Company: NCEL
Filing Date: 2025-02-10
Form Type: F-3
Source: 0001213900-25-011823
Chunk: 105

Company: NewcelX Ltd.
Filing Date: 2025-02-10
Form: F-3
Chunk 105
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 agreements with its employees and certain key consultants. These agreements prohibit employees and certain key consultants,
if they cease working for Kadimastem, from competing directly with it or working for its competitors or clients for a limited period of
time. Kadimastem may be unable to enforce these agreements under the laws of the jurisdictions in which Kadimastem employees work and
it may be difficult for it to restrict its competitors from benefitting from the expertise its former employees or consultants developed
while working for it. For example, Israeli courts have required employers seeking to enforce non-compete undertakings of a former employee
to demonstrate that the competitive activities of the former employee will harm one of a limited number of material interests of the employer
which have been recognized by the courts, such as the secrecy of a company’s confidential commercial information or the protection
of its intellectual property. If Kadimastem cannot demonstrate that such interests will be harmed, it may be unable to prevent its competitors
from benefiting from the expertise of its former employees or consultants and its ability to remain competitive may be diminished.

In addition, under Israeli
law, if Kadimastem wishes to obtain ownership over inventions developed by its employees, which inventions were developed while performing
their employment activities, but outside the performance of their contractual duties, Kadimastem is required to compensate the employee
for the rights to their respective inventions. There can be no guarantee that Kadimastem will be able to obtain any such inventions and
the failure to obtain such ownership rights over employee inventions could have a material adverse effect on its operations and ability
to effectively compete.

Risks Related to Israeli Law and its Operations in Israel

Potential political, economic and military instability in the State of Israel, where its headquarters, members of its management team, its production and research and development facilities are located, may adversely affect its results of operations.

Kadimastem’s executive
offices, research and development laboratories and manufacturing facility are located in Nes-Ziona, Israel. In addition, the majority
of its key employees, officers and directors are residents of Israel. Accordingly, political, economic and military conditions in Israel
may directly affect its business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place
between Israel and groups in its neighboring countries, including Hamas (an Islamist militia and political group that has historically
controlled the Gaza Strip) and Hezbollah (an Islamist militia and political group based in Lebanon). In addition, several