Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 73

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 73
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 Funded Know-How,
in a manner that does not entirely prevent the IIA funded company from using the Funded Know-How, which include a requirement to receive
the IIA’s prior approval. This approval is subject to payment to the IIA in accordance with the formulas stipulated in these rules.

In addition, we may transfer Funded Know-How to another
Israeli company, provided that the acquiring company assumes all of our responsibilities toward the IIA (the transfer would still require
IIA approval, and is subject to the obligation to pay royalties to the IIA from the income of such sale transaction, but will not be subject
to the payment of the Redemption Fee).

The obligation to comply with the Innovation Law
and with the IIA’s rules and guidelines (including with respect to the restriction of the transfer of Funded Know-How and manufacturing
rights outside of Israel) remains in effect even after full repayment of the amount of royalties payable pursuant to the grants. Once
a Redemption Fee is paid on a transfer of Funded Know-How outside Israel, all obligations towards the IIA (including the royalty obligation)
cease. We are also subject to reporting obligations towards the IIA including submitting during the R& D approved program period periodic
reports pertaining to the progress of research and development, submitting reports on income derived from products developed using grants
from the IIA and, in certain circumstances, reports regarding change in the holding in our company and change of control. Furthermore,
in the event of any change of control or any change in the holding of voting rights or rights to appoint directors or the CEO a result
of which any non-Israeli citizen or non-Israeli resident becomes an “ Interested Party” in our company, the non-Israeli citizen
or non-Israeli resident shall comply with all the restrictions imposed on us and our obligations pursuant to Innovation Law and the IIA’s
rules and guidelines. See “Management - Internal Auditor” for definition of Interested Party. In addition, the
government of State of Israel may from time to time audit sales of products that it claims incorporate technology funded via IIA programs,
and this may lead to additional royalties being payable on additional product candidates. Moreover, under certain circumstances, further
offerings of our shares to the public in any stock exchange whether in Israel or abroad, is subject to the approval of the IIA.

These restrictions may impair our ability to enter
into agreements covering IIA Funded Know-how without the approval of the IIA, and we