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United
States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 26, 2025
ISRAEL ACQUISITIONS
CORP
(Exact Name of Registrant as Specified in its Charter)
Cayman Islands |
|
001-41593 |
|
87-3587394 |
(State or other jurisdiction of
incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification No.) |
12600 Hill Country Blvd, Building R, Suite 275
Bee Cave, Texas |
|
78738 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (800) 508-1531
N/A
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
x |
Written communications pursuant to Rule 425 under the Securities Act |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act |
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange
on which registered |
Units, each consisting of one Class A ordinary share and one redeemable warrant |
|
ISRLU |
|
The Nasdaq Stock Market LLC |
Class A ordinary shares, par value $0.0001 per share |
|
ISRL |
|
The Nasdaq Stock Market LLC |
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share, each at an exercise price of $11.50 per share |
|
ISRLW |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities
Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company x
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Item 1.01 |
Entry into a Material Definitive Agreement |
Business Combination Agreement
On January 26,
2025, Israel Acquisitions Corp, a Cayman Islands exempted company (the “Company” or
“IAC”) and Gadfin Ltd., a company domiciled in Israel (“Gadfin”) entered into a business
combination agreement (the “Agreement”), pursuant to which, among other things, and subject to the terms and
conditions contained therein (i) Gadfin will cause a company organized under the laws of the State of Israel and wholly owned
by a trustee (the “NewPubco”) to be formed, (ii) Gadfin will cause a company organized under the laws of the
State of Israel and wholly owned, direct subsidiary of NewPubco (“Merger Sub 1”) to be formed, (iii) Gadfin
will cause a Cayman Islands exempted company and wholly owned, direct subsidiary of NewPubco (“Merger Sub 2”) to
be formed, (iv) Gadfin will cause NewPubco, Merger Sub 1 and Merger Sub 2 to become a party to the Agreement by delivering a
joinder to the Agreement, (v) Gadfin will effect the Share Split, (vi) NewPubco, the shareholders of Gadfin and the
holders of equity awards of Gadfin will effect the Acquisition Merger (as defined herein), (vii) Merger Sub 1 will merge with
and into Gadfin, with Gadfin surviving the merger as a direct wholly owned subsidiary of NewPubCo (the “Acquisition
Merger”), and (viii) Merger Sub 2 will merge with and into IAC, with IAC surviving the merger as a direct wholly
owned subsidiary of NewPubCo (the “IAC Merger”, and together with the Acquisition Merger, the
“Mergers”). The collective transactions referenced in (i)-(viii) are hereinafter referred to as the
“Transactions”. The terms of the Agreement, which contain customary representations and warranties, covenants,
closing conditions, termination provisions, and other terms relating to the Transactions, are summarized below. Capitalized terms
used but not defined herein shall have the meanings ascribed thereto in the Agreement.
Share Split and Acquisition Merger
Prior to the closing of the
Transactions (the “Closing”), Gadfin will effect a share split under which each ordinary share and preferred share
of Gadfin issued and outstanding will be split into a number of ordinary shares or preferred shares, as applicable, determined by multiplying
each such ordinary share or preferred share of Gadfin, as applicable, by the Split Factor (the “Share Split”).
Under the Agreement, holders
of Gadfin equity interests are expected to receive approximately $200,000,000 (the “Gadfin Equity Value”) in aggregate
consideration in the form of NewPubco Ordinary Shares, equal to the quotient obtained by dividing (a) the Gadfin Equity Value by
(b) the fully diluted number of Gadfin ordinary shares and preferred shares (including ordinary shares issuable upon exercise, vesting
and settlement of Gadfin options and Gadfin warrants and other convertible securities of Gadfin); provided however, in the event Gadfin
does not record at least $4,500,000 in deferred revenue by the Closing date, the Gadfin Equity Value shall be $150,000,000.
In addition, following the
Closing and subject to the occurrence of the $12.50 Share Price Milestone and/or the $15.00 Share Price Milestone, NewPubco shall issue
to each holder of Gadfin as of immediately prior to the Acquisition Merger Effective Time, a certain number of Price Adjustment Earnout
Shares, subject to the terms and conditions set forth therein.
Immediately after the Share
Split, and at the effective time of the Acquisition Merger, Merger Sub 1 will be merged with and into Gadfin upon the terms and subject
to the conditions set forth in the Agreement, and in accordance with the applicable provisions of the Israeli Companies Law (“ICL”),
whereupon the separate corporate existence of Merger Sub 1 will cease and Gadfin will continue its existence under the ICL as the surviving
corporation and become a wholly owned subsidiary of NewPubco (the “Acquisition Surviving Sub”), on the terms and subject
to the conditions set forth in the Agreement. From and after the effective time of the Acquisition Merger, Gadfin will possess all the
rights, powers, privileges, properties and franchises and be subject to all of the obligations, liabilities and duties of Gadfin and Merger
Sub 1, all as provided under the ICL. As soon as practicable after the determination of the date on which the Closing is to take place,
each of Gadfin and Merger Sub 1 shall, in coordination with each other, deliver to the Israeli Register of Companies (the “Companies
Registrar”) a notice of the contemplated Acquisition Merger, setting forth the proposed date of the Closing on which the Companies
Registrar is requested to issue a certificate evidencing the Acquisition Merger in accordance with Section 323(5) of the ICL
(the “Certificate of Merger”), after another notice that the Closing has occurred is served to the Companies Registrar,
which the parties shall deliver as of the date of Closing Date. The Acquisition Merger will become effective upon the issuance by the
Companies Registrar of the Certificate of Merger in accordance with Section 323(5) of the ICL (such time as the Acquisition
Merger becomes effective being the “Acquisition Merger Effective Time”).
At the Acquisition Merger
Effective Time, by virtue of the Acquisition Merger and without any action on the part of Gadfin, Merger Sub 1 or any holders of ordinary
shares or preferred shares of Gadfin or shares of Merger Sub 1: (i) all ordinary shares or preferred shares of Gadfin that are owned
by Gadfin or any wholly owned subsidiary of Gadfin, if any, shall be deemed to have been transferred to NewPubco and no consideration
shall be delivered or deliverable in exchange therefor, (ii) each ordinary share of Gadfin issued and outstanding immediately prior
to the Acquisition Merger Effective Time (except for treasury shares of Gadfin) will, by virtue of the Acquisition Merger and upon the
terms and subject to the conditions set forth in the Agreement, automatically be deemed to have been converted and represent only the
right to receive a number of NewPubco Ordinary Shares equal to the Company Merger Ratio, (iii) each preferred share of Gadfin issued
and outstanding immediately prior to the Acquisition Merger Effective Time (except for treasury shares of Gadfin) will, by virtue of the
Acquisition Merger and upon the terms and subject to the conditions set forth in this Agreement, automatically be deemed to have been
converted and represent only the right to receive a number of NewPubco Ordinary Shares equal to the Company Merger Ratio, (iv) unless
otherwise exercised prior to the Acquisition Merger Effective Time, each warrant of Gadfin issued and outstanding immediately prior to
the Acquisition Merger Effective Time, will, by virtue of the Acquisition Merger and upon the terms and subject to the conditions set
forth in this Agreement, be converted and represent the right to receive a warrant to purchase NewPubco Ordinary Shares equal to the number
of ordinary shares of Gadfin subject to such warrant, multiplied by (A) the Split Factor, and (B) the Company Merger Ratio,
(v) immediately prior to the Acquisition Merger Effective Time and pursuant to the resolutions of the board of directors of Gadfin,
all outstanding Company Options shall be assumed by NewPubco, (vi) each Company Option of Gadfin that is issued and outstanding prior
to the Acquisition Merger Effective Time will automatically cease to represent a right to acquire an ordinary share of Gadfin and shall
automatically be assumed by NewPubCo and converted into an option to acquire such number of NewPubco Ordinary Shares equal to the number
of ordinary shares of Gadfin subject to such option, multiplied by (A) the Split Factor, and (B) the Company Merger Ratio, and
(vii) each ordinary share of Merger Sub 1 issued and outstanding immediately prior to the Acquisition Merger Effective Time will
be converted into one ordinary share of the Acquisition Surviving Company, and all such ordinary shares shall constitute the only outstanding
share capital of the Acquisition Surviving Company.
IAC Merger and IAC Merger Consideration
Immediately after the Acquisition
Merger Effective Time and on the terms and subject to the conditions set forth in the Agreement and in accordance with the Companies Act
(as revised) of the Cayman Islands (the “Cayman Companies Law”), IAC will consummate the IAC Merger (the date
on which the IAC Merger occurs referred to herein as the “IAC Merger Closing Date”). On the IAC Merger Closing Date, IAC,
NewPubco and Merger Sub 2 will (i) cause the a plan of merger, in such form as mutually agreed by IAC and Gadfin (the “Plan
of Merger”) to be duly executed and filed with the Registrar of Companies of the Cayman Islands as provided by Section 233
of the Cayman Companies Law, and (ii) make any other filings, recordings or publications required to be made by IAC or Merger Sub
2 under the Cayman Companies Law in connection with the IAC Merger. The IAC Merger will become effective on the date as specified in the
Plan of Merger in accordance with the Cayman Companies Law. The IAC Merger shall become effective on the date and time as specified in
the Plan of Merger that has been registered by the Registrar of Companies of the Cayman Islands (such date and time is hereinafter referred
as the “IAC Merger Effective Time”). Following the IAC Merger Effective Time, the (i) separate existence of Merger
Sub 2 will cease, it will be struck off the Register of Companies in the Cayman Islands and IAC shall continue as the surviving company
of the IAC Merger (“IAC Surviving Company”) and (ii) IAC will (A) become a direct, wholly owned subsidiary
of NewPubco, (B) continue to be governed by the Laws of the Cayman Islands, and (C) succeed to and assume all of the rights,
properties and obligations of Merger Sub 2 in accordance with the Cayman Companies Law, and the shareholders of IAC will be entitled to
the IAC Merger Consideration (as defined below).
Under the Agreement, at the
IAC Merger Effective Time, (a) each IAC unit, consisting of one IAC Class A Share (as defined below) and one IAC Warrant (as
defined below, and such units the “IAC Units”) issued and outstanding immediately prior to the IAC Merger Effective
Time will be automatically detached and the holder will be deemed to hold one IAC Class A ordinary share, par value $0.0001 (the
“IAC Class A Shares”) and one warrant entitling the holder to purchase one IAC Class A Share at a price of
$11.50 (the “IAC Warrants”), (b) each Class B ordinary share of IAC, par value $0.0001 (the “IAC
Class B Shares”) will automatically be converted into one IAC Class A Share and each IAC Class B Share will no
longer be outstanding and will be automatically cancelled, (c) each IAC Class A Share issued and outstanding prior the IAC Merger
Effective Time will automatically be cancelled in exchange for the right to receive one NewPubco Ordinary Share for each IAC Class A
Share, (the “IAC Merger Consideration”), (d) each IAC Warrant that is outstanding and unexercised immediately
prior to the Merger Effective Time will cease to represent an IAC Warrant in respect of IAC Shares and will be assumed by NewPubco and
automatically converted into a warrant to acquire NewPubco Ordinary Shares, (e) any IAC Share owned by IAC as treasury shares or
by a subsidiary of IAC immediately prior to the IAC Merger Effective Time will be automatically cancelled and will cease to exist without
any conversion or payment therefor, (f) each IAC share subject to redemption rights issued and outstanding immediately prior to the
IAC Merger Effective Time will be automatically cancelled and cease to exist and will thereafter represent only the right to be paid a
pro rata share of the redemption amount in accordance with IAC Articles of Association, (g) each IAC share issued and outstanding
prior to the IAC Merger Effective Time for which any IAC shareholder had validly exercised their dissenters’ rights will not be
exchanged for one NewPubco Ordinary Share and will be automatically cancelled and will thereafter represent only the right to be paid
the fair value of such shares and any other rights granted by the Cayman Companies Law, and (h) each ordinary share of Merger Sub
2 issued and outstanding immediately prior to the Merger Effective Time will be converted into one ordinary share of the IAC Surviving
Company.
Representations and Warranties
The Agreement contains representations
and warranties of the parties thereto that are customary for transactions of this type, including representations and warranties relating
to (a) entity organization, formation and authority, (b) capital structure, (c) authorization to enter into the Agreement,
(d) legal compliance and approvals, (e) financial statements and liabilities, (f) consents and requisite governmental approvals,
(g) material contracts, (h) absence of changes, (i) litigation, (j) compliance with applicable laws, (k) labor
matters and employees benefit plans, (l) environmental matters, (m) intellectual property and privacy, (n) insurance, (o) taxes,
(p) real and personal property, and (q) transactions with affiliates, and with respect to IAC only, (i) public filings,
(ii) the Investment Company Act and (iii) IAC’s trust account.
Non-Survival
None of the representations,
warranties, covenants, obligations or other agreements in the Agreement or in any certificate or instrument delivered pursuant to the
Agreement, including any rights arising out of any breach of such representations, warranties, covenants, agreements and other provisions,
will survive the Acquisition Merger Effective Time and all such representations, warranties, covenants or other agreements will terminate
and expire upon the occurrence of the Acquisition Merger Effective Time (and there will be no liability after the Acquisition Merger Effective
Time in respect thereof), except for those covenants and agreements contained therein that by their terms expressly apply in whole or
in part after the Acquisition Merger Effective Time and then only with respect to any breaches occurring after the Acquisition Merger
Effective Time.
Conditions to Consummation of the Agreement
Mutual Conditions to Closing
The consummation of the Transactions
is conditioned upon, among other things, (a) the Registration Statement / Proxy Statement shall have become effective in accordance
with the provisions of the Securities Act; (b) receipt of Gadfin’s shareholder approval, (c) the absence of any governmental
order, statute, rule or regulation enjoining or prohibiting the consummation of the Transactions, (d) receipt of IAC’s
shareholder approval, (e) receipt of the ISA Exemption, (f) receipt of the Israeli Tax Ruling, and (f) the expiration or
termination of the waiting period under the Hart-Scott-Rodino Act.
IAC’s Conditions to Closing
The obligations of IAC to
consummate the Transactions are conditioned upon, among other things, customary closing conditions, including no Gadfin Material Adverse
Effect having occurred.
Gadfin’s Conditions to Closing
The obligations of Gadfin
to consummate the Transactions are also conditioned upon, among other things, customary closing conditions, including, without limitation,
(a) Aggregate Transaction Proceeds being greater than or equal to $15,000,000 (“Minimum Cash Condition”), (b) no
Transaction Expenses Cap Excess, if any, shall have remained outstanding, (c) if applicable, IAC and Gadfin shall have reached
an agreement on the terms of the Dilution Cap Breach Adjustment.
Termination
The Agreement allows the parties
to terminate the Agreement if specified customary conditions described in the Agreement are not satisfied, subject to certain limited
exceptions, and also if the Transactions have not been consummated by December 31, 2025 (the “Termination Date”).
The Agreement also allows
the parties to terminate the Agreement if (a) any Governmental Entity takes action prohibiting the Transactions, (b) if IAC
Shareholder Approval is not obtained, (c) if Gadfin Shareholder Approval is not obtained, and (d) if Gadfin has not met the
Threshold Raised Amount.
IAC may terminate the Agreement
if (a) IAC declares a PCAOB Related Default that remains uncured for ten (10) business days, and (b) if the representations
and warranties of Gadfin are not true and correct or if Gadfin has materially breached any covenant or agreement as set forth in the Agreement.
Gadfin may terminate the Agreement,
(a) at any time prior to the receipt of the Gadfin Shareholder Approval, in order to immediately enter into a written definitive
agreement with respect to a Superior Proposal, and (b) if the representations and warranties of IAC are not true and correct or if
IAC has materially breached any covenant or agreement as set forth in the Agreement. In the event the Agreement is terminated by Gadfin
in order to accept a Superior Proposal, Gadfin will pay to IAC a termination fee of $10,000,000. In the event the Agreement is terminated
by Gadfin pursuant to clause (b) of this paragraph, IAC will pay to Gadfin a termination fee of $10,000,000.
In the event the Agreement
is terminated for any reason other than by Gadfin pursuant to Section 7.1(c) of the Agreement, or by IAC or Gadfin the case
may be, pursuant to Section 7.1(f) or Section 7.1(g), Gadfin shall pay to IAC an mount equity to five percent (5%) of any
IAC Introduced Financing Amount from any source during the period beginning October 16th, 2024 and extending through the
twelve months immediately following the effective date of such termination.
If the Agreement is validly
terminated, none of the parties to the Agreement will have any liability or any further obligation under the Agreement, with the exception
of (a) the confidentiality obligation set forth in Section 5.3(a) and Section 7.2 of the Agreement and (b) the
Confidentiality Agreement.
The foregoing description
of the Agreement is subject to and qualified in its entirety by reference to the full text of the Agreement, a copy of which is attached
as Exhibit 2.1 hereto, and the terms of which are incorporated herein by reference.
Certain Related Agreements
Sponsor Support Agreement
Concurrently
with the execution of the Agreement, each of the Sponsor, IAC and Gadfin entered into a Sponsor Support Agreement (the
“Sponsor Support Agreement”) whereby the Sponsor has agreed, among other things, (a) to vote in favor of the
Agreement and the Transactions on the terms and subject to the conditions set forth in the Sponsor Support Agreement, (b) in
the event the Covered Shares represent more than 30% of NewPubco Ordinary Shares issued and outstanding immediately following
Closing, Sponsor will irrevocably forfeit and surrender, immediately prior to Closing, for no consideration, a number of Sponsor
Shares, up to a maximum of 1,429,000 Sponsor Shares, in order to reduce the Sponsor’s holding in NewPubco below the Dilution
Cap, and (c) if, immediately prior to or at the Closing, SPAC incurs a Transaction Expenses Cap Excess without obtaining
the prior written consent of the Company to incur such Transaction Expenses Cap Excess, then at the election of Gadfin in its sole
discretion, Sponsor shall either (x) irrevocably transfer to such Persons entitled to the respective Transaction Expenses Cap
Excess such number of SPAC Shares or SPAC Warrants that will satisfy and settle such Transaction Expenses Cap Excess, reasonably
acceptable to Gadfin or (y) pay directly to NewPubco any such Transaction Expenses Cap Excess, such that only Sponsor bears
such Transaction Expenses Cap Excess . The Sponsor also agreed that it will not (a) transfer any of the Sponsor Shares or grant
any security interest in the Sponsor Shares pursuant to the Agreement or to another shareholder of IAC, (b) deposit any Sponsor
Shares into a voting trust or enter into a voting arrangement that is inconsistent with the Sponsor Support Agreement or
(c) enter into any arrangement with respect to the acquisition or sale of any of the Sponsor Shares. The Sponsor has also
agreed to waive its rights to the treatment of its Sponsor Shares and to not participate in any redemption by tendering or
submitting any IAC equity securities held by the Sponsor for redemption.
The foregoing description
of the Sponsor Support Agreement is subject to and qualified in its entirety by reference to the full text of the Sponsor Support Agreement,
a form copy of which is attached as Exhibit 10.1 hereto, and the terms of which are incorporated herein by reference.
Transaction Support Agreement
Concurrently with the execution
of the Agreement, certain Gadfin shareholders entered into Transaction Support Agreements, pursuant to which, among other things, each
of such Gadfin shareholders, separately and independently, has agreed to vote in favor of the approval of the proposals at the applicable
Gadfin shareholders’ meetings.
The foregoing
description of the Transaction Support Agreement is subject to and qualified in its entirety by reference to the full text of the
Transaction Support Agreement, a form copy of which is attached as Exhibit 10.2 hereto, and the terms of which are incorporated
herein by reference.
Registration Rights and Lock-Up Agreement
At the Closing, NewPubco, IAC,
specified Gadfin shareholders and the Sponsor will enter into a Registration Rights and Lock-Up Agreement, (the “Registration
Rights Agreement”) pursuant to which, among other things, the parties thereto will be granted customary demand and piggyback
registration rights with respect to NewPubco Ordinary Shares at Closing and will have agreed to customary lock-up restrictions for a period
of six (6) months following the Closing, with such shares being released from lock-up in twelve monthly increments following such
six (6) month period, subject to earlier release if specified share price hurdles are achieved.
The form of the Registration
Rights Agreement shall be mutually agreed by Gadfin and IAC prior to Closing, provided that such Registration Rights Agreement shall incorporate
the key terms set forth in Annex II of the BCA.
Subscription Agreements and PIPE Investment
Prior to the earlier of Closing and the termination
of the Agreement, IAC, NewPubCo and Gadfin will use their commercially reasonable efforts to obtain PIPE Financing by executing PIPE
Subscription Agreements with investors and consummate the purchases contemplated by the PIPE Subscription Agreements.
The closing of the sale of
the PIPE Shares pursuant to the PIPE Subscription Agreements will take place substantially concurrently with the Closing and will be subject
to customary closing conditions. The purpose of the PIPE Investment is to raise additional capital for use by the post-combination company
following the Closing. Any financing that occurs after the execution of the Agreement shall require the written consent of both parties,
provided, that Gadfin may raise any Company Permitted Interim Financing,
without the written consent of IAC.
Item 3.02. |
Unregistered Sales of Equity Securities. |
The disclosure set forth in
Item 1.01 of this Current Report on Form 8-K is incorporated by reference herein. The securities of NewPubco that may be issued in
connection with the Subscription Agreements will not be registered under the Securities Act of 1933, as amended (the “Securities
Act”) in reliance on the exemption from registration provided by Rule 506(c) of Regulation D promulgated thereunder.
Item 7.01. |
Regulation FD Disclosure. |
On January 27, 2025, IAC
and Gadfin issued a joint press release announcing the execution of the Agreement, a copy of which is attached as Exhibit 99.1 to
this Current Report on Form 8-K.
The
information in this Item 7.01 of this Current Report on Form 8-K is being “furnished” and shall not be deemed “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), and shall not be incorporated
or deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933 or the Exchange Act, regardless
of any general incorporation language contained in such filing, unless otherwise expressly stated in such filing.
Forward Looking Statements
This Current Report on Form 8-K
includes forward-looking statements within the meaning of the “safe harbor” provisions Private Securities Litigation Reform
Act of 1995, as amended, including, without limitation, implied and express statements regarding the timing and effects of the consummation
of the Merger and the achievement of certain milestones. All statements, other than statements of historical fact included in this Current
Report on Form 8-K, regarding our strategy, future operations, financial position, estimated revenues, projections, prospects, plans
and objectives of management are forward-looking statements. These forward-looking statements generally are identified by the words “may,”
“might,” “will,” “could,” “would,” “should,” “expect,” “plan,”
“anticipate,” “intend,” “believe,” “estimate,” “seek,” “predict,”
“future,” “project,” “potential,” “ continue,” “shall,” “will,”
and similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are predictions,
projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject
to risks and uncertainties. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties
and other factors. Many factors could cause actual future events to differ materially from the forward-looking statements in this Current
Report on Form 8-K, including factors which are beyond the Company’s control.
Such factors include risks
and uncertainties specific to this transaction, including, but not limited to, adverse effects on the market price of the IAC ordinary
shares and on the Company’s results because of any failure to complete the Transactions (including, due to failure to satisfy the
conditions to the closing of the Transactions); uncertainties as to the timing of the consummation of the Transactions; potential litigation
relating to the Transactions; other economic, business, competitive and/or regulatory factors affecting the proposed Transactions; and
other factors discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 28,
2024 and Quarterly Reports on Form 10-Q filed on May 15, 2024, August 14, 2024 and November 15, 2024 for the quarters
ended March 31, 2024, June 30, 2024 and September 30, 2024, respectively, which are on file with the SEC, and in Company’s
subsequent SEC filings. These filings identify and address important risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they
are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does
not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary
in material respects from those projected in these forward-looking statements. The Company will not and does not undertake any obligation
to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may
be required under applicable securities laws.
Additional Information and Where to Find It
/ Non-Solicitation
In connection with the proposed
transaction, the Company intends to file a registration statement, which will include a preliminary proxy statement/prospectus with the
SEC. The proxy statement/prospectus will be sent to the stockholders of the Company. The Company and Gadfin also will file other documents
regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of the Company are
urged to read the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with
the proposed transaction as they become available because they will contain important information about the proposed transaction. Investors
and security holders will be able to obtain free copies of the proxy statement/prospectus and all other relevant documents filed or that
will be filed with the SEC by the Company and Gadfin through the website maintained by the SEC at www.sec.gov. The documents filed by
the Company with the SEC also may be obtained free of charge at the Company’s website at https://israelacquisitionscorp.com/ or
upon written request to the Company, 12600 Hill Country Blvd, Building R, Suite 275, Bee Cave, Texas, 78738.
Participants in the Solicitation
IAC and its directors and
executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of IAC in connection with the
Business Combination. Gadfin, NewPubco and their respective officers and directors may also be deemed participants in such solicitation.
Information about the directors and executive officers of IAC is set forth in IAC’s Annual Report on Form 10-K, which was filed
with the SEC on March 28, 2024. Other information regarding the participants in the proxy solicitation and a description of their
direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant
materials to be filed with the SEC when they become available.
No Offer or Solicitation
This Current Report on Form 8-K
shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Business
Combination. This Current Report on Form 8-K shall also not constitute an offer to sell or the solicitation of an offer to buy any
securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering
of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption
therefrom.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
* Certain exhibits and schedules to this Exhibit have been omitted
in accordance with Regulation S-K, Item 601(a)(5). IAC agrees to furnish supplementally a copy of all omitted exhibits and schedules
to the Securities and Exchange Commission upon its request.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ISRAEL ACQUISITIONS CORP |
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By: |
/s/ Ziv Elul |
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Name: Ziv Elul |
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Title: Chief Executive Officer and Director |
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Dated: January 27, 2025
Exhibit 2.1
BUSINESS COMBINATION AGREEMENT
BY AND BETWEEN
ISRAEL ACQUISITIONS CORP.
AND
Gadfin
LTD.
DATED AS OF JANUARY 26, 2025
TABLE
OF CONTENTS
Page
BUSINESS COMBINATION AGREEMENT |
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Article I. |
CERTAIN DEFINITIONS |
3 |
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Section 1.1 |
Definitions |
3 |
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Article II. SHARE SPLIT; ACQUISITION MERGER; SPAC MERGER |
27 |
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Section 2.1 |
Share Split. |
27 |
Section 2.2 |
Acquisition Merger. |
27 |
Section 2.3 |
The SPAC Merger |
30 |
Section 2.4 |
Organizational Documents |
31 |
Section 2.5 |
Directors and Officers of the Surviving Companies |
31 |
Section 2.6 |
Effect of the SPAC Merger on Securities of SPAC and Merger Sub |
32 |
Section 2.7 |
Allocation Schedule |
34 |
Section 2.8 |
Closing of the Transactions Contemplated by this Agreement |
35 |
Section 2.9 |
Exchange of Shares and Certificates |
35 |
Section 2.10 |
Withholding |
38 |
Section 2.11 |
Earnout Shares |
40 |
Section 2.12 |
Adjustments |
40 |
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Article III. REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY |
40 |
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Section 3.1 |
Organization and Qualification |
40 |
Section 3.2 |
Capitalization of the Company |
41 |
Section 3.3 |
Authority |
42 |
Section 3.4 |
Financial Statements; Undisclosed Liabilities; Company Reporting Reports |
43 |
Section 3.5 |
Consents and Requisite Governmental Approvals; No Violations |
44 |
Section 3.6 |
Permits |
44 |
Section 3.7 |
Material Contracts; No Defaults |
45 |
Section 3.8 |
Absence of Changes |
47 |
Section 3.9 |
Litigation |
47 |
Section 3.10 |
Compliance with Applicable Law |
48 |
Section 3.11 |
Employee Benefit Plans |
48 |
Section 3.12 |
Environmental Matters |
50 |
Section 3.13 |
Intellectual Property. |
50 |
Section 3.14 |
Privacy |
55 |
Section 3.15 |
Labor Matters; Independent Contractors |
56 |
Section 3.16 |
Insurance |
57 |
Section 3.17 |
Tax Matters |
58 |
Section 3.18 |
Brokers |
59 |
Section 3.19 |
Real and Personal Property |
60 |
Section 3.20 |
Transactions with Affiliates |
60 |
Section 3.21 |
Compliance with International Trade& Anti-Corruption Laws |
61 |
Section 3.22 |
Information Supplied |
62 |
Section 3.23 |
Reserved |
62 |
Section 3.24 |
HSR Act |
62 |
Section 3.25 |
Investigation; No Other Representations |
62 |
Section 3.26 |
EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES |
63 |
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Article IV. REPRESENTATIONS AND WARRANTIES
RELATING TO SPAC |
64 |
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Section 4.1 |
Organization and Qualification |
64 |
Section 4.2 |
Authority |
64 |
Section 4.3 |
Consents and Requisite Governmental Approvals; No Violations |
65 |
Section 4.4 |
Brokers |
66 |
Section 4.5 |
Information Supplied |
66 |
Section 4.6 |
Capitalization of SPAC |
66 |
Section 4.7 |
SEC Filings |
67 |
Section 4.8 |
Trust Account |
68 |
Section 4.9 |
Indebtedness |
68 |
Section 4.10 |
Transactions with Affiliates. |
68 |
Section 4.11 |
Litigation |
69 |
Section 4.12 |
Compliance with Applicable Law. |
69 |
Section 4.13 |
Business Activities |
69 |
Section 4.14 |
Internal Controls; Listing; Financial Statements |
70 |
Section 4.15 |
No Undisclosed Liabilities |
71 |
Section 4.16 |
Tax Matters |
72 |
Section 4.17 |
Absence of Changes |
73 |
Section 4.18 |
Material Contracts; No Defaults. |
73 |
Section 4.19 |
Investment Company Act |
74 |
Section 4.20 |
Compliance with International Trade& Anti-Corruption Laws |
74 |
Section 4.21 |
Investigation; No Other Representations |
75 |
Section 4.22 |
EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES |
76 |
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Article V. COVENANTS |
76 |
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Section 5.1 |
Conduct of Business of the Company |
76 |
Section 5.2 |
Efforts to Consummate; Transaction Litigation; Incorporation of NewPubco, Merger Sub 1 and Merger Sub 2 |
79 |
Section 5.3 |
Confidentiality and Access to Information |
81 |
Section 5.4 |
Public Announcements |
82 |
Section 5.5 |
Tax Matters; Tax Rulings |
83 |
Section 5.6 |
No Solicitation |
87 |
Section 5.7 |
Preparation of Registration Statement / Proxy Statement |
91 |
Section 5.8 |
SPAC Shareholder Approval |
92 |
Section 5.9 |
Conduct of Business of SPAC |
93 |
Section 5.10 |
Nasdaq Listing; SPAC Delisting |
95 |
Section 5.11 |
Trust Account |
96 |
Section 5.12 |
Indemnification; Directors’ and Officers’ Insurance |
96 |
Section 5.13 |
Post-Closing Directors and Officers |
97 |
Section 5.14 |
PCAOB Financials |
99 |
Section 5.15 |
ISA Exemptions.. |
100 |
Section 5.16 |
Post-Closing NewPubco Incentive Equity Plan |
101 |
Section 5.17 |
Post-Closing Employee Stock Purchase Plan |
101 |
Section 5.18 |
Post-Closing Employee Retention Package |
101 |
Section 5.19 |
PIPE Investment |
102 |
Section 5.20 |
Company Permitted Interim Financing |
102 |
Section 5.21 |
Post-Closing Officer and Director Remuneration |
103 |
Section 5.22 |
Transaction Support Agreements |
103 |
Section 5.23 |
Further Assurances |
103 |
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Article VI. CONDITIONS TO CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT |
104 |
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Section 6.1 |
Conditions to the Obligations of the Parties |
104 |
Section 6.2 |
Other Conditions to the Obligations of SPAC |
105 |
Section 6.3 |
Other Conditions to the Obligations of the Company |
106 |
Section 6.4 |
Frustration of Closing Conditions |
107 |
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Article VII. TERMINATION |
107 |
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Section 7.1 |
Termination |
107 |
Section 7.2 |
Effect of Termination |
109 |
Section 7.3 |
Termination Fee |
109 |
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Article VIII. MISCELLANEOUS |
110 |
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Section 8.1 |
Non-Survival |
110 |
Section 8.2 |
Entire Agreement; Assignment |
110 |
Section 8.3 |
Amendment |
111 |
Section 8.4 |
Notices |
111 |
Section 8.5 |
Governing Law |
112 |
Section 8.6 |
Fees and Expenses |
112 |
Section 8.7 |
Construction; Interpretation |
113 |
Section 8.8 |
Exhibits and Schedules |
114 |
Section 8.9 |
Parties in Interest |
114 |
Section 8.10 |
Severability |
114 |
Section 8.11 |
Counterparts; Electronic Signatures |
115 |
Section 8.12 |
No Recourse |
115 |
Section 8.13 |
Extension; Waiver |
115 |
Section 8.14 |
Waiver of Jury Trial |
116 |
Section 8.15 |
Submission to Jurisdiction |
116 |
Section 8.16 |
Remedies |
117 |
Section 8.17 |
Arm’s Length Bargaining; No Presumption Against Drafter |
117 |
Section 8.18 |
Trust Account Waiver |
118 |
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EXHIBITS |
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Exhibit A |
Form of Sponsor Support Agreement |
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Exhibit B |
Form of Transaction Support Agreement |
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ANNEXES |
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Annex I |
Price Adjustment Earnout Merger Consideration |
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Annex II |
Key Terms of Registration Rights Agreement |
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BUSINESS COMBINATION AGREEMENT
This
BUSINESS COMBINATION AGREEMENT (this “Agreement”), dated as of January 26, 2025, is entered into by and between
Israel Acquisitions Corp, a Cayman Islands exempted company (“SPAC”) and Gadfin Ltd., a company domiciled in Israel
(the “Company”). SPAC and the Company shall each be referred to herein from time to time as a “Party”
and collectively as the “Parties.” Each capitalized term used but not otherwise defined herein has the meaning
set forth in Section 1.1.
WHEREAS, SPAC is a blank
check company established for the purpose of effecting a merger, capital share exchange, asset acquisition, stock purchase, reorganization
or other similar Business Combination involving SPAC and one or more businesses or entities;
WHEREAS, after the date of
this Agreement and prior to the Closing Date, the Company shall cause a company organized under the laws of the State of Israel and wholly
owned by a trustee (“NewPubco”) to be formed, and to execute a joinder to this Agreement pursuant to Section 5.2(e);
WHEREAS, after the date of
this Agreement and prior to the Closing Date, the Company shall cause a company organized under the laws of the State of Israel and wholly
owned, direct Subsidiary of NewPubco (“Merger Sub 1”) to be formed, and to execute a joinder to this Agreement pursuant
to Section 5.2(e);
WHEREAS, after the date of
this Agreement and prior to the Closing Date, the Company shall cause a Cayman Islands exempted company and wholly owned, direct Subsidiary
of NewPubco (“Merger Sub 2”) to be formed, and to execute a joinder to this Agreement pursuant to Section 5.2(e);
WHEREAS, NewPubco, Merger
Sub 1, and Merger Sub 2 shall be formed solely for the purposes of consummating the transactions contemplated by this Agreement and the
Ancillary Documents (the “Transactions”);
WHEREAS, prior to the Acquisition
Merger, the Company shall effect the Share Split in accordance with Section 2.1;
WHEREAS,
the Parties intend to effect a Business Combination upon the terms and conditions set forth in this Agreement whereby, on the Closing
Date, (i) following the Share Split, Merger Sub 1 shall be merged with and into the Company (the “Acquisition Merger”),
with the Company as the surviving entity of such Acquisition Merger (the “Acquisition Surviving Company”) and consequently
becoming a wholly-owned Subsidiary of NewPubco through the transfer of its entire issued and outstanding share capital to NewPubco in
exchange for newly-issued NewPubco Ordinary Shares, all in accordance with the terms and conditions of this Agreement; (ii) following
the Acquisition Merger, Merger Sub 2 shall be merged with and into SPAC (the “SPAC Merger” and together with the Acquisition
Merger, the “Mergers” and each individually, a “Merger”), with the SPAC as the surviving entity
of such SPAC Merger and consequently becoming a wholly-owned Subsidiary of NewPubco through the transfer of its entire issued and outstanding
share capital to NewPubco in exchange for newly-issued NewPubco Ordinary Shares (as defined below), all, in accordance with the terms
and conditions of this Agreement; and (iii) following the Mergers, the SPAC Surviving Company shall distribute any remaining cash
in the Trust Account to NewPubco and shall be liquidated (the “Liquidation”);
WHEREAS,
the board of directors of SPAC (the “SPAC Board”) has unanimously (a) approved this Agreement, the Ancillary
Documents (including the Plan of Merger) to which SPAC is or will be a party and the Transactions (including the SPAC Merger), (b) determined
that this Agreement and the Transactions, including the Merger and Plan of Merger, are advisable and are fair to and in the best interests
of SPAC and its shareholders, and (c) recommended, among other things, approval of this Agreement and the Transactions (including
the Merger and the Plan of Merger) by the holders of SPAC Shares entitled to vote thereon;
WHEREAS,
the board of directors of the Company (the “Company Board”) has unanimously (a) (i) approved this
Agreement, the Ancillary Documents to which the Company is or will be a party and the Transactions (including the Share Split and the
Acquisition Merger), (ii) determined that this Agreement and the Transactions, including the Mergers, are advisable and are fair
to and in the best interests of the Company and its shareholders, and (B) considering the financial position of the Company and
Merger Sub 1, no reasonable concern exists that Acquisition Surviving Sub (as defined below), as the surviving entity of the Acquisition
Merger, will be unable to fulfill its obligations to its creditors, and (iii) recommended that the Company Shareholders approve
this Agreement and the Transactions (including the Share Split and Acquisition Merger) Company Shareholders Meetings (collectively, the
“Company Board Recommendation”);
WHEREAS, prior to the Closing,
NewPubco may enter into subscription agreements, in form to be mutually agreed between SPAC and the Company (as amended, supplemented
or modified from time to time, collectively, the “Subscription Agreements”) with certain investors (the “Subscribers”),
pursuant to which, among other things, (i) each Subscriber shall agree to subscribe for and purchase on the Closing Date immediately
following the Closing, and NewPubco shall agree to issue and sell to each such Subscriber on the Closing Date immediately following the
Closing, the number of NewPubco Ordinary Shares set forth in the applicable Subscription Agreement in exchange for the purchase price
set forth therein (the aggregate purchase price under all Subscription Agreements, collectively, the “PIPE Financing Amount,”
and the equity financing under all Subscription Agreements, collectively, hereinafter referred to as, the “PIPE Financing”)
and (ii) if applicable and unless otherwise consented to by the Company, each Subscriber shall agree, for the benefit of SPAC, (a) to
not exercise its Redemption Rights in respect of the SPAC Shares beneficially owned by it, or any other shares, capital stock or other
equity interests, as applicable, of SPAC, which it holds on the date of the Subscription Agreements, on the terms and subject to the
conditions set forth in the applicable Subscription Agreement, and (b) to vote in favor of this Agreement and the Transaction contemplated
herein (including the Mergers);
WHEREAS, concurrently with
the execution of this Agreement, each of the Sponsor, SPAC and the Company are entering into the amended and restated letter agreement
in substantially the form attached hereto as Exhibit A (the “Sponsor Support Agreement”), pursuant to
which, among other things, the Sponsor has agreed to vote in favor of this Agreement and the Transactions contemplated herein (including
the Merger) on the terms and subject to the conditions set forth in the Sponsor Support Agreement;
WHEREAS, concurrently with
or following the execution of this Agreement, certain Company Shareholders (which shall include the Company directors holding Company
Shares concurrently with the execution of this Agreement, collectively, the “Supporting Company Shareholders”), are
entering into transaction support agreements, substantially in the form attached hereto as Exhibit B (collectively, the “Transaction
Support Agreements”), pursuant to which, among other things, each such Supporting Company Shareholder, separately and independently,
has agreed to vote in favor of the approval of the Company Shareholder Proposals at the Company Shareholders Meetings on the terms and
subject to the conditions set forth in the Transaction Support Agreements;
WHEREAS, pursuant to the
Redemption Rights set forth in the SPAC Articles of Association, SPAC is required to provide an opportunity for its Public Shareholders
to have their outstanding SPAC Shares redeemed for the consideration, on the terms and subject to the conditions and limitations set
forth therein and in the Trust Agreement (the “Offer”);
WHEREAS, at Closing, NewPubco,
SPAC, certain Company Shareholders and the Sponsor shall enter into the Registration Rights and Lock-Up Agreement (the “Registration
Rights and Lock-Up Agreement”), in a form to be mutually agreed by the Company and SPAC prior to Closing, provided that
the Registration Rights Agreement shall contain the key terms set forth on Annex II hereto;
WHEREAS, in connection with
the Acquisition Merger, subject to receipt of the approval of the holders of the NewPubco Ordinary Shares and the Company Shareholder
Approval, NewPubco intends to adopt the NewPubco A&R Articles of Association to be effective at the Acquisition Merger Effective
Time;
WHEREAS, in connection with
the Acquisition Merger, the Company intends to adopt the Company A&R Articles of Association to be effective at the Acquisition Merger
Effective Time, subject to receipt of approval by the Company’s Shareholders;
WHEREAS, for U.S. federal
income Tax purposes, it is intended that taken together the Mergers, and the PIPE Financing, if applicable, will qualify as an exchange
under Section 351 of the Code (the “Intended U.S. Tax Treatment”).
NOW, THEREFORE, in consideration
of the premises and the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties, each intending to be legally bound, hereby agree as follows:
Article I.
CERTAIN DEFINITIONS
Section 1.1 Definitions.
As used in this Agreement, the following terms have the respective meanings set forth below.
“102 Awards Tax
Ruling” has the meaning set forth in Section 5.5(e)(i).
“102 Trustee”
means the trustee appointed by the Company under the Company Equity Plan for the purpose of Section 102 of the Ordinance.
“Acquisition
Merger Effective Time” is defined in Section 2.2(d).
“Acquisition Surviving
Company” has the meaning set forth in the preamble to this Agreement.
“Acquisition
Surviving Sub” is defined in Section 2.2(a).
“Additional Financing”
means the amount of (i) any commitments or other Contract for the purchase of any Equity Securities of SPAC approved by the Company,
in advance, in its sole discretion, plus (ii), in the event the Company raises more than $5,000,000, any additional funds raised
by the Company in excess of such $5,000,000 (the “Eligible Company Raised Amount”) prior to, or upon the Closing,
including, for the avoidance of doubt, any Company Permitted Interim Financing, solely in excess of the Eligible Company Raised Amount,
and including, any Eligible Company Raised Amount raised by the Company from any parties (or their Affiliates) that are introduced to
the Company by the SPAC or Affiliates of the SPAC.
“Affiliate”
means, with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, such Person. The term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative thereto; provided,
that in no event shall any investment fund or portfolio company controlling or under common control with the Sponsor be deemed an Affiliate
of the Company or SPAC.
“Aggregate Transaction
Proceeds” means an amount equal to the sum of (a) the aggregate cash proceeds available prior to the Closing for release
to SPAC (or any designee thereof) from the Trust Account, after giving effect to all of the SPAC Shareholder Redemptions, plus
(b) the PIPE Financing Amount plus (c) any Additional Financing plus (d) any SPAC Introduced Financing Amount,
minus (e) payment of SPAC Expenses (including but not limited to deferred underwriting fees, banker fees, and legal fees),
minus (f) payment of all SPAC Liabilities; and minus (g) all fees and expenses in connection with the PIPE Financing;
and minus (h) in the event the Company has not raised at least $3,500,000 in Company Permitted Interim Financing, the payment
of Company Expenses, in all cases, without duplication.
“Agreement”
has the meaning set forth in the preamble to this Agreement.
“Ancillary Documents”
means the Sponsor Support Agreement, the Subscription Agreements, the Transaction Support Agreements, the Registration Rights and Lock-Up
Agreement, the Joinder Agreements and each other agreement, document, instrument and/or certificate contemplated by this Agreement and
executed or to be executed in connection with the transactions contemplated hereby.
“Anti-Corruption
Laws” means, collectively, the Foreign Corrupt Practices Act (FCPA), the UK Bribery Act 2010, Sub-chapter 5 of Chapter 9 of
Part B of the Israeli Penal Law, 5737-1977, and any other applicable anti-money laundering, anti-kickback, anti-bribery or anti-corruption
Laws.
“Assumed Company
Options” has the meaning set forth in Section 2.2(e)(v).
“Assumed Equity
Plan” has the meaning set forth in Section 2.2(e)(v).
“Benchmark Analysis”
has the meaning set forth in Section 5.22.
“Business Combination”
means a proposed initial merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar
business combination with one or more businesses or entities.
“Business Day”
means a day, other than a Friday, Saturday or Sunday, or other day on which commercial banks in New York, New York, Israel or the
Cayman Islands are authorized or required by Law to close.
“Cayman Companies
Law” means the Companies Act (as revised) of the Cayman Islands.
“CBA”
means any collective bargaining agreement or other Contract with any labor union, works council, or other labor organization.
“Closing”
has the meaning set forth in Section 2.8.
“Closing Date”
has the meaning set forth in Section 2.8.
“Closing Filing”
has the meaning set forth in Section 5.4(b).
“Closing Press Release”
has the meaning set forth in Section 5.4(b).
“Code”
means the U.S. Internal Revenue Code of 1986, as amended.
“Companies Registrar”
means the Israeli Registrar of Companies.
“Company”
has the meaning set forth in the preamble to this Agreement.
“Company 102 Options”
means any Company Options granted under Section 102 of the Ordinance.
“Company
102 Shares” means Company Ordinary Shares issued pursuant to the Company Equity Plan upon the exercise of Company 102
Options and at the Acquisition Merger Effective Time held by the 102 Trustee.
“Company A&R
Articles of Association” means the amended and restated articles of association of the Company to be adopted by the Company
on the Closing Date, in such form as mutually agreed by SPAC and the Company.
“Company Acquisition
Proposal” means any offer, proposal or indication of interest from any Third Party relating to any Company Acquisition Transaction.
“Company Acquisition
Transaction” means any transaction or series of related transactions (other than the Transactions) involving: (a) any
acquisition by a Third Party, directly or indirectly, of more than 50% of the outstanding Company Ordinary Shares, or any tender offer
(including a self-tender) or exchange offer that, if consummated, would result in any Third Party beneficially owning (as defined under
Section 13(d) of the Exchange Act) more than 50% of the Company Ordinary Shares; or (b) any acquisition by any Third Party,
directly or indirectly, of more than 50% assets of the Company, measured on a fair market value basis, or to which 50% or more of the
net revenues or net income of the Company are attributable, in the case of each of clause, but excluding any sale of Company Products
or services to Third Party customers, in the ordinary course of business (a) and (b), whether pursuant to a merger, consolidation,
reorganization, recapitalization, liquidation, dissolution, share exchange or other Business Combination, sale of shares of capital stock,
sale of assets, tender offer, exchange offer or similar transaction involving the Company; provided that no Company Permitted
Interim Financing shall be deemed to constitute a Company Acquisition Proposal.
“Company Allocation
Schedule” has the meaning set forth in Section 2.7(c).
“Company Alternative
Acquisition Agreement” has the meaning set forth in Section 5.6(b).
“Company Board”
has the meaning set forth in the recitals to this Agreement.
“Company Board Recommendation”
has the meaning set forth in the recitals to this Agreement.
“Company Board Recommendation
Change” has the meaning set forth in Section 5.6(f).
“Company Disclosure
Schedules” means the disclosure schedules to this Agreement delivered to SPAC by the Company on the date of this Agreement.
“Company Equity
Award” means, as of any determination time, each Company Option, and each other award to any current or former director, manager,
officer, employee, individual independent contractor or other service provider of the Company of rights of any kind to receive any Equity
Security of the Company under any Company Equity Plan or otherwise that is outstanding.
“Company Equity
Plan” means the 2019 Share Incentive Plan, as such may have been amended, supplemented or modified from time to time.
“Company
Equity Value” means an amount equal to $200,000,000, provided, however, in the event that the Company does not record
an amount of at least $4,500,000 in deferred revenue by the Closing Date, the Company Equity Value shall be an amount equal to $150,000,000.
“Company
Merger Consideration” the (i) aggregate Per Company Ordinary Share Merger Consideration and Per Company Preferred
Share Merger Consideration and (ii) the aggregate number of Price Adjustment Earnout Shares determined in accordance with Section 2.11
and Annex I.
“Company Merger
Ratio” means the quotient obtained by dividing (a) the number of NewPubco Ordinary Shares constituting the Company
Merger Consideration, by (b) the number of shares of Company Share Amount. It is intended that as of the date hereof the Company
Merger Ratio shall be 1:1.
“Company
Expenses” means, as of any determination time, the aggregate amount of fees, expense, commissions or other amounts incurred
by or on behalf of, or otherwise payable by, whether or not due, the Company, NewPubco, Merger Sub 1 or Merger Sub 2 in connection with
the negotiation, preparation or execution of this Agreement or any Ancillary Documents, the performance of its covenants or agreements
in this Agreement or any Ancillary Document or the consummation of the Transactions, including (a) the fees and expenses of outside
legal counsel, accountants, advisors, brokers and finders, investment bankers, consultants, or other agents or service providers of the
Company, NewPubco, Merger Sub 1 or Merger Sub 2, (b) other fees, expenses, commissions or other amounts that are expressly allocated
to the Company, NewPubco, Merger Sub 1 or Merger Sub 2 pursuant to this Agreement or any Ancillary Document, including (i) fifty
percent (50%) of all fees payable to the SEC for registering the NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants
and NewPubco Warrants on the Registration Statement and (ii) fifty percent (50%) of all fees payable to the SEC and/or Nasdaq for
the application for listing the NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants and NewPubco Warrants on Nasdaq
(provided, that any fees and expenses of professional advisors incurred by the Company with respect to the registration of the
NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants and NewPubco Warrants on the Registration Statement and the application
for listing the NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants and NewPubco Warrants on Nasdaq shall be deemed
Company Expenses under clause (a)), (c) fifty percent (50%) of all filing fees to Governmental Entities in connection with the Transactions,
including fifty percent (50%) of all costs, fees and expenses incurred in connection with filing under the HSR Act and under each foreign
antitrust Law and with respect to any other registrations, declarations and filings required in connection with the execution and delivery
of this Agreement, the performance of the obligations hereunder and the consummation of the Transactions, if applicable, and (d) any
other fees, expenses, commissions or other amounts that are expressly allocated to the Company, NewPubco, Merger Sub 1 or Merger Sub
2 pursuant to this Agreement or any Ancillary Document; provided, that if any amounts to be included in the calculation of the
Company Expenses which are in a currency other than US dollars, such amounts shall be deemed converted to US dollars at the prevailing
official rate of exchange published by the Federal Reserve Bank of New York for the conversion of such currency or currency unit into
US dollars (except for the conversion of NIS denominated expenses which shall be deemed converted on the basis of the USD-NIS Representative
Rate of Exchange last published) on the fifth (5th) Business Day immediately preceding the Closing. Notwithstanding the foregoing
or anything to the contrary herein, Company Expenses shall not include any SPAC Expenses.
“Company Fundamental
Representations” means the representations and warranties set forth in Section 3.1(a) and Section 3.1(b) (Organization
and Qualification), Section 3.2(a) (Capitalization of the Company), Section 3.3 (Authority), and
Section 3.18 (Brokers).
“Company Israeli
Tax Rulings” has the meaning set forth in Section 5.5(e)(ii).
“Company Licensed
Intellectual Property” means Intellectual Property Rights owned by any Person that is licensed to the Company.
“Company
Material Adverse Effect” means any change, event, effect or occurrence (an “Effect”) that, individually
or in the aggregate with any other Effect, has had or would reasonably be expected to have a material adverse effect on (a) the
business, results of operations, assets, or financial condition of the Company or (b) the ability of the Company to consummate the
Transactions on the terms and conditions of this Agreement by the Termination Date; provided, however, that none of the
following shall be deemed to constitute, alone or in combination, or be taken into account in determining whether a Company Material
Adverse Effect has occurred or would reasonably be expected to occur: any adverse Effect arising after the date of this Agreement from
or related to (i) general business or economic conditions in or affecting the United States or Israel, or changes therein, or the
global economy generally, (ii) acts of war, sabotage or terrorism (including cyberterrorism) in the United States or Israel or any
other territories (including the Current War), (iii) changes in conditions of the economic, financial, banking, credit, capital
or securities markets generally, (iv) changes in any applicable Laws or accounting requirements or principles required by GAAP,
GAAP or any official interpretation thereof, (v) any Effect that is generally applicable to the industries or markets in which the
Company operates, (vi) the execution or public announcement of this Agreement or the pendency or consummation of the Transactions,
including the impact thereof on the relationships, contractual or otherwise, of the Company with employees, customers, investors, contractors,
lenders, suppliers, vendors, partners, licensors, licensees, payors or other third-parties related thereto, (vii) any failure by
the Company to meet, or changes to, any internal or published budgets, projections, forecasts, estimates, guidance, milestones, operating
statistics or predictions for any period (it being understood that the underlying facts giving rise or contributing to such failure or
change may be taken into account in determining whether there has been a Company Material Adverse Effect), or (viii) any hurricane,
tornado, flood, earthquake, tsunami, natural disaster, mudslides, wild fires, epidemics, pandemics (including COVID-19 (or any mutation
or variation thereof)) or other outbreaks of diseases or public health events, acts of God or other natural disasters or comparable events,
or any escalation of the foregoing; provided, however, that any Effect resulting from a matter described in any of the
foregoing clauses (i) through (v) or (viii) may be taken into account in determining whether a Company
Material Adverse Effect has occurred or is reasonably likely to occur to the extent such Effect has a disproportionate adverse effect
on the Company relative to other participants operating in the industries or markets in which the Company operates.
“Company Non-Party
Affiliates” means, collectively, each Company Related Party and each former, current or future Affiliates, Representatives,
successors or permitted assigns of any Company Related Party (other than, for the avoidance of doubt, the Company).
“Company Option”
means, as of the Closing, each option to purchase Company Ordinary Shares that is, whether or not exercisable and whether or not vested,
outstanding and unexercised, whether granted under a Company Equity Plan or otherwise and including all Company Vested Options and Company
Unvested Options.
“Company Ordinary
Shares” means (a) prior to the Share Split ordinary shares with NIS 1 par value of the Company, and (b) from and
after the Share Split, the ordinary shares of the Company with the par value specified in the Company A&R Articles of Association.
“Company Owned Intellectual
Property” means all Intellectual Property Rights that are owned by the Company.
“Company Parties”
means the Company and, from and after their entry into a joinder to this Agreement, NewPubco, Merger Sub 1 and Merger Sub 2.
“Company
Preferred Shares” means (a) prior to the Share Split preferred shares with NIS 1 par value of the Company, and
(b) from and after the Share Split, the preferred shares of the Company with the par value specified in the Company A&R Articles
of Association.
“Company Permitted
Interim Financing” means any financing arrangement, including any equity and/or convertible debt financing, entered into by
the Company from the date of this Agreement through the Closing Date.
“Company
Products” means all products or services from which the Company has, in the past three (3) years preceding the
date hereof, derived or is currently deriving revenue in connection with the sale, license, maintenance or other provision thereof.
“Company Registered
Intellectual Property” means all Registered Intellectual Property owned by the Company.
“Company Related
Party” has the meaning set forth in Section 3.20.
“Company Related
Party Transactions” has the meaning set forth in Section 3.20.
“Company
Share Amount” shall mean, as of immediately prior to the consummation of the Share Split, the total number of (a) issued
and outstanding Company Shares plus (b) the total number of Company Ordinary Shares issuable upon exercise, and/or settlement
of all vested Company Options, Company Warrants and other convertible securities of the Company, including all SAFEs; provided, that
Company Share Amount does not include any Company Unvested Options and Company Ordinary Shares issuable in a PIPE Financing, if any.
“Company Shareholders”
means, collectively, the holders of Company Ordinary Shares and Company Preferred Share as of any determination time prior to the Acquisition
Merger Effective Time.
“Company Shareholder
Approval” means the affirmative vote of the Company Shareholders satisfying the applicable majority, supermajority or other
applicable requirements, represented in person or by proxy at the Company Shareholders Meetings, approving the Company Shareholder Proposals
in accordance with the Governing Documents of the Company, the Israeli Companies Law and applicable Law.
“Company Shareholder
Proposals” means the proposals for (a) the adoption and approval of this Agreement and Transactions, including the Acquisition
Merger, (b) the adoption and approval of each other proposal reasonably agreed to by the Company and SPAC as necessary or appropriate
in connection with the consummation of the Transactions that would require the approval of the requisite number of Company Ordinary Shares
and (c) the adoption of the Company A&R Articles of Association and the NewPubco A&R Articles of Association.
“Company Shareholders
Meetings” has the meaning set forth in Section 5.7.
“Company Shares”
means the Company Ordinary Shares and the Company Preferred Shares.
“Company Warrants”
means all outstanding warrants to purchase Company Shares.
“Company Unvested
Options” means as of immediately prior to Acquisition Merger Effective Time, all unvested Company Options, outstanding and
unexercised.
“Company Vested
Options” means as of immediately prior to Acquisition Merger Effective Time, all vested Company Options, outstanding and unexercised.
“Confidentiality
Agreement” means, that certain Non-Disclosure Agreement, dated as of October 3, 2023, by and between the Company and SPAC.
“Consent”
means any notice, authorization, qualification, registration, filing, notification, waiver, Order, clearance, consent or approval to
be obtained from, filed with or delivered to, a Governmental Entity or other Person.
“Contract”
or “Contracts” means any agreement, contract, license, franchise, note, bond, mortgage, indenture, guarantee, lease,
obligation, undertaking or other commitment or arrangement (whether oral or written) that is legally binding upon a Person or any of
his, her or its properties or assets, and any amendments thereto.
“Converted Warrant”
has the meaning set forth in Section 2.2(e)(iv).
“Copyrights”
has the meaning set forth in the definition of Intellectual Property Rights.
“COVID-19”
means SARS-CoV-2, coronavirus or COVID-19, and any evolutions thereof or related or associated epidemics, pandemic or disease outbreaks.
“Creator”
has the meaning set forth in Section 3.13(d).
“Current
War” means the Israel-Hamas war and the Israel-Hizballah or Iran or its proxies or Yemen related armed hostilities and military
conflicts which have started on October 7th, 2023 and continue as of the date hereof or will continue hereinafter.
“D&O Persons”
has the meaning set forth in Section 5.12(a).
“Data Security Requirements”
means, collectively, all of the following to the extent relating to Processing or otherwise relating to data security, or data security
breach notification requirements and applicable to the Company, to the conduct of its businesses, or to any of the IT Assets used for
Processing: (a) all applicable Laws, rules and regulations in relation to (i) data protection, (ii) privacy, and
(iii) the confidentiality, collection, use, handling, processing, security, protection or transfer of Personal Information, namely,
California Consumer Privacy Act of 2018, Israeli Protection of Privacy Law, 5741-1981 and all regulations promulgated thereto, the
General Data Protection Regulation (GDPR) (EU) 2016/679) and the Japan Act on the Protection of Personal Information (APPI), as applicable;
and (b) terms of any contracts into which the Company has entered or by which it is otherwise legally bound relating to the collection,
use, storage, disclosure, or cross-border transfer of Personal Information.
“Dilution Cap”
has the meaning set forth in Section 2.6(h).
“Dissenting SPAC
Share” has the meaning set forth in Section 2.6(f).
“Earnout Pro Rata
Portion” means with respect to each Person that is a Company Shareholder as of immediately prior to the Acquisition Merger
Effective Time, a fraction expressed as a percentage equal to (i) the number of Company Shares held by such Person divided by (ii) the
total number of outstanding Company Shares held by all such Persons, in each case, measured as of immediately prior to the Acquisition
Merger Effective Time.
“Employee Benefit
Plan” means (a) each severance, gratuity, termination indemnity, incentive or bonus, retention, change in control, deferred
compensation, profit sharing, retirement, welfare, post-employment welfare, vacation or paid-time-off, stock purchase, stock option or
equity incentive plan, program, policy, Contract or arrangement and (b) each other equity or equity-based, termination, severance,
transition, employment, individual independent contractor, fringe benefit, or other compensation or benefit plans, agreements, programs,
policies or other arrangements that the Company maintains, sponsors, contributes to or is required to contribute to, or under or with
respect to which the Company has or could reasonably be expected to have any Liability or obligation to provide compensation or benefits
to or for the benefit of any of its current or former employees, officers, directors or individual independent contractors, other than
any statutory plan, program or arrangement that is required by applicable Law or that is sponsored or maintained by a Governmental Entity,
or as required under applicable Law, CBA and/or any extension order, or, if applicable, under Section 14 Arrangement under the Israeli
Severance Pay Law 5723-1963 and the order of the Minister of Labor and Social Affairs as of June 30, 1998.
“Environmental Condition”
means the generation, discharge, emission or release into the environment (including, without limitation, ambient air, surface water,
groundwater or land), of any Hazardous Substances by any person in respect of which remedial action is required under any Environmental
Laws or as to which any liability is currently or in the future imposed upon any person based upon the acts or omissions of any person
with respect to any Hazardous Substances or reporting with respect thereto.
“Environmental Laws”
means all Laws, Orders or binding policy concerning pollution, protection of the environment, natural resources, or human health or safety
(to the extent relating to exposure to Hazardous Substances), including the generation, use, treatment, storage, disposal or release
of any Hazardous Substance.
“Equity Securities”
means any share, share capital, capital stock, partnership, membership, joint venture or similar interest in any Person (including any
stock appreciation, phantom stock, profit participation or similar rights), and any option, warrant, right or security convertible, exchangeable
or exercisable for shares, share capital, capital stock, partnership, membership, joint venture or similar interests prior to or at the
Closing.
“ESPP”
has the meaning set forth in Section 5.18.
“ETC”
means Equiniti Trust Company, LLC, a New York limited liability trust company.
“Exchange Act”
means the U.S. Securities Exchange Act of 1934, as amended.
“Exchange Agent”
has the meaning set forth in Section 2.9(a).
“Exchange Agent
Agreement” has the meaning set forth in Section 2.9(a).
“Exchange Fund”
has the meaning set forth in Section 2.9(c).
“Federal Securities
Laws” means the Exchange Act, the Securities Act and the other U.S. federal securities laws and the rules and regulations
of the SEC promulgated thereunder or otherwise.
“Financial Statements”
has the meaning set forth in Section 3.4(a).
“Fraud”
means common law fraud under New York law.
“GAAP”
means United States generally accepted accounting principles.
“Governing Documents”
means the legal document(s) by which any Person (other than an individual) establishes its legal existence or which govern its internal
affairs. For example, the “Governing Documents” of a U.S. corporation are its certificate or articles of incorporation and
by-laws, the “Governing Documents” of a U.S. limited partnership are its limited partnership agreement and certificate of
limited partnership, the “Governing Documents” of a U.S. limited liability company are its operating or limited liability
company agreement and certificate of formation, the “Governing Documents” of an Israeli company are its memorandum of association
(if applicable) and articles of association and the “Governing Documents” of an exempted company incorporated in the Cayman
Islands are its certificate of incorporation, memorandum of association and articles of association.
“Governmental Entity”
means any United States, Israeli or other foreign or international (a) federal, state, local, municipal or other government,
(b) governmental or quasi-governmental entity of any nature (including any governmental agency, branch, department, official, or
entity and any court or other tribunal), (c) body exercising or entitled to exercise any administrative, executive, judicial, legislative,
police, regulatory, labor, or taxing authority or power of any nature, including any arbitrator or arbitral tribunal (public or private)
or (d) the Israel Innovation Authority (previously known as the Office of the Chief Scientist at the Israeli Ministry of Economy),
any other body operating under the Israeli Ministry of the Economy or the Israeli Ministry of Finance and/or the ITA, or the Israeli
Ministry of Defense.
“Governmental Grant”
means any grant, incentive, subsidy, award, loan, participation, exemption, status, cost sharing arrangement, reimbursement arrangement
or other benefit, relief or privilege provided or made available by or on behalf of or under the authority of the Israel Innovation Authority,
the Investment Center of the Israeli Ministry of Economy and Industry, the ITA (solely with respect to “ benefitted” or “approved”
enterprise status or similar programs), the State of Israel, and any other bi- or multi-national grant program, framework or foundation
(including the BIRD foundation) for research and development, the European Union, the Fund for Encouragement of Marketing Activities
of the Israeli Government or any other Governmental Entity.
“Hazardous Substance”
means any hazardous, toxic, explosive or radioactive material, substance, waste or other pollutant that is regulated by, or may give
rise to Liability pursuant to, any Environmental Law, or has been defined, designated, regulated or listed by any Governmental Entity
as “hazardous,” “toxic,” a “pollutant,” a “contaminant,” or words of similar import under
any Environmental Law, including any petroleum products or byproducts, asbestos, lead, polychlorinated biphenyls, per- and poly-fluoroakyl
substances, or radon, in each case, to the extent regulated by any Environmental Law, however, notwithstanding the foregoing, shall not
include de minimis or immaterial quantities of the substances enumerated therein.
“HSR Act”
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.
“IIA”
has the meaning set forth in Section 3.13(o).
“IIA Funded Technology”
has the meaning set forth in Section 3.13(o).
“IIA Grants”
has the meaning set forth in Section 3.13(r).
“Indebtedness”
means, as of any time, without duplication, with respect to any Person, the outstanding principal amount of, accrued and unpaid interest
on, fees, expenses and other payment obligations (including any prepayment penalties, premiums, costs, breakage, termination fees or
other amounts payable upon the discharge thereof) arising under or in respect of (a) indebtedness, whether or not contingent, for
borrowed money or indebtedness issued or incurred in substitution or exchange for indebtedness for borrowed money, (b) other obligations
evidenced by any note (but excluding any SAFEs or warrants), bond, debenture or other debt security, (c) reimbursement and other
obligations with respect to letters of credit, bank guarantees, bankers’ acceptances or other similar instruments, in each case,
solely to the extent drawn, and (d) any of the obligations of any other Person of the type referred to in clauses (a) through
(d) above directly or indirectly guaranteed by such Person or secured by any assets of such Person, whether or not such Indebtedness
has been assumed by such Person.
“Intellectual Property
Rights” means all intellectual property and proprietary rights protected, created or arising under the Laws of the United States
or any other jurisdiction or under any international convention, including all (a) patents and patent applications, industrial designs
and design patent rights, including any continuations, divisionals, continuations-in-part and provisional applications and statutory
invention registrations, and any patents issuing on any of the foregoing and any reissues, reexaminations, substitutes, supplementary
protection certificates, extensions of any of the foregoing (collectively, “Patents”); (b) trademarks, service
marks, trade names, service names, brand names, trade dress rights, logos, corporate names and other source or business identifiers,
together with the goodwill associated with any of the foregoing, and all applications, registrations, extensions and renewals of any
of the foregoing (collectively, “Marks”); (c) Internet domain names; (d) copyrights and works of authorship,
and database and design rights, whether or not registered or published, and all registrations, applications, renewals, extensions and
reversions of any of any of the foregoing (collectively, “Copyrights”); (e) trade secrets and other intellectual
property rights in methodologies, know-how and confidential and proprietary information, including invention disclosures, inventions
and formulae, whether patentable or not; and (f) intellectual property rights in or to Software or other technology.
“Intended U.S. Tax
Treatment” has the meaning set forth in the recitals to this Agreement.
“Investment Company
Act” means the Investment Company Act of 1940, as amended.
“IP Contracts”
has the meaning set forth in Section 3.13(c).
“IPO”
has the meaning set forth in Section 8.18.
“IRS”
means the United States Internal Revenue Service.
“ISA”
means the Israel Securities Authority.
“Israeli Companies
Law” or “ICL” means the Israeli Companies Law, 5759-1999, and all the regulations, rules and orders
promulgated thereunder, as amended.
“Israeli Securities
Law” means the Israeli Securities Law, 5728-1968, and all the regulations, rules and orders promulgated thereunder, as
amended.
“Israeli Tax Rulings”
has the meaning set forth in Section 5.5(e)(iii).
“IT Assets”
means any and all computers, Software, hardware, firmware, middleware, servers, workstations, routers, hubs, switches, data communications
lines, databases, and all other information technology equipment and all associated documentation, in each case, owned, leased, licensed
or under the control of the Company and used in connection with, the conduct of the business of the Company as currently conducted.
“ITA”
means the Israel Tax Authority.
“JOBS Act”
means the Jumpstart Our Business Startups Act of 2012.
“Joinder Agreement”
has the meaning set forth in Section 5.2(e).
“knowledge”
or “to the knowledge” or any derivations thereof means the actual knowledge after reasonable investigation, as to
a specified fact or event, of: (a) with respect to the Company, the individuals listed on Section 1.1(a) of the Company
Disclosure Schedules and (b) with respect to SPAC, the individuals listed on Section 1.1(a) of the SPAC Disclosure Schedules.
“Key Company Shareholders”
shall mean, as of a given date, the officers, directors and holders of at least 5% of the issued and outstanding Company Ordinary Shares
(on an as converted basis) as of such date.
“Latest Balance
Sheet” has the meaning set forth in Section 3.4(a).
“Law”
means any federal, state, local, foreign (including, for the avoidance of doubt, Israel), national or supranational statute, law
(including common law), act, statute, ordinance, treaty, rule, code, regulation, Order, judgment, injunction, ruling, award, decree,
writ or other binding directive or guidance issued, promulgated or enforced by a Governmental Entity having jurisdiction over a given
matter.
“Leased Real Property”
has the meaning set forth in Section 3.19(b).
“Letter of Transmittal”
means the letter of transmittal, substantially in the formed agreed to between SPAC and the Company and with such modifications, amendments
or supplements as may be requested by the Exchange Agent and mutually agreed to by each of SPAC and the Company (in either case, such
agreement not to be unreasonably withheld, conditioned or delayed).
“Liability”
or “liability” means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent,
known or unknown, matured or unmatured or determined or determinable, including those arising under any Law, Proceeding or Order and
those arising under any Contract, agreement, arrangement, commitment or undertaking.
“Lien”
means any mortgage, pledge, security interest, encumbrance, lien, license or sub-license, charge, assignment by way of security, hypothecation,
or other similar encumbrance or interest (including, in the case of any Equity Securities, any voting, transfer or similar restrictions).
“Lookback
Date” means January 1, 2022.
“Malicious Code”
means any “back door,” “drop dead device,” “time bomb,” “Trojan horse,” “virus,”
“worm,” “spyware” or “adware” (as such terms are commonly understood in the software industry) or
other harmful surreptitious code, including code designed to delete, damage, deactivate, disable, harm or otherwise impede in any manner
(other than as agreed upon with the other party) the operation of any IT Asset.
“Marks”
has the meaning set forth in the definition of Intellectual Property Rights.
“Material Contracts”
has the meaning set forth in Section 3.7(a).
“Material Permits”
has the meaning set forth in Section 3.6.
“Mergers”
has the meaning set forth in the preamble to this Agreement.
“Merger Proposal”
has the meaning set forth in Section 5.15(a).
“Merger Sub
1” has the meaning set forth in the preamble to this Agreement.
“Merger Sub
2” has the meaning set forth in the preamble to this Agreement.
“Minimum Cash Condition”
has the meaning set forth in Section 6.3(e).
“Nasdaq”
means The Nasdaq Global Market.
“NewPubco”
has the meaning set forth in the preamble to this Agreement.
“NewPubco A&R
Articles of Association” means the amended and restated articles of association of NewPubco to be adopted by NewPubco on the
Closing Date, to be mutually agreed by the Parties.
“NewPubco Board”
has the meaning set forth in the recitals to this Agreement.
“NewPubco Ordinary
Shares” means ordinary shares of no par value of NewPubco.
“NewPubco Shareholders”
means the shareholders of NewPubco.
“NewPubco Warrants”
means a warrant of NewPubco entitling the holder to purchase one (1) share of NewPubco Ordinary Shares.
“Non-Party Affiliate”
has the meaning set forth in Section 8.12.
“Off-the-Shelf Software”
means any Software that is made generally and widely available to the public on a commercial basis and is licensed to the Company on
a non-exclusive basis.
“Offer”
has the meaning set forth in the recitals to this Agreement.
“Officer”
has the meaning set forth in Section 5.13(d).
“Order”
means any writ, order, judgment, injunction, decision, determination, award, ruling, verdict or decree entered, issued or rendered by
any Governmental Entity.
“Ordinance”
means the Israeli Income Tax Ordinance [New Version], 5721-1961, as amended, and the rules, Orders and regulations promulgated
thereunder, as may be amended from time to time.
“ordinary course
of business” means, when referring to the Company, actions taken by the Company that are consistent with the usual day-to-day
customs and practices of the Company in the ordinary course of operations of the business.
“Party(ies)”
has the meaning set forth in the preamble to this Agreement.
“Patents”
has the meaning set forth in the definition of Intellectual Property Rights.
“Payee”
has the meaning set forth in Section 2.10(b).
“Payor”
has the meaning set forth in Section 2.10(a).
“PCAOB”
means the Public Company Accounting Oversight Board.
"PCAOB
Related Default” has the meaning set forth Section 5.14.
“Permits”
means any approvals, authorizations, clearances, licenses, registrations, permits or certificates of a Governmental Entity.
“Permitted Liens”
means (a) mechanic’s, materialmen’s, carriers’, repairers’ and other similar statutory Liens arising or
incurred in the ordinary course of business for amounts that are not yet due and payable or are being contested in good faith by appropriate
Proceedings, (b) Liens for Taxes, assessments or other governmental charges not yet due and payable as of the Closing Date or which
are being contested in good faith by appropriate Proceedings and, to the extent applicable with respect to the Company, for which sufficient
reserves have been established in accordance with GAAP, (c) all matters of record, as well as unrecorded encumbrances and restrictions
on real property (including easements, covenants, conditions, rights of way and similar restrictions) that do not prohibit or materially
interfere with any of the Company’s use or occupancy of such real property, (d) matters that would be disclosed by a true
and accurate ALTA survey or a physical inspection of the real property, (e) zoning, building codes and other land use Laws regulating
the use or occupancy of real property or the activities conducted thereon that are imposed by any Governmental Entity having jurisdiction
over such real property and which are not materially violated by the use or occupancy of such real property or the operation of the businesses
of the Company and do not prohibit or materially interfere with any of the Company’s use or occupancy of such real property, (f) cash
deposits or cash pledges to secure the payment of workers’ compensation, unemployment insurance, social security benefits or obligations
arising under similar Laws or to secure the performance of public or statutory obligations, surety or appeal bonds, and other obligations
of a like nature, in each case in the ordinary course of business and which are not yet due and payable, (g) non-exclusive licenses
of Intellectual Property Rights granted in the ordinary course of business, and (h) the Liens set forth on Section 1.1(b) of
the SPAC Disclosure Schedules and Section 1.1(b) of the Company Disclosure Schedules and/or such other Liens as would not have
a material impact on the operation of the businesses of the Company.
“Person”
means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association,
trust, joint venture or other similar entity, whether or not a legal entity, or Governmental Entity.
“Personal Information”
means any data or information that constitutes personal data or personal information under any applicable Law.
“PIPE Financing”
has the meaning set forth in the recitals to this Agreement.
“PIPE Financing
Amount” has the meaning set forth in the recitals to this Agreement.
“PIPE Investors”
has the meaning set forth in Section 5.20(a).
“PIPE Shares”
means the shares of NewPubco held by the PIPE Investors.
“PIPE Subscription
Agreements” has the meaning set forth in Section 5.20(a).
“Plan of Merger”
means the Plan of Merger, in such form as mutually agreed by SPAC and the Company prior Closing, to be executed and delivered by SPAC,
NewPubco and Merger Sub 2 under Cayman Companies Law as provided by the terms hereof.
“Post-Termination
Fee” has the meaning set forth in Section 7.3(b).
“Price
Adjustment Earnout Shares” has the meaning in Section 2.11.
“Proceeding”
means any lawsuit, litigation, action, audit, investigation, inquiry, examination, claim, complaint, charge, grievance, legal proceeding,
administrative enforcement proceeding, suit or arbitration (in each case, whether civil, criminal or administrative and whether public
or private) pending by or before or otherwise involving any Governmental Entity (other than office actions and similar proceedings in
connection with the prosecution of applications for registration or issuance of Intellectual Property Rights).
“Processing”
means any operation or set of operations which is performed on Personal Information or on sets of Personal Information, whether or not
by automated means, such as collection, recording, organization, structuring, storage, adaptation, alteration, retrieval, use, disclosure
by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure or destruction.
“Proprietary Software”
has the meaning set forth in Section 3.13(l).
“Proxy Statement”
has the meaning set forth in Section 5.7.
“Public
Shareholders” has the meaning set forth in Section 8.18.
“Per Share Company
Value” shall mean the quotient obtained by dividing (a) the Company Equity Value by (b) the Company Share Amount.
“Public Software”
means any Software application that is licensed pursuant to (a) a license that is approved by the Open Source Initiative and listed
at http://www.opensource.org/licenses, including the GNU General Public License (GPL), the GNU Lesser General Public License (LGPL),
the GNU Affero GPL, the MIT license, the Eclipse Public License, the Common Public License, the CDDL, the Mozilla Public License (MPL),
the Artistic License, the Netscape Public License, the Sun Community Source License (SCSL), and the Sun Industry Standards License (SISL)
or any open source, copyleft or similar licensing and distribution models; or (b) any license to Software that is considered “free”
Software or “open source” Software by the Open Source Foundation or the Free Software Foundation or other similar licensing
and distribution models, in each case of (a) or (b), whether or not source code is available or included in such license,
and including under any terms or conditions that impose any requirement that any Software using, linked with, incorporating, distributed
with or derived from such Public Software (i) be made available or distributed or disclosed in source code form; (ii) be licensed
for purposes of making derivative works; or (iii) be redistributable at no, or a nominal, charge.
“Real Property Leases”
means all leases, sub-leases, licenses or other agreements, in each case, pursuant to which the Company leases, sub-leases or otherwise
occupies any real property.
“Redemption Rights”
means the redemption rights provided for in Article 24 of the SPAC Articles of Association.
“Registered Intellectual
Property” means all Intellectual Property Rights that are the subject of an application, certificate, filing, registration,
or other issuance, filed with, or recorded by any Governmental Entity or other legal authority, including issued Patents, pending Patent
applications, registered Marks, pending applications for registration of Marks, registered Copyrights, pending Copyright applications,
and Internet domain name registrations.
“Registration Rights
and Lock-Up Agreement” has the meaning set forth in the recitals to this Agreement.
“Registration Statement”
has the meaning set forth in Section 5.7.
“Registration Statement
/ Proxy Statement” has the meaning set forth in Section 5.7.
“Released Claims”
has the meaning set forth in Section 8.18.
“Representatives”
means with respect to any Person, such Person’s Affiliates and its and such Affiliates’ respective directors, managers, officers,
employees, accountants, consultants, advisors, attorneys, agents and other representatives.
“Retention
Package” has the meaning set forth in Section 5.19.
“SAFEs”
mean the simple agreements for future equity entered into by and between the Company and certain investors.
“Sanctioned Country”
means any jurisdiction that is, or has been in the past five (5) years, the subject or target of Sanctions, including Cuba, Iran,
North Korea, Syria, the temporarily occupied Crimea region and so-called Donetsk People’s Republic (DNR) and Luhansk People’s
Republic (LNR) regions of Ukraine.
“Sanctioned Person”
means any Person that is the target of Sanctions, including (a) any Person listed in any U.S. or applicable non-U.S. Sanctions-
or export-related list of designated Persons, including the lists maintained by the Office of Foreign Assets Control of the U.S. Department
of Treasury or the U.S. Department of State, the United Nations Security Council, the European Union, any Member State of the European
Union, the United Kingdom, or the State of Israel; (b) any Person in which a Person described in clause (a) otherwise controls
or directly or indirectly owns a 50% or greater interest; (c) any Person operating, organized, resident, or otherwise located in
a Sanctioned Country; (d) the government of a Sanctioned Country or the Government of Venezuela; or (e) any Person with which
U.S. Persons are otherwise prohibited from doing business with under any Sanctions or Trade Control Laws.
“Sanctions”
means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government,
including those administered by the Office of Foreign Assets Control of the U.S. Department of Treasury or the U.S. Department of State,
(b) the United Nations Security Council, the European Union, any European Union member state or His Majesty’s Treasury of
the United Kingdom, or the State of Israel, or (c) United Nations or United Kingdom sanctions as implemented under the laws
of the Cayman Islands or extended to the Cayman Islands by the Orders of His Majesty in Council.
“Sarbanes-Oxley
Act” means the Sarbanes-Oxley Act of 2002.
“SEC”
means the U.S. Securities and Exchange Commission.
“Securities Act”
means the Securities Act of 1933, as amended.
“Securities Laws”
means Federal Securities Laws and other applicable foreign and domestic securities or similar Laws.
“Share Split”
has the meaning set forth in Section 2.1(a).
“Signing Filing”
has the meaning set forth in Section 5.4(b).
“Signing Press Release”
has the meaning set forth in Section 5.4(b).
“Software”
shall mean any and all (a) computer programs, including any and all software implementations of algorithms, models and methodologies,
whether in source code or object code; (b) databases, whether machine readable or otherwise; (c) descriptions, flowcharts and
other work product used to design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats, firmware,
development tools, templates, comments, menus, buttons and icons, files, data, scripts, application programming interfaces, architecture,
algorithms related to any of the foregoing; (d) all documentation, including user manuals, design notes, programmers’ notes,
and other training documentation, related to any of the foregoing and all media and other tangible property necessary for the delivery
or transfer of any of the foregoing; and (e) any derivative works, foreign language versions, fixes, upgrades, updates, enhancements,
new versions, previous versions, new releases, and previous releases of any of the foregoing.
“SPAC”
has the meaning set forth in the preamble to this Agreement.
“SPAC Acquisition
Proposal” means (a) any transaction or series of related transactions under which SPAC or any of its controlled Affiliates,
directly or indirectly, (i) acquires or otherwise purchases, or is acquired by or otherwise purchased by, any other Person(s), (ii) solicits,
initiates, knowingly encourages, directly or indirectly, any inquiry, proposal or offer (written or oral) by, or provide any information
to, any Person (other than the Company) concerning any merger, consolidation, purchase of ownership interests or assets of, by or otherwise
involving SPAC, or any recapitalization or a Business Combination or (iii) acquires or otherwise purchases all or a material portion
of the assets or businesses of any other Person(s) (in the case of each of clause (i), (ii) and (iii),
whether by merger, consolidation, recapitalization, purchase or issuance of Equity Securities, tender offer or otherwise) or (iv) otherwise
knowingly cooperate in any way with, or knowingly assist or participate in, or knowingly encourage any effort or attempt by any Person
to do or seek to do any of the foregoing, or (b) any equity, debt or similar investment in SPAC or any of its controlled Affiliates.
SPAC shall, and shall cause its Representatives to, immediately cease and cause to be terminated any and all existing discussions or
negotiations with any Person with respect to any SPAC Acquisition Proposal. Notwithstanding the foregoing or anything to the contrary
herein, none of this Agreement, the Ancillary Documents nor the Transactions shall constitute a SPAC Acquisition Proposal.
“SPAC Allocation
Schedule” has the meaning set forth in Section 2.7(a).
“SPAC Alternative
Acquisition Agreement” has the meaning set forth in Section 5.6(j).
“SPAC Articles of
Association” means the Third Amended and Restated Memorandum and Articles of Association of SPAC, to be adopted on or around,
January 8, 2025.
“SPAC Board”
has the meaning set forth in the recitals to this Agreement.
“SPAC Board Recommendation”
has the meaning set forth in Section 5.8.
“SPAC Class A
Shares” means SPAC’s Class A ordinary shares, par value $0.0001 per share.
“SPAC Class B
Shares” means SPAC’s Class B ordinary shares, par value $0.0001 per share.
“SPAC Disclosure
Schedules” means the disclosure schedules to this Agreement delivered to the Company by SPAC on the date of this Agreement.
“SPAC
Expenses” means, as of any determination time, the aggregate amount of fees, expense, commissions or other amounts incurred
by or on behalf of, or otherwise payable by, whether or not due, SPAC in connection with the negotiation, preparation or execution of
a Business Combination, any other prior Business Combination explored by the SPAC, this Agreement or any Ancillary Documents, the performance
of its covenants or agreements in this Agreement or any Ancillary Document or the consummation of the Transactions, including, in each
case, as applicable: (a) the fees and expenses of outside legal counsel, accountants, advisors, brokers and finders, investment
bankers, consultants, or other agents or service providers of SPAC, (b) other fees, expenses, commissions or other amounts that
are expressly allocated to SPAC pursuant to this Agreement or any Ancillary Document, including (i) fifty percent (50%) of all fees
payable to the SEC for registering the NewPubco Ordinary Shares and NewPubco Warrants on the Registration Statement, (ii) fifty
percent (50%) of all fees payable to the SEC and/or Nasdaq for the application for listing the NewPubco Ordinary Shares and NewPubco
Warrants on Nasdaq and (iii) all of the fees of the financial printer, round lot analysis, proxy solicitors and transfer
agent fees (provided, that any fees and expenses of professional advisors incurred by SPAC with respect to the registration of
the NewPubco Ordinary Shares and NewPubco Warrants on the Registration Statement and the application for listing the NewPubco Ordinary
Shares and NewPubco Warrants on Nasdaq shall be deemed SPAC Expenses under clause (a)), (c) fifty percent (50%) of all filing fees
to Governmental Entities in connection with the Transactions, including fifty percent (50%) of all costs, fees and expenses incurred
in connection with filing under the HSR Act and under each foreign antitrust Law and with respect to any other registrations, declarations
and filings required in connection with the execution and delivery of this Agreement, the performance of the obligations hereunder and
the consummation of the Transactions, if applicable, (d) the premiums, commissions and other fees paid or payable in connection
with obtaining directors’ and officers’ liability insurance coverage pursuant to Section 5.12,
and (e) any other fees, expenses, commissions or other amounts that are expressly allocated to SPAC pursuant to this Agreement or
any Ancillary Document; provided, that if any amounts to be included in the calculation of SPAC Expenses which are in a currency
other than US dollars, such amounts shall be deemed converted to US dollars at the prevailing official rate of exchange published by
the Federal Reserve Bank of New York for the conversion of such currency or currency unit into US dollars (except for the conversion
of NIS denominated expenses which shall be deemed converted on the basis of the USD-NIS Representative Rate of Exchange last published)
on the fifth (5th) Business Day immediately preceding the Closing. Notwithstanding the foregoing or anything to the contrary
herein, SPAC Expenses shall not include any Company Expenses.
“SPAC Financial
Statements” means the 2022 and 2023 audited financial statements and the 2024 unaudited financial statements of the SPAC as
disclosed in the following SEC filings:
1. SPAC’s
annual reports on Form 10-K for fiscal years 2022 and 2023;
2. SPAC’s
quarterly reports on Form 10-Q for the periods ended March 31st, 2024, June 30th, 2024, and September 30th,
2024; and
3. SPAC’s
Form S-1 filed on January 11, 2023 (File No. 333-263658).
“SPAC Fundamental
Representations” means the representations and warranties set forth in Section 4.1 (Organization and Qualification),
Section 4.2 (Authority), Section 4.4 (Brokers), and Section 4.6(a) (Capitalization
of SPAC).
“SPAC
Introduced Financing Amount” means any capital raised by the Company from any parties (or their Affiliates) that are introduced
to the Company by the SPAC or Affiliates of the SPAC between October 17, 2024, and the execution of this Agreement.
“SPAC Israeli Tax
Rulings” has the meaning set forth in Section 5.5(e)(iii).
“SPAC
Liabilities” means, as of any determination time, the aggregate amount of Liabilities of SPAC that would be accrued on a balance
sheet in accordance with GAAP, whether or not such Liabilities are due and payable as of such time. Notwithstanding the foregoing
or anything to the contrary herein, SPAC Liabilities shall not include any SPAC Expenses.
“SPAC
Material Adverse Effect” means any Effect that, individually or in the aggregate with any other Effect, has had or would reasonably
be expected to have a material adverse effect on (a) the business, results of operations or financial condition of SPAC, or (b) the
ability of SPAC to consummate the Transactions contemplated by this Agreement on the terms and conditions of this Agreement; provided,
however, that, in the case of clause (a), none of the following shall be deemed to constitute, alone or in combination,
or be taken into account in determining whether a SPAC Material Adverse Effect has occurred or is reasonably likely to occur: any adverse
Effect arising after the date of this Agreement from or related to (i) general business or economic conditions in or affecting the
United States or Israel, or changes therein, or the global economy generally, (ii) acts of war, sabotage or terrorism (including
cyberterrorism) in the United States or Israel or any other territories, (iii) changes in conditions of the economic, banking, credit,
capital or securities markets generally, (iv) changes in any applicable Laws or accounting requirements or principles required by
or GAAP or any official interpretation thereof, (v) the execution or public announcement of this Agreement or the pendency or consummation
of the Transactions, including the impact thereof on the relationships, contractual or otherwise, of SPAC with employees, investors,
contractors, lenders, partners or other third-parties related thereto (provided that the exception in this clause (v) shall
not apply to the representations and warranties set forth in Section 4.3(b) to
the extent that its purpose is to address the consequences resulting from the public announcement or pendency or consummation of the
Transactions or the condition set forth in Section 6.2
to the extent it relates to such representations and warranties), (vi) any hurricane, tornado, flood, earthquake, tsunami, natural
disaster, mudslides, wild fires, epidemics, pandemics (including COVID-19 (or any mutation or variation thereof)) or other outbreaks
of diseases or public health events, acts of God or other natural disasters or comparable events; provided, however, that
any Effect resulting from a matter described in any of the foregoing clauses (i) through (iv) or (vi) may
be taken into account in determining whether a SPAC Material Adverse Effect has occurred or is reasonably likely to occur to the extent
such Effect has a disproportionate adverse effect on SPAC, taken as a whole, relative to other participants operating in the industries
or markets in which SPAC operates.
“SPAC Merger”
has the meaning set forth in the recitals to this Agreement.
“SPAC Merger Closing
Date” has the meaning set forth in Section 2.3(a).
“SPAC Merger Consideration”
has the meaning set forth in Section 2.6(ii).
“SPAC Merger Effective
Time” has the meaning set forth in Section 2.3(b).
“SPAC Non-Party
Affiliates” means, collectively, each SPAC Related Party and each of the former, current or future Affiliates, Representatives,
successors or permitted assigns of any SPAC Related Party (other than, for the avoidance of doubt, SPAC).
“SPAC Prospectus”
has the meaning set forth in Section 8.18.
“SPAC Related Party”
has the meaning set forth in Section 4.10.
“SPAC Related Party
Transactions” has the meaning set forth in Section 4.10.
“SPAC SEC Reports”
has the meaning set forth in Section 4.7.
“SPAC Shares”
means collectively, the SPAC Class A Shares and SPAC Class B Shares.
“SPAC Shareholder
Approval” means approval of the Transaction Proposals by the affirmative vote of the holders of the requisite number of SPAC
Shares entitled to vote thereon, satisfying the applicable majority, supermajority or other applicable requirements, whether in person
or by proxy at the SPAC Shareholders Meeting (or any adjournment thereof), in accordance with the Governing Documents of SPAC, the rules and
regulations of Nasdaq, and applicable Law.
“SPAC Shareholder
Redemption” means the right of the holders of SPAC Shares to redeem all or a portion of their SPAC Shares (in connection with
the Transactions) as set forth in Governing Documents of SPAC and the Trust Agreement.
“SPAC Shareholders”
means, collectively, holders of SPAC Shares and holders of SPAC Warrants.
“SPAC Shareholders
Meeting” has the meaning set forth in Section 5.8.
“SPAC Surviving
Company” has the meaning set forth in Section 2.3(a).
“SPAC Unit”
means a unit of SPAC, consisting of (a) one (1) SPAC Class A Share and (b) one (1) SPAC Warrant.
“SPAC Warrants”
means a warrant entitling the holder to purchase one (1) SPAC Class A Share per warrant at a price of $11.50 per whole share,
subject to adjustment in accordance with the Warrant Agreement.
“Split Factor”
shall mean the quotient obtained by dividing (a) the Per Share Company Value by (b) $10.00.
“Sponsor”
means Israel Acquisitions Sponsor LLC, a Delaware limited liability company.
“Sponsor Shares”
means the shares of the SPAC held by the Sponsor.
“Sponsor Support
Agreement” has the meaning set forth in the recitals to this Agreement.
“Standard
Inbound License” means any Contract for third party Intellectual Property Rights licensed on a non-exclusive basis to the Company
that is generally, commercially available Software and (a) has not been modified or customized for and at the request of the Company,
and (b) is licensed for a one-time or annual fee under $200,000.
“Subscribers”
has the meaning set forth in the recitals to this Agreement.
“Subscription Agreements”
has the meaning set forth in the recitals to this Agreement.
“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership or other legal entity of which (a) if
a corporation, a majority of the total voting power of Equity Securities entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination thereof, or (b) if a limited liability company,
partnership, association or other business entity (other than a corporation), a majority of the partnership or other similar ownership
interests thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more Subsidiaries of such Person
or a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or shall
be a, or control any, managing director or general partner of such business entity (other than a corporation). The term “Subsidiary”
shall include all Subsidiaries of such Subsidiary.
“Superior Offer”
means an unsolicited, bona fide written Company Acquisition Proposal, on terms that the board of directors of the Company, determines,
in its reasonable judgment to be more favorable to its shareholders from a financial point of view than the terms of the Transaction
(including in case the Company implied equity value in such offer is greater than the Company Equity Value).
“Supporting Company
Shareholders” has the meaning set forth in the recitals to this Agreement.
“Tax”
means any federal, state, local or non-United States income, gross receipts, franchise, estimated, alternative minimum, sales, use, transfer,
value added, excise, stamp, customs, duties, ad valorem, real property, personal property (tangible and intangible), capital stock, social
security, national insurance (‘bituach leumi’), national health insurance (‘bituach briyut’), unemployment,
payroll, wage, employment, inflation linkage (‘hefreshei hatzmada’), severance, occupation, registration, environmental,
communication, mortgage, profits, license, lease, service, goods and services, withholding, premium, turnover, windfall profits or other
taxes of any kind whatever, whether computed on a separate or combined, unitary or consolidated basis or in any other manner, together
with any interest, deficiencies, penalties, additions to tax, or additional amounts imposed by any Governmental Entity with respect thereto.
“Tax Return”
means returns, information returns, statements, declarations, claims for refund, schedules, attachments and reports relating to Taxes
filed or required to be filed with any Governmental Entity, including any schedule or attachment thereto and including any amendments
thereof.
“Terminating Party”
has the meaning set forth in Section 7.3(d).
“Termination Date”
has the meaning set forth in Section 7.1(d).
“Termination Fee”
means an amount equal to $10,000,000.
“Third Party”
means any Person or “group” (as defined under Section 13(d) of the Exchange Act) of Persons other than SPAC, the
Company, NewPubco, Merger Sub 1, Merger Sub 2 and their respective Affiliates.
“Threshold Raised
Amount” has the meaning set forth in Section 7.1(i).
“Trade Control Laws”
means any applicable Law related to (a) trade, import and export controls, including the U.S. Export Administration Regulations,
15 C.F.R. Parts 730-774, the Export Controls Act of 2018, 22 U.S.C. 2751 et seq., the International Traffic in Arms Regulations (22 C.F.R.
Parts 120-130), the Foreign Trade Regulations (15 C.F.R. Part 30), the Laws administered by U.S. Customs and Border Protection,
including the Uyghur Forced Labor Prevention Act (Pub. L. No. 117-78), any other applicable Laws relating to the export and import
activities of the Company in the jurisdictions where it operates, the Israeli Control of Products and Services Order (Engagement in Encryption),
5735-1974, the Israeli Control of Products and Services Order (Export of Security Equipment and Defense Know-How), 5752-1991, the Israeli
Defense Export Control Order (Combat Equipment), 5768-2008, the Israeli Defense Export Control Law, 5767-2007, and Israeli Ministry of
Economy List of Source Items and Dual Use Items, and all other import and export control laws, regulations and/or directives administered
by the Israeli Ministry of Defense, including the Israeli Trading With the Enemy Ordinance, 1939 or (b) anti-boycott measures.
“Transaction Expenses
Cap Excess” means the dollar amount by which the SPAC Expenses and SPAC Liabilities (excluding any (i) fees and expenses
in connection with the PIPE Financing and (ii) Company Expenses), exceeds $4,000,000.
“Transaction Litigation”
has the meaning set forth in Section 5.2(c).
“Transaction Proposals”
has the meaning set forth in Section 5.8.
“Transaction Support
Agreements” has the meaning set forth in the recitals to this Agreement.
“Transactions”
has the meaning set forth in the recitals to this Agreement.
“Trust Account”
has the meaning set forth in Section 8.18.
“Trust Agreement”
has the meaning set forth in Section 4.8.
“Trustee”
has the meaning set forth in Section 4.8.
“Unit Separation”
has the meaning set forth in Section 2.6(a).
“Unpaid Company
Expenses” means the Company Expenses that are unpaid as of immediately prior to the Closing.
“Unpaid SPAC Expenses”
means the SPAC Expenses that are unpaid as of immediately prior to the Closing.
“Unpaid
SPAC Liabilities” means the SPAC Liabilities as of immediately prior to the Closing.
“Valid Certificate”
means a valid certificate or ruling issued by the ITA in form and substance reasonably acceptable to the Exchange Agent: (a) exempting
the Exchange Agent from the duty to withhold Israeli Taxes with respect to the applicable payment or other consideration, (b) determining
the applicable rate of Israeli Taxes to be withheld from the applicable payment or (c) providing any other instructions regarding
the payment or withholding with respect to the applicable payment.
“VAT”
has the meaning set forth in Section 3.17(f).
“Warrant Agreement”
means the Warrant Agreement, dated as of January 12, 2023, by and between SPAC and American Stock Transfer & Trust Company.
“Withholding Drop
Date” has the meaning set forth in Section 2.10(b).
“$12.50 Price Adjustment
Earnout Shares” has the meaning set forth in Annex I to this Agreement.
“$15.00
Price Adjustment Earnout Shares” has the meaning set forth in Annex I to this Agreement.
“$12.50 Price
Adjustment Share Price Milestone” has the meaning set forth in Annex I to this Agreement.
“$15.00 Price
Adjustment Share Price Milestone” has the meaning set forth in Annex I to this Agreement.
Article II.
SHARE SPLIT; ACQUISITION MErger; SPAC MERGER
Section 2.1 Share
Split.
(a) Prior
to the Acquisition Merger Effective Time, the Company shall effect the share split under which each Company Share that is issued and
outstanding immediately prior to the Acquisition Merger Effective Time (including all Company Shares to be issued as a result of any
outstanding SAFEs or Company Warrants) shall be split into a number of Company Shares, determined by multiplying each such Company Share,
by the Split Factor (the “Share Split”); provided, that no fraction of a Company Share, shall be issued by
virtue of the Share Split, and each Company Shareholder that would otherwise be so entitled to a fraction of a Company Share, (after
aggregating all fractional Company Shares that otherwise would be received by such Company Shareholder) shall instead be entitled to
receive such number of Company Shares, to which such Company Shareholder would otherwise be entitled, rounded to the nearest whole Company
Share.
(b) Following
the completion of the Share Split, the Company shall promptly update its books and records to account for any Company Shares issued pursuant
to the Share Split.
Section 2.2 Acquisition
Merger.
(a) Immediately
after the Share Split, at the Acquisition Merger Effective Time, Merger Sub 1 (as the target company (Chevrat Ha’Ya’ad) in
the Acquisition Merger) will be merged with and into the Company (as the absorbing company (HaChevra Ha’Koletet) in the Acquisition
Merger) upon the terms and subject to the conditions set forth in this Agreement and in accordance with the applicable provisions of
the ICL, whereupon the separate corporate existence of Merger Sub 1 will cease and the Company will continue its existence under the
ICL as the surviving corporation and become a wholly-owned Subsidiary of NewPubco (the “Acquisition Surviving Sub”),
on the terms and subject to the conditions set forth in this Agreement.
(b) From
and after the Acquisition Merger Effective Time, the Company will possess all the rights, powers, privileges, properties and franchises
and be subject to all of the obligations, liabilities and duties of the Company and Merger Sub 1, all as provided under the ICL.
(c) As
soon as practicable after the determination of the date on which the Closing is to take place, each of the Company and Merger Sub 1 shall,
in coordination with each other, deliver to the Companies Registrar a notice of the contemplated Acquisition Merger, setting forth the
proposed date of the Closing on which the Companies Registrar is requested to issue a certificate evidencing the Acquisition Merger in
accordance with Section 323(5) of the ICL (the “Certificate of Merger”), after another notice that the Closing
has occurred is served to the Companies Registrar, which the Parties shall deliver on the Closing Date.
(d) The
Acquisition Merger will become effective upon the issuance by the Companies Registrar of the Certificate of Merger in accordance with
Section 323(5) of the ICL (such time as the Acquisition Merger becomes effective being the “Acquisition Merger Effective
Time”).
(e) At
the Acquisition Merger Effective Time, by virtue of the Acquisition Merger and without any action on the part of the Company, Merger
Sub 1 or any holders of Company Shares or other security holders of the Company or shares of Merger Sub 1:
(i) Deemed
Transfer of Certain Company Shares. All Company Shares that are owned by the Company or any wholly owned Subsidiary of the Company
(collectively, “Company Treasury Shares”) immediately prior to the Acquisition Merger Effective Time, if any, shall
be deemed to have been transferred to NewPubco and no consideration shall be delivered or deliverable in exchange therefor.
(ii) Conversion
of Company Ordinary Shares. Each Company Ordinary Share issued and outstanding immediately prior to the Acquisition Merger Effective
Time (except for Company Treasury Shares) will, by virtue of the Acquisition Merger and upon the terms and subject to the conditions
set forth in this Agreement, automatically be deemed to have been converted to and represent the right to receive a number of NewPubco
Ordinary Shares equal to the Company Merger Ratio (the “Per Company Ordinary Share Merger Consideration”), and as
of the Acquisition Merger Effective Time, each holder thereof shall cease to have any other rights in or to the Company. Notwithstanding
anything in the Agreement, the Per Company Ordinary Share Merger Consideration issuable to holders of Company 102 Shares shall be deposited
with the 102 Trustee in accordance with the provisions of Section 102 of the Ordinance and the 102 Awards Tax Ruling.
(iii) Conversion
of Company Preferred Shares. Each Company Preferred Share issued and outstanding immediately prior to the Acquisition Merger Effective
Time (except for Company Treasury Shares) will, by virtue of the Acquisition Merger and upon the terms and subject to the conditions
set forth in this Agreement, automatically be deemed to have been converted into and represent the right to receive a number of NewPubco
Ordinary Shares equal to the Company Merger Ratio (the “Per Company Preferred Share Merger Consideration”), and as
of the Acquisition Merger Effective Time, each holder thereof shall cease to have any other rights in or to the Company.
(iv) Treatment
of Company Warrants. Unless otherwise exercised into Company Shares prior to the Acquisition Merger Effective Time (including by
way of exercise on a net-issuance (‘cashless’) basis), each Company Warrant issued and outstanding immediately prior to the
Acquisition Merger Effective Time, will, by virtue of the Acquisition Merger and upon the terms and subject to the conditions set forth
in this Agreement, be converted into and represent the right to receive a warrant to purchase NewPubco Ordinary Shares (each, a “Converted
Warrant”). Each Converted Warrant shall continue to have and be subject to the same terms and conditions as were applicable
to such Company Warrant immediately before the Acquisition Merger Effective Time (including expiration date and exercise provisions),
except that: (i) each Converted Warrant shall be exercisable for that number NewPubco Ordinary Shares equal to the product (rounded
down to the nearest whole number) of (A) the number of Company Ordinary Shares subject to the Company Warrant immediately before
the Acquisition Merger Effective Time multiplied by (B) Split Factor and multiplied by (C) the Company Merger
Ratio, and (ii) the per share exercise price for each NewPubco shares issuable upon exercise of the Converted Warrant shall be equal
to the quotient obtained by dividing (A) the exercise price per Company Share of such Company Warrant immediately before
the Acquisition Merger Effective Time by (B) Split Factor and thereafter by dividing further by (C) the Company
Merger Ratio. Unless otherwise exercised at such time, prior to the Closing, NewPubco will reserve for issuance the number of NewPubco
shares that will be issuable upon exercise of the Converted Warrants and, if and when a Converted Warrant is exercised, NewPubco shall
issue or cause to be issued the appropriate number of NewPubco Ordinary Shares.
(v) Treatment
of Company Options. Unless otherwise exercised into Company Shares prior to the Acquisition Merger Effective Time, immediately prior
to the Acquisition Merger Effective Time and pursuant to the resolutions of the Company Board, all outstanding Company Options shall
be assumed by NewPubco. Each Company Option that is outstanding immediately prior to the Acquisition Merger Effective Time will, without
any action on the part of the holder thereof, automatically cease to represent a right to acquire Company Ordinary Share and shall automatically
be assumed by NewPubco and converted into an option to acquire such number of NewPubco Ordinary Shares under the Assumed Equity Plan
(as defined below) equal to the number of Company Ordinary Shares subject to such Company Option immediately prior to the Acquisition
Merger Effective Time, multiplied by (A) the Split Factor and (B) multiplied by the Company Merger Ratio (rounded
to the nearest whole share), with an exercise price per share equal to the exercise price per share of such Company Option in effect
immediately prior to the Acquisition Merger Effective Time, divided by (A) Split Factor and (B) divided by the
Company Merger Ratio (rounded to the nearest full cent) (the “Assumed Company Options”). Each holder of Company Options
shall receive the Assumed Company Options to purchase the number of NewPubco Ordinary Shares set forth opposite such holder’s name
on the Company Allocation Schedule. Each Assumed Company Option shall be subject to substantially the same terms and conditions as such
Company Option, including expiration date and exercise provisions as in effect on the date of this Agreement for the corresponding former
Company Option. Without derogating from the generality of the foregoing, with respect to Assumed Company Options substituting any Company
Option that is a Section 102 Option, consistent with the terms of the 102 Awards Tax Ruling (i) such Assumed Company Options
shall continue to be classified under the same tax arrangement and (ii) such Assumed Company Options shall be deposited with the
102 Trustee in accordance with the provisions of Section 102 of the Ordinance and the 102 Awards Tax Ruling. At or prior to the
Acquisition Merger Effective Time, the Parties and their boards, as applicable, shall adopt any resolutions and take any actions that
are necessary to effectuate the treatment of the Company Options pursuant to this subsection. At the Acquisition Merger Effective Time,
NewPubco shall assume the Company Equity Plan (subject to any adjustments required for compliance with the rules and regulations
of Nasdaq and the applicable law), provided that all references to “Company” in the Company Equity Plan and the documents
governing the Assumed Company Options after the Acquisition Merger Effective Time will be deemed references to NewPubco (the “Assumed
Equity Plan”);
(vi) the
ordinary share of NewPubco issued and outstanding immediately prior to the Acquisition Merger Effective Time shall, become a dormant
share and shall not represent any voting or economic rights of NewPubco.
(b) Share
Capital of the Acquisition Surviving Company. Each ordinary share, of NIS1.00 par value per share, of Merger Sub 1 issued and
outstanding immediately prior to the Acquisition Merger Effective Time shall be automatically and without further action converted into
one (1) validly issued, fully paid and nonassessable ordinary share, of NIS1.00 par value per share, of the Acquisition Surviving
Company and all such ordinary shares shall constitute the only outstanding share capital of the Acquisition Surviving Company.
Each certificate evidencing ownership of such shares of Merger Sub 1 immediately prior to the Acquisition Merger Effective Time shall,
as of the Acquisition Merger Effective Time, evidence ownership of such shares of the Acquisition Surviving Company.
(c) Acquisition
Merger Effective Time. The Acquisition Merger shall become effective at Closing, immediately prior to the SPAC Merger Effective Time.
Section 2.3 The
SPAC Merger.
(a) Immediately
after the Acquisition Merger Effective Time and on the terms and subject to the conditions set forth in this Agreement and in accordance
with the Cayman Companies Law, Merger Sub 2 shall merge with and into SPAC, with SPAC surviving the SPAC Merger as a direct wholly owned
Subsidiary of NewPubco. The date on which the foregoing occurs is referred to in this Agreement as the “SPAC Merger Closing
Date.” Following the SPAC Merger Effective Time, the (i) separate existence of Merger Sub 2 shall cease, it will be struck
off the Register of Companies in the Cayman Islands and SPAC shall continue as the surviving company of the SPAC Merger (the “SPAC
Surviving Company”) and (ii) SPAC shall (A) become a direct, wholly owned Subsidiary of NewPubco, (B) continue
to be governed by the Laws of the Cayman Islands, and (C) succeed to and assume all of the rights, properties and obligations of
Merger Sub 2 in accordance with the Cayman Companies Law, and the SPAC Shareholders shall be entitled to the SPAC Merger Consideration.
(b) SPAC
Merger Effective Time(c). Upon the terms and subject to the
conditions set forth herein, on the SPAC Merger Closing Date, SPAC, NewPubco and Merger Sub 2 shall (i) cause the Plan of Merger
to be duly executed and filed with the Registrar of Companies of the Cayman Islands as provided by Section 233 of the Cayman Companies
Law, and (ii) make any other filings, recordings or publications required to be made by SPAC or Merger Sub 2 under the Cayman Companies
Law in connection with the SPAC Merger. The SPAC Merger shall become effective on the date as specified in the Plan of Merger in accordance
with the Cayman Companies Law. The SPAC Merger shall become effective at the date and time as specified in the Plan of Merger that has
been registered by the Registrar of Companies of the Cayman Islands (such date and time is hereinafter referred as the “SPAC
Merger Effective Time”).
(c) Effect
of the Merger. At and after the SPAC Merger Effective Time, the Merger shall have the effects set forth in this Agreement, the Plan
of Merger and the applicable provisions of the Cayman Companies Law. Without limiting the generality of the foregoing, and subject thereto,
at the SPAC Merger Effective Time, all the property, rights, privileges, agreements, powers and franchises, liabilities and duties of
SPAC and Merger Sub 2 shall vest in and become the property, rights, privileges, agreements, powers and franchises, liabilities and duties
of SPAC as the SPAC Surviving Company (including all rights and obligations with respect to the Trust Account), which shall include the
assumption by SPAC of any and all agreements, covenants, duties and obligations of SPAC and Merger Sub 2 set forth in this Agreement
and the other Ancillary Documents to which SPAC or Merger Sub 2 is a party, and SPAC shall thereafter exist as a wholly owned Subsidiary
of NewPubco and the separate corporate existence of Merger Sub 2 shall cease to exist.
Section 2.4 Organizational
Documents.
(a) At
the Acquisition Merger Effective Time (i) the articles of association of NewPubco shall be amended and restated in their entirety
to be in the form of the NewPubco A&R Articles of Association, until thereafter changed or amended as provided therein or by applicable
Law, and the NewPubco A&R Articles of Association shall be filed with the Companies Registrar, and (ii) the articles of association
of the Company shall be amended and restated in their entirety to be in the form of the Company A&R Articles of Association, until
thereafter changed or amended as provided therein or by applicable Law, and the Company A&R Articles of Association shall be filed
with the Companies Registrar.
(b) At
the SPAC Merger Effective Time, in accordance with the Plan of Merger, the SPAC Articles of Association, as in effect immediately prior
to the SPAC Merger Effective Time, shall be amended and restated in such form in the form annexed to the Plan of Merger at the time of
filing with the Registrar of Companies of the Cayman Islands and as mutually agreed by SPAC and the Company and, as so amended and restated,
shall be the Governing Documents of the SPAC Surviving Company on and from the SPAC Merger Effective Time until thereafter changed or
amended as provided therein or by applicable Law and such memorandum and articles of association.
Section 2.5 Directors
and Officers of the Surviving Companies.
(a) From
and after the Acquisition Merger Effective Time and SPAC Merger Effective Time, until successors are duly elected or appointed and qualified
in accordance with applicable law or until their earlier death, resignation or removal in accordance with law and the applicable Governing
Documents, the directors and officers of NewPubco, the Acquisition Surviving Sub and the SPAC Surviving Company shall be the directors
and officers of the Company, subject to Section 5.13.
Section 2.6 Effect
of the SPAC Merger on Securities of SPAC and Merger Sub 2. At the SPAC Merger Effective Time, by virtue of the SPAC Merger and without
any further action on the part of the Parties or any SPAC Shareholder:
(a) SPAC
Units. Each SPAC Unit issued and outstanding immediately prior to the SPAC Merger Effective Time shall be automatically detached
and the holder thereof shall be deemed to hold one (1) SPAC Class A Share and one (1) SPAC Warrant in accordance with
the terms of the applicable SPAC Unit (the “Unit Separation”), provided that no fractional SPAC Warrant will
be issued in connection with the Unit Separation such that if a holder of SPAC Units would be entitled to receive a fractional SPAC Warrant
upon the Unit Separation, the number of SPAC Warrants to be issued to such holder upon the Unit Separation shall be rounded down to the
nearest whole number of SPAC Warrants. The underlying SPAC’s securities held or deemed to be held following the Unit Separation
shall be converted in accordance with the applicable terms of this Section 2.6.
(b) SPAC
Shares.
(i) Immediately
prior to the SPAC Merger Effective Time, each SPAC Class B Share shall be automatically converted into one (1) SPAC Class A
Share pursuant to and in accordance with the conversion mechanics set forth in Article 17 of the SPAC Articles of Association (without
giving effect to the adjustments set forth in Article 16 thereof) and following such conversion, each SPAC Class B Share shall
no longer be outstanding and shall automatically be cancelled and shall cease to exist, and each former holder of SPAC Class B Shares
shall thereafter cease to have any rights with respect to such securities.
(ii) Each
SPAC Class A Share issued and outstanding immediately prior to the SPAC Merger Effective Time (which, for the avoidance of doubt,
shall include the SPAC Class A Shares held as a result of the Unit Separation and any SPAC Class A Shares issued as a result
of SPAC Class B Share conversion set forth in Section 2.6(b)(i), but excluding the SPAC
Shares referred to in Section 2.6(d) and SPAC Shares forfeited by Sponsor pursuant to Section 2.6(h) shall,
in accordance with the Cayman Companies Law, without any further action of the SPAC Shareholders, automatically be cancelled in exchange
for the right to receive one (1) validly issued, fully paid and nonassessable NewPubco Ordinary Share for each SPAC Class A
Share, with each holder of SPAC Class A Share to receive the number of NewPubco Ordinary Shares set forth opposite such holder’s
name on the SPAC Allocation Schedule (the aggregate number of shares of NewPubco Ordinary Shares issuable to SPAC Shareholders pursuant
to this subsection, collectively, the “SPAC Merger Consideration”).
(c) SPAC
Warrants. Subject to Section 2.6(h), each SPAC Warrant that is outstanding and unexercised immediately prior
to the SPAC Merger Effective Time shall cease to represent a SPAC Warrant in respect of SPAC Shares and shall be assumed by NewPubco
and automatically be converted into a warrant to acquire NewPubco Ordinary Shares (each, an “Assumed SPAC Warrant”).
NewPubco shall assume each such SPAC Warrant in accordance with its terms, and except as expressly provided above, following the SPAC
Merger Effective Time, each Assumed SPAC Warrant shall continue to be governed by the same terms and conditions (including vesting terms)
as were applicable to the applicable SPAC Warrant immediately prior to the SPAC Merger Effective Time, except that each SPAC Warrant
will be exercisable (or will become exercisable in accordance with its terms) for that number of whole NewPubco Ordinary Shares equal
to the number of SPAC Shares that were issuable upon exercise of such SPAC Warrant that was outstanding immediately prior to the SPAC
Merger Effective Time. At or prior to the SPAC Merger Effective Time, NewPubco and SPAC shall adopt any resolutions and take any actions
that are necessary to effectuate the treatment of the SPAC Warrants in accordance with this subsection.
(d) SPAC
Treasury Shares. Notwithstanding any other provision of this Agreement to the contrary, if there are any SPAC Shares that are owned
by SPAC as treasury shares or any SPAC Shares owned by any direct or indirect Subsidiary of SPAC immediately prior to the SPAC Merger
Effective Time, such SPAC Shares shall automatically be cancelled and shall cease to exist without any conversion thereof or payment
or other consideration therefor.
(e) Redeeming
SPAC Shares. Each SPAC Share subject to the SPAC Shareholder Redemption issued and outstanding immediately prior to the SPAC Merger
Effective Time shall automatically be cancelled and cease to exist and shall thereafter represent only the right to be paid a pro rata
share of the SPAC Shareholder Redemption amount in accordance with the SPAC Articles of Association.
(f) Dissenting
SPAC Shares. Notwithstanding any provision of this Agreement to the contrary and to the extent available under the Cayman Companies
Law, each SPAC Share issued and outstanding immediately prior to the SPAC Merger Effective Time for which any SPAC Shareholder has validly
exercised their dissenters’ rights for such SPAC Shares in accordance with Section 238 of the Cayman Companies Law, and has
otherwise complied in all respects with all of the provisions of the Cayman Companies Law relevant to the exercise and perfection of
dissenters’ rights (collectively, the “Dissenting SPAC Shares”) shall (i) not be exchanged for, and such
SPAC Shareholders shall have no right to receive, the SPAC Merger Consideration unless and until such SPAC Shareholder fails to perfect
or withdraws or otherwise loses his, her or its right to dissenters’ rights under the Cayman Companies Law, and (ii) automatically
be cancelled and cease to exist and shall thereafter represent only the right to be paid the fair value of such Dissenting SPAC Share
and such other rights as are granted by the Cayman Companies Law, including but not limited to the rights pursuant to Section 238
of the Cayman Companies Law. For the avoidance of doubt, all SPAC Shares held by dissenting shareholders who shall have not exercised
or perfected or who shall have effectively withdrawn or lost their dissenter rights under Section 238 of the Cayman Companies Law
shall thereupon not be Dissenting SPAC Shares and shall be cancelled and cease to exist as of the SPAC Merger Effective Time, in consideration
of the right to receive the SPAC Merger Consideration, without any interest thereon, in the manner provided in this Section 2.6.
SPAC shall give NewPubco (i) prompt notice (and in any event within 48 hours of receipt) of any notices of objection, notices of
approvals, notice of dissent or demands for appraisal or written offers, under Section 238 of the Cayman Companies Law received
by SPAC, attempted withdrawals of such notices, demands or offers, and any other instruments served pursuant to applicable Law of the
Cayman Islands and received by SPAC relating to its shareholders’ rights to dissent from the SPAC Merger or dissent rights, and
(ii) to the extent permitted by applicable Law, the opportunity to direct all negotiations and proceedings with respect to any such
notice or demand for appraisal under the Cayman Companies Law. Prior to the SPAC Merger Effective Time, SPAC shall not, except with the
prior written Consent of NewPubco, voluntarily make any offers or agree to any payment with respect to any exercise by a shareholder
of its rights to dissent from the SPAC Merger or any demands for appraisal or offer to settle or settle any such demands or approve any
withdrawal of any such demands. In the event that any written notices of objection to the SPAC Merger are served by any shareholders
of SPAC pursuant to Section 238(2) of the Cayman Companies Law, SPAC shall serve written notice of the authorization of the
SPAC Merger on such shareholders pursuant to Section 238(4) of the Cayman Companies Law within twenty (20) days of obtaining
the SPAC Shareholder Approval.
(g) SPAC
Surviving Company shares. Each Merger Sub 2 ordinary share issued and outstanding immediately prior to the SPAC Merger Effective
Time shall be converted into and become the right to receive one (1) validly issued, fully paid and nonassessable ordinary share,
of the SPAC Surviving Company and such share shall constitute the only outstanding share in the capital of the SPAC Surviving Company.
(h) Maximum
Dilution. The Parties hereby agree that, when aggregated, the NewPubco Ordinary shares to be issued in consideration of, or exchange
for, (i) the Sponsor Shares and (ii) SPAC Shares, and PIPE Shares (together, the “Covered Shares”) shall
not exceed thirty percent (30%) of NewPubco’s issued and outstanding share capital upon Closing (the “Dilution Cap”).
In the event the Covered Shares exceed the Dilution Cap, the Sponsor shall irrevocably forfeit and surrender, immediately prior to Closing,
for no consideration, a number of Sponsor Shares, up to a maximum of 1,429,000 Sponsor Shares, in order to reduce the aggregate Covered
Shares below the Dilution Cap (the “Sponsor Forfeiture”). The Sponsor shall not hold less than a minimum of 4,000,000
Sponsor Shares following such Sponsor Forfeiture; provided however, that in the event the Covered Shares exceed the Dilution Cap
following the Sponsor Forfeiture, the Company, the SPAC, and the Sponsor mutually agree that the Parties shall work together in good
faith to negotiate an adjustment to the Dilution Cap (“Dilution Cap Breach Adjustment”).
Section 2.7 Allocation
Schedule.
(a) At
least five (5) Business Days prior to the Closing Date, SPAC shall deliver to the Company an allocation schedule (the “SPAC
Allocation Schedule”) setting forth (i) the number of SPAC Class A Shares, SPAC Class B Shares and SPAC Warrants
held by each holder, (ii) such holder’s name and address, and (iii) the allocation of the SPAC Merger Consideration among
the holders of SPAC Class A Shares, SPAC Class B Shares and SPAC Warrants. SPAC will review any comments to the SPAC Allocation
Schedule provided by the Company or any of its Representatives and consider in good faith and incorporate any reasonable comments proposed
by the Company or any of its Representatives.
(b) Notwithstanding
the foregoing or anything to the contrary herein, (i) the aggregate number of NewPubco Ordinary Shares that each SPAC Shareholder
will have a right to receive (or NewPubco Warrants to be issued to each SPAC Shareholder in respect of any other Equity Securities of
SPAC prior to the Closing) under this Agreement will be rounded to the nearest whole share, and (ii) NewPubco and the Company will
be entitled to rely upon the SPAC Allocation Schedule for purposes of allocating NewPubco Ordinary Shares to the SPAC Shareholders and
the conversion of the SPAC Warrants into the Assumed SPAC Warrants pursuant to Section 2.6.
(c) At
least five (5) Business Days prior to the Closing Date, Company shall deliver to SPAC an allocation schedule (the “Company
Allocation Schedule”) setting forth (i) the number of Company Shares, Company Options and Company Warrants held by each
holder, (ii) such holder’s name and address, (iii) the allocation of the Company Merger Consideration among the holders
of Company Shares, and (iv) the number of shares of NewPubco Ordinary Shares that will be subject to each Assumed Company Option
and Converted Warrants, which shall be determined in accordance with Section 2.2(e). The Company will review any comments
to the Company Allocation Schedule provided by SPAC or any of its Representatives and consider in good faith and incorporate any reasonable
comments proposed by SPAC or any of its Representatives.
(d) Notwithstanding
the foregoing or anything to the contrary herein, (i) the aggregate number of NewPubco Ordinary Shares that each Company Shareholder
will have a right to receive under this Agreement will be rounded to the nearest whole share, and (ii) NewPubco and SPAC will be
entitled to rely upon the Company Allocation Schedule for purposes of allocating NewPubco Ordinary Shares to the Company Shareholders
and the conversion of the Company Options into the Assumed Company Option, pursuant to Section 2.2(a).
Section 2.8 Closing
of the Transactions Contemplated by this Agreement. The closing of the Transactions (the “Closing”) shall take
place electronically by exchange of the closing deliverables by the means provided in Section 8.11 as promptly as reasonably
practicable, but in no event later than the third (3rd) Business Day, following the satisfaction (or, to the extent permitted
by applicable Law, waiver) of the conditions set forth in ARTICLE VI (other than those conditions that by their nature
are to be satisfied at the Closing, but subject to satisfaction or waiver of such conditions) (the “Closing Date”)
or at such other place, date and/or time as SPAC and the Company may agree in writing.
Section 2.9 Exchange
of Shares and Certificates.
(a) As
promptly as reasonably practicable following the date of this Agreement, but in no event later than ten (10) Business Days prior
to the Closing Date, NewPubco shall appoint ETC (or its applicable Affiliate) as an exchange agent, together with such Israeli financial
institution or trust company operating as a subagent and as approved in the Israeli Tax Rulings (the “Exchange Agent”),
and enter into an exchange agent agreement (the “Exchange Agent Agreement”) with the Exchange Agent in connection
with the Mergers for the purpose of exchanging certificates, if any, representing the SPAC Shares and each SPAC Share held in book-entry
form on the stock transfer books of SPAC immediately prior to the Acquisition Merger Effective Time and Company Shares, in either case,
for the SPAC Merger Consideration and Acquisition Merger Consideration, as applicable, and on the terms and subject to the other conditions
set forth in this Agreement. Notwithstanding the foregoing or anything to the contrary herein, in the event that ETC is unable or unwilling
to serve as the Exchange Agent, then SPAC and the Company shall, as promptly as reasonably practicable thereafter, but in no event later
than the Closing Date, mutually agree upon an exchange agent (in either case, such agreement not to be unreasonably withheld, conditioned
or delayed), and NewPubco shall appoint and enter into the Exchange Agent Agreement with such exchange agent, who shall for all purposes
under this Agreement constitute the Exchange Agent. NewPubco shall, and shall cause its Representatives to, reasonably cooperate with
SPAC, the Company and the Exchange Agent and their respective Representatives in connection with the appointment of the Exchange Agent,
the entry into the Exchange Agent Agreement and the covenants and agreements in this Section 2.9 (including the provision
of any information, or the entry into any agreements or documentation, necessary or advisable, as mutually determined in good faith by
the Company and SPAC, or otherwise required by the Exchange Agent Agreement for the Exchange Agent to fulfill its duties as the Exchange
Agent in connection with the transactions contemplated hereby). The provisions in this Section 2.9 shall be subject in all
respects to any requirements or restrictions imposed in the Israeli Tax Rulings.
(b) At
least three (3) Business Days prior to the Closing Date, NewPubco shall cause the Exchange Agent to mail or otherwise deliver a
Letter of Transmittal to the Persons that will be the Company Shareholders and SPAC Shareholders as of immediately prior to the Acquisition
Merger Effective Time and SPAC Merger Effective Time, as applicable.
(c) At
the Acquisition Merger Effective Time and SPAC Merger Effective Time, NewPubco shall deposit, or cause to be deposited, with the Exchange
Agent, for the benefit of the Company Shareholder and SPAC Shareholders, and for exchange in accordance with this Section 2.9
through the Exchange Agent, evidence of NewPubco Ordinary Shares in book-entry form representing the Acquisition Merger Consideration
and SPAC Merger Consideration in exchange for the Company Shares and SPAC Shares outstanding immediately prior to the Acquisition Merger
Effective Time, in each case after giving effect to any required Tax withholding as provided under this Section 2.9. All
shares in book-entry form representing the Acquisition Merger Consideration and SPAC Merger Consideration deposited with the Exchange
Agent shall be collectively referred to in this Agreement as the “Exchange Fund”.
(d) Each
Company Shareholder and SPAC Shareholder whose Company Shares and SPAC Shares have been converted into the right to receive the Acquisition
Merger Consideration and SPAC Merger Consideration shall be entitled to receive the portion of the Acquisition Merger Consideration and
SPAC Merger Consideration to which he, she or it is entitled upon (i) surrender of a certificate (or affidavit of loss in lieu thereof
in the form required by the Letter of Transmittal), together with the delivery of a properly completed and duly executed Letter of Transmittal
(including, for the avoidance of doubt, any other documents or agreements required by the Letter of Transmittal), to the Exchange Agent
or (ii) delivery of an “agent’s message” in the case of SPAC Shares held in book-entry form, together with the
delivery of a properly completed and duly executed Letter of Transmittal (including, for the avoidance of doubt, any other documents
or agreements required by the Letter of Transmittal), to the exchange Agent. NewPubco shall cause the Exchange Agent pursuant to irrevocable
instructions, to pay the Acquisition Merger Consideration and SPAC Merger Consideration out of the Exchange Fund in accordance with this
Agreement. Except as contemplated by Section 2.9(c) hereof, the Exchange Fund shall not be used for any other purpose.
(e) If
a properly completed and duly executed Letter of Transmittal, together with any certificates (or affidavit of loss in lieu thereof in
the form required by the Letter of Transmittal) or an “agent’s message”, as applicable, and any other documents or
agreements required by the Letter of Transmittal, is delivered to the Exchange Agent in accordance with Section 2.9(d) (i) at
least two (2) Business Days prior to the Closing Date, then NewPubco, SPAC and the Company shall use commercially reasonable efforts
to cause the applicable portion of the Company Merger Consideration and SPAC Merger Consideration to be issued to the applicable Company
Shareholder and SPAC Shareholder in book-entry form on the Closing Date, or (ii) less than two (2) Business Days prior to the
Closing Date, then NewPubco, SPAC and the Company shall use commercially reasonable efforts to cause the applicable portion of the Acquisition
Merger Consideration and SPAC Merger Consideration to be issued to the SPAC Shareholder in book-entry form within two (2) Business
Days after such delivery.
(f) If
any portion of the SPAC Merger Consideration is to be issued to a Person other than the SPAC Shareholder in whose name the surrendered
certificate or the transferred SPAC Share in book-entry form is registered, it shall be a condition to the issuance of the applicable
portion of the SPAC Merger Consideration that, in addition to any other requirements set forth in the Letter of Transmittal or the Exchange
Agent Agreement, (i) either such certificate shall be properly endorsed or shall otherwise be in proper form for transfer or such
SPAC Share in book-entry form shall be properly transferred and (ii) the Person requesting such consideration pay to the Exchange
Agent any transfer or similar Taxes required as a result of such consideration being issued to a Person other than the registered holder
of such certificate or SPAC Share in book-entry form or establish to the satisfaction of the Exchange Agent that such transfer or similar
Taxes have been paid or are not payable. No interest will be paid or accrued on the SPAC Merger Consideration (or any portion thereof).
From and after the Acquisition Merger Effective Time, until surrendered or transferred, as applicable, in accordance with this Section 2.9,
each SPAC Share shall solely represent the right to receive the SPAC Merger Consideration.
(g) At
the Acquisition Merger Effective Time, the stock transfer books of the SPAC shall be closed and there shall be no transfers of SPAC Shares
that were outstanding immediately prior to the Acquisition Merger Effective Time.
(h) Any
portion of the Exchange Fund that remains unclaimed by the SPAC Shareholders twelve (12) months following the Closing Date shall be delivered
to NewPubco or as otherwise instructed by NewPubco, and any SPAC Shareholder who has not exchanged his, her or its SPAC Shares for the
applicable portion of the SPAC Merger Consideration in accordance with this Section 2.9 prior to that time shall thereafter
look only to NewPubco for the issuance of the applicable portion of the SPAC Merger Consideration, without any interest thereon. None
of NewPubco, the Company, the SPAC Surviving Company or any of their respective Affiliates shall be liable to any Person in respect of
any consideration delivered to a public official pursuant to any applicable abandoned property, unclaimed property, escheat, or similar
Law. Any portion of the SPAC Merger Consideration remaining unclaimed by the SPAC Shareholders immediately prior to such time when the
amounts would otherwise escheat to or become property of any Governmental Entity shall become, to the extent permitted by applicable
Law, the property of NewPubco free and clear of any claims or interest of any Person previously entitled thereto.
(i) The
SPAC Merger Consideration payable upon conversion of the SPAC Shares in accordance with the terms hereof shall be deemed to have been
paid and issued in full satisfaction of all rights pertaining to such SPAC Shares. The SPAC Merger Consideration shall be adjusted to
reflect appropriately the effect of any share split, reverse share split, share dividend, reorganization, recapitalization, reclassification,
combination, exchange of shares or other like change with respect to NewPubco Ordinary Shares occurring on or after the date hereof and
prior to the Acquisition Merger Effective Time.
(j) If
any certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such certificate
to be lost, stolen or destroyed, the Exchange Agent will issue in exchange for such lost, stolen or destroyed certificate, the SPAC Merger
Consideration that such holder is otherwise entitled to receive pursuant to, and in accordance with, the provisions of this Section 2.9.
Section 2.10 Withholding.
(a) Each
of NewPubco, SPAC, the Company, Merger Sub 1, Merger Sub 2 and the Exchange Agent (each, a “Payor”), and each of their
respective Affiliates shall be entitled to deduct and withhold (or cause to be deducted and withheld) from any amount payable pursuant
to this Agreement such amounts as are required to be deducted and withheld under applicable Israeli Tax Law. To the extent that amounts
are so withheld and remitted to the applicable Governmental Entity, such withheld amounts shall be treated for all purposes of this Agreement
as having been paid to the Person in respect of which such deduction and withholding was made. Each of NewPubco, SPAC, the Company, Merger
Sub 1, Merger Sub 2 and the Exchange Agent, and each of their respective Affiliates shall use its commercially reasonable efforts to
provide notice of any deduction or withholding that it intends to make (or cause to be made) from any amount payable to a payee pursuant
to this Agreement at least five (5) days prior to the due date of the relevant payment (provided, however, that the
notice requirement shall not apply to any withholding required under applicable Israeli Tax Law for compensatory amounts). Each of NewPubco,
SPAC, the Company, Merger Sub 1, Merger Sub 2, the Exchange Agent, and each of their respective Affiliates, shall use its commercially
reasonable efforts to eliminate or reduce any such deduction or withholding (including through the request and provision of any statements,
forms or other documents to reduce or eliminate any such deduction or withholding).
(b) With
respect to Israeli Taxes, SPAC and the Company will file with the ITA applications for the Israeli Tax Rulings as set forth in Section 5.5(e).
If the Israeli Tax Rulings are obtained by the Closing Date, then the Payor shall comply with the provisions of the Israeli Tax Rulings.
Subject to the provisions of the Israeli Tax Rulings, each Payor shall be entitled to deduct and withhold (or cause to be deducted and
withheld) from any amount payable or issued pursuant to this Agreement to the holders of SPAC Shares, SPAC Warrants, other securities
of SPAC, Company Ordinary Shares, Company Options (each, a “Payee”) such amounts as are required to be deducted and
withheld under applicable Israeli Tax Law. The consideration payable or issued to each Payee shall be paid or issued to and retained
by the Exchange Agent for the benefit of each such Payee (except for holders of Company Options and Company 102 Shares, who shall be
treated in accordance with the terms of the 102 Awards Tax Ruling) for a period of up to 180 days from the Closing Date (which may be
extended as the parties agree in good faith) or as otherwise requested by the ITA (the “Withholding Drop Date”) (during
which time (i) no Payor shall make any payments to any Payee or withhold any amounts for Israeli Taxes from the payments deliverable
pursuant to this Agreement, except as provided below, and during which time each Payee may obtain a Valid Certificate and (ii) subject
to the terms of the Israeli Tax Ruling (if and to the extent permitted), a Payee may order the Exchange Agent to sell such Payee’s
retained SPAC Shares or Company Ordinary Shares, or a portion thereof). If a Payee delivers, no later than three (3) Business Days
prior to the Withholding Drop Date, a Valid Certificate to the Payor, then the deduction and withholding of any Israeli Taxes shall be
made only in accordance with the provisions of such Valid Certificate, and the balance of the consideration that is not withheld shall
be transferred to such Payee concurrently therewith. If any Payee (i) fails to provide the Payor with a Valid Certificate at least
three (3) Business Days prior to the Withholding Drop Date, or (ii) submits a written request to the Exchange Agent to release
its portion of the consideration prior to the Withholding Drop Date and fails to submit a Valid Certificate at or before such time, then
the amount to be withheld from such Payee’s portion of the consideration shall be calculated according to the applicable withholding
rate in accordance with applicable Laws.
(c) To
the extent that the Exchange Agent is obliged to withhold Israeli Taxes, the Payee shall provide the Exchange Agent with the amount due
with regards to such Israeli Taxes prior to the release of the consideration to the Payee. In the event that the Payee fails to provide
the Exchange Agent with the full amount necessary to satisfy such Israeli Taxes no later than three (3) Business Days before the
Withholding Drop Date, the Exchange Agent shall be entitled, subject to the terms of the Israeli Tax Rulings (if and to the extent permitted),
to sell the Payee’s retained Company Ordinary Shares or SPAC Shares to the extent necessary to satisfy the full amount due with
regards to such Israeli Taxes.
(d) Any
withholding made in NIS with respect to payments made hereunder in dollars shall be calculated based on a dollars-to-NIS exchange rate
known on the date of the actual payment.
(e) Each
Payee hereby shall be deemed, by virtue of the Mergers, as the case may be, to have waived, released and absolutely and forever discharged
the Payor from and against any and all claims for any losses in connection with the forfeiture or sale of any portion of the Company
Ordinary Shares or SPAC Shares otherwise deliverable to such Payee in compliance with the withholding requirements under this Section 2.10.
To the extent that the Exchange Agent is unable, for whatever reason, to sell the applicable portion of Company Ordinary Shares or SPAC
Shares required to finance applicable deduction or withholding requirements, then the Exchange Agent shall be entitled to hold all of
the Company Ordinary Shares or SPAC Shares otherwise deliverable to the applicable Payee until the earlier of: (i) the receipt of
a Valid Certificate fully exempting the Exchange Agent from Tax withholding or receipt of cash amount equal to the Tax that should be
withheld by the Exchange Agent; or (ii) such time when the Exchange Agent is able to sell the portion of such Company Ordinary Shares
or SPAC Shares otherwise deliverable to such Payee that is required to enable the Exchange Agent to comply with such applicable deduction
or withholding requirements. Any costs or expenses incurred by the Exchange Agent in connection with such sale shall be borne by, and
deducted from the payment to, the applicable Payee.
Notwithstanding the above,
any consideration paid or issued to a holder of Company Options and Company 102 Shares will be subject to deduction or withholding of
Israeli Tax under the Ordinance on the 15th day of the calendar month following the month during which the Closing occurs, unless prior
to the 15th day of the calendar month following the month during which the Closing occurs, the 102 Awards Tax Ruling have been obtained.
Section 2.11 Issuance
of Price Adjustment Earnout Shares. Following the Closing, and as an inducement to enter into this Agreement, within ten (10) Business
Days following the occurrence of the $12.50 Share Price Milestone and/or the $15.00 Share Price Milestone, NewPubco shall issue, or cause
the Exchange Agent or any replacement transfer agent engaged by NewPubco to issue, to each holder of Company Shares, immediately prior
to the Acquisition Merger Effective Time (in accordance with its respective Earnout Pro Rata Portion) such number of Price Adjustment
Earnout Shares (which shall be equitably adjusted for stock splits, reverse stock splits, stock dividends, reorganizations, recapitalizations,
reclassifications, combination, exchange of shares or other like change or transaction with respect to NewPubco Ordinary Shares occurring
on or after the Closing) (the “Price Adjustment Earnout Shares”), all in accordance with the provisions of this Agreement
and Annex I. No interest in the right to receive the Price Adjustment Earnout Shares may be sold, transferred assigned, pledged,
hypothecated, encumbered or otherwise disposed of, except by operation of law, and any attempt to do so shall be null and void. NewPubco
shall register the Price Adjustment Earnout Shares with the SEC as soon as reasonably practicable following their issuance.
Section 2.12 Adjustments.
If, between the date of this Agreement and the Closing, the outstanding Company Ordinary Shares shall have been changed into a different
number of shares or a different class, by reason of any stock dividend, subdivision, reorganization, recapitalization, reclassification,
split, combination, exchange of shares or other like change shall have occurred, or there shall have been any breach of this Agreement
by the Company through any stock dividend, subdivision, reorganization, recapitalization, reclassification, split, combination, exchange
of shares or other like change resulting in a change in outstanding Company Ordinary Shares, then any number, value or amount contained
herein which is based upon the number of Company Ordinary Shares will be appropriately adjusted to provide the Company Shareholders or
the SPAC Shareholders, as applicable, the same economic effect as contemplated by this Agreement prior to such event.
Article III.
REPRESENTATIONS AND WARRANTIES RELATING TO THE company
Except as disclosed in the
Company Disclosure Schedules, the Company hereby represents and warrants to SPAC as follows as of the date hereof:
Section 3.1 Organization
and Qualification.
(a) The
Company (i) is a limited liability company duly formed, validly existing and in good standing (or the equivalent thereof, if applicable)
under the applicable Laws of the State of Israel. The Company has the requisite corporate power and authority to own, lease and operate
its material properties and to carry on its businesses as presently conducted in all material respects.
(b) True,
correct and complete copies of the Governing Documents of the Company have been made available to SPAC, in each case, as amended and
in effect as of the date of this Agreement. The Governing Documents of the Company are in full force and effect and no Company is in
breach or violation in any material respect of any provision set forth in its Governing Documents. A correct and complete list of the
directors and officers of the Company is set forth on Section 3.1(b) of the Company Disclosure Schedules.
(c) The
Company is duly qualified or licensed to transact business in each jurisdiction set forth on Section 3.1(c) of the Company
Disclosure Schedules in which the property and assets owned, leased or operated by it, or the nature of the business conducted by it,
makes such qualification or licensing necessary, including, for the avoidance of doubt, any required licenses or approvals to conduct
business in any member nation of the European Union, except, in each case, where failure to be so licensed or qualified would not, individually
or in the aggregate, reasonably be expected to have, a Company Material Adverse Effect or as qualified on Section 3.1(c) of
the Company Disclosure Schedules.
(d) The
Company has no direct or indirect Subsidiaries. The Company does not own, directly or indirectly, any equity or voting interest in any
Person and, except as provided by this Agreement, the Company does not have any agreement or commitment to purchase any such interest,
and has not agreed and is not obligated to make nor is bound by any Contract under which it may become obligated to make any future investment
in or capital contribution to any other entity.
(e) NewPubco
shall be formed solely for the purpose of effecting the Transactions and shall not engage in any business activities or conduct any operations
other than in connection with the Transactions and shall not, prior to the Acquisition Merger Effective Time or SPAC Merger Effective
Time (as applicable), except as expressly contemplated by this Agreement, have any assets, liabilities or obligations other than those
incident to its formation and shares of Merger Sub 1 and Merger Sub 2 (as applicable).
(f) Merger
Sub 1 shall be a wholly owned Subsidiary of NewPubco, formed solely for the purpose of effecting the Transactions and shall not engage
in any business activities or conduct any operations other than in connection with the Transactions and shall not, and prior to the Acquisition
Merger Effective Time, except as expressly contemplated by this Agreement, have any assets, liabilities or obligations other than those
incident to its formation.
Section 3.2 Capitalization
of the Company.
(a) Section 3.2(a) of
the Company Disclosure Schedules sets forth a true and complete statement as of the date of this Agreement of the number and class or
series (as applicable) of all of the Equity Securities (other than Company Equity Awards, which are covered by Section 3.11(g) of
the Company Disclosure Schedules) of the Company issued and outstanding and the ownership thereof, including, to the Company’s
knowledge, the name of each record holder who owns equal to or greater than five percent (5%) of the issued and outstanding Equity Security
of the Company, the name of each record holder who is an officer or director of the Company and the number of Equity Securities held
by each such holder. All of the issued and outstanding Equity Securities of the Company. All of the issued and outstanding Company Shares
are fully paid and non-assessable. The issuance of Company Shares upon the exercise or conversion, as applicable, of Equity Securities
that are derivative securities, will, upon exercise or conversion in accordance with the terms of such Equity Securities against payment
therefore, be duly authorized, validly issued, fully paid and non-assessable. The Equity Securities of the Company (i) were not
issued in violation of the Governing Documents of the Company, (ii) are not subject to any preemptive rights, call option, right
of first refusal, subscription rights, transfer restrictions or similar rights of any Person (other than transfer restrictions under
applicable Laws, including Securities Laws, or under the Governing Documents of the Company) and were not issued in violation of any
preemptive rights, call option, right of first refusal or first offer, subscription rights, transfer restrictions or similar rights of
any Person and (iii) have been offered, sold and issued in compliance in all material respects with applicable Law, including Securities
Laws. Except for the Company Equity Awards set forth on Section 3.11(g) of the Company Disclosure Schedules or the Company
Equity Awards either permitted by Section 5.1(b) or issued, granted or entered into in accordance with Section 5.1(b),
the Company has no outstanding options, restricted stock, phantom stock, stock or equity appreciation rights, equity ownership interests
or other equity, equity-based or similar rights in the Company, warrants, purchase rights, subscription rights, conversion rights, exchange
rights, calls, puts, preemptive rights, rights of first refusal or first offer or other Contracts that require the Company to issue,
sell or otherwise cause to become outstanding or to acquire, repurchase or redeem any Equity Securities or securities convertible into
or exchangeable for Equity Securities of the Company.
(b) Except
for the Governing Documents of the Company and as set forth on Section 3.2(b) of the Company Disclosure Schedules, there
are no voting trusts, proxies or other Contracts to which the Company is a party with respect to the voting or transfer of the Company’s
Equity Securities.
(c) Except
as set forth on Section 3.2(c) of the Company Disclosure Schedules, the Company does not own or control (of record,
beneficially, legally or otherwise), directly or indirectly, any Equity Securities in any, or has or has had any commitment or obligation
to invest in, purchase any securities or obligations of, fund, guarantee, contribute or maintain the capital of or otherwise financially
support any, Person. Except as set forth on Section 3.2(c) of the Company Disclosure Schedules, the Company is not a
partner or member of any joint venture.
Section 3.3 Authority.
(a) The
Company has the requisite power and authority to execute and deliver this Agreement and each Ancillary Document to which it is a party,
to perform its obligations hereunder and thereunder, and to consummate the Transactions. Subject to the receipt of the Company Shareholder
Approval, the execution, delivery and performance of this Agreement and the Ancillary Documents to which the Company is a party and the
consummation of the Transactions have been duly authorized by all necessary corporate action on the part of the Company. Except for the
Company Shareholder Approval, no other corporate or equivalent Proceeding on the part of the Company is necessary to authorize this Agreement
or the Ancillary Documents and the Company’s performance hereunder or thereunder. This Agreement has been and each Ancillary Document
to which the Company is a party has been, upon execution and delivery thereof, as applicable, duly and validly executed and delivered
by the Company, and constitutes, upon execution and delivery thereof, as applicable, a valid, legal and binding obligation of the Company
(assuming that this Agreement and the Ancillary Documents to which the Company is a party are upon execution thereof, as applicable,
duly authorized, executed and delivered by the other Persons party hereto or thereto, as applicable), enforceable against the Company
in accordance with their respective terms (subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
or other Laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity).
(b) The
Company Board has: (i) determined that this Agreement and the Transactions (including the Acquisition Merger) are advisable to and
in the best interests of the Company and the Company Shareholders, (ii) approved the Transactions (including the Acquisition Merger),
and (iii) resolved to recommend to the Company Shareholders each of the matters set forth in the Company Shareholder Proposals.
The Company Board has recommended that the Company Shareholders approve and adopt this Agreement, the Ancillary Documents and the Transactions
(including the Acquisition Merger).
Section 3.4 Financial
Statements; Undisclosed Liabilities; Company Reporting Reports.
(a) The
Company has made available to SPAC true and complete copy of (i) the audited balance sheets of the Company as of December 31,
2021 and December 31, 2022 and the related audited statements of operations, changes in shareholders’ equity and cash flows
of the Company for each of the periods then ended (collectively, the “Financial Statements”) and (ii) the unaudited
management-prepared trial balance of the Company for the period ended as of September 30, 2024 for the nine (9)-month period then
ended (the “Latest Balance Sheet”). The Financial Statements (including the notes thereto) (A) were prepared
in accordance with GAAP applied on a consistent basis (except as may be indicated in the notes thereto) throughout the periods indicated,
(B) were based upon and consistent with information contained in the books and records of the Company and (C) fairly present
in all material respects the financial position, results of operations and cash flows of the Company as at the respective dates thereof
and for the respective periods indicated therein, except as otherwise specifically noted therein.
(b) Except
(i) as set forth on Section 3.4(b) of the Company Disclosure Schedules, (ii) as set forth, disclosed or reflected
in the Latest Balance Sheet, (iii) for Liabilities incurred in the ordinary course of business since the date of the Latest Balance
Sheet, (iv) for Liabilities that would not, individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect, and (v) for Liabilities incurred in connection with the negotiation, preparation or execution of this Agreement
or any Ancillary Documents, the performance of their respective covenants or agreements in this Agreement or any Ancillary Document or
the consummation of the Transactions, the Company does not have any Liabilities of the type required to be set forth on a balance sheet
in accordance with GAAP.
(c) To
the knowledge of the Company, since the Lookback Date, the Company has performed internal controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s authorization, and (ii) material transactions are
recorded as necessary to permit preparation of financial statements GAAP to maintain accountability for the Company’s assets. Since
the Lookback Date, the Company maintains and, for all periods covered by the Financial Statements, has maintained books and records of
the Company in the ordinary course of business that are accurate and complete and reflect the revenues, expenses, assets and liabilities
of the Company in all material respects.
Section 3.5 Consents
and Requisite Governmental Approvals; No Violations.
(a) Except
as set forth on Section 3.5(a) of the Company Disclosure Schedules, no Consent, Permit, approval or authorization of,
or designation, declaration or filing with or notification to, any Governmental Entity is required on the part of the Company with respect
to the Company’s execution, delivery or performance of its obligations under this Agreement or the Ancillary Documents to which
the Company is a party or the consummation of the Transactions, except for (i) the filing with the SEC of (A) the Registration
Statement / Proxy Statement and the declaration of the effectiveness thereof by the SEC and (B) any other documents or information
required pursuant to applicable requirements, if any, of the Federal Securities Laws, (ii) compliance with and filings or notifications
required to be filed with state securities regulators pursuant to “blue sky” Laws and state takeover Laws as may be required
in connection with this Agreement, the Ancillary Documents or the Transactions, (iii) applicable requirements of and filings under
the Israeli Securities Law or any other similar Laws, (iv) compliance and filings with the ITA, the Companies Registrar, IIA
and Israeli Ministry of Defense Export Control Agency Registry, (v) the Company Shareholder Approval, which shall have been secured
on or prior to the Acquisition Merger Effective Time, (vi) the filing of any notifications required pursuant to any applicable antitrust
Laws, and the expiration of the required waiting periods thereunder, and (vii) any other consents, approvals, authorizations, designations,
declarations, waivers or filings, the absence of which would not, individually or in the aggregate, reasonably be excepted to have a
Company Material Adverse Effect.
(b) Subject
to the receipt of the Consents, approvals, authorizations and other requirements set forth in Section 3.5(a) and except
as set forth on Section 3.5(b) of the Company Disclosure Schedules, neither the execution, delivery or performance by
the Company of this Agreement nor the Ancillary Documents to which the Company is a party nor the consummation of Transactions will (with
or without due notice or lapse of time or both), (i) result in any breach of any provision of the Governing Documents of the Company,
(ii) result in a violation or breach of, or constitute a default or give rise to any right of termination, consent, cancellation,
amendment, modification, suspension, revocation or acceleration (with or without notice) under, any of the terms, conditions or provisions
of (A) any Material Contract to which the Company is a party or (B) any Material Permits, (iii) violate, or constitute
a material breach under, any applicable Law to which the Company or any of its properties or assets are subject, (iv) result in
the creation of any Lien upon any of the assets or properties (other than any Permitted Liens) of the Company, except, in the case of
any of clauses (ii) through (iv) above, as would not, individually or in the aggregate, reasonably be expected
to have a Company Material Adverse Effect, or (v) result in the triggering, acceleration or increase of payment to any Person or
accelerated vesting of any Company Option.
Section 3.6 Permits.
To the Company’s knowledge, the Company has all material Permits that are required to own, lease or operate its properties and
assets and to conduct its business as currently conducted (the “Material Permits”). Except as is not and would not
reasonably be expected to have a Company Material Adverse Effect, (i) each Material Permit is in full force and effect in accordance
with its terms, (ii) no written notice of violation, modification, suspension, revocation, cancellation or termination of any Material
Permit (or proposed revocation, cancellation or termination) has been received by the Company, and (iii) all applications required
for the renewal of each such Material Permit have been duly filed with the appropriate Governmental Entity.
Section 3.7 Material
Contracts; No Defaults.
(a) Section 3.7(a) of
the Company Disclosure Schedules sets forth a list of the following material Contracts that the Company is, as of the date of this Agreement,
a party (each Contract required to be set forth on Section 3.7(a) of the Company Disclosure Schedules, together with
the IP Contracts required to be set forth on Section 3.13(c) of the Company Disclosure Schedules, collectively, the
“Material Contracts”):
(i) any
Contracts with Company customers based on gross revenues made by the Company in the fiscal year ending December 31, 2023, and to
those reasonably expected to be Company customers based on gross revenues made by the Company in the fiscal year ending December 31,
2024;
(ii) any
Contract with the material suppliers of (by spend) of the Company for the fiscal year ending on December 31, 2024;
(iii) any
Contract that (A) limits, in any material respect, the localities in which the Company’s business is conducted, (B) contains
any exclusivity, “most favored nation” or similar provisions, obligations or restrictions or (C) limits, in any material
respect, the Company from selling, manufacturing, or developing products, directly or indirectly through third parties, or soliciting
any potential employee or customer;
(iv) any
Contract requiring the Company to guarantee the Liabilities of any Person (other than the Company or a Subsidiary) or pursuant to which
any Person (other than the Company or a Subsidiary) has guaranteed the Liabilities of the Company, in each case in excess of $2,000,000;
(v) any
Contract relating to Indebtedness, whether incurred, assumed, guaranteed, or secured by any asset of the Company or the placing of a
Lien (other than a Permitted Lien) on any material assets or properties of the Company, in each case in excess of $2,000,000;
(vi) any
Contract under which the Company has, directly or indirectly, made or agreed to make any loan, advance, or assignment of payment to any
Person or made any capital contribution to, or other investment in, any Person;
(vii) any
Contract required to be disclosed on Section 3.20 of the Company Disclosure Schedules;
(viii) any
Contract with any Person (A) pursuant to which the Company may be required to pay milestones, royalties or other contingent payments
or (B) under which the Company grants to any Person any right of first refusal, right of first negotiation, option to purchase,
option to license or any other similar rights with respect to any Company Product or any Company Owned Intellectual Property (other than
licenses granted to customers or suppliers on non-exclusive basis in the ordinary course of business);
(ix) any
Contract for the disposition of any portion of the assets or business of the Company or for the acquisition by the Company of the assets
or business of any other Person (other than acquisitions or dispositions made in the ordinary course of business and other than Contracts
for the purchase of inventory or supplies or sales of products entered into in the ordinary course of business), in each case involving
consideration therefor in an amount in excess of $50,000;
(x) any
(A) material joint venture, profit sharing, partnership, collaboration, co-promotion, commercialization, research or development
Contract, or (B) other Contract with respect to material Company Licensed Intellectual Property (other than Off-the-Shelf Software);
(xi) any
CBA;
(xii) any
settlement, conciliation or similar Contract (A) the performance of which would be reasonably likely to involve any payments after
the date of this Agreement in excess of $50,000 per annum other than Employee Benefit Plans, or (B) with a Governmental Entity;
(xiii) any
Contract (A) governing the terms of the employment, engagement or services of any current director, manager, officer, employee,
individual independent contractor or other service provider of the Company whose annual base salary (or, in the case of an independent
contractor, annual base compensation) is in excess of $250,000 (other than offer letters for “at-will” employment that do
not provide for severance, change of control or retention benefits, or similar payments or Liabilities) or (B) providing for any
sale, transaction, change of control, “stay around”, retention or similar bonuses or payments, severance or termination payments
or other similar amounts that accelerate, accrue or become payable to, or in respect of, any current director, manager, officer, employee,
individual independent contractor or other service provider of the Company in connection with the Closing;
(xiv) any
Contract under which the Company is lessee of or holds or operates, in each case, any tangible property (other than real property), owned
by any other Person, except for any lease or agreement under which the aggregate annual rental payments do not exceed $250,000;
(xv) any
Contract under which the Company is lessor of or permits any third party to hold or operate, in each case, any tangible property (other
than real property), owned or controlled by the Company, except for any lease or agreement under which the aggregate annual rental payments
do not exceed $250,000;
(xvi) any
Contract pursuant to which the Company is granted a lease in, a sublease in, or the right to use or occupy any land or building; and
(xvii) any
other Contract the performance of which requires either (A) annual payments to or from the Company in excess of $2,000,000 or (B) aggregate
payments to or from the Company in excess of $5,000,000 over the effective period of the agreement and, in each case, that is not terminable
by the Company without penalty upon less than thirty (30) day’s prior written notice.
(b) Except
as set forth on Section 3.7(a)(i) of the Company Disclosure Schedules, (i) each Material Contract is valid and
binding on the Company and, to the knowledge of the Company, the counterparty thereto, and is in full force and effect, subject in all
respects to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other Laws relating to or affecting
creditors’ rights generally and general equitable principles (whether considered in a Proceeding in equity or at law), (ii) the
Company and, to the knowledge of the Company, the counterparties thereto are not in material breach of, or default under, any Material
Contract and, to the knowledge of the Company, no event has occurred which, with or without due notice or lapse of time or both, would
become a material breach or default under any Material Contract, and (iii) the Company has not received written notice from any
other party to any such Material Contract that such party intends to terminate or not renew any such Material Contract.
Section 3.8 Absence
of Changes. From the date of the Latest Balance Sheet through the date of this Agreement, (a) no Company Material Adverse Effect
has occurred, and (b) except as contemplated by this Agreement or any Ancillary Document or taken in connection with the Transactions,
(i) the Company has conducted its business in the ordinary course of business in all material respects and (ii) the Company
has not taken any action that (A) would require the Consent of SPAC if taken during the period from the date of this Agreement until
the Closing pursuant to Section 5.1(b)(i), Section 5.1(b)(viii) or Section 5.1(b)(x) or
(B) is or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
Section 3.9 Litigation.
There is (and since the Lookback Date there has been) (i) no Proceeding pending or, to the Company’s knowledge, threatened
against or affecting the Company or its assets or properties, or any of the Company’s officers, directors or managers (in their
capacities as officers, directors or managers of the Company), that, if adversely decided or resolved, has been or would, individually
or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, and (ii) any material Order imposed on the
Company or any of its properties or assets. As of the date of this Agreement, there are no material Proceedings by Company pending against
any other Person. To the knowledge of the Company, there is no unsatisfied judgment or any open injunction binding upon the Company which
would, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.
Section 3.10 Compliance
with Applicable Law. The Company has since the Lookback Date (a) conducted its business in accordance with applicable Laws
and Orders with respect to the conduct of its business and is not in violation of any such Law or Order, and (b) to the knowledge
of the Company, has not received any written communications from a Governmental Entity that alleges that the Company is not in compliance
with any such Law or Order, except in each case of clauses (a) and (b), as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.
Section 3.11 Employee
Benefit Plans.
(a) Section 3.11(a) of
the Company Disclosure Schedules sets forth a true and complete list of all material Employee Benefit Plans, other than individual agreements
with current or former employees, directors or contractors of the Company.
(b) The
Company has no material Liabilities, under any Employee Benefit Plan, Contract or otherwise, to provide any retiree or post-employment
health or life insurance or other welfare-type benefits to any Person except as may be required by applicable Laws.
(c) Except
as set forth on Section 3.11(c) of the Company Disclosure Schedules, neither the execution and delivery of this Agreement
nor the consummation of the Transactions (whether alone or in combination with any other event(s)) will (i) result in any material
payment or benefit becoming due to or result in the forgiveness of any material Indebtedness of any employee, officer, director or individual
independent contractor or consultant of any of the Company (whether current or former), (ii) require a material contribution or
material payment by any of the Company to any Employee Benefit Plan, (iii) result in any material obligation by the Company to pay
separation, severance or termination pay to any current or former employee, officer, director or individual independent contractor or
consultant or (iv) accelerate the time of payment or vesting, or increase the amount, of any material benefit or other compensation
due to any current or former employee, officer, director or individual independent contractor or consultant.
(d) No
amount that could be, or has been, received (whether in cash or property or the vesting of property or the cancellation of Indebtedness)
by any employee, officer, director, individual independent contractor or other service provider of any of the Company under any Employee
Benefit Plan, Contract or otherwise as a result of the consummation of the Transactions would reasonably be expected, separately or in
the aggregate, to result in the payment of any “excess parachute payment” (as defined in Section 280G(b)(1) of
the Code).
(e) Reserved.
(f) Except
as set forth on Section 3.11(f) of the Company Disclosure Schedules, or as would not reasonably be expected to be material
to the Company, taken as a whole, (i) all employees and (ii) service providers who have access to material confidential information
of the Company have signed engagement agreements or service agreements that contain confidentiality covenants and (x) all employees
and (y) service providers who have been involved in the development of Company Owned Intellectual Property have signed engagement
agreements or service agreements that contain confidentiality and inventions assignment covenants in substantially the form delivered
or made available to SPAC, to the Company’s knowledge, there has been no material breach of a confidentiality, non-competition
and non-solicitation, invention assignment covenants by any employee of the Company with such assignment agreements conveying and assigning
to the Company effectively assigning ownership of all material Intellectual Property Rights developed by such individual or entity in
the context of his or her engagement by the Company, and, to the extent permissible under applicable Law, has expressly and irrevocably
waived any and all moral rights and any right to receive compensation in connection therewith (in case of Israeli employees, including
without limitation, any right of royalties in connection with “Service Inventions” under Section 134 of the Israeli
Patents Law of 1967, or any other similar provision under any applicable). To the knowledge of the Company, no current employee or consultant
of the Company has excluded any works or inventions necessary for the conduct of the respective Company’ business from his/her/its
assignment of inventions to the Company, and to the knowledge of the Company, no current employee or consultant of the Company is in
material violation, of such proprietary information and invention assignment agreement. No current employee or consultant engaged by
the Company who has contributed to the conception and development of Intellectual Property Rights of the Company has, since the Lookback
Date, asserted in writing any claim against the Company in connection with such Person’s conception and development of any Intellectual
Property Rights of the Company.
(g) Company
Equity Plan. The Company has duly adopted the Company Equity Plan. The Company Equity Plan is the only equity-based incentive plan
currently in effect with respect to the Company. Section 3.11(g) of the Company Disclosure Schedules accurately sets
forth the following information with respect to each Company Equity Award, as applicable: (i) the name of the Company Equity Award
recipient; (ii) the number of shares of Company Ordinary Shares subject to such Company Equity Award; (iii) the exercise price
of such Company Equity Award; (iv) the date on which such Company Equity Award was granted; (v) the vesting schedule applicable
to such Company Equity Award; and (vi) the date on which such Company Equity Award expires. The Company Options that were intended
to qualify under the capital gains route of Section 102 of the Ordinance have received a favorable determination or approval letter
from, or have otherwise been approved by, or deemed approved by, the ITA, and such Company 102 Options and Company 102 Shares have been
granted and/or issued, as applicable, in compliance with the applicable requirements of Section 102 of the Ordinance and the written
requirements and guidance of the ITA, including the filing of the necessary documents with the ITA, the appointment of an authorized
trustee to hold the Company 102 Options and Company 102 Shares, the receipt of all required Consents and Tax rulings and the due and
timely deposit of such Company Options with the 102 Trustee pursuant to the terms of Section 102 of the Ordinance and any regulation,
publication or guidance issued by the ITA. The Company does not have any liability to the ITA or to any relevant fund with respect to
any Employee Benefit Plan including, without limitation, the Company Equity Plan. The Company has provided to SPAC true and complete
copies of the Company Equity Plan, all forms of award agreements evidencing such Company Equity Awards, all material communications to
or from the ITA or any other Governmental Entity relating to the Company 102 Options and Company 102 Shares. Each Company Equity Award
was duly authorized in all material respects by all necessary corporate action, including, as applicable, approval by the Company Board
and any required shareholder approval by the necessary number of votes or written consents, and the award agreement governing such grant
(if any) was executed and delivered by each party thereto.
Section 3.12 Environmental
Matters.
(a) The
representations and warranties set forth in this Section 3.12 are the sole and exclusive representations and warranties relating
to environmental matters, including Environmental Laws, Environmental Conditions, and Hazardous Substances.
(b) Except
as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect:
(i) To
the knowledge of the Company, the Company has not received any written notice from any Governmental Entity or any other Person regarding
any actual, alleged, or potential violation of, or a failure to comply with, any Environmental Laws.
(ii) There
is (and since the Lookback Date) no Proceeding pending or, to the Company’s knowledge, threatened in writing against or involving
the Company pursuant to Environmental Laws.
(iii) To
the knowledge of the Company, there has been no manufacture, release, treatment, storage, disposal, arrangement for disposal, transport
or handling of, or exposure of any Person to, any Hazardous Substances by the Company, other than in compliance with Environmental Laws.
Section 3.13 Intellectual
Property.(a) Section 3.13(a) of the
Company Disclosure Schedules sets forth a true and complete list of (i) all material issued, registered or pending material Company
Registered Intellectual Property and (ii) all material, unregistered Marks included as Company Owned Intellectual Property as of
the date of this Agreement. Except as set forth on Section 3.13(a) of the Company Disclosure Schedules, the Company
solely and exclusively own the Company Owned Intellectual Property free and clear of all Liens (other than Permitted Liens), except as
would not reasonably be expected to be material to the Company, taken as a whole. To the Company’s knowledge, as of the date of
this Agreement, no issuance or registration obtained and no application filed by the Company for any material Company Registered Intellectual
Property has been cancelled, abandoned, allowed to lapse or not renewed. With respect to each item of Company Registered Intellectual
Property, all necessary and due registration, maintenance and renewal fees in connection with such Company Registered Intellectual Property
have been paid and all necessary documents in connection with such Company Registered Intellectual Property have been filed with the
relevant patent, copyright, trademark or other authorities in all relevant jurisdictions for the purposes of maintaining such Company
Registered Intellectual Property. Except as set forth in Section 3.13(a) of the Company Disclosure
Schedules, there are no actions that must be taken by the Company within one hundred and eighty (180) days of the Closing Date, including
the payment of any registration, maintenance or renewal fees or the filing of any documents, applications or articles for the purposes
of maintaining, perfecting or preserving or renewing any Company Registered Intellectual Property. All Company Registered Intellectual
Property, which is registered, is subsisting and, to the Company’s knowledge, valid and enforceable, and to the Company’s
knowledge, as of the date of this Agreement, there are no Proceedings pending challenging the ownership, validity or enforceability of
any Company Owned Intellectual Property, and, to the Company’s knowledge, no such Proceedings are threatened by any Person. Except
as set forth in Section 3.13(a) of the Company Disclosure Schedules, Company has not granted any exclusive license
of or exclusive right to use, or granted any exclusive rights in or to joint ownership of, any Company Owned Intellectual Property to
any other Person. Except as set forth on Section 3.13(a) of the Company Disclosure Schedules, all Company Owned Intellectual
Property is fully transferable, alienable and licensable by the Company without known restrictions and without known payments of any
kind to any Person. The Company maintains its material Company Registered Intellectual Property on an ongoing basis.
(b) Except
as set forth in Section 3.13(b) of the Company Disclosure Schedules, the Company exclusively owns (free and clear of
all Liens, except Permitted Liens) all right, title and interest in and to, or has legal rights to use, all Intellectual Property Rights
used in or necessary for the operation of the Company business as presently conducted, except as would not reasonably be expected to
be material to the Company, taken as a whole and provided that the foregoing representation is made to the Company’s knowledge
with respect to patents and trademarks. To the Company’s knowledge, neither the execution, delivery or performance by the Company
of this Agreement nor the Ancillary Documents to which the Company is or will be a party nor the consummation of the Transactions will,
directly or indirectly (with or without reasonable due notice or lapse of time or both) result in the loss, termination or impairment
of any material Company Owned Intellectual Property or material Company Licensed Intellectual Property.
(c) Section 3.13(c) of
the Company Disclosure Schedules sets forth a list of all current Contracts (i) pursuant to which the Company licenses, or is otherwise
granted a right to use, any material Company Licensed Intellectual Property that is licensed for a one-time or annual fee greater than
$200,000, other than (A) Standard Inbound Licenses, (B) Public Software licenses, (C) non-exclusive feedback licenses
and nonexclusive licenses to use trademarks, and (D) non-disclosure agreements, (ii) pursuant to which the Company is a licensor
or otherwise grants to a third party any rights to use any material Intellectual Property Rights (other than Intellectual Property Rights
licensed to customers or suppliers on a non-exclusive basis in the ordinary course of business), (iii) that contemplate development
of material Company Owned Intellectual Property (other than agreements with employees, individual consultants or contractors of the Company
that do not materially differ from the Company form(s) therefor that have been made available to SPAC) or (iv) pursuant to
which the Company has agreed to, or assumed, any obligation or duty to warrant, indemnify, reimburse, hold harmless, guaranty or otherwise
assume or incur any obligation or liability or provide a right of rescission in connection with material Company Owned Intellectual Property
(other than customer licenses in the ordinary course of business) (clauses (i)-(iv) collectively, the “IP
Contracts”).
(d) Except
as set forth on Section 3.13(d) of the Company Disclosure Schedules and except as would not reasonably
be expected to be material to the Company, to the Company’s knowledge, all Persons including the Company’s employees, consultants,
and independent contractors who independently or jointly contributed to or otherwise participated in the authorship, invention, creation,
improvement, modification or development of any Company Owned Intellectual Property (each such Person, a “Creator”)
have (i) agreed to maintain the confidentiality of the material trade secrets of the applicable Company and (ii) assigned to
such Company ownership of all Intellectual Property Rights authored, invented, created, improved, modified, or developed by such Person
on behalf of the Company in the course of and in consequence of such Creator’s employment or other engagement with the Company.
(e) There
are no current or, to the Company’s knowledge, threatened, claims from any Creator for compensation or remuneration for inventions
invented, or copyright works created, including under Israeli Patents Law, 1967.
(f) The
Company has taken reasonable steps to safeguard, protect and maintain the confidentiality and secrecy of any material trade secrets contained
in the Company Owned Intellectual Property. To the Company’s knowledge, (i) there has been no unauthorized access to or disclosure
of any trade secrets owned by the Company, (ii) except as would not reasonably be expected to be material to the Company, taken
as a whole, none of the confidential Company Owned Intellectual Property has been disclosed by the Company to any third party except
pursuant to non-disclosure or license agreements governing the use thereof, and (iii) no officer, employee, contractor, consultant
or agent of the Company has misappropriated any trade secrets of any other third party in the course of the performance of her, his or
its respective duties for the Company.
(g) Since
the Lookback Date, no facilities of a university, college, other educational institution or research center was used in the development
of material Company Owned Intellectual Property. To the knowledge of the Company, no employee, consultant or independent contractor of
the Company who was involved in, or who contributed to, the creation or development of any material Company Owned Intellectual Property,
has performed services for or otherwise was under restrictions resulting from his/her relations with any government, university, college
or other educational institution or research center during a period of time during which any Company Owned Intellectual Property were
created or during such time that such employee, consultant or independent contractor was also performing services for or for the benefit
of the Company in a manner which may adversely affect the Company Owned Intellectual Property, nor has any such Person created or developed
any Company Owned Intellectual Property with any Governmental Grant.
(h) Except
as set forth on Section 3.13(h) of the Company Disclosure Schedules, to the Company’s knowledge, (i) the
Company are not infringing, diluting, misappropriating, or otherwise violating, and have not in the past four (4) years infringed,
diluted, misappropriated or otherwise violated materially any Intellectual Property Rights of any other Person, and (ii) none of
the Company Registered Intellectual Property has been adjudged invalid or unenforceable, in whole or in part. There is no Proceeding
pending or initiated, nor to the Company’s knowledge has any Proceeding been threatened, in the past four (4) years, alleging
that the Company has infringed, misappropriated, diluted or otherwise violated any Intellectual Property Rights of any other Person.
To the Company’s knowledge, no Person is infringing, misappropriating, diluting or otherwise violating any material Company Owned
Intellectual Property. To the Company’s knowledge, no present or former officer, director, employee, agent, outside contractor,
or consultant of the Company holds any right, title or interest, directly or indirectly, in whole or in part, in or to the Company Owned
Intellectual Property, except as would not reasonably be expected to be material to the Company. The Company has taken the reasonably
necessary steps to protect the material Company Owned Intellectual Property, which if not taken would have a material adverse impact
on the status or existence of the Company Owned Intellectual Property. In each case in which the Company has acquired (or purported to
acquire) any Intellectual Property Rights from any Person (including any contractor or consultant), the Company has obtained and transferred
all rights in such Intellectual Property Rights to the Company except as would not reasonably be expected to be material to the Company,
and, if applicable, to the maximum extent provided for by, and in accordance with, applicable Laws, the Company has recorded each such
assignment with the relevant patent, copyright, trademark or other authorities in the United States or foreign jurisdictions, as the
case may be.
(i) To
the Company’s knowledge, the Company possesses all source code and other documentation and materials necessary to compile and operate
the Company Products other than source code for any third-party Software included in the Company Products. The Company has not disclosed
or delivered to any escrow agent or any other Person, other than employees or contractors who are subject to written agreement imposing
confidentiality obligations, any of the source code that is material Company Owned Intellectual Property, and, to the Company’s
knowledge, no other Person has the right, contingent or otherwise, to obtain access to or use any such source code. To the Company’s
knowledge, no event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time or both) would
reasonably be expected to, result in the delivery, license or disclosure of any source code that constitutes material Company Owned Intellectual
Property to any Person who is not, as of the date the event occurs or circumstance or condition comes into existence, a current employee
or contractor of the Company subject to confidentiality obligations with respect thereto. Except as set forth in Section 3.13(i) of
the Company Disclosure Schedules and other than customizations or modifications developed or to be developed in the ordinary course of
business, the Company is not under any obligation, whether written or otherwise, to develop any Intellectual Property Rights (including
any element of any Company Product) for any third party.
(j) Except
as set forth on Section 3.13(j) of the Company Disclosure Schedules and except as would not
reasonably be expected to be material to the Company, the Company does not use, modify, or link to, nor has used, modified, linked to,
or created derivative works of any Public Software in a manner which would subject any Company Owned Intellectual Property to any obligations
set forth in the license for such Public Software, that (i) require any Company Owned Intellectual Property to be licensed, sold,
disclosed, distributed, hosted or otherwise made available, including in source code form and/or for the purpose of making derivative
works, for any reason, or (ii) grant, or require the Company to grant, the right to decompile, disassemble, reverse engineer or
otherwise derive the source code or underlying structure of any Company Owned Intellectual Property.
(k) To
the Company’s knowledge, the Company owns, leases, licenses, or otherwise has the legal right to use all IT Assets. Such IT Assets
are adequate in all material respects for the current needs of the Company business. The IT Assets operate and perform, in all material
respects, as required by the Company to conduct its business as currently conducted. The Company has taken commercially reasonable actions
designed to protect the security of the IT Assets, including by implementing procedures designed to inhibit unauthorized access and the
introduction of any Malicious Code. The Company has implemented and maintains reasonable security and back-up measures. To the Company’s
knowledge, the Company use of each IT Asset does not exceed the scope of the rights granted to the Company with respect thereto, including
any applicable limitation upon the usage, type or number of licenses, users, hardware, time, services or systems.
(l) None
of the proprietary software owned by the Company and included in the Company Owned Intellectual Property, including any technical documentation,
specifications, manuals, user guides, promotional material or other written materials related to the Company Owned Intellectual Property
(the “Proprietary Software”) or the IT Assets owned by the Company, to the Company’s knowledge, as of the date
of this Agreement, contain any Malicious Code that would reasonably be expected to, materially disrupt, disable, erase, or grant unauthorized
access to, or harm such Proprietary Software’s or IT Asset’s operation or any other associated Software, firmware, hardware,
computer system or network. To the Company’s knowledge, none of the Proprietary Software contains any bug, defect or error that
(x) adversely affects the functionality or performance of such Proprietary Software or (y) fails to comply with any written
contractual commitment legally binding on the Company relating to the functionality or performance of such Proprietary Software, in each
case (x) and (y), except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect.
(m) To
the Company’s knowledge, since the Lookback Date, there has been no actual or alleged material data security breach, or unauthorized
access to, the IT Assets which resulted in the unauthorized, use, access, deletion, modification, or corruption of any material information
or material data contained therein in a manner that has had, or would reasonably be expected to have, a Company Material Adverse Effect
(n) No
Governmental Entity has any government purpose rights in any Intellectual Property Rights of any Company Product, which could reasonably
be expected to diminish the ability of the Company to sell such products to a Governmental Entity or otherwise commercialize such Company
Product in any material respect.
(o) Section 3.13(o) of
the Company Disclosure Schedules sets forth (i) a true and complete list of all items of material Company Owned Intellectual Property
that were developed or derived, in whole or in part, from grants provided by, or are subject to restrictions, constraint, control, supervision,
or limitation imposed by, the Israel Innovation Authority (“IIA”) under the Innovation Law with respect to “know-how”
developed using a grant provided by the IIA (“IIA Funded Technology”).
(p) Except
as set forth on Section 3.13(p) of the Company Disclosure Schedules, the Company does not have any obligations
to the IIA (including any payment or royalties) nor has it applied for any grants from the IIA which has not been repaid in full or terminated.
(q) Except
as set forth on Section 3.13(q) of the Company Disclosure Schedules, there are no IIA restrictions on transferring
or pledging any Company Owned Intellectual Property or manufacturing any Company Owned Intellectual Property outside of Israel, nor is
any approval required from the IIA for any of the Transactions.
(r) Except
as set forth on Section 3.13(r) of the Company Disclosure Schedules, there are no pending, outstanding
and granted grants and incentives from the IIA, granted to the Company (“IIA Grants”) with respect to IIA Funded Technology.
(s) Accurate
copies of the letters of approval, the Company’s funding applications to the IIA and any other material documentation granted or
issued to the Company in connection with any IIA Grants were previously made available to the SPAC. The Company is in material compliance
with the terms and conditions of all IIA Grants which have been approved and the laws, rules and guidelines applicable thereto,
and has duly fulfilled in all material respects all the undertakings required thereby and does not have any monetary debts to the IIA.
The IIA Grants are currently not under annulment, revocation, withdrawal, suspension, cancellation, recapture or modification, and there
is no outstanding requirement that the Company return or refund any benefits provided under any IIA Grant.
(t) Section 3.13(t) of
the Company Disclosure Schedules contains a complete and accurate list (by name and version number) of all Company Products and identifies,
for each Company Product, whether the Company provides support or maintenance for such Company Product.
(u) Company
has a license to use all Software development tools, Software development kits, library functions, compilers, application programming
interfaces, and all other third-party Software that is used in the operation of the business of the Company or that, to the Company’s
knowledge, is required to create, modify, compile, operate or support any Software that is incorporated into any Company Product.
(v) Except
as would not reasonably be expected to be material to the Company, the Company and all of the Company Products comply in all respects
with the applicable terms of use, and other applicable terms and conditions governing the use of, social media websites (e.g., Facebook,
X).
Section 3.14 Privacy.
(a) Except
as set forth in Section 3.14 of the Company Disclosure Schedules, the Company and the conduct of its businesses are in material
compliance with, and, since the Lookback Date, have been in material compliance with applicable Data Security Requirements, except where
any non-compliance has not had, and would not reasonably be expected to have, a Company Material Adverse Effect. To the knowledge of
the Company, the Transactions will not result in any material liabilities in connection with any Data Security Requirements, except as
would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.
(b) To
the Company’s knowledge, the Company has, since the Lookback Date, materially implemented and maintains commercially reasonable
physical and technical data security measures applicable to the Processing of Personal Information that are reasonably consistent with
(i) reasonable practices in the industry in which the Company operates; and (ii) reasonably designed to comply in material
respects with any existing and currently effective written contractual commitment made by the Company that is applicable to the Processing
of Personal Information; in each case of (i) and (ii) that are intended to protect the integrity, security and operations of
the Company’s IT Assets (and data therein) against loss, theft, unauthorized access or acquisition, modification, disclosure, corruption,
or other unauthorized misuse.
(c) To
the Company’s knowledge, except as would not reasonably be expected to have a Company Materials Adverse Effect, the Company has
not, since the Lookback Date, received any written subpoenas, written demands or other notices from any Governmental Entity or other
private entity investigating, inquiring into, or otherwise relating to any actual or potential violation of any Data Security Requirements
and to Company’s knowledge, the Company is not currently under investigation by any Governmental Entity or other private entity
for any actual or potential material violation of any Data Security Requirements, or alleged material violations of Laws with respect
to Personal Information possessed by the Company. No written notice, complaint, claim, enforcement action, or litigation has been served
on, or, to the Company’s knowledge, formally initiated against the Company alleging any material violations of any Data Security
Requirements.
Section 3.15 Labor
Matters; Independent Contractors.
(a) Except
as set forth on Section 3.15(a) of the Company Disclosure Schedules, the Company does not (A) have
any material Liability for any arrears of wages or other compensation (including salaries, wage premiums, commissions, fees or bonuses)
to their employees and independent contractors (other than routine payment that are due to be paid in the normal course of business)
under applicable Law, Contract or Company policy or any penalty or other sums for failure to comply with any of the foregoing, or (B) have
any material Liability for any payment to any trust or other fund governed by or maintained by or on behalf of any Governmental Entity
with respect to unemployment compensation benefits, social security, social insurances or other benefits or obligations for any employees
of the Company (other than routine payments to be made in the normal course of business and consistent with past practice). No officer
of the Company is under notice of termination and there are no proposals for such termination or to materially change any terms of employment
of any such officer. The Company has withheld all amounts required by applicable Law or by agreement to be withheld from wages, salaries
and other payments to employees or independent contractors of the Company, except as has not and would not reasonably be expected to
result in, individually or in the aggregate, material Liability to the Company.
(b) Except
as set forth on Section 3.15(b) of the Company Disclosure Schedules, since the Lookback Date, there
are no, and there have been no unfair labor practice charges, material grievances, arbitrations, strikes, lockouts, work stoppages, slowdowns,
picketing, hand billing or other material labor disputes against or affecting the Company in any material respect.
(c) To
the Company’s knowledge, since the Lookback Date, there are, and there have been, no actual or threatened union, works council,
employee representative or similar labor organizing activities with respect to any employees of the Company.
(d) The
Company has not, since the Lookback Date, incurred any material Liability with respect to any sexual harassment, discrimination, or retaliation
allegations and, to the Company’s knowledge, there have been no such allegations relating to executive officers or directors of
the Company, that, if known to the public, would bring the Company into material disrepute.
(e) The
Company has not experienced any material employment-related Liability with respect to or arising out of any Law, Order, directive or
published guidelines by any Governmental Entity in connection with or in response to COVID-19.
(f) Except
as set forth on Section 3.15(f) of the Company Disclosure Schedules, no employee or consultant of the Company has
been granted the right to any special payment triggered at termination or resignation, other than (i) in accordance with the requirements
of Law and (ii) in excess of three (3) months’ salary. No employees of the Company (in their capacity as such) are
represented by any labor union, or subject to any CBA or extension order, except for certain provisions from CBAs incorporated into Israeli
Labor Law by an extension order (צו הרחבה) that generally apply to all employees in
Israel nor, to the Company’s knowledge, are there any union organization activities pending or threatened by the Company’s
employees.
(g) Except
as set forth on Section 3.15(g) of the Company Disclosure Schedules, since the Lookback Date, the
Company has complied in all material respects with all labor and social security laws, procedures and agreements, relating to employment,
terms and conditions of employment and all individual or collective labor agreements and internal regulations, including without limitation,
those relating to wages, hours, vacations and working conditions for its employees, equal opportunity, employment discrimination, disability,
occupational safety and health, workers’ compensation, and to the proper withholding and remission to the proper Tax and other
authorities of all sums required to be withheld from employees under applicable Laws respecting such withholding.
(h) Since
the Lookback Date, each Person who has provided services in a material scope to the Company and was classified as an independent contractor,
consultant, leased employee, volunteer, or other non-employee service provider was to the Company’s knowledge properly classified
and treated as such. Each Contract with such Person contains provisions which state that no employer-employee relations exist between
such consultant or contractor and the Company. Since the Lookback Date, no Company contractor and consultant or former Company contractor
and consultant has issued to the Company a written notice of a claim or any other allegation that such contractor and/or consultant was
not rightly classified as an independent contractor.
Section 3.16 Insurance.
Section 3.16 of the Company Disclosure Schedules sets forth a list of all material policies covering its assets, business,
equipment, properties, operations, employees, officers and directors as of the date of this Agreement. To the knowledge of the Company,
such policies, with respect to their amounts and types of coverage, are adequate to insure the Company in all material respects in the
operation of its business as currently conducted. Except as set forth on Section 3.16 of the Company Disclosure Schedules,
all such policies are in full force and effect and all premiums due and payable thereon as of the date of this Agreement have been paid
in full as of the date of this Agreement. The Company has not received any written notice of cancellation of any such material insurance
policies. As of the date of this Agreement, and to the knowledge of the Company, no claim by the Company is pending under any such material
policies as to which coverage has been denied or disputed (other than a customary reservation of rights notice) by the underwriters thereof,
except as is not and would not reasonably be expected to be, individually or in the aggregate, material to the Company, taken as a whole.
Section 3.17 Tax
Matters.
(a) Except
as set forth on Section 3.17(a) of the Company Disclosure Schedules, the Company has timely filed,
or caused to be timely filed, all income and other material Tax Returns required to be filed by it (taking into account all available
extensions) and such Tax Returns true, accurate, correct and complete in all material respects. The Company has timely paid, or caused
to be paid, all material Taxes required to be paid, other than such Taxes for which adequate reserves have been established in accordance
with GAAP.
(b) The
Company has complied in all material respects with all applicable Tax Laws relating to withholding and remittance of all material amounts
of Taxes, and all material amounts of Taxes required by applicable Tax Laws to be withheld by the Company have been withheld and timely
paid over to the appropriate Governmental Entity.
(c) Except
as set forth on Section 3.17(c) of the Company Disclosure Schedules, there are no material claims, assessments, audits,
examinations, investigations or other Proceedings pending, in progress or threatened in writing against the Company in respect of any
material Taxes, and the Company has been notified in writing of any material proposed Tax claims or assessments against the Company (other
than claims or assessments that have been settled or resolved).
(d) There
are no material Liens with respect to any Taxes upon the Company’s assets, other than Permitted Liens. The Company has no outstanding
waivers or extensions of any applicable statute of limitations to assess any material amount of Taxes. Except as set forth on Section 3.17(d) of
the Company Disclosure Schedules, there are no outstanding requests by the Company for any extension of time within which to file any
Tax Return or within which to pay any Taxes shown to be due in any Tax Return (other than an automatic extension of time not requiring
the Consent of the applicable Governmental Entity).
(e) The
Company is not a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement or similar agreement,
arrangement or practice with respect to Taxes (including closing agreement or other agreement relating to Taxes with any Governmental
Entity) (other than any (i) such agreement with respect to which any of the Company are the only parties, or (ii) customary
commercial agreement, contract or arrangement entered into in the ordinary course of business and the principal purpose of which does
not relate to Taxes).
(f) The
Company is duly registered and has complied with all requirements concerning Israeli value added Tax (“VAT”).
(g) The
Company has not received a written notice from a Governmental Entity in a jurisdiction where the Company does not file Tax Returns that
the Company is or may be subject to Tax by that jurisdiction.
(h) The
Company is in compliance in all material respects with all applicable transfer pricing laws and regulations, and the prices for any property
or services provided by or to the Company are arm’s length prices for purposes of the applicable Laws, including Section 85A
to the Ordinance and the Income Tax Regulations (Determination of Market Terms) 2006.
(i) The
Company is Tax resident only in its country of incorporation, formation or organization, as applicable.
(j) Except
as set forth on Section 3.17(j) of the Company Disclosure Schedules, the Company (i) does not own any “Approved
Enterprise”, “Benefitted Enterprise” or “Preferred Enterprise,” as each such term is defined in the Israeli
Law for Encouragement of Capital Investments, 1959, or (ii) is not subject to any restrictions or limitations pursuant to Part E2
of the Ordinance or pursuant to any tax ruling made with reference to the provisions of Part E2.
(k) The
Company is in compliance with the terms, conditions and requirements of its Governmental Grants and has duly fulfilled the undertakings
relating thereto. The Company is in compliance with the conditions and requirements stipulated by the instruments of approval granted
to it.
(l) The
Company has never been at any time a “real property” company (Igud Mekarkein) as such term is defined in the Israeli
Real Property Taxation Law (Capital Gain, Sale and Purchase), 1963.
(m) The
Company has not participated or engaged in any transaction listed in Section 131(g) of the Ordinance and the Israeli Income
Tax Regulations (Reportable Tax Planning), 2006 promulgated thereunder. The Company does not and has never taken a tax position that
is subject to reporting under Section 131E of the Ordinance. The Company has never obtained a legal or Tax opinion that is subject
to reporting under Section 131D of the Ordinance.
(n) The
Company has not taken or agreed to take any action not contemplated by this Agreement and/or any Ancillary Documents that could reasonably
be expected to prevent the Mergers from qualifying for the Intended U.S. Tax Treatment. To the knowledge of the Company, no facts or
circumstances exist that could reasonably be expected to prevent the Mergers from qualifying for the Intended U.S. Tax Treatment.
Section 3.18 Brokers.
Except for fees (including the amounts due and payable assuming the Closing occurs) set forth on Section 3.18 of the Company
Disclosure Schedules (which fees shall be the sole responsibility of the Company, except as otherwise provided in Section 8.6),
no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company or any of its Affiliates
for which the Company has any obligation.
Section 3.19 Real
and Personal Property.
(a) Owned
Real Property. The Company does not own a fee interest in any real property.
(b) Leased
Real Property. Section 3.19(b) of the Company Disclosure Schedules sets forth a true and complete list (including
street addresses) of all real property leased, subleased, or similarly used or occupied by the Company (the “Leased Real Property”)
and all Real Property Leases pursuant to which the Company is a tenant or landlord as of the date of this Agreement. True and complete
copies of all such Real Property Leases have been made available to SPAC. Each Real Property Lease is in full force and effect enforceable
in accordance with its terms against the Company and, to the Company’s knowledge, each other party thereto (subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other Laws affecting generally the enforcement of creditors’
rights and subject to general principles of equity). There is no material breach or default by the Company or, to the Company’s
knowledge, any counterparty or third-party under any Real Property Lease, and, to the Company’s knowledge, no event has occurred
which (with or without notice or lapse of time or both) would constitute a material breach or default or would permit termination of
such Real Property Leases. Except as set forth on Section 3.19(b) of the Company Disclosure Schedules and as permitted
under the Permitted Liens, with respect to each of the Real Property Leases: (i) to the Company’s knowledge, there are no
disputes with respect to such Real Property Lease; (ii) the Company has not subleased, licensed or otherwise granted any Person
the right to use or occupy such Leased Real Property or any portion thereof; and (iii) the Company has not collaterally assigned
or granted any other security interest in such Real Property Lease or any interest therein. The Leased Real Property comprises all of
the real property used by the Company in relation to its business as currently conducted. No representation or warranty is made herein
regarding the status of the fee title (and any matters pertaining to such fee title) of any real property subject to any Real Property
Lease; it being understood and agreed that the provisions of this Section 3.19(b), as they relate to any Leased Real Property,
pertain only to the leasehold interest of the Company.
(c) Personal
Property. The Company has good and marketable title to, or a valid leasehold interest in or license or right to use, the material
assets and properties of the Company reflected in the Financial Statements, except for assets disposed of in the ordinary course of business.
(d) Assets.
Immediately after the Acquisition Merger Effective Time, the assets of the Company will constitute the assets necessary to conduct the
business of the Company immediately after the Closing in materially the same manner (for the Company, taken as a whole) as it is conducted
on the date of this Agreement.
Section 3.20 Transactions
with Affiliates. Section 3.20 of the Company Disclosure Schedules sets forth all Contracts between the Company, on the
one hand, and any officer, director, employee, member, direct or indirect shareholder or Affiliate of the Company or, to the knowledge
of the Company, any immediate family member of the foregoing Persons, on the other hand (each Person identified in this clause, a “Company
Related Party”), other than (i) Contracts with respect to a Company Related Party’s employment or other similar
engagement with (including benefit plans and other ordinary course compensation from) the Company entered into in the ordinary course
of business, (ii) Contracts with respect to a Company Shareholder’s or a holder of Company Equity Awards’ status as
a holder of Equity Securities of the Company and (iii) Contracts entered into after the date of this Agreement that are either permitted
pursuant to Section 5.1(b) or entered into in accordance with Section 5.1(b). The Contracts, that are required
to be disclosed pursuant to this Section 3.20 are referred to herein as “Company Related Party Transactions.”
To the Company’s knowledge, no officer or director of the Company: (i) has any direct or indirect financial interest in, or
is an officer, director, manager, employee or consultant of, (A) any competitor, the Company or (B) any other entity in any
business arrangement or relationship with the Company which is material to the Company’s business as currently conducted; provided,
however, for purposes of the foregoing clauses (A) and (B), that the ownership of securities listed on any
national securities exchange representing less than five (5%) of the outstanding voting power of any Person shall not be deemed to be
a “financial interest” in any such Person; (ii) has any interest in any property, asset or right used by the Company
for the business as currently conducted; (iii) has outstanding any Indebtedness owed to the Company; or (iv) has received any
funds from the Company since the date of the Latest Balance Sheet, except for employment-related compensation received in the ordinary
course of business.
Section 3.21 Compliance
with International Trade & Anti-Corruption Laws.
(a) Since
January 1, 2020, and except where the failure to be, or to have been, in compliance with such Laws has not been or would not, individually
or in the aggregate, reasonably be expected to be material to the Company taken as a whole, neither the Company nor, to the Company’s
knowledge, any of its Representatives, or any other Persons acting for or on behalf of any of the foregoing, (i) is or has been
a Sanctioned Person, nor (ii) has engaged or is engaging in any dealings or transactions with, or for the benefit of, any Sanctioned
Person or in any Sanctioned Country.
(b) Since
the Lookback Date, and except where the failure to be, or to have been, in compliance with such Laws has not been or would not, individually
or in the aggregate, reasonably be expected to be material to the Company taken as a whole, to the Company’s knowledge, the Company
has been in compliance with applicable Sanctions and Trade Control Laws, including (i) having engaged or is engaging in any business
dealings within the scope of any required licenses or authorizations under Sanctions and Trade Control Laws, (ii) having sourced
and imported inventory, materials, and other goods in compliance with Sanctions and Trade Control Laws, and (iii) having paid in
full any material customs duties, fees, assessments, charges and other Taxes or other payments of any kind owed with respect to the Company’s
export, import, or manufacturing activities.
(c) Neither
the Company, its directors or officers, nor, to the Company’s knowledge, any of its employees, agents, or any other Persons acting
for or on behalf of the Company has, directly or knowingly indirectly (i) made, offered, promised, authorized, paid or received
any unlawful bribes, kickbacks, gifts, contributions, payment, or other similar benefits to or from any Person, (ii) made, offered,
promised, authorized or paid any unlawful contributions to a domestic or foreign political party, office, or candidate (iii) otherwise
made, offered, promised, authorized, paid or received any improper payment in violation of any Anti-Corruption Laws, (iv) established
or maintained any unrecorded fund or asset or made any false entries in any books or records for any purpose, (v) has established
or maintained, or is maintaining, any unlawful fund of corporate monies or other properties; or (vi) has violated or is violating
any Anti-Corruption Laws.
(d) To
the knowledge of the Company, there is no current investigation, allegation, request for information, or other inquiry by any Governmental
Entity regarding the actual or possible violation of the Anti-Corruption Laws, Sanctions, or Trade Control Laws by the Company and since
the Lookback Date, the Company has not received any written or unwritten notice that there is any investigation, allegation, request
for information, or other inquiry by any Governmental Entity regarding an actual or possible violation of the Anti-Corruption Laws, Sanctions,
or Trade Control Laws.
(e) Except
as set forth on Section 3.21(e) of the Company Disclosure Schedule, (i) the Company is, or is required to be, registered
with the Israeli Ministry of Defense as a security exporter, (ii) the business of the Company does not involve the use or development
of, or engagement in, encryption technology, or other technology whose development, commercialization, marketing or export is restricted
under Israeli Law, and (iii) the business of the Company does not require the Company to obtain a license from the Israeli Ministry
of Economy and/or the Israeli Ministry of Defense or an authorized body thereof pursuant to Section 2(a) of the Israeli Control
of Products and Services Declaration (Engagement in Encryption), 1974, or any other legislation regulating the development, commercialization,
marketing or export of technology, and such licenses as are required have been or in the process of being obtained and are listed in
Section 3.21(e) of the Company Disclosure Schedule.
Section 3.22 Information
Supplied. The information relating to the Company that has been supplied or to be supplied by or on behalf of the Company expressly
for inclusion or incorporation by reference prior to the Closing in the Registration Statement / Proxy Statement will, when the Registration
Statement / Proxy Statement is declared effective or first mailed to the SPAC Shareholders or at the time of the SPAC Shareholders Meeting,
and in the case of any amendment thereto, at the time of such amendment, contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under
which they are made, not misleading. Notwithstanding the foregoing, no representation is made by Company with respect to the information
that has been or will be supplied by SPAC or any of its Representatives expressly for inclusion in the Registration Statement / Proxy
Statement.
Section 3.23 Reserved.
Section 3.24 HSR
Act. The Company (a) is its own “ultimate parent entity”; (b) is not “engaged in manufacturing”;
and (c) does not have “total assets” of $23.9 million or “annual net sales” of $239.0 million or more, as
the quoted terms are defined in 16 C.F.R. §§ 801.1, 801.11.
Section 3.25 Investigation;
No Other Representations.
(a) The
Company, on its own behalf and on behalf of its Representatives, acknowledges, represents, warrants and agrees that (i) it has conducted
its own independent review and analysis of, and, based thereon, has formed an independent judgment concerning, the business, assets,
condition, operations and prospects of, SPAC and (ii) it has been furnished with or given access to such documents and information
about SPAC and its businesses and operations as it and its Representatives have deemed necessary to enable it to make an informed decision
with respect to the execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of the Transactions.
(b) In
entering into this Agreement and the Ancillary Documents to which it is or will be a party, the Company has relied solely on its own
investigation and analysis and the representations and warranties expressly set forth in ARTICLE IV, in the Ancillary Documents
to which it is or will be a party, and any certificates delivered by SPAC or an officer thereof, on the SPAC SEC Reports, and no other
representations or warranties of SPAC, any SPAC Non-Party Affiliate or any other Person, either express or implied, and the Company,
on its own behalf and on behalf of its Representatives, acknowledges, represents, warrants and agrees that, except for the representations
and warranties expressly set forth in ARTICLE IV and in the Ancillary Documents to which it is or will be a party, none of
SPAC, any SPAC Non-Party Affiliate or any other Person makes or has made any representation or warranty, either express or implied, in
connection with or related to this Agreement, the Ancillary Documents or the Transactions.
Section 3.26 EXCLUSIVITY
OF REPRESENTATIONS AND WARRANTIES. NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO SPAC OR ANY OF ITS REPRESENTATIVES OF ANY DOCUMENTATION
OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
ARTICLE III, THE ANCILLARY DOCUMENTS OR CERTIFICATES DELIVERED BY THE COMPANY OR ANY OFFICER THEREOF, NONE OF THE COMPANY,
ANY COMPANY NON-PARTY AFFILIATE OR ANY OTHER PERSON MAKES, AND THE COMPANY EXPRESSLY DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES OF
ANY KIND OR NATURE, EXPRESS OR IMPLIED, IN CONNECTION WITH THIS AGREEMENT, THE ANCILLARY DOCUMENTS, THE CERTIFICATES DELIVERED BY
THE COMPANY OR ANY OFFICER THEREOF, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, INCLUDING AS TO THE MATERIALS RELATING
TO THE BUSINESS AND AFFAIRS OR HOLDINGS OF THE COMPANY THAT HAVE BEEN MADE AVAILABLE TO SPAC OR ANY OF ITS REPRESENTATIVES OR IN ANY
PRESENTATION OF THE BUSINESS AND AFFAIRS OF THE COMPANY BY OR ON BEHALF OF THE MANAGEMENT OF THE COMPANY OR OTHERS IN CONNECTION WITH
THE TRANSACTIONS, AND NO STATEMENT CONTAINED IN ANY OF SUCH MATERIALS OR MADE IN ANY SUCH PRESENTATION SHALL BE DEEMED A REPRESENTATION
OR WARRANTY HEREUNDER OR OTHERWISE OR DEEMED TO BE RELIED UPON BY SPAC OR ANY SPAC NON-PARTY AFFILIATE IN EXECUTING, DELIVERING AND PERFORMING
THIS AGREEMENT, THE ANCILLARY DOCUMENTS, THE CERTIFICATES DELIVERED BY THE COMPANY OR ANY OFFICER THEREOF OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE III. THE ANCILLARY DOCUMENTS,
OR THE CERTIFICATES DELIVERED BY THE COMPANY OR ANY OFFICER THEREOF, IT IS UNDERSTOOD THAT ANY COST ESTIMATES, PROJECTIONS OR OTHER
PREDICTIONS, ANY DATA, ANY FINANCIAL INFORMATION OR ANY MEMORANDA OR OFFERING MATERIALS OR PRESENTATIONS, INCLUDING, BUT NOT LIMITED
TO, ANY OFFERING MEMORANDUM OR SIMILAR MATERIALS MADE AVAILABLE BY OR ON BEHALF OF THE COMPANY ARE NOT AND SHALL NOT BE DEEMED TO BE
OR TO INCLUDE REPRESENTATIONS OR WARRANTIES OF THE COMPANY, ANY COMPANY NON-PARTY AFFILIATE OR ANY OTHER PERSON, AND ARE NOT AND SHALL
NOT BE DEEMED TO BE RELIED UPON BY SPAC OR ANY SPAC NON-PARTY AFFILIATE IN EXECUTING, DELIVERING OR PERFORMING THIS AGREEMENT, THE ANCILLARY
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF THIS Section 3.26.
SHALL NOT EXCUSE ANY FRAUD OR WILLFUL MISCONDUCT OF THE COMPANY.
Article IV.
REPRESENTATIONS AND WARRANTIES RELATING TO SPAC
Subject
to Section 8.8, except as set forth in the SPAC Disclosure Schedules, or except as set forth in any SPAC SEC Reports filed
or furnished to the SEC on or prior to the date of this Agreements (to the extent the qualifying nature of such disclosure is readily
apparent from the content of such SPAC SEC Reports), excluding (a) any disclosures in any “risk factors” section
that do not constitute statements of fact, disclosures in any forward-looking statements disclaimers and other disclosures that are generally
cautionary, predictive or forward-looking in nature, or (b) any information incorporated by reference into the SPAC SEC Reports
(other than from other SPAC SEC Reports), SPAC hereby represents and warrants to the Company as follows:
Section 4.1 Organization
and Qualification.
(a) SPAC
is an exempted company incorporated, validly existing and in good standing under the Laws of the Cayman Islands. SPAC has the requisite
corporate power and authority to own, lease and operate its properties and to carry on its businesses as presently conducted in all material
respects. True, correct and complete copies of the Governing Documents of SPAC have been made available to the Company, in each case,
as amended and in effect as of the date of this Agreement. The Governing Documents of SPAC are in full force and effect, and SPAC is
not, and at all times has not been, in breach or violation in any material respect of any provision set forth in its Governing Documents.
At a meeting dully called and held, the SPAC Board has (a) approved this Agreement, the Ancillary Documents to which SPAC is or
will be a party and the Transactions (including the SPAC Merger), (b) determined that this Agreement and the Transactions, including
the SPAC Merger, are advisable and are fair to and in the best interests of SPAC and its shareholders, and (c) recommended, among
other things, approval of this Agreement and the Transactions (including the SPAC Merger) by the holders of SPAC Shares entitled to vote
thereon.
Section 4.2 Authority(a).
SPAC has the requisite corporate power and authority to execute and deliver this Agreement and each Ancillary Document to which it is
or will be a party, to perform its obligations hereunder and thereunder, and to consummate the Transactions (including the SPAC Merger).
Subject to the receipt of the SPAC Shareholder Approval, the execution, delivery and performance of this Agreement and the Ancillary
Documents to which SPAC is or will be a party and the consummation of the Transactions have been (or, in the case of any Ancillary Document
entered into after the date of this Agreement, will be upon execution thereof) duly authorized by all necessary corporate action on the
part of SPAC. Except for the SPAC Shareholder Approval, no other corporate or equivalent proceeding on the part of SPAC is necessary
to authorize this Agreement or the Ancillary Documents and or SPAC’s performance hereunder or thereunder. This Agreement has been
and each Ancillary Document to which SPAC is or will be a party has been or will be, upon execution and delivery thereof, duly and validly
executed and delivered by SPAC and constitutes or will constitute, upon execution and delivery thereof, as applicable, a valid, legal
and binding obligation of SPAC (assuming this Agreement has been and the Ancillary Documents to which SPAC is or will be a party are
or will be, upon execution thereof, as applicable, duly authorized, executed and delivered by the other Persons party hereto or thereto,
as applicable), enforceable against SPAC in accordance with their respective terms (subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other Laws affecting generally the enforcement of creditors’ rights and subject to general
principles of equity).
Section 4.3 Consents
and Requisite Governmental Approvals; No Violations.
(a) No
Consent, Permit, approval or authorization of, or designation, declaration, filing with or notification to, any Governmental Entity is
required on the part of SPAC with respect SPAC’s execution, delivery or performance of its obligations under this Agreement or
the Ancillary Documents to which it is or will be party or the consummation of the transactions contemplated by this Agreement (including
the SPAC Merger), except for (i) compliance with and filings and Consents under the HSR Act, if any, (ii) the filing with the
SEC of (A) the Registration Statement / Proxy Statement and the declaration of the effectiveness thereof by the SEC, (B) any
other documents or information required pursuant to applicable requirements, if any, of the Federal Securities Laws, and (C) such
reports under Section 13(a) or 15(d) of the Exchange Act as may be required in connection with this Agreement, the Ancillary
Documents or the Transactions, (iii) compliance with and filings or notifications required to be filed with state securities regulators
pursuant to “blue sky” Laws and state takeover Laws as may be required in connection with this Agreement, the Ancillary Documents
or the Transactions, (iv) filing of the Plan of Merger with the Registrar of Companies of the Cayman Islands and all such other
notices or filings required under the Cayman Companies Law with respect to the consummation of the SPAC Merger and the issuance of the
certificate of merger by the Companies Registrar, (v) applicable requirements of and filings under the Israeli Securities Laws or
any other similar Laws, (vi) compliance and filings with the ITA and the Companies Registrar, (vii) compliance with, applicable
requirements of and filings under the Cayman Companies Law or any other similar Laws, (vii) the SPAC Shareholder Approval, which
shall have been secured on or prior to the SPAC Merger Effective Time, or (viii) any other Consents, approvals, authorizations,
designations, declarations, waivers or filings, the absence of which would not, individually or in the aggregate, reasonably be expected
to have a SPAC Material Adverse Effect.
(b) Subject
to the receipt of the Consents, approvals, authorizations and other requirements set forth in Section 4.3(a), neither the
execution, delivery or performance by SPAC of this Agreement nor the Ancillary Documents to which SPAC is or will be a party nor the
consummation of the Transactions (including the SPAC Merger), directly or indirectly (with or without due notice or lapse of time or
both), (i) result in any breach of any provision of the Governing Documents of SPAC, (ii) result in a violation or breach of,
or constitute a default or give rise to any right of termination, consent, cancellation, amendment, modification, suspension, revocation
or acceleration (with or without notice) under, any of the terms, conditions or provisions of any Contract to which SPAC is a party,
(iii) violate, or constitute a breach under, any Order or applicable Law to which SPAC or any of its properties or assets are bound
or (iv) result in the creation of any Lien upon any of the assets or properties (other than any Permitted Liens) of SPAC, except,
in the case of any of clauses (ii) through (iv) above, as would not, individually or in the aggregate, reasonably
be expected to have a SPAC Material Adverse Effect.
(c) None
of SPAC or any entity controlled, directly or indirectly through any Person, by SPAC beneficially owns any Company Ordinary Shares.
Section 4.4 Brokers.
Except for fees (including the amounts due and payable assuming the Closing occurs) set forth on Section 4.4 of the SPAC
Disclosure Schedules (which fees shall be the sole responsibility of SPAC, except as otherwise provided in Section 8.6),
no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of SPAC for which SPAC or any of its
Affiliates, including the Sponsor, has any obligation.
Section 4.5 Information
Supplied. None of the information supplied or to be supplied by or on behalf of SPAC expressly for inclusion or incorporation by
reference prior to the Closing in the Registration Statement / Proxy Statement will, when the Registration Statement / Proxy Statement
is declared effective or when the Registration Statement / Proxy Statement is mailed to the SPAC Shareholders or at the time of the SPAC
Shareholders Meeting, and in the case of any amendment thereto, at the time of such amendment, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they are made, not misleading.
Section 4.6 Capitalization
of SPAC.
(a) Section 4.6(a) of
the SPAC Disclosure Schedules sets forth a true and complete statement as of the date of this Agreement of the number and class or series
(as applicable) of the issued and outstanding (x) SPAC Shares and (y) SPAC Warrants. All outstanding Equity Securities of SPAC
have been duly authorized and validly issued and are fully paid and non-assessable. The issuance of SPAC Shares upon the exercise or
conversion, as applicable, of Equity Securities that are derivative securities, will, upon exercise or conversion in accordance with
the terms of such Equity Securities against payment therefore, if any, be duly authorized, validly issued, fully paid, and non-assessable.
Except as set forth on Section 4.6(a) of the SPAC Disclosure Schedules, such Equity Securities (i) were not issued
in violation of the Governing Documents of SPAC, (ii) are not subject to any preemptive rights, call option, right of first refusal,
subscription rights, transfer restrictions or similar rights of any Person (other than transfer restrictions under applicable Securities
Laws or under the Governing Documents of SPAC) and were not issued in violation of any preemptive rights, call option, right of first
refusal, subscription rights, transfer restrictions or similar rights of any Person and (iii) have been offered, sold and issued
in compliance in all material respects with applicable Law, including Securities Laws. Except for the SPAC Shares and SPAC Warrants set
forth on Section 4.6(a) of the SPAC Disclosure Schedules (subject to any SPAC Shareholder Redemptions), immediately
prior to Closing, there shall be no other outstanding Equity Securities of SPAC.
(b) Except
as disclosed in the SPAC SEC Reports, as set forth on Section 4.6(b) of the SPAC Disclosure Schedules,
as expressly contemplated by this Agreement, the Ancillary Documents or the Transactions, there are no outstanding (i) equity appreciation,
phantom equity or profit participation rights or (ii) options, restricted stock, phantom stock, warrants, purchase rights, subscription
rights, conversion rights, exchange rights, calls, puts, rights of first refusal or first offer or other Contracts or commitments of
any kind of any character, written or oral, that could require SPAC, and, except as expressly contemplated by this Agreement, the Ancillary
Documents or the Transactions, there is no obligation of SPAC, to issue, sell or otherwise cause to become outstanding or to acquire,
repurchase or redeem any Equity Securities or securities convertible into or exchangeable for Equity Securities of SPAC. Except as disclosed
in the SPAC SEC Reports or SPAC’s Governing Documents, there are no outstanding contractual obligations of SPAC to repurchase,
redeem or otherwise acquire any securities or Equity Securities of SPAC. Except as disclosed in the SPAC SEC Reports or in Section 4.6(b) of
the SPAC Disclosure Schedules, there are no outstanding bonds, debentures, notes or other Indebtedness of SPAC having the right to vote
(or convertible into, or exchangeable for, securities having the right to vote) on any matter for which SPAC Shareholders may vote. Except
for the Sponsor Support Agreement, Registration Rights and Lock-Up Agreement or as otherwise as disclosed in the SPAC SEC Reports or
in Section 4.6(b) of the SPAC Disclosure Schedules, SPAC is not a party to any shareholders agreement,
voting agreement or registration rights agreement relating to SPAC Shares or any other Equity Securities of SPAC or other agreements
or understandings to which SPAC is a party or by which SPAC is bound with respect to any ownership interests of SPAC. SPAC does not own
any Equity Securities in any Person or has any right, option, warrant, conversion right, stock appreciation right, redemption right,
repurchase right, agreement, arrangement or commitment of any character under which a Person is or may become obligated to issue or sell,
or give any right to subscribe for or acquire, or in any way dispose of, any Equity Securities, or any securities or obligations exercisable
or exchangeable for or convertible into any Equity Securities, of such Person.
Section 4.7 SEC
Filings. SPAC has timely filed or furnished all statements, forms, reports and documents required to be filed or furnished by it
prior to the date of this Agreement with the SEC pursuant to Federal Securities Laws since its IPO as set forth on Section 4.7
of the SPAC Disclosure Schedules (collectively, and together with any exhibits and schedules thereto and other information incorporated
therein, and as they have been supplemented, modified or amended since the time of filing, the “SPAC SEC Reports”).
Each of the SPAC SEC Reports, as of their respective dates of filing, and as of the date of any amendment or filing that superseded the
initial filing, complied in all material respects with the applicable requirements of the Federal Securities Laws (including, as applicable,
the Sarbanes-Oxley Act and any rules and regulations promulgated thereunder) applicable to the SPAC SEC Reports. As of their respective
dates of filing, the SPAC SEC Reports did not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
As of the date of this Agreement, there are no outstanding or unresolved comments in comment letters received from the SEC with respect
to the SPAC SEC Reports.
Section 4.8 Trust
Account. As of January 6, 2025, SPAC has an amount in cash in the Trust Account of at least $9,457,831.00. The funds held in
the Trust Account are (i) invested in United States “government securities” within the meaning of Section 2(a)(16)
of the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7
promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations and (ii) held in trust
pursuant to that certain Investment Management Trust Agreement, dated as of January 12, 2023 (the “Trust Agreement”),
by and between SPAC and ETC, as trustee (the “Trustee”). There are no separate agreements, side letters or other agreements
or understandings (whether written or unwritten, express or implied) that would cause the description of the Trust Agreement in the SPAC
SEC Reports to be inaccurate in any material respect or, to the SPAC’s knowledge, that would entitle any Person to any portion
of the funds in the Trust Account (other than (x) in respect of deferred underwriting commissions or Taxes, (y) the SPAC Shareholders
who shall have elected to redeem their SPAC Shares pursuant to the Governing Documents of SPAC or (z) if SPAC fails to complete
a Business Combination within the allotted time period set forth in the Governing Documents of SPAC and liquidates the Trust Account,
subject to the terms of the Trust Agreement, SPAC (in limited amounts to permit SPAC to pay the expenses of the Trust Account’s
liquidation, dissolution and winding up of SPAC) and then the SPAC Shareholders). Prior to the Closing, none of the funds held in the
Trust Account are permitted to be released, except in the circumstances described in the Governing Documents of SPAC, and the Trust Agreement,
SPAC has performed all material obligations required to be performed by it to date under and has complied in all material respects with
the terms of the Trust Agreement, and is not in material default, breach or delinquent in performance or any other respect (claimed or
actual) in connection with the Trust Agreement, and, to SPAC’s knowledge, no event has occurred which, with due notice or lapse
of time or both, would constitute a material default under the Trust Agreement. As of the date of this Agreement, there are no Proceedings
pending and, to the knowledge of SPAC, threatened with respect to the Trust Account. Since January 8, 2024, SPAC has not released
any money from the Trust Account (other than interest income earned on the funds held in the Trust Account as permitted by the Trust
Agreement). Upon the consummation of the Transactions contemplated by this Agreement, including the distribution of assets from the Trust
Account (A) in respect of deferred underwriting commissions or Taxes or (B) to the SPAC Shareholders who have elected to redeem
their SPAC Shares pursuant to the Governing Documents of SPAC, each in accordance with the terms of and as set forth in the Trust Agreement,
SPAC shall have no further obligation under either the Trust Agreement or the Governing Documents of SPAC to liquidate or distribute
any assets held in the Trust Account, and the Trust Agreement shall terminate in accordance with its terms.
Section 4.9 Indebtedness.
As of the date hereof, SPAC does not have, or have any Contract requiring it to enter into or incur, any obligations with respect to
or under any Indebtedness.
Section 4.10 Transactions
with Affiliates. Section 4.10 of the SPAC Disclosure Schedules sets forth all Contracts between (a) SPAC, on the
one hand, and (b) any officer, director, employee, partner, member, manager, direct or indirect equityholder (including the Sponsor),
or Affiliate of either SPAC or the Sponsor, on the other hand (each Person identified in this clause (b), a “SPAC Related Party”).
Except as set forth in Section 4.10 of the SPAC Disclosure Schedules, no SPAC Related Party (A) owns any interest
in any material asset used in the business of SPAC, (B) possesses, directly or indirectly, any material financial interest in,
or is a director or executive officer of, any Person which is a material client, supplier, customer, lessor or lessee of SPAC or (C) owes
any material amount to, or is owed material any amount by, SPAC. All Contracts, arrangements, understandings, interests and other matters
that are required to be disclosed pursuant to this Section 4.10 are referred to herein as “SPAC Related Party Transactions”.
Section 4.11 Litigation.
There is (and since its organization, incorporation or formation, as applicable, there has been) no Proceeding pending or, to SPAC’s
knowledge, threatened against or involving SPAC or its assets or properties, including any condemnation or similar Proceedings, or against
any of SPAC’s officers, directors or employees (in their capacities as officers, directors or employees of SPAC), that, if adversely
decided or resolved, would, individually or in the aggregate, reasonably be expected to have a SPAC Material Adverse Effect. Neither
SPAC nor any of its properties or assets is subject to any material Order or any settlement or similar agreement that imposes any material
ongoing obligation or restriction on SPAC. As of the date of this Agreement, there are no material Proceedings by SPAC pending against
any other Person. There is no unsatisfied judgment or any open injunction binding upon SPAC which would, individually or in the aggregate,
reasonably be expected to have a SPAC Material Adverse Effect.
Section 4.12 Compliance
with Applicable Law. SPAC is (and since its organization, incorporation or formation, as applicable, has been) in compliance with
all applicable Laws, except as would not have a SPAC Material Adverse Effect. SPAC has not received any written notice from any Governmental
Entity of a violation of any applicable Law by SPAC at any time since its formation, which violation would reasonably be expected to
have a material effect on the ability of SPAC to enter into, perform its obligations under this Agreement and consummate the Transactions.
Section 4.13 Business
Activities.
(a) Since
its IPO, SPAC has held all IPO proceeds in the Trust Account (other than any amounts permitted to be disbursed under the terms of the
Trust Agreement and as described in the SPAC Prospectus) for the purpose of being used in the conduct of business following its Business
Combination. Except as set forth in SPAC’s Governing Documents, there is no Contract binding upon SPAC or to which SPAC is a party
which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of it, any
acquisition of property by it or the conduct of business by it (including, in each case, following the Closing).
(b) SPAC
does not own or have a right to acquire, directly or indirectly, any interest or investment (whether equity or debt) in any corporation,
partnership, joint venture, business, trust or other entity. Except for this Agreement and the Transactions, SPAC has no interests, rights,
obligations or liabilities with respect to, or is party to, bound by or has its assets or property subject to, in each case whether directly
or indirectly, any Contract or transaction which is, or could reasonably be interpreted as constituting, a Business Combination.
(c) Except
for this Agreement and the agreements expressly contemplated hereby or as set forth in Section 4.13(c) of the SPAC
Disclosure Schedules, SPAC is and at no time has been, party to any Contract with any other Person that would require payments by SPAC
in excess of $25,000 in the aggregate with respect to any individual Contract or more than $50,000 in the aggregate when taken together
with all other Contracts (other than this Agreement and the agreements expressly contemplated hereby and Contracts set forth in Section 4.13(c) of
the SPAC Disclosure Schedules).
(d) There
is no liability, debt or obligation against SPAC, except for liabilities and obligations (i) reflected or reserved for on SPAC’s
consolidated balance sheet as of September 30, 2024 or disclosed in the notes thereto, (ii) that have arisen since the date
of SPAC’s consolidated balance sheet as of September 30, 2024 in the ordinary course of the operation of business of SPAC,
(iii) incurred in connection with or contemplated by this Agreement and/or the Transactions or (iv) that would not reasonably
be expected to be, individually or in the aggregate, material to SPAC.
(e) SPAC
is in possession of all approvals necessary to own, lease and operate the properties it purports to own, operate or lease and to carry
on its business as it is now being conducted, except where the failure to have such approvals would not, individually or in the aggregate,
reasonably be expected to be material to SPAC. Each approval held by SPAC is valid, binding and in full force and effect in all material
respects. SPAC: (a) is not in default or violation (and no event has occurred that, with notice or the lapse of time or both, would
constitute a default or violation) of any material term, condition or provision of any such approval; or (b) has not received any
notice from a Governmental Entity that has issued any such approval that it intends to cancel, terminate, modify or not renew any such
approval, except in the case of clauses (a) and (b) as would not individually or in the aggregate, reasonably be expected
to be material to SPAC.
Section 4.14 Internal
Controls; Listing; Financial Statements.
(a) Except
as is not required in reliance on exemptions from various reporting requirements by virtue of SPAC’s status as an “emerging
growth company” within the meaning of the Securities Act, as modified by the JOBS Act, or “smaller reporting company”
within the meaning of the Exchange Act, since its IPO, (i) SPAC has established and maintained a system of internal controls over
financial reporting (as defined in Rule 13a-15 and Rule 15d-15 under the Exchange Act) sufficient to provide reasonable assurance
regarding the reliability of SPAC’s financial reporting and the preparation of the SPAC Financial Statements for external purposes
in accordance with GAAP and (ii) SPAC has established and maintained disclosure controls and procedures (as defined in Rule 13a-15
and Rule 15d-15 under the Exchange Act) designed to ensure that material information relating to SPAC is made known to SPAC’s
principal executive officer and principal financial officer by others within SPAC. Such disclosure controls and procedures are effective
in timely alerting SPAC’s principal executive officer and principal financial officer to material information required to be included
in the SPAC Financial Statements included in SPAC’s periodic reports required under the Exchange Act.
(b) SPAC
has not taken any action prohibited by Section 402 of the Sarbanes-Oxley Act. There are no outstanding loans or other extensions
of credit made by SPAC to any executive officer (as defined in Rule 3b-7 under the Exchange Act) or director of SPAC.
(c) Since
its IPO, SPAC has complied in all material respects with all applicable listing and corporate governance rules and regulations of
Nasdaq. The issued and outstanding SPAC Units are registered pursuant to Section 12(b) of the Exchange Act and are listed for
trading on Nasdaq under the symbol “ISRLU”. The issued and outstanding SPAC Shares are registered pursuant to Section 12(b) of
the Exchange Act and are listed for trading on Nasdaq under the symbol “ISRL”. The issued and outstanding SPAC Warrants are
registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on Nasdaq under the symbol “ISRLW”.
There is no material Proceeding pending or, to the knowledge of SPAC, threatened against SPAC by Nasdaq or the SEC with respect to any
intention by such entity to deregister the SPAC Units, SPAC Shares or SPAC Warrants or prohibit or terminate the listing of the SPAC
Units, SPAC Shares or SPAC Warrants on Nasdaq. Neither SPAC nor any of its Affiliates has taken any action that is designed to terminate
the registration of the SPAC Units, SPAC Shares or SPAC Warrants under the Exchange Act except as contemplated by this Agreement. SPAC
has not received any notice from Nasdaq or the SEC regarding the revocation of such listing or otherwise regarding the delisting of the
SPAC Units, SPAC Shares or SPAC Warrants from Nasdaq or the SEC.
(d) SPAC
has established and maintains systems of internal accounting controls that are designed to provide, in all material respects, reasonable
assurance that (i) all transactions are executed in accordance with management’s authorization and (ii) all transactions
are recorded as necessary to permit preparation of proper and accurate financial statements in accordance with GAAP and to maintain accountability
for SPAC’s assets. SPAC maintains and, for all periods covered by the SPAC Financial Statements, has maintained books and records
of SPAC in the ordinary course of business that are accurate and complete and reflect the revenues, expenses, assets and liabilities
of SPAC in all material respects.
(e) Since
its incorporation, SPAC has not received any written complaint, allegation, assertion or claim that there is (i) a “significant
deficiency” in the internal controls over financial reporting of SPAC, (ii) a “material weakness” in the internal
controls over financial reporting of SPAC or (iii) Fraud, whether or not material, that involves management or other employees of
SPAC who have a significant role in the internal controls over financial reporting of SPAC.
Section 4.15 No
Undisclosed Liabilities. Except for the Liabilities (a) set forth in Section 4.15 of the SPAC Disclosure Schedules,
(b) incurred in connection with the negotiation, preparation or execution of this Agreement or any Ancillary Documents, the performance
of its covenants or agreements in this Agreement or any Ancillary Document or the consummation of the Transactions (it being understood
and agreed that the expected third-parties that are, as of the date hereof, entitled to fees, expenses or other payments in connection
with the matters described in this clause (a) shall be set forth on Section 4.15 of the SPAC Disclosure Schedules),
(c) that are either permitted pursuant to Section 5.9(e) or incurred in accordance with Section 5.9(e) (for
the avoidance of doubt, in each case, with the written consent of the Company), (f) set forth or disclosed in the SPAC Financial
Statements included in the SPAC SEC Reports, or (d) that have arisen since the date of the most recent balance sheet included in
the SPAC SEC Reports in the ordinary course of business, SPAC has no Liabilities of the type required to be set forth on a balance sheet
in accordance with GAAP.
Section 4.16 Tax
Matters.
(a) SPAC
has timely filed, or caused to be timely filed, all income and other material Tax Returns required to be filed by it (taking into account
all available extensions) and such Tax Returns are true, accurate, correct and complete in all material respects. SPAC has timely paid,
or caused to be paid, all material Taxes required to be paid, other than such Taxes for which adequate reserves have been established.
(b) SPAC
has complied in all material respects with all applicable Tax Laws relating to withholding and remittance of all material amounts of
Taxes, and all material amounts of Taxes required by applicable Tax Laws to be withheld by SPAC have been withheld and timely paid over
to the appropriate Governmental Entity.
(c) There
are no material claims, assessments, audits, examinations, investigations or other Proceedings pending, in progress or threatened in
writing against SPAC in respect of any material Taxes, and SPAC has not been notified in writing of any material proposed Tax claims
or assessments against it (other than claims or assessments that have been settled or resolved).
(d) There
are no material Liens with respect to any Taxes upon any of SPAC’s assets, other than Permitted Liens. SPAC does not have any outstanding
waivers or extensions of any applicable statute of limitations to assess any material amount of Taxes. There are no outstanding requests
by SPAC for any extension of time within which to file any Tax Return or within which to pay any Taxes shown to be due in any Tax Return
(other than an automatic extension of time not requiring the Consent of the applicable Governmental Entity).
(e) SPAC
does not have any Liability for the Taxes of another Person pursuant to Treasury Regulations Section 1.1502-6 (or any similar provision
of state, local or non-U.S. Tax Law), as a transferee or successor, by contract or otherwise (in each case, other than any customary
commercial agreement, contract or arrangement entered into in the ordinary course of business and the principal purpose of which does
not relate to Taxes). SPAC is not a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement
or similar agreement, arrangement or practice with respect to Taxes (including closing agreement or other agreement relating to Taxes
with any Governmental Entity) (other than any customary commercial agreement, contract or arrangement entered into in the ordinary course
of business and the principal purpose of which does not relate to Taxes).
(f) SPAC
has not engaged in or entered into a “listed transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2) or
any similar provision of state, local or non-U.S. Tax Law.
(g) SPAC
has not received a written notice from a Governmental Entity in a jurisdiction where it does not file Tax Returns that SPAC is or may
be subject to Tax by that jurisdiction.
(h) During
the two (2)-year period ending on the date of this Agreement, SPAC was not a distributing corporation or a controlled corporation in
a transaction purported or intended to be governed by Section 355 of the Code.
(i) SPAC
is a Tax resident only in its country of incorporation.
(j) SPAC
is not a “surrogate foreign corporation” or “expatriated entity” within the meaning of Section 7874 of the
Code or treated as a U.S. corporation for U.S. federal income tax purposes by reason of the application of Section 7874(b) of
the Code.
(k) SPAC
has not taken or agreed to take any action not contemplated by this Agreement and/or any Ancillary Documents that could reasonably be
expected to prevent the Mergers from qualifying for the Intended U.S. Tax Treatment. To the knowledge of SPAC, no facts or circumstances
exist that could reasonably be expected to prevent Mergers from qualifying for the Intended U.S. Tax Treatment.
Section 4.17 Absence
of Changes. During the period beginning on the date of SPAC’s incorporation and ending on the date of this Agreement, (a) no
SPAC Material Adverse Effect has occurred and SPAC has not taken any action that is or would reasonably be expected to have, individually
or in the aggregate, a SPAC Material Adverse Effect, (b) no revaluation by SPAC of any of its assets, including any sale of assets
of SPAC other than in the ordinary course of business has occurred, (c) SPAC has not taken any action that would require the Consent
of Company if taken during the period from the date of this Agreement until the Closing, and (d) except for actions expressly contemplated
by this Agreement or any Ancillary Document or taken in connection with the Transactions, SPAC has conducted its businesses in the ordinary
course in all material respects.
Section 4.18 Material
Contracts; No Defaults..
(a) SPAC
has filed as an exhibit to the SPAC SEC Reports all Contracts, including every “material contract” (as such term is defined
in Item 601(b)(10) of Regulation S-K of the SEC) (other than confidentiality and non-disclosure agreements and this Agreement) to
which, as of the date of this Agreement, SPAC is a party or by which any of its respective assets are bound.
(b) The SPAC
SEC Reports contain true, correct and complete copies of the applicable SPAC Financial Statements. The SPAC Financial Statements (i) fairly
present in all material respects the financial position of SPAC as at the respective dates thereof, and the results of its operations,
shareholders’ equity and cash flows for the respective periods then ended (subject, in the case of any unaudited interim financial
statements, to normal year-end audit adjustments (none of which is expected to be material) and the absence of footnotes), (ii) were
prepared in conformity with GAAP applied on a consistent basis (except, in the case of any audited financial statements, as may be indicated
in the notes thereto and subject, in the case of any unaudited financial statements, to normal year-end audit adjustments (none of which
is expected to be material) and the absence of footnotes), (iii) in the case of the audited SPAC Financial Statements, were audited
in accordance with the standards of the PCAOB and (iv) comply in all material respects with the applicable accounting requirements
and with the rules and regulations of the SEC, the Exchange Act and the Securities Act in effect as of the respective dates thereof
(including Regulation S-X or Regulation S-K, as applicable).
(c) Each
Contract of a type required to be filed as an exhibit to the SPAC SEC Reports, whether or not filed, was entered into at arm’s
length. Except for any Contract that has terminated or will terminate upon the expiration of the stated term thereof prior to the Closing
Date, with respect to any Contract of the type required to be filed as an exhibit to the SPAC SEC Reports, whether or not filed, (i) such
Contracts are in full force and effect and represent the legal, valid and binding obligations of SPAC, and, to the knowledge of SPAC,
the other parties thereto, and are enforceable by SPAC to the extent a party thereto in accordance with their terms, subject in all respects
to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other Laws relating to or affecting creditors’
rights generally and general equitable principles (whether considered in a Proceeding in equity or at law), (ii) SPAC and, to the
knowledge of SPAC, the counterparties thereto, are not in material breach of or material default (or would be in material breach, violation
or default but for the existence of a cure period) under any such Contract, (iii) SPAC has not received any written or oral claim
or notice of material breach of or material default under any such Contract, (iv) no event has occurred which, individually or together
with other events, would reasonably be expected to result in a material breach of or a material default under any such Contract by SPAC
or any other party thereto (in each case, with or without notice or lapse of time or both) and (v) SPAC has not received written
notice from any other party to any such Contract that such party intends to terminate or not renew any such Contract.
Section 4.19 Investment
Company Act. SPAC is not an “investment company” within the meaning of the Investment Company Act.
Section 4.20 Compliance
with International Trade & Anti-Corruption Laws.
(a) Since
SPAC’s incorporation, neither SPAC nor, to SPAC’s knowledge, any of its Representatives, or any other Persons acting for
or on behalf of any of the foregoing, is or has been, a Sanctioned Person.
(b) Since
SPAC’s incorporation, to SPAC’s knowledge, SPAC has been in compliance with applicable Sanctions and Trade Control Laws.
(c) Since
SPAC’s incorporation, none of SPAC, any of its respective directors or officers, nor, to SPAC’s knowledge, any of its Representatives,
or any other Persons acting for or on behalf of SPAC has, directly or indirectly, (i) made, offered, promised, authorized, paid
or received any unlawful bribes, kickbacks or other similar payments to or from any Person, (ii) made, offered, promised, authorized
or paid any unlawful contributions to a domestic or foreign political party or candidate or (iii) otherwise made, offered, promised,
authorized, paid or received any improper payment in violation of any Anti-Corruption Laws. SPAC has implemented and maintained policies
and procedures reasonably designed to ensure compliance with Anti-Corruption Laws, Sanctions and Export Control Laws.
(d) To
the knowledge of SPAC, there is no current investigation, allegation, request for information, or other inquiry by any Governmental Entity
regarding the actual or possible violation of the Anti-Corruption Laws or Trade Control Laws by SPAC, its directors or officers, nor,
to SPAC’s knowledge, any of its employees, agents or any other Persons acting for or on behalf of any of SPAC and since its date
of incorporation, SPAC has not received any written notice that there is any investigation, allegation, request for information, or other
inquiry by any Governmental Entity regarding an actual or possible violation of the Anti-Corruption Laws or Trade Control Laws.
(e) Employees;
Benefit Plans. Other than any former officers or as described in the SPAC SEC Reports, SPAC has never had any employees. Other
than reimbursement of any out-of-pocket expenses incurred by SPAC’s officers and directors in connection with activities on SPAC’s
behalf in an aggregate amount not in excess of the amount of cash held by SPAC outside of the Trust Account, SPAC has no unsatisfied
liability with respect to any employee. SPAC does not currently and has never maintained or had any liability under any benefit
plan, and neither the execution and delivery of this Agreement, the Ancillary Documents, or the consummation of the Transactions will:
(a) result in any payment (including severance, unemployment compensation, golden parachute, bonus or otherwise) becoming due to
any director, officer or employee of SPAC; or (b) result in the acceleration of the time of payment or vesting of any such benefits.
Section 4.21 Investigation;
No Other Representations.
(a) SPAC,
on its own behalf and on behalf of its Representatives, acknowledges, represents, warrants and agrees that (i) it has conducted
its own independent review and analysis of, and, based thereon, has formed an independent judgment concerning, the business, assets,
condition, operations and prospects, of the Company and (ii) it has been furnished with or given access to such documents and information
about the Company and its businesses and operations as it and its Representatives have deemed necessary to enable it to make an informed
decision with respect to the execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of
the Transactions.
(b) In
entering into this Agreement and the Ancillary Documents to which it is or will be a party, SPAC has relied solely on its own investigation
and analysis and the representations and warranties expressly set forth in Article III
and in the Ancillary Documents to which it is or will be a party and no other representations or warranties of the Company,
any Company Non-Party Affiliate or any other Person, either express or implied, and SPAC, on its own behalf and on behalf of its Representatives,
acknowledges, represents, warrants and agrees that, except for the representations and warranties expressly set forth in Article III,
in the Ancillary Documents to which it is or will be a party, and any certificates delivered by the Company or any officer thereof, none
of the Company, any Company Non-Party Affiliate or any other Person makes or has made any representation or warranty, either express
or implied, in connection with or related to this Agreement, the Ancillary Documents or the Transactions.
Section 4.22 EXCLUSIVITY
OF REPRESENTATIONS AND WARRANTIES. NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO THE COMPANY OR ANY OF ITS RESPECTIVE REPRESENTATIVES
OF ANY DOCUMENTATION OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), EXCEPT AS OTHERWISE EXPRESSLY
SET FORTH IN THIS Article IV, THE ANCILLARY DOCUMENTS, AND ANY CERTIFICATES
DELIVERED BY SPAC OR ANY OFFICER THEREOF, NEITHER SPAC NOR ANY SPAC NON-PARTY AFFILIATE OR ANY OTHER PERSON MAKES, AND SPAC EXPRESSLY
DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, IN CONNECTION WITH THIS AGREEMENT, THE ANCILLARY
DOCUMENTS, THE CERTIFICATES DELIVERED BY SPAC OR ANY OFFICER THEREOF. OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, INCLUDING
AS TO THE MATERIALS RELATING TO THE BUSINESS AND AFFAIRS OR HOLDINGS OF SPAC THAT HAVE BEEN MADE AVAILABLE TO THE COMPANY OR ANY OF ITS
RESPECTIVE REPRESENTATIVES OR IN ANY PRESENTATION OF THE BUSINESS AND AFFAIRS OF SPAC BY OR ON BEHALF OF THE MANAGEMENT OF SPAC OR OTHERS
IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, BY THE ANCILLARY DOCUMENTS, OR THE CERTIFICATES DELIVERED BY SPAC OR ANY OFFICER
THEREOF, AND NO STATEMENT CONTAINED IN ANY OF SUCH MATERIALS OR MADE IN ANY SUCH PRESENTATION SHALL BE DEEMED A REPRESENTATION OR WARRANTY
HEREUNDER OR OTHERWISE OR DEEMED TO BE RELIED UPON BY THE COMPANY, MERGER SUB, OR ANY COMPANY NON-PARTY AFFILIATE IN EXECUTING, DELIVERING
AND PERFORMING THIS AGREEMENT, THE ANCILLARY DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EXCEPT FOR THE REPRESENTATIONS
AND WARRANTIES EXPRESSLY SET FORTH IN THIS Article IV. THE ANCILLARY DOCUMENTS,
OR ANY CERTIFICATE DELIVERED BY SPAC OR ANY OFFICER THEREOF, IT IS UNDERSTOOD THAT ANY COST ESTIMATES, PROJECTIONS OR OTHER PREDICTIONS,
ANY DATA, ANY FINANCIAL INFORMATION, ANY SPAC SEC REPORTS, OR ANY MEMORANDA OR OFFERING MATERIALS OR PRESENTATIONS, INCLUDING, BUT
NOT LIMITED TO, ANY OFFERING MEMORANDUM OR SIMILAR MATERIALS MADE AVAILABLE BY OR ON BEHALF OF SPAC ARE NOT AND SHALL NOT BE DEEMED TO
BE OR TO INCLUDE REPRESENTATIONS OR WARRANTIES OF SPAC, ANY SPAC NON-PARTY AFFILIATE OR ANY OTHER PERSON, AND ARE NOT AND SHALL NOT BE
DEEMED TO BE RELIED UPON BY THE COMPANY OR ANY COMPANY NON-PARTY AFFILIATE IN EXECUTING, DELIVERING OR PERFORMING THIS AGREEMENT, THE
ANCILLARY DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. NOTWITHSTANDING THE FOREGOING, THE PROVISIONS OF THIS Section 4.22
SHALL NOT EXCUSE ANY FRAUD OR WILLFUL MISCONDUCT OF SPAC.
Article V.
COVENANTS
Section 5.1 Conduct
of Business of the Company.
(a) From
and after the date of this Agreement until the earlier of the Acquisition Merger Effective Time or the termination of this Agreement
in accordance with its terms, the Company shall, and the Company shall cause its Subsidiaries to, except as expressly contemplated by
this Agreement or any Ancillary Document, as required by applicable Law or Governmental Entity, as set forth on Section 5.1(a) of
the Company Disclosure Schedules, or as consented to in writing by SPAC (such consent not to be unreasonably withheld, conditioned or
delayed), use its commercially reasonable efforts to (i) conduct and operate the business of the Company in the ordinary course
of business in all material respects, consistent with past practice and in material compliance with all applicable Laws, and (ii) maintain
and preserve in all material respects the business organization, assets, properties and material business relations of the Company.
(b) Without
limiting the generality of the foregoing, from and after the date of this Agreement until the earlier of the Acquisition Merger Effective
Time or the termination of this Agreement in accordance with its terms, the Company shall, and the Company shall cause its Subsidiaries
to, except (r) as expressly contemplated by this Agreement or any Ancillary Document, (s) as required by applicable Law, (t) as
set forth on Section 5.1(a) of the Company Disclosure Schedules, (u) as consented to in writing
by SPAC (such consent not to be unreasonably withheld, conditioned or delayed) or (v) as contemplated, permitted or pursuant to
any Company Permitted Interim Financing, not do any of the following:
(i) except
for the Share Split, split, reserve split, reclassify, recapitalize, repurchase, redeem or otherwise acquire, offer to repurchase, redeem
or otherwise acquire, any outstanding Equity Securities of the Company, other than (x) the issuance of securities upon exercise
of Company Options or the issuance of securities pursuant to any Company Permitted Interim Financing and (y) the issuance of Company
Options under the Company Equity Plan;
(ii) declare,
set aside, make or pay a dividend on, or make any other distribution or payment (whether in cash, stock or property) in respect of, any
Equity Securities of the Company;
(iii) (A) merge,
consolidate, combine or amalgamate the Company with any Person or (B) purchase or otherwise acquire (whether by merging or consolidating
with, purchasing any Equity Security in or a substantial portion of the assets of, or by any other manner) any corporation, partnership,
association or other business entity or organization or division thereof;
(iv) adopt
any amendments, supplements, restatements or modifications to the Company’s Governing Documents;
(v) transfer,
issue, sell, grant, pledge, or otherwise directly or indirectly dispose of, or subject to a Lien, other than in the ordinary course,
(A) any Equity Securities of the Company or (B) any options, restricted stock, warrants, rights of conversion or other rights,
agreements, arrangements or commitments obligating the Company to issue, deliver or sell any Equity Securities of the Company, other
than (x) the issuance of shares of capital stock of the Company upon the exercise of any Company Equity Award outstanding or promised
on the date of this Agreement in accordance with the terms of the applicable Company Equity Plan and the underlying grant, award or similar
agreement, (y) the issuance of Company Equity Awards in the ordinary course of business or (z) the issuance of Equity Securities
pursuant to any Company Permitted Interim Financing;
(vi) incur,
create or assume any Indebtedness other than (A) ordinary course trade payables, (B) between the Company and any of its wholly
owned Subsidiaries or between any of such wholly owned Subsidiaries or (C) in connection with borrowings, extensions of credit and
other financial accommodations under the Company’s and Subsidiaries’ existing credit facilities, notes and other existing
Indebtedness and, in each case, any refinancing thereof; provided, however, that the Company may incur Indebtedness from
(i) a commercial bank, (ii) a third-party institutional lender or (iii) any other third-party lender or debt provider
where such Indebtedness is not convertible into Equity Securities of the Company, in each case, on arms’-length or better terms
for the Company and on terms that do not materially and adversely affect the interests of SPAC, Sponsor, NewPubco (after the Closing
Date) or the likelihood of the Closing, including the ability to meet the Minimum Cash Condition;
(vii) make
any loans, advances or capital contributions to, or guarantees for the benefit of, or any investments in, any Person, other than (A) intercompany
loans or capital contributions between the Company and any of its wholly owned Subsidiaries, (B) the reimbursement of expenses of
employees in the ordinary course of business, (C) prepayments, loans and deposits paid to customers or suppliers of the Company
in the ordinary course of business, (D) trade credit extended to customers of the Company in the ordinary course of business and
(E) advances to wholly owned Subsidiaries of the Company;
(viii) authorize,
recommend, propose or announce an intention to adopt, or otherwise effect, a plan of complete or partial liquidation, dissolution, restructuring,
recapitalization, reorganization or similar transaction involving the Company;
(ix) enter
into any settlement, conciliation or similar Contract outside of the ordinary course of business the performance of which would involve
the payment by the Company in excess of $2,000,000, in the aggregate, or that imposes, or by its terms will impose at any point in the
future, any material, non-monetary obligations on the Company (or SPAC or any of its Affiliates after the Closing);
(x) change
the Company’s accounting principles or methods of accounting in any material respect, other than changes that are made in accordance
with PCAOB standards or GAAP;
(xi) except
as set forth on Section 3.18 of the Company Disclosure Schedules, enter into any Contract with any broker, finder, investment
banker or other Person under which such Person is or will be entitled to any brokerage fee, finders’ fee or other commission in
connection with the transactions contemplated by this Agreement;
(xii) (A) change
any material method of Tax accounting, (B) make (inconsistent with past practice), change or rescind any material election relating
to Taxes, (C) settle or compromise any audit, assessment, claim or other Proceeding in respect of material Taxes other than such
settlement or compromise with the ITA, (D) enter into any closing agreement in respect of material Taxes or enter into any Tax sharing
or similar Tax agreement (which this (D) does not include any customary commercial agreement entered into in the ordinary course
of business and the principal purpose of which does not relate to Taxes), (E) surrender or allow to expire any right to claim a
refund of material Taxes or (F) Consent to any extension or waiver of the statute of limitations period applicable to any claim
or assessment in respect of material Taxes; or
(xiii) enter
into any Contract to take, or cause to be taken, any of the foregoing actions set forth in clauses (i) through (vii) other
than (A) any agreements in respect of Company Permitted Interim Financing, and (B) the entry into additional Subscription Agreements
or PIPE Subscription Agreements pursuant to which Company agrees to issue and sell, on the Closing Date, Company Shares as additional
PIPE Financing.
(c) Notwithstanding
anything in this Section 5.1 or this Agreement to the contrary, nothing set forth in this Agreement shall give SPAC, directly
or indirectly, the right to control or direct the operations of the Company, NewPubco, Merger Sub 1 or Merger Sub 2 prior to the Closing.
Section 5.2 Efforts
to Consummate; Transaction Litigation; Incorporation of NewPubco, Merger Sub 1 and Merger Sub 2.
(a) Subject
to the terms and conditions herein provided, each of the Parties shall (and shall cause their Affiliates to) use reasonable best efforts
to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary or advisable to consummate
and make effective as promptly as reasonably practicable the Transactions contemplated by this Agreement (including the satisfaction,
but not waiver, of the closing conditions set forth in ARTICLE VI) and, in the case of any Ancillary Document to which such
Party will be a party after the date of this Agreement, to execute and deliver such Ancillary Document when required pursuant to this
Agreement. Without limiting the generality of the foregoing, each of the Parties shall (and shall cause their Affiliates to) use reasonable
best efforts to obtain, file with or deliver to, as applicable, as promptly as reasonably practicable any Consents of any Governmental
Entities or other Persons necessary, proper or advisable to consummate the Transactions. Each Party shall (i) make all required
filings, notifications and applications, if any, pursuant to the HSR Act and any other applicable antitrust, competition, merger control
and foreign investment Laws with respect to the Transactions as promptly as reasonably practicable (and, with respect to the HSR Act,
no later than ten (10) Business Days) following the date of this Agreement and (ii) respond as promptly as reasonably practicable
to any requests by any Governmental Entity for additional information and documentary material that may be requested pursuant to the
HSR Act or any other Law. SPAC shall promptly inform the Company of any communication between SPAC or any of its Affiliates, on the one
hand, and any Governmental Entity, on the other hand, and the Company shall promptly inform SPAC of any communication between the Company,
on the one hand, and any Governmental Entity, on the other hand, in either case, regarding any of the Transactions. Without limiting
the foregoing, each Party and its respective Affiliates shall not extend any waiting period, review period or comparable period under
the HSR Act or any other applicable antitrust, competition, merger control or foreign investment Law, or enter into any agreement with
any Governmental Entity to delay or not to consummate the Transactions, except with the prior written Consent of SPAC and the Company,
as applicable. Nothing in this Section 5.2 obligates any Party or any of its Affiliates to agree to (A) sell, license
or otherwise dispose of, or hold separate and agree to sell, license or otherwise dispose of, any entities, assets or facilities of any
the Company or any entity, facility or asset of such Party or any of its Affiliates, (B) terminate, amend or assign existing relationships
and contractual rights or obligations, (C) amend, assign or terminate existing licenses or other agreements, or (D) enter into
new licenses or other agreements. No Party shall agree to any of the foregoing measures with respect to any other Party or any of its
Affiliates, except with SPAC’s and the Company’s prior written consent.
(b) From
and after the date of this Agreement until the earlier of the Closing or termination of this Agreement in accordance with its terms,
SPAC, on the one hand, and the Company and its Affiliates, on the other hand, shall give counsel for the Company (in the case of SPAC)
or counsel for SPAC (in the case of the Company), a reasonable opportunity to review in advance, and consider in good faith the views
of the other in connection with, any proposed written communication to any Governmental Entity relating to the Transactions. Each of
the Parties and its Affiliates agrees not to participate in any substantive meeting or discussion, either in person or by telephone with
any Governmental Entity in connection with the transactions contemplated by this Agreement unless it consults with, in the case of the
Company, SPAC, or, in the case of SPAC, the Company in advance and, to the extent not prohibited by such Governmental Entity, gives,
in the case of the Company, SPAC, or, in the case of SPAC, the Company, the opportunity to attend and participate in such meeting or
discussion. If any Party receives a request for additional information or documentary material from any Governmental Entity with respect
to the Transactions, then such Party will use its reasonable best efforts to make, or cause to be made, as expeditiously as possible
and after consultation with the other Parties, an appropriate response to such request.
(c) From
and after the date of this Agreement until the earlier of the Closing or termination of this Agreement in accordance with its terms,
SPAC, on the one hand, and the Company, on the other hand, shall each notify the other in writing promptly after learning of any shareholder
demands or other shareholder Proceedings (including derivative claims) relating to this Agreement, any Ancillary Document or any matters
relating thereto (collectively, the “Transaction Litigation”) commenced against, in the case of SPAC, SPAC or any
of its Representatives (in their capacity as a Representative of SPAC) or, in the case of the Company, NewPubco, Merger Sub 1, Merger
Sub 2, the Company, or any of their respective Representatives (in their capacity as a Representative of the Company, NewPubco or Merger
Sub 1 or Merger Sub 2). SPAC and the Company shall each (i) keep the other reasonably informed regarding any Transaction Litigation,
(ii) give the other the opportunity to, at its own cost and expense, participate in the defense, settlement and compromise of any
such Transaction Litigation and reasonably cooperate with the other in connection with the defense, settlement and compromise of any
such Transaction Litigation, (iii) consider in good faith the other’s advice with respect to any such Transaction Litigation
and (iv) reasonably cooperate with each other. Notwithstanding the foregoing, the Company shall, subject to and without limiting
the covenants and agreements, and the rights of SPAC, set forth in the immediately preceding sentence, control the negotiation, defense
and settlement of any such Transaction Litigation.
(d) Promptly
following the date hereof, the Company shall cause (i) NewPubco to be formed under the laws of the State of Israel, and (ii) for
NewPubco to form Merger Sub 1, as an Israeli limited liability company, Merger Sub 2, as a Cayman Islands exempted company, both wholly
owned, direct Subsidiaries of NewPubco.
(e) Promptly
after the Company receives the certificate of incorporation (or equivalent document) following the incorporation of NewPubco, Merger
Sub 1 and Merger Sub 2, the Company shall cause each of NewPubco, Merger Sub 1 and Merger Sub 2 to execute and deliver to SPAC a joinder
agreement in form and substance to be mutually agreed by SPAC and the Company, pursuant to which, among other things, each NewPubco,
Merger Sub 1 and Merger Sub 2 shall (i) become a party to this Agreement as of the date thereof and (ii) agree to be bound
by the terms, covenants and other provisions of this Agreement applicable to it as a Company Party and shall assume all rights and obligations
of a Company Party hereunder, with the same force and effect as if originally named herein (a “Joinder Agreement”),
and (iii) NewPubco in its capacity as sole shareholder of Merger Sub 1 and Merger Sub 2, shall deliver its adoption and approval
of this Agreement and the Mergers.
Section 5.3 Confidentiality
and Access to Information.
(a) The
Parties hereby acknowledge and agree that the information being provided in connection with this Agreement and the consummation of the
Transactions is subject to the terms of the Confidentiality Agreement, the terms of which are incorporated herein by reference. Notwithstanding
the foregoing or anything to the contrary in this Agreement, in the event that this Section 5.3(a) or the Confidentiality
Agreement conflicts with any other covenant or agreement contained herein or any Ancillary Document that contemplates the disclosure,
use or provision of information or otherwise, then such other covenant or agreement contained herein or therein shall govern and control
to the extent of such conflict.
(b) From
and after the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its
terms, upon reasonable advance written notice, the Company shall provide, or cause to be provided, to SPAC and its Representatives during
normal business hours reasonable access to the directors, officers, employee, consultants, advisors, books and records of the Company,
including financial information of the Company used in the preparation of the Financial Statements and in the unaudited projected financial
information to be included in the Registration Statement (in a manner so as to not materially interfere with the normal business operations
of the Company). Notwithstanding the foregoing, none of the Company shall be required to provide to SPAC or any of its Representatives
any information (i) if and to the extent doing so would (A) violate any Law to which the Company is subject, (B) result
in the disclosure of any trade secrets of third-parties in breach of any Contract with such third-party, (C) violate any legally
binding obligation of the Company with respect to confidentiality, non-disclosure or privacy or (D) jeopardize protections afforded
to the Company under the attorney-client privilege or the attorney work product doctrine (provided that, in case of each of clauses
(A) through (D), the Company shall use commercially reasonable efforts to (x) provide such access as can be provided
(or otherwise convey such information regarding the applicable matter as can be conveyed) without violating such privilege, doctrine,
Contract, obligation or Law and (y) provide such information in a manner without violating such privilege, doctrine, Contract, obligation
or Law), or (ii) if the Company, NewPubco, Merger Sub 1 or Merger Sub 2, on the one hand, and SPAC, any SPAC Non-Party Affiliate
or any of their respective Representatives, on the other hand, are adverse parties in a litigation or other Proceeding and such information
is reasonably pertinent thereto; provided that the Company shall, in the case of clause (i) or (ii), provide
prompt written notice of the withholding of access or information on any such basis.
(c) From
and after the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its
terms, upon reasonable advance written notice, SPAC shall provide, or cause to be provided, to the Company and its Representatives during
normal business hours reasonable access to the directors, officers, consultants, advisors, books and records of SPAC (in a manner so
as to not interfere with the normal business operations of SPAC). Notwithstanding the foregoing, SPAC shall not be required to provide,
or cause to be provided to, the Company or any of its Representatives any information (i) if and to the extent doing so would (A) violate
any Law to which SPAC is subject, (B) result in the disclosure of any trade secrets of third-parties in breach of any Contract with
such third-party, (C) violate any legally binding obligation of SPAC with respect to confidentiality, non-disclosure or privacy
or (D) jeopardize protections afforded to SPAC under the attorney-client privilege or the attorney work product doctrine (provided
that, in case of each of clauses (A) through (D), SPAC shall use commercially reasonable efforts to (x) provide
such access as can be provided (or otherwise convey such information regarding the applicable matter as can be conveyed) without violating
such privilege, doctrine, Contract, obligation or Law and (y) provide such information in a manner without violating such privilege,
doctrine, Contract, obligation or Law), or (ii) if SPAC, on the one hand, and the Company, any Company Non-Party Affiliate, NewPubco,
Merger Sub 1, Merger Sub 2 or any of their respective Representatives, on the other hand, are adverse parties in a litigation or other
Proceedings and such information is reasonably pertinent thereto; provided that SPAC shall, in the case of clause (i) or
(ii), provide prompt written notice of the withholding of access or information on any such basis.
Section 5.4 Public
Announcements.
(a) None
of the Parties or any of their respective Representatives shall issue any press releases or make any public announcements with respect
to this Agreement or the transactions contemplated by this Agreement without the prior written consent of, prior to the Closing, the
Company and SPAC or, after the Closing, the Company; provided, however, that each Party may make any such announcement
or other communication (i) if, subject to subsection (iv) below, such announcement or other communication is required by applicable
Law (including the requirements of Nasdaq), in which case (A) prior to the Closing, the disclosing Party and its Representatives
shall use commercially reasonable efforts to consult with the Company, if the disclosing party is SPAC, or SPAC, if the disclosing party
is the Company, to review such announcement or communication and the opportunity to comment thereon and the disclosing party shall consider
such comments in good faith and in recognition of the obligations of the Parties to coordinate their disclosure while remaining in compliance
with their respective disclosure requirements, or (B) after the Closing, the disclosing Party and its Representatives shall use
commercially reasonable efforts to consult with the Company and the disclosing Party shall consider such comments in good faith, (ii) to
the extent such announcements or other communications contain only information previously disclosed in a public statement, press release
or other communication previously approved in accordance with this Section 5.4, (iii) subject to the terms of Section 5.2,
to Governmental Entities in connection with any Consents required to be made under this Agreement, the Ancillary Documents or in connection
with the Transactions and (iv) if, with respect to the Company, such announcement or other communication is required by applicable
Israeli Law, the Company shall have no obligation to consult with SPAC with respect to such announcement or communication and SPAC shall
have no right to review and comment on such announcement or communication.
(b) The
initial press release concerning this Agreement and the transactions contemplated by this Agreement shall be a joint press release in
the form agreed by the Company and SPAC prior to the execution of this Agreement and such initial press release (the “Signing
Press Release”) shall be released as promptly as reasonably practicable after the execution of this Agreement on the day thereof.
Promptly after the execution of this Agreement (and in any event within four (4) Business Days hereof), SPAC shall file a current
report on Form 8-K (the “Signing Filing”) with the Signing Press Release and a description of this Agreement
as required by, and in compliance with, the Securities Laws, which the Company shall have the opportunity to review and comment upon
prior to filing and SPAC shall consider such comments in good faith. The Company, on the one hand, and SPAC, on the other hand, shall
mutually agree upon (such agreement not to be unreasonably withheld, conditioned or delayed by either the Company or SPAC, as applicable)
a press release announcing the consummation of the transactions contemplated by this Agreement (the “Closing Press Release”)
prior to the Closing, and, on the Closing Date, the Parties shall cause the Closing Press Release to be released. Promptly after the
Closing (but in any event within four (4) Business Days after the Closing), the Company shall file a current report on Form 8-K
(the “Closing Filing”) with the Closing Press Release and a description of the Closing as required by Securities Laws,
which Closing Filing shall be mutually agreed upon by the Company and SPAC prior to the Closing (such agreement not to be unreasonably
withheld, conditioned or delayed by either the Company or SPAC, as applicable). In connection with the preparation of each of the Signing
Press Release, the Signing Filing, the Closing Press Release and the Closing Filing, each Party shall, upon written request by any other
Party, furnish such other Party with all information concerning itself, its directors, officers and equity holders, and such other matters
as may be reasonably necessary for such press release or filing.
(c) The
Parties agree that the Company and SPAC shall work together in good faith and without undue delay to develop a public investor presentation
to be shared with PIPE Investors or other potential investors in NewPubco.
Section 5.5 Tax
Matters; Tax Rulings.
(a) Notwithstanding
anything to the contrary herein, each Party shall pay its own transfer, documentary, sales, use, real property transfer, stamp, registration
and other similar Taxes, fees and costs incurred in connection with the Transactions.
(b) Each
Party shall, and shall cause its Affiliates to, use commercially reasonable efforts to cause the transactions contemplated herein to
qualify for, and agree not to, and not to permit or cause any Affiliate, or any Subsidiary to, take any actions or cause any action to
be taken that could reasonably be expected to prevent, impair or impede the Intended U.S. Tax Treatment. From and after the Closing,
neither NewPubco nor its Affiliates will take any action, make any Tax election or engage in any transaction that would result in the
liquidation of SPAC or the Company for U.S. federal income tax purposes within two (2) calendar years following the Closing Date.
The Parties shall, and shall cause their respective Affiliates to, file all Tax Returns consistent with, and not take any position for
Tax purposes (whether in Tax Proceeding or otherwise) inconsistent with, the Intended U.S. Tax Treatment. The Parties further acknowledge
that each of the Mergers may also independently qualify as a “reorganization” within the meaning of Section 368(a) of
the Code, and for the avoidance of doubt, the preceding sentence shall not be interpreted to prevent a Person from reporting either the
Mergers as a “reorganization” within the meaning of Section 368(a) of the Code (other than Section 368(a)(1)(F) of
the Code). To the extent applicable, the Parties hereby adopt this Agreement as a “plan of reorganization” within the meaning
of Treasury Regulations Sections 1.368-2(g) and 1.368-3(a).
(c) If,
in connection with the preparation and filing of the Registration Statement / Proxy Statement, the SEC requires any opinion to be provided
in respect of the Tax consequences of the Transactions: (i) to the extent such opinion is with respect to the Intended U.S. Tax
Treatment or other Tax consequences of the Transactions to equityholders of the Company, the Company shall use commercially reasonable
efforts to cause such opinion (as so required by the SEC) to be provided, subject to customary assumptions and limitations, by its Tax
advisors or counsel, and (ii) to the extent such opinion is with respect to the Intended U.S. Tax Treatment or other Tax consequences
of the Transactions to equityholders of SPAC and not otherwise not covered in (i), SPAC shall use commercially reasonable efforts to
cause such opinion (as so required by the SEC) to be provided, subject to customary assumptions and limitations, by its Tax advisors
or counsel. Each of the Parties shall use commercially reasonable efforts to, and to cause its Affiliates to, cooperate with one another
and their respective Tax advisors or counsel in connection with the issuance of an opinion described under this Section 5.5(c),
including, upon the reasonable request of any Tax advisors or counsel, using commercially reasonable efforts to deliver to such Tax advisors
or counsel certificates (dated as of the necessary date and signed by an officer of each such Party or its Affiliates) containing such
customary representations as are reasonably necessary or appropriate for such Tax advisors or counsel to render such opinion. Notwithstanding
anything to the contrary in this Agreement, none of the Company, SPAC or their respective Tax advisors are obligated to provide any opinion
that the Transactions contemplated by this Agreement qualify for the Intended U.S. Tax Treatment, other than a customary opinion regarding
the material accuracy of any disclosure regarding U.S. federal income tax considerations of the Transactions included in the Registration
Statement / Proxy Statement as may be required to satisfy applicable rules and regulations promulgated by the SEC, nor will the
provision of any Tax opinion be a condition precedent to the Transactions.
(d) Each
of the Parties shall, and shall cause their respective Affiliates to, cooperate fully, as and to the extent reasonably requested by another
Party, in connection with the filing of relevant Tax Returns and any Tax audit or Proceeding or to determine the Tax treatment of any
aspect of the Transactions. Such cooperation shall include the retention and (upon the other Party’s request) the provision (with
the right to make copies) of records and information reasonably relevant to any Tax Proceeding or audit, making employees reasonably
available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder (to the
extent such information or explanation is not publicly or otherwise reasonably available) NewPubco shall use commercially reasonable
efforts to make available to the former SPAC Shareholders information reasonably necessary to compute any income of any such former SPAC
Shareholder (or its direct or indirect owners) arising, if applicable, as a result of SPAC’s status as a “passive foreign
investment company” within the meaning of Section 1297(a) of the Code or a “controlled foreign corporation”
within the meaning of Section 957(a) of the Code for any Tax period that includes the Closing Date, including following a written
request by any such former SPAC Shareholder timely providing (i) a PFIC annual information statement meeting the requirements of
Treasury Regulations Section 1.1295-1(g)(1) to enable such former SPAC Shareholder (or its direct or indirect owners) to make
a “qualifying electing fund” election under Section 1295 of the Code for any such Tax period, and (ii) information
to enable any applicable former SPAC Shareholder (or its direct or indirect owners) to report its allocable share of “subpart F”
income under Section 951 of the Code for any such Tax period.
(e) Tax
Rulings:
(i) 102
Awards Tax Ruling. As soon as reasonably practicable after the execution of this Agreement, the Company shall instruct its legal
counsel, advisors and accountants, in coordination with SPAC, to prepare and file with the ITA an application in form and substance reasonably
acceptable to SPAC for a ruling, which may be included as part of the Company Israeli Tax Ruling, that will provide, among other things,
that the exchange of Company 102 Options for NewPubco options and the exchange of Company 102 Shares for NewPubco Ordinary Shares deposited
with the 102 Trustee shall not constitute a taxable event and Tax continuity shall apply to the stock options or NewPubco Ordinary Shares
issued in exchange for such Company 102 Options or Company 102 Shares provided that they are deposited with the 102 Trustee (which ruling
may be subject to customary conditions regularly associated with such a ruling) (the “102 Awards Tax Ruling”). Each
of the Company and SPAC shall cause their respective legal counsel, advisors and accountants to coordinate all activities, and to cooperate
with each other, with respect to the preparation and filing of such application and in the preparation of any written or oral submissions
that may be necessary, proper or advisable to obtain the 102 Awards Tax Ruling. Subject to the terms and conditions hereof, the Company
shall use commercially reasonable efforts to promptly take, or cause to be taken, all action and to do, or cause to be done, all things
necessary, proper or advisable under applicable Laws to obtain the 102 Awards Tax Ruling as promptly as practicable. The final text of
the 102 Awards Tax Ruling, including all appendices thereof, shall in all circumstances be subject to the prior written confirmation
of SPAC or its counsel, which Consent shall not unreasonably be withheld, conditioned or delayed.
(ii) Company
Israeli Tax Ruling. As soon as reasonably practicable after the execution of this Agreement, the Company shall instruct its legal
counsel, advisors and accountants, in coordination with SPAC, to prepare and file with the ITA an application for a ruling or rulings
(or interim ruling or rulings, if applicable) providing for the deferral of any applicable Israeli Tax, if applied, with respect to such
NewPubco equity consideration that each Company Shareholder, and holder of Company Equity Awards is entitled to receive pursuant to this
Agreement until the date of the sale, transfer or other conveyance for cash of such NewPubco share consideration in accordance with the
provisions of Section 103K of the Ordinance (such ruling, rulings, interim ruling or interim rulings, collectively, the “Company
Israeli Tax Ruling”). The Company shall cooperate with SPAC, and their Israeli counsel and Tax advisors with respect to the
preparation and filing of such application and in the preparation of any written or oral submissions that may be necessary, proper or
advisable to obtain the Company Israeli Tax Ruling; provided that any costs associated with the application for the Company Israeli Tax
Ruling shall be paid by the Company prior to the Closing. For the avoidance of doubt, the Company shall not make any application to the
ITA with respect to any matter relating to the Company Israeli Tax Ruling without first consulting with SPAC and its legal counsel and
Tax advisors granting SPAC and its legal counsel and tax advisors the opportunity to review, comment and approve the draft application
for such ruling, such approval not to be unreasonably withheld, conditioned or delayed, and the Company and any of its Representatives
shall enable SPAC and its legal counsel and tax advisors to participate in all discussions and meetings with the ITA relating thereto.
The final text of the Company Israeli Interim Tax Ruling (if applicable) or the Company Israeli Tax Ruling shall be subject to the prior
written confirmation of both SPAC and the Company and their respective legal counsel and Tax advisors.
(iii) SPAC
Israeli Tax Ruling. As soon as reasonably practicable after the execution of this Agreement, SPAC shall instruct its legal counsel,
advisors and accountants, in coordination with the Company, to prepare and file with the ITA an application for a ruling or rulings (or
interim ruling or rulings, if applicable) providing for the deferral of any applicable Israeli Tax, if applied, with respect to such
NewPubco equity consideration that each SPAC Shareholder and holder of SPAC Warrants is entitled to receive pursuant to this Agreement
until the date of the sale, transfer or other conveyance for cash of such NewPubco share consideration (such ruling, rulings, interim
ruling or interim rulings, collectively, the “SPAC Israeli Tax Ruling” and together with the Company Israeli Tax Ruling,
the “Israeli Tax Rulings”). SPAC shall cooperate with the Company, and their Israeli counsel and Tax advisors with
respect to the preparation and filing of such application and in the preparation of any written or oral submissions that may be necessary,
proper or advisable to obtain the SPAC Israeli Tax Ruling; provided that any costs associated with the application for the SPAC Israeli
Tax Ruling shall be paid by SPAC prior to the Closing; provided, further, that the SPAC Israeli Interim Tax Ruling or the SPAC
Israeli Tax Ruling shall not impose any restrictions or obligations the Company or any of its Affiliates without the prior written consent
of the Company, respectively. For the avoidance of doubt, SPAC shall not make any application to the ITA with respect to any matter relating
to the SPAC Israeli Tax Ruling without first consulting with the Company and its legal counsel and Tax advisors granting the Company
and its legal counsel and tax advisors the opportunity to review, comment and approve the draft application for such ruling, such approval
not to be unreasonably withheld, conditioned or delayed and SPAC and any of its Representatives shall enable the Company and its legal
counsel and tax advisors to participate in all discussions and meetings with the ITA relating thereto. The final text of the SPAC Israeli
Interim Tax Ruling (if applicable) or the SPAC Israeli Tax Ruling shall be subject to the prior written confirmation of both SPAC and
the Company and their respective legal counsel and Tax advisors.
Section 5.6 No
Solicitation; Company Board Recommendation; SPAC Board Recommendation.
(a) From
the date of this Agreement until the earlier to occur of the termination of this Agreement pursuant to ARTICLE VII and the
Acquisition Merger Effective Time, except as expressly permitted by this Section 5.6, the Company shall, and shall cause
its Subsidiaries and its and their respective officers and directors to, and shall instruct and use its commercially reasonable efforts
to cause its and their respective other Representatives to, immediately cease and cause to be terminated, and shall not authorize or
knowingly permit any of its Representatives to continue, any and all existing discussions or negotiations with any Third Party conducted
prior to the date hereof by the Company, any of its Subsidiaries or any of their respective Representatives that constitute or could
reasonably be expected to lead to any Company Acquisition Proposal, and shall promptly terminate access by each such Third Party and
such Third Party’s Representatives to any data room (whether online or otherwise) containing information in respect of the Company
or its Subsidiaries.
(b) At
all times during the period commencing with the execution and delivery of this Agreement and continuing until the earlier to occur of
the termination of this Agreement pursuant to ARTICLE VII and the Acquisition Merger Effective Time, except as expressly
permitted by this Section 5.6, the Company shall not, nor shall its Subsidiaries or any of their respective officers and
directors, and the Company shall instruct and shall use commercially reasonable efforts to cause its and its Subsidiaries’ other
Representatives not to, directly or indirectly, (i) whether publicly or otherwise, solicit, initiate, knowingly encourage or knowingly
facilitate or induce the making, submission or announcement of a Company Acquisition Proposal or any inquiry, offer, proposal or indication
of interest that constitutes or could reasonably be expected to lead to any Company Acquisition Proposal; (ii) in connection with
or in response to any Company Acquisition Proposal or any inquiry, offer, proposal or indication of interest that could reasonably be
expected to lead to a Company Acquisition Proposal, furnish to any Third Party any non-public information relating to the Company or
any of its Subsidiaries, or afford access to the business, properties, assets, books or records or other information of the Company or
any of its Subsidiaries to any Third Party; (iii) enter into, conduct, participate or engage in negotiations or discussions with
any Third Party (other than solely to inform such Third Party that the terms of this Agreement prohibits such discussions) relating to
or for the purpose of encouraging or facilitating a Company Acquisition Proposal; (iv) execute or enter into any letter of intent,
memorandum of understanding, agreement in principle, term sheet, merger agreement or Contract contemplating or otherwise relating to
a Company Acquisition Transaction (a “Company Alternative Acquisition Agreement”) or requiring the Company to abandon,
terminate or fail to consummate the Transactions contemplated by this Agreement; (v) terminate, amend, modify, waive or release
any rights under any “standstill” or other similar agreement (unless the Company Board determines in good faith (after consultation
with its outside legal counsel) that the failure to grant any waiver or release under any standstill or similar agreement would reasonably
be expected to be inconsistent with its fiduciary duties under applicable Law); or (vi) resolve, propose or agree to do any of the
foregoing.
(c) Without
limiting the generality of the foregoing, SPAC and the Company acknowledge and agree that any violation of the restrictions set forth
in this Section 5.6 by any Subsidiary of the Company or any directors or officers of the Company or its Subsidiaries, shall
be deemed to be a breach of this Section 5.6 by the Company. The Company shall use its commercially reasonable efforts to
cause its and its Subsidiaries’ other Representatives to comply with the restrictions set forth in this Section 5.6.
(d) In
addition to the obligations of the Company set forth in Section 5.6(b), the Company shall promptly, and in all cases within
48 hours of its receipt, advise SPAC orally and in writing of any (i) Company Acquisition Proposal or (ii) request for information
or request to engage in negotiations or discussions or any other inquiry with respect to, or that could reasonably be expected to lead
to, a Company Acquisition Proposal, and provide SPAC with (A) copies of all written materials provided by such Person in connection
with such Company Acquisition Proposal, request or inquiry (redacted so as not to identify the Person who has made such Company Acquisition
Proposal, request or inquiry) and (B) a written summary of any material terms and conditions of such Company Acquisition Proposal
(other than the identity of the Third Party who has made the Company Acquisition Proposal, request or inquiry) not included in such written
materials.
(e) The
Company shall keep SPAC reasonably informed of the status of discussions relating to, and the material terms and conditions (including
all amendments or proposed amendments to such material terms and conditions) of any such Company Acquisition Proposal, request or inquiry,
and promptly (and in no event later than 48 hours thereafter) shall provide SPAC with copies of any revised written proposals or draft
agreements relating to any Company Acquisition Proposal, request or inquiry (redacted so as not to identify the Person who has made such
Company Acquisition Proposal, request or inquiry).
(f) Other
than in accordance with the terms of this Section 5.6(f), from the date of this Agreement until the earlier of the Acquisition
Merger Effective Time or the termination of this Agreement pursuant to ARTICLE VII, the Company Board shall not (i) withhold,
amend, withdraw or modify in a manner adverse to SPAC the Company Board Recommendation, (ii) adopt, approve or recommend (or publicly
propose to adopt, approve or recommend) any Company Acquisition Proposal, (iii) if a Company Acquisition Proposal has been publicly
announced, following the failure of the Company Board to publicly reaffirm the Company Board Recommendation within ten (10) Business
Days after receipt of SPAC’s written request to do so (provided that the Company Board shall not be required to make any such public
reaffirmation on more than one occasion in respect of any Company Acquisition Proposal), publicly recommend such Company Acquisition
Proposal, or (iv) fail to include the Company Board Recommendation in the Proxy Statement (collectively, a “Company Board
Recommendation Change”).
(g) Nothing
in this Agreement shall prohibit the Company or Company Board from (i) making a Company Board Recommendation Change in the event
it determines that a Company Acquisition Proposal is considered a Superior Offer; or (ii) making any other disclosure or communication
to Company Shareholders if the Company Board has determined in good faith after consultation with the Company’s outside legal counsel
that such disclosure or communication is required under applicable Law or that the failure to make such disclosure or communication would
reasonably be expected to be inconsistent with the fiduciary duties of the Company Board under applicable Law (it being understood, for
the avoidance of doubt, that the making of any disclosure or communication permitted under this Section 5.6(g) shall
not constitute a Company Board Recommendation Change).
(h) Except
as otherwise permitted by this Section 5.6, prior to the earlier to occur of the Acquisition Merger Effective Time and the
termination of this Agreement pursuant to ARTICLE VII, the Company shall not take any action to approve any transaction under,
or exempt any Person (other than SPAC and its Affiliates) from the provisions of, any takeover Law or any anti-takeover provision in
the Governing Documents of the Company or otherwise cause such restrictions not to apply.
(i) From
the date of this Agreement until the earlier to occur of the termination of this Agreement pursuant to ARTICLE VII and the
Acquisition Merger Effective Time, except as expressly permitted by this Section 5.6, SPAC shall, and shall cause its Affiliates
and its and their respective officers and directors to, and shall instruct and use its commercially reasonable efforts to cause its and
their respective other Representatives to, immediately cease and cause to be terminated, and shall not authorize or knowingly permit
any of its Representatives to continue, any and all existing discussions or negotiations with any Third Party conducted prior to the
date hereof by SPAC, any of its Affiliates or any of their respective Representatives that constitute or could reasonably be expected
to lead to any SPAC Acquisition Proposal.
(j) At
all times during the period commencing with the execution and delivery of this Agreement and continuing until the earlier to occur of
the termination of this Agreement pursuant to ARTICLE VII and the Acquisition Merger Effective Time, except as expressly
permitted by this Section 5.6, SPAC shall not, nor shall its Affiliates or any of their respective officers and directors,
and SPAC shall instruct and shall use commercially reasonable efforts to cause its and its Affiliates’ other Representatives not
to, directly or indirectly, (i) whether publicly or otherwise, solicit, initiate, knowingly encourage or knowingly facilitate or
induce the making, submission or announcement of a SPAC Acquisition Proposal or any inquiry, offer, proposal or indication of interest
that constitutes or could reasonably be expected to lead to any SPAC Acquisition Proposal; (ii) in connection with or in response
to any SPAC Acquisition Proposal or any inquiry, offer, proposal or indication of interest that could reasonably be expected to lead
to a SPAC Acquisition Proposal, furnish to any Third Party any information relating to the SPAC or any of its Affiliates, or afford access
to the business, assets, books or records or other information of SPAC or any of its Affiliates to any Third Party; (iii) enter
into, conduct, participate or engage in negotiations or discussions with any Third Party (other than solely to inform such Third Party
that the terms of this Agreement prohibits such discussions) relating to or for the purpose of encouraging or facilitating a SPAC Acquisition
Proposal; (iv) execute or enter into any letter of intent, memorandum of understanding, agreement in principle, term sheet, merger
agreement or Contract contemplating or otherwise relating to a SPAC Acquisition Proposal (an “SPAC Alternative Acquisition Agreement”)
or requiring SPAC to abandon, terminate or fail to consummate the Transactions contemplated by this Agreement; (v) terminate, amend,
modify, waive or release any rights under any “standstill” or other similar agreement (unless the SPAC Board determines in
good faith (after consultation with its outside legal counsel) that the failure to grant any waiver or release under any standstill or
similar agreement would reasonably be expected to be inconsistent with its fiduciary duties under applicable Law); or (vi) resolve,
propose or agree to do any of the foregoing.
(k) Without
limiting the generality of the foregoing, SPAC and the Company acknowledge and agree that any violation of the restrictions set forth
in this Section 5.6 by any Affiliate of SPAC or any directors or officers of SPAC, shall be deemed to be a breach of this
Section 5.6 by SPAC. SPAC shall use its commercially reasonable efforts to cause its Affiliates and its Representatives to
comply with the restrictions set forth in this Section 5.6.
(l) In
addition to the obligations of SPAC set forth in Section 5.6(j), SPAC shall promptly, and in all cases within 48 hours of
its receipt, advise the Company orally and in writing of any (i) SPAC Acquisition Proposal or (ii) request for information
or request to engage in negotiations or discussions or any other inquiry with respect to, or that could reasonably be expected to lead
to, a SPAC Acquisition Proposal, and provide the Company with (A) copies of all written materials provided by such Person in connection
with such SPAC Acquisition Proposal, request or inquiry (redacted so as not to identify the Person who has made such SPAC Acquisition
Proposal, request or inquiry) and (B) a written summary of any material terms and conditions of such SPAC Acquisition Proposal (other
than the identity of the Third Party who has made the SPAC Acquisition Proposal, request or inquiry) not included in such written materials.
(m) SPAC
shall keep the Company reasonably informed of the status of discussions relating to, and the material terms and conditions (including
all amendments or proposed amendments to such material terms and conditions) of any such SPAC Acquisition Proposal, request or inquiry,
and promptly (and in no event later than 48 hours thereafter) shall provide the Company with copies of any revised written proposals
or draft agreements relating to any SPAC Acquisition Proposal, request or inquiry (redacted so as not to identify the Person who has
made such SPAC Acquisition Proposal, request or inquiry). Other than in accordance with the terms of this Section 5.6(m) from
the date of this Agreement until the earlier of the Acquisition Merger Effective Time or the termination of this Agreement pursuant to
ARTICLE VII, the SPAC Board shall not (i) withhold, amend, withdraw or modify in a manner adverse to the Company the
SPAC Board Recommendation, (ii) adopt, approve or recommend (or publicly propose to adopt, approve or recommend) any SPAC Acquisition
Proposal, (iii) if a SPAC Acquisition Proposal has been publicly announced, following the failure of the SPAC Board to publicly
reaffirm the SPAC Board Recommendation within ten (10) Business Days after receipt of the Company’s written request to do
so (provided that the SPAC Board shall not be required to make any such public reaffirmation on more than one occasion in respect of
any SPAC Acquisition Proposal), publicly recommend such SPAC Acquisition Proposal, or (iv) fail to include the SPAC Board Recommendation
in the Proxy Statement (collectively, a “SPAC Board Recommendation Change”).
Section 5.7 Preparation
of Registration Statement / Proxy Statement. As promptly as reasonably practicable, and without undue delay, following the date of
this Agreement, (a) NewPubco, SPAC and the Company, shall prepare a proxy statement (the “Proxy Statement”) to
be filed with the SEC by SPAC relating to (i) the Transaction Proposals to be submitted to the holders of SPAC Shares at the SPAC
Shareholders Meeting and providing the Public Shareholders an opportunity to have their SPAC Shares redeemed, all in accordance with
and as required by SPAC’s Governing Documents, applicable Law, and any applicable rules and regulations of the SEC and Nasdaq,
and (ii) the Transaction Proposals to be submitted to the holders of Company Ordinary Shares and Company Preferred Shares at the
meeting of the Company’s Shareholders (the “Company Shareholders Meetings”), all in accordance with and as required
by Company’s Governing Documents, applicable Law, and any applicable rules and regulations of the SEC (and provided that the
Company Shareholders Meetings shall be convened on or immediately prior to the SPAC Shareholders Meeting), and (b) NewPubco, SPAC
and the Company shall prepare, and NewPubco shall file with the SEC a registration statement on Form F-4 or such other applicable
form as the Company and SPAC may agree (as amended or supplemented from time to time, the “Registration Statement”)
pursuant to which the NewPubco Ordinary Shares and NewPubco Warrants issuable in the Mergers will be registered with the SEC and that
will include the Proxy Statement (such document, the “Registration Statement / Proxy Statement”), all in accordance
with and as required by NewPubco and SPAC’s Governing Documents, applicable Law, and any applicable rules and regulations
of the SEC and Nasdaq, and the Company’s Governing Documents, applicable Law, and any applicable rules and regulations of
the SEC. SPAC shall manage and coordinate the preparation and filing of the Registration Statement / Proxy Statement and the preparation
and filing of any amendments to the Registration Statement / Proxy Statement required to be made thereto prior to Closing. Each of NewPubco,
SPAC and the Company shall use its commercially reasonable efforts to (a) cause the Registration Statement / Proxy Statement to
comply in all material respects with the applicable rules and regulations promulgated by the SEC (including, with respect to the
Company, the provision of financial statements of, and any other information with respect to, the Company for all periods, and in the
form, required to be included in the Registration Statement / Proxy Statement under Securities Laws (after giving effect to any waivers
received) or in response to any comments or requests from the SEC); (b) promptly notify the other party of, reasonably cooperate
with each other with respect to and respond promptly to any comments or requests of the SEC or its staff; (c) promptly prepare and
mutually agree upon (such agreement not to be unreasonably withheld, conditioned or delayed by any of NewPubco, SPAC or the Company,
as applicable) any amendments or supplements to the Registration Statement / Proxy Statement in order to address comments or requests
from the SEC or its staff (which amendments or supplements shall be promptly filed by the Parties); (d) have the Registration Statement
/ Proxy Statement declared effective under the Securities Act as promptly as reasonably practicable after it is filed with the SEC; and
(e) keep the Registration Statement / Proxy Statement effective through the Closing in order to permit the consummation of the transactions
contemplated by this Agreement. Each of SPAC, NewPubco and the Company, on the other hand, shall promptly furnish, or cause to be furnished,
to the other all information concerning such Party, its Non-Party Affiliates and their respective Representatives that may be required
or reasonably requested in connection with any action contemplated by this Section 5.7 or for inclusion in any other statement,
filing, notice or application made by or on behalf of the NewPubco, Company or SPAC to the SEC or Nasdaq in connection with the Transactions.
If any Party becomes aware of any information that should be disclosed in an amendment or supplement to the Registration Statement /
Proxy Statement, then (i) such Party shall promptly inform each other Party thereof; (ii) such Party shall prepare and mutually
agree upon with the other Parties (in either case, such agreement not to be unreasonably withheld, conditioned or delayed), an amendment
or supplement to the Registration Statement / Proxy Statement; (iii) NewPubco shall as promptly as and as reasonably practicable
file such mutually agreed upon amendment or supplement with the SEC; and (iv) the Parties shall reasonably cooperate, if appropriate,
in mailing such amendment or supplement to the SPAC Shareholders and the Company Shareholders. NewPubco shall as promptly as reasonably
practicable advise SPAC and the Company of the time of effectiveness of the Registration Statement / Proxy Statement or the issuance
of any stop order relating thereto, SPAC shall as promptly as reasonably practical advise NewPubco and the Company of the suspension
of the qualification of the SPAC Shares for offering or sale in any jurisdiction, and NewPubco, the Company and SPAC shall each use its
commercially reasonable efforts to have any such stop order or suspension lifted, reversed or otherwise terminated. Each of the Parties
shall use commercially reasonable efforts to ensure that none of the information related to it or any of its Non-Party Affiliates or
its or their respective Representatives, supplied by or on its behalf for inclusion or incorporation by reference in the Registration
Statement / Proxy Statement will, at the time the Registration Statement / Proxy Statement is initially filed with the SEC, at each time
at which it is amended, or at the time it becomes effective under the Securities Act contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they are made, not misleading. SPAC shall bear all fees and expenses in connection with the registration of NewPubco Ordinary
Shares and NewPubco Warrants and the filing of the Registration Statement / Proxy Statement. Filing of the Registration Statement / Proxy
Statement shall be the responsibility of SPAC with support from the Company.
Section 5.8 SPAC
Shareholder Approval. SPAC shall use its commercially reasonable efforts to, as promptly as practicable, (i) establish the record
date for, duly call, give notice of, convene and hold the meeting of the SPAC Shareholders (the “SPAC Shareholders Meeting”)
in accordance with the Governing Documents of SPAC and the Cayman Companies Law, (ii) after the Registration Statement / Proxy Statement
is declared effective under the Securities Act, (x) file the Proxy Statement contained therein with the SEC in definitive form and
(y) cause the Proxy Statement contained therein to be disseminated to the SPAC Shareholders and (iii) after the Registration
Statement / Proxy Statement is declared effective under the Securities Act, solicit proxies from the SPAC Shareholders to vote in accordance
with the SPAC Board Recommendation, and, if applicable, any approvals related thereto, and providing the SPAC Shareholders with the Offer.
SPAC shall, through approval of the SPAC Board, recommend to its shareholders (the “SPAC Board Recommendation”), (i) the
adoption and approval of this Agreement and the Transactions (including each of the Merger, the Plan of Merger and the amended and restated
SPAC’s Articles); (ii) the adoption and approval of each other proposal that either the SEC or Nasdaq (or the respective staff
members thereof) indicates is necessary in its comments to the Registration Statement / Proxy Statement or in correspondence related
thereto; (iii) the adoption and approval of each other proposal reasonably agreed to by SPAC, NewPubco, and the Company as necessary
or appropriate in connection with the consummation of the Transactions; and (iv) the adoption and approval of a proposal for the
adjournment of the SPAC Shareholders Meeting, if necessary, to permit further solicitation of proxies because there are not sufficient
votes to approve and adopt any of the foregoing (such proposals in (i) through (iv) together, the “Transaction Proposals”);
provided, that SPAC may adjourn the SPAC Shareholders Meeting (A) to solicit additional proxies for the purpose of obtaining
the SPAC Shareholder Approval, (B) for the absence of a quorum, (C) to allow reasonable additional time for the filing or mailing
of any supplemental or amended disclosures that SPAC has determined, based on the advice of outside legal counsel, is reasonably likely
to be required under applicable Law and for such supplemental or amended disclosure to be disseminated and reviewed by the SPAC Shareholders
prior to the SPAC Shareholders Meeting, or (D) if holders of SPAC Shares have elected to redeem a number of SPAC Shares as of such
time that would reasonably be expected to result in the Minimum Cash Condition not being satisfied; provided that, without the
Consent of the Company, in no event shall SPAC adjourn the SPAC Shareholders Meeting for more than seven (7) Business Days later
than the most recently adjourned meeting or to a date that is beyond the Termination Date. The SPAC Board Recommendation shall be included
in the Registration Statement / Proxy Statement. Except as otherwise required by applicable Law, SPAC covenants that none of the SPAC
Board or SPAC nor any committee of the SPAC Board shall change, withdraw, withhold or modify, or propose publicly or by formal action
of the SPAC Board, any committee of the SPAC Board or SPAC to change, withdraw, withhold or modify the SPAC Board Recommendation or any
other recommendation by the SPAC Board or SPAC of the proposals set forth in the Registration Statement / Proxy Statement.
Section 5.9 Conduct
of Business of SPAC. From and after the date of this Agreement until the earlier of the Closing or the termination of this Agreement
in accordance with its terms, SPAC shall, except as expressly contemplated by this Agreement or any Ancillary Document, as required by
applicable Law or as consented in writing by the Company (such consent not to be unreasonably withheld, conditioned or delayed), use
its commercially reasonable efforts to comply with and continue performing under SPAC’s Governing Documents, the Trust Agreement
and all other agreements or Contracts to which SPAC may be a party, including any promissory notes necessary to fund extensions of SPAC’s
charter in accordance with past practices. Without limiting the generality of the foregoing, from and after the date of this Agreement
until the earlier of the Closing or the termination of this Agreement in accordance with its terms, SPAC shall not, except as expressly
contemplated by this Agreement or any Ancillary Document, as required by applicable Law, as set forth on Section 5.9 of the
SPAC Disclosure Schedules or as consented to in writing by the Company (such consent not to be unreasonably withheld, conditioned or
delayed), do any of the following:
(a) adopt
any amendments, supplements, restatements or modifications to the Trust Agreement, Warrant Agreement or the Governing Documents of SPAC;
(b) declare,
set aside, make or pay a dividend on, or make any other distribution or payment (whether in cash, stock or property) in respect of, any
Equity Securities of SPAC, or repurchase, redeem (other than in connection with the Offer) or otherwise acquire, or offer to repurchase,
redeem or otherwise acquire, any outstanding Equity Securities of SPAC;
(c) (i) merge,
consolidate, combine or amalgamate SPAC with any Person or (ii) purchase or otherwise acquire (whether by merging or consolidating
with, purchasing any Equity Security in or a substantial portion of the assets of, or by any other manner) any corporation, partnership,
association or other business entity or organization or division thereof;
(d) split,
combine or reclassify any of its capital stock or other Equity Securities or issue any other security in respect of, in lieu of or in
substitution for shares of its capital stock;
(e) incur,
create, assume, refinance, guarantee or otherwise become liable for (whether directly, contingently, or otherwise) any Indebtedness or
other Liability other than working capital or extension loans from the Sponsor in an amount not to exceed $1,500,000;
(f) make
any loans or advances to, or capital contributions to, or guarantees for the benefit of, or any investment in, any other Person;
(g) issue,
grant, sell, deliver or dispose of any Equity Securities of SPAC or securities exercisable for or convertible into Equity Securities
of SPAC (including options, warrants or stock appreciation rights with respect to Equity Securities of SPAC);
(h) (i) enter
into, renew, modify or revise any SPAC Related Party Transaction, other than (A) the entry into any Contract with a SPAC Related
Party with respect to the incurrence of Indebtedness permitted by Section 5.9(e) or (B) for the avoidance of doubt,
any expiration or automatic extension or renewal of any Contract pursuant to its terms, or (ii) enter into any Contract that if
entered into prior to the execution and delivery of this Agreement would be a SPAC Related Party Transaction;
(i) pay,
distribute or advance any assets or property to any of its officers, directors, stockholders or other Affiliates or enter into or amend
any agreement with respect to the foregoing;
(j) engage
in any activities or business, other than activities or business (i) in connection with or incident or related to SPAC’s incorporation
or continuing corporate (or similar) existence, (ii) contemplated by, or incident or related to, this Agreement, any Ancillary Document,
the performance of covenants or agreements hereunder or thereunder or the consummation of the Transactions or (iii) those that are
administrative or ministerial, in each case, which are immaterial in nature;
(k) (i) change
any material method of Tax accounting, (ii) make (inconsistent with past practice), change or rescind any material election relating
to Taxes, (iii) settle or compromise any material Tax audit, assessment, claim or other Proceeding, (iv) enter into any closing
agreement in respect of material Taxes or enter into any Tax sharing or similar Tax agreement (which this (iv) does not include
any customary commercial agreement entered into in the ordinary course of business and the principal purpose of which does not relate
to Taxes), (v) surrender or allow to expire any right to claim a refund of material Taxes or (vi) Consent to any extension
or waiver of the statute of limitations period applicable to any claim or assessment in respect of material Taxes, in each case, that
could reasonably be expected to have an adverse and material impact on SPAC;
(l) authorize,
recommend, propose or announce an intention to adopt, or otherwise effect, a plan of complete or partial liquidation, dissolution, restructuring,
recapitalization, reorganization or similar transaction involving SPAC;
(m) change
SPAC’s methods of accounting in any material respect, other than changes that are made in accordance with PCAOB standards or as
required by any Governmental Entity;
(n) enter
into any Contract with any broker, finder, investment banker or other Person under which such Person is or will be entitled to any brokerage
fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement;
(o) except
for entries, modifications, amendments, waivers, terminations or non-renewals in the ordinary course of business, enter into, materially
modify, materially amend, waive any material right under, terminate (excluding any expiration in accordance with its terms) or fail to
renew, any Material Contract of the type described in Section 4.18 (excluding, for the avoidance of doubt, any expiration
or automatic extension or renewal of any such Material Contract pursuant to its terms);
(p) form
any Subsidiary;
(q) commence,
settle or compromise any Proceeding;
(r) take
any action or fail to take any action that would reasonably be expected to prevent or delay the obtainment of the Israeli Tax Rulings
or the Mergers; or
(s) enter
into any Contract to take, or cause to be taken, any of the foregoing actions set forth in clauses (a) through (o) other
than the entry into additional Subscription Agreements or PIPE Subscription Agreements pursuant to which SPAC agrees to issue and sell
on the Closing Date SPAC Shares as additional PIPE Financing.
Notwithstanding anything
in this Section 5.9 or this Agreement to the contrary, nothing set forth in this Agreement shall give the Company, directly
or indirectly, the right to control or direct the operations of SPAC.
Section 5.10 Nasdaq
Listing; SPAC Delisting. NewPubco, SPAC and the Company shall use their respective reasonable best efforts to cause: (a) NewPubco’s
initial listing application with Nasdaq in connection with the transactions contemplated by this Agreement to have been approved; (b) NewPubco
to satisfy all applicable initial listing requirements of Nasdaq; and (c) the NewPubco Ordinary Shares and NewPubco Warrants issuable
in accordance with this Agreement, including pursuant to the Mergers, and the NewPubco Ordinary Shares that will become issuable upon
the exercise of the NewPubco Warrants to be approved for listing on Nasdaq (and the Company shall reasonably cooperate in connection
therewith), subject to official notice of issuance, in each case, as promptly as reasonably practicable after the date of this Agreement,
and in any event prior to the Acquisition Merger Effective Time. SPAC shall pay, on behalf of NewPubco, all fees of Nasdaq in connection
with the application to list and the listing of NewPubco Ordinary Shares and NewPubco Warrants on Nasdaq. The Company, NewPubco and SPAC
shall use their respective reasonable best efforts to cause the SPAC Units, SPAC Shares and SPAC Warrants to be delisted from Nasdaq
(or be succeeded by the respective NewPubco securities) and to terminate its registration with the SEC pursuant to Sections 12(b), 12(g) and
15(d) of the Exchange Act (or be succeeded by NewPubco) as of the Closing Date or as soon as practicable thereafter.
Section 5.11 Trust
Account. Upon satisfaction or, to the extent permitted by applicable Law, waiver of the conditions set forth in ARTICLE VI
and provision of notice thereof to the Trustee, (a) at the Closing, SPAC shall (i) cause the documents, certificates and
notices required to be delivered to the Trustee pursuant to the Trust Agreement to be so delivered, and (ii) make all appropriate
arrangements to cause the Trustee to (A) pay as and when due all amounts, if any, payable to the Public Shareholders of SPAC pursuant
to the SPAC Shareholder Redemption, (B) immediately upon Closing (as permitted by the Trustee) pay all Unpaid Company Expenses,
Unpaid SPAC Expenses and Unpaid SPAC Liabilities and (C) immediately thereafter, pay all remaining amounts then available in the
Trust Account to an account designated by the Company in accordance with the Trust Agreement, and (b) thereafter, the Trust Account
shall terminate, except as otherwise provided therein.
Section 5.12 Indemnification;
Directors’ and Officers’ Insurance.
(a) To
the maximum extent permitted under applicable Law and Section 5.12(b), all rights to indemnification or exculpation now existing
in favor of the directors and officers of the SPAC and the Company, as provided in the Governing Documents of SPAC and the Company, as
applicable, or otherwise in effect as of immediately prior to the Acquisition Merger Effective Time solely with respect to any matters
occurring on or prior to the Acquisition Merger Effective Time shall survive the Transactions and shall continue in full force and effect
from and after the Acquisition Merger Effective Time for a period of seven (7) years and NewPubco shall perform and discharge, or
cause to be performed and discharged, all obligations to provide such indemnity and exculpation during such seven (7)-year period. The
indemnification and liability limitation or exculpation provisions of the Governing Documents of the Company and SPAC as are in effect
as of the Closing shall not, during such seven (7)-year period, be amended, repealed or otherwise modified after the Acquisition Merger
Effective Time in any manner that would materially and adversely affect the rights thereunder of individuals who, as of immediately prior
to the Acquisition Merger Effective Time, or at any time prior to such time, were directors or officers of the Company and SPAC (the
“D&O Persons”) entitled to be so indemnified, their liability limited or be exculpated with respect to any matters
occurring on or prior to the Acquisition Merger Effective Time and relating to the fact that such D&O Person was a director or officer
of the Company or SPAC immediately prior to the Acquisition Merger Effective Time, unless such amendment, repeal or other modification
is required by applicable Law.
(b) NewPubco
shall not have any obligation under this Section 5.12 to any D&O Person when and if a court of competent jurisdiction
shall ultimately determine (and such determination shall have become final and non-appealable) that the indemnification of such D&O
Person in the manner contemplated hereby is prohibited by applicable Law.
(c) (i) For
a period of seven (7) years after the Acquisition Merger Effective Time, (i) the Acquisition Surviving Company and (ii) For
a period of six (6) years after the Acquisition Merger Effective Time the SPAC Surviving Company, shall maintain, without, in each
case as applicable, any lapses in coverage, directors’ and officers’ liability insurance coverage for the benefit of those
Persons who are currently covered (whether directly, via endorsement or otherwise) by any comparable insurance policies of the Company
or SPAC, as applicable, in effect as of the date of this Agreement with respect to matters occurring on or prior to the Acquisition Merger
Effective Time (i.e., “tail coverage”). Such insurance policies shall provide coverage on terms (with respect to coverage
and amount) that are substantially the same as (and no less favorable in the aggregate to the insured than) the coverage provided under
SPAC’s or the Company’s, as applicable, directors’ and officers’ liability insurance policies in effect as of
the date of this Agreement (provided that any limitations or exclusions in, or provided under, the existing policies relating to a Business
Combination shall be removed therefrom and such policies shall, for the avoidance of doubt, be effective from an after the consummation
of the Transactions) and shall be obtained from an insurance carrier with the same or better credit rating as the current insurance carrier
of SPAC and the Company with respect to directors’ and officers’ liability insurance; provided that the Acquisition
Surviving Company and the SPAC Surviving Company shall not be obligated to pay annual premiums in excess of two hundred fifty percent
(250%) of the most recent annual premium paid by the Company or SPAC, as applicable, prior to the date of this Agreement and, in such
event, the Acquisition Surviving Company and the SPAC Surviving Company shall purchase the maximum coverage available for two hundred
fifty percent (250%) of the most recent annual premium paid by the Company or SPAC, as applicable, prior to the date of this Agreement.
(d) If
NewPubco, the SPAC Surviving Company or the Acquisition Surviving Company, or any of its successors or assigns (i) shall merge or
consolidate with or merge into any other corporation or entity and shall not be the surviving or continuing corporation or entity of
such consolidation or merger or (ii) shall transfer all or substantially all of their respective properties and assets as an entity
in one or a series of related transactions to any Person, then in each such case, proper provisions shall be made so that the successors
or assigns of NewPubco, the SPAC Surviving Company or the Acquisition Surviving Company, as the case may be, shall assume all of the
obligations set forth in this Section 5.12.
(e) The
D&O Persons entitled to the indemnification, expense reimbursement, liability limitation, exculpation and/or insurance coverage set
forth in this Section 5.12 are intended to be third-party beneficiaries of this Section 5.12. This Section 5.12
shall survive the consummation of the Transactions and shall be binding on all successors and assigns of the Acquisition Surviving
Company and SPAC Surviving Company.
Section 5.13 Post-Closing
Directors and Officers. NewPubco shall take all actions reasonably necessary or appropriate such that effective immediately after
the Acquisition Merger Effective Time:
(a) the
NewPubco Board shall initially consist of up to seven (7) directors, which shall initially include:
(i) one
(1) director designated solely by SPAC;
(ii) four
(4) directors designated by the Company; and
(iii) two
(2) directors who shall each be industry experts designated by mutual agreement of the Company and SPAC;
(b) the
NewPubco Board shall be a staggered board and directors shall be divided into three separate classes, class A, class B, and class C.
Each director shall serve for a term of three years, with only one class of directors being elected in each year and with each class
holding office until its successors are elected and qualified. The classes shall be divided as follows:
(i) class
A shall initially consist of the two (2) directors designated by mutual agreement of the Company and SPAC, the initial terms of
which shall expire at the first annual meeting of the NewPubco Shareholders to be held after the Acquisition Merger Effective Time;
(ii) class
B shall initially consist of two (2) directors, one (1) of which shall be the SPAC-designated director and one (1) of
which shall be the Company-designated director, the initial terms of which shall expire at the second annual meeting of the NewPubco
Shareholders to be held after the Acquisition Merger Effective Time; and
(iii) class
C shall initially consist of the three (3) remaining Company-designated directors, the initial terms of which shall expire at the
second annual meeting of the NewPubco Shareholders to be held after the Acquisition Merger Effective Time;
(c) at
least a majority of the directors of the NewPubco Board shall qualify as “independent directors” and otherwise meet the requirements
as specified in the rules and regulations of the SEC and Nasdaq; and
(d) the
officers of NewPubco (the “Officers”) shall be the individuals set forth on Section 5.13 of the Company
Disclosure Schedules.
Section 5.14 PCAOB
Financials.
(a) As
promptly as reasonably practicable after the Company shall have raised at least $1,000,000 in Company Permitted Interim Financing following
the date hereof (the “PCAOB Commencement Date”), but in no event later than May 15, 2025 (the “PCAOB
Delivery Date”), the Company shall use reasonable best efforts to deliver to SPAC the financial statements required to be included
in the Registration Statement / Proxy Statement and any other filings to be made by the Company, NewPubco and/or SPAC with the SEC in
connection with the Transactions (including the financial statements for the fiscal years ended December 31, 2023 and December 31,
2024). All such financial statements, together with any unaudited consolidated balance sheet and the related statements of operations,
changes in shareholders’ equity and cash flows of the Company as of and for a year-to-date period ended as of the end of a different
fiscal quarter that is required to be included in the Registration Statement / Proxy Statement and any other filings to be made by the
Company, NewPubco and/or SPAC with the SEC in connection with the Transactions, (A) will be prepared in accordance with GAAP applied
on a consistent basis (except as may be indicated in the notes thereto) throughout the periods indicated, (B) will fairly present,
in all material respects, the financial position, results of operations and cash flows of the Company as of the date thereof and for
the period indicated therein, except as otherwise specifically noted therein, and (C) will, in the case of the audited financial
statements of the Company, have been audited in accordance with the standards of the PCAOB. The auditor engaged to audit the audited
financial statements of the Company and to review the unaudited financial statements is an independent registered public accounting firm
with respect to the Company within the meaning of the Exchange Act and the applicable rules and regulations thereunder adopted by
the SEC and the PCAOB. In the event that the Company has not provided the financial statements required to be included in the Registration
Statement / Proxy Statement by the PCAOB Delivery Date, then SPAC shall have the right, but not the obligation, to declare a Registration
Statement / Proxy Statement default (“PCAOB Related Default”), provided that if such request from SPAC is related
to providing PCAOB compliant financial statements for additional periods, the Company will provide such financial statements as soon
as practicable thereafter without undue delay and such requirement by itself shall not constitute a PCAOB Related Default.
(b) The
Company shall use its commercially reasonable efforts (i) to assist, upon reasonable advance written notice, during normal business
hours and in a manner such as to not unreasonably interfere with the normal operation of any member of the Company, SPAC in causing to
be prepared in a timely manner any other financial information or statements (including customary pro forma financial statements) that
are required to be included in the Registration Statement / Proxy Statement and any other filings to be made by the Company with the
SEC in connection with the Transactions and (ii) to obtain the Consents of its auditors with respect thereto as may be required
by applicable Law or requested by the SEC.
Section 5.15 Merger
Proposal; Certificate of Merger.
(a) Subject
to the ICL and the regulations promulgated thereunder, as soon as reasonably practicable following the date of this Agreement, the Company
and Merger Sub 1 shall, as applicable, take the following actions within the timeframes set forth in this Section 5.15;
provided, however, that any such actions or the time frame for taking such action shall be subject to any amendment in the applicable
provisions of the ICL and the regulations promulgated thereunder (and in case of an amendment thereto, such amendment shall automatically
apply so as to amend this Section 5.15 accordingly): (i) as promptly as practicable following the
date hereof, cause a merger proposal (in the Hebrew language) with respect to the Acquisition Merger in a form reasonably acceptable
to the Parties hereto (the “Merger Proposal”) to be executed in accordance with Section 316 of the ICL, (ii) deliver
the Merger Proposal to the Companies Registrar within three (3) days from the calling of the Company Shareholders Meeting, (iii) cause
a copy of the Merger Proposal to be delivered to its secured creditors, if any, no later than three (3) days after the date on which
the Merger Proposal is delivered to the Companies Registrar, (iv) (A) publish a notice to its creditors, stating that the Merger
Proposal was submitted to the Companies Registrar and that the creditors may review the Merger Proposal at the office of the Companies
Registrar, the Company’s registered office or Merger Sub 1’s registered office, as applicable, and at such other locations
as the Company or Merger Sub 1, as applicable, may determine, in (x) two (2) daily Hebrew newspapers, on the day that the Merger
Proposal is submitted to the Companies Registrar and (y) in a popular newspaper outside of Israel as may be required by applicable
law, within three (3) business days after the Merger Proposal was submitted to the Companies Registrar; (B) within four (4) business
days from the date of submitting the Merger Proposal to the Companies Registrar, send a notice by registered mail to all of the “Substantial
Creditors” (as such term is defined in the regulations promulgated under the ICL) that the Company or Merger Sub 1, as applicable,
is aware of (if any), in which it shall state that the Merger Proposal was submitted to the Companies Registrar and that the creditors
may review the Merger Proposal at such additional locations, if such locations were determined in the notice referred to in the immediately
preceding clause (A) and at the times set in such notice; and (C) send to the Company’s “employees committee”,
if any, or display in a prominent place at the Company’s premises a copy of the notice published in a daily Hebrew newspaper (as
referred to in clause (A) of this Section 5.15(iv)), no later than three (3) business days following
the day on which the Merger Proposal was submitted to the Companies Registrar; (v) promptly after the Company and Merger Sub 1,
as applicable, shall have complied with the preceding clauses (iii) and (iv) of this Section 5.15,
but in any event no more than three (3) business days following the date on which such notice was sent to the creditors, inform
the Companies Registrar, in accordance with Section 317(b) of the ICL, that notice was given to their respective creditors,
if any, under Section 318 of the ICL (and regulations promulgated thereunder), (vi) not later than three (3) days after
the date on which the Company Shareholder Approval is received, inform (in accordance with Section 317(b) of ICL and the regulations
thereunder) the Companies Registrar of such approval, and (vii) subject to the satisfaction or waiver of the last of the conditions
set forth in ARTICLE VI to be satisfied or (to the extent permitted) waived (other than any such conditions that by
their nature are to be satisfied at the Closing, but subject to the satisfaction or (to the extent permitted) waiver of such conditions
at the Closing), in accordance with the customary practice of the Companies Registrar, request that the Companies Registrar declare the
Acquisition Merger effective and issue the Certificate of Merger upon such date as the Company and Merger Sub 1 shall advise the Companies
Registrar, that in no event shall be prior to the lapse of fifty (50) days from the filing of the Merger Proposal with the Companies
Registrar and thirty (30) days from the date the Company Shareholder Approval is received. For the avoidance of doubt, and notwithstanding
any provision of this Agreement to the contrary, it is the intention of the Parties that the Acquisition Merger shall be declared effective
and the Certificate of Merger shall be issued on the Closing Date. For purposes of this Section 5.15,
“business day” shall have the meaning set forth in the Israeli Companies Regulations (Merger) 5760-2000 promulgated under
the ICL.
(b) Merger
Sub 2 and SPAC shall take all necessary actions so as to effect the SPAC Merger in accordance with all applicable requirements under
the Cayman Companies Act.
Section 5.16 ISA
Exemptions. (i) the Company shall, in coordination with SPAC, as promptly as practicable after the date of this Agreement and
in any event within thirty (30) days thereof, the Parties shall cooperate and shall file with the ISA any required exemption or “no
action” requests in connection with the issuance of the Company Merger Consideration, requesting the ISA to exempt or agree not
to take any action against the Parties in connection with any such issuance without a publication of a prospectus in accordance with
the Securities Law (an “Israeli Prospectus” and the “ISA Exemption”) The Parties shall use their
reasonable efforts to respond promptly to comments from the ISA and to obtain the ISA Exemption. The Company shall provide to SPAC a
copy of its application to obtain the ISA Exemption for SPAC’s prior review and comments and shall update SPAC and its counsel
on any developments with respect to the application and any communications with the ISA in connection with the application and the review
thereof and facilitate SPAC’s counsel’s involvement in such communications to the extent reasonably practicable. The Parties
shall, and shall cause their respective counsels to, cooperate to obtain the ISA Exemption and to facilitate each other Party’s
and its counsel’s involvement in all communications with and submission of documents and information to the ISA in connection with
the application and receipt of the ISA Exemption.
Section 5.17 Post-Closing
NewPubco Incentive Equity Plan. Prior to the effectiveness of the Registration Statement / Proxy Statement, the NewPubco Board shall
approve and adopt an equity incentive plan in a form to be mutually agreed between NewPubco, SPAC and the Company based on industry-specific
market precedent (such agreement not to be unreasonably withheld, conditioned or delayed) in the manner prescribed under applicable Laws,
effective as of the Closing Date, which shall provide for (a) an aggregate share reserve thereunder equal to ten percent (10%) of
the number of NewPubco Ordinary Shares on a fully diluted basis at the Closing, subject to any adjustments as set forth thereof and (b) an
increase commencing on January 1, 2026 and continuing annually on the anniversary thereof through (and including) January 1,
2035, equal to no more than two percent (2%) of the number of NewPubco Ordinary Shares on a fully diluted basis on the last day of the
immediately preceding calendar year.
Section 5.18 Post-Closing
Employee Stock Purchase Plan. Prior to the effectiveness of the Registration Statement / Proxy Statement, the NewPubco Board shall
approve and adopt an employee stock purchase plan (“ESPP”) in a form to be mutually agreed between SPAC, NewPubco
and the Company based on industry-specific market precedent (such agreement not to be unreasonably withheld, conditioned or delayed),
in the manner prescribed under applicable Laws, effective as of the Closing Date, which shall provide for (a) an initial aggregate
share reserve thereunder equal to ten percent (10%) of the number of NewPubco Ordinary Shares on a fully diluted basis at the Closing,
subject to any adjustments as set forth in such ESPP, and (b) an increase commencing on January 1, 2026 and continuing annually
on the anniversary thereof through (and including) January 1, 2035, equal to no more than two percent (2%) of the number of NewPubco
Ordinary Shares on a fully diluted basis on the last day of the immediately preceding calendar year.
Section 5.19 Post-Closing
Employee Retention Package. Prior to the effectiveness of the Registration Statement / Proxy Statement, the NewPubco Board shall
approve and adopt an employee retention package (the “Retention Package”), which shall provide key employees of the
Acquisition Surviving Company with NewPubco restricted stock units, NewPubco options and/or cash.
Section 5.20 PIPE
Investment. Prior to the earlier of the Closing and the termination of this Agreement in accordance with its terms:
(a) The
Company, NewPubco and SPAC shall use their reasonable best efforts to (i) obtain PIPE Financing, enforce the obligations of the
new subscribers (“PIPE Investors”) under new Subscription Agreements (“PIPE Subscription Agreements”),
and consummate the purchases contemplated by the PIPE Subscription Agreements on the terms and subject to the conditions set forth in
the PIPE Subscription Agreements, (ii) satisfy all conditions to the PIPE Financing set forth in the PIPE Subscription Agreements
that are within their control and (iii) satisfy and comply with their respective obligations under the PIPE Subscription Agreements.
SPAC and the Company shall each use its reasonable best efforts to, and shall use its reasonable best efforts to cause its respective
Representatives to, cooperate with the other Parties and their Representatives in connection with the matters specified in this Section 5.20;
(b) Any
financing, excluding in all respects any Company Permitted Interim Financing, that occurs after the execution of this Agreement (including
but not limited to any Additional Financing and/or PIPE Financing other than any Company Permitted Interim Financing) shall require the
prior written consent of both Parties, acting in good faith;
(c) The
Parties shall reasonably cooperate, and with respect to PIPE Financing or any Additional Financing, other than Company Permitted Interim
Financing, mutually agree, in respect of the production of any materials or presentations that will be provided or disclosed in connection
with the PIPE Financing or any Additional Financing. In connection with the PIPE Financing, the SPAC, the Company, or Sponsor may conduct
a roadshow prior to or following the execution of this Agreement. For the avoidance of doubt, each Party will remain subject to any Confidentiality
Agreements in connection with any disclosure made pursuant to Section 5.20;
(d) The
Parties mutually agree that the PIPE Financing will be conducted in accordance with Rule 506(c) of Regulation D of the Securities
Act;
(e) In
the event NewPubco, Company or SPAC intend to execute PIPE Financing that is to be consummated substantially simultaneously with Closing,
and where the implied equity valuation of the Company in such PIPE Financing is lower of the Company Equity Value, then prior to the
execution of such PIPE Financing, the Company and SPAC shall negotiate in good faith, and the amount of forfeited NewPubco Ordinary Shares
that would otherwise be received by the Sponsor in connection with the Closing; and
(f) Unless
otherwise consented in writing by each of the Company and SPAC, NewPubco or SPAC shall not amend, modify or waive any provisions of any
PIPE Subscription Agreements without the prior written consent of the Company; provided that any amendment, modification or waiver
that is solely ministerial in nature or otherwise immaterial, and, in each case, that does not affect any economic or any other material
term, shall not require the prior written consent of the Company, so long as SPAC or NewPubco has provided to the Company no less than
five (5) Business Days’ prior written notice of such amendment, modification or waiver (including the form thereof), it being
understood, but without limiting the foregoing, that it shall be deemed material if any amendment, modification or waiver (i) reduces
or is reasonably expected to reduce the amount of the PIPE Financing available under any PIPE Subscription Agreement, (ii) imposes
new or additional conditions or otherwise expands, amends or modifies any of the conditions to the receipt of the PIPE Financing or (iii) prevents,
impedes or delays or is expected to prevent, impede or delay the consummation of the Transactions. Without limiting the generality of
the foregoing, the Company, SPAC or NewPubco, as applicable, shall each give the other Parties prompt written notice: (A) of any
breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could give rise to any breach or
default) by any party to any PIPE Subscription Agreements known to the Company, SPAC or NewPubco, as applicable; (B) of the receipt
of any notice or other communication from any PIPE Investors by the Company, SPAC or NewPubco, as applicable, with respect to any actual,
potential, threatened or claimed expiration, lapse, withdrawal, material breach, material default, termination or repudiation by any
party to any PIPE Subscription Agreement or any provisions of any PIPE Subscription Agreement; and (C) if the Company, SPAC or NewPubco,
as applicable, do not expect NewPubco to receive, all or any portion of the PIPE Financing proceeds on the terms, in the manner or from
one or more PIPE Investors.
Section 5.21 Company
Permitted Interim Financing. The Company shall keep SPAC reasonably informed with respect any Company Permitted Interim Financing.
Section 5.22 Post-Closing
Officer and Director Remuneration. As soon as practicable after the execution of this Agreement, the Company shall retain an independent
compensation consultant to conduct a benchmark analysis of the compensation packages for officers and directors of public market companies
that are comparable to the Company (the “Benchmark Analysis”) in order to provide compensation packages to the officers
and directors of the Company after the Closing Date that are in line with public market practices. The Benchmark Analysis, as well as
the recommendations contained therein, shall be presented to the Company’s compensation committee and Company Board in connection
with their review and approval of such compensation packages by April 30, 2025, which shall, subject to the receipt of any required
approval of the Company Shareholders, be effective as of the Closing Date.
Section 5.23 Transaction
Support Agreements. The Company shall use its reasonable best efforts to cause the Key Company Shareholders to enter into transaction
support agreements, each in substantially the same form as the Transaction Support Agreement set forth on Exhibit B hereto,
such that the aggregate voting power in the Company of such Company Shareholders, when combined with the aggregate voting power in the
Company of the Supporting Company Shareholders who have already entered into Transaction Support Agreements, will be sufficient as of
the time of the Company Shareholders Meetings to obtain the Company Shareholder Approval.
Section 5.24 Further
Assurances. If, prior to the Acquisition Merger Effective Time, the applicable parties hereto are unable to obtain the ISA Exemption,
the Israeli Tax Rulings, or any other Consent from a Governmental Entity necessary to effectuate the Transaction, each of SPAC, the Company,
NewPubco, Merger Sub 1, and Merger Sub 2 shall use (and the Company shall cause each of its Subsidiaries to use) its commercially reasonable
efforts to (a) take all such actions that are necessary, proper or appropriate to consummate the Transactions, including negotiating
in good faith to modify the structure of the Transactions (provided that such modifications do not materially adversely affect the other
parties hereto) and the execution and delivery of any documents, certificates, instruments or other papers that are reasonably required
for the consummation of the Transactions; and (b) cause the fulfillment at the earliest practicable date of all of the conditions
to their respective obligations to consummate and make effective the Transactions.
Article VI.
CONDITIONS TO CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT
Section 6.1 Conditions
to the Obligations of the Parties. The obligations of the Parties to consummate the transactions contemplated by this Agreement are
subject to the satisfaction or waiver, if permitted by applicable Law, in writing by the Party for whose benefit such condition exists
of the following conditions:
(a) all
applicable waiting periods (and any extensions thereof), if any, under the HSR Act with respect to the Transactions, and any commitment
to, or agreement (including any timing agreement) with, any Governmental Entity not to close the Transactions, shall have expired or
been terminated;
(b) there
shall not have been entered, issued, enacted or promulgated any Law or Order enjoining, prohibiting, restricting or making unlawful the
consummation of the Transactions;
(c) the
Registration Statement / Proxy Statement shall have become effective in accordance with the provisions of the Securities Act, no stop
order suspending the effectiveness of the Registration Statement / Proxy Statement shall have been issued by the SEC and shall remain
in effect with respect to the Registration Statement / Proxy Statement, and no Proceeding seeking such a stop order shall have been threatened
or initiated by the SEC and remain pending;
(d) the
Company Shareholder Approval shall have been obtained;
(e) the
SPAC Shareholder Approval shall have been obtained;
(f) the
Israeli Tax Rulings shall have been obtained;
(g) At
least fifty (50) days shall have elapsed after the filing of the Merger Proposal with the Companies Registrar and at least thirty (30)
days shall have elapsed after the Company Shareholder Approval has been received;
(h) The
ISA Exemption shall have been obtained; and
(i) the
NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants and NewPubco Warrants (including, for the avoidance of doubt, the
NewPubco Ordinary Shares, Assumed Company Options, Converted Warrants and NewPubco Warrants to be issued pursuant to the Mergers) shall
have been approved for listing on Nasdaq, subject only to official notice of issuance thereof and the requirement to have a sufficient
number of round lot holders.
Section 6.2 Other
Conditions to the Obligations of SPAC. The obligations of SPAC to consummate the Transactions are subject to the satisfaction or
waiver, if permitted by applicable Law, in writing by SPAC of the following further conditions:
(a) (i) the
Company Fundamental Representations (other than the representations and warranties set forth in Section 3.2(a))
shall be true and correct (without giving effect to any limitation as to “materiality” or “Company Material Adverse
Effect” or any similar limitation set forth therein) in all material respects as of the Closing Date, as though made on and as
of the Closing Date (except to the extent that any such representation and warranty is made as of an earlier date, in which case such
representation and warranty shall be true and correct in all material respects as of such earlier date), (ii) the representations
and warranties set forth in Section 3.2(a) shall be true and correct in all respects (except for de minimis inaccuracies)
as of the Closing Date, as though made on and as of the Closing Date (except to the extent that any such representation and warranty
is made as of an earlier date, in which case such representation and warranty shall be true and correct in all respects (except for de
minimis inaccuracies) as of such earlier date), and (iii) the representations and warranties of the Company set forth in ARTICLE III
(other than the Company Fundamental Representations) shall be true and correct (without giving effect to any limitation as to “materiality”
or “Company Material Adverse Effect” or any similar limitation set forth herein) in all respects as of the Closing Date,
as though made on and as of the Closing Date (except to the extent that any such representation and warranty is made as of an earlier
date, in which case such representation and warranty shall be true and correct in all respects as of such earlier date), except where
the failure of such representations and warranties to be true and correct, taken as a whole, does not cause a Company Material Adverse
Effect;
(b) the
Company shall have obtained and provided to SPAC (i) all required approvals from the Company Shareholders, and (ii) all applicable
regulatory approvals or confirmation of competition of any regulatory reviews with respect to the Company (including, but not limited
to, antitrust approvals and HSR Act approvals);
(c) the
Company shall have performed and complied in all material respects with the covenants and agreements required to be performed or complied
with by the Company under this Agreement at or prior to the Closing;
(d) since
the date of this Agreement, no Company Material Adverse Effect has occurred that is continuing; and
(e) at
or prior to the Closing, the Company shall have delivered, or caused to be delivered, to SPAC a certificate duly executed by an authorized
officer of the Company, dated as of the Closing Date, to the effect that the conditions specified in Section 6.2(c) and
Section 6.2(d) are satisfied, in a form and substance reasonably satisfactory to SPAC.
(f) At
or prior to the Closing, the Key Company Shareholders shall have delivered to the SPAC countersigned copies of the Registration Rights
and Lock-Up Agreement.
Section 6.3 Other
Conditions to the Obligations of the Company. The obligations of the Company to consummate the Transactions are subject to the satisfaction
or waiver, if permitted by applicable Law, in writing by the Company of the following further conditions:
(a) (i) the
SPAC Fundamental Representations (other than the representations and warranties set forth in Section 4.6(a)) shall be true
and correct (without giving effect to any limitation as to “materiality” or “SPAC Material Adverse Effect” or
any similar limitation set forth therein) in all material respects as of the Closing Date, as though made on and as of the Closing Date
(except to the extent that any such representation and warranty is made as of an earlier date, in which case such representation and
warranty shall be true and correct in all material respects as of such earlier date), (ii) the representations and warranties set
forth in Section 4.6(a) shall be true and correct in all respects (except for de minimis inaccuracies) as of
the Closing Date, as though made on and as of the Closing Date (except to the extent that any such representation and warranty is made
as of an earlier date, in which case such representation and warranty shall be true and correct in all respects (except for de minimis
inaccuracies) as of such earlier date), and (iii) the representations and warranties of SPAC set forth in ARTICLE IV
(other than the SPAC Fundamental Representations) shall be true and correct (without giving effect to any limitation as to “materiality”
or “SPAC Material Adverse Effect” or any similar limitation set forth herein) in all respects as of the Closing Date, as
though made on and as of the Closing Date (except to the extent that any such representation and warranty is made as of an earlier date,
in which case such representation and warranty shall be true and correct in all respects as of such earlier date), except where the failure
of such representations and warranties to be true and correct, taken as a whole, does not cause a SPAC Material Adverse Effect;
(b) SPAC
shall have performed and complied in all material respects with the covenants and agreements required to be performed or complied with
by SPAC under this Agreement at or prior to the Closing;
(c) SPAC
shall have obtained and provided to the Company (i) all required approvals from the SPAC Shareholders, and (ii) all applicable
regulatory approvals or confirmation of competition of any regulatory reviews with respect to the Company (including but not limited
to antitrust approvals and HSR Act approvals);
(d) since
the date of this Agreement, no SPAC Material Adverse Effect has occurred that is continuing;
(e) the
Aggregate Transaction Proceeds, shall be greater than or equal to $15,000,000 (the “Minimum Cash Condition”).
(f) at
the Closing, SPAC shall have delivered to the Company an executed resignation from each director and officer of SPAC other than those
listed on Exhibit F;
(g) NewPubco
shall have confirmed new employment agreements with each of the senior employees of the Company who had entered into such agreements;
(h) at
or prior to the Closing, SPAC shall have delivered, or caused to be delivered, to the Company a certificate duly executed by an authorized
officer of SPAC, dated as of the Closing Date, to the effect that the conditions specified in Section 6.3(a), Section 6.3(b) and
Section 6.3(c) are satisfied, in a form and substance reasonably satisfactory to the Company;
(i) no
Transaction Expenses Cap Excess, if any, shall have remained outstanding, without the prior written consent of the Company;
(j) if
applicable, the Company and SPAC shall have reached an agreement on the terms of the Dilution Cap Breach Adjustment; and
(k) at
or prior to the Closing, Sponsor shall have delivered to the Company a countersigned copy of the Registration Rights and Lock-Up Agreement.
Section 6.4 Frustration
of Closing Conditions. The Company may not rely on the failure of any condition set forth in this ARTICLE VI to be satisfied
if such failure was proximately caused by the Company’s failure to comply with or perform any of its covenants or obligations set
forth in this Agreement or use reasonable best efforts to cause the Closing to occur, as required by Section 5.2. SPAC may
not rely on the failure of any condition set forth in this ARTICLE IV to be satisfied if such failure was proximately caused
by either of SPAC’s failure to comply with or perform any of its covenants or obligations set forth in this Agreement or use commercially
reasonable efforts to cause the Closing to occur, as required by Section 5.2.
Article VII.
TERMINATION
Section 7.1 Termination.
This Agreement may be terminated, and the Transactions may be abandoned at any time prior to the Closing:
(a) by
mutual written consent of SPAC and the Company;
(b) by
SPAC, if any of the representations or warranties set forth in ARTICLE III shall not be true and correct or if the Company
has materially breached any covenant or agreement on the part of the Company set forth in this Agreement (including an obligation to
consummate the Closing) such that the condition to Closing set forth in Section 6.2(a), Section 6.2(b), or Section 6.2(c) could
not be satisfied and the breach or breaches causing such representations or warranties not to be true and correct, or the failures to
perform any covenant or agreement, as applicable, is (or are) not cured or cannot be cured within thirty (30) days after written notice
thereof is delivered to the Company by SPAC; provided, however, that SPAC is not then in breach of this Agreement so as
to prevent the condition to Closing set forth in either Section 6.3(a), Section 6.3(b) or Section 6.3(c) from
being satisfied;
(c) by
the Company, if any of the representations or warranties set forth in ARTICLE IV shall not be true and correct or if SPAC
has materially breached any covenant or agreement on the part of SPAC set forth in this Agreement (including an obligation to consummate
the Closing) such that the condition to Closing set forth in either Section 6.3(a), Section 6.3(b) or Section 6.3(c) could
not be satisfied and the breach or breaches causing such representations or warranties not to be true and correct, or the failures to
perform any covenant or agreement, as applicable, is (or are) not cured or cannot be cured within thirty (30) days after written notice
thereof is delivered to SPAC by the Company; provided, however, the Company is not then in breach of this Agreement so
as to prevent the condition to Closing set forth in Section 6.2(a), Section 6.2(b), or Section 6.2(c) from
being satisfied;
(d) by
either SPAC or the Company, if the Transactions have not been consummated on or prior to December 31, 2025 (the “Termination
Date”); provided, that (i) the right to terminate this Agreement pursuant to this Section 7.1(d) shall
not be available to SPAC if SPAC’s breach of any of its covenants or obligations under this Agreement shall have proximately caused
the failure to consummate the transactions contemplated by this Agreement on or before the Termination Date, and (ii) the right
to terminate this Agreement pursuant to this Section 7.1(d) shall not be available to the Company if the Company’s
breach of its covenants or obligations under this Agreement shall have proximately caused the failure to consummate the transactions
contemplated by this Agreement on or before the Termination Date;
(e) by
either SPAC or the Company, if any Governmental Entity shall have issued an Order, promulgated a Law or taken any other action permanently
enjoining, restraining or otherwise prohibiting the transactions contemplated by this Agreement and such Order or other action shall
have become final and non-appealable; provided, that (i) the right to terminate this Agreement under this Section 7.1(e) shall
not be available to SPAC if (A) SPAC’s failure to fulfill any covenant or obligation under this Agreement has been the primary
cause of, or primarily resulted in, such Order, Law or other action or (B) SPAC is in material breach of its covenants or obligations
under this Agreement on such date and (ii) the right to terminate this Agreement under this Section 7.1(e) shall
not be available to the Company if (A) the Company’s failure to fulfill any covenant or obligation under this Agreement has
been the primary cause of, or primarily resulted in, such Order, Law or other action or (B) the Company is in material breach of
its obligations under this Agreement on such date;
(f) by
either SPAC or the Company if the SPAC Shareholders Meeting has been held (including any adjournment thereof), has concluded, SPAC Shareholders
have duly voted and the SPAC Shareholder Approval was not obtained;
(g) by
either SPAC or the Company if the Company Shareholders Meetings has been held (including any adjournment thereof), has concluded, Company
Shareholders have duly voted and the Company Shareholder Approval was not obtained;
(h) subject
to Section 7.3(a), at any time prior to the receipt of the Company Shareholder Approval, by the Company, in order to immediately
enter into a written definitive agreement with respect to a Superior Proposal pursuant to Section 5.6;
(i) by
either SPAC or the Company, if Company Permitted Interim Financing in an aggregate amount equal to at least $3,500,000 shall not have
been raised by the Company, within three (3) months following the date hereof (the “Threshold Raised Amount”);
and
(j) by
the SPAC if the SPAC declares a PCAOB Related Default that remains uncured for ten (10) business days.
Section 7.2 Effect
of Termination. In the event of the termination of this Agreement pursuant to Section 7.1, this entire Agreement shall
forthwith become void (and there shall be no Liability or obligation on the part of the Parties and their respective Non-Party Affiliates)
with the exception of (a) the confidentiality obligation set forth in Section 5.3(a), this Section 7.2,
ARTICLE I and ARTICLE VIII (to the extent related to the foregoing), each of which shall survive such termination
and remain valid and binding obligations of the Parties and (b) the Confidentiality Agreement, which shall survive such termination
and remain valid and binding obligations of the parties thereto in accordance with their respective terms. Notwithstanding the foregoing
or anything to the contrary herein, the termination of this Agreement pursuant to Section 7.1 shall not affect (i) any
Liability on the part of any Party for Fraud or willful and material breach or (ii) any Person’s Liability under any Subscription
Agreement, PIPE Subscription Agreement, the Confidentiality Agreement, any Transaction Support Agreement or the Sponsor Support Agreement
to which he, she or it is a party to the extent arising from a claim against such Person by another Person party to such agreement on
the terms and subject to the conditions thereunder.
Section 7.3 Termination
Fee.
(a) In
the event that this Agreement is terminated by the Company pursuant to Section 7.1(h), then
the Company, shall pay, or cause to be paid, to the SPAC, within thirty (30) days of such termination, an amount equal to the Termination
Fee by wire transfer of immediately available funds to an account or accounts designated in writing by the SPAC.
(b) In
the event that this Agreement is terminated for any reason other than by the Company pursuant to Section 7.1(c) or
by SPAC or by the Company, as the case may be, pursuant to Section 7.1(f) or Section 7.1(g), the Company
shall pay, or cause to be paid, to the SPAC, an amount equal to five percent (5%) of any SPAC Introduced Financing Amount from any source
during the period beginning October 16, 2024 and extending through the twelve (12) months immediately following the effective date
of such termination (the “Post-Termination Fee”). The Company shall remit the Post-Termination Fee to SPAC within
thirty (30) days of receiving any such funds during this period. This obligation shall survive the termination of this Agreement and
shall be binding upon the Parties.
(c) In
the event that this Agreement is terminated by the Company pursuant to Section 7.1(c), then the SPAC, shall pay, or cause
to be paid, to the Company, within thirty (30) days of such termination, an amount equal to the Termination Fee by wire transfer of immediately
available funds to an account or accounts designated in writing by the Company.
(d) The
Parties acknowledge and agree that the provisions for payment of the Termination Fee are an integral part of the Transactions and are
included herein in order to induce the Parties to enter into this Agreement. The Parties acknowledge and agree that (i) in no event
shall the party terminating this Agreement (the “Terminating Party”) be required to pay the Termination Fee on more
than one occasion, whether or not the Termination Fee may be payable upon the occurrence of different events, and (ii) notwithstanding
that SPAC or the Company, as applicable, may have the right to simultaneously seek specific performance of the Terminating Party’s
obligation to consummate the Closing, on the one hand, and the Termination Fee, on the other hand, it may only obtain either specific
performance of the Terminating Party’s obligation to consummate the Closing, on the one hand, or the Termination Fee, on the other
hand. Notwithstanding anything to the contrary in this Agreement (subject to such Party’s right to seek specific performance pursuant
to this Agreement, as and to the extent permitted thereunder), if SPAC or the Company, as applicable, is entitled to receive the Termination
Fee pursuant to this Section 7.3, such Party’s right to receive payment of the Termination Fee shall be the sole and
exclusive remedy of such Party and its Affiliates against the Terminating Party or any of the Terminating Party’s Non-Party Affiliates
for any breach of this Agreement (including any failure to consummate the Closing in accordance herewith) or otherwise under this Agreement
or arising out of or related to the Transactions, and upon payment of the Termination Fee, the Terminating Party and its Affiliates shall
have no any liability or obligation of any kind or nature relating to or arising out of this Agreement or the transactions contemplated
hereby, in each case, whether based on contract, tort or strict liability, by the enforcement of any assessment, by any legal or equitable
proceeding, by virtue of any statute, regulation or applicable Law or otherwise. SPAC and the Company further agree that, in the event
of termination of this Agreement, the maximum aggregate liability of the Terminating Party under this Agreement shall be limited to an
amount equal to the Termination Fee and in no event shall seek to recover, or be entitled to recover, from the Terminating Party or its
Affiliates any monetary damages of any kind, character or description in excess of such amount.
Article VIII.
MISCELLANEOUS
Section 8.1 Non-Survival.
The representations and warranties of SPAC and the Company contained in this Agreement or any certificate or instrument delivered pursuant
to this Agreement shall terminate at the Acquisition Merger Effective Time, and only the covenants that by their terms survive the Acquisition
Merger Effective Time and this ARTICLE VIII shall survive the Acquisition Merger Effective Time, such that no claim for breach
of any such representation, warranty, agreement or covenant, detrimental reliance or other right or remedy (whether in contract, in tort,
at law, in equity or otherwise) may be brought with respect thereto after the Acquisition Merger Effective Time against any Party, any
Company Non-Party Affiliate or any SPAC Non-Party Affiliate. Each covenant and agreement contained herein that, by its terms, expressly
contemplates performance after the Acquisition Merger Effective Time shall so survive the Acquisition Merger Effective Time in accordance
with its terms, and each covenant and agreement contained in any Ancillary Document that, by its terms, expressly contemplates performance
after the Acquisition Merger Effective Time shall so survive the Acquisition Merger Effective Time in accordance with its terms and any
other provision in any Ancillary Document that expressly survives the Acquisition Merger Effective Time shall so survive the Acquisition
Merger Effective Time in accordance with the terms of such Ancillary Document.
Section 8.2 Entire
Agreement; Assignment. This Agreement (together with the Ancillary Documents), the Confidentiality Agreement, and any other documents,
instruments and certificates explicitly referred to herein, constitute the entire agreement among the Parties with respect to the subject
matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the Parties or any of their
respective Subsidiaries with respect to the subject matter hereof. No representations, warranties, covenants, understandings, agreements,
oral or otherwise, with respect to the subject matter contemplated by this Agreement exist between the Parties, except as expressly set
forth or referenced in this Agreement and the Confidentiality Agreement. No Party shall assign, delegate or otherwise transfer this Agreement
or any part hereof without the prior written consent of the other Parties (including the Sponsor after the Closing). Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns.
Any attempted assignment in violation of the terms of this Section 8.2 shall be null and void, ab initio.
Section 8.3 Amendment.
This Agreement may be amended or modified in whole or in part, only by a duly authorized agreement in writing executed by each of the
Parties in the same manner as this Agreement and which makes reference to this Agreement. This Agreement may not be modified or amended
except as provided in the immediately preceding sentence and any purported amendment by any Party or Parties effected in a manner which
does not comply with this Section 8.3 shall be null and void, ab initio.
Section 8.4 Notices.
All notices, requests, claims, demands and other communications among the Parties shall be in writing and shall be deemed to have been
duly given (i) when delivered in person, (ii) when delivered after posting in the United States mail having been sent registered
or certified mail return receipt requested, postage prepaid, (iii) when delivered by FedEx or other nationally recognized overnight
delivery service or (iv) when e-mailed (having obtained electronic delivery confirmation thereof (i.e., an electronic record
of the sender that the e-mail was sent to the intended recipient thereof without an “error” or similar message that such
e-mail was not received by such intended recipient)) during normal business hours (and otherwise as of the immediately following Business
Day), addressed as follows:
(a) If
to SPAC, to:
Israel Acquisitions Corp
12600 Hill Country Blvd, Building R, Suite 275
Bee Cave, Texas 78738
Attention: Ziv Elul
Email: ziv@israelspac.com
with a copy (which shall not constitute notice) to:
Reed Smith LLP
2850 N. Harwood Street, Suite 1500
Dallas, Texas 75201
Attention: Lynwood Reinhardt
E-mail: lreinhardt@reedsmith.com
(b) If
to the Company, to:
Gadfin Ltd.,
Itzhak Modai 2 St., Rehovot, Israel
Attention: Eyal Regev, CEO
Email: eyal@gadfin.com
with a copy (which shall not constitute notice) to:
Herzog
Fox & Neeman.
Herzog Tower, 6 Yitzhak Sadeh St.
Tel Aviv 6777506, Israel
Attention:
Aviram Hazak; Ohad Graub
Email:
hazaka@herzoglaw.co.il; graubo@herzoglaw.co.il
or to such other address as the Party to whom
notice is given may have previously furnished to the others in writing in the manner set forth above.
Section 8.5 Governing
Law. This Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out
of or relate to this Agreement, or the negotiation, execution or performance of this Agreement or the Transactions, or in any way connected
with or related or incidental to the dealings of the Parties in respect of this Agreement or any of the Transactions (including any claim
or cause of action based upon, arising out of or related to any representation or warranty made in or connection with this Agreement
or as an inducement to enter into this Agreement), shall be governed by, and construed in accordance with, the Laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the Law of any jurisdiction other than the State of Delaware; provided that provisions related
to the matters set forth in ARTICLE II that relate to the effectuation of the Merger, and all other provisions of this Agreement
that are expressly or otherwise required to be governed by the Laws of the State of Israel shall be exclusively governed by the Laws
of the State of Israel; and provided, further, that provisions related to the matters set forth in ARTICLE II
that relate to the effectuation of the Merger shall be exclusively governed by the Laws of the Cayman Islands.
Section 8.6 Fees
and Expenses.
(a) Except
as otherwise set forth in this Agreement, all fees and expenses incurred in connection with this Agreement, the Ancillary Documents and
the Transactions, including the fees and disbursements of counsel, financial advisors and accountants, shall be paid by the Party incurring
such fees or expenses; provided that, for the avoidance of doubt, (a) if this Agreement is terminated in accordance with
its terms, the Company shall pay, or cause to be paid, all Unpaid Company Expenses and SPAC shall pay, or cause to be paid, all Unpaid
SPAC Expenses and (b) if the Closing occurs, then immediately upon the Closing, NewPubco or the SPAC Surviving Company, as applicable,
shall pay, or cause to be paid, all Unpaid Company Expenses and all Unpaid SPAC Expenses. If, immediately prior to or at the Closing,
there is a Transaction Expenses Cap Excess, SPAC shall be required to obtain the prior written consent of the Company to incur such Transaction
Expenses Cap Excess; provided that, in the event of incurrence of any Transaction Expenses Cap Excess by SPAC without the prior
written consent of the Company, at the election of the Company in its sole discretion, SPAC shall either: (i) cause Sponsor to irrevocably
transfer to such Persons entitled to the respective Transaction Expenses Cap Excess such number of SPAC Shares or SPAC Warrants that
will satisfy and settle such Transaction Expenses Cap Excess in full, reasonably acceptable to the Company, and shall cause Sponsor to,
take any other action reasonably requested by the Company to evidence such transfer and settlement, provided, that no Sponsor
Shares used for this purpose will be accounted as part of a Sponsor Forfeiture pursuant to Section 2.6(h); or
(ii) cause Sponsor to pay directly to NewPubco any such Transaction Expenses Cap Excess not approved by prior written consent of
the Company such that only Sponsor bears such Transaction Expenses Cap Excess.
(b) The
Parties agree that each Party will use best efforts to reduce any deferred underwriting fees currently owed and outstanding by the SPAC
and will negotiate in good faith towards such reduction. For the avoidance of doubt, any expenses and fees of Sponsor shall be the sole
obligation of the Sponsor.
(c) At
least five (5) Business Days prior to the Closing Date, SPAC shall cause the Chief Financial Officer of SPAC (solely in his capacity
as such) to deliver to the Company a certificate certified by such Chief Financial Officer (solely in his capacity as such) setting forth
SPAC’s good faith estimate of the SPAC Expenses, including reasonable supporting materials and invoices for the amount of each
item included in the SPAC Expenses.
(d) At
least five (5) Business Days prior to the Closing Date, the Company shall cause the Chief Financial Officer of the Company (solely
in his capacity as such) to deliver to SPAC a certificate certified by such Chief Financial Officer (solely in his capacity as such)
setting forth the Company’s good faith estimate of the Company Expenses, including reasonable supporting materials and invoices
for the amount of each item included in the Company Expenses.
Section 8.7 Construction;
Interpretation. The term “this Agreement” means this Business Combination Agreement together with the Schedules and Exhibits
hereto, as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The headings
set forth in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.
No Party, nor their respective counsels, shall be deemed the drafter of this Agreement for purposes of construing the provisions hereof,
and all provisions of this Agreement shall be construed according to their fair meaning and not strictly for or against any Party. Unless
otherwise indicated to the contrary herein by the context or use thereof: (a) the words, “herein,” “hereto,”
“hereof” and words of similar import refer to this Agreement as a whole, including the Schedules and Exhibits, and not to
any particular section, subsection, paragraph, subparagraph or clause set forth in this Agreement; (b) masculine gender shall also
include the feminine and neutral genders, and vice versa; (c) words importing the singular shall also include the plural, and vice
versa; (d) the words “include,” “includes” or “including” shall be deemed to be followed by
the words “without limitation”; (e) references to “$” or “dollar” or “US$” shall
be references to United States dollars; (f) the word “or” is disjunctive but not necessarily exclusive; (g) the
words “writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words
(including electronic media) in a visible form; (h) the word “day” means calendar day unless Business Day is expressly
specified; (i) reference from or through any date mean from and including or through and including such date, respectively, (j) the
word “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and such
phrase shall not mean simply “if”; (k) all references to Articles, Sections, Exhibits or Schedules are to Articles,
Sections, Exhibits and Schedules of this Agreement; (l) the words “provided”, “delivered” or “made
available” or words of similar import (regardless of whether capitalized or not) shall mean, when used with reference to documents
or other materials required to be provided or made available to SPAC, any documents or other materials posted to the electronic data
room located at datasite.com under the project name “ISRL GADFIN” as of 5:00 p.m., Eastern Time, at least one (1) Business
Day prior to the date of this Agreement; (m) all references to any Law will be to such Law as amended, supplemented or otherwise
modified or re-enacted from time to time; and (n) all references to any Contract are to that Contract as amended or modified from
time to time in accordance with the terms thereof (subject to any restrictions on amendments or modifications set forth in this Agreement).
If any action under this Agreement is required to be done or taken on a day that is not a Business Day, then such action shall be required
to be done or taken not on such day but on the first succeeding Business Day thereafter.
Section 8.8 Exhibits
and Schedules. All Exhibits and Schedules, or documents expressly incorporated into this Agreement, are hereby incorporated into
this Agreement and are hereby made a part hereof as if set out in full in this Agreement. The Schedules shall be arranged in sections
and subsections corresponding to the numbered and lettered Sections and subsections set forth in this Agreement. Any item disclosed in
the Company Disclosure Schedules or in the SPAC Disclosure Schedules corresponding to any Section or subsection of ARTICLE III
(in the case of the Company Disclosure Schedules) or ARTICLE IV (in the case of the SPAC Disclosure Schedules) shall
be deemed to have been disclosed with respect to every other section and subsection of ARTICLE III (in the case of the Company
Disclosure Schedules) or ARTICLE IV (in the case of the SPAC Disclosure Schedules), as applicable, where the relevance of
such disclosure to such other Section or subsection is reasonably apparent on the face of the disclosure. Certain information set
forth in the Company Disclosure Schedules and the SPAC Disclosure Schedules is included solely for informational purposes and may not
be required to be disclosed pursuant to this Agreement. The disclosure of any information shall not be deemed to constitute an acknowledgment
that such information is required to be disclosed under this Agreement, nor shall such information be deemed to establish a standard
of materiality.
Section 8.9 Parties
in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party and its respective successors and
permitted assigns and, except as provided in Section 5.11 and the two subsequent sentences of this Section 8.9,
nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies
of any nature whatsoever under or by reason of this Agreement. The Sponsor shall be an express third-party beneficiary of Section 8.2,
Section 8.13 and this Section 8.9 (to the extent related to the foregoing). Each of the Non-Party Affiliates
shall be an express third-party beneficiary of Section 8.12 and this Section 8.9 (to the extent related to the
foregoing).
Section 8.10 Severability.
Whenever possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable
Law, but if any term or other provision of this Agreement is held to be invalid, illegal or unenforceable under applicable Law, all other
provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision of this
Agreement is invalid, illegal or unenforceable under applicable Law, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent possible.
Section 8.11 Counterparts;
Electronic Signatures. This Agreement and each Ancillary Document (including any of the closing deliverables contemplated hereby)
may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and
the same agreement. Delivery of an executed counterpart of a signature page to this Agreement or any Ancillary Document (including
any of the closing deliverables contemplated hereby) by electronic means, including DocuSign, Adobe Sign or other similar e-signature
services, e-mail or scanned pages shall be effective as delivery of a manually executed counterpart to this Agreement or any such
Ancillary Document.
Section 8.12 No
Recourse. Except for claims pursuant to any Ancillary Document by any party(ies) thereto against any Company Non-Party Affiliate
or any SPAC Non-Party Affiliate (each, a “Non-Party Affiliate”), and then solely with respect to claims against the
Non-Party Affiliates that are party to the applicable Ancillary Document, each Party agrees on behalf of itself and on behalf of the
Company Non-Party Affiliates, in the case of the Company, and the SPAC Non-Party Affiliates, in the case of SPAC, that (a) this
Agreement may only be enforced against, and any action for breach of this Agreement may only be made against, the Parties, and no claims
of any nature whatsoever arising under or relating to this Agreement, the negotiation hereof or its subject matter, or the transactions
contemplated hereby shall be asserted against any Non-Party Affiliate, and (b) none of the Non-Party Affiliates shall have any Liability
arising out of or relating to this Agreement, the negotiation hereof or its subject matter, or the transactions contemplated hereby,
including with respect to any claim (whether in tort, contract or otherwise) for breach of this Agreement or in respect of any written
or oral representations made or alleged to be made in connection herewith, as expressly provided herein, or for any actual or alleged
inaccuracies, misstatements or omissions with respect to any information or materials of any kind furnished by the Company, SPAC or any
Non-Party Affiliate concerning the Company, SPAC, this Agreement or the transactions contemplated hereby.
Section 8.13 Extension;
Waiver. The Company, prior to the Closing, and the Company and the Sponsor, after the Closing, may (a) extend the time for the
performance of any of the obligations or other acts of SPAC set forth herein, (b) waive any inaccuracies in the representations
and warranties of SPAC set forth herein or (c) waive compliance by SPAC with any of the agreements or conditions set forth herein.
SPAC may (i) extend the time for the performance of any of the obligations or other acts of the Company, set forth herein, (ii) waive
any inaccuracies in the representations and warranties of the Company set forth herein or (iii) waive compliance by the Company
with any of the agreements or conditions set forth herein. Any agreement on the part of any such Party to any such extension or waiver
shall be valid only if set forth in a written instrument signed on behalf of such Party. Any waiver of any term or condition shall not
be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term
or condition of this Agreement. The failure of any Party to assert any of its rights hereunder shall not constitute a waiver of such
rights.
Section 8.14 Waiver
of Jury Trial. THE PARTIES EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY PROCEEDING,
CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR UNDER ANY ANCILLARY DOCUMENT OR (II) IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY ANCILLARY DOCUMENT OR ANY
OF THE TRANSACTIONS OR ANY FINANCING IN CONNECTION WITH THE TRANSACTIONS, IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. THE PARTIES EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH PROCEEDING, CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES MAY FILE AN ORIGINAL COUNTERPART OF
A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL
BY JURY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH
SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND
(D) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 8.14.
Section 8.15 Submission
to Jurisdiction. Each of the Parties irrevocably and unconditionally submits to the exclusive jurisdiction of the United States District
Court for the Southern District of Delaware for the purposes of any Proceeding, claim, demand, action or cause of action (a) arising
under this Agreement or under any Ancillary Document or (b) in any way connected with or related or incidental to the dealings of
the Parties in respect of this Agreement or any Ancillary Document or any of the Transactions, and irrevocably and unconditionally waives
any objection to the laying of venue of any such Proceeding in any such court, and further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such Proceeding has been brought in an inconvenient forum. Each Party hereby
irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any
Proceeding claim, demand, action or cause of action against such Party (i) arising under this Agreement or under any Ancillary Document
or (ii) in any way connected with or related or incidental to the dealings of the Parties in respect of this Agreement or any Ancillary
Document or any of the Transactions, (A) any claim that such Party is not personally subject to the jurisdiction of the courts as
described in this Section 8.15 for any reason, (B) that such Party or such Party’s property is exempt or immune
from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment
prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (C) that (x) the Proceeding,
claim, demand, action or cause of action in any such court is brought against such Party in an inconvenient forum, (y) the venue
of such Proceeding, claim, demand, action or cause of action against such Party is improper or (z) this Agreement, or the subject
matter hereof, may not be enforced against such Party in or by such courts. Each Party agrees that service of any process, summons, notice
or document by registered mail to such party’s respective address set forth in Section 8.4 shall be effective service
of process for any such Proceeding, claim, demand, action or cause of action.
Section 8.16 Remedies.
Except as otherwise expressly provided herein, any and all remedies provided herein will be deemed cumulative with and not exclusive
of any other remedy conferred hereby, or by law or equity upon such Party, and the exercise by a Party of any one remedy will not preclude
the exercise of any other remedy. The Parties agree that irreparable damage for which monetary damages, even if available, would not
be an adequate remedy, would occur in the event that the Parties do not perform their obligations under the provisions of this Agreement
(including failing to take such actions as are required of them hereunder to consummate this Agreement) in accordance with its specified
terms or otherwise breach such provisions. The Parties acknowledge and agree that (i) the Parties may be entitled to an injunction,
specific performance, or other equitable relief, to prevent breaches of this Agreement and to enforce specifically the terms and provisions
hereof and thereof, without proof of damages and without posting a bond, prior to the valid termination of this Agreement in accordance
with Section 7.1, this being in addition to any other remedy to which they are entitled under this Agreement, and (ii) the
right of specific enforcement is an integral part of the transactions contemplated by this Agreement and without that right, none of
the Parties would have entered into this Agreement. Each Party agrees that it will not oppose the granting of specific performance and
other equitable relief on the basis that the other Parties have an adequate remedy at law or that an award of specific performance is
not an appropriate remedy for any reason at law or equity. The Parties acknowledge and agree that any Party seeking an injunction to
prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in accordance with this Section 8.16
shall not be required to provide any bond or other security in connection with any such injunction.
Section 8.17 Arm’s
Length Bargaining; No Presumption Against Drafter. This Agreement has been negotiated at arm’s-length by parties of equal bargaining
strength, each represented by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary
or other special relationship between the parties, and no such relationship otherwise exists. No presumption in favor of or against any
party in the construction or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have
drafted this Agreement or such provision.
Section 8.18 Trust
Account Waiver. Reference is made to the final prospectus of SPAC, filed with the SEC (File No. 333-263658) on January 17,
2023 (the “SPAC Prospectus”). The Company acknowledges, agrees and understands that SPAC has established a trust account
(the “Trust Account”) containing the proceeds of its initial public offering (the “IPO”) and from
certain private placements occurring simultaneously with the IPO (including interest accrued from time to time thereon) for the benefit
of SPAC’s public shareholders (including overallotment shares acquired by SPAC’s underwriters, the “Public Shareholders”),
and that, except as otherwise described in the SPAC Prospectus, SPAC may disburse monies from the Trust Account only in the express circumstances
described in the SPAC Prospectus. For and in consideration of SPAC entering into this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company hereby agrees on behalf of itself, its shareholders, and its
Affiliates that, none of the Company, its shareholders nor any of its Affiliates does now or shall at any time hereafter have any right,
title, interest or claim of any kind in or to any monies in the Trust Account or distributions therefrom, or make any claim against the
Trust Account (including any distributions therefrom), regardless of whether such claim arises as a result of, in connection with or
relating in any way to, this Agreement or any proposed or actual business relationship between SPAC or any of its Representatives, on
the one hand, and the Company or any of its Representatives or Affiliates, on the other hand, or any other matter, and regardless of
whether such claim arises based on contract, tort, equity or any other theory of legal liability (any and all such claims are collectively
referred to hereafter as the “Released Claims”). The Company on behalf of itself, its shareholders and its Affiliates
hereby irrevocably waives any Released Claims that it or any of its Representatives or Affiliates may have against the Trust Account
(including any distributions therefrom) now or in the future as a result of, or arising out of, any negotiations, Contracts with SPAC
or its Representatives and will not seek recourse against the Trust Account (including any distributions therefrom) for any reason whatsoever
(including for an alleged breach of any agreement with SPAC or its Affiliates). Notwithstanding the foregoing, nothing contained in this
Section 8.18 shall serve to limit or prohibit (x) the Company’s right to pursue a claim against SPAC for breach
for legal relief against assets held outside the Trust Account (other than distributions therefrom to Public Shareholders), for specific
performance or other non-monetary relief, or (y) any claims that the Company may have in the future against SPAC’s assets
or funds that are not held in the Trust Account (including any funds that have been released from the Trust Account (excluding distributions
therefrom directly to Public Shareholders) and any assets that have been purchased or acquired with any such funds).
* * * * * *
IN
WITNESS WHEREOF, each of the Parties has caused this Business Combination Agreement to be duly executed on its behalf as of
the day and year first above written.
|
ISRAEL ACQUISITIONS CORP |
|
|
|
|
|
By: |
/s/ Ziv
Elul |
|
Name: Ziv Elul |
|
Title: Chief Executive Officer |
IN
WITNESS WHEREOF, each of the Parties has caused this Business Combination Agreement to be duly executed on its behalf as of
the day and year first above written.
|
Gadfin LTD. |
|
|
|
By: |
/s/ Eyal Regev |
|
Name: Eyal Regev |
|
Title: CEO & Director |
Exhibit A
Sponsor Support Agreement
[Omitted]
Exhibit B
Transaction Support Agreement
[Omitted]
Annex I
Price Adjustment Earnout Merger Consideration
This Annex I sets
forth the terms for the issuance of the $12.50 Price Adjustment Earnout Shares and $15.00 Price Adjustment Earnout Shares, as applicable.
Terms used but not defined in this Annex I shall have the meanings ascribed to such terms in the other parts of this
Agreement to which this Annex I is a part. This Annex I shall be subject to Section 2.11 in all respects.
1. $12.50
Price Adjustment Share Price Milestone.
| a. | If the closing share price of the NewPubco
Ordinary Shares equals or exceeds $12.50 per share for any 20 trading days within any consecutive
30-trading day period that occurs after the Closing Date and on or prior to the 5-year anniversary
of the Closing Date (the first occurrence of the foregoing is referred to herein as the “$12.50 Price
Adjustment Share Price Milestone”), then each of the holders of Company Shares,
immediately prior to the Acquisition Merger Effective Time shall be entitled to receive from
the Exchange Agent a number of Price Adjustment Earnout Shares equal to such holder’s
Earnout Pro Rata Portion of 600,000 Price Adjustment Earnout Shares (such number of shares
being referred to as the “$12.50 Price Adjustment Earnout Shares”). |
2. $15.00
Price Adjustment Share Price Milestone.
| a. | If the closing share price of the NewPubco
Ordinary Shares equals or exceeds $15.00 per share for any 20 trading days within any consecutive
30-trading day period that occurs after the Closing Date and on or prior to the 5-year anniversary
of the Closing Date (the first occurrence of the foregoing is referred to herein as the “$15.00
Price Adjustment Share Price Milestone”), then each of the holders of such Company
Shares shall be entitled to receive from the Exchange Agent an additional number of Price
Adjustment Earnout Shares equal to such holder’s Earnout Pro Rata Portion of 600,000
Price Adjustment Earnout Shares (such number of shares being referred to as the “$15.00
Price Adjustment Earnout Shares”). |
3. If,
prior to the 5-year anniversary of the Closing Date, the $12.50 Share Price Milestone and/or the $15.00 Share Price Milestone have not
occurred, all of the Price Adjustment Earnout Shares in respect of the $12.50 Share Price Milestone and/or the $15.00 Share Price
Milestone, as applicable, shall be cancelled.
4. Subject
to the limitations contemplated herein, each Person entitled to receive Price Adjustment Earnout Shares when the applicable Milestones
are achieved pursuant to this Annex I shall have the right to receive dividends and/or distributions equivalents, and each Person who
holds Price Adjustment Earnout Shares that will vest upon the achievement of the applicable Milestones pursuant to this Annex I
shall have the right to receive dividends and/or distributions, made to the holders of NewPubco Ordinary Shares; provided, however, that
any dividends or other distributions or their equivalents payable with respect to Price Adjustment Earnout Shares or the right to receive
Price Adjustment Earnout Shares in respect of which the applicable Milestone has not yet been achieved shall be set aside by the NewPubco
and shall be paid to such Persons upon the achievement of the applicable Milestone and the issuance.
Annex II
Registration Rights Agreement Key Terms
1. Registration Rights:
| · | Shelf
Registration: NewPubco must file a shelf registration statement within 90 days of the
Closing Date and use commercially reasonable efforts to make it effective within 150 days. |
| · | Registrable
Securities: The Registration Statement shall include any NewPubco Ordinary Shares issued
to a Holder, including the Sponsor, pursuant to the terms of the BCA (including the NewPubco
Ordinary Shares issued or issuable upon the exercise of any other equity security issued
to a Holder pursuant to the terms of the BCA, including the Price Adjustment Earn Out Shares). |
| · | Form F-1
Registration Statement: The initial Registration Statement shall be on a shelf registration
statement on Form F-1 (or such other form of registration statement as is then available
to effect a registration for resale of such Registrable Securities), covering such Registrable
Securities, including any securities issuable upon exercise of existing warrants. |
| · | Form F-3
Shelf: NewPubco will replace the Form F-1 Shelf with a Form F-3 Shelf in due
course following becoming eligible. |
| · | Shelf
Underwritten Offering: Holders can request an underwritten offering of their securities,
provided the expected gross proceeds exceed $20,000,000. |
| · | Demand
Registration: Holders of a majority of Registrable Securities can demand registration,
limited to one registration for the Sponsor and two for other Holders. |
| · | Piggyback
Registration: Holders can include their securities in any registration initiated by NewPubco,
subject to certain customary conditions, limitations and exceptions. |
2. Lock-Up Provisions:
| · | Initial
Lock-Up: Six months from the Closing Date. |
| · | Phased
Release: After six months, 1/6th of the NewPubco Ordinary Shares will be released from
lock-up each month over the next six months. |
| · | Early
Release: If the share price equals or exceeds $15.00 per share for 40 trading days within
any 60-trading day period, the phased release can begin earlier. |
3. Exceptions to Lock-Up:
| · | Holders
shall be able to distribute Holder’s shares to underlying equity holders (either through
a liquidation or a distribution in kind), provided that such Registrable Securities
will still be subject to the Lock-Up period. |
| · | Transfers
to family members, trusts, or charitable organizations. |
| · | Transfers
by will or intestate succession. |
| · | Transfers
to affiliates or in connection with a Change in Control. |
4. Indemnification:
| · | NewPubco
will indemnify Holders against losses arising from any untrue statement or omission in the
registration statement, except for information provided by the Holders. |
| · | Holders
will indemnify NewPubco for information provided by them that leads to losses. |
5. Termination:
| · | The
agreement terminates when all Registrable Securities have been sold pursuant to a registration
statement. |
6. Governing Law:
| · | The
agreement is governed by the laws of New York. |
Exhibit 10.1
SPONSOR SUPPORT AGREEMENT
This SPONSOR SUPPORT AGREEMENT
(this “Agreement”), dated as of January 26, 2025, by and among Israel Acquisitions Sponsor LLC, a Delaware limited
liability company (the “Sponsor”), Gadfin Ltd., a company organized under the laws of the State of Israel (the “Company”),
and Israel Acquisitions Corp, a Cayman Islands exempted company (“SPAC”). The Sponsor, the Company and SPAC are referred
to from time to time in this Agreement individually as a “Party” and collectively as the “Parties”.
WHEREAS, concurrently with
the execution of this Agreement, SPAC and the Company are entering into a Business Combination Agreement, dated as of the date hereof
(as amended, supplemented, restated or otherwise modified from time to time, the “BCA”; capitalized terms used but
not defined in this Agreement shall have the meanings ascribed to such terms in the BCA), pursuant to which, among other things, (A) a
company organized under the laws of the State of Israel and wholly owned by a trustee (“NewPubco”) to be formed; (B) a
company organized under the laws of the State of Israel and wholly owned, direct Subsidiary of NewPubco (“Merger Sub 1”)
to be formed; and (C) a Cayman Islands exempted company and wholly owned, direct Subsidiary of NewPubco (“Merger Sub 2”)
to be formed, (ii) Merger Sub 1 will be merged with and into the Company with Company as the surviving entity of such merger and
consequently becoming a wholly-owned subsidiary of NewPubco, and (ii) Merger Sub 2 will be merged with and into the SPAC, with the
SPAC as the surviving entity of such merger and consequently becoming a wholly-owned subsidiary of NewPubco, all in accordance with the
terms and conditions of the BCA (collectively, and together with the other transactions contemplated by the BCA, the “Transactions”);
WHEREAS, as of the date hereof,
the Sponsor is the holder of record and the “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act)
of 4,696,167 SPAC Class B Shares and 637,500 SPAC Class A Shares (collectively, the “Sponsor Shares”);
WHEREAS, the Sponsor is the
holder of record and the “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act) of 637,500 warrants
(each a “SPAC Warrant”) to purchase one (1) SPAC Class A Share per warrant at a price of $11.50 per whole
share (the SPAC Warrants, Sponsor Shares and any additional shares of the SPAC (or securities convertible into or exercisable or exchangeable
for shares of SPAC) in which the Sponsor has or acquires record or beneficial ownership after the date hereof, including by purchase,
as a result of a share dividend, share split, recapitalization, combination, reclassification, exchange or change of such shares, or upon
exercise or conversion of any securities, the “Subject Securities”); and
WHEREAS, as an inducement
to the Company to enter into the BCA and to consummate the Transactions, each of the Sponsor, SPAC and the Company desire to enter into
this Agreement.
NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, the receipt and sufficiency of which is hereby acknowledged,
and intending to be legally bound, each of the Sponsor, the Company and SPAC hereby agree as follows:
1. Agreement
to Vote. The Sponsor, by this Agreement, with respect to the Subject Securities, hereby agrees during the term of this Agreement:
(a) to vote (or cause to be voted), in person or by proxy, or execute and deliver a written consent (or cause a written consent to
be executed and delivered), at any meeting of the shareholders of SPAC, including the SPAC Shareholders Meeting, however called, or any
adjournment thereof, and in any action by written consent of the SPAC Shareholders, or in any other circumstance in which the vote, consent
or other approval of the shareholders of SPAC is sought (and appear at any such meeting, in person or by proxy, or otherwise cause all
of such holder’s Subject Securities to be counted as present thereat for purposes of establishing a quorum), all of the Subject
Securities held by the Sponsor at such time (i) in favor of the approval and adoption of the BCA and the approval of the Transactions,
including the Mergers, appointment of directors nominated or designated by the Company and the other Transaction Proposals and in favor
of any other matter reasonably necessary to the consummation of the Transactions, (ii) against any arrangement, merger, amalgamation,
consolidation, combination, sale of substantial assets, reorganization, recapitalization, dissolution, liquidation or winding up of or
by the SPAC (other than the Transactions), (iii) against any change in the business, management or SPAC Board other than as required
or permitted under the BCA and Ancillary Documents, (iv) against any action, agreement or transaction or proposal that would reasonably
be expected to result in a breach of any covenant, representation or warranty or any other obligation or agreement of SPAC under the BCA
or that would reasonably be expected to result in the failure of the Transactions from being consummated or that would impede, frustrate,
prevent or nullify any provision of this Agreement, the BCA or any Ancillary Document and (v) not form a group (as defined in Rule 13(d)(3) under
the Exchange Act) to vote against any directors nominated by the Company; (b) not to redeem, elect to redeem or tender or submit
any of its Subject Securities for redemption in connection with the BCA or the Transactions; (c) waive any applicable adjustment
to the conversion ratio set forth in the articles of association of SPAC or any other applicable anti-dilution or similar protections
with respect to the SPAC Class A Shares and SPAC Class B Share held by it immediately prior to Closing; (d) not to commit
or agree to take any action inconsistent with the foregoing; and (e) not to modify or amend any agreement, contract or arrangement
between or among Sponsor and any Affiliate of such Sponsor (other than SPAC or any of its subsidiaries), on the one hand, and SPAC or
any of SPAC’s subsidiaries, on the other hand, related to the Transactions.
2. Transfer
of Subject Securities. Subject to the earlier termination of this Agreement in accordance with Section 11,
Sponsor agrees that it shall not, except as otherwise contemplated by this Agreement or with the consent of the Company, directly or indirectly,
(a) sell, assign, transfer (including by operation of Law), gift, convey, Lien, pledge, dispose of or otherwise encumber any of the
Subject Securities or grant any security interest in, or otherwise agree to do any of the foregoing (any of the foregoing, a “Transfer”),
except for a sale, assignment or transfer of the Subject Securities pursuant to the BCA or to another shareholder of SPAC and bound by
the terms and obligations hereof, (b) deposit any Subject Securities into a voting trust or enter into a voting agreement or arrangement
or grant any proxy or power of attorney with respect thereto that is inconsistent with this Agreement, or (c) enter into any contract,
option or other arrangement or undertaking with respect to the direct or indirect acquisition or sale, assignment, transfer (including
by operation of Law), or other disposition of any of the Subject Securities. Notwithstanding the foregoing, this Section 2
shall not prohibit a Transfer of Sponsor Shares by Sponsor to a permitted transferee pursuant to Section 5(c) of the Insider
Letter Agreement; provided, that such Transfer shall be permitted only if, prior to or in connection with such Transfer, such permitted
transferee agrees in writing, reasonably satisfactory in form and substance to the Company, to assume all of the obligations of Sponsor
hereunder and to be bound by the terms of this Agreement.
3. Maximum
Dilution. The Parties hereby agree that, when aggregated, the NewPubco Ordinary shares to be issued in consideration of, or exchange
for, (i) the Sponsor Shares and (ii) SPAC Shares, and PIPE Shares (together, the “Covered Shares”) shall
not exceed thirty percent (30%) of NewPubco’s issued and outstanding share capital upon Closing (the “Dilution Cap”).
In the event the Covered Shares exceed the Dilution Cap, the Sponsor shall irrevocably forfeit and surrender, immediately prior to Closing,
for no consideration, a number of Sponsor Shares, up to a maximum of 1,429,000 Sponsor Shares, in order to reduce the aggregate Covered
Shares below the Dilution Cap (the “Sponsor Forfeiture”). The Sponsor shall not hold less than a minimum of 4,000,000
Sponsor Shares following such Sponsor Forfeiture; provided however, that in the event the Covered Shares exceed the Dilution Cap
following the Sponsor Forfeiture, the Company, the SPAC, and the Sponsor mutually agree that the Parties shall work together in good faith
to negotiate an adjustment to the Dilution Cap.
4. Registration
Rights Agreement. At the Closing, the Sponsor and each transferee of Sponsor pursuant to Section 2 hereof, shall deliver
to SPAC a duly executed copy of that certain Registration Rights and Lock-Up Agreement, by and among NewPubco and the additional signatories
thereto, in substantially the form attached as Exhibit C to the BCA.
5. Waiver
of Redemption Rights. The Sponsor agrees during the term of this Agreement not to (a) demand that SPAC redeem the Subject Securities
held by the Sponsor and (b) otherwise participate in any such redemption by tendering or submitting any of the Subject Securities
held by the Sponsor for redemption.
6. Waiver
of Anti-Dilution Provision. The Sponsor, solely in connection with and only for the purpose of the Transactions, hereby irrevocably
and unconditionally waives, to the fullest extent permitted by Law, its rights to the treatment of its Sponsor Shares as set forth in
Section 24 of the SPAC Articles of Association, in connection with the Transactions, and agrees not to assert or perfect any rights
to adjustment or other anti-dilution protections with respect thereto.
7. Expenses.
If, immediately prior to or at the Closing, SPAC incurs a Transaction Expenses Cap Excess without obtaining the prior written consent
of the Company to incur such Transaction Expenses Cap Excess, then at the election of the Company in its sole discretion, Sponsor shall
either: (i) irrevocably transfer to such Persons entitled to the respective Transaction Expenses Cap Excess such number of SPAC Shares
or SPAC Warrants that will satisfy and settle such Transaction Expenses Cap Excess in full, reasonably acceptable to the Company and Sponsor
shall take any other action reasonably requested by the Company to evidence such transfer and settlement, provided that no Sponsor
Shares used for this purpose will be accounted as part of a Sponsor Forfeiture pursuant to Section 2.6(h) of the BCA and Section 3
hereunder; or (ii) directly and solely, fully cover and pay such Transaction Expenses Cap Excess to NewPubco, such that only Sponsor
bears such Transaction Expenses Cap Excess.
8. PIPE
Financing. Sponsor shall use its reasonable best efforts to raise the PIPE Financing, including, in each case, utilizing the Sponsor
Shares and the Sponsor’s SPAC Warrants in connection with such effort, which for the avoidance of doubt, may include transferring
or forfeiting such Sponsor Shares or SPAC Warrants.
9. Insider
Letter Agreement. Each of Sponsor and SPAC shall comply with, and fully perform all of its obligations, covenants, and agreements
set forth in the Insider Letter Agreement, dated as of January 12, 2023, among Sponsor, SPAC and the other parties thereto (the “Insider
Letter Agreement”). Without the prior written consent of the Company, each of Sponsor and SPAC hereby agree that from the date
hereof until the termination of this Agreement, it shall not amend, modify or vary the Insider Letter Agreement in any manner whatsoever.
10. Representations
and Warranties. The Sponsor hereby represents and warrants to the Company as follows:
(a) Organization;
Due Authorization. The Sponsor is duly organized, validly existing and in good standing under the laws of the jurisdiction in which
it is incorporated, formed, organized or constituted, and the execution, delivery and performance of this Agreement by the Sponsor and
the consummation by the Sponsor of the transactions contemplated hereby are within the Sponsor’s limited liability company powers
and have been duly authorized by all necessary limited liability company actions on the part of the Sponsor. This Agreement has been duly
authorized, executed and delivered by the Sponsor and, assuming due authorization, execution and delivery by the other Parties to this
Agreement, this Agreement constitutes a legally valid and binding obligation of the Sponsor, enforceable against the Sponsor in accordance
with the terms hereof (except as enforceability may be limited by bankruptcy laws, other similar laws affecting creditors’ rights
and general principles of equity affecting the availability of specific performance and other equitable remedies).
(b) Ownership.
The Sponsor is the record and beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of, and has good title to,
all of the Subject Securities, free and clear of any security interest and there exist no Liens or any other limitation or restriction
(including any restriction on the right to vote, sell or otherwise dispose of such Subject Securities (other than transfer restrictions
under the Securities Act)) affecting any such Subject Securities, other than any Liens pursuant to (i) this Agreement, (ii) the
SPAC Articles of Association (iii) the BCA or (iv) any applicable securities Laws. Except for the SPAC Warrants, the Sponsor
does not hold or own any rights to acquire (directly or indirectly) any equity securities of SPAC or any equity securities convertible
into, or which can be exchanged for, equity securities of SPAC. The Subject Securities are the only equity securities in SPAC owned of
record or beneficially by the Sponsor on the date of this Support Agreement, and none of the Subject Securities are subject to any proxy,
voting trust or other agreement or arrangement with respect to the voting of such Subject Securities, except as provided hereunder.
(c) No
Conflicts. The execution and delivery of this Agreement by the Sponsor does not, and the performance by the Sponsor of its obligations
hereunder will not, (i) conflict with or result in a violation of the organizational documents of the Sponsor or (ii) require
any consent or approval with respect to the Sponsor that has not been given or other action that has not been taken by any person (including
under any contract binding upon the Sponsor or the Subject Securities), in each case to the extent such consent, approval or other action
would prevent, enjoin or materially delay the performance by the Sponsor of its obligations under this Agreement.
(d) Litigation.
There are no Proceedings pending against the Sponsor or, to the knowledge of the Sponsor, threatened against the Sponsor before (or, in
the case of threatened legal proceedings, that would be before) any Governmental Entity, which in any manner challenges or seeks to prevent,
enjoin or materially delay the performance by the Sponsor of its obligations under this Agreement.
(e) Brokerage
Fees. Except as described in Section 4.4 of the SPAC Disclosure Schedules, no broker, finder, investment banker or other
Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the BCA based upon arrangements made
by the Sponsor, for which SPAC or any of its Affiliates may become liable.
(f) Affiliate
Arrangements. Except as set forth on Schedule II attached hereto, neither the Sponsor nor any of its Affiliates, to the knowledge
of the Sponsor, any Person in which the Sponsor has a direct or indirect legal, contractual or beneficial ownership of 5% or greater is
party to, or has any rights with respect to or arising from, any Contract with SPAC or its Subsidiaries.
(g) Acknowledgment.
The Sponsor understands and acknowledges that each of the SPAC and Company is entering into the BCA in reliance upon the Sponsor’s
execution and delivery of this Agreement. The Sponsor has had the opportunity to read the BCA and this Agreement and has had the opportunity
to consult with its tax and legal advisors.
11. Termination.
This Agreement and the obligations of the Sponsor under this Agreement shall automatically terminate upon the earlier of: (a) the
Closing and (b) the termination of the BCA in accordance with its terms. Upon termination of this Agreement, no Party shall have
any further obligations or liabilities under this Agreement; provided that (i) nothing in this Section 11 shall
relieve any Party from liability for fraud or willful breach of this Agreement occurring prior to its termination and (ii) the provisions
of this Section 11 and Section 13 (other than Section 13(i)) shall survive any termination
of this Agreement.
12. No
Solicitation. Section 5.6(i) and (j) of the BCA shall apply mutatis mutandis to Sponsor.
13. Miscellaneous.
(a) All
notices, requests, claims, demands and other communications among the Parties shall be in writing and shall be deemed to have been duly
given (i) when delivered in person, (ii) when delivered after posting in the United States mail having been sent registered
or certified mail return receipt requested, postage prepaid, (iii) when delivered by FedEx or other nationally recognized overnight
delivery service or (iv) when e-mailed (having obtained electronic delivery confirmation thereof (i.e., an electronic record
of the sender that the e-mail was sent to the intended recipient thereof without an “error” or similar message that such e-mail
was not received by such intended recipient)) during normal business hours (and otherwise as of the immediately following Business Day),
addressed as follows:
If to the Sponsor, to:
Israel Acquisitions Sponsor LLC
12600 Hill Country Blvd, Building R, Suite 275
Bee Cave, Texas 78738
Attention: Alex Greystoke
Email: alex@israelspac.com
with a copy (which shall not constitute
notice) to:
Reed Smith LLP
2850 N. Harwood Street, Suite 1500
Dallas, Texas 75201
Attention: Lynwood Reinhardt
E-mail: lreinhardt@reedsmith.com
If to SPAC, to:
Israel Acquisitions Corp
12600 Hill Country Blvd, Building R, Suite 275
Bee Cave, Texas 78738
Attention: Ziv Elul and Sharon Barzik Cohen
Email: Ziv@israelspac.com; Sharon@israelspac.com
with a copy (which shall not constitute
notice) to:
Reed Smith LLP
2850 N. Harwood Street, Suite 1500
Dallas, Texas 75201
Attention: Lynwood Reinhardt
E-mail: lreinhardt@reedsmith.com
If to the Company,
to:
Gadfin Ltd.,
Itzhak Modai 2 St., Rehovot, Israel
Attention: Eyal Regev, CEO
Email: eyal@gadfin.com
with a copy (which shall not constitute notice) to:
Herzog Fox & Neeman.
Herzog Tower, 6 Yitzhak Sadeh St.
Tel Aviv 6777506, Israel
Attention: Aviram Hazak
Email: HazakA@herzoglaw.co.il
(b) Whenever
possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable Law, but
if any term or other provision of this Agreement is held to be invalid, illegal or unenforceable under applicable Law, all other provisions
of this Agreement shall remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision of this Agreement
is invalid, illegal or unenforceable under applicable Law, the Parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby
are consummated as originally contemplated to the greatest extent possible.
(c) This
Agreement (together with the BCA and the other agreements referenced herein and therein) constitutes the entire agreement among the Parties
with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, among the Parties,
or any of them, with respect to the subject matter hereof.
(d) This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided,
however, that no Party may assign, delegate or otherwise transfer any of its rights or obligations pursuant to this Agreement without
the prior written consent of the other Parties. Any attempted assignment of this Agreement not in accordance with the terms of this Section 13(d) shall
be void ab initio.
(e) The
Parties agree that irreparable damage, for which monetary damages (even if available) would not be an adequate remedy, shall occur in
the event that the Parties do not perform the provisions of this Agreement (including failing to take such actions as are required of
them hereunder to consummate the Transactions) in accordance with its specified terms or otherwise breach such provisions. Accordingly,
the Parties acknowledge and agree that (i) the Parties shall be entitled to an injunction, specific performance or other equitable
relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof (which, for the avoidance of
doubt, includes the Parties’ obligation to consummate the Merger), in addition to any other remedy to which they are entitled at
Law or in equity and (ii) the right to specific enforcement is an integral part of the Transactions and without that right, none
of the Parties would have entered into this Agreement. Each of the Parties agrees that it shall not oppose the granting of an injunction,
specific performance and/or other equitable relief on any basis, including the basis that any other Party has an adequate remedy at Law
or that any award of an injunction, specific performance and/or other equitable relief is not an appropriate remedy for any reason at
Law or in equity. Any Party seeking: (A) an injunction or injunctions to prevent breaches of this Agreement; (B) to enforce
specifically the terms and provisions of this Agreement; and/or (C) other equitable relief, shall not be required to show proof of
actual damages or to provide any bond or other security in connection with any such remedy.
(f) This
Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to
this Agreement, or the negotiation, execution or performance of this Agreement or the transactions contemplated hereby, or in any way
connected with or related or incidental to the dealings of the Parties in respect of this Agreement or any of the transactions contemplated
hereby (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or connection
with this Agreement or as an inducement to enter into this Agreement), shall be governed by, and construed in accordance with, the Laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than the State of New York.
(g) Each
of the Parties irrevocably and unconditionally submits to the exclusive jurisdiction of the United States District Court for the Southern
District of New York for the purposes of any Proceeding, claim, demand, action or cause of action (i) arising under this Agreement
or (ii) in any way connected with or related or incidental to the dealings of the Parties in respect of this Agreement or the transactions
contemplated hereby, and irrevocably and unconditionally waives any objection to the laying of venue of any such Proceeding in any such
court, and further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Proceeding
has been brought in an inconvenient forum. Each Party hereby irrevocably and unconditionally waives, and agrees not to assert, by way
of motion or as a defense, counterclaim or otherwise, in any Proceeding claim, demand, action or cause of action against such Party (A) arising
under this Agreement or (B) in any way connected with or related or incidental to the dealings of the Parties in respect of this
Agreement or the transactions contemplated hereby, (x) any claim that such Party is not personally subject to the jurisdiction of
the courts as described in this Section 13(g) for any reason, (y) that such Party or such Party’s property
is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service
of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (z) that
(1) the Proceeding, claim, demand, action or cause of action in any such court is brought against such Party in an inconvenient forum,
(2) the venue of such Proceeding, claim, demand, action or cause of action against such Party is improper or (3) this Agreement,
or the subject matter hereof, may not be enforced against such Party in or by such courts. Each Party agrees that service of any process,
summons, notice or document by registered mail to such party’s respective address set forth in Section 13(a) shall
be effective service of process for any such Proceeding, claim, demand, action or cause of action.
(h) This
Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement (including any of the closing
deliverables contemplated hereby) by electronic means, including DocuSign, Adobe Sign or other similar e-signature services, e-mail or
scanned pages shall be effective as delivery of a manually executed counterpart to this Agreement.
(i) Each
Party shall use its reasonable best efforts to (i) execute and deliver or cause to be executed and delivered such additional documents
and instruments and (ii) take all such further action as may be reasonably necessary or desirable to consummate the transactions
contemplated by this Agreement.
(j) This
Agreement shall not be effective or binding upon any Party until after such time as the BCA is executed and delivered by SPAC and the
Company.
(k) This
Agreement may be amended in writing by the Parties hereto at any time prior to the Merger Effective Time. This Agreement may not be amended
except by an instrument in writing signed by each of the Parties hereto.
(l) The
Sponsor shall permit and hereby consents to and authorizes SPAC and the Company to publish and disclose (i) all documents and schedules
filed with the SEC, (ii) any press release or other disclosure document that SPAC or the Company reasonably determines to be necessary
in connection with the Merger or any of the other Transactions, (iii) a copy of this Agreement, (iv) the Sponsor’s identity,
(v) the number of the Subject Securities and (vi) the nature of such the Sponsor’s commitments and obligations under this
Agreement.
[Signature page follows]
IN WITNESS WHEREOF,
the Sponsor, the Company and SPAC have caused this Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.
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ISRAEL AcquisitionS Sponsor LLC |
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[Signature Page to Sponsor Support Agreement]
IN WITNESS WHEREOF,
the Sponsor, the Company and SPAC have caused this Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.
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ISRAEL ACQUISITIONS CORP |
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[Signature Page to Sponsor Support Agreement]
IN WITNESS WHEREOF,
the Sponsor, the Company and SPAC have caused this Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.
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GADFIN LTD. |
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[Signature Page to Sponsor Support Agreement]
Exhibit 10.2
TRANSACTION SUPPORT AGREEMENT
This TRANSACTION SUPPORT AGREEMENT
(this “Agreement”), dated as of January 26, 2025, is entered into by and among Gadfin Ltd., a company organized
under the laws of the State of Israel (the “Company”), Israel Acquisitions Corp, a Cayman Islands exempted company
(“SPAC”), and the Company Shareholder whose name appears on the signature page of this Agreement (the “Supporting
Company Shareholder”). The Company, SPAC and the Supporting Company Shareholder are referred to from time to time in this Agreement
individually as a “Party” and collectively as the “Parties”.
WHEREAS, concurrently with
the execution of this Agreement, SPAC and the Company are entering into a Business Combination Agreement, dated as of the date hereof
(as amended, supplemented, restated or otherwise modified from time to time, the “BCA”; capitalized terms used but
not defined in this Agreement shall have the meanings ascribed to such terms in the BCA), pursuant to which, among other things, (A) a
company organized under the laws of the State of Israel and wholly owned by a trustee (“NewPubco”) to be formed; (B) a
company organized under the laws of the State of Israel and wholly owned, direct Subsidiary of NewPubco (“Merger Sub 1”)
to be formed; and (C) a Cayman Islands exempted company and wholly owned, direct Subsidiary of NewPubco (“Merger Sub 2”)
to be formed, (ii) Merger Sub 1 will be merged with and into the Company with Company as the surviving entity of such merger and
consequently becoming a wholly-owned subsidiary of NewPubco, and (ii) Merger Sub 2 will be merged with and into the SPAC, with the
SPAC as the surviving entity of such merger and consequently becoming a wholly-owned subsidiary of NewPubco, all in accordance with the
terms and conditions of the BCA (collectively, and together with the other transactions contemplated by the BCA, the “Transactions”);
WHEREAS, as of the date hereof, each Supporting Company Shareholder
is the holder of record and the “beneficial owner” of such number of Company Shares as set forth opposite such Supporting
Company Shareholder’s name on Exhibit A hereto; and
WHEREAS, as an inducement
to SPAC to enter into the BCA and to consummate the Transactions, each of the Company, SPAC and each Supporting Company Shareholder desires
to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound, each of the Company, SPAC and each Supporting Company Shareholder hereby agrees as follows:
1. Voting
Obligations. Each Supporting Company Shareholder, with respect to its Company Shares (together with any other equity securities of
the Company that such Supporting Company Shareholder acquires record or beneficial ownership of after the date hereof, collectively, the
“Subject Company Equity Securities”), hereby agrees during the term of this Agreement, as follows: (a) to vote
(or cause to be voted), at any meeting of the equityholders of the Company, however called, or any adjournment thereof, and in any action
by written consent of the equityholders of the Company, or in any other circumstance in which the vote, consent or other approval of the
equityholders of the Company is sought (and appear at any such meeting, in person or by proxy, or otherwise cause all of such Supporting
Company Shareholder’s Subject Company Equity Securities to be counted as present thereat for purposes of establishing a quorum),
all of the Subject Company Equity Securities held by such Supporting Company Shareholder at such time (i) in favor of the Company
Shareholder Proposals and (ii) against any action, agreement or transaction or proposal that would reasonably be expected to result
in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company under the BCA or that would
reasonably be expected to result in the failure of the Transactions from being consummated and (b) not to commit or agree to take
any action inconsistent with the foregoing. Nothing in this Agreement shall prohibit any Supporting Company Shareholder from acting pursuant
to the Company Board Recommendation Change, in accordance with the BCA terms.
2. Registration
Rights Agreement. The Company shall use commercially reasonable efforts to cause each Supporting Company Shareholder to deliver, at
the Closing, to SPAC a duly executed copy of that certain Registration Rights and Lock-Up Agreement, by and among NewPubco and the additional
signatories thereto, in substantially the form attached as Exhibit C to the BCA.
3. Transfer
of Shares. Each Supporting Company Shareholder agrees during the term of this Agreement that it shall not, directly or indirectly,
(a) sell, assign, transfer (including by operation of Law), lien, pledge, dispose of or otherwise encumber any of the Subject Company
Equity Securities held by such Supporting Company Shareholder or otherwise agree to do any of the foregoing (collectively, a “Transfer”),
(b) deposit any Subject Company Equity Securities held by such Supporting Company Shareholder into a voting trust or enter into a
voting agreement or arrangement or grant any proxy or power of attorney with respect to any Subject Company Equity Securities held by
such Supporting Company Shareholder that is inconsistent with the provisions of this Agreement or (c) enter into any contract, option
or other arrangement or undertaking with respect to the direct or indirect acquisition or sale, assignment, Transfer (including by operation
of law) or other disposition of any Subject Company Equity Securities held by such Supporting Company Shareholder; provided, that
the foregoing shall not prohibit the Transfer of the Subject Company Equity Securities (i) pursuant to the terms of the BCA and Ancillary
Documents, or (ii) under a Permitted Transfer (as defined below), but only if such Permitted Transferee (as defined below) shall
execute a joinder to this Agreement, in a form reasonably acceptable to SPAC, agreeing to become a party to this Agreement. Any transfer
or assignment made other than as provided in this Section 3 shall be null and void.
4. Permitted
Transfers. Section 3 shall not prohibit a Transfer of Subject Company Equity Securities by any Supporting Company Shareholder
(a) to any family member or trust for the benefit of any family member, (b) to any shareholder, officers or directors or employees,
any affiliates or members or partners of such Supporting Company Shareholder, if an entity; (c) to any Affiliate of such Supporting
Company Shareholder or a Permitted Transferee pursuant to the existing Articles of Association of the Company; (d) to any person
or entity if and to the extent required by any non-consensual Order, by divorce decree or by will, intestacy, laws of descent and distribution
upon death or other similar applicable Law; (e) by private sales or transfers made in connection with the Transactions; (f) by
private sales or transfers made pursuant to Article 21.9 of the existing Articles of Association of the Company; or (g) by virtue
of each Supporting Company Shareholder’s Governing Documents upon liquidation or dissolution thereof, as applicable, in each case,
the transferee being referred to as a “Permitted Transferee”, and each Transfer, a “Permitted Transfer”;
provided, that, in each case of a Permitted Transfer, such Permitted Transferee shall execute a joinder to this Agreement agreeing
to become a party to this Agreement and be bound by the terms and conditions set forth herein.
5. Representations
and Warranties. Each Supporting Company Shareholder hereby represents and warrants to SPAC and the Company as follows:
(a) Organization;
Due Authorization. Such Supporting Company Shareholder (x) if not a natural person, is duly organized, validly existing and in
good standing under the laws of the jurisdiction in which it is incorporated, formed, organized or constituted, and the execution, delivery
and performance of this Agreement by such Supporting Company Shareholder and the consummation by such Supporting Company Shareholder of
the transactions contemplated hereby are within such Supporting Company Shareholder’s charter, partnership agreement, operating
agreement or similar organizational documents and have been duly authorized by all necessary action on the part of such Supporting Company
Shareholder or (y) if a natural person, has full legal capacity to execute and deliver this Agreement and to perform its obligations
hereunder. This Agreement has been duly authorized, executed and delivered by such Supporting Company Shareholder and, assuming due authorization,
execution and delivery by the other Parties to this Agreement, this Agreement constitutes a legally valid and binding obligation of such
Supporting Company Shareholder, enforceable against such Supporting Company Shareholder in accordance with the terms hereof (except as
enforceability may be limited by bankruptcy laws, other similar laws affecting creditors’ rights and general principles of equity
affecting the availability of specific performance and other equitable remedies).
(b) Ownership.
Such Supporting Company Shareholder is the record and beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
of, and has good and valid title to, all of its Subject Company Equity Securities free and clear of any security interest, lien, claim,
pledge, proxy, option, right of first refusal, agreement, voting restriction, limitation on disposition, charge, adverse claim of ownership
or use or other encumbrance of any kind, other than pursuant to (i) this Agreement, (ii) applicable securities Laws, and (iii) the
Governing Documents of the Company, such Supporting Company Shareholder has the sole power to vote and right, power and authority to sell,
transfer and deliver such Company Shares, and such Supporting Company Shareholder does not hold or own any additional rights to acquire
(directly or indirectly) any equity securities of the Company or any equity securities convertible into, or which can be exchanged for,
equity securities the Company.
(c) No
Conflicts. The execution and delivery of this Agreement by such Supporting Company Shareholder does not, and the performance by such
Supporting Company Shareholder of its obligations hereunder will not, (i) conflict with or result in a violation of the Governing
Documents of such Supporting Company Shareholder, as applicable, or (ii) require any consent or approval with respect to such Supporting
Company Shareholder that has not been given or other action that has not been taken by any person (including under any contract binding
upon such Supporting Company Shareholder or the Subject Company Equity Securities held by such Supporting Company Shareholder), in each
case to the extent such consent, approval or other action would prevent, enjoin or materially delay the performance by such Supporting
Company Shareholder of its obligations under this Agreement.
(d) Litigation.
There are no Proceedings pending against such Supporting Company Shareholder or, to the knowledge of such Supporting Company Shareholder,
threatened against such Supporting Company Shareholder before (or, in the case of threatened legal proceedings, that would be before)
any Governmental Entity, which in any manner challenges or seeks to prevent, enjoin or materially delay the performance by such Supporting
Company Shareholder of its obligations under this Agreement.
(e) Acknowledgment.
Such Supporting Company Shareholder understands and acknowledges that each of SPAC and the Company is entering into the BCA in reliance
upon such Supporting Company Shareholder’s execution and delivery of this Agreement. such Supporting Company Shareholder has had
the opportunity to read the BCA and this Agreement and has had the opportunity to consult with its tax and legal advisors.
6. Termination.
This Agreement and the obligations of each Supporting Company Shareholder under this Agreement shall automatically terminate upon the
earlier of: (a) the Closing, (b) the termination of the BCA in accordance with its terms, and (c) the adoption by the Company
Board of a Company Board Recommendation Change. Upon termination of this Agreement, no Party shall have any further obligations or liabilities
under this Agreement; provided that (i) nothing in this Section 6 shall relieve any Party of liability for fraud
or willful breach of this Agreement occurring prior to its termination and (ii) the provisions of this Section 6 and
Section 7 (other than Section 7(i)) shall survive any termination of this Agreement.
7. Miscellaneous.
(a) All
notices, requests, claims, demands and other communications among the Parties shall be in writing and shall be deemed to have been duly
given (i) when delivered in person, (ii) when delivered after posting in the United States mail having been sent registered
or certified mail return receipt requested, postage prepaid, (iii) when delivered by FedEx or other nationally recognized overnight
delivery service or (iv) when e-mailed (having obtained electronic delivery confirmation thereof (i.e., an electronic record
of the sender that the e-mail was sent to the intended recipient thereof without an “error” or similar message that such e-mail
was not received by such intended recipient)) during normal business hours (and otherwise as of the immediately following Business Day),
addressed as follows:
If to SPAC, to:
Israel Acquisitions Corp
12600 Hill Country Blvd, Building R, Suite 275
Bee Cave, Texas 78738
Attention: Ziv Elul and Sharon Barzik Cohen
Email: Ziv@israelspac.com; Sharon@israelspac.com
with a copy (which shall not constitute
notice) to:
Reed Smith LLP
2850 N. Harwood Street, Suite 1500
Dallas, Texas 75201
Attention: Lynwood Reinhardt
E-mail: lreinhardt@reedsmith.com
If to the Company, to:
Gadfin Ltd.,
Itzhak Modai 2 St., Rehovot, Israel
Attention: Eyal Regev, CEO
Email: eyal@gadfin.com
with a copy (which shall not constitute notice) to:
Herzog Fox & Neeman.
Herzog Tower, 6 Yitzhak Sadeh St.
Tel Aviv 6777506, Israel
Attention: Aviram Hazak
Email: HazakA@herzoglaw.co.il
If to a Supporting Company Shareholder,
to the address or email address as set forth on the signature page hereof.
(b) Whenever
possible, each provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable Law, but
if any term or other provision of this Agreement is held to be invalid, illegal or unenforceable under applicable Law, all other provisions
of this Agreement shall remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision of this Agreement
is invalid, illegal or unenforceable under applicable Law, the Parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby
are consummated as originally contemplated to the greatest extent possible.
(c) This
Agreement (together with the BCA and the other agreements referenced herein and therein) constitutes the entire agreement among the Parties
with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, among the Parties,
or any of them, with respect to the subject matter hereof.
(d) This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; provided,
however, that no Party may assign, delegate or otherwise transfer any of its rights or obligations pursuant to this Agreement without
the prior written consent of the other Parties. Any attempted assignment of this Agreement not in accordance with the terms of this Section 7(d) shall
be void ab initio.
(e) The
Parties agree that irreparable damage, for which monetary damages (even if available) would not be an adequate remedy, shall occur in
the event that the Parties do not perform the provisions of this Agreement (including failing to take such actions as are required of
them hereunder to consummate the Transactions) in accordance with its specified terms or otherwise breach such provisions. Accordingly,
the Parties acknowledge and agree that (i) the Parties shall be entitled to an injunction, specific performance or other equitable
relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy
to which they are entitled at Law or in equity and (ii) the right to specific enforcement is an integral part of the Transactions
and without that right, none of the Parties would have entered into this Agreement. Each of the Parties agrees that it shall not oppose
the granting of an injunction, specific performance and/or other equitable relief on any basis, including the basis that any other Party
has an adequate remedy at Law or that any award of an injunction, specific performance and/or other equitable relief is not an appropriate
remedy for any reason at Law or in equity. Any Party seeking: (A) an injunction or injunctions to prevent breaches of this Agreement;
(B) to enforce specifically the terms and provisions of this Agreement; and/or (C) other equitable relief, shall not be required
to show proof of actual damages or to provide any bond or other security in connection with any such remedy.
(f) This
Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to
this Agreement, or the negotiation, execution or performance of this Agreement or the transactions contemplated hereby, or in any way
connected with or related or incidental to the dealings of the Parties in respect of this Agreement or any of the transactions contemplated
hereby (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or connection
with this Agreement or as an inducement to enter into this Agreement), shall be governed by, and construed in accordance with, the Laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than the State of New York.
(g) Each
of the Parties irrevocably and unconditionally submits to the exclusive jurisdiction of the United States District Court for the Southern
District of New York for the purposes of any Proceeding, claim, demand, action or cause of action (i) arising under this Agreement
or (ii) in any way connected with or related or incidental to the dealings of the Parties in respect of this Agreement or the transactions
contemplated hereby, and irrevocably and unconditionally waives any objection to the laying of venue of any such Proceeding in any such
court, and further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Proceeding
has been brought in an inconvenient forum. Each Party hereby irrevocably and unconditionally waives, and agrees not to assert, by way
of motion or as a defense, counterclaim or otherwise, in any Proceeding claim, demand, action or cause of action against such Party (A) arising
under this Agreement or (B) in any way connected with or related or incidental to the dealings of the Parties in respect of this
Agreement or the transactions contemplated hereby, (x) any claim that such Party is not personally subject to the jurisdiction of
the courts as described in this Section 7(g) for any reason, (y) that such Party or such Party’s property
is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service
of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (z) that
(1) the Proceeding, claim, demand, action or cause of action in any such court is brought against such Party in an inconvenient forum,
(2) the venue of such Proceeding, claim, demand, action or cause of action against such Party is improper or (3) this Agreement,
or the subject matter hereof, may not be enforced against such Party in or by such courts. Each Party agrees that service of any process,
summons, notice or document by registered mail to such party’s respective address set forth in Section 7(a) shall
be effective service of process for any such Proceeding, claim, demand, action or cause of action.
(h) This
Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement (including any of the closing
deliverables contemplated hereby) by electronic means, including DocuSign, Adobe Sign or other similar e-signature services, e-mail or
scanned pages shall be effective as delivery of a manually executed counterpart to this Agreement.
(i) Each
Party shall use its reasonable best efforts to (i) execute and deliver or cause to be executed and delivered such additional documents
and instruments and (ii) take all such further action as may be reasonably necessary or desirable to consummate the transactions
contemplated by this Agreement.
(j) This
Agreement shall not be effective or binding upon any Party until after such time as the BCA is executed and delivered by SPAC and the
Company
(k) This
Agreement may be amended in writing by the Parties hereto at any time prior to the Merger Effective Time. This Agreement may not be amended
except by an instrument in writing signed by each of the Parties hereto.
(l) Each
Supporting Company Shareholder shall permit and hereby consents to and authorizes SPAC and the Company to publish and disclose a copy
of this Agreement.
(m) Each
Supporting Company Shareholder signs this Agreement solely in its capacity as a shareholder of the Company. Such Supporting Company Shareholder
makes no agreement or understanding in this Agreement in its capacity (or in the capacity of any Affiliate, partner or employee of the
Supporting Company Shareholder) as a director or officer of the Company (if the Supporting Company Shareholder holds such office). Nothing
in this Agreement will limit or affect any actions or omissions taken by such Supporting Company Shareholder (or any Affiliate, partner
or employee of such Supporting Company Shareholder) in his, her or its capacity as a director or officer of the Company, and no actions
or omissions taken in such Supporting Company Shareholder’s capacity (or in the capacity of any Affiliate, partner or employee of
the Supporting Company Shareholder) as a director or officer of the Company shall be deemed a breach of this Agreement. Nothing in this
Agreement will be construed to prohibit, limit or restrict such Supporting Company Shareholder (or any Affiliate, partner or employee
of the Supporting Company Shareholder) from exercising his or her fiduciary duties as an officer or director of the Company.
[Signature page follows]
IN WITNESS WHEREOF,
the Company, SPAC and each Supporting Company Shareholder have caused this Agreement to be executed as of the date first written above
by their respective officers thereunto duly authorized.
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[Signature Page to Transaction Support
Agreement]
IN WITNESS WHEREOF,
the Company, SPAC and each Supporting Company Shareholder have caused this Agreement to be executed as of the date first written above
by their respective officers thereunto duly authorized.
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ISRAEL ACQUISITIONS CORP |
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Name: |
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[Signature Page to Transaction Support
Agreement]
IN WITNESS WHEREOF, the Company, SPAC and
each Supporting Company Shareholder have caused this Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.
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[Supporting Company Shareholder] |
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For purposes of Section 7(a): |
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[Signature Page to Transaction Support Agreement]
EXHIBIT A
Supporting Company Shareholder
Company Shareholder |
Number of Owned Company Ordinary Shares (on an as converted basis) |
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Exhibit 99.1
Gadfin Ltd. and Israel Acquisitions Corp. Announce
Entry into Definitive Business Combination Agreement, Bringing the Unmanned Aerial Delivery Company to Nasdaq
Tel-Aviv, Israel, January 27, 2025 –
Israel Acquisitions Corp. (NASDAQ: ISRL, ISRLU, ISRLW), (“ISRL”), a publicly-traded special purpose acquisition
company, and Gadfin Ltd. (“Gadfin”), an Israeli technology company specializing in all-weather, long range, heavy-duty, drone
delivery for essential cargo, today announced the entry into a definitive business combination agreement reflecting a total equity value
of Gadfin of up to $200 million USD (the “Business Combination Agreement”). The combined company will trade on Nasdaq and
leverage Gadfin’s innovative technology augmented with the expertise of the ISRL team.
Through Gadfin’s patented technology, its
unmanned aerial vehicles which are powered by hydrogen fuel cells can deliver medical supplies and other heavy-duty cargo to long-range
destinations and in harsh weather conditions. Gadfin’s technology makes it possible to significantly improve logistics delivery
in both civil uses and combat zones. Gadfin is well-positioned to be a leading player in drone cargo delivery.
Upon completion of the transaction, Gadfin aims
to achieve a great growth plan based on existing contracts and potential new wins.
Transaction Details:
|
· |
The Board of Directors of both ISRL and Gadfin have unanimously approved the Business Combination Agreement and signed voting support agreements in favor of the transaction. |
|
· |
Minimum net cash condition precedent to closing of $15 million. |
|
· |
The combined company’s staggered Board of Directors will initially be comprised of up to seven directors, of which one director will be nominated by ISRL and up to four directors will be nominated by Gadfin. Up to two additional directors will be mutually agreed. Existing Gadfin management will operate the combined company. |
|
· |
The parties anticipate completing the business combination in the second half of 2025, contingent upon satisfying all closing conditions, including shareholder approvals, regulatory consents, and compliance with legal and tax requirements. |
|
· |
Gadfin’s officers, directors, and >5% shareholders, as well as ISRL’s sponsor will enter into a 6-month lock-up agreement, followed by a gradual release mechanism, from the closing of the business combination. |
|
· |
At the closing of the transaction, Gadfin will be listed on Nasdaq in the United States. |
Izhar Shay, Chairman of ISRL's Board of Directors: “This
business combination agreement marks a significant milestone, aligning well with the vision we set forth when launching our SPAC. Gadfin's
innovative hydrogen-powered drones, capable of long-range, zero-emission deliveries, position the company to seize numerous growth opportunities
in the drone logistics industry, both in the U.S. and globally. We believe this is an exceptional company to take to the Nasdaq.”
Eyal Regev, Gadfin's Founder and CEO: “We
are thrilled to announce this business combination, marking a pivotal milestone for Gadfin and underscoring the confidence placed in us
by leaders in the hi-tech and financial sectors in Israel and the United States. We deeply appreciate the trust and business expertise
of the ISRL team, particularly Ziv Elul and Izhar Shay, whose strategic guidance and proven ability to scale businesses will be invaluable
in driving Gadfin’s growth. Together, we are committed to accelerating technological innovation and expanding Gadfin’s global
presence. Our gratitude also extends to the dedicated teams at Gadfin and ISRL for their tireless efforts in advancing this merger.”
Advisors:
Tiberius Capital Markets, a division of Arcadia
Securities is acting as financial advisor to Israel Acquisitions Corp, with Reed Smith LLP, and Stuarts Humpries acting as legal advisors.
Herzog, Fox, and Neeman is acting as legal advisor
to Gadfin.
About Gadfin Ltd.:
Gadfin is a pioneering technology company revolutionizing
the logistics and cargo delivery industry with its innovative hydrogen-powered drones. Specializing in long-range, heavy-duty, zero-emission
aerial delivery, Gadfin provides cutting-edge solutions for time-critical, essential cargo transport, especially to less accessible areas.
Gadfin’s proprietary technology is designed to address the evolving needs of sectors such as healthcare, logistics, and industrial
supply chains, enabling efficient, sustainable, and reliable deliveries across urban and remote areas.
Led by Eyal Regev, one of the earliest pioneers
of the vertical take-off and landing (“VTOL”) cargo delivery vision, Gadfin’s comprehensive approach includes innovative
VTOL design, state-of-the-art drone manufacturing, advanced operational platforms, and tailored support services, ensuring seamless integration
into its clients’ logistics frameworks. Headquartered in Israel, Gadfin is pioneering the way in transforming how goods are transported,
helping its partners meet the demands of the modern world while reducing environmental impact. Backed by prominent investors, SIBF VC
(www.sibf.vc) and Gehr Group (www.gehr.com), Gadfin is poised to lead the charge in sustainable and efficient logistics solutions.
About Israel Acquisitions Corp.:
Israel Acquisitions Corp is a Cayman Islands exempted
company incorporated as a blank-check company. Formed for the purpose of entering into a merger, share exchange, asset acquisition, stock
purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company intends
to focus on high-growth technology companies that are domiciled in Israel, and that either carry out all or a substantial portion of their
activities in Israel or have some other significant Israeli connection. The management team is led by Chairman, Izhar Shay, Chief
Executive Officer, Ziv Elul, and Chief Financial Officer, Sharon Barzik Cohen.
Forward-Looking Statements:
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding the proposed
business combination ISRL and Gadfin, ISRL and Gadfin’s ability to consummate the transaction, the expected closing date for
the transaction, the benefits of the transaction and the public company’s future financial performance following the transaction,
as well as ISRL’s and Gadfin’s strategy, future operations, financial position, estimated revenues, and losses, projected
costs, prospects, plans and objectives of management are forward looking statements. When used herein, including any oral statements made
in connection herewith, the words “anticipates,” “approximately,” “believes,” “continues,”
“could,” “estimates,” “expects,” “forecast,” “future, ” “intends,”
“may,” “outlook,” “plans,” “potential,” “predicts,” “propose,”
“should,” “seeks,” “will,” or the negative of such terms and other similar expressions are intended
to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking
statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from those expressed
or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered
reasonable by both ISRL and its management, and Gadfin and its management, as the case may be, are inherently uncertain. Except as otherwise
required by applicable law, ISRL disclaims any duty to update any forward-looking statements, all of which are expressly qualified
by the statements in this section, to reflect events or circumstances after the date hereof. ISRL cautions you that these forward-looking
statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of
ISRL. There may be additional risks that neither ISRL nor Gadfin presently know of or that ISRL or Gadfin currently believe are immaterial
that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should
be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the
contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. Author and any of their affiliates, directors, officers and employees expressly disclaim
any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances
after the date on which such statement is being made, or to reflect the occurrence of unanticipated events.
Additional Information and Where to Find
It:
Additional information about the proposed business
combination, including a copy of the business combination agreement, is disclosed in the Current Report on Form 8-K that ISRL filed
with the SEC on January 27, 2025 and is available at www.sec.gov. In connection with the proposed transaction, the Company intends
to file a registration statement, which will include a preliminary proxy statement/prospectus with the SEC. The proxy statement/prospectus
will be sent to the stockholders of the Company. The Company and Gadfin also will file other documents regarding the proposed transaction
with the SEC. Before making any voting decision, investors and security holders of the Company are urged to read the proxy statement/prospectus
and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available
because they will contain important information about the proposed transaction.
No Offer or Solicitation:
This communication is for informational purposes
only and shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the
Business Combination. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities,
or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom.
Investor Contact:
contact@israelspac.com
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Jan. 26, 2025 |
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ISRAEL ACQUISITIONS
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Entity Central Index Key |
0001915328
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Entity Tax Identification Number |
87-3587394
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NASDAQ
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Israel Acquisitions (NASDAQ:ISRLW)
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Israel Acquisitions (NASDAQ:ISRLW)
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De Mar 2024 à Mar 2025