Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 70

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 70
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 Note Purchase Agreement.

Credit Facility

On January 19, 2022,
we entered into a facility agreement with certain credit funds for a loan facility in the aggregate amount of up to $30.0 million,
or the Facility and the Facility Agreement, respectively. Subsequent to entering into the Facility Agreement, on January 26, 2022,
we drew down an amount of $20 million, or the First Loan, which was used to repay our bank loans with an Israeli bank, and towards
the acquisition of Vision Lite.

The Facility Agreement was
amended by a First Amendment on April 25, 2022, under which Vision Lite acceded to the Facility Agreement as an additional borrower,
and assumed 25% of the first loan ($5 million) and 25% of the unutilized amount of the Facility ($2.5 million), against repayment
of a corresponding amount owed by it to us under inter-company loans. The Facility was thereafter fully utilized on April 25, 2022
by the drawdown of loans by each of the Company and Vision Lite (aggregated into a loan in an amount of $22.5 million (75%) owed
by us, and a loan in an amount of $7.5 million owed by Vision Lite (25%)), or the Facility Loans.

The credit funds also
received a “phantom warrant” under the terms of the Facility Agreement which entitled them to a cash payment (allocated
proportionately among the Company (75%) and Vision Lite (25%)) equal, in the aggregate, to the higher of (i) $3 million,
or the Cash Payment; or (ii) the difference between the price per share (PPS) of a series D preferred share in an
“ Exit Event” (based on our valuation, as reflected in the terms of the Exit Event as defined below), and the preferred D
shares PPS of $31.08, multiplied by 172,624 series D preferred shares (or such number of ordinary shares into which such shares
shall have been converted, on or prior to such Exit Event, in accordance with their terms).

On July 3, 2023, we entered
into a waiver and amendment agreement to the Facility Agreement, or the Waiver and Amendment Agreement, pursuant to which our repayment
obligations were amended such that the repayment date for certain principal amounts occurring on June 30, 2023 in accordance with the
Facility Agreement were to be postponed and rep