Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 195

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 195
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, respectively, and recorded as financial income (expense), net, in the Statement of
Operations and Comprehensive Loss.

  In connection with the NPA (See Note 15(c)), the Company                                                                                                                                              

The warrant shares
issuable under the Warrants shall vest and be exercisable in accordance with the proportionate portion that the aggregate principal amount
of Notes issued under the NPA bears to $60.0million. As of December 31, 2024,42% of the warrants have vested.

  In connection with the 2024 Note Purchase Agreement, the Company issued to the 2024 Note Purchasers warrants,                            
  (hereinafter “the 2024 Note Purchaser Warrants”), to purchase up to 682,282 ordinary shares of the Company. Upon the completion          
  of the IPO, the number of ordinary shares of the Company issuable under the 2024 Note Purchaser Warrants increased by 137,040. The 2024  
  Note Purchaser Warrants are exercisable until November 8, 2028 at a price per share equal to $ 15.61.                                    
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  Prior the IPO, the Company measured the warrants to the Note Purchaser Warrants and the 2024 Note Purchaser                                   
  Warrants, at fair value. Upon the closing of the IPO, warrants outstanding, other than warrants issued to an Israeli bank, were reclassified  
  to equity. Warrants issued to an Israeli bank may be settled for cash under certain circumstances and are not indexed to                      
  the Company’s equity.                                                                                                                         
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F-45

GAUZY LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NOTE 17 - SHARE-BASED COMPENSATION:

In May 2016, the Board of Directors
approved a new equity incentive plan (the “ Plan”). During 2023 the Board of Directors approved an additional increase of the
pool of707,358ordinary shares for grant to Company employees.

In February 2024, certain members
of the Company’s executive management, including mainly the chief executive officer and chief technology officer, collectively sold
in a privately negotiated transaction a number of ordinary shares representing less than