Company: BWAY
Filing Date: 2025-04-22
Form Type: 20-F
Source: 0001171843-25-002347
Chunk: 75

Company: Brainsway Ltd.
Filing Date: 2025-04-22
Form: 20-F
Item: Item 5
Chunk 75
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 that may be relevant to these types of transactions (see Exhibit 2.3
attached to this Annual Report). These provisions of Israeli law may delay, prevent or make difficult an acquisition of us, which could
prevent a change of control, and therefore would potentially depress the price of the ADSs.

Furthermore, Israeli tax considerations may make
potential transactions unappealing to us or to our shareholders, especially for those shareholders whose country of residence does not
have a tax treaty with Israel which exempts such shareholders from Israeli tax. For example, Israeli tax law does not recognize tax-free
stock exchanges to the same extent as U. S. tax law. With respect to mergers, Israeli tax law allows for tax deferral in certain circumstances
but makes the deferral contingent on the fulfillment of a number of conditions, including, in some cases, a holding period of two years
from the date of the transaction during which sales and dispositions of shares of the participating companies are subject to certain restrictions.
Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes
payable even if no disposition of the shares has occurred.

We may become
subject to claims for remuneration or royalties for assigned service invention rights by our employees, which could result in litigation
and adversely affect our business.

We have entered into assignment of invention agreements
with our employees who engage in research and development pursuant to which such individuals agree to assign to us all rights to any inventions
created during and as a result of their employment or engagement with us. A significant portion of our intellectual property has been
developed by our employees in the course and as a result of their employment by us. Under the Israeli Patent Law, 5727-1967, or the Patent
Law, inventions conceived by an employee during the scope of his or her employment with a company and as a result thereof are regarded
as “service inventions,” which belong to the employer absent a specific agreement between the employee and employer giving
the employee service invention rights. The Patent Law also provides that if there is no agreement between an employer and an employee
with respect to the employee’s right to receive compensation for such “service inventions,” the Israeli Compensation
and Royalties Committee, or the Committee, a body constituted under the Patent Law, shall determine whether the employee is entitled to
remuneration for his or her service inventions and the scope and conditions for such remuneration. Israeli case law clar