Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 191

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 191
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MENTS (continued)

(U. S. dollars in thousands, except share and per
share amounts)

NOTE 15 - CONVERTIBLE LOAN AGREEMENTS(continued):

The principal amount of any Notes issued
to Purchaser under the NPA bear interest at a rate of16.0% per annum, payable by the issuer quarterly, starting March 31, 2024. In addition,
a commitment fee of5.0% per annum is payable by the issuer on the unutilized amount of the credit facility (being $60.0million, subject
to any termination in whole or part, less the aggregate principal amount of Notes issued under the NPA).

Upon repayment or prepayment of any Notes,
the issuer of such Notes has to pay the Purchaser an exit fee equal to4.0% of the principal amount of the Notes being repaid or prepaid.
In addition, Purchaser is entitled, upon the final repayment or prepayment of the Notes (including by way of conversion), to payment of
a make whole amount equal the difference (if any) between (i) the aggregate principal amount of all issued Notes, including interest,
commitment fees, exit fees and any agent fees payable to the Purchaser, and (ii) an amount equal to 1.5x of the gross principal amount
of the Notes issued to Purchaser under the NPA.

The Notes are due to be payable in full
on November 8, 2028, provided that Purchaser may call the prepayment of any issued Notes following (i) the consummation of an initial
public offering of the common shares of the Company (“ IPO”), with a 30 day notice, or (ii) the consummation of any financing
transaction which includes the refinancing or repayment of the loans of under the Facility Agreement.

The amounts owing under the NPA, including
principal, interest and fees payable to Purchaser, are secured by a second ranking lien on the assets of Group and subject to the first
ranking liens granted to the credit funds under the Facility Agreement and 2024 NPA.

Regarding the warrants granted by the Company
to the Purchaser under the “ NPA”, see Note 16(g).

Following the consummation of the IPO, in
July 2024, the Group repaid the NPA among Chutzpa Holdings Ltd. totaling $38.6million, including minimum return and interest.

As of December 31, 2024, $35.0million