Company: OTSA
Filing Date: 2025-01-28
Form Type: DRS
Source: 0001213900-25-007614
Chunk: 171

Company: OTSAW Ltd
Filing Date: 2025-01-28
Form: DRS
Chunk 171
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 agreed to indemnify CMD under the terms of the Engagement Agreement. On December19, 2024 we entered into a second engagement via an advisory agreement with CMD under which CMD committed to providing advice on potential transactions, acquisitions, dispositions, and various other corporate matters (the “Advisory Agreement”). Under the Advisory Agreement we agreed to pay CMD retainer and incentive fees including US$675,000, or US$337,500 as a retainer fee if a financing transaction of US $5,000,000 or more is completed before this offering by April15, 2025, followed by an additional US$337,500. Further retainer fees of US$250,000 are due by September1, 2025, and February15, 2026. Additionally, we will negotiate a separate incentive fee with CMD of up to $1,300,000, payable by February15, 2026. The Advisory Agreement does not commit CMD to raising capital for us and can be terminated by either party with written notice, but certain provisions, including those related to fees, expenses, and indemnity, will remain in effect. We agreed to indemnify CMD under the terms of the Advisory Agreement. Sales and Distribution We sell our products worldwide through multiple sales channels, including through our direct sales force and distributors, who resell our products to end customers. As of the date of the prospectus, our global network of distributors consisted of approximately 20 distributors, through which we have established distributor network in Singapore, Malaysia, Indonesia, South Korea, Hong Kong, UAE, Oman, Kuwait and Australia. We have established international reseller and strategic partnership agreements with all of our distributors. Pursuant to the international reseller agreements, our distributors purchase the products directly from us, with the option to either lease them to end -usersunder the RaaS model or resell to the end -usersdirectly. Furthermore, all of our distributors are responsible for the installation, repair, replacement and maintenance of the products they have resold in their relevant territories. Our distributors are also required to implement marketing and promotion efforts and assume all expenses related to the promotion, sale and distribution of the product which the distributors undertake to distribute. All distributors are subject to our capped suggested retail price or lease price when reselling or leasing. The distributors work closely with our sales and marketing team to attend periodic training, make periodic reports of market conditions, sales and forecasting, and assist us by identifying potential customers, developing new businesses and maintaining relationships with the end -