counsel, to the effect that, based upon their
review of United States federal or New York State statutes, rules and
regulations which, in their opinion, based on their experience, are
normally applicable to transactions of the types contemplated by this
Amending Agreement (“United States Applicable Laws”):
(a) subject to the effectiveness of an appropriate registration
statement to be filed by the Borrower, no consent, approval,
authorization, order, registration or qualification of or with any
United States federal or New York State court or governmental agency
or body is required for the sale in the United States (including
through the Nasdaq Stock Market) by the Banks of the ordinary shares
issuable upon conversion of the capital notes (“the New
Capital Notes”) to be issuedto the Banks (or their
respective nominees) pursuant to clause 5.4 below in the United
States (“New Shares”), provided that no opinion need
be expressed with respect to state securities or Blue Sky laws; (b) the
acquisition and indefinite holding of the New Capital Notes and/or
New Shares and the indefinite holding of all Capital Notes currently
held by the Banks and of any shares issuable upon conversion of any
such current capital notes by the Banks is permissible under United
States Applicable Laws, including under the Bank Holding Company Act of
1956, as amended; and (c) the acquisition and holding of the New
Capital Notes and/or New Shares will not be subject to the
notification and filing requirements under the ▇▇▇▇-▇▇▇▇▇-▇▇▇▇▇▇
Antitrust Improvements Act of 1976, as amended. Such opinion may be
based upon and subject to reasonable assumptions and limitations; |
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3.1.6. |
all
of the Borrower’s representations and warranties given pursuant to this
Amending Agreement shall be accurate in all material respects as of
the Amendment Closing Date, as if made on the Amendment Closing Date; |
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3.1.7. |
an
updated report of the Insurance Adviser; |
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3.1.8. |
the
Borrower shall have received and provided to the Banks, written
confirmations of the receipt of all corporate and third party
approvals, including Israeli and foreign Governmental Body, and
relevant stock exchange, approvals with respect to the transactions
contemplated by this Amending Agreement and all transactions referred
to herein including, for the removal of doubt, with respect to TIC,
such written confirmations to be in form and substance satisfactory
to the Banks; |
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3.1.9. |
without
derogating from clause 3.1.8 above, the consent of the Investment
Centre to the issue of the New Capital Notes, and of the New Shares
issuable upon conversion of the capital notes, to the Banks (or their
respective nominees) as contemplated under clause 5.4 below; |
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3.1.10. |
without
derogating from clause 3.1.8 above, the approval of the ▇▇▇ under
the Existing ▇▇▇ Leases to the issue of the New Capital Notes, and of
the New Shares issuable upon conversion of the capital notes, to the
Banks (or their respective nominees) as contemplated under clause 5.4
below; |
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3.1.11. |
an
updated Schedule 1.1.101 to the Facility Agreement, listing all Material
Contracts which are still in effect; |
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3.1.12. |
confirmation
that all Material Contracts shall be in full force and effect and
shall not have been breached by the Borrower (save for any breach
which: (a) is not material; and (b) cannot constitute
(including with the passage of time or the giving of notice) a cause
of action permitting termination of any such Material Contract or any
variation thereof adverse to the Borrower); |
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3.1.13. |
a
Supplement to the Debenture shall be executed relating to all shares of the
Borrower in Jazz, all equipment, Material Contracts, registered
Intellectual Property Assets and other assets and rights required
under the Debenture to be pledged by way of first-ranking fixed
charge in favour of the Banks, but not as yet specifically included
in the Debenture and such Supplement shall be perfected and duly
registered with the Registrar of Companies and the Registrar of
Pledges and the Borrower shall deliver all documents as referred to in
clause 3.2 of the Debenture (mutatis mutandis) and shall
sign all other documents and forms required for the purposes of the
aforegoing; |
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3.1.14. |
a
list (and copies (save with respect to Permitted Financial Indebtedness of
Jazz or its Subsidiaries), certified by the Borrower’s external
legal counsel) of all the trust deeds, indentures and prospectuses
relating to Permitted Subordinated Debt issued by the Borrower and
Permitted Financial Indebtedness of any Subsidiary of the Borrower
(including Jazz) and outstanding; |
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3.1.15. |
the
updated Schedules set forth in Annex A to this Amending
Agreement; |
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3.1.16. |
a
certificate of the Chief Financial Officer of the Borrower certifying that, as
of the last day of the calendar month prior to the Amendment Closing
Date, the Borrower has no Indebtedness, save for Permitted Financial
Indebtedness; |
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3.1.17. |
notices
of assignment by way of charge of all Material Contracts (other than
those referred to in clauses 1.1.36(c)(i) and (ii) of the
Facility Agreement) entered into since September 28, 2006; and |
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3.1.18. |
the
Borrower or a wholly-owned Subsidiary of the Borrower shall have acquired
all of the shares of Jazz, such that Jazz shall have become a
wholly-owned Subsidiary of the Borrower and the Borrower shall have:
(a) delivered a certificate of the Chief Executive Officer of
the Borrower certifying that the merger pursuant to which Jazz was
acquired has occurred and that all conditions precedent and other
actions required in order to effectuate said merger have been
fulfilled or taken, as the case may be; and (b) executed in favour of
the Banks and there shall have been registered, both in the USA and
in Israel, a first-ranking fixed pledge and charge over all shares to
be acquired by the Borrower in Jazz and the Banks shall have received
legal opinions, in form and substance satisfactory to the Banks,
addressed to them by the Borrower’s external Israeli and US
legal counsel regarding such acquisition and pledge. |
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3.2. |
In
the event that the aforegoing conditions precedent are not all fulfilled by
the Completion Date, or in the event that they shall have been
fulfilled, but the closing of this Amending Agreement shall not be
fully performed in accordance with clause 5 below by the
Completion Date, then, save for clauses 7, 8 and 9 below, this
Amending Agreement shall no longer be of any force or effect and the
Facility Agreement shall remain unaltered and in full force and
effect and, save as aforesaid, no party shall have any claim arising
out of or in connection with this Amending Agreement. The Banks
undertake that promptly following the fulfilment to the satisfaction
of the Banks of all the conditions precedent referred to in clause 3.1
above, the Banks shall confirm to the Borrower in writing that the
conditions precedent have been fulfilled and the conditions for
closing shall have been fulfilled as at the Completion Date. |
| 4. |
REPRESENTATIONS
AND WARRANTIES |
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4.1. |
The
Borrower acknowledges that the Banks have agreed to this Amending Agreement
in full reliance on all of the representations and warranties set
forth in the Restated Facility Agreement, all of which
representations and warranties are deemed to have been made on the
date hereof and repeated on the Amendment Closing Date. |
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4.2. |
For
the removal of doubt, the term “Finance Documents” when referred
to in the representations and warranties set out in clause 15 of
the Restated Facility Agreement, includes also references to this
Amending Agreement and to the Restated Facility Agreement. |
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Subject
to the fulfilment of the conditions precedent set out in clause 3 above, all of the
acts, including all of the following documents, matters and things, in form and substance
satisfactory to the Banks, set out in this clause 5 (or in the case of
clauses 5.3, 5.4, 5.5 and 5.9 below, in form and substance satisfactory to the Bank
entering into such amendment or agreement) below shall be performed, on or prior to the
Completion Date, each such act to be deemed to have been performed immediately after the
other. In the event that any of such acts are not so performed, all of the acts which were
performed shall be of no force and effect, and this Amending Agreement shall not have been
closed: |
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5.1. |
the
Borrower and TIC shall enter into a securities purchase agreement, relating
to the investment referred to in clause 5.2 below (for the
removal of doubt, in form and substance satisfactory to the Banks, as
aforesaid); |
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5.2. |
the
Borrower shall present to the Banks a certificate by the Auditors, mutatis mutandis,
in the form of Schedule 16.1.1(v)B to the Facility
Agreement, confirming that TIC has, on, or immediately prior to, the
Completion Date, invested in cash (new funds) an amount of at least US $20,000,000
(twenty million United States Dollars), in capital notes of the
Borrower (in form and substance satisfactory to the Banks)
convertible into 28,169,014 (twenty-eight million one hundred and
sixty-nine thousand and fourteen) ordinary shares of the Borrower; |
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5.3. |
the
Borrower and each Bank (or each Bank’s nominees) shall enter into a
conversion agreement (for the removal of doubt, each in form and
substance satisfactory to such Bank, as aforesaid), relating to the
capital notes (and shares issuable thereunder) to be issued to such
Bank (or such Bank’s nominees) pursuant to clause 5.4
below, the conversions thereunder to be effected as of the Amendment
Closing Date; |
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5.4. |
the
Borrower shall issue to each of the Banks (or their respective nominees)
convertible capital notes (for the removal of doubt, in form and
substance satisfactory to the Banks, as aforesaid) against the
delivery by each such Bank to the Borrower of confirmation that the
amounts of: (a) US $85,000,000 (eighty-five million United
States Dollars) less the amount of US$220,390 (two hundred and twenty
thousand three hundred and ninety United States Dollars) constituting
interest accrued on such Bank’s Equipment Facility Loan from June 30,
2008 until the Amendment Closing Date (“the Accrued Unpaid Equipment
Facility Loan Interest”) of the principal of the Loans owed
to such Bank; and (b) US $15,220,390 (fifteen million two
hundred and twenty thousand three hundred and ninety United States
Dollars) constituting the amount of the principal of the Equipment
Facility Loan by such Bank plus the Accrued Unpaid Equipment Facility
Loan Interest, shall, as of the Amendment Closing Date, be converted
into such capital notes, which capital notes for each Bank are
convertible into 70,422,535 (seventy million four hundred and
twenty-two thousand five hundred and thirty-five) shares (subject to
adjustments to changes in capital structure, stock splits, etc.)
of the Borrower, such capital notes being fully convertible, at any
time, in whole or in part and freely transferable, at any time, in
whole or in part. For the avoidance of doubt, the conversion of the
Loans and the Equipment Facility Loans described in this clause 5.4
shall not take place, or be deemed to have taken place, prior to the
effectiveness of the Restated Facility Agreement on the Amendment Closing
Date pursuant to clause 2 above; |
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5.5. |
the
Borrower shall have entered into an amended and restated registration rights
agreement with each of the Banks with respect to all shares
underlying the current capital notes, warrants (including, in the
case of Bank Hapoalim, B.M., warrants held by an Affiliate of Bank
Hapoalim B.M.) and the New Capital Notes of such Bank; |
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5.6. |
the
Borrower and TIC shall enter into a conversion agreement (for the removal of
doubt, in form and substance satisfactory to such Bank, as aforesaid)
pursuant to which TIC shall have converted the Borrower’s
Indebtedness to TIC of: (a) US $30,000,000 (thirty million
United States Dollars) of equipment facility loans pursuant to the
Equipment Facility Agreement dated September 10, 2007 between
the Borrower and TIC, and interest thereon accrued and not yet paid
(such interest to be added to principal owing to TIC under the
Equipment Facility Agreement and converted as aforesaid); and (b) US $20,000,000
(twenty million United States Dollars), comprising: (i) such
part of the principal of the convertible debentures of the Borrower
held by TIC that together with the accrued interest thereon as of the
date of the Debt Conversion aggregates US $20,000,000 (twenty
million United States Dollars); and (ii) such accrued interest,
into capital notes of the Borrower, in form and substance
satisfactory to the Banks, the Borrower and TIC which shall, in the
aggregate, be convertible into, a maximum of 35,211,271 (thirty-five
million two hundred and eleven thousand two hundred and seventy-one)
ordinary shares of the Borrower. The conversion of the Indebtedness
referred to in paragraph (b) above shall be implemented by the
Borrower acquiring from TIC the relevant convertible debentures
(against issue of the capital notes referred to in paragraph (b)
above). The Borrower hereby undertakes to the Banks that such
convertible debentures as aforesaid shall at all times be held by the
Borrower or shall be cancelled by the Borrower and shall not be
reissued, such that the Borrower shall at no time have any
Indebtedness in respect of such convertible debentures; |
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5.7. |
TIC
shall have executed and delivered to the Banks a TIC Safety Net Undertaking
in favour of the Borrower (in the form of Schedule 1.1.139A to
the Restated Facility Agreement); |
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5.8. |
TIC
shall have entered into amendments to the Tag Along Agreements, dated
September 28, 2006, between TIC and each of the Banks so as to
include the New Capital Notes and the shares issuable upon conversion
thereof within the tag-along right granted to each Bank by TIC; |
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5.9. |
the
Borrower shall deliver to the Banks a capitalisation table reflecting all
shareholdings and holdings of securities (including capital notes,
warrants, options and convertible debentures) in the Borrower, as at
the Amendment Closing Date, certified as correct by the Chief
Financial Officer of the Borrower; and |
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5.10. |
the
Borrower shall pay all fees payable on or before the Amendment Closing Date
in accordance with the Amending Agreement fee letters referred to in
clause 3.1.3 above. |
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The
Borrower hereby undertakes to make full, complete and correct disclosure as to the letter
of intent dated August 19, 2008 between the Borrower and the Banks and as to this
Amending Agreement to all relevant authorities (including the SEC) and in any disclosures
made or to be made by the Borrower pursuant to the Securities Act of 1933 or the
Securities Exchange Act of 1934 (all such disclosures not to contain any untrue statement
of material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading) |
| 7. |
GOVERNING
LAW AND JURISDICTION |
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This
Amending Agreement shall be governed by and shall be construed in accordance with Israeli
law and the competent court of Tel-Aviv-Jaffa shall have exclusive jurisdiction to hear
any matters, provided that the Banks shall be entitled to ▇▇▇ the Borrower in any
jurisdiction in which it has an office or holds assets. |
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8.1. |
Clauses 26,
27 and 29 of the Facility Agreement shall apply to this Amending
Agreement, provided that clause 27.2.1 shall be amended as set
forth in Exhibit 1 hereto. Nothing in this Amending Agreement,
Exhibit 1 hereto, or the Restated Facility Agreement shall
constitute or be construed as a revocation, withdrawal or
cancellation of each waiver, approval or consent given to the
Borrower by the Banks prior to the date hereof, but only to the
extent as such waiver, approval or consent shall be set forth in Exhibit 2 to
be attached hereto on the Amendment Closing Date (provided that such
exhibit is in form and substance satisfactory to the Banks) and each
such waiver, approval or consent shall continue to be in effect
following the date hereof in accordance with the respective terms
thereof. |
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8.2. |
For
the avoidance of doubt, this Amending Agreement shall constitute a Finance
Document. |
IN WITNESS WHEREOF, the parties
have signed this Amending Agreement effective as of the date first mentioned above.
the BORROWER:
the BANKS:
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| for |
BANK HAPOALIM B.M. |
for |
BANK LEUMI LE-ISRAEL B.M. |
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| By: |
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By: |
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| Title: |
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Title: |
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A N N E X A
List of Updated
Schedules to be
attached on the Amendment
Closing Date
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| SCHEDULES 1.1.2(A)-(B) |
Accounts of the Borrower |
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| SCHEDULE 1.1.16 |
Business Plan (solo and consolidated) |
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| SCHEDULE 1.1.79 |
List of Intellectual Property Assets |
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| SCHEDULE 1.1.101 |
List of Material Contracts |
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| SCHEDULE 1.1.105 |
List of Named Officers and Directors |
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| SCHEDULE 1.1.115(C) |
Description of certain exempt Financial Indebtedness of the Group |
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| SCHEDULE 1.1.115(l) |
Other Permitted Financial Indebtedness |
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| SCHEDULE 1.1.139A |
Form of TIC Safety Net Undertaking |
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| SCHEDULE 1.1.147 |
List of Warrants issued by the Borrower to the Banks |
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| SCHEDULE 15.4 |
Non-conflict |
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| SCHEDULE 15.6 |
Consents required to be obtained from any person or Governmental Body |
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| SCHEDULE 15.10 |
Exceptions to representations as to good and marketable title to assets and rights |
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| SCHEDULE 15.13 |
Listed details and copies of all trust deeds, indentures and other instruments reflecting the terms and conditions of all existing Permitted Subordinated Debt and all Permitted Financial Indebtedness of the Subsidiaries of the Borrower existing as at the Amendment Closing Date |
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| SCHEDULE 15.17.1 |
Exceptions to compliance with law representation |
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| SCHEDULE 15.17.2 |
Exceptions to Governmental Authorizations |
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| SCHEDULE 15.18 |
Description of Proceedings pending against the Borrower or any Subsidiary |
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| SCHEDULE 16.1.1(IV) |
Form of report setting out a comparison of actual results with projected results of the Borrower |
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| SCHEDULE 16.1.1(V)B |
Form of certificate of the Auditors setting out the amounts invested in the relevant Quarter by way of Paid-in Equity, capital notes and Permitted Subordinated Debt |
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| SCHEDULE 16.29 |
Financial Undertakings |
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