# EDGAR Filing Document

**Accession Number:** 0002112466
**File Stem:** 0001104659-26-071413
**Filing Date:** 2026-6
**Character Count:** 1760478
**Document Hash:** 1b2e2996344f8a285162b2d56a329da5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-071413.hdr.sgml**: 20260608

**ACCESSION NUMBER**: 0001104659-26-071413

**CONFORMED SUBMISSION TYPE**: F-1

**PUBLIC DOCUMENT COUNT**: 46

**FILED AS OF DATE**: 20260608

**DATE AS OF CHANGE**: 20260608

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Silentium Ltd.
- **CENTRAL INDEX KEY:** 0002112466
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** L3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-296603
- **FILM NUMBER:** 261073163

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 5 GOLDA MEIR STREET
- **CITY:** NESS ZIONA
- **PROVINCE COUNTRY:** L3
- **ZIP:** 7403649
- **BUSINESS PHONE:** 972-8-946-8664

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 5 GOLDA MEIR STREET
- **CITY:** NESS ZIONA
- **PROVINCE COUNTRY:** L3
- **ZIP:** 7403649

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As filed with the Securities and Exchange Commission on June 8, 2026.

Registration No. 333-

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM F-1

 *REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933* 

Silentium Ltd. (Exact name of registrant as specified in its charter)

State of Israel (State or other jurisdiction of incorporation or organization) 3679 (Primary Standard Industrial Classification Code Number) Not Applicable (I.R.S. Employer Identification Number)

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| 5 Golda Meir Street Ness Ziona, 7403649, Israel Tel: +972-8-946-8664 <br> (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)  | Silentium USA Inc. 108 W. 13th Street, Suite 100 Wilmington, DE 19801 Tel: (302) 406-6517 <br> (Name, address, including zip code, and telephone number, including area code, of agent for service)  |

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|:---|:---|
|  | *Copies to:*  |
| David Huberman, Esq. Diana Liu, Esq. Greenberg Traurig, P.A. One Azrieli Center Round Tower, 30th floor 132 Menachem Begin Rd Tel Aviv 6701101, Israel Telephone: 312 364 1633  | Shlomo Farkas, Adv. Perry Wildes, Adv. Goldfarb Gross Seligman & Co. One Azrieli Center Tel Aviv 6702100, Israel Telephone: +972(0) 3.607.4444 <br> Guy Ben-Ami, Esq. Steven J. Glusband, Esq. Carter Ledyard & Milburn LLP 28 Liberty St. 41<sup>st</sup> Floor New York, NY 10005 Tel: 212-238-8658  |

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Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date hereof.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check the following box. ☐

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

†

The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

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 **The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.** 

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| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS**  | **SUBJECT TO COMPLETION,**  | **DATED JUNE 8, 2026**  |

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### 2,150,000 Ordinary Shares
![[MISSING IMAGE: lg_silentiumsilencchip-4clr.jpg]](lg_silentiumsilencchip-4clr.jpg)

### Silentium Ltd.
This is a firm commitment initial public offering of ordinary shares, no par value per share, of Silentium Ltd. No public market currently exists for our ordinary shares. We anticipate that the initial public offering price will be between $6.00 and $8.00 per share.

We have applied to list our ordinary shares on the NYSE American stock exchange under the symbol "SIAI."

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and are subject to reduced public company reporting requirements.

#### Investing in our securities involves a high degree of risk. See "Risk Factors" beginning on page 15 of this prospectus.
 **Neither the Securities and Exchange Commission, or the SEC, nor any state or other foreign securities commission has approved nor disapproved these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.** 

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| | | |
|:---|:---|:---|
| | **Per Ordinary <br> Share**  | **Total**  |
| Initial public offering price  |  | $— |
| Underwriting discounts<sup>(1)</sup>  |  | $— |
| Proceeds to us (before expenses)  |  | $— |

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<sup>1)</sup>

The underwriting discount does not include a non-accountable expense allowance equal to 1.0% of the initial public offering price payable to the underwriters. We refer you to "Underwriting" section beginning on page [134](#UND) for additional information regarding underwriters' compensation.

We have granted a 45-day option to the representative of the underwriters to purchase up to 322,500 additional ordinary shares solely to cover over-allotments, if any.

The underwriters expect to deliver the ordinary shares on or about , 2026.

### ThinkEquity
The date of this prospectus is , 2026.

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![[MISSING IMAGE: ph_silentium-4clr.jpg]](ph_silentium-4clr.jpg)

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### T ABLE OF CONTENTS

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| | |
|:---|:---|
| [PROSPECTUS SUMMARY](#PRSU)  | [1](#PRSU) |
| [SUMMARY CONSOLIDATED FINANCIAL DATA](#SCFD)  | [13](#SCFD) |
| [RISK FACTORS](#RIFA)  | [15](#RIFA) |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#SNRF)  | [48](#SNRF) |
| [USE OF PROCEEDS](#UOP)  | [50](#UOP) |
| [DIVIDEND POLICY](#DIPO)  | [51](#DIPO) |
| [CAPITALIZATION](#CAP) | [52](#CAP) |
| [DILUTION](#DIL) | [54](#DIL) |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#MDAA)  | [56](#MDAA) |
| [BUSINESS](#BUS) | [65](#BUS) |
| [MANAGEMENT](#MAN) | [91](#MAN) |
| [PRINCIPAL SHAREHOLDERS](#PRSH)  | [110](#PRSH) |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#CRAR)  | [113](#CRAR) |
| [DESCRIPTION OF SHARE CAPITAL](#DOSC)  | [115](#DOSC) |
| [SHARES ELIGIBLE FOR FUTURE SALE](#SEFF)  | [120](#SEFF) |
| [TAXATION](#TAX) | [123](#TAX) |
| [UNDERWRITING](#UND) | [134](#UND) |
| [EXPENSES](#EXP) | [143](#EXP) |
| [LEGAL MATTERS](#LEMA)  | [143](#LEMA) |
| [EXPERTS](#EXP1) | [143](#EXP1) |
| [ENFORCEMENT OF CIVIL LIABILITIES](#EOCL)  | [143](#EOCL) |
| [WHERE YOU CAN FIND MORE INFORMATION](#WYCF)  | [145](#WYCF) |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#tITFS)  | [F-1](#tITFS) |

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### A BOUT T HIS P ROSPECTUS
Neither we nor the underwriters have authorized anyone to provide you with information that is different from that contained in this prospectus, any amendment or supplement to this prospectus, or in any free writing prospectus we may authorize to be delivered or made available to you. Neither we nor the underwriters take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We and the underwriters are offering to sell ordinary shares and seeking offers to purchase ordinary shares only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date on the front of this prospectus, regardless of the time of delivery of this prospectus or any sale of ordinary shares. Our business, financial condition, results of operations and prospects may have changed since the date on the front cover of this prospectus.

 **Through and including 2026 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

Neither we nor any of the underwriters have taken any action to permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about and to observe any restrictions relating to this offering and the distribution of this prospectus.

The terms "shekel," "Israeli shekel" and "NIS" refer to New Israeli Shekels, the lawful currency of the State of Israel, and the terms "dollar," "U.S. dollar" or "$" refer to United States dollars, the lawful currency of the United States of America. All references to "shares" in this prospectus refer to ordinary shares of Silentium Ltd., of no par value per share.

On May 28, 2026, we effected a reverse share split of our ordinary shares at the ratio of 2,060-for-1, or the Reverse Split. Unless the context expressly dictates otherwise, all references in this prospectus to our share capital, including the number of ordinary shares outstanding and per-share data for periods prior to the effective date of the Reverse Split have been retroactively adjusted to give effect to the Reverse Split.

### T RADEMARKS
"SILENTIUM", "QUIET BUBBLE", "PERSONAL SOUND BUBBLE" and "ACUSTIFUSION" are trademarks of ours that we use in this prospectus. This prospectus also includes trademarks, trade names and service marks that are the property of other organizations. Solely for convenience, our trademarks and trade names referred to in this prospectus appear without the <sup>®</sup> or™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights, or the right of the applicable licensor to our trademark and trade names.

### M ARKET , I NDUSTRY AND O THER D ATA
This prospectus includes statistical, market and industry data and forecasts which we obtained from publicly available information and independent industry publications and reports that we believe to be reliable sources. These publicly available industry publications and reports generally state that they obtain their information from sources that they believe to be reliable, but they do not guarantee the accuracy or completeness of the information. Although we are responsible for all of the disclosures contained in this prospectus, including such statistical, market and industry data, we have not independently verified any of the data from third-party sources, nor have we ascertained the underlying economic assumptions relied upon therein.

In addition, while we believe the market opportunity information included in this prospectus is generally reliable and is based on reasonable assumptions, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Special Note Regarding Forward-Looking Statements."

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### P ROSPECTUS S UMMARY
 *This summary highlights selected information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before deciding to invest in our ordinary shares, you should read this entire prospectus carefully, including the sections of this prospectus entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus. Unless the context otherwise requires, references in this prospectus to the "Company," "Silentium," "we," "us," "our" and other similar designations refer to Silentium Ltd. and its subsidiaries.* 

#### Company Overview
Silentium Ltd. develops software-based Active Acoustics solutions designed to manage in-cabin sound in vehicles. The Company's technology reduces unwanted noise, enhances desired audio cues, and enables personalized, configurable acoustic experiences, thereby supporting improved comfort, safety, and perceived quality in modern vehicles.

Silentium's solutions are primarily deployed in the automotive market and are designed to integrate with vehicle computing, control, and audio systems. Rather than relying on heavy mechanical insulation or dedicated hardware modules, the Company's software leverages existing microphones, speakers, processors, and electronic control units (ECUs) to monitor, estimate, and dynamically shape acoustic fields inside the vehicle cabin. This software-centric approach aligns with the automotive industry's transition toward software-defined vehicle architectures, in which functionality is increasingly implemented and updated through software rather than fixed hardware components.

The Company works directly with automotive original equipment manufacturers that design, engineer and produce vehicles under their own brands ("Auto OEMs"), companies that supply complete systems and modules directly to Auto OEMs ("Tier-1 suppliers"), and semiconductor and digital signal processing partners to support adoption across vehicle platforms and production programs. Silentium's technology is typically embedded at the vehicle platform level and remains integrated throughout the production lifecycle of the model, which generally ranges from four to seven years.

Silentium is a development-stage company. To date, the Company's commercialized products consist exclusively of road noise and engine noise cancellation solutions. As of May 31, 2026, Silentium's technology was deployed in approximately 1.8 million vehicles across 24 models of vehicles (each model as defined by the applicable Auto OEM and collectively, "vehicle models") and five Auto OEMs (see "Business — Our Key Performance Indicators"). As additional vehicles enter production, the number of vehicles incorporating our software increases, generating royalties over the production life of each multi-year vehicle production cycle for which the Company provides development services and per-unit royalty-bearing software licenses ("vehicle program"), and enhancing revenue visibility.

Revenues are derived from non-recurring engineering ("NRE") fees generated during the software development and integration phases of specific vehicle programs, followed by per-vehicle royalties that become payable upon the commencement of serial production. Our royalty revenue depends on the Auto OEM's production volumes over the multi-year lifespan of the vehicle program. The Company also integrates its algorithms into existing infotainment and audio system architectures through Tier-1 suppliers and semiconductor manufacturers, which can facilitate deployment across additional vehicle platforms.

Silentium operates globally, with its headquarters and principal research and development activities based in Israel and additional engineering, technical support and business development presence in North America, Europe and Asia. This enables close collaboration with Auto OEMs and Tier-1 suppliers across major automotive production hubs and supports ongoing program execution, calibration, and validation activities.

While automotive remains the Company's core focus, its Active Acoustic Management (AAM) technology may also be applicable to other transportation and mobility use cases, including rail, commercial vehicles, and heavy machinery, where noise reduction, communication clarity, and acoustic zoning are relevant.

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#### Market Opportunity
The global noise, vibration, and harshness ("NVH") market is a significant part of the automotive supply chain. According to *NVH Market Forecasts*<sup>1</sup>, the global NVH market was approximately $13.9 billion in 2024, with projected growth to about $21.2 billion by 2032, implying a compound annual growth rate of roughly 5.4%. Automotive applications account for the largest share of this market, representing over 40% of total NVH demand according to *NVH Market Forecasts*.

Several industry developments are contributing to increased demand for acoustic management, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Software-defined vehicle architectures.** Auto OEMs are transitioning toward centralized computing architectures in which vehicle functions are implemented and updated through software. This shift creates demand for software-based NVH solutions that can integrate into core vehicle platforms, support model-in-the-loop and hardware-in-the-loop validation workflows, and enable over-the-air (OTA) parameter updates and feature enhancements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Rising consumer expectations.** Cabin acoustics have become a key component of perceived vehicle quality and brand differentiation across vehicle segments. Features historically associated with premium vehicles, such as quiet cabins and immersive audio, are increasingly expected in mid-range vehicles. As a result, OEMs are seeking scalable acoustic solutions that can be deployed across multiple platforms without proportionally increasing hardware cost or weight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Cost, weight, and complexity pressures.** Traditional NVH mitigation relies heavily on passive materials and mechanical components. These approaches increase weight and cost and may be less adaptable to late stage design changes. Software-based acoustic management offers OEMs the potential to achieve acoustic performance targets while reducing material intensity and supporting vehicle lightweighting initiatives, particularly in EV platforms where efficiency is critical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Electrification and EV adoption.** As internal combustion engines are replaced by electric drivetrains, the masking effect of engine noise is eliminated, making road, wind, and HVAC-related noise more perceptible to occupants. Electric vehicles also introduce new high-frequency tonal noise sources from electric motors and power electronics. These changes increase OEM focus on advanced acoustic management solutions capable of addressing broadband and tonal noise dynamically.

Geographically, Asia-Pacific accounts for a significant share of global NVH demand and is experiencing faster growth, driven by high automotive production volumes and accelerating vehicle electrification. North America and Europe also represent substantial NVH markets, characterized by established OEM ecosystems and ongoing investment in acoustic performance and passenger comfort.

Within this broader NVH landscape, Silentium operates primarily in the active acoustics segment, which we believe is positioned for growth as OEMs increasingly adopt software-driven solutions to complement or optimize traditional passive materials.

#### Business Strengths and Competitive Advantages
Silentium's competitive position is based on its software architecture, production experience, intellectual property portfolio, and integration within the automotive supply chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Software-centric system architecture.** The Company's Active Acoustics platform is designed as a system level solution rather than a single-feature algorithm. It supports broadband road noise cancellation, tonal noise mitigation, acoustic zoning, and personalized sound management. By embedding directly into OEM infotainment and compute platforms, the Company aligns with software-defined vehicle architectures and supports lifecycle management through OTA updates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Production validation and installed base.** Silentium's technology has been deployed across 24 vehicle models from five Auto OEMs as of May 31, 2026, with approximately 1.8 million vehicles on the road equipped with its software (see "Business — Our Key Performance Indicators"). The

<sup>1</sup>

Verified Market Research, 2024.

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Company's deployment in production vehicle programs demonstrates its ability to meet automotive reliability, validation, and integration requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Lifecycle economics and customer stickiness.** Once embedded in a vehicle platform, Silentium's software typically remains integrated for the duration of the production lifecycle, generally four to seven years. Auto OEMs that purchase or license the Company's technology directly or indirectly via Tier 1 suppliers for use in their vehicles ("OEM customers") may extend the use of our software to additional models or brands, which can result in additional revenue without requiring a new full qualification cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Intellectual property portfolio.** The Company's patent portfolio includes approximately 73 patents and patent applications across multiple jurisdictions, covering adaptive control, acoustic modeling, zoning and spatial sound shaping, integration tooling, and neural-network-based acoustic control. This intellectual property supports technological differentiation and contributes to barriers to entry in active acoustic management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Ecosystem embeddedness.** Silentium collaborates with Tier-1 suppliers, semiconductor companies, and DSP platform vendors to integrate its algorithms into foundational automotive audio and infotainment architectures. After a Tier-1 supplier licenses our platform for a specific OEM program, it may include our solution in future RFQs, which can broaden our commercial reach through existing supply-chain relationships.

Competition in this market includes passive NVH materials, in-house OEM development efforts, and large Tier-1 audio suppliers that integrate active acoustics into broader infotainment systems. Silentium's approach emphasizes production ready, software-based acoustic management aligned with OEM workflows and development environments.

#### Strategy and Growth Plan
The Company intends to increase adoption of its solutions within the automotive market and, where appropriate, pursue opportunities in selected adjacent transportation markets.

Key elements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Expansion within existing OEM customers.** The Company seeks to broaden deployments across additional models, vehicle generations, and brands within existing OEM relationships. As vehicle architectures evolve, additional acoustic features, such as acoustic zoning and enhanced sound management, may be introduced on supported hardware platforms. We currently expect to use approximately 15% of the net proceeds from this offering to expand our business with existing OEM customers over the two to three years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Winning new OEM programs.** Silentium actively participates in OEM RFQs for next-generation vehicle platforms. Early technical engagement during vehicle definition stages supports alignment with acoustic requirements and increases the likelihood of production awards. We currently expect to use approximately 22% of the net proceeds from this offering to acquire new OEM customers over the three to four years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Deepening Tier-1 and semiconductor partnerships.** By embedding its algorithms within widely adopted DSP and infotainment platforms, the Company aims to shorten integration timelines and ensure inclusion in RFQs where OEMs prefer sourcing through established Tier-1 suppliers. We currently expect to use approximately 12% of the net proceeds from this offering to strengthen our relationships with Tier-1 and semiconductor partners over the two to three years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **R&D investment and product evolution.** The Company continues to invest in algorithm development, early-stage, exploratory research relating to AI-driven acoustic control, and integration tooling that reduces engineering effort and supports predictable validation outcomes. These investments are intended to maintain technological relevance as vehicle architectures evolve. We currently expect

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to use approximately 17% of the net proceeds from this offering for R&D over the two to four years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Selective adjacent market entry.** The Company evaluates opportunities in adjacent mobility segments, including buses, commercial trucks, rail (trains and light rail), and aviation (commercial and business aircraft), where advanced acoustic management can enhance passenger comfort, operator safety, and in-cabin communication clarity. These markets can be addressed using the Company's existing intellectual property and software platform, without requiring the Company to manufacture hardware. We currently expect to use approximately 8% of the net proceeds from this offering to expand into adjacent markets over the two to four years following this offering. See "Use of Proceeds."

The Company does not independently certify vehicles or obtain vehicle level regulatory approvals; OEMs remain responsible for system-level validation and homologation. Silentium designs its software to support OEM compliance with relevant standards and regulatory requirements applicable to automotive software systems.

Silentium's approach is focused on delivering software-based, automotive-grade acoustic solutions designed for production deployment and integration into existing Auto OEM and Tier-1 development workflows.

The Company's experience supporting production vehicle programs and working alongside Tier-1 suppliers reflects the importance of both performance and integration in commercial adoption within the automotive market.

#### Key Performance Indicators
Our management uses certain key performance indicators, or KPIs to make decisions, establish our business plans and forecasts, identify trends affecting our business, and evaluate our overall performance, which KPI are typically used by our competitors in the same industry, but are not recognized under accounting principles generally accepted in the United States. Management believes future trends in such KPIs will reflect our Company's ongoing transition from a development-stage company to a scaled, production-driven software platform within the automotive sector. We define our key performance indicators as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Vehicles on the Road:** "Vehicles on the road" is defined as the cumulative number of manufactured vehicles incorporating our software that are in use. Management typically estimates "vehicles on the road" using historical production data, adjusted for reporting timing variances and management's assumptions regarding production ramp-up. Management believes this metric evaluates the cumulative scale of our software installation in vehicles and assesses the breadth and durability of our OEM program deployments. As of May 31, 2026, we had approximately 1.8 million vehicles on the road, compared to approximately 1.6 million and 1.1 million vehicles on the road as of December 31, 2025 and December 31, 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Automotive Production Programs in Production:** "Automotive production programs in production" represents the number of distinct OEM vehicle programs for which our software has entered serial production and remains active as of the end of the applicable period. A single program encompasses one or more vehicle models or trim levels and may cover multiple vehicle platforms. As of December 31, 2025, we had seven active OEM production programs in serial production, compared to six active OEM production programs as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Automotive Production Volumes:** "Automotive production volumes" represents the total number of vehicles produced during the applicable period that incorporate our software. Management utilizes this metric to evaluate production activity within active OEM programs and to access the scale and ramp-up dynamics of those programs. For the year ended December 31, 2025, automotive production volumes were approximately 600 thousand vehicles, compared to approximately 500 thousand vehicles for the year ended December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **AUTO OEM Customers:** "Auto OEM customers" represents the number of automotive original equipment manufacturers for which we have active automative production programs or awarded

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programs progressing toward serial production. As of December 31, 2025, we had five Auto OEM customers with active production programs, compared to five OEM customers as of December 31, 2024.

For more information on our key performance indicators, please see "Business — Our Key Performance Indicators."

#### Corporate Information
We are an Israeli corporation based in Ness Ziona, Israel, and were incorporated in 1997. Our principal executive offices are located at 5 Golda Meir Street, Ness Ziona, 7403649, Israel. Our telephone number is +972-8-946-8664. Our website address is www.silentium.com. The information contained on our website and available through our website is not incorporated by reference into and should not be considered a part of this prospectus, and the reference to our website in this prospectus is an inactive textual reference only.

#### Summary of Risks Associated with our Business
Our business is subject to a number of risks of which you should be aware before a decision to invest in our Ordinary Shares. You should carefully consider all the information set forth in this prospectus and, in particular, should evaluate the specific factors set forth in the sections titled "Risk Factors" before deciding whether to invest in our Ordinary Shares. Among these important risks are, but not limited to, the following:

#### Risks Related to Our Financial Condition and Capital Requirements
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We are a development-stage company and have a limited operating history on which to assess the prospects for our business, have incurred significant losses since the date of our inception, and anticipate that we will continue to incur significant losses until we are able to successfully commercialize our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We expect that we will need to raise substantial additional capital before we can expect to become profitable from sales of our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our financial statements contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We have identified a material weakness in our internal control over financial reporting, which could adversely affect our ability to produce accurate and timely financial statements and comply with applicable laws and regulations.

#### Risks Related to Our Business and Industry
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We expect to incur substantial research and development costs and devote significant resources to identifying and commercializing new products and services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We will be affected by operational risks and may not be adequately insured for certain risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We operate in evolving markets, which makes it difficult to evaluate our business and future prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We operate in a competitive market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ The markets in which we compete are characterized by rapid technological change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Under applicable employment laws, we may not be able to enforce covenants not to compete and therefore may be unable to prevent our competitors from benefiting from the expertise of some of our former and current employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Changes in public policy or regulatory interpretations applicable to our Active Acoustic Management solutions in the United States could limit adoption and constrain our ability to expand sales.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We are subject to governmental regulation and other legal obligations in jurisdictions outside of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Failure to make competitive technological advances will put us at a disadvantage and may lead to negative operational and financial outcome.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we fail to offer high-quality products or customer service, our business and reputation could suffer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our commercial opportunity would be negatively impacted if our competitors develop and commercialize products or services that offer better performance or are more cost-effective than our products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be subject to the risks associated with future acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our inability to retain management and key employees could impair our future success.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may not be able to successfully manage our planned growth and expansion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We face uncertainty and adverse changes in the economy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our operating results and financial condition may fluctuate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If critical components such as semiconductors or audio chips required for OEM integration or raw materials used to manufacture our products become scarce or unavailable, we may incur delays in manufacturing and delivery of our products, which could damage our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ The integration of our solutions that are licensed to semiconductor companies and Tier-1 audio suppliers for use in OEM platforms requires system-level tuning and validation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we fail to scale our business operations or otherwise manage our future growth effectively as we attempt to grow our company, we may not be able to produce, market, service and sell our products successfully.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we expand our business to include the manufacture and sale of complete products that incorporate hardware, we would be exposed to additional risks that could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our insurance policies are expensive and protect us only from some business risks, which leaves us exposed to significant uninsured liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ The Company's products may be subject to recall or return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our ability to commercialize new products depends on successful development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we release defective products or services, our operating results could suffer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our products and services are complex and could have unknown defects or errors, which may give rise to legal claims against us, diminish our brand or divert our resources from other purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Shortfalls in available external research and development funding could adversely affect the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Negative consumer perception regarding our products could have a material adverse effect on the demand for our products and on our business, results of operations, financial condition and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we fail to successfully promote our product brand, this could have a material adverse effect on our business, prospects, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be subject to electronic communication security risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our business could be adversely affected if our consumer protection and data privacy practices are not perceived as adequate or there are breaches of our security measures or unintended disclosures of our consumer data.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Significant disruptions of our information technology systems or breaches of our data security could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We rely on OEMs, Integrators, and Service Providers, which may expose us to confidentiality and operational risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our planned international operations will expose us to additional market and operational risks, and failure to manage these risks may adversely affect our business and operating results.

#### Risks Related to Our Intellectual Property
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We have been subject to opposition proceedings regarding our QUIET BUBBLE<sup>®</sup> trademark in the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If we are unable to obtain and maintain effective intellectual property rights for our products including for our software platforms, algorithms, and integration technologies, we may not be able to compete effectively in our markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Intellectual property rights of third parties could adversely affect our ability to commercialize our technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Patent policy and rule changes could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of any issued patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be involved in lawsuits to protect or enforce our intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be subject to claims challenging the inventorship of our intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may not be able to protect our intellectual property rights throughout the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may become subject to claims for remuneration or royalties for assigned service invention rights by our employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our patents and trade secrets may not prevent competitors from designing around our technology or developing alternatives.

#### Risks Related to the Offering and the Ownership of Our Ordinary Shares
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If you purchase securities in this offering, you will incur immediate and substantial dilution in the book value of your Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Participation in this offering by certain of our existing shareholders could reduce the public float for our shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our directors, officers and holders of 10% or more of our outstanding Ordinary Shares beneficially own approximately 27.9% of our outstanding Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We have never paid, and we currently do not intend to pay dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Management will have broad discretion as to the use of the net proceeds from this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ The JOBS Act allows us to postpone the date by which we must comply with some of the laws and regulations intended to protect investors and to reduce the amount of information we provide in our reports filed with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ As a "foreign private issuer" we are permitted to and follow certain home country corporate governance practices instead of otherwise applicable SEC and the NYSE American requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be a "passive foreign investment company" for U.S. federal income tax purposes in the current taxable year or may become one in any subsequent taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We may be subject to securities litigation, which is expensive and could divert management attention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Certain recent initial public offerings of companies with public floats comparable to our anticipated public float have experienced extreme volatility that was seemingly unrelated to the underlying performance of such companies.

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#### Risks Related to Our Incorporation, Location and Operations in Israel and Operations in Hong Kong and China
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We are exposed to fluctuations in currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Provisions of Israeli law and our amended and restated articles of association may delay, prevent or otherwise impede a merger with, or an acquisition of, our company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ It may be difficult to enforce a judgment of a United States court against us and our officers and directors in Israel or the United States or to serve process on our officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our amended and restated articles of association to be effective upon the closing of this offering will provide that the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our amended and restated articles of association to be effective upon the closing of this offering will provide that the competent courts of Tel Aviv, Israel shall be the sole and exclusive forum for substantially all disputes between us and our shareholders under the Israeli Companies Law, and the Israeli Securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our headquarters, research and development and other significant operations are located in Israel, and, therefore, our results may be adversely affected by political, economic and military instability in Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Political relations could limit our ability to sell or buy internationally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Your rights and responsibilities as a shareholder will be governed by Israeli law, which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Certain of our research and development activities and programs were supported by Israeli Governmental grants, which may require us to pay royalties for the sale of the applicable products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ The Israeli government grants that we have received for research and development expenditures require us to meet several conditions and may restrict our ability to manufacture some of our product candidates and transfer relevant know-how outside of Israel and require us to satisfy specified conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Our operations may be disrupted as a result of the obligation of management or key personnel to perform military service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Changes to applicable tax laws and regulations or exposure to additional income tax liabilities could affect our future business and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We principally conduct our business operations through Silentium Ltd. in Israel; however due to the long arm provisions under the current PRC laws and regulations, the Chinese government may exercise significant oversight and discretion over our subsidiaries in Hong Kong and mainland China and may intervene in or influence our subsidiaries' operations at any time, which could result in a material change in the operations of our Hong Kong and PRC subsidiaries. Changes in the policies, regulations and rules, and in the enforcement of laws by the Chinese government may also be quick with little or no advance notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ It could be difficult to enforce our contractual, intellectual property and other property rights in the PRC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ PRC laws and regulations governing businesses in the PRC apply directly to our PRC operations and may also be applicable to our Hong Kong subsidiary. These laws are sometimes vague and uncertain and, as a result, the legal and operational risks of operating in China apply directly to our PRC subsidiary and also apply to our Hong Kong subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We could be affected by legal and political considerations involving Hong Kong.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Future inflation in China may increase our operating costs in China.

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#### General Risk Factors
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Raising additional capital would cause dilution to our existing shareholders and may affect the rights of existing shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Sales of a substantial number of our Ordinary Shares in the public market by our existing shareholders could cause our share price to fall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they adversely change their recommendations or publish negative reports regarding our business or Ordinary Shares, our Ordinary Shares price and trading volume could decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We will incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ We have no operating experience as a publicly traded company in the U.S.

#### Implications of Being an "Emerging Growth Company" and a Foreign Private Issuer
 *Emerging Growth Company* 

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ requirement to include only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations disclosure in our initial registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reduced executive compensation disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002.

We may take advantage of these provisions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company upon the earlier to occur of: (1) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (2) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (3) the date on which we are deemed to be a large accelerated filer under the rules of the Securities and Exchange Commission, or the SEC. We may choose to take advantage of some but not all of these reduced burdens, and therefore the information that we provide holders of our ordinary shares may be different than the information you might receive from other public companies in which you hold equity.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards applicable to public companies. We have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies which may make comparison of our financials to those of other public companies more difficult. In addition, the information that we provide in this prospectus may be different than the information you may receive from other public companies in which you hold equity interests.

 *Foreign Private Issuer* 

Upon consummation of this offering, we will report under the Securities Exchange Act of 1934, as amended, or the Exchange Act, as a non-U.S. company with foreign private issuer status. Even after we no longer qualify as an emerging growth company, as long as we continue to qualify as a foreign private issuer

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under the Exchange Act, we will be exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations with respect to a security registered under the Exchange Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial statements and other specified information, and current reports on Form 8-K upon the occurrence of specified significant events.

We will be required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis through press releases, distributed pursuant to the rules and regulations of the NYSE American stock exchange (the "NYSE American"). Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information, which would be made available to you, were you investing in a U.S. domestic issuer.

We may take advantage of these exemptions until such time as we are no longer a foreign private issuer. We would cease to be a foreign private issuer at such time as more than 50% of our outstanding voting securities are held by U.S. residents and any of the following three circumstances applies: (i) the majority of our executive officers or directors are U.S. citizens or residents; (ii) more than 50% of our assets are located in the United States; or (iii) our business is administered principally in the United States.

Both foreign private issuers and emerging growth companies are also exempt from certain more stringent executive compensation disclosure rules. Thus, even if we no longer qualify as an emerging growth company, but remain a foreign private issuer, we will continue to be exempt from the more stringent compensation disclosures required of companies that are neither an emerging growth company nor a foreign private issuer.

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### T HE O FFERING

---

| | |
|:---|:---|
| Ordinary Shares offered by us  | 2,150,000 Ordinary Shares |
|  Ordinary Shares to be issued and outstanding after this <br> offering  | 5,503,228 Ordinary Shares, or 5,825,728 Ordinary Shares if the representative of the underwriters (the "Representative") exercises in full its over-allotment option to purchase additional Ordinary Shares. |
| Over-allotment option  | We have granted the Representative an option for a period of up to 45 days to purchase, at the public offering price, up to 322,500 additional Ordinary Shares, less underwriting discounts, to cover over-allotments, if any. |
| Use of proceeds  | We expect to receive approximately $12.5 million in net proceeds from the sale of Ordinary Shares offered by us in this offering (approximately $14.7 million if the Representative exercises its over-allotment option in full), based upon an assumed public offering price of $7.00 per Ordinary Share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting the underwriting discount and estimated offering expenses payable by us. <br> We intend to use the net proceeds from this offering (i) to acquire new OEM customers; (ii) for R&D; (iii) to expand our business with existing OEM customers; (iv) to strengthen our relationships with Tier-1 and semiconductor partners; (v) to expand into adjacent markets; and (vi) for working capital and general corporate purposes. <br> The amounts and schedule of our actual expenditures will depend on multiple factors. As a result, our management will have broad discretion in the application of the net proceeds of this offering. <br> See "Use of Proceeds" for more information about the intended use of proceeds from this offering.  |
| Risk factors  | Investing in our securities involves a high degree of risk. You should read the "Risk Factors" section starting on page 15 of this prospectus for a discussion of factors to consider carefully before deciding to invest in the Ordinary Shares. |
| symbol:  | We have applied to list the Ordinary Shares on the NYSE American under the symbol "SIAI". |

---

The number of the Ordinary Shares to be issued and outstanding immediately after this offering as shown above assumes that all of the Ordinary Shares offered hereby are sold, is based on 407,521 Ordinary Shares issued and outstanding as of June 8, 2026, and includes an aggregate of 2,945,706 Ordinary Shares issuable upon the conversion of all of our outstanding preferred shares and all simple agreements for future equity (the "SAFEs") immediately prior to the closing of this offering. This number excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 200,305 Ordinary Shares issuable upon the exercise of warrants outstanding as of such date, at a weighted average exercise price of $16.85;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 373,757 Ordinary Shares issuable upon the exercise of options held by directors, employees and consultants under our 2013 Israeli Share Option Plan, or the 2013 Plan, outstanding as of such date, at a weighted average exercise price of $9.30, of which 135,354 were vested as of such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 726,243 Ordinary Shares reserved for future issuance under our 2013 Plan.

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Unless otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise by the representative of the underwriters of the over-allotment option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise by the representative of the underwriters of the warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise of outstanding warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the conversion of all of our outstanding preferred shares (including 19,034 preferred shares issued upon the automatic conversion of warrants) into an aggregate of 973,554 Ordinary Shares immediately prior to the closing of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 1,972,153 Ordinary Shares issuable upon the conversion of several SAFEs in the aggregate amount of $2,991,200 (of which $34,700 remains unfunded as of June 8, 2026), which will occur upon the completion of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the 2,060-for-1 Reverse Split, which we completed in May 2026, and the customary adjustments to our outstanding options and warrants.

See "Description of Share Capital" for additional information.

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### S UMMARY C ONSOLIDATED F INANCIAL D ATA
The following table summarizes our financial data. We have derived the following statements of operations data for the years ended December 31, 2025 and 2024 and the balance sheet data as of December 31, 2025 from our audited consolidated financial statements included elsewhere in this prospectus. Such financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our historical results are not necessarily indicative of the results that may be expected in the future. Financial results for the year ended December 31, 2025 are not necessarily indicative of the results that may be expected in the future. The following summary financial data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our audited consolidated financial statements and related notes included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
| **(in thousands of USD, except share and per share data)**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| **(in thousands of USD, except share and per share data)**  | **2025**  | **2024**  |
| **Statements of Operations Data:**  |  |  |
| Revenues  | $3949 | 3911 |
| Cost of revenues  | 1248 | 995 |
| Research and development expenses, net  | 3914 | 3826 |
| Selling and marketing expenses  | 1087 | 1458 |
| General and administrative expenses  | 2047 | 1968 |
| Operating loss  | (4347) | (4336) |
| Finance income (expenses), net  | (211) | 623 |
| Net loss before taxes  | (4558) | (3713) |
| Tax  | 158 | 124 |
| Net loss for the year  | (4716) | (3837) |
| Basic and diluted loss per share |  |  |
|  Weighted average number of shares outstanding used in computing basic and diluted loss per share  |  |  |
| Earnings (Loss) per share (Basic)<sup>(1)</sup>  | $(10.67) | 0.08 |
| Loss per share (Diluted)  | $(10.67) | (0.09) |
| Weighted average ordinary shares (Basic)  | 443372 | 51774703 |
| Weighted average ordinary shares (Diluted)  | 443372 | 52165443 |

---

<sup>1)</sup>

Although we incurred a net loss for the year in 2024, for purposes of calculating earnings per share (basic), we reduced such loss by $8,048,000 due to an extinguishment of the pre-existing Preferred Shares in connection with the Series C Preferred Share Purchase and Recapitalization Agreement in September 2024 as per SEC guidance codified in ASC 480-10-S99 and ASC 260-10-S99-2. For more information, see "Note 12(b): Shareholders' Equity and Temporary Equity" and "Note 15: Net Earnings (Loss) Per Share Attributable to Ordinary Shareholders" to our audited consolidated financial statements for the years ended December 31, 2025 and 2024 included elsewhere in this prospectus.

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#### Balance Sheet Data:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands of USD)**  | **As of December 31, 2025**  | **As of December 31, 2025**  | **As of December 31, 2025**  |
| **(in thousands of USD)**  | **Actual**  | **Pro Forma<sup>(1)</sup>**  | **Pro Forma <br> As Adjusted<sup>(2)</sup>**  |
|  | **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  |
| Cash and cash equivalents  | $831 | 2463 | 14929 |
| Total assets  | $3705 | 5337 | 17803 |
| Total liabilities  | $7062 | 5738 | 5153 |
| Temporary equity  | $7536 | 0 | 0 |
| Total shareholders' equity (deficit)  | $(10893) | (401) | 12650 |

---

<sup>1)</sup>

Pro forma data gives effect to the following events as if each event had occurred on or before December 31, 2025: (i) the conversion of 973,554 preferred shares (including 19,034 preferred shares issued upon the automatic conversion of warrants) into 973,554 Ordinary Shares; and (ii) the issuance of 1,972,153 Ordinary Shares upon the conversion of the SAFEs in the aggregate amount of $2,991,200 (including approximately $1,666,800 in committed capital from SAFEs executed between January and May 2026, of which $34,700 remains unfunded as of June 8, 2026), which will automatically convert upon the consummation of this offering, based on an assumed initial public offering price of $7.00 per Ordinary Share, which is the midpoint of the price range set forth on the cover page of this prospectus.

<sup>2)</sup>

Pro forma as adjusted data gives additional effect to the sale of 2,150,000 Ordinary Shares in this offering at an initial public offering price of $7.00 per Ordinary Share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, as if the sale had occurred on December 31, 2025.

The as adjusted information discussed above is illustrative only and will be adjusted based on the actual initial public offering price and other terms of our initial public offering determined at pricing. Each $1.00 increase (decrease) in the assumed initial public offering price of $7.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma as adjusted amount of each of cash, cash equivalents and short-term deposits, total assets and shareholders' equity (deficiency) by $1,978 thousand, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of 100,000 shares in the number of Ordinary Shares offered by us at the assumed initial public offering price would increase (decrease) each of cash, cash equivalents and short-term deposits, total assets and shareholders' equity (deficiency) by $644 thousand.

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### R ISK F ACTORS
 *Investing in our Ordinary Shares involves a high degree of risk. You should carefully consider the risks and uncertainties described below, in addition to the other information set forth in this prospectus, including the consolidated financial statements and the related notes included elsewhere in this prospectus, before purchasing our Ordinary Shares. If any of the following risks actually occurs, our business, financial condition, cash flows and results of operations could be negatively impacted. In that case, the trading price of our Ordinary Shares would likely decline and you might lose all or part of your investment.* 

#### Risks Related to Our Financial Condition and Capital Requirements
 ***We are a development-stage company and have a limited operating history on which to assess the prospects for our business, have incurred significant losses since the date of our inception, and anticipate that we will continue to incur significant losses until we are able to successfully commercialize our products.***

We have incurred net losses since our inception in 1997, including net losses of $4,716,000 for the year ended December 31, 2025, and $3,837,000 for the fiscal year ended December 31, 2024. As of December 31, 2025, we had accumulated losses of $77,558,000.

We have devoted substantially all of our financial resources to develop our products and have financed our operations primarily through the issuance of equity securities. We expect to continue to incur significant losses until we are able to successfully commercialize our products. The amount of our future net losses will depend, in part, on completing the development of our products, the rate of our future expenditures and our ability to obtain funding through the issuance of our securities, strategic collaborations or grants. We anticipate that our expenses will increase substantially if and as we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ continue the development of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ establish a sales, marketing, distribution and technical support infrastructure to commercialize our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ seek to identify, assess, acquire, license, and/or develop other products and subsequent generations of our current products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ seek to maintain, protect, and expand our intellectual property portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ seek to attract and retain skilled personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ create additional infrastructure to support our operations as a public company and our product development and planned future commercialization efforts.

 ***We expect that we will need to raise substantial additional capital before we can expect to become profitable from sales of our products. This additional capital may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations.***

We expect that we will require substantial additional capital to commercialize our products. In addition, our operating plans may change as a result of many factors that may currently be unknown to us, and we may need to seek additional funds sooner than planned. Our future capital requirements will depend on many factors, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the scope, rate of progress, results and cost of product development, and other related activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the cost of establishing commercial supplies of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the cost and timing of establishing sales, marketing, and distribution capabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the terms and timing of any collaborative and other arrangements that we may establish.

Any additional fundraising efforts may divert our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our products. In addition, we cannot guarantee that

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future financing will be available in sufficient amounts or on terms acceptable to us, if at all. Moreover, the terms of any financing may adversely affect the holdings or the rights of our shareholders and the issuance of additional securities by us, whether equity or debt, or the possibility of such issuance, may cause the market price of our Ordinary Shares to decline. The incurrence of indebtedness could result in increased fixed payment obligations, and we may be required to agree to certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable, and we may be required to relinquish rights to some of our technologies or products or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results and prospects.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization of our products or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and results of operations.

 ***Our financial statements contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern, which could prevent us from obtaining new financing on reasonable terms or at all.***

Our audited financial statements for the year ended December 31, 2025 contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern. We have incurred losses in each year since our inception, including net losses of $4,716,000 and $3,837,000 for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, we have accumulated losses of $77,558,000. These events and conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on our ability to continue as a going concern. The financial statement for the year ended December 31, 2025 does not include any adjustments that might result from the outcome of this uncertainty. This going concern opinion could materially limit our ability to raise additional funds through the issuance of equity or debt securities or otherwise. Future financial statements may include an explanatory paragraph with respect to our ability to continue as a going concern. Until we can generate significant recurring revenues, we expect to satisfy our future cash needs through debt or equity financing. We cannot be certain that additional funding will be available to us on acceptable terms, if at all. If funds are not available, we may be required to delay, reduce the scope of, or eliminate research or development plans for, or commercialization efforts with respect to our products. This may raise substantial doubts about our ability to continue as a going concern.

 ***We have identified material weaknesses in our internal controls over financial reporting, and if we fail to remediate these weaknesses or maintain effective internal controls, our business and results of operations could be adversely affected.***

We have identified material weaknesses in our internal controls related to lack of sufficient accounting resources with relevant technical accounting skills to address issues related to the financial statement close process, and because of the size of the Company and its staff complement, we were not able to sufficiently design internal controls to provide the appropriate level of oversight regarding the financial recordkeeping and review of the Company's financial reporting over financial reporting. Specifically, we did not maintain effective information technology general controls for certain IT systems that support our financial reporting processes, and we did not design and implement effective controls to address segregation of duties conflicts.

These material weaknesses could result in a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements would not be prevented or detected on a timely basis. As a result, our ability to produce accurate and timely financial statements or comply with applicable laws and regulations could be impaired.

We are in the process of designing and implementing remediation measures to address these material weaknesses, including enhancing our IT general controls, improving segregation of duties through additional

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personnel and system-based controls, and strengthening our financial reporting processes. However, we cannot assure you that these remediation efforts will be successful or that we will be able to remediate these material weaknesses on a timely basis. If we fail to remediate these material weaknesses or otherwise maintain an effective system of internal control over financial reporting, investors could lose confidence in our financial reporting, and the trading price of our securities could be adversely affected.

#### Risks Related to Our Business and Industry
 ***We expect to incur substantial research and development costs and devote significant resources to identifying and commercializing new products and services, which could significantly reduce our profitability and may never generate revenue.***

Our future growth depends on penetrating new markets, adapting existing products to new applications and introducing new products and services that achieve market acceptance. We plan to incur substantial research and development costs as part of our efforts to design, develop and commercialize new products and services and enhance our existing products. We believe that there are significant opportunities in a number of business areas. Because we account for research and development costs as operating expenses, these expenditures will adversely affect our earnings in the future. Further, our research and development programs may not produce successful results, and its new products and services may not achieve market acceptance, create any additional revenue or become profitable, which could materially harm our business, prospects, financial results and liquidity.

#### The Company will be affected by operational risks and may not be adequately insured for certain risks.
The Company will be affected by a number of operational risks and the Company may not be adequately insured for certain risks, including: catastrophic accidents; fires; blockades or other acts of social activism; changes in the regulatory environment; impact of non-compliance with laws and regulations; natural phenomena, such as inclement weather conditions, floods, earthquakes and ground movements. There is no assurance that the foregoing risks and hazards will not result in damage to, or destruction of, the Company's technologies, personal injury or death, environmental damage, adverse impacts on the Company's operation, costs, monetary losses, potential legal liability and adverse governmental action, any of which could have an adverse impact on the Company's future cash flows, earnings and financial condition. Also, the Company may be subject to or affected by liability or sustain loss for certain risks and hazards against which the Company cannot insure or which the Company may elect not to insure because of the cost. This lack of insurance coverage could have an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.

#### We operate in evolving markets, which makes it difficult to evaluate our business and future prospects.
Our products are sold in rapidly evolving markets. The commercial real-time, closed-loop control subset of Active Acoustics, or Active Acoustic Management or AAM, solutions market is in the early stages of customer adoption. Accordingly, our business and future prospects may be difficult to evaluate. We cannot accurately predict the extent to which demand for our products and services will increase, if at all. The challenges, risks and uncertainties frequently encountered by companies in rapidly evolving markets could impact our ability to do the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ generate sufficient revenue to reach and maintain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ acquire and maintain market share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ manage growth in operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ develop and renew contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ attract and retain additional engineers and other highly-qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ successfully develop and commercially market new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ adapt to new or changing policies and spending priorities of governments and government agencies; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ access additional capital when required and on reasonable terms.

If we fail to successfully address these and other challenges, risks and uncertainties, its business, results of operations and financial condition would be materially harmed.

#### We operate in a competitive market.
We face competition and new competitors will continue to emerge throughout the world. Competition in our markets may increase, and competing products offered by other suppliers may reduce our ability to win or retain vehicle programs, which could cause our revenue to fall below expectations. It is expected that competition in these markets will intensify.

If competitors develop and market more successful products or services, offer competitive products or services at lower price points, or we do not produce consistently high-quality and well-received products and services, revenues, our margins and profitability will be materially affected.

Our ability to compete effectively will depend on, among other things, our pricing and performance of our software products and related integration support, quality of customer service, development of new and enhanced products and integration tooling in response to customer demands and changing technology, reach and quality of sales and distribution channels and capital resources. Competition could lead to a reduction in the rate at which we win new vehicle programs or expand within existing platforms, a decrease in our market share and a decline in our revenue.

 ***The markets in which we compete are characterized by rapid technological change, which requires us to develop new software-based products, solutions and product enhancements, and could render our existing products obsolete.***

Continuing technological changes in the market for our products could make our products less competitive or obsolete, either generally or for particular applications. Our future success will depend upon our ability to develop and introduce a variety of new capabilities and enhancements to our existing software platforms, such as Quiet Bubble<sup>®</sup> (QB™) for broadband Active Acoustics management and Personal Sound Bubble<sup>®</sup> (PSB™) for individualized acoustic zones, service offerings, as well as introduce a variety of new product offerings, to address the changing needs of the markets in which we offers products. Delays in introducing new products and enhancements, the failure to choose correctly among technical alternatives or the failure to offer innovative products or enhancements at competitive prices may cause existing and potential customers to purchase the products of our competitors. While our current products are software solutions integrated into OEM platforms, any expansion into hardware or complete systems could expose us to additional operational and regulatory risks.

If we are unable to devote adequate resources to develop new products or cannot otherwise successfully develop new products or enhancements that meet customer requirements on a timely basis, our products could lose market share, our revenue could decline, and we could experience operating losses.

 ***Under applicable employment laws, we may not be able to enforce covenants not to compete and therefore may be unable to prevent our competitors from benefiting from the expertise of some of our current and former employees.***

We generally enter into non-competition agreements with our employees. These agreements prohibit our employees from competing directly with us or working for our competitors or clients for a limited period after they cease working for us. We may be unable to enforce these agreements and it may be difficult for us to restrict our competitors from benefiting from the expertise that our current and former employees or consultants developed while working for us. 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 that 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 we cannot demonstrate that such interests will be harmed, we may

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be unable to prevent our competitors from benefiting from the expertise of our former employees or consultants and our ability to remain competitive may be diminished.

 ***Changes in public policy or regulatory interpretations applicable to our Active Acoustic Management solutions in the United States could limit adoption and constrain our ability to expand sales.***

Our Active Acoustic Management, or AAM, solutions are not subject to specific federal regulatory approvals in the United States. AAM refers to technologies that electronically control and optimize sound environments by reducing unwanted noise (such as through spatial active noise cancellation), creating personalized sound zones, and enhancing acoustic characteristics of spaces. These solutions combine real-time sound analysis, digital signal processing, and existing audio system components as part of our current integration model to deliver improved acoustic comfort and tailored sound experiences. While these technologies are conceptually related to a specific technique used within Active Acoustics to reduce targeted noise components (ANC), they go beyond noise suppression to include sound zoning and acoustic enhancement.

However, their use in commercial and industrial environments must comply with general noise-related regulations, including the Noise Control Act of 1972, Occupational Safety and Health Administration (OSHA) workplace noise exposure standards, and applicable state and local noise ordinances. These regulations primarily govern permissible noise levels and worker safety rather than the technology itself. While we believe our solutions support compliance with these requirements, any changes in public policy, new regulations, or interpretations that restrict the use of Active Acoustic Management systems — such as concerns about masking alarms or emergency signals — could limit our ability to expand sales to certain markets.

 ***We are subject to governmental regulation and other legal obligations in jurisdictions outside of the United States, and our actual or perceived failure to comply with such obligations could adversely affect our business and operating results.***

The regulatory framework for AAM-based technology worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future. Our products are subject to a variety of laws and regulations and may be subject to other or additional laws and regulations in the future. The use of our products is also subject to certain authorization, certification and compliance requirements that vary depending on the jurisdiction in which our products are used. See "Business — Government Regulation" for additional information.

Compliance with any new obligations imposed by government bodies and agencies depends in part on how particular regulators interpret and apply them. If we fail to comply with these obligations or if regulators assert that we have failed to comply with these obligations, we may be subject to certain fines, sanctions, or other penalties, as well as litigation. Further, it could hinder the Company's ability to retain existing customers and attract new customers, particularly if our products were perceived to be less compliant than our competitors' products, which would have a material adverse impact on the Company's prospects.

Any inability to adequately address safety and privacy concerns, even if unfounded, or comply with applicable laws, regulations, policies, industry standards, contractual obligations or other legal obligations could result in additional cost and liability to us, damage our reputation, inhibit sales, and adversely affect our business and operating results.

#### Failure to make competitive technological advances will put us at a disadvantage and may lead to negative operational and financial outcome.
We are focused on the development and application of AAM technologies. Technology markets, by their very nature, are continually evolving. Particularly, the market of AAM technologies may become increasingly competitive. To succeed, we will need to research and develop enhancements to our existing software products, as well as new software products that are suitable for existing applications of AAM technology and new applications that might not yet exist.

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There is no guarantee that our research and development activities will meet the changing needs of our customers and markets. At the same time, products and technologies developed by others may render our products and technology obsolete or non-competitive, which could materially adversely affect our business, operating results and financial prospects.

#### If we fail to offer high-quality products or customer service, our business and reputation could suffer.
We believe global branding is critical for the long-term success of our business. We will continue to differentiate ourselves from our competitors through our commitment to a high-quality products and customer experience. Accordingly, high-quality products and customer service are important for the growth of our business and any failure to maintain such standards, or a related market perception, could affect our ability to sell products and services to existing and prospective customers.

Negative commentary or complaints may have a damaging impact on our ability to achieve our business objectives. Further, as our business model is based on royalty-based revenue from Auto OEM production programs (including programs sourced through Tier-1 suppliers and semiconductor partners), poor customer experiences may result in loss of customers, adverse publicity, litigation, regulatory enquiries and reduction of use of our products.

 ***Our commercial opportunity could be reduced if our competitors develop and commercialize products or services that offer better performance or are more cost-effective to use than our products or services.***

The markets in which we operate are particularly competitive due to the lucrative nature of the contracts available within the automotive active acoustics and NVH solutions market. Our performance could be adversely affected if existing or new competitors increase their market share through technology development, marketing and increased product or technology offerings or through price reduction for alternatives.

#### We may be subject to the risks associated with future acquisitions.
As part of our overall business strategy, we may pursue select strategic acquisitions that would provide additional product or service offerings, additional industry expertise, and a stronger industry presence in both existing and new jurisdictions. Any such future acquisitions, if completed, may expose us to additional potential risks, including risks associated with: (a) the integration of new operations, services and personnel; (b) unforeseen or hidden liabilities; (c) the diversion of resources from our existing business and technology; (d) potential inability to generate sufficient revenue to offset new costs; (e) the expenses of acquisitions; or (f) the potential loss of or harm to relationships with both employees and existing users resulting from its integration of new businesses.

#### If we are unable to retain management and key employees our future success could be impaired.
Our future success depends substantially on the continued services of our executive officers and key employees. If one or more of our executive officers or key employees were unable or unwilling to continue in their present positions, we may not be able to replace them easily or at all. In addition, if any of our executive officers or key employees joins a competitor or forms a competing company, we may lose experience, know-how, as well as business partners. These executive officers and key employees could develop AAM technologies that could compete with and take customers and market share away from us.

#### We may not be able to successfully manage our planned growth and expansion.
We expect to continue to make investments in our products in development. We expect that our annual operating expenses will continue to increase as we invest in business development, marketing, research and development, manufacturing and production infrastructure, and develop customer service and support resources for future customers. Failure to expand operational and financial systems timely or efficiently may result in operating inefficiencies, which could increase costs and expenses to a greater extent than we anticipate and may also prevent us from successfully executing our business plan. We may not be able to offset the costs of operation expansion by leveraging the economies of scale from our growth in negotiations

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with our suppliers and contract manufacturers. Additionally, if we increase our operating expenses in anticipation of the growth of our business and this growth falls short of our expectations, our financial results will be negatively impacted.

If our business grows, we will have to manage additional product design projects, materials procurement processes, and sales efforts and marketing for an increasing number of products, as well as expand the number and scope of our relationships with suppliers, distributors and end customers. If we fail to manage these additional responsibilities and relationships successfully, we may incur significant costs, which may negatively impact our operating results. Additionally, in our efforts to be first to market with new products with innovative functionality and features, we may devote significant research and development resources to products and product features for which a market does not develop quickly, or at all. If we are not able to predict market trends accurately, we may not benefit from such research and development activities and our results of operations may suffer.

As our future development and commercialization plans and strategies develop, we expect to need additional managerial, operational, sales, marketing, financial and legal personnel. Our management may need to divert a disproportionate amount of its attention away from our day-to-day activities and devote a substantial amount of time to managing these growth activities. In particular, a period of significant growth in the number of personnel could place a strain upon our management systems and resources. We may not be able to effectively manage the expansion of our operations, which may result in weaknesses in our infrastructure, operational mistakes, loss of business opportunities, failure to deliver and timely deliver our products to customers, loss of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and may divert financial resources from other projects, such as the development of additional new products.

Our future success will depend in part on the ability of our officers and other key employees to implement and improve financial and management controls, reporting systems and procedures on a timely basis and to expand, train, motivate and manage our workforce. Our current and planned personnel, systems, procedures and controls may be inadequate to support our future operations. If our management is unable to effectively manage our growth, our expenses may increase more than expected, our ability to generate and/or grow revenue could be reduced, and we may not be able to implement our business strategy.

#### We face uncertainty and adverse changes in the economy.
Uncertainty and adverse changes in the economy could negatively impact our business. Future economic distress may result in a decrease in demand for our products, which could have a material adverse impact on our operating results and financial condition. Uncertainty and adverse changes in the economy could also increase costs associated with developing and publishing products, increase the cost and decrease the availability of sources of financing, and increase our exposure to material losses from bad debts, any of which could have a material adverse impact on our financial condition and operating results.

#### Our operating results and financial condition have fluctuated in the past and may fluctuate in the future.
Even if we are successful in marketing our products to the market, our operating results and financial condition may fluctuate from quarter to quarter and year to year and are likely to continue to vary due to several factors, many of which will not be within our control. If our operating results do not meet the guidance that we provide to the marketplace or the expectations of securities analysts or investors, the market price of our Ordinary Shares will likely decline. Fluctuations in our operating results and financial condition may be due to several factors, including those listed below and those identified throughout this "Risk Factors" section:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the degree of market acceptance of our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the mix of products and services that we sell during any period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in the amount that we spend to develop, acquire or license new products, technologies or businesses;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in the amounts that we spend to promote our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in the cost of satisfying our warranty obligations and servicing our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ delays between our expenditures to develop and market new or enhanced systems and consumables and the generation of sales from those products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ development of new competitive products and services by others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ difficulty in predicting sales patterns and reorder rates that may result from a multi-tier distribution strategy associated with new product categories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ litigation or threats of litigation, including intellectual property claims by third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in accounting rules and tax laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in regulations and standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the geographic distribution of our sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our responses to price competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ general economic and industry conditions that affect end-user demand and end-user levels of product design and manufacturing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in interest rates that affect returns on our cash balances and short-term investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ changes in dollar-shekel exchange rates that affect the value of our net assets, future revenues and expenditures from and/or relating to our activities carried out in those currencies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the level of research and development activities by our company.

Due to all of the foregoing factors, and the other risks discussed herein, you should not rely on quarter-to-quarter comparisons of our operating results as an indicator of our future performance.

 ***If critical components such as semiconductors or audio chips required for OEM integration or raw materials used to manufacture our products become scarce or unavailable, then we may incur delays in manufacturing and delivery of our products, which could damage our business.***

We do not manufacture hardware; however, development and validation of our software solutions depend on access to hardware platforms. We must procure, and in some cases design and manufacture, hardware development platforms to test and optimize our software for integration into OEM systems as part of our current integration model. Our reliance on these platforms involves risks and uncertainties, including potential supply shortages, price increases, and delays in obtaining components such as semiconductors, audio processors, and related electronics. If we are unable to secure or develop the necessary hardware platforms on a timely basis and at acceptable cost, our ability to complete development, validate performance, and deliver software solutions to customers could be adversely affected.

Additionally, shortages in electronic components required for OEM integration, such as chips or audio modules, could impact our customers' ability to implement our technology, which may delay commercialization and harm our business, results of operations and financial condition.

 ***Our solutions are licensed to semiconductor companies and Tier-1 audio suppliers and integrated into Auto OEM platforms; integration requires system-level tuning and validation, which involves risk of defects or performance issues.***

Integration requires system-level tuning and validation to help ensure software stability and correct interaction with OEM components. If our software or integrated systems incorporating our software contain defects, errors, or performance issues-whether upon initial deployment, during updates, or after release — Auto OEMs or Tier-1 partners may suspend integration, require remediation, or terminate agreements. Such events could lead to delays, increased development and warranty costs, and damage to our reputation and customer relationships.

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Although we do not manufacture hardware for commercial sale, our technology operates on third-party hardware platforms, and we occasionally provide prototypes or demonstrators. If any of these prototypes, or any integrated vehicle system or component that includes our software, is alleged to be defective or unsafe, we could face contractual, product-liability, or indemnity claims from Auto OEMs or Tier-1 partners and may be subject to regulatory scrutiny. Any decision to conduct a service campaign or product recall would be made by the Auto OEM and could, in certain cases, implicate software supplied by us as part of an integrated system. Current or future automotive safety, cybersecurity, or software-integrity regulations may also subject integrated vehicle systems incorporating our software to increased scrutiny, mandatory corrective actions, or regulatory investigations.

#### Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market.
Government vehicle safety regulations are an important factor for our business. Historically, these regulations have imposed ever-more stringent safety regulations for vehicles. These safety regulations often require, or customers demand, that vehicles have more safety features and more advanced safety products.

While we believe increasing automotive safety standards will present a market opportunity for our technology, government safety regulations are subject to change based on a number of factors that are not within our control, including new scientific or technological data, adverse publicity regarding industry recalls and safety risks, accidents involving our technology, domestic and foreign political developments or considerations, and litigation relating to our technology and our competitors' technology. Changes in government regulations, as well as changes or evolution in court doctrines in interpreting those regulations, especially in the automotive industry, could adversely affect our business. If government priorities shift and we are unable to adapt to changing regulations or to court interpretations of those regulations, our business may be materially and adversely affected.

Federal and local regulators impose more stringent compliance and reporting requirements in response to product recalls and safety issues in the automotive industry. As the vehicles that embed our technology go into production, we may become subject to stringent requirements, including a duty to report, subject to strict timing requirements, safety defects with our products. Such rules and regulations may impose potentially significant civil penalties for violations including the failure to comply with such reporting actions. If we cannot rapidly address any safety concerns or defects with our products, our business, results of operations and financial condition may be adversely affected.

For example, the U.S. Department of Transportation has issued regulations that require manufacturers of certain autonomous vehicles to provide documentation covering specific topics to regulators, such as how automated systems detect objects on the road, how information is displayed to drivers, what cybersecurity measures are in place and the methods used to test the design and validation of autonomous driving systems. As cars that carry our sensors go into production, the obligations of complying with safety regulations could increase and it could require increased resources and adversely affect our business.

 ***If we fail to scale our business operations or otherwise manage our future growth effectively as we attempt to grow our company, we may not be able to produce, market, service and sell our products successfully.***

We intend to expand our operations significantly, which will require hiring, retaining and training new personnel, controlling expenses, expanding existing production facilities and establishing new facilities, and implementing administrative infrastructure, systems, and processes. Our future operating results depend to a large extent on our ability to manage this expansion and growth successfully. Failure to expand operational and financial systems in a timely or efficient manner may result in operating inefficiencies, which could increase costs and expenses to a greater extent than we anticipate and may also prevent us from successfully executing our business plan. We may not be able to offset the costs of operation expansion by leveraging the economies of scale from our growth in negotiations with our suppliers and contract manufacturers. Additionally, if we increase our operating expenses in anticipation of the growth of our business and this growth falls short of our expectations, our financial results will be materially adversely impacted.

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If our business grows, we will have to manage additional product design projects, materials procurement processes, and sales and marketing efforts for an increasing number of products, as well as expand the number and scope of our relationships with suppliers, distributors and end customers. If we fail to manage these additional responsibilities and relationships successfully, we may incur significant costs, which may materially adversely impact our operating results. Additionally, in our efforts to be first to market with new products with innovative functionality and features, we may devote research and development resources to products and product features for which a market does not develop quickly, or at all. If we are not able to predict market trends accurately, we may not benefit from such research and development activities, and our results of operations may suffer.

As our future development and commercialization plans and strategies develop, we expect to need additional managerial, operational, sales, marketing, financial and legal personnel. Our management may need to divert a disproportionate amount of its attention away from our day-to-day activities and devote a substantial amount of time to manage these growth activities. In particular, a period of significant growth in the number of personnel could place a strain upon our management systems and resources. We may not be able to effectively manage the expansion of our operations, which may result in weaknesses in our infrastructure, operational mistakes, loss of business opportunities, failure to deliver or timely deliver our products to customers, loss of employees and reduced productivity among remaining employees. Our expected growth could require significant capital expenditures and may divert financial resources from other projects, such as the development of additional new products.

Our future will depend in part on the ability of our officers and other key employees to implement and improve financial and management controls, reporting systems and procedures on a timely basis and to expand, train, motivate and manage our workforce. Our current and planned personnel, systems, procedures and controls may be inadequate to support our future operations. If our management is unable to effectively manage our growth, our expenses may increase more than expected, our ability to generate and/or grow revenue could be reduced, and we may not be able to implement our business strategy.

Furthermore, we have no experience to date in high-volume manufacturing of our products and we cannot assure that we will be able to develop efficient, automated, low-cost manufacturing capabilities and processes, and reliable sources of component supply, that will enable us to meet the quality, price, engineering, design and production standards, as well as the production volumes, required to successfully market our services and products as our operations expand. Any failure to effectively manage our growth could materially and adversely affect our business, prospects, financial condition, results of operations, and cash flows.

 ***If we expand our business to include the manufacture and sale of complete products that incorporate hardware, we would be exposed to additional risks that could adversely affect our business, financial condition and results of operations.***

We currently focus on developing software solutions that are integrated into OEM platforms, and we do not manufacture or sell complete products that include hardware components. If, in the future, we elect to design, manufacture and sell complete products, we would be required to assume risks that we do not currently face. These risks include, among others, challenges associated with hardware design and sourcing, manufacturing and quality control, supply chain management, product certification and compliance with applicable safety and regulatory requirements, and the potential for product defects, failures or recalls. In addition, manufacturing and selling complete products could increase our operating costs, require significant capital investment, and expose us to product liability, warranty and indemnification claims. Any failure to manage these risks successfully could harm our reputation, result in delays or increased costs, and have a material adverse effect on our business, financial condition and results of operations.

#### Our insurance policies are expensive and protect us only from some business risks, which leaves us exposed to significant uninsured liabilities.
We do not carry insurance for all categories of risk that our business may encounter. Although we have general and product liability insurance that we believe is appropriate, this insurance is subject to deductibles and coverage limitations. Our current product liability insurance may not continue to be available to us on

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acceptable terms, if at all, and, if available, coverage may not be adequate to protect us against any future product liability claims. If we are unable to obtain insurance at an acceptable cost or on acceptable terms or otherwise protect against potential product liability claims, we could be exposed to significant liabilities. A product liability claim, recall or other claim with respect to uninsured liabilities or for amounts in excess of insured liabilities could negatively affect our business, financial condition and results of operations.

Additionally, the substantial increase in the cost of directors' and officers' liability insurance may cause us to opt for reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified people to serve on our board of directors, on our board committees or as executive officers. We do not know if we will be able to maintain existing insurance with adequate levels of coverage. Any significant uninsured liability may require us to pay substantial amounts, which would negatively affect our business, financial condition and results of operations.

#### The Company's products may be subject to recall or return.
Manufacturers and distributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, safety concerns, packaging issues and inadequate or inaccurate labeling disclosure. If any of the Company's equipment were to be recalled due to an alleged product defect, safety concern or for any other reason, the Company could be required to incur unexpected expenses of the recall and any legal proceedings that might arise in connection with the recall. The Company may lose a significant amount of sales and may not be able to replace those sales at an acceptable margin or at all. In addition, a product recall may require significant management time and attention. Additionally, product recalls may lead to increased scrutiny of the Company's operations by regulatory agencies, requiring further management time and attention and potential legal fees, costs and other expenses.

#### Our ability to commercialize new products depends on successful development.
We are investing in new products and software solutions, including AI-enabled acoustic control features and our Personal Sound Bubble (PSB™) platform, as well as other technologies that we may develop in the future. The successful commercialization of these offerings depends on the completion of development, customer validation, and market adoption, each of which is uncertain and may not occur on anticipated timelines or at all. If we are unable to successfully develop, validate, and bring these products and technologies to market, we could lose potential business opportunities, incur additional development costs, and experience a material adverse effect on our business, financial condition, and results of operations.

#### If we release defective products or services, our operating results could suffer.
Products and services designed and released by us involve extremely complex software programs and physical products, which are difficult to develop and distribute. While we have quality controls in place to detect and prevent defects in its products and services before they are released, these quality controls are subject to human error, overriding, and reasonable resource constraints. Therefore, these quality controls and preventative measures may not be effective in detecting and preventing defects in our products and services before they have been released into the marketplace. In such an event, we could be required, or decide voluntarily, to suspend the availability of the product or services, which could significantly harm its business and operating results.

 ***Our products and services are complex and could have unknown defects or errors, which may give rise to legal claims against us, diminish our brand or divert our resources from other purposes.***

Our products rely on complex adaptive audio and acoustic signal-processing software that leverages sophisticated algorithmic and model-based approaches, delivered primarily as (i) PC-based tuning and measurement tools with graphical interfaces for OEM engineers, and (ii) embedded software running on demand-side platforms, or DSPs, or similar components, including non-visual software interfaces (APIs/SDKs) for system integration. From time to time, we use hardware solely for demonstrations or proofs-of-concept. We do not currently commercialize standalone hardware modules or consumer-facing products,

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although we may do so in the future, including development kits for engineers and, potentially, products with end-user interfaces to accomplish their missions. Despite testing, the Company's products have contained defects and errors and may in the future contain defects, errors or performance problems when first introduced, when new versions or enhancements are released or even after these products have been used by our customers for a period of time. These problems could result in expensive and time-consuming design modifications or warranty charges, delays in the introduction of new products or enhancements, significant increases in our service and maintenance costs, exposure to liability for damages, damaged customer relationships and harm to the Company's reputation, any of which could materially harm the Company's results of operations and ability to achieve market acceptance. In addition, increased development and warranty costs could be substantial and could significantly reduce our operating margins.

As a manufacturer of AAM products, and with auditory wearable sector companies under increased scrutiny, claims could be brought against us if use or misuse of one of our AAM products causes, or merely appears to have caused, personal injury or death. In addition, defects in our products may lead to other potential life, health and property risks, the results of which could significantly damage our reputation and support for its AAM products in general. The existence of any defects, errors or failures in our products or the misuse of our products could also lead to product liability claims or lawsuits against us. Any claims against us, regardless of their merit, could severely harm our financial condition and strain its management and other resources. We anticipate these risks will grow as use of our AAMs in automotive and industrial sectors increases.

Although we maintain insurance policies, we cannot provide any assurance that this insurance will be adequate to protect us from all material judgments and expenses related to potential future claims or that these levels of insurance will be available in the future at economical prices or at all. In particular, we are unable to predict if we will be able to obtain or maintain product liability insurance for any products that may be approved for marketing. A successful product liability claim could result in substantial cost to the Company. Even if we are fully insured as it relates to a particular claim, the claim could nevertheless diminish our brand and divert management's attention and resources, which could have a negative impact on our business, financial condition and results of operations.

#### Shortfalls in available external research and development funding could adversely affect the Company.
We depend on our research and development activities to develop the core technologies used in our AAM products and for the development of our future products. A portion of our research and development activities can depend on funding by commercial companies and the Israeli government. Israeli government and commercial spending levels can be impacted by a number of variables, including general economic conditions, specific companies' financial performance and competition for Israeli government funding. Any reductions in available research and development funding could harm our business, financial condition and operating results.

 ***Negative consumer perception regarding our products could have a material adverse effect on the demand for our products and on our business, results of operations, financial condition and cash flows.***

We believe the AAM industry is highly dependent upon consumer perception regarding the safety, efficacy and quality of the products used. Consumer perception of these products can be significantly influenced by scientific research or findings, regulatory investigations, litigation, media attention and other publicity regarding the use of AAM solutions. There can be no assurance that future scientific research, findings, regulatory proceedings, litigation, media attention or other publicity will be favorable to the AAM market. Future research reports, findings, regulatory proceedings, litigation, media attention or other publicity that are perceived as less favorable than, or that question, earlier research reports, findings or publicity could have a material adverse effect on the demand for our products and our business, results of operations, financial condition and cash flows. The dependence upon consumer perceptions means that adverse scientific research reports, findings, regulatory proceedings, litigation, media attention or other publicity, whether or not accurate or with merit, could have a material adverse effect on the Company, the demand for our products, and our business, results of operations, financial condition and cash flows. Further, adverse publicity

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reports or other media attention regarding the safety, the efficacy, and quality of AAM-based surveys in general, or our products specifically, could have a material adverse effect.

 ***If we fail to successfully promote our product brand, this could have a material adverse effect on our business, prospects, financial condition and results of operations.***

We believe that brand recognition is an important factor to its success. If we fail to promote our brands successfully, or if the expenses of doing so are disproportionate to any increased net sales it achieves, it would have a material adverse effect on our business, prospects, financial condition and results of operations. This will depend largely on our ability to maintain trust, be a technology leader, and continue to provide high-quality and secure technologies, products and services. Any negative publicity about us or our industry, the quality and reliability of our technologies, products and services, our risk management processes, changes to our technologies, products and services, our ability to effectively manage and resolve customer complaints, our privacy and security practices, litigation, regulatory activity, and the experience of sellers and buyers with our products or services, could adversely affect our reputation and the confidence in and use of our technologies, products and services. Harm to our brand can arise from many sources, including failure by us or our partners to satisfy expectations of service and quality; inadequate protection of sensitive information; compliance failures and claims; litigation and other claims; employee misconduct; and misconduct by our partners, service providers, or other counterparties. If we do not successfully maintain a strong and trusted brand, our business could be materially and adversely affected.

#### We may be subject to electronic communication security risks.
A significant potential vulnerability of electronic communications is the security of transmission of confidential information over public networks. Anyone who is able to circumvent our security measures could misappropriate proprietary information or cause interruptions in its operations. We may be required to expend capital and other resources to protect against such security breaches or to alleviate problems caused by such breaches.

 ***Our business could be adversely affected if our consumer protection and data privacy practices are not perceived as adequate or there are breaches of our security measures or unintended disclosures of our consumer data.***

The rate of privacy law-making is accelerating globally and interpretation and application of consumer protection and data privacy laws in Israel, the United States and elsewhere are often uncertain, contradictory and in flux. As business practices are being challenged by regulators, private litigants and consumer protection agencies around the world, it is possible that these laws may be interpreted and applied in a manner that is inconsistent with our data and/or consumer protection practices. This could result in increased litigation, government or court-imposed fines, judgments or orders requiring that we change its practices, which could have an adverse effect on our business and reputation. Complying with these various laws could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business.

#### Significant disruptions of our information technology systems or breaches of our data security could adversely affect our business.
A significant invasion, interruption, destruction or breakdown of our information technology systems and/or infrastructure by persons with authorized or unauthorized access could negatively impact our business and operations. We could also experience business interruption, information theft and/or reputational damage from cyber-attacks, which may compromise our systems and lead to data leakage either internally or at our third-party providers. Our systems are expected to be the target of malware and other cyber-attacks. Although we have invested in measures to reduce these risks, we cannot assure you that these measures will be successful in preventing compromise and/or disruption of our information technology systems and related data.

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#### We rely on OEMs, Integrators and Service Providers, which may expose us to confidentiality and operational risks.
We rely on a limited number of OEM customers, integration partners (which are Tier 1 suppliers, system integrators and semiconductor/DSP partners that integrate our algorithms into their hardware or software platforms), service providers, and development vendors to support the design, testing, and deployment of our technology within their systems and platforms. As part of these collaborations, we may need to enable such partners to interface with certain elements of our technology or tools in a controlled manner. We do not grant these partners any ownership rights in our technology, nor do we transfer proprietary core know-how or any rights that would be inconsistent with applicable intellectual property laws or governmental restrictions, including those applicable to know-how developed with support from the Israel Innovation Authority.

Although our business model includes software licensing tied to OEM programs and platforms, we do not maintain a broad third-party licensing ecosystem, and we do not generate revenue from general-purpose or standalone software royalties. Aside from one immaterial legacy software agreement, we have no material licensing arrangements outside our OEM-specific commercial programs.

Any failure by our partners or vendors to maintain appropriate confidentiality, security, or operational standards could expose us to risks, including unauthorized use, operational disruption, or competitive harm. As we expand our offerings to include SDKs and development kits, the number of third parties interacting with certain interfaces or tools may increase, potentially heightening these risks. Additionally, if any partner or vendor experiences financial or operational difficulties or fails to deliver adequate services, we may face delays, disruptions, or increased costs in identifying and transitioning to alternative providers.

 ***Our planned international operations will expose us to additional market and operational risks, and failure to manage these risks may adversely affect our business and operating results.***

We expect to derive a substantial percentage of our sales from international markets. Accordingly, we will face significant operational risks from doing business internationally, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ fluctuations in foreign currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ potentially longer sales and payment cycles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ potentially greater difficulties in collecting accounts receivable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ potentially adverse tax consequences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reduced protection of intellectual property rights in certain countries, particularly in Asia and South America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ difficulties in staffing and managing foreign operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ laws and business practices favoring local competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ costs and difficulties of customizing products for foreign countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ compliance with a wide variety of complex foreign laws, treaties and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ an outbreak of a contagious disease, such as coronavirus, which may cause us, third party vendors and manufacturers and/or customers to temporarily suspend our or their respective operations in the affected city or country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ tariffs, trade barriers and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ being subject to the laws, regulations and the court systems of many jurisdictions.

Further, international trade conflicts could have negative consequences on the demand for our products and services outside Israel. Other risks of doing business internationally include political and economic instability in the countries of our customers and suppliers, changes in diplomatic and trade relationships

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and increasing instances of terrorism worldwide. Some of these risks may be affected by Israel's overall political or military situation. See "Risks Related to Our Incorporation, Location and Operations in Israel" for further information.

Our failure to manage the market and operational risks associated with its international operations effectively could limit the future growth of our business and adversely affect our operating results.

#### Risks Related to Our Intellectual Property
 ***We have been subject to opposition proceedings regarding our QUIET BUBBLE<sup>®</sup> trademark in the European Union, and any further challenges to our intellectual property rights, including appeals, could be expensive, time-consuming, and could divert management's attention.***

We used our QUIET BUBBLE<sup>®</sup> trademark in connection with its unique active acoustic control system and method since 2011, and have registered the QUIET BUBBLE<sup>®</sup> trademark in numerous jurisdictions, including the European Union (EU) via an International Registration (Madrid Protocol) in 2022. In 2023, we were notified by the European Intellectual Property Office (EUIPO) that Technofirst of Parc d'Activités de Napollon, 48 avenue des Templiers, F-13676 AUBAGNE Cedex, France, or Technofirst, had filed an opposition against our EU registration. After an extended cooling-off period during which the parties discussed potential resolutions without reaching agreement, we requested that Technofirst provide proof of use of its alleged prior rights. On October 27, 2025, the EUIPO issued a decision dismissing the opposition in its entirety due to Technofirst's failure to provide the required proof of use. The decision provided a two-month appeal period, ending on December 27, 2025, during which Technofirst could have appealed. However, no appeal was filed by the deadline, and the opposition was therefore dismissed, and protection has been granted to the International Registration as a Trademark Registration in the EU.

Although the opposition has been dismissed in our favor, we cannot assure that further challenges to our trademark rights will not arise in the future. Any continued opposition, appeal, or other challenge to our intellectual property rights could result in substantial costs, diversion of management attention and resources, and uncertainty regarding our ability to protect and enforce our brand. If we are unsuccessful in defending our trademark rights, we could be required to cease use of our trademarks in the EU or other jurisdictions, which could adversely affect our business, results of operations, and financial condition.

 ***If we are unable to obtain and maintain effective intellectual property rights for our products, including for our software platforms, algorithms, and integration technologies, we may not be able to compete effectively in our markets and If we fail to secure or enforce these rights, competitors could replicate our solutions, reducing our market share and revenue.***

If we are unable to obtain and maintain effective intellectual property rights for our products, we may not be able to compete effectively in our markets. We rely on patents, trade secret protection, and confidentiality agreements to protect the intellectual property related to our technologies and products. Our success depends on our ability to obtain and maintain patent and other intellectual property protection in the United States and other countries for our proprietary technology and products. We seek to protect our position by filing patent applications in multiple jurisdictions for technologies and products that are important to our business. Patent prosecution is expensive and time-consuming, and we may not be able to file and prosecute all necessary applications in all jurisdictions at a reasonable cost or in a timely manner. We may also fail to identify patentable aspects of our research and development output before it is too late to obtain patent protection.

Our patent portfolio currently consists of an aggregate of 73 patents and patent applications, as described in "Business — Intellectual Property." We cannot offer any assurances about which, if any, patent applications will issue, the breadth of any such patent or whether any issued patents will be found invalid and unenforceable or will be threatened by third parties. Any successful opposition to these patents or any other patents owned by or licensed to us after patent issuance could deprive us of rights necessary for the successful commercialization of any new products that we may develop.

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Further, there is no assurance that all potentially relevant prior art relating to our patent applications has been found, which can invalidate a patent or prevent a patent from issuing from a pending patent application. Even if patents do successfully issue, and even if such patents cover our products, third parties may challenge their validity, enforceability, or scope, which may result in such patents being narrowed, found unenforceable or invalidated. Furthermore, even if they are unchallenged, our patent applications and any future patents may not adequately protect our intellectual property, provide exclusivity for our new products, or prevent others from designing around our claims. Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business.

If we cannot obtain and maintain effective patent rights for our products, we may not be able to compete effectively, and our business and results of operations would be harmed.

 ***Intellectual property rights of third parties could adversely affect our ability to commercialize our technology , and we might be required to litigate or obtain licenses from third parties. Such litigation or licenses could be costly or not available on commercially reasonable terms.***

It is inherently difficult to conclusively assess our freedom to operate without infringing on third party rights. Our competitive position may be adversely affected if existing patents or patents resulting from patent applications issued to third parties or other third-party intellectual property rights are held to cover our products software platforms, or integration technologies , or our manufacturing or uses relevant to our development plans. In such cases, we may not be in a position to develop or commercialize our technology our software platforms, integration technologies or new products unless we successfully pursue litigation to nullify or invalidate the third-party intellectual property right concerned or enter into a license agreement with the intellectual property right holder, if available on commercially reasonable terms. There may also be pending patent applications that if they result in issued patents, could be alleged to be infringed by our software platforms, integration technologies, or new products . If such an infringement claim should be brought and be successful, we may be required to pay substantial damages, be forced to abandon our new products or seek a license from any patent holders. No assurances can be given that a license will be available on commercially reasonable terms, if at all.

It is also possible that we have failed to identify relevant third-party patents or applications. For example, U.S. patent applications filed before November 29, 2000 and certain U.S. patent applications filed after that date that will not be filed outside the United States remain confidential until patents issue. Patent applications in the United States and in most of the other countries are published approximately 18 months after the earliest filing for which priority is claimed, with such earliest filing date being commonly referred to as the priority date. Therefore, patent applications covering our new products or platform technology could have been filed by others without our knowledge. Additionally, pending patent applications which have been published can, subject to certain limitations, be later amended in a manner that could cover our platform technologies, our new products or the use of our new products. Third party intellectual property right holders may also actively bring infringement claims against us. We cannot guarantee that we will be able to successfully settle or otherwise resolve such infringement claims. If we are unable to successfully settle future claims on terms acceptable to us, we may be required to engage in or continue costly, unpredictable and time-consuming litigation and may be prevented from or experience substantial delays in pursuing the development of and/or marketing our new products. If we fail in any such dispute, in addition to being forced to pay damages, we may be temporarily or permanently prohibited from commercializing our technology, our software platforms, integration technologies, or products that are held to be infringing. We might, if possible, also be forced to redesign our software platforms, integration technologies, or products so that we no longer infringe the third party's intellectual property rights. Any of these events, even if we were ultimately to prevail, could require us to divert substantial financial and management resources that we would otherwise be able to devote to our business.

 ***Patent policy and rule changes could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of any issued patents.***

Changes in either the patent laws or interpretation of the patent laws in the United States and other countries may diminish the value of any patents that may issue from our patent applications or narrow the

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scope of our patent protection. The laws of foreign countries may not protect our rights to the same extent as the laws of the United States. Publications of discoveries in the scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months after filing, or in some cases not at all. We therefore cannot be certain that we were the first to file the invention claimed in our owned and licensed patent or pending applications, or that we or our licensor were the first to file for patent protection of such inventions. Assuming all other requirements for patentability are met, in the United States prior to March 15, 2013, the first to make the claimed invention without undue delay in filing is entitled to the patent, while outside the United States, the first to file a patent application is entitled to the patent. Since March 15, 2013, the United States has moved to a first to file system. Changes to the way patent applications will be prosecuted could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of any issued patents, all of which could have a material adverse effect on our business and financial condition.

#### We may be involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time-consuming, unpredictable and unsuccessful.
Competitors may infringe our intellectual property. If we were to initiate legal proceedings against a third party to enforce a patent covering one of our new products, the defendant could counterclaim that the patent covering our product candidate is invalid and/or unenforceable. In patent litigation in the United States, defendant counterclaims alleging invalidity and/or unenforceability are commonplace. Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, or non-enablement. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld relevant information from the United States Patent and Trademark Office, or USPTO, or made a misleading statement, during prosecution. The validity of U.S. patents may also be challenged in post-grant proceedings before the USPTO. The outcome following legal assertions of invalidity and unenforceability is unpredictable.

Derivation proceedings initiated by third parties or brought by us may be necessary to determine the priority of inventions and/or their scope with respect to our patent or patent applications or those of our licensors. An unfavorable outcome could require us to cease using the related technology or to attempt to license rights to it from the prevailing party. Our business could be harmed if the prevailing party does not offer us a license on commercially reasonable terms. Our defense of litigation or interference proceedings may fail and, even if successful, may result in substantial costs and distract our management and other employees. In addition, the uncertainties associated with litigation could have a material adverse effect on our ability to raise the funds necessary to continue our research programs, license necessary technology from third parties, or enter into development partnerships that would help us bring our new products to market.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments. If securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our Ordinary Shares.

#### We may be subject to claims challenging the inventorship of our intellectual property.
We may be subject to claims that former employees, collaborators or other third parties have an interest in, or right to compensation, with respect to our current patent and patent applications, future patents or other intellectual property as an inventor or co-inventor. For example, we may have inventorship disputes arise from conflicting obligations of consultants or others who are involved in developing our products. Litigation may be necessary to defend against these and other claims challenging inventorship or claiming the right to compensation. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Such an outcome could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

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#### We may not be able to protect our intellectual property rights throughout the world.
Filing, prosecuting, and defending patents on products, as well as monitoring their infringement in all countries throughout the world would be prohibitively expensive, and our intellectual property rights in some countries can be less extensive than those in the United States. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States.

A substantial part of the commercial success of the Company will depend on its ability to maintain, establish and protect its intellectual property assets, maintain trade secret protection, register copyrights and trademarks, and operate without infringing the proprietary rights of third parties. Our patent portfolio currently consists of an aggregate of 73 patents and patent applications, as described in "Business — Intellectual Property." We cannot assure investors that any of our currently pending or future patent applications will result in issued patents and we cannot predict how long it will take for such patent applications to issue as patents. There is a further risk that the claims of each patent application, as filed, may change in scope during examination by the patent offices. Further, if and where a patent is granted, there can be no guarantee that such patent will be valid or enforceable or that the patent will be granted in other jurisdictions.

Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and may also export otherwise infringing products to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete with our products. Future patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection, which could make it difficult for us to stop the marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our future patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to monitor and enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.

 ***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.***

A significant portion of our intellectual property has been developed by our employees in the course of their employment for 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 are regarded as "service inventions," which belong to the employer, absent an agreement between the employee and employer providing otherwise. The Patents Law also provides that if there is no agreement between an employer and an employee determining whether the employee is entitled to receive consideration for service inventions and on what terms, this will be determined by the Israeli Compensation and Royalties Committee, or the Committee, a body constituted under the Patents Law. Case law clarifies that the right to receive consideration for "service inventions" can be waived by the employee and that in certain circumstances, such waiver does not necessarily have to be explicit. The Committee will examine, on a case-by-case basis, the general contractual framework between the parties, using interpretation rules of the general Israeli contract laws. Further, the Committee has not yet determined one specific formula for calculating this remuneration, but rather uses the criteria specified in the Patents Law. Although we generally enter into agreements with our employees pursuant to which such individuals assign to us all rights to any inventions created during and as a result of their employment with us, we may face claims demanding remuneration in consideration for assigned

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inventions. As a consequence of such claims, we could be required to pay additional remuneration or royalties to our current and/or former employees, or be forced to litigate such monetary claims (which will not affect our proprietary rights), which could negatively affect our business.

#### Our patents and trade secrets may not prevent competitors from designing around our technology or developing alternatives.
We rely on a combination of patents, trade secrets, and other intellectual property protections to safeguard our proprietary technology, including our algorithmic and model-based approaches for audio and acoustic signal processing. However, these protections may be limited in scope, subject to challenge, or otherwise insufficient to prevent third parties from independently developing similar or competitive technologies, designing around our patents, or using technologies that compete with ours. In addition, intellectual property rights are subject to expiration, and enforcement can be costly, time-consuming, and uncertain, particularly in jurisdictions with weaker IP protection. As we re-expand our offerings to include SDKs and development tools for integration, we may need to share proprietary technology with partners, which could increase the risk of misappropriation. Any failure to protect our intellectual property could result in increased competition, loss of market share, or reduced revenue, which could have a material adverse effect on our business and financial condition.

#### Risks Related to the Offering and the Ownership of Our Ordinary Shares

#### If you purchase securities in this offering, you will incur immediate and substantial dilution.
The assumed public offering price of the Ordinary Shares being offered hereby is substantially higher than the net tangible book value per share of our outstanding Ordinary Shares. Therefore, if you purchase securities in this offering, you will pay a price per Ordinary Share that substantially exceeds our net tangible book value per Ordinary Share after this offering. To the extent outstanding options or warrants are exercised, you will incur further dilution. Based on the assumed initial offering price of $7.00 per Ordinary Share, you will experience immediate dilution of $4.70 per Ordinary Share, representing the difference between our pro forma net tangible book value per Ordinary Share after giving effect to this offering and the offering price. In addition, purchasers of our Ordinary Shares in this offering will have contributed approximately 16.3% of the aggregate price paid by all purchasers of our Ordinary Shares but will own only approximately 39.1% of our Ordinary Shares outstanding after this offering. See "Dilution" for further information.

 ***Participation in this offering by certain of our existing shareholders, including entities affiliated with certain of our directors and beneficial owners of greater than 5% of our share capital, could reduce the public float for our shares.***

Certain of our existing shareholders, including entities affiliated with certain of our directors and beneficial owners of greater than 5% of our share capital, have indicated an interest in purchasing up to an aggregate of $ million of Ordinary Shares in this offering at the initial public offering price per Ordinary Share. However, because indications of interest are not binding agreements or commitments to purchase, the underwriter may determine to sell more, less or no Ordinary Shares in this offering to any of these shareholders, or any of these shareholders may determine to purchase more, less or no Ordinary Shares in this offering. The underwriter will receive the same underwriting discount on any Ordinary Shares purchased by these shareholders as they will on any other shares sold to the public in this offering.

 ***Our directors, officers and holders of 10% or more of our outstanding Ordinary Shares beneficially own approximately 27.9% of our outstanding Ordinary Shares. They will therefore be able to exert significant control over matters submitted to our shareholders for approval.***

As of the date of this prospectus, our directors, officers and holders of 10% or more of our outstanding Ordinary Shares beneficially own approximately 27.9% of our Ordinary Shares. Upon completion of this offering, our directors, officers and holders of 10% or more of our outstanding Ordinary Shares will, in the aggregate, beneficially own approximately 17.3% of our outstanding Ordinary Shares. This significant concentration of share ownership may adversely affect the trading price for our Ordinary Shares because

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investors often perceive disadvantages in owning shares in companies with controlling shareholders. As a result, these shareholders, if they acted together, could significantly influence or even unilaterally approve matters requiring approval by our shareholders, including the election of directors (other than external directors, if any) and the approval of mergers or other business combination transactions. The interests of these shareholders may not always coincide with our interests or the interests of other shareholders.

#### We have never paid and we currently do not intend to pay dividends.
We have never declared or paid any cash dividends on our Ordinary Shares. We currently intend to retain any future earnings to finance operations and to expand our business and, therefore, do not expect to pay any cash dividends in the foreseeable future. As a result, capital appreciation, if any, of our Ordinary Shares will be investors' sole source of gain for the foreseeable future. In addition, Israeli law may limit our declaration or payment of dividends and may subject our dividends to Israeli withholding taxes.

#### Management will have broad discretion as to the use of the net proceeds from this offering.
Our management will have broad discretion in the allocation of the net proceeds and could use them for purposes other than those contemplated at the time of this offering. Our shareholders may not agree with the manner in which our management chooses to allocate and spend the net proceeds.

 ***The JOBS Act allows us to postpone the date by which we must comply with some of the laws and regulations intended to protect investors and to reduce the amount of information we provide in our reports filed with the SEC, which could undermine investor confidence in our company and adversely affect the market price of our Ordinary Shares.***

For so long as we remain an "emerging growth company" as defined in the JOBS Act, we intend to take advantage of certain exemptions from various requirements that are applicable to public companies that are not "emerging growth companies" including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the provisions of the Sarbanes-Oxley Act requiring that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Section 107 of the JOBS Act, which provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. This means that an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to delay such adoption of new or revised accounting standards. As a result of this adoption, our financial statements may not be comparable to companies that comply with the public company effective date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ any rules that may be adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a supplement to the auditor's report on the financial statements.

We intend to take advantage of these exemptions until we are no longer an "emerging growth company." We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the date of our first sale of equity securities pursuant to an effective registration statement under the Securities Act, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our Ordinary Shares that is held by non-affiliates exceeds $700 million as of the prior December 31, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

We cannot predict if investors will find our Ordinary Shares less attractive because we may rely on these exemptions. If some investors find our Ordinary Shares less attractive as a result, there may be a less active trading market for our Ordinary Shares, and our market prices may be more volatile and may decline.

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 ***As a "foreign private issuer" we are permitted to and follow certain home country corporate governance practices instead of otherwise applicable SEC and the NYSE American requirements, which may result in less protection than is accorded to investors under rules applicable to domestic U.S. issuers.***

Our status as a foreign private issuer also exempts us from compliance with certain SEC laws and regulations and certain regulations of the NYSE American, including the proxy rules, the short-swing profits recapture rules, and certain governance requirements such as independent director oversight of the nomination of directors and executive compensation. In addition, we are not required, under the Exchange Act, to file current reports and financial statements with the SEC as frequently or as promptly as U.S. domestic companies whose securities are registered under the Exchange Act, and we are generally exempt from filing quarterly reports with the SEC. Also, although regulations promulgated under the Companies Law require us to disclose the annual compensation of our five most highly compensated senior officers on an individual basis, this disclosure is not as extensive as that required of a U.S. domestic issuer. For example, the disclosure required under Israeli law would be limited to compensation paid in the immediately preceding year without any requirement to disclose option exercises and vested stock options, future pension benefits or potential payments upon termination or a change of control. Furthermore, as a foreign private issuer, we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. Section 8103 of the National Defense Authorization Act for Fiscal Year 2026, named the "Holding Foreign Insiders Accountable Act", which was signed into law on December 18, 2025, requires directors and officers of foreign private issuers to make insider reports under Section 16(a) of the Exchange Act, effective March 18, 2026. Our principal shareholders will remain exempt from the reporting under Section 16(a) of the Exchange Act and our directors, officers and principal shareholders continue to remain exempt from the short-swing profit recovery provisions contained in Section 16(b) of the Exchange Act.

These exemptions and leniencies will reduce the frequency and scope of information and protections to which you are entitled as an investor.

The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter and, accordingly, the next determination will be made with respect to us on June 30, 2026. In the future, we would lose our foreign private issuer status if a majority of our shareholders, directors or management are U.S. citizens or residents and we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic registrant may be significantly higher.

 ***We may be a "passive foreign investment company" for U.S. federal income tax purposes in the current taxable year or may become one in any subsequent taxable year. There generally would be negative tax consequences for U.S. taxpayers that are holders of our Equity Securities if we are or were to become a "passive foreign investment company".***

Based on the projected composition of our income and valuation of our assets, we do not expect to be a "passive foreign investment company", or a PFIC, for 2026 and we do not expect to become a PFIC in the future, although there can be no assurance in this regard. The determination of whether we are a PFIC is made on an annual basis and will depend on the composition of our income and assets from time to time. We will be treated as a PFIC for U.S. federal income tax purposes in any taxable year in which either (1) at least 75% of our gross income is "passive income" or (2) on quarterly average at least 50% of our assets by value produce passive income or are held for the production of passive income. Passive income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities transactions and from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. In determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account. The tests for determining PFIC status are applied annually and it is difficult to make accurate projections of future income and assets which are relevant to this determination. In addition, our PFIC status may depend in part on the market value of our Equity Securities. Accordingly, there can be no assurance that we currently are not or will not become a PFIC in the future. If we are a PFIC in any taxable year during which a U.S. taxpayer holds our Equity Securities, such

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U.S. taxpayer would be subject to certain adverse U.S. federal income tax rules. In particular, if the U.S. taxpayer did not make an election to treat us as a "qualified electing fund," or QEF, or make a "mark-to-market" election, then "excess distributions" to the U.S. taxpayer, and any gain realized on the sale or other disposition of our Equity Securities by the U.S. taxpayer: (1) would be allocated ratably over the U.S. taxpayer's holding period for our Equity Securities; (2) the amount allocated to the current taxable year and any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year. In addition, if the U.S. Internal Revenue Service, or the IRS, determines that we are a PFIC for a year with respect to which we have determined that we were not a PFIC, it may be too late for a U.S. taxpayer to make a timely QEF or mark-to-market election. U.S. taxpayers that have held our Equity Securities during a period when we were a PFIC will be subject to the foregoing rules, even if we cease to be a PFIC in subsequent years, subject to exceptions for U.S. taxpayer who made a timely QEF or mark-to-market election. A U.S. taxpayer can make a QEF election by completing the relevant portions of and filing IRS Form 8621 in accordance with the instructions thereto. We do not intend to notify U.S. taxpayers that hold our Equity Securities if we believe we will be treated as a PFIC for any taxable year in order to enable U.S. taxpayers to consider whether to make a QEF election. In addition, we do not intend to furnish such U.S. taxpayers annually with information needed in order to complete IRS Form 8621 and to make and maintain a valid QEF election for any year in which we or any of our subsidiaries are a PFIC. U.S. taxpayers that hold our Equity Securities are strongly urged to consult their tax advisors about the PFIC rules, including tax return filing requirements and the eligibility, manner, and consequences to them of making a QEF or mark-to-market election with respect to our Equity Securities in the event that we are a PFIC. See "Taxation — Certain Material U.S. Federal Income Tax Considerations — Passive Foreign Investment Companies" for additional information.

#### We may be subject to securities litigation, which is expensive and could divert management attention.
In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Litigation of this type could result in substantial costs and diversion of management's attention and resources, which could seriously hurt our business. Any adverse determination in litigation could also subject us to significant liabilities.

 ***Certain recent initial public offerings of companies with public floats comparable to our anticipated public float have experienced extreme volatility that was seemingly unrelated to the underlying performance of such companies. We may experience similar volatility, which may make it difficult for prospective investors to assess the value of our Ordinary Shares.***

Our Ordinary Shares may be subject to extreme volatility that is seemingly unrelated to the underlying performance of our business. Recently, companies with comparable anticipated public floats and initial public offering sizes have experienced instances of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated to the respective company's underlying performance. Although the specific cause of such volatility is unclear, our anticipated public float may amplify the impact of the actions taken by a few shareholders on the price of our Ordinary Shares, which may cause our share price to deviate, potentially significantly, from a price that better reflects the underlying performance of our business. Should our Ordinary Shares experience run-ups and declines that are seemingly unrelated to our actual or expected operating performance and financial condition or prospects, prospective investors may have difficulty assessing the rapidly changing value of our Ordinary Shares. In addition, investors of our Ordinary Shares may experience losses, which may be material, if the price of our Ordinary Shares declines after this offering or if such investors purchase Ordinary Shares prior to any price decline.

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#### Risks Related to Our Incorporation, Location and Operations in Israel and Operations in Hong Kong and China

#### We are exposed to fluctuations in currency exchange rates.
A major portion of our business is conducted, and a material portion of our operating expenses is incurred, outside the United States, mainly in New Israeli Shekels (NIS) and Chinese Renminbi (RMB). Therefore, we are exposed to currency exchange fluctuations in other currencies, particularly in NIS and the risks related thereto. Our primary expenses paid in NIS are employee salaries, fees for consultants and subcontractors and lease payments on our Israeli facilities. As a result, we are affected by foreign currency exchange fluctuations through both translation risk and transaction risk. Thus, we are exposed to the risks that: (a) the NIS may appreciate relative to the dollar; (b) the NIS devalue relative to the dollar; (c) the inflation rate in Israel may exceed the rate of devaluation of the NIS; or (d) the timing of such devaluation may lag behind inflation in Israel. In any such event, the dollar cost of our operations in Israel would increase and our dollar-denominated results of operations would be adversely affected. Our operations also could be adversely affected if we are unable to effectively hedge against currency fluctuations in the future.

 ***Provisions of Israeli law and our amended and restated articles of association may delay, prevent or otherwise impede a merger with, or an acquisition of, our company, which could prevent a change of control, even when the terms of such a transaction are favorable to us and our shareholders.***

Israeli corporate law regulates mergers, requires tender offers for acquisitions of shares above specified thresholds, and requires special approvals for transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant to such types of transactions. For example, a merger may not be consummated unless at least 50 days have passed from the date on which a merger proposal is filed by each merging company with the Israel Registrar of Companies and at least 30 days have passed from the date on which the shareholders of both merging companies have approved the merger. In addition, the merger must be approved by a majority of the votes of shareholders present and voting at the relevant shareholders' meeting. Moreover, a tender offer for all of a company's issued and outstanding shares can only be completed if the acquirer receives positive responses from the holders of at least 95% of the company's issued share capital. Completion of the tender offer also requires approval of a majority of the offerees that do not have a personal interest in the tender offer, unless, following consummation of the tender offer, the acquirer would hold at least 98% of the company's outstanding shares. Furthermore, the shareholders, including those who accepted the tender offer, may, at any time within six months following the completion of the tender offer, claim that the consideration for the acquisition of the shares does not reflect their fair market value and petition an Israeli court to alter the consideration accordingly, unless the acquirer stipulated in its tender offer that a shareholder accepting the offer may not seek such appraisal rights and the acquirer or the company published all required information with respect to the tender offer prior to the tender offer's response date.

In addition, our Articles of Association provide that our directors (other than external directors, if applicable) are elected on a staggered basis, such that a potential acquirer cannot readily replace our entire board of directors at a single annual general shareholder meeting. This could prevent a potential acquirer from receiving board approval for an acquisition proposal that our board of directors opposes.

Israeli tax considerations also may make potential transactions unappealing to us or to our shareholders whose country of residence does not have a tax treaty with Israel exempting such shareholders from Israeli tax. See "Taxation — Israeli Tax Considerations and Government Programs" for additional information.

 ***It may be difficult to enforce a judgment of a United States court against us and our officers and directors in Israel or the United States or to serve process on our officers and directors.***

We were incorporated in Israel. All of our executive officers and directors reside outside of the United States, and all of our assets and most of the assets of these persons are located outside of the United States. Therefore, a judgment obtained against us, or any of these persons, including a judgment based on the civil liability provisions of the U.S. federal securities laws, may not be collectible in the United States and

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may not necessarily be enforced by an Israeli court. It also may be difficult to affect service of process on these persons in the United States or to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on an alleged violation of U.S. securities laws reasoning that Israel is not the most appropriate forum in which to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. As a result of the difficulty associated with enforcing a judgment against us in Israel, you may not be able to collect any damages awarded by either a United States or foreign court.

 ***Our amended and restated articles of association to be effective upon the closing of this offering will provide that, unless we consent to an alternate forum, the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising under the Securities Act.***

 ***Our amended and restated articles of association to be effective upon the closing of this offering will provide that unless we consent otherwise, the competent courts of Tel Aviv, Israel shall be the sole and exclusive forum for substantially all disputes between us and our shareholders under the Companies Law and the Israeli Securities Law, which could limit our shareholders' ability to bring claims and proceedings against, as well as obtain a favorable judicial forum for disputes with, us and our directors, officers and other employees.***

Our amended and restated articles of association to be effective upon the closing of this offering will provide that, unless we consent in writing to the selection of an alternative forum, the competent courts of Tel Aviv, Israel shall be the exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our shareholders or (iii) any action asserting a claim arising pursuant to any provision of the Companies Law or the Israeli Securities Law. This exclusive forum provision is intended to apply to claims arising under Israeli law and would not apply to claims brought pursuant to the Securities Act or the Exchange Act or any other claim for which U.S. federal courts would have exclusive jurisdiction. Such exclusive forum provision in our amended and restated articles of association to be effective upon the closing of this offering will not relieve us of our duties to comply with U.S. federal securities laws and the rules and regulations thereunder, and shareholders will not be deemed to have waived our compliance with these laws, rules and regulations. This exclusive forum provision may limit a shareholder's ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees, which could limit our shareholders' ability to bring claims and proceedings against, as well as obtain a favorable judicial forum for disputes with, us and our directors, officers and other employees.

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 ***Our headquarters, research and development and other significant operations are located in Israel, and, therefore, our results may be adversely affected by political, economic and military instability in Israel including the recent war with Hamas in Gaza and with Hezbollah in Lebanon.***

Our executive offices and research and development facilities are located in Israel. In addition, most of our key employees and officers are residents of Israel. Accordingly, political, geopolitical, economic and military conditions in Israel may directly affect our business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its neighboring Arab countries, Hamas (an Islamist terrorist militia and political group that controls the Gaza strip), Hezbollah (an Islamist terrorist militia and political group based in Lebanon) and other terrorist organizations active in the region. These conflicts have involved missile strikes, hostile infiltrations and terrorism against civilian targets in various parts of Israel, which have negatively affected business conditions in Israel. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could negatively affect business conditions in Israel in general and our business in particular, and adversely affect our product development, operations and results of operations. Ongoing and revived hostilities or other Israeli political or economic factors, such as, an interruption of operations at the Tel Aviv airport or the nautical routes, could prevent or delay shipments of our components or products.

In October 2023, Hamas terrorists infiltrated Israel's southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israeli population and industrial centers located along Israel's border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in extensive deaths, injuries and kidnapping of civilians and soldiers. Following the attack, Israel's security cabinet declared war against Hamas and a military campaign against these terrorist organizations commenced in parallel to their continued rocket and terror attacks. In October 2025, a ceasefire was brokered between Israel and Hamas. However, we cannot predict if and to what extent this ceasefire will remain in effect or upheld.

Since the commencement of these events, there have been continued hostilities along Israel's northern border with the Hezbollah terror organization, with Iran, the Houthis in Yemen and on other fronts with various extremist groups in the region, such as various rebel militia groups in Syria and Iraq. In October 2024, Israel began limited ground operations against Hezbollah in Lebanon, and in November 2024, a ceasefire was brokered between Israel and Hezbollah, but in March 2026, hostilities resumed along Israel's northern border with Lebanon, when Hezbollah resumed its attacks as part of a broader regional escalation. In response, Israel resumed military operations against Hezbollah in Lebanon. In April 2026, a temporary ceasefire was brokered between Israel and Hezbollah, however, we cannot predict if and to what extent this ceasefire will remain in effect or upheld. It is possible that hostilities with Iran, Hezbollah, the Houthis and terrorist groups in Syria will escalate, and that other terrorist organizations, including Palestinian military organizations in the West Bank, will join the hostilities. In addition, in June 2025, in light of continued nuclear threats and intelligence assessments indicating imminent attacks, Israel launched a preemptive strike directly targeting military and nuclear infrastructure inside Iran, aimed at disrupting Iran's capacity to coordinate or launch further hostilities against Israel, as well as to degrade its nuclear program. In response, Iran launched multiple waves of drones and ballistic missiles at Israeli cities. While a ceasefire was reached in June 2025 following 12 days of hostilities, on February 28, 2026, the United States and Israel launched coordinated military strikes against Iran, including attacks on strategic military infrastructure and leadership targets, with the stated aim of degrading Iran's capacity to conduct or support hostile operations against them. In response, Iran has fired missiles and drones toward population centers and military installations in Israel, Europe and neighboring countries in the Gulf region, and also launched counter-strikes against U.S. forces and allied bases throughout the Gulf region. A two-week ceasefire was brokered in April 2026 to allow the parties to negotiate, which was later extended, but its durability and the prospects for a successful agreement remain uncertain. A broader regional conflict involving additional state and non-state actors remains a significant risk. Additionally, following the fall of the Assad regime in Syria, Israel has conducted limited military operations targeting the Syrian army, Iranian military assets and infrastructure linked to Hezbollah and other Iran-supported groups.

These situations may potentially escalate in the future to more violent events which may affect Israel and us. Any hostilities, armed conflicts, terrorist activities involving Israel or the interruption or curtailment of

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trade between Israel and its trading partners, or any political instability in the region could adversely affect business conditions and our results of operations and could make it more difficult for us to raise capital and could adversely affect the market price of our Ordinary Shares. An escalation of tensions or violence might result in a significant downturn in the economic or financial condition of Israel, which could have a material adverse effect on our operations in Israel and our business. Parties with whom we do business have sometimes declined to travel to Israel during periods of heightened unrest or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners face to face. In addition, the political and security situation in Israel may result in parties with whom we have agreements involving performance in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements.

Since the war broke out on October 7, 2023, our operations have not been adversely affected by this situation, and we have not experienced disruptions to our business operations. As such, our product and business development activities remain on track. While the intensity and duration of the security situation in Israel have been difficult to predict, as were the economic implications on our business and operations and on Israel's economy in general, the ceasefire marks a potential shift towards stability in the region. If sustained, this could reduce the risk of disruptions to our business and the Israeli economy in general. However, if the war is renewed or expands to other fronts, such as Lebanon, Syria and the West Bank, our operations may be harmed.

Several countries, principally in the Middle East, still restrict doing business with Israel and Israeli companies, and additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in Israel or political instability in the region continues or increases. Similarly, Israeli companies are limited in conducting business with entities from several countries.

Our commercial insurance does not cover losses that may occur as a result of an event associated with the security situation in the Middle East. Although the Israeli government has in the past covered certain damages that were caused by terrorist attacks or acts of war, we cannot assure you that this government coverage will be maintained or, if maintained, will be sufficient to compensate us fully for damages incurred. Any losses or damages incurred by us could have a material adverse effect on our business.

Finally, political conditions within Israel may affect our operations. Israel held numerous general elections between 2019 and 2022, and prior to October 2023, the Israeli government pursued extensive changes to Israel's judicial system, which sparked extensive political debate and unrest. Actual or perceived political instability in Israel or any negative changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, our business, financial condition, results of operations and growth prospects.

#### Political relations could limit our ability to sell or buy internationally.
We could be adversely affected by the interruption or reduction of trade between Israel and its trading partners. Several countries, companies and organizations still restrict business with the State of Israel and with Israeli companies and continue to participate in a boycott of Israeli companies. Foreign government defense export policies towards Israel could also make it more difficult for us to obtain the export authorizations necessary for our activities. See "Risks Related to Our Business and Industry" for further information. These restrictive laws and policies may have an adverse impact on our operating results, financial conditions or the expansion of our business. Similarly, Israeli corporations are limited in conducting business with entities from several countries.

 ***Your rights and responsibilities as a shareholder will be governed by Israeli law, which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies.***

The rights and responsibilities of the holders of our Ordinary Shares are governed by our articles and by Israeli law. These rights and responsibilities differ in some material respects from the rights and responsibilities of shareholders in typical U.S. corporations. In particular, a shareholder of an Israeli company has certain duties to act in good faith and fairness in exercising its rights and performing its obligations toward the

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company and other shareholders and to refrain from abusing its power in the company, including, among other things, in voting at the general meeting of shareholders on certain matters, such as an amendment to the company's articles of association, an increase of the company's authorized share capital, a merger of the company, and approval of related party transactions that require shareholder approval. In addition, a shareholder who is aware that it possesses the power to determine the outcome of a shareholder vote or to appoint or prevent the appointment of a director or executive officer in the company has a duty of fairness toward the company with regard to such vote or appointment. There is limited case law available to assist us in understanding the nature of this duty or the implications of these provisions. These provisions may be interpreted to impose additional obligations on holders of our Ordinary Shares that are not typically imposed on shareholders of U.S. corporations.

 ***Certain of our research and development activities and programs were supported by Israeli Governmental grants. The terms of such grants require us to pay royalties for the sale of the applicable products. We may be required to pay penalties in addition to repayment of the grants to satisfy specified conditions in order to manufacture products and transfer technologies outside of Israel.***

Our research and development efforts were financed, in part, through royalty-bearing and non-royalty-bearing grants from the Israel Innovation Authority, or the IIA. As of December 31, 2025, we received IIA royalty-bearing grants totaling approximately $3.4 million, of which approximately $608,330 has been repaid. We may in the future apply to receive additional grants from the IIA. However, we cannot predict whether we will be entitled to any future grants, or the amounts of any such grants.

We are committed to pay royalties to the IIA at a rate of approximately 18% on sales proceeds from our products (and related know-how and services) that were developed, in whole or in part, using the IIA royalty-bearing grants we received under IIA programs, up to the total amount of royalty-bearing grants received, linked to the U.S. dollar and bearing annual interest at rates prescribed by the IIA's rules and guidelines.

In general, the Innovation Law requires, among other things, that the products developed as part of the programs under which the grants were given be manufactured in Israel and restricts the ability to transfer know-how funded by the IIA outside of Israel. A transfer for the purpose of the Innovation Law is generally interpreted very broadly and includes, among other things, any sale of the IIA-funded know-how, any license to develop the IIA-funded know-how or the products resulting from such IIA-funded know-how or any other transaction, which, in essence, constitutes a transfer of IIA-funded know-how. The transfer of IIA-funded know-how outside of Israel requires prior approval and may be subject to payment of a redemption fee to the IIA, calculated in accordance with a formula provided under the Innovation Law (which is subject to a cap of six times the total amount of the IIA grants received, plus interest). These restrictions may impair our ability to sell, license or otherwise transfer IIA-funded know-how outside of Israel.

In general, manufacturing products developed with IIA-funded know-how outside of Israel also requires prior approval from the IIA. Even if we do receive approval to manufacture products developed with IIA-funded know-how outside of Israel, such transfer of manufacturing capacity outside of Israel may be subject to an increase in the amount of royalties payable, *inter alia,* depending on the manufacturing volume that is performed outside of Israel, and such transfer will be subject to an increase in the rate of royalties. This restriction may impair our ability to outsource manufacturing or engage in our own manufacturing operations for those products or technologies.

The restrictions under the Innovation Law (including with respect to the restriction of the transfer of IIA-funded know-how and manufacturing outside of Israel) continue to apply even after payment of the full amount of royalties payable in respect of grants. However, upon payment of the redemption fee on a transfer of IIA-funded know-how outside Israel, the obligations towards the IIA (including the obligation to pay royalties) and restrictions under the Innovation Law cease to apply.

We cannot be certain that any approval of the IIA will be obtained on terms that are acceptable to us, or at all. We may not receive the required approvals should we wish to transfer IIA-funded know-how and/or manufacture products developed with IIA-funded know-how outside of Israel in the future. Furthermore,

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in the event that we undertake a transaction involving the transfer to a non-Israeli entity of IIA-funded know-how pursuant to a merger or similar transaction, or in the event we undertake a transaction involving the licensing of IIA Funded Know-How for R&D purposes to a non-Israeli entity, the consideration available to our shareholders may be reduced by the amounts we are required to pay to the IIA. Any approval, if given, will generally be subject to additional financial obligations. Failure to comply with certain requirements under the IIA's rules and guidelines and the Innovation Law may subject us to financial sanctions, to mandatory repayment of grants received by us (together with interest and penalties), as well as may expose us to criminal proceedings.

Subject to prior approval of the IIA, we may transfer the IIA-funded know-how to another Israeli company. If the IIA-funded know-how is transferred to another Israeli entity, the transfer would still require IIA approval but will not be subject to the payment of the redemption fee (however, there may be an obligation to pay royalties to the IIA from the income of such sale transaction as part of the royalty payment obligation, other than in specific circumstances that will be examined by the IIA, mainly when the transfer is between related entities). In such case, the acquiring company would have to assume all of the applicable restrictions and obligations towards the IIA (including the restrictions on the transfer of know-how and manufacturing outside of Israel) as a condition to the IIA's approval.

 ***The Israeli government grants that we have received for research and development expenditures require us to meet several conditions and may restrict our ability to manufacture some of our product candidates and transfer relevant know-how outside of Israel and require us to satisfy specified conditions.***

We have received royalty-bearing grants and non-royalty bearing grants from the government of Israel through the National Authority for Technological Innovation, or the Israel Innovation Authority, also known as the IIA (formerly known as the Office of the Chief Scientist of the Ministry of Economy and Industry, or the OCS), for the financing of a portion of our research and development expenditures in Israel. The total gross amount of grants actually received by us from the IIA as of December 31, 2025 totaled approximately $3.4 million. We are required to pay the IIA royalties from the revenues generated from the sale of products (and related services) developed (in all or in part), directly or indirectly, using the IIA grants we received as part of a research and development program funded by the IIA, or the Approved Program, (at rates which are determined under the IIA rules), up to the aggregate amount of the total royalty bearing grants received by the IIA, plus annual interest for a File (as defined under the IIA's rules). As we received grants from the IIA, we are subject to certain restrictions under the Encouragement of Research, Development and Technological Innovation in the Industry Law 5744-1984, or the Innovation Law, the regulations promulgated thereunder and the IIA's rules and guidelines. These restrictions may impair our ability to perform or outsource manufacturing of IIA funded products outside of Israel, granting licenses for R&D purposes or otherwise transfer outside of Israel the know-how resulting, directly or indirectly, in whole or in part, in accordance with or as a result of, research and development activities made according to an Approved Program, as well as any rights associated with such know-how (including later developments, which derive from, are based on, or constitute improvements or modifications of such know-how), or the IIA Funded Know-How.

The restrictions under the IIA's rules and guidelines continue to apply even after payment to the IIA of the full amount of royalties payable pursuant to the grants. In addition, the IIA may from time to time audit sales of products which it claims incorporate IIA Funded Know-How and this may lead to additional royalties being payable on additional product candidates, and may subject such products to the restrictions and obligations specified hereunder.

The IIA restrictions may impair our ability to perform or outsource manufacturing rights of IIA funded products outside of Israel or otherwise transfer or license for R&D purpose our IIA Funded Know-How in and outside of Israel without the approval of the IIA, and we cannot be certain that any approval of the IIA will be obtained on terms that are acceptable to us, or at all.

#### Our operations may be disrupted as a result of the obligation of management or key personnel to perform military service.
As of the date hereof, we currently have 36 full-time employees, including six members of senior management, most of whom are located in Israel. Certain of our employees and consultants in Israel, including members

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of our senior management, may be obligated to perform military reserve duty generally until they reach the age of 40 (or older, for officers or others who hold certain positions in the Israeli armed forces reserves) and, in the event of a military conflict, may be called to active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military reservists. In connection with the Israeli security cabinet's declaration of war against Hamas and possible hostilities with other organizations, the Israeli military called up several hundred thousand of its reserves for active service. It is possible that there will be similar large-scale military reserve duty call-ups in the future. Our operations could be disrupted by the absence of a significant number of our officers, directors, employees and consultants. Military service call ups that result in absences of personnel from us for an extended period of time may materially and adversely affect our business, prospects, financial condition and results of operations.

#### Changes to applicable tax laws and regulations or exposure to additional income tax liabilities could affect our future business and profitability.
We are an Israeli company and thus subject to Israeli corporate income tax as well as other local taxes applicable to our operations. New local laws and policy relating to taxes, whether in Israel or in any of the jurisdictions in which we operate, may have an adverse effect on our future business and profitability. Further, existing applicable tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us or our subsidiaries.

 ***We principally conduct our business operations through Silentium Ltd. in Israel; however due to the long arm provisions under the current PRC laws and regulations, the Chinese government may exercise significant oversight and discretion over our subsidiaries in Hong Kong and mainland China and may intervene in or influence our subsidiaries' operations at any time, which could result in a material change in the operations of our Hong Kong and PRC subsidiaries. Changes in the policies, regulations and rules, and in the enforcement of laws by the Chinese government may also be quick with little or no advance notice.***

Although we have two Asia-based wholly owned subsidiaries, Silentium (Asia) Limited (which is a holding company in Hong Kong that does not have significant business operations) and Silentium Acoustic Technology (Shanghai) Co., Ltd. (which is a subsidiary of Silentium (Asia) Limited and which functions as our customer service center in China, supporting customer engagement, technical services, sales activities, and integration-related activities for local customers), we are an Israeli company. Because we now maintain operations in Hong Kong and the PRC, due to long arm provisions under the current PRC laws and regulations, there remains regulatory uncertainty with respect to the application, implementation and interpretation of laws in China that could affect our operations. The PRC government may choose to exercise significant oversight and discretion, and the policies, regulations and rules and the enforcement of laws of the Chinese government to which we are subject may change rapidly and with little advance notice to us or our shareholders. As a result, the application, interpretation and enforcement of new and existing laws and regulations of the PRC are often uncertain. In addition, these laws and regulations may be interpreted and applied inconsistently by different agencies or authorities and may be inconsistent with our current policies and practices. Compliance with new laws, regulations and other government directives of the PRC may also be costly and such compliance or any associated inquiries or investigations or any other government actions may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ delay or impede our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ result in negative publicity or increase our operating costs; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ require significant management time and attention.

Any legal or regulatory changes that restrict or otherwise unfavorably impact our subsidiaries' ability to conduct their businesses could reduce revenues, increase costs, require them to obtain more licenses, permits, approvals or certificates or subject them to additional liabilities. To the extent that any new or more stringent measures are implemented, our business, financial condition and results of operations could be adversely affected, and the value of our Ordinary Shares could decrease.

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#### It could be difficult to enforce our contractual, intellectual property and other property rights in the PRC.
The enforcement of contractual, intellectual property and other property rights in the PRC may be difficult and expensive, and it may be difficult and expensive to effect service of process in the PRC. We cannot predict future developments in the PRC legal system relating to the interpretation or upholding of contractual, intellectual property or other property rights or the effect of such developments on our business. The uncertainty of laws and legal procedures in China, including effecting proper service of process, could negatively affect our ability to enforce our contracts with our customers in China and properly operate our PRC subsidiary.

 ***PRC laws and regulations governing businesses in the PRC apply directly to our PRC operations and may also be applicable to our Hong Kong subsidiary. These laws are sometimes vague and uncertain and, as a result, the legal and operational risks of operating in China apply directly to our PRC subsidiary and also apply to our Hong Kong subsidiary.***

We are subject to a variety of laws and regulations of the PRC, such as PRC laws regarding privacy, data security, cybersecurity and data protection, which apply directly to Silentium Acoustic Technology (Shanghai) Co., Ltd., a subsidiary of Silentium (Asia) Limited, which functions as our customer service center in China. Furthermore, due to the relationship between mainland China and Hong Kong, these laws may also be applicable to our Hong Kong subsidiary, Silentium (Asia) Limited. These laws and regulations are continuously evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting, particularly with respect to foreign laws. In particular, there are numerous laws and regulations regarding privacy and the collection, sharing, use, processing, disclosure and protection of personal information and other user data. Such laws and regulations often vary in scope, may be subject to differing interpretations and may be inconsistent among different jurisdictions.

The national laws adopted by the PRC are generally not applicable to Hong Kong according to the Basic Law of the Hong Kong Special Administrative Region (the "Basic Law"), which came into effect on July 1, 1997. The Basic Law is the constitutional document of Hong Kong, as it sets out the PRC's basic policies regarding Hong Kong. The principle of "one country, two systems," which is a prominent feature of the Basic Law, dictates that Hong Kong will retain its unique common law and capitalist system for 50 years after the handover in 1997. Under the principle of "one country, two systems," Hong Kong's legal system, which is different from that of the PRC, is based on the common law supplemented by statutes.

According to Article 18 of the Basic Law, national laws adopted by the PRC shall not be applied in Hong Kong, except for those listed in Annex III to the Basic Law, such as the laws in relation to the national flag, national anthem and diplomatic privileges and immunities. Further, there is no legislation stating that the laws in Hong Kong should be commensurate with those in the PRC. Despite the foregoing, the legal and operational risks of operating in China also apply to businesses operating in Hong Kong.

There remains uncertainty as to how the various PRC laws will be interpreted or implemented and whether the PRC regulatory agencies may adopt new laws, regulations, rules or detailed implementation and interpretation related to various laws, and as to the applicability of PRC laws to our business operations in Hong Kong. If any such new laws, regulations, rules or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. However, there can be no assurance that any new PRC laws, regulations, rules, implementation or interpretation will not have an adverse effect on our PRC or Hong Kong subsidiaries.

#### We could be affected by legal and political considerations involving Hong Kong.
As Hong Kong is a special administrative region of the People's Republic of China, the PRC may, by its political, legal and economic policies, exert influence on foreign companies doing business in Hong Kong. The PRC economy features a high degree of governmental involvement. In recent years, the PRC government has implemented various measures to guide the allocation of resources and thereby narrow the gaps between economic development in different regions in the country. We cannot offer any assurance that the PRC government will not, in the near future, adopt policies that will adversely affect political, legal and

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economic conditions in Hong Kong, presenting us with the same operational risks as those faced in the PRC, and which in turn may materially affect our business. Moreover, because we have a wholly owned subsidiary, Silentium (Asia) Limited, based in Hong Kong, which does not have significant business operations but holds our Chinese operational subsidiary, Silentium Acoustic Technology (Shanghai) Co., Ltd., our business operations and financial condition could be affected by political and legal developments in Hong Kong. Any adverse economic, social and/or political conditions, material social unrest, strikes, riots, civil disturbances or disobedience, as well as significant natural disasters, may adversely affect our business operations. For example, the Hong Kong protests that lasted from 2019 to 2020 were triggered by the introduction of the Fugitive Offenders amendment bill by the Hong Kong government. Despite not being enacted, similar incidents may cause large-scale protests or riots that could materially and adversely affect various sectors of the Hong Kong economy. Our business operations are susceptible to the effects of similar protests as well as any other incidents or factors that affect the stability of social, economic and political conditions in Hong Kong. We cannot guarantee that similar protests or social unrest will not occur in the future or that there will be no other events that could disrupt the legal, economic, political and social conditions in Hong Kong. If such events persist for a prolonged period of time, our overall business, financial condition and results of operations may be adversely affected.

#### Future inflation in China may increase our operating costs in China.
In recent years, the Chinese economy has experienced periods of rapid expansion and highly fluctuating rates of inflation. During the past ten years, the rate of inflation in China has been as high as 5.9% and as low as -0.8%. These factors have led to the adoption by the Chinese government, from time to time, of various corrective measures designed to restrict the availability of credit or regulate growth and contain inflation. High inflation may in the future cause the Chinese government to impose controls on credit and/or prices, or to take other action, which could inhibit economic activity in China. This could the operations of our subsidiary in China.

Moreover, the significant economic growth in China has resulted in a general increase in labor costs and a shortage of low-cost labor. Inflation may cause production and local operational costs to continue to increase. If we are unable to pass on the increase in operational costs to our customers, we may suffer a decrease in profitability and a loss of customers, and our results of operations could be materially and adversely affected.

#### General Risk Factors

#### Raising additional capital would cause dilution to our existing shareholders and may affect the rights of existing shareholders.
We may seek additional capital through a combination of private and public equity offerings, debt financings and collaborations and strategic arrangements. To the extent that we raise additional capital through the issuance of equity or convertible debt securities, your ownership interest will be diluted, and the terms may include liquidation or other preferences that adversely affect your rights as a holder of our Ordinary Shares.

#### Sales of a substantial number of our Ordinary Shares in the public market by our existing shareholders could cause our share price to fall.
Sales of a substantial number of our Ordinary Shares in the public market, or the perception that these sales might occur, could depress the market price of our Ordinary Shares and could impair our ability to raise capital through the sale of additional equity securities. Furthermore, while our directors, officers and shareholders will be subject to lock-up agreements with the underwriter of this offering that restrict their ability to transfer our Ordinary Shares, such lock-up will expire six months from the date of this prospectus. We are unable to predict the effect that sales may have on the prevailing market price of our Ordinary Shares. See "Shares Eligible for Future Sale" for further information.

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 ***If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they adversely change their recommendations or publish negative reports regarding our business or our shares, our share price and trading volume could decline.***

The trading market for our Ordinary Shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. We do not have any control over these analysts and we cannot provide any assurance that analysts will cover us or provide favorable coverage. If any of the analysts who may cover us adversely change their recommendation regarding our shares, or provide more favorable relative recommendations about our competitors, our share price would likely decline. If any analyst who may cover us were to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.

 ***We will incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.***

As a public company whose Ordinary Shares will be listed in the United States, we will incur significant legal, accounting and other expenses that we did not incur as a private company. We will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, the other rules and regulations of the SEC and the rules and regulations of the NYSE American stock exchange, or the NYSE American, and provisions of the Companies Law that apply to public companies such as us. The expenses that will be required in order to adequately prepare for being a public company will be material, and compliance with the various reporting and other requirements applicable to public companies will require considerable time and attention of management. For example, the Sarbanes-Oxley Act and the rules of the SEC and national securities exchanges have imposed various requirements on public companies, including requiring establishment and maintenance of effective disclosure and financial controls. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. These rules and regulations will continue to increase our legal and financial compliance costs and will make some activities more time-consuming and costly. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits on coverage or incur substantial costs to maintain the same or similar coverage. The impact of these events could also make it more difficult for us to attract and retain qualified personnel to serve on our board of directors, our board committees, or as executive officers.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, beginning as early as our annual report on Form 20-F for the fiscal year ended December 31, 2026. In addition, we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting beginning with our annual report on Form 20-F following the date on which we are no longer an emerging growth company. Our compliance with Section 404 of the Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant management efforts. We currently do not have an internal audit group, and we will need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge. If we are not able to comply with the requirements of Section 404 in a timely manner, the market price of our shares could decline and we could be subject to sanctions or investigations by the NYSE American, the SEC or other regulatory authorities, which would require additional financial and management resources.

Our ability to successfully implement our business plan and comply with Section 404 requires us to be able to prepare timely and accurate financial statements. We expect that we will need to continue to improve existing, and implement new operational and financial systems, procedures and controls to manage our business effectively. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial reporting is effective and to obtain an unqualified report on internal

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controls from our auditors as required under Section 404 of the Sarbanes-Oxley Act. This, in turn, could have an adverse impact on trading prices for our Ordinary Shares and could adversely affect our ability to access the capital markets.

#### We have no operating experience as a publicly traded company in the United States.
We have no operating experience as a publicly traded company in the United States. Although the individuals who now constitute our management team have experience managing a publicly-traded company, there is no assurance that the past experience of our management team will be sufficient to operate our company as a publicly traded company in the United States, including timely compliance with the disclosure requirements of the SEC. Following the completion of this offering, we will be required to develop and implement internal control systems and procedures in order to satisfy the periodic and current reporting requirements under applicable SEC regulations and comply with the NYSE American listing standards. These requirements will place significant strain on our management team, infrastructure and other resources. In addition, our management team may not be able to successfully or efficiently manage our company as a U.S. public reporting company that is subject to significant regulatory oversight and reporting obligations.

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### S PECIAL N OTE R EGARDING F ORWARD -L OOKING S TATEMENTS
This prospectus contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could, "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would," and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our plans and ability to obtain or protect intellectual property rights, including extensions of patent terms where available and our ability to avoid infringing the intellectual property rights of others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the need to hire additional personnel and our ability to attract and retain such personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the period over which we estimate our existing cash and cash equivalents will be sufficient to fund our future operating expenses and capital expenditure requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our ability to generate revenue and profit margin under our anticipated contracts which is subject to certain risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our dependence on third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our financial performance and our ability to repay our loans and debts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our ability to generate revenue and profit margin under our anticipated contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our ability to successfully develop, validate, and commercialize new products and technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expectations regarding having our Ordinary Shares listed on the NYSE American;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our anticipated use of the net proceeds from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our ability to negotiate favorable terms in any collaboration, licensing or other arrangements into which we may enter and perform our obligations under such collaborations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expected ability to operate effectively as a publicly traded company in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expectations regarding the commercialization and expansion of recent technology launches, strategic engagements, and mass production awards in automotive and public transportation sectors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our intentions to capitalize on geographic market trends, regulatory drivers, and consumer expectations to drive demand for advanced NVH solutions and acoustic management technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our outlook for expanding our competitive advantage by delivering production-ready, scalable, and deeply integrated acoustic solutions that support long-term deployment across vehicle generations and platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our plans to pursue new commercial agreements and licensing arrangements with Auto OEMs, Tier-1 suppliers, and semiconductor partners, supporting predictable, multi-year revenue streams;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our intentions to manage manufacturing requirements through outsourcing to qualified partners while maintaining core software and system design in-house;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expectations for disciplined headcount growth, aligned with customer adoption, expansion of production programs, and long-term strategic objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expectations regarding the commercialization timeline and market adoption of new technologies, including advanced acoustic solutions for electric and hybrid vehicles and broader mobility applications;

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our commitment to ongoing innovation and enhancement of our Active Acoustic Management platform, including development and rollout of new features such as Road Noise Cancellation, Intelligent RNC, Engine Noise Cancellation, Wind Noise Cancellation, HVAC Noise Cancellation, Internal Car Communication, and Spatial Voice Management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our intentions to expand our market presence through engagement with Auto OEMs, Tier-1 suppliers, semiconductor partners, and entry into adjacent transportation markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our expectations for continued deployment and adoption of our software-based Active Acoustics solutions across new vehicle models, OEMs, and transportation segments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ statements as to the impact of the political and security situation in Israel on our business.

Forward-looking statements are based on our management's current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management's beliefs and assumptions, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this prospectus may turn out to be inaccurate. Important factors that may cause actual results to differ materially from current expectations include, among other things, those listed under "Risk Factors" and elsewhere in this prospectus. Potential investors are urged to consider these factors carefully in evaluating the forward-looking statements.

The forward-looking statements included in this prospectus speak only as of the date of this prospectus. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this prospectus. See "Where You Can Find More Information."

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### U SE OF P ROCEEDS
We estimate that the net proceeds from the sale of Ordinary Shares in this offering will be approximately $12.5 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, based on an assumed initial public offering price of $7.00 per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus. If the underwriters exercise their option to purchase up to an additional 322,500 Ordinary Shares in full, we estimate that the net proceeds to us from this offering will be approximately $14.7 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

Each $1.00 increase (decrease) in the assumed initial public offering price of $7.00 per ordinary share would increase (decrease) the net proceeds to us from this offering, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, by $1,978 thousand, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same. We may also increase or decrease the number of Ordinary Shares we are offering. An increase (decrease) of 100,000 in the number of Ordinary Shares we are offering would increase (decrease) the net proceeds to us from this offering, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, by $644 thousand, assuming the assumed initial public offering price stays the same.

We currently expect to use the net proceeds from this offering for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ approximately $2.8 million to acquire new OEM customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ approximately $2.1 million for R&D;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ approximately $1.9 million to expand our business with existing OEM customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ approximately $1.5 million to strengthen our relationships with Tier-1 and semiconductor partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ approximately $1.0 million to expand into adjacent markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the remainder for working capital and general corporate purposes.

Although we currently anticipate that we will use the net proceeds from this offering as described above, there may be circumstances where a reallocation of funds is necessary. Due to the uncertainties inherent in the product development and commercialization process, it is difficult to estimate with certainty the exact amounts of the net proceeds from this offering that may be used for any of the above purposes on a stand-alone basis. Amounts and timing of our actual expenditures will depend upon a number of factors, including our sales, marketing and commercialization efforts, regulatory approval and demand for our product candidates, operating costs and other factors described under "Risk Factors" in this prospectus. Accordingly, our management will have flexibility in applying the net proceeds from this offering. An investor will not have the opportunity to evaluate the economic, financial or other information on which we base our decisions on how to use the proceeds.

Based on our current plans, we believe that our existing cash, cash equivalents and short-term deposits, together with the net proceeds of this offering, will be sufficient to enable us to fund our operating expenses and capital expenditure requirements for at least the next 24 months. We have based this estimate on assumptions that may prove to be incorrect, and we could use our available capital resources sooner than we currently expect.

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### D IVIDEND P OLICY
We have never declared or paid any cash dividends to our shareholders of our Ordinary Shares, and we do not anticipate or intend to pay cash dividends in the foreseeable future. Payment of cash dividends, if any, in the future will be at the discretion of our board of directors in compliance with applicable legal requirements and will depend on a number of factors, including future earnings, our financial condition, operating results, contractual restrictions, capital requirements, business prospects, our strategic goals and plans to expand our business, applicable law and other factors that our board of directors may deem relevant.

The Israeli Companies Law imposes further restrictions on our ability to declare and pay dividends. See "Description of Share Capital — Dividend and Liquidation Rights" for additional information.

Payment of dividends may be subject to Israeli withholding taxes. See "Taxation — Israeli Tax Considerations and Government Programs" for additional information.

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### C APITALIZATION
The following table sets forth our cash and cash equivalents and our capitalization as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ on an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ on a pro forma basis to give effect to the following events as if each event had occurred on or before December 31, 2025: (i) the conversion of 973,554 preferred shares (including 19,034 preferred shares issued upon the automatic conversion of warrants) into 973,554 Ordinary Shares; and (ii) the issuance of 1,972,153 Ordinary Shares upon the conversion of the SAFEs in the aggregate amount of $2,991,200 (including approximately $1,666,800 in committed capital from SAFEs executed between January and May 2026, of which $34,700 remains unfunded as of June 8, 2026), which will automatically convert upon the consummation of this offering, based on an assumed initial public offering price of $7.00 per Ordinary Share, which is the midpoint of the price range set forth on the cover page of this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ on a pro forma as adjusted basis to give effect to the additional issuance of 2,150,000 Ordinary Shares in this offering, at an assumed public offering price of $7.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses, as if the sale of the securities had occurred on December 31, 2025.

The pro forma as adjusted information set forth in the table below is illustrative only and will be adjusted based on the actual public offering price and other terms of this offering determined at pricing.

You should read this table in conjunction with the sections titled "Summary Consolidated Financial Data" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes included elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2025**  | **As of December 31, 2025**  | **As of December 31, 2025**  |
| **U.S. dollars, in thousands**  | **Actual**  | **Pro forma**  | **Pro Forma <br> As Adjusted<sup>(1)</sup>**  |
|  | | **(Unaudited)**  | **(Unaudited)**  |
| Cash and cash equivalents  | $831 | 2463 | 14929 |
| Short term debt  | 5260 | 3936 | 3351 |
| Long term debt  | 1802 | 1802 | 1802 |
| Temporary equity  | 7536 | 0 | 0 |
|  Ordinary shares, no par value per share: 3,326,330 shares authorized; 407,521 shares issued and outstanding, actual; 3,353,228 shares issued and outstanding, pro forma; and 5,503,228 shares issued and outstanding, pro forma as adjusted  | 0 | 0 | 0 |
| Additional paid-in capital  | 66670 | 77162 | 90694 |
| Translation reserve  | (5) | (5) | (5) |
| Accumulated deficit  | (77558) | (77558) | (78039) |
| Total shareholders' equity (deficit)  | (10893) | (401) | 12650 |
| Total capitalization  | (10893) | (401) | 12650 |

---

<sup>1)</sup>

Each $1.00 increase or decrease in the assumed initial public offering price of $7.00 per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease, respectively, the amount of cash, cash equivalents and short-term deposits, total shareholders'

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CAPITALIZATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp; (deficiency) equity and total capitalization by $1,978 thousand, assuming the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of Ordinary Shares we are offering. An increase or decrease of 100,000 in the number of Ordinary Shares we are offering would increase or decrease, respectively, each of the amount of cash, cash equivalents and short-term deposits, total shareholders' (deficiency) equity and total capitalization by $644 thousand, assuming the assumed initial public offering price per ordinary share, as set forth on the cover page of this prospectus, remains the same. The pro forma as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this offering determined at pricing.

The number of the Ordinary Shares to be issued and outstanding immediately after this offering as shown above assumes that all of the Ordinary Shares offered hereby are sold, is based on 407,521 Ordinary Shares issued and outstanding as of December 31, 2025, and includes an aggregate of 2,945,706 Ordinary Shares issuable upon the conversion of all of our outstanding preferred shares and all SAFEs immediately prior to the closing of this offering. This number excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 200,305 Ordinary Shares issuable upon the exercise of warrants outstanding as of such date, at a weighted average exercise price of $16.85;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 373,757 Ordinary Shares issuable upon the exercise of options held by directors, employees and consultants under our 2013 Israeli Share Option Plan, or the 2013 Plan, outstanding as of such date, at a weighted average exercise price of $9.30, of which 135,354 were vested as of such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 726,243 Ordinary Shares reserved for future issuance under our 2013 Plan.

Unless otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise by the representative of the underwriters of the over-allotment option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise by the representative of the underwriters of the warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ no exercise of outstanding warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the conversion of all of our outstanding preferred shares (including 19,034 preferred shares issued upon the automatic conversion of warrants) into an aggregate of 973,554 Ordinary Shares immediately prior to the closing of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 1,972,153 Ordinary Shares issuable upon the conversion of the SAFEs in the aggregate amount of $2,991,200 (of which $34,700 remains unfunded as of June 8, 2026), which will occur upon the completion of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the 2,060-for-1 Reverse Split which we completed in May 2026, and the customary adjustments to our outstanding options and warrants.

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### D ILUTION
If you invest in our Ordinary Shares in this offering, your interest will be immediately diluted to the extent of the difference between the initial public offering price per ordinary share in this offering and the pro forma as adjusted net tangible deficit per ordinary share after this offering. Dilution results from the fact that the initial public offering price per ordinary share is substantially in excess of the net tangible deficit per ordinary share. As of December 31, 2025, we had a historical net tangible deficit of $(3,357,000), or $(8.24) per ordinary share. Our net tangible deficit per share represents total tangible assets less total liabilities, divided by the number of Ordinary Shares outstanding on December 31, 2025.

Our pro forma net tangible deficit as of December 31, 2025, was $(401,000), or $(0.12) per Ordinary Share. Pro forma net tangible deficit per share represents total tangible assets less total liabilities, divided by the number of Ordinary Shares outstanding as of December 31, 2025, after giving effect to the following events as if each event had occurred on or before December 31, 2025: (i) the conversion of 973,554 preferred shares (including 19,034 warrants that were automatically converted into such preferred shares) into 973,554 Ordinary Shares; and (ii) the issuance of 1,972,153 Ordinary Shares upon the conversion of the SAFEs in the aggregate amount of $2,991,200 (including approximately $1,666,800 in committed capital from SAFEs executed between January and May 2026, of which $34,700 remains unfunded as of June 8, 2026), which will automatically convert upon the consummation of this offering, based on an assumed initial public offering price of $7.00 per Ordinary Share, which is the midpoint of the price range set forth on the cover page of this prospectus.

After giving effect to the sale of Ordinary Shares in this offering at an assumed initial public offering price of $7.00 per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses, and after taking into account the automatic conversion of all outstanding preferred shares into Ordinary Shares, our as adjusted net tangible book value at December 31, 2025 would have been $2.30 per share. This represents an immediate increase in as adjusted net tangible book value of $2.37 per share to existing shareholders and immediate dilution of $4.70 per ordinary share to new investors. The following table illustrates this dilution per ordinary share:

---

| | |
|:---|:---|
| Assumed public offering price per Ordinary Share  | $7.00 |
| Pro forma net tangible deficit per Ordinary Share as of December 31, 2025  | $(0.12) |
| Increase in net tangible book value per Ordinary Share attributable to new investors  | $2.37 |
| Pro forma as adjusted net tangible book value per Ordinary Share after this offering  | $2.30 |
| Dilution per Ordinary Share to new investors  | $4.70 |
| Percentage of dilution in net tangible book value per Ordinary Share for new investors  | 67.2% |

---

The as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this offering determined at pricing. A $1.00 increase (decrease) in the assumed initial public offering price of $7.00 per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) our as adjusted net tangible book value as of December 31, 2025 after this offering by approximately $0.36 per ordinary share, and would increase (decrease) dilution to investors in this offering by $0.64 per ordinary share, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of Ordinary Shares we are offering. An increase (decrease) of 100,000 in the number of Ordinary Shares we are offering would increase (decrease) our as adjusted net tangible book value as of December 31, 2025 after this offering by approximately $0.07 per ordinary share, and would decrease (increase) dilution to investors in this offering by approximately $0.07 per ordinary share, assuming the assumed initial public offering price per ordinary share remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

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DILUTION

If the underwriters exercise in full their option to purchase additional Ordinary Shares, the as adjusted net tangible book value will increase to $2.53 per ordinary share, representing an immediate increase in as adjusted net tangible book value to existing shareholders of $2.68 per ordinary share and an immediate dilution of $4.47 per ordinary share to new investors participating in this offering.

The following table shows, as of December 31, 2025, on an as adjusted basis, the number of Ordinary Shares purchased from us, the total consideration paid to us and the average price paid per share by existing shareholders and by new investors purchasing Ordinary Shares in this offering at an assumed initial public offering price of $7.00 per ordinary share, which is the midpoint of the price range set forth on the cover page of this prospectus, before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Shares**  | **Shares**  | **Total Consideration**  | **Total Consideration**  | **Average Price <br> Per Ordinary <br> Share**  |
| | **Number**  | **Percent**  | **Amount**  | **Percent**  | **Average Price <br> Per Ordinary <br> Share**  |
| Existing shareholders  | 3353228 | 60.9% | $77162000 | 83.7% | $23.01 |
| New investors  | 2150000 | 39.1% | $15050000 | 16.3% | $7.00 |
| Total  | 5503228 | 100.0% | $92212000 | 100% | $16.76 |

---

A $1.00 increase (decrease) in the assumed initial public offering price of $7.00 per Ordinary Share (the midpoint of the price range set forth on the cover page of this prospectus) would increase (decrease) the total consideration paid by investors participating in this offering, total consideration paid by all shareholders and the average price per share paid by all shareholders by approximately $1,978 thousand, $1,978 thousand and $2.66, respectively, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same and before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, 100,000 share increase (decrease) in the number of Ordinary Shares offered by us, as set forth on the cover of this prospectus, would increase (decrease) the total consideration paid by investors participating in this offering, total consideration paid by all shareholders and the average price per share paid by all shareholders by approximately $644 thousand, $644 thousand and $2.40, respectively, assuming the assumed initial public offering price of $7.00 per Ordinary Share (the midpoint of the price range set forth on the cover page of this prospectus) remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The number of the Ordinary Shares to be issued and outstanding immediately after this offering as shown above assumes that all of the Ordinary Shares offered hereby are sold, is based on 407,521 Ordinary Shares issued and outstanding as of December 31, 2025, and includes an aggregate of 2,945,706 Ordinary Shares issuable upon the conversion of all of our outstanding preferred shares and all SAFEs immediately prior to the closing of this offering. This number excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 200,305 Ordinary Shares issuable upon the exercise of warrants outstanding as of such date, at a weighted average exercise price of $16.85;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 373,757 Ordinary Shares issuable upon the exercise of options held by directors, employees and consultants under our 2013 Israeli Share Option Plan, or the 2013 Plan, outstanding as of such date, at a weighted average exercise price of $9.30, of which 135,354 were vested as of such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 726,243 Ordinary Shares reserved for future issuance under our 2013 Plan.

To the extent that outstanding options are exercised, new options or warrants are issued or we issue additional ordinary shares in the future, there will be further dilution to new investors. We may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our equity holders.

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### M ANAGEMENT'S D ISCUSSION AND A NALYSIS OF F INANCIAL C ONDITION AND R ESULTS OF O PERATIONS
 *You should read the following discussion in conjunction with our audited consolidated financial statements including the related notes thereto, beginning on page F-1 of this prospectus. In addition to historical information, this discussion contains forward-looking statements that involve risks and uncertainties. You should read the sections of this prospectus titled "Risk Factors" and "Special Note Regarding Forward-Looking Statements" for a discussion of the factors that could cause our actual results to differ materially from our expectations.* 

#### Overview
Silentium Ltd. develops software-based Active Acoustics solutions designed to manage in-cabin sound in vehicles. The Company's technology reduces unwanted noise, enhances desired audio cues, and enables personalized, configurable acoustic experiences, thereby supporting improved comfort, safety, and perceived quality in modern vehicles.

Silentium's solutions are primarily deployed in the automotive market and are designed to integrate with vehicle computing, control, and audio systems. Rather than relying on heavy mechanical insulation or dedicated hardware modules, the Company's software leverages existing microphones, speakers, processors, and electronic control units (ECUs) to monitor, estimate, and dynamically shape acoustic fields inside the vehicle cabin. This software-centric approach aligns with the automotive industry's transition toward software-defined vehicle architectures, in which functionality is increasingly implemented and updated through software rather than fixed hardware components.

The Company works directly with Auto OEMs, Tier-1 suppliers, and semiconductor and digital signal processing partners to support adoption across vehicle platforms and production programs. Silentium's technology is typically embedded at the vehicle platform level and remains integrated throughout the production lifecycle of the model, which generally ranges from four to seven years. As of May 31, 2026, Silentium's technology was deployed in approximately 1.8 million vehicles across 24 vehicle models and five Auto OEMs (see "Business — Our Key Performance Indicators"). As additional vehicles enter production, the number of vehicles incorporating our software increases, generating royalties over the production life of each vehicle program and enhancing revenue visibility.

Revenues are derived from non-recurring engineering (NRE) fees generated during the software development and integration phases of specific vehicle programs, followed by per-vehicle royalties that become payable upon the commencement of serial production. Our royalty revenue depends on the Auto OEM's production volumes over the multi-year lifespan of the vehicle program. The Company also integrates its algorithms into existing infotainment and audio system architectures through Tier-1 suppliers and semiconductor manufacturers, which can facilitate deployment across additional vehicle platforms.

Silentium operates globally, with its headquarters and principal research and development activities based in Israel and additional engineering, technical support, and business development presence in North America, Europe, and Asia. This enables close collaboration with Auto OEMs and Tier-1 suppliers across major automotive production hubs and supports ongoing program execution, calibration, and validation activities. While automotive remains the Company's core focus, its Active Acoustic Management (AAM) technology may also be applicable to other transportation and mobility use cases, including rail, commercial vehicles, and heavy machinery, where noise reduction, communication clarity, and acoustic zoning are relevant.

For more information regarding our business and operations, see the section entitled "Business" below.

#### Basis of Presentation
Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. We currently conduct our business through one operating segment.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

#### Components of Operating Results

#### Sales
We generate revenue primarily through software licensing agreements tied to OEM programs and platforms, complemented by integration and calibration services.

#### Cost of Sales
Our cost of sales includes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ employee-related expenses, such as salaries and share-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ expenses relating to outsourced and contracted services, such as consulting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ office space rental costs.

#### General and administrative expenses
Our general and administrative expenses consist primarily of personnel costs, including salaries and share-based compensation related to directors and employees, facility costs, patent application and maintenance expenses, and external professional service costs, including legal, accounting, audit, finance, business development, investor relations and human resource services, and other consulting fees.

We anticipate that our general and administrative expenses will increase in the future as we increase our administrative headcount and infrastructure to support our continued research and development programs and the potential commercialization of our products. We also anticipate that we will incur increased expenses related to audit, legal, regulatory and tax-related services associated with maintaining compliance with the SEC requirements, director and officer insurance premiums, director compensation, and other costs associated with being a public company.

#### Research and development expenses
Our research and development expenses include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ employee-related expenses, such as salaries and share-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ expenses relating to outsourced and contracted services, such as consulting and advisory services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ supply and development costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ costs associated with regulatory compliance.

We recognize research and development expenses as we incur them.

Research and development activities are a primary focus. Development timelines, the probability of success and development costs can differ materially from expectations. In addition, we cannot forecast whether and when collaboration arrangements will be entered into, if at all, and to what degree such arrangements would affect our development plans and capital requirements. We expect our research and development expenses to increase over the next several years as our development program progresses. We would also expect to incur increased research and development expenses if we were to identify and develop additional technologies.

#### Results of Operations
Our results of operations have varied in the past and can be expected to vary in the future due to numerous factors. We believe that period-to-period comparisons of our operating results are not necessarily meaningful and should not be relied upon as indications of future performance.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Below is a summary of our results of operations for the periods indicated:

---

| | | |
|:---|:---|:---|
| **(in thousands of USD, except share and per share data)**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| | **2025**  | **2024**  |
| **Statements of Operations Data:** |  |  |
| Revenues  | $3949 | 3911 |
| Cost of revenues  | 1248 | 995 |
| Gross profit  | 2701 | 2916 |
| Research and development expenses, net  | 3914 | 3826 |
| Selling and marketing expenses  | 1087 | 1458 |
| General and administrative expenses  | 2047 | 1968 |
| Public listing expenses  |  |  |
| Loss from operations  | (4347) | (4336) |
| Finance income (expense), net  | (211) | 623 |
| Tax  | 158 | 124 |
| Exchange gains (losses) arising on translation of foreign operations  | 9 | (11) |
| Total comprehensive loss for the period  | $(4707) | (3848) |

---

#### Revenue information by country:

---

| | | |
|:---|:---|:---|
| **(in thousands of USD)**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| | **2025**  | **2024**  |
| United States  | $1234 | 1568 |
| Japan  | 1532 | 1222 |
| Peoples' Republic of China ("PRC")  | 885 | 666 |
| All others  | 298 | 455 |
|  | 3949 | 3911 |
| **Significant customers:** |  |  |
| Customer A – USA (Tier 1 Integration Partner)  | $1234 | 1568 |
| Customer B – Japan (Tier 2 Integration Partner)  | 1478 | 1139 |
| Customer C – PRC (Auto OEM customer)  | 764 | 649 |

---

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
 *Revenues* 

Sales increased by approximately $38,000, or 1.0%, to $3,949,000 for the year ended December 31, 2025, compared to $3,911,000 for the year ended December 31, 2024. The increase resulted mainly from growth in revenues recognized from software licenses.

For the years ended December 31, 2025 and 2024, we derived approximately 30% and 28% of our revenue, respectively, from four Auto OEM customers. We had four and five OEM and Auto OEM customers for the years ended December 31, 2025 and 2024, respectively. We had five and four Tier 1 and Tier 2 integration partners for the years ended December 31, 2025 and 2024, respectively. During the same periods, we derived approximately 70% and 72% of our revenue, respectively, from our Tier 1 and Tier 2 integration partners. Our top three customers accounted for approximately 88% and 86% of our revenue for the years ended December 31, 2025 and 2024, respectively. No other individual customer accounted for more than 10% of our total revenue. We do not derive revenue from service providers or development vendors.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 *Cost of sales* 

Cost of sales increased by approximately $253,000, or 25.4%, to $1,248,000 for the year ended December 31, 2025, compared to $995,000 for the year ended December 31, 2024. The increase resulted mainly from a one-time compensatory salary related charge in 2025.

 *Research and development expenses* 

Research and development expenses increased by approximately $88,000, or 2.3%, to $3,914,000 for the year ended December 31, 2025, compared to $3,826,000 for the year ended December 31, 2024. The increase resulted mainly from a decline in government grants that support R&D activities in 2025.

 *Sales and marketing expenses* 

Sales and marketing expenses decreased by approximately $371,000, or 25.4%, to $1,087,000 for the year ended December 31, 2025, compared to $1,458,000 for the year ended December 31, 2024. The decrease resulted mainly from a reduction in compensation paid to sales and marketing employees and contractors in 2025.

 *General and administrative expenses* 

General and administrative expenses increased by approximately $79,000, or 4.0%, to $2,047,000 for the year ended December 31, 2025, compared to approximately $1,968,000 for the year ended December 31, 2024. The increase resulted mainly from additional audit fees incurred for a PCAOB audit in 2025.

 *Financial income (expenses), net* 

Financial expenses increased by approximately $834,000, or 133.9%, to $211,000 for the year ended December 31, 2025, compared to financial income of $623,000 for the year ended December 31, 2024. In the year ended December 31, 2024, we recognized financial income of $623,000 primarily as a result of the reevaluation of the outstanding SAFE agreements from 2023 and 2024, which were converted pursuant to the Series C Preferred Share Purchase and Recapitalization Agreement in September 2024.

 *Net loss for the year* 

Net loss for the year increased by approximately $879,000, or 22.9%, to $4,716,000 for the year ended December 31, 2025, compared to $3,837,000 for the year ended December 31, 2024. The increase resulted mainly from increases in cost of sales, research and development, general administrative, and financial expenses, offset by an increase in revenues and a decrease in selling and marketing expenses.

#### Critical Accounting Policies and Estimates
We describe our significant accounting policies and estimates in Note 2 to our annual financial statements contained elsewhere in this prospectus. We believe that these accounting policies and estimates are critical in order to fully understand and evaluate our financial condition and results of operations.

We prepare our financial statements in accordance with U.S. GAAP.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of our accounting policies and the reported amounts recognized in the financial statements. On a periodic basis, we evaluate our estimates, including those related to share-based compensation and derivatives. We base our estimates on historical experience, authoritative pronouncements and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Other than as described above, for the periods included in the financial statements, we do not believe there are critical accounting estimates that are subject to uncertainty or that have significantly changed during the relevant periods.

#### Recently-Issued Accounting Pronouncements
Certain recently-issued accounting pronouncements are discussed in Note 2, Significant Accounting Policies, to the financial statements included in elsewhere in this registration statement, regarding the impact of the U.S. GAAP standards as issued by the FASB that we will adopt in future periods in our financial statements.

#### Liquidity and Capital Resources

#### Overview
Since our inception, we have incurred losses and negative cash flows from our operations. For the year ended December 31, 2025, we incurred a net loss of $4,716,000 while net cash of $4,206,000 was used in our operating activities. For the year ended December 31, 2024, we incurred a net loss of $3,837,000 while net cash of $4,476,000 was used in our operating activities. As of December 31, 2025 and December 31, 2024, we had working capital of $(3,153,000) and $1,567,000, respectively, and an accumulated deficit of approximately $77,558,000 and $72,842,000, respectively. As of December 31, 2025, our cash and cash equivalents totaled approximately $831,000. We believe that after the completion of this offering our cash and cash equivalents will enable us to fund our operations for at least the next 24 months.

Through December 31, 2025, we have financed our operations primarily through private placements, Simple Agreements for Future Equity, or SAFEs, and government grants for research and development projects received from the IIA for aggregate proceeds of approximately $75,000,000.

As a result, these factors along with other factors are indicators that material uncertainties exist that raise significant doubt about our ability to continue as a going concern and, therefore, our ability to realize assets and discharge liabilities in the normal course of business.

The table below shows a summary of our cash flows for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  |
| **(in thousands of USD)**  | **2025**  | **2024**  |
| **Cash at beginning of the period**  | $2265 | 1680 |
| Net cash used in operating activities  | (4206) | (4476) |
| Net cash used in investing activities  | 331 | 151 |
| Net cash provided by financing activities  | 2395 | 4941 |
| **Net increase (decrease) in cash and cash equivalents**  | $(1480) | 616 |
| **Effects of exchange rate changes on cash**  | $46 | (31) |
| **Cash at the end of the period**  | $831 | 2265 |

---

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
 *Net cash provided by (used in) operating activities* 

Net cash used in operating activities decreased by approximately $270,000, or 6.0%, to approximately $4,206,000 for the year ended December 31, 2025, compared to approximately $4,476,000 for the year ended December 31, 2024. The decrease resulted mainly from an increase in trade receivables, partially offset by a decrease in other accounts receivables and an increase in trade payables and other accounts payables.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 *Net cash used in investing activities* 

Net cash used in investing activities increased by $180,000, or 119.2%, to approximately $331,000 for the year ended December 31, 2025, compared to $151,000 for the year ended December 31, 2024. The increase resulted mainly from a lower restricted deposit to secure an additional bank loan in 2025.

 *Net cash used in financing activities* 

Net cash provided by financing activities decreased by $2,546,000, or 51.5%, to approximately $2,395,000 for the year ended December 31, 2025, compared to $4,941,000 for the year ended December 31, 2024. The decrease resulted mainly from lower investments in our Preferred C shares in 2025 compared to 2024.

We have incurred losses and cash flow deficits from operations since our inception, resulting in accumulated losses at December 31, 2025 of approximately $77,558,000. We anticipate that we will continue to incur net losses for the foreseeable future. To meet future capital needs, we would need to raise additional capital through equity or debt financing or other strategic transactions. However, any such financing may not be on favorable terms or even available to us. Our failure to obtain sufficient funds on commercially acceptable terms when needed would have a material adverse effect on our business, results of operations and financial condition. Our forecast for the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and the actual amount of our expenses could vary materially and adversely as a result of a number of factors. We have based our estimates on assumptions that may prove to be wrong, and our expenses could prove to be significantly higher than we currently anticipate.

Our future capital requirements will depend on many factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the progress and costs of our research and development activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the costs of development and expansion of our operational infrastructure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ our ability, or that of our collaborators, to achieve development milestones and other events or developments under potential future licensing agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the amount of revenues and contributions we receive under future licensing, collaboration, development and commercialization arrangements with respect to our technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the costs of filing, prosecuting, enforcing and defending patent claims and other intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the costs of contracting with third parties to provide sales and marketing capabilities for us or establishing such capabilities ourselves, once our technologies are developed and ready for commercialization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the costs of acquiring or undertaking development and commercialization efforts for any future products or technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the magnitude of our general and administrative expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ any additional costs that we may incur under future in- and out-licensing arrangements relating to our technologies and futures products.

Until we can generate significant recurring revenues, we expect to satisfy our future cash needs through capital raising and/or developing applications of one or more of our product candidates. We cannot be certain that additional funding will be available to us on acceptable terms, if at all. If funds are not available on favorable terms, or at all, we may be required to delay, reduce the scope of or eliminate research or development efforts or plans for commercialization with respect to our technologies and make necessary change to our operations to reduce the level of our expenditures in line with available resources.

We are a development-stage technology company and it is not possible for us to predict with any degree of accuracy the outcome of our research and development efforts. As such, it is not possible for us to predict with

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any degree of accuracy any significant trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net loss, liquidity or capital resources, or that would cause financial information to not necessarily be indicative of future operating results or financial condition. However, to the extent possible, certain trends, uncertainties, demands, commitments and events are described herein.

#### Indebtedness

#### Bank Mizrahi Loans
In October 2022, we entered into a loan agreement, or the 2022 Loan Agreement, with Bank Mizrahi Tefahot Ltd., or the Bank, for a long-term loan, or the 2022 Loan, of up to $4,000,000 to be repaid in 30 monthly payments beginning six months after the initial drawdown, which bears interest at a rate of 7.5% plus Term SOFR per annum. In October 2022, we drew down the first installment of $2,000,000, followed by a second drawdown of $1,000,000 in February 2023. In 2024 and 2025 the Bank agreed to defer principal repayments on the outstanding balance of the 2022 Loan.

As part of the terms of the 2022 Loan Agreement, we extended the term of the Bank's previously outstanding warrant (the "Mizrahi Warrant"), which was granted to the Bank in connection with a loan agreement in 2020 and entitles the Bank to purchase 2,185 Ordinary Shares at an exercise price of $183 per share. Alternatively, the Bank is entitled to require a cash payment equal to $300,000, or the Alternative Payment, upon the consummation of this offering.

In addition to the extension of the Mizrahi Warrant, we issued a new warrant to the Bank, or the New Warrant, which entitles the Bank to invest $300,000 in consideration for 44,810 Preferred C Shares at an exercise price of $6.7 per share in addition to 200% warrant coverage exercisable at an exercise price of $6.7 per share, or alternatively to participate as an investor in the September 2025 SAFE, with an investment of $300,000, in lieu of exercising such New Warrant. Alternatively, the Bank is entitled to require a cash payment equal to $375,000, or the Cash Payment, upon the consummation of this offering.

In April 2026, the Bank agreed to defer its decision regarding the exercise of the warrants until at least six months after the completion of this offering, provided that such closing shall occur before July 20, 2026.

In December 2024, we entered into an additional loan agreement with the Bank, or the December 2024 Loan, for a long-term loan in the aggregate principal amount of $1,000,000 which is to be repaid in 24 equal monthly installments beginning twelve months after the date of each advance and bears interest at an annual rate of 7.5% plus Term SOFR. In November 2025, we entered into an additional loan with the Bank, or the November 2025 Loan, for a short-term loan in the aggregate principal amount of $400,000 which is to be repaid in one installment in November 2026 and bears an interest at an annual rate of 7.5% plus Term SOFR. The December 2024 Loan and the November 2025 Loan provide for a bonus payment of $300,000 which is payable to the Bank upon the consummation of this offering.

Our outstanding loans from the Bank totaled $2.4 million as of June 8, 2026. The maturity dates of these loans range from July 2026 to June 2028.

#### Quantitative and Qualitative Disclosures About Market Risk
We are exposed to a variety of financial risks, which result from our financing, operating and investing activities. The objective of financial risk management is to contain, where appropriate, exposures in these financial risks to limit any negative impact on our financial performance and position. Our main financial instruments are our cash and other receivables, trade and other payables. The main purpose of these financial instruments is to raise finance for our operations. We actively measure, monitor and manage our financial risk exposures by various functions pursuant to the segregation of duties and principals. The risks arising from our financial instruments are mainly credit risk and currency risk. The risk management policies employed by us to manage these risks are discussed below.

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#### Credit risk
Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. We closely monitor the activities of our counterparties and control the access to our intellectual property which enables it to ensure the prompt collection. Our main financial assets are cash as well as trade receivables and other receivables and represent our maximum exposure to credit risk in connection with our financial assets. Wherever possible and commercially practical, we hold cash with major financial institutions in Israel, and from time to time we may hold cash balances with financial institutions in other jurisdictions, including United States and China, primarily to support local operations. Such balances may be subject to regulatory, currency conversion, or repatriation restrictions.

#### Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not our functional currency. We are exposed to foreign exchange risk arising from currency exposure primarily with respect to the NIS, as the majority of our expenses are denominated in NIS, as well as to the U.S. dollar (USD) and other currencies in which we conduct operations. As most of our revenues are USD and RMB derived, the USD is our primary functional currency. Our policy is not to enter into any currency hedging transactions.

#### Liquidity risks
Liquidity risk is the risk that arises when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability, but it can also increase the risk of loss. We have procedures to minimize such loss by maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. As of December 31, 2025, we had accumulated losses of $77,558,000.

#### Inflation risk
We do not believe that inflation has had a material effect on our business, financial condition or results of operations in the reporting period. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through hedging transactions. Our inability or failure to do so could harm our business, financial condition and results of operations.

#### Off-Balance Sheet Arrangements
We do not believe that off-balance sheet arrangements and commitments are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

#### Emerging Growth Company Status
We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a requirement to present only two years of audited financial statements in addition to any required interim financial statements and correspondingly reduced Management's Discussion and Analysis of Financial Condition and Results of Operations disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ to the extent that we no longer qualify as a foreign private issuer, (i) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and (ii) exemptions from the requirement to hold a non-binding advisory vote on executive compensation, including golden parachute compensation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ an exemption from compliance with the requirement that the Public Company Accounting Oversight Board has adopted regarding a supplement to the auditor's report providing additional information about the audit and the financial statements.

We may take advantage of these exemptions for up to five years or until such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company upon the earliest to occur of: (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; (iii) the date on which we are deemed to be a large accelerated filer under the rules of the SEC; or (iv) the last day of the fiscal year following the fifth anniversary of this offering. We may choose to take advantage of some but not all of these exemptions. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This means that an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

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### B USINESS

#### Company Overview
Silentium Ltd. develops software-based Active Acoustics solutions designed to manage in-cabin sound in vehicles. The Company's technology reduces unwanted noise, enhances desired audio cues, and enables personalized, configurable acoustic experiences, thereby supporting improved comfort, safety, and perceived quality in modern vehicles.

Silentium's solutions are primarily deployed in the automotive market and are designed to integrate with vehicle computing, control, and audio systems. Rather than relying on heavy mechanical insulation or dedicated hardware modules, the Company's software leverages existing microphones, speakers, processors, and electronic control units (ECUs) to monitor, estimate, and dynamically shape acoustic fields inside the vehicle cabin. This software-centric approach aligns with the automotive industry's transition toward software-defined vehicle architectures, in which functionality is increasingly implemented and updated through software rather than fixed hardware components.

The Company works directly with Auto OEMs, Tier-1 suppliers, and semiconductor and digital signal processing partners to support adoption across vehicle platforms and production programs. Silentium's technology is typically embedded at the vehicle platform level and remains integrated throughout the production lifecycle of the model, which generally ranges from four to seven years.

Silentium is a development-stage company. To date, the Company's commercialized products consist exclusively of road noise and engine noise cancellation solutions. As of May 31, 2026, Silentium's technology was deployed in approximately 1.8 million vehicles across 24 vehicle models and five Auto OEMs (see "Business — Our Key Performance Indicators"). As additional vehicles enter production, the number of vehicles incorporating our software increases, generating royalties over the production life of each vehicle program and enhancing revenue visibility.

Revenues are derived from non-recurring engineering (NRE) fees generated during the software development and integration phases of specific vehicle programs, followed by per-vehicle royalties that become payable upon the commencement of serial production. Our royalty revenue depends on the Auto OEM's production volumes over the multi-year lifespan of the vehicle program. The Company also integrates its algorithms into existing infotainment and audio system architectures through Tier-1 suppliers and semiconductor manufacturers, which can facilitate deployment across additional vehicle platforms.

Silentium operates globally, with its headquarters and principal research and development activities based in Israel and additional engineering, technical support, and business development presence in North America, Europe, and Asia. This enables close collaboration with Auto OEMs and Tier-1 suppliers across major automotive production hubs and supports ongoing program execution, calibration, and validation activities. While automotive remains the Company's core focus, its Active Acoustic Management (AAM) technology may also be applicable to other transportation and mobility use cases, including rail, commercial vehicles, and heavy machinery, where noise reduction, communication clarity, and acoustic zoning are relevant.

#### Market Size, Opportunity & Drivers
As the automotive and broader transportation industries evolve, Auto OEMs are required to manage noise and vibration across increasingly complex vehicle architectures and operating conditions. Rising consumer expectations for cabin comfort, the growing adoption of software-defined vehicle architectures, and increasing system integration across vehicle platforms are reshaping vehicle acoustics and increasing the importance of more flexible and scalable NVH solutions. In addition, the continued adoption of electrified powertrains has introduced new acoustic and vibration characteristics that further increase NVH management requirements, particularly as traditional sources of masking noise such as internal combustion engines (ICE) are reduced or eliminated.

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Silentium's Active Acoustics technology addresses NVH-related in-cabin sound challenges through a software-based approach, aligning with industry trends toward advanced, real-time acoustic solutions.

#### Total Addressable Market
According to *NVH Market Forecasts*, the global NVH market is projected to grow from approximately $13.9 billion in 2024 to approximately $21.2 billion by 2032, representing a compound annual growth rate of approximately 5.4%. Automotive applications within the broader NVH market represent over 40% of the market, and remain the largest end market for NVH solutions due to regulatory requirements, growing technical and architectural complexity of modern vehicle platforms, and increasing emphasis on cabin comfort and perceived quality according to *NVH Market Forecasts*.

#### Market Drivers
We believe that the following market drivers are increasing demand for advanced acoustic solutions addressing regulatory compliance, platform complexity, and cabin comfort requirements across modern vehicle architectures, aligning with our technology and service offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Improvements in Auto OEM Cabin Acoustics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Consumer Expectations and Brand Differentiation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Pressure on Auto OEMs to reduce cost, complexity, and vehicle weight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Stringent Noise and Vibration Regulatory Standards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Late-Stage NVH Resolution Constraints

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Geographic Trends

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Broader Transportation Applications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Increasing adoption of electric and hybrid vehicle platforms

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ New Regulatory Requirements

#### Improvements in Auto OEM Cabin Acoustics
Auto OEMs constitute the largest and most significant purchasers of NVH solutions.<sup>2</sup> Cabin acoustics are increasingly recognized as a core element of vehicle quality and brand identity, particularly as powertrain performance becomes commoditized. NVH solutions are evolving from hardware-intensive, passive systems toward software-driven approaches that can be integrated into the vehicle's core computing architecture. The industry's transition toward software-defined vehicle architectures aligns with Silentium's Active Acoustics approach, which integrates into OEM core computing platforms and replaces hardware-intensive NVH solutions with scalable software.

#### Consumer Expectations and Brand Differentiation
Consumer expectations for cabin acoustics have risen substantially. Features historically associated with premium vehicles — such as quiet cabins, clear voice interaction, and immersive audio — are increasingly expected across a broader range of vehicle segments. As a result, cabin acoustics have become an important driver of customer satisfaction and a meaningful factor in how Auto OEMs position their brands around perceived quality, comfort, and refinement. In response, Auto OEMs are increasingly moving away from isolated, hardware-centric NVH solutions toward holistic, system-level acoustic management approaches that enable consistent cabin sound quality and brand tuning across vehicle platforms.

<sup>2</sup>

Global Noise, Vibration And Harshness Market Size by Industry (Automotive, Aerospace and Defense), By Application (Interior Noise, Exterior Noise), By Solution Type (Software Solutions, Hardware Solutions) By Geographic Scope And Forecast, Verified Market Research

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Holistic acoustic management refers to managing the entire in-cabin sound environment at the system-level rather than mitigating individual noise sources with discrete hardware components. Silentium enables this approach through software-based Active Acoustics that integrates with the vehicle's core audio and computing systems to dynamically monitor and control cabin sound in real time, supporting consistent acoustic performance and brand-specific tuning across vehicle platforms.

#### Pressure on Auto OEMs to reduce cost, complexity, and vehicle weight
Traditional NVH solutions have historically relied on mechanical components and passive materials, including mufflers, intake resonators, and sound dampeners, which add cost, weight, and system complexity. Software-based and adaptive NVH approaches enable Auto OEMs to address acoustic requirements with reduced reliance on hardware, supporting lower vehicle mass, simplified system architectures, and greater flexibility across platforms. These considerations are increasingly important as current and future vehicle designs place greater emphasis on cost efficiency, modularity, and software-defined functionality.

![[MISSING IMAGE: ph_frompassivenvh-4clr.jpg]](ph_frompassivenvh-4clr.jpg)

#### Regulatory Standards
Regulatory authorities worldwide are imposing increasingly stringent noise and vibration regulations, recognizing noise pollution as a material environmental, health, and safety concern. These standards compel Auto OEMs to meet defined limits on both interior and exterior vehicle acoustics across the vehicle lifecycle, from initial design through validation and production. Compliance has shifted NVH from a secondary consideration to a core engineering requirement, driving the adoption of advanced NVH solutions. As regulatory thresholds tighten, particularly in urban environments and with the transition to electric vehicles, effective NVH performance has become increasingly critical for regulatory compliance, market access, and risk mitigation.

#### Late-Stage NVH Resolution Constraints
Increasing vehicle complexity and regulatory validation requirements heighten the cost and risk of resolving NVH issues late in the development cycle, driving demand for solutions that mitigate acoustic issues without requiring physical redesign.

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#### Geographic Trends
According to third-party industry research, including reports published by Verified Market Research, the Asia-Pacific region accounts for a significant — often the largest — share of global NVH solutions and testing markets and is experiencing faster growth, driven by high levels of automotive production and increasing vehicle electrification. North America and Europe represent substantial NVH markets, characterized by established Auto OEM and supplier ecosystems and ongoing demand for advanced cabin comfort and acoustic performance.

#### Broader Transportation Applications
Beyond passenger vehicles, active acoustic and NVH solutions are increasingly applied in other transportation segments where noise control has direct safety and performance implications. In commercial vehicles and buses, improved cabin acoustics can reduce driver fatigue and support clearer in-cabin communication. Similar requirements exist in aerospace, rail, and heavy machinery applications, where managing noise and vibration contributes to operator alertness, safety, regulatory compliance, and overall operational efficiency.

#### Increased Adoption of Electric Vehicles (EV)
Electric vehicle adoption is accelerating globally. According to the International Energy Agency's *Global EV Outlook 2024*, EVs represented more than one-fifth of global new car sales in 2023 and, under current stated government policies, are projected to account for approximately 40% of global new car sales by 2030, with higher penetration under more ambitious policy scenarios<sup>3</sup>. Electric vehicles lack an internal combustion engine and its sounds that tended to mask other unwanted noises such as road/tire, wind and heating, ventilation and air conditioning (HVAC) blower noises but also, provided the vehicle with an acoustic brand signature (tuned intake, exhaust sounds) especially for sports cars. Therefore, Auto OEMs now look at advanced acoustic management such as ANC and active sound design to improve cabin acoustic environment and at the same time, provide the in-cabin powertrain sounds and exterior acoustic signatures that reflect the vehicle's nature and brand attributes.

#### Our Solution
Active Acoustic Management (AAM) represents the Company's software-defined approach to controlling, shaping, and personalizing the in-cabin sound environment. Silentium's AAM is built around two flagship pillars Quiet Bubble (QB) and Personal Sound Bubble (PSB), which together deliver broadband active acoustic management and individualized acoustic zone management within the vehicle cabin. Broadband active acoustic management refers to the real-time control of a wide range of noise frequencies across the entire cabin environment, while individualized acoustic zones enable targeted sound control for specific occupants or seating positions. AAM is part of our broader Active Acoustics framework, which also includes non-AAM capabilities such as sound field enhancement and tooling. The conceptual AAM pillars (QB and PSB) are implemented through the AAM software platform are described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Quiet Bubble (QB):** Provides broadband ANC through real-time control of a wide range of noise frequencies across the entire cabin environment, supporting a quieter and more comfortable in-cabin experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Personal Sound Bubble (PSB):** Enables individualized acoustic zones, allowing targeted sound control for specific occupants or seating positions, including private and customized listening experiences.

Together, these pillars address critical NVH challenges, including road, wind, and powertrain noise; cabin sound variability across driving conditions; and interference between alerts, voice, and infotainment audio. By replacing traditional passive NVH hardware solutions with adaptive software integrated into the vehicle's audio and computing systems, Silentium enables Auto OEMs to reduce cost, weight, and system complexity while improving in-cabin comfort, clarity, and overall user experience.

<sup>3</sup>

https://www.iea.org/reports/global-ev-outlook-2024

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 *Technology* 

As vehicle architectures evolve, acoustic control is increasingly being addressed through software-based systems rather than fixed mechanical solutions. Auto OEMs are transitioning toward software-defined vehicle (SDV) architectures that rely on centralized computing and software-based control to manage an expanding range of vehicle functions.

Within these environments, acoustic management must operate in real time, integrate with vehicle control and audio systems, and support validation and updates over the vehicle lifecycle. Silentium's solutions are designed to operate within such SDV architectures, supporting acoustic functionality as part of broader vehicle platform development rather than as a standalone subsystem.

Silentium's ANC technology excels at reducing low-frequency road noise, one of the most common (especially in EVs) and difficult noise sources to address due to its high energy and tendency to transmit through vehicle structures, by using predictive signal processing to generate real-time "anti-noise," a sound signal emitted in opposite phase to the unwanted noise. By integrating sensing, processing, and sound output into a single low-latency system, the solution enables effective cancellation of low-frequency noise, reducing reliance on heavy passive damping materials.

![[MISSING IMAGE: ph_producttechnology-4c.jpg]](ph_producttechnology-4c.jpg)

Within this software-defined architecture, Silentium's AAM platform offer a modular set of active acoustic capabilities that address distinct in-cabin noise sources and sound-use cases. These capabilities are delivered as software features that can be deployed individually or in combination, depending on vehicle architecture, program requirements, and development stage.

Our current and planned active acoustic features portfolio includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Road Noise Cancellation (RNC):** Real-time suppression of road-induced noise across varying road surfaces and driving conditions. RNC has been commercially deployed and continues to be implemented in additional production vehicle programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **iRNC (Intelligent Road Noise Cancellation):** An advanced evolution of RNC that incorporates enhanced sensing and adaptive algorithms. iRNC is in the final stage of commercialization and requires the completion of final validation prior to commercial launch. We currently expect iRNC to

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be ready for commercial launch within three to six months, with an estimated remaining cost to achieve commercialization of approximately $0.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Engine Noise Cancellation (EOC):** Active attenuation of engine and powertrain-related noise signatures. EOC has been commercially deployed and continues to be implemented in additional production vehicle programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Wind Noise Cancellation (WNC):** Software-based mitigation of wind noise, particularly at higher speeds. This capability is currently in an late-stage development phase. Additional algorithmic refinement, cost optimization, and compatibility assessments across diverse vehicle cabins are required prior to commercial launch. We currently expect WNC to be ready for commercial launch within 18 to 30 months following the launch of iRNC, with an estimated remaining cost to achieve commercialization of approximately $0.8 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **HVAC Noise Cancellation (HNC):** Reduction of noise generated by heating, ventilation, and air-conditioning systems during cabin operation. This capability is currently in an early-stage development phase, and will require further product refinement and cost optimization prior to commercial launch. Because the development of HNC leverages advancements made in our WNC technology, we currently expect HNC to be ready for commercial launch within six months following the launch of WNC, with an estimated remaining cost to achieve commercialization of approximately $0.4 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Internal Car Communication (ICC):** Enhancement of speech intelligibility between occupants without increasing overall cabin volume by leveraging ANC components. This capability is included in the product roadmap. ICC is in the development stage, and will require algorithmic advancement, signal-processing refinement, and feasibility validation prior to commercial launch. We currently expect ICC to be ready for commercial launch within 12 to 18 months, with an estimated remaining cost to achieve commercialization of approximately $0.5 million.

 *Active Acoustic Management (AAM)* 

During the vehicle design phase, Auto OEMs invest significant efforts to reduce noise, vibration, and harshness, typically using mechanical and passive acoustic materials, such as vibration isolators, dampers, bushings, engine and chassis mounts, acoustic panels, barriers, and sound-absorbing or sound-insulating materials. Today, Active Acoustics as software is increasingly important from the initial design phase, especially as the severity of some NVH issues, such as road and tire noise, aerodynamic wind noise, and structural vibrations that affect all vehicle platforms, and high-frequency motor, inverter, and gear whine in electric and hybrid vehicles previously masked by internal combustion engines, are often only detected close to the planned production date. NVH mitigation by software is a practical solution to resolve these issues without delaying production, avoiding enormous financial and reputational consequences.

The AAM architecture integrates directly into the vehicle's existing control and audio computing systems, including customer electronic control units (ECUs) and audio processors, and supports standard Auto OEM development workflows, first validating performance in software simulations (model-in-the-loop) and then on real vehicle hardware before production (hardware-in-the-loop). Over-the-air (OTA) software updates allow parameters and features to be managed and updated throughout the vehicle lifecycle without physical intervention.

Silentium's software design tools extend beyond algorithm development to support end-of-line testing and verification, which refers to acoustic validation performed at the final stage of vehicle production to confirm performance consistency before vehicles leave the manufacturing line. This process supports quality assurance and reduces post-deployment variability. These tools are designed to integrate with existing Auto OEM computer-aided design (CAD) environments and simulation workflows, so that OEMs can, where they choose, incorporate acoustic validation from early design stages through final production validation as part of their standard engineering processes.

The AAM software platform described below implements the QB and PSB pillars introduced earlier and provides the runtime, integration, and validation environment for all AAM functions.

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 *Platform Architecture and Core Capabilities* 

Our AAM platform combines real-time sensing, signal estimation, and adaptive control to mitigate unwanted noise by generating counteracting acoustic signals, while also enabling personalized acoustic zones, defined as targeted sound control for specific occupants or seating positions within the cabin. The platform is built on a set of core acoustic software foundations, meaning the underlying signal-processing and sound-field control capabilities that operate at the level of the physical sound field. These foundations enable control of sound in three-dimensional cabin space (X-Y-Z), across the frequency spectrum, and over time. Core capabilities include spatial source fission, spatial noise canceling, spatial sound field control, and spatial echo canceling, all supported by continuous virtual sensing of the acoustic environment. Together, these capabilities form the signal-processing and modeling basis for precise, real-time manipulation of sound within complex and dynamic vehicle cabins.

On top of these foundations sits a modular family of Active Acoustic edge software products, each delivering a distinct, acoustic function, with offerings ranging from production-ready and proven solutions to future-ready capabilities still under development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Quiet Bubble (QB) suite:** Delivers broadband ANC by controlling a wide range of noise frequencies in real time, creating a quieter and more comfortable cabin. The QB suite is a mature, production-proven ANC software framework that serves as the foundation for multiple noise control features across our product portfolio. Continuous enhancement of the QB suite requires ongoing framework optimization, automation improvements, and adaptation to support the simultaneous operation of multiple ANC-based capabilities. We currently expect to complete these enhancements within 18 months, with an estimated cost of approximately $0.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Personal Sound Bubble (PSB) suite:** Enables individualized acoustic zones, providing targeted sound control for specific occupants or seating positions, including private listening experiences. The PSB suite is in the development stage, and will require system level engineering, integration with infotainment and audio architectures, and validation to reach market ready maturity prior to commercial launch. Current development activities include multi zone audio control refinement, voice processing feature tuning, perceptual sound design modeling, and integration with vehicle loudspeaker, amplifier, and microphone configurations. We currently expect the PSB suite to be ready for commercial launch within 24 to 36 months, with an estimated remaining cost to achieve commercialization of approximately $1.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **AcS (Acoustics Sound Design) suite:** Supports controlled sound creation and shaping for alerts, feedback, and brand-defined acoustic signatures. The AcS suite is in an early development stage, and will require system level engineering, integration with infotainment and audio architectures, and validation to reach market ready maturity prior to commercial launch. We currently expect the AcS suite to be ready for commercial launch in 24 to 36 months, with an estimated remaining cost to achieve commercialization of approximately $1.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Spatial-VM (Spatial Voice Management) suite:** An A.I. research and development initiative focused on spatially aware voice capture, enhancement, and separation to support in-cabin communication and voice-interaction use cases. The Spatial-VM suite is at early research stage, and will require several stages of research and pre-production development, including dataset expansion, neural network model development, model based optimization of acoustic control performance, computational efficiency improvements suitable for embedded automotive hardware, and system level integration with our existing platform architecture before commercial launch. Based on our current progress and typical OEM product planning cycles, we do not expect AI-driven acoustic control capabilities, including the Spatial-VM suite, to reach commercial readiness for at least 36 to 60 months. Furthermore, any commercial deployment will depend on adoption within future OEM vehicle programs. Given this early stage of development and our dependence on OEM program timing and integration requirements, we are unable to reasonably estimate the commercialization costs for the Spatial-VM suite at this time.

The cost estimates presented above reflect only the incremental investments required to advance our internal product roadmap, and they do not include cost associated with the broader engineering activities that

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comprise our regular R&D operations, such as product implementation, integration, validation, and commercialization work performed for customer projects.

Consequently, the continued development, validation, and commercialization of our planned software packages, including PSB, AcS, Spatial-VM, and other AAM-related capabilities, will require financial resources beyond those currently available to us. While we anticipate that the net proceeds from this offering, combined with future revenues, will be used to support our development activities, completing these multi-year development programs may require raising additional capital. If we are unable to obtain such financing when needed and on acceptable terms, we may be forced to delay, scale back, or alter our growth plans.

The edge software products are unified through a common Active Acoustics Framework and API, where the framework provides the shared software logic and rules for how acoustic functions work together, and the API provides standardized interfaces for integration, configuration, and scaling within a software-defined vehicle architecture. Silentium's proprietary AcustiFusion intelligent AAM tuning platform provides practical tools to design, tune, and optimize acoustic performance across vehicle programs, reducing development time and ensuring consistent results from prototype through series production.

At the system-level, this architecture forms a scalable Active Acoustics Management platform that transforms sound into a controllable software layer. By leveraging existing in-vehicle audio hardware — microphones, processors, and speakers — the platform replaces heavy, static mechanical solutions with lightweight, adaptive, and updatable software. The result is a future-ready acoustic architecture that supports evolving vehicle platforms, new use cases, and long-term software-driven acoustic functionality across the vehicle lifecycle.

#### Go-To-Market Strategy
Our go-to-market strategy is centered on early and deep engagement with Auto OEMs, primarily through non-exclusive collaboration with Tier 1 audio suppliers, infotainment, and system integrators, which serve as our principal channel for identifying and accessing new Auto OEM programs at an early stage, which define system requirements and control vehicle platform specifications. Initial engagement is typically initiated through these Tier 1 partners during pre-development or platform definition phases and typically begins with paid services, funded by either the Auto OEM or the relevant Tier 1 supplier, including demonstrations, evaluations, tuning, and proof-of-concept (PoC) activities, or Engagement Services, allowing us to influence technical specifications and performance criteria before formal procurement processes begin.

These Engagement Services are typically performed prior to RFQ issuance or platform freeze and represent a discrete, non-recurring revenue stream. Following technical validation and sourcing decisions, production deployment and lifecycle responsibilities are allocated in line with program-specific Auto OEM sourcing decisions and procurement structures, with system integration and manufacturing performed by the Auto OEM or a Tier-1 supplier, as applicable, and Silentium is providing the software delivery, updates, and ongoing technical support.

OEM Engagement serves as the primary demand-generation channel. Even where OEMs do not ultimately procure software directly, early technical validation positions the Company's solutions as reference implementations within OEM specifications and requests for quotation (RFQs).

 *Sales Channels* 

Our commercial organization is structured around dedicated account managers and business development personnel assigned to specific Auto OEMs, Tier 1 suppliers, and semiconductor partners. Account managers lead technical engagement, commercial structuring, and long-term relationship development within each assigned account, supporting continuity across evaluation, RFQ, and production phases. In select regions, including Japan, we complement our direct teams with established automotive trading partners who facilitate customer access, program coordination, and local commercial practices under a commission-based model. This structure enables consistent engagement with customers across vehicle program lifecycles while aligning our sales motion with regional procurement norms.

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We operate a multi-channel sales model, tailored to Auto OEM procurement preferences and regional market practices. The Company typically engages Auto OEMs first, as Tier-1 suppliers are generally more responsive to the Company's solutions once Auto OEMs recognize the value proposition and incorporate those solutions into their platform requirements and sourcing directives, which are then communicated to their Tier-1 suppliers, and channel mix varies by geography and OEM procurement culture.

Commercial engagement follows Auto OEM sourcing decisions at the program level, ensuring a single commercial path per program and minimizing channel conflict.

 *Direct OEM Sales* 

In cases where Auto OEMs elect to license software directly, the Company enters into licensing agreements with the OEM and provides ongoing support and updates. This model is increasingly relevant as Auto OEMs assume greater responsibility for the development, integration, validation, and lifecycle management of in-vehicle software within software-defined vehicle architectures.

 *Indirect Sales via Tier-1 Suppliers* 

For Auto OEMs that procure complete systems exclusively through Tier-1 suppliers, Silentium would be directed to such Tier-1 audio, infotainment, or system integrators. OEM-driven RFQs issued to Tier-1 suppliers often specify performance requirements shaped during earlier and, where those requirements align with the Company's capabilities as demonstrated through prior evaluations, proof-of-concept (PoC) activities, or technical assessments, Tier-1 suppliers may license our technology to comply with Auto OEM specifications.

Tier-1 suppliers are incentivized to license the Company's software as it enables compliance with OEM specifications, reduces integration risk, and supports competitiveness in system-level sourcing processes.

 *Licensing via Semiconductor and DSP Suppliers* 

The Company licenses its software to automotive semiconductor and DSP suppliers, which embed the technology into reference designs and platforms sold to Tier-1 suppliers and OEMs. This channel extends market reach and accelerates adoption across multiple vehicle programs and geographies.

Semiconductor partners benefit from increased platform differentiation and higher adoption of their silicon solutions, while the Company benefits from scaled distribution without assuming system integration or manufacturing responsibilities.

 *Ecosystem-Driven Market Expansion* 

In addition to direct engagement with Auto OEMs and Tier-1 suppliers, the Company works with a focused set of complementary partners, including sensor providers, audio hardware suppliers, and system integrators, to accelerate integration of its technology into production vehicle platforms. These partnerships are structured around technical interoperability and joint technical testing and system-level verification, enabling faster system-level demonstrations, reducing integration risk for Tier-1 suppliers, and supporting scalable deployment across multiple vehicle programs.

 *Growth Strategy* 

Our growth strategy focuses on four clear areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Expansion within existing customers by addressing additional noise sources and adding new software features and products over the vehicle lifecycle. We currently expect to use approximately 15% of the net proceeds from this offering to expand our business with existing OEM customers over the two to three years following this offering. See "Use of Proceeds."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ New OEM and Tier-1 customer acquisition, through both direct and indirect channels. We currently expect to use approximately 22% of the net proceeds from this offering to acquire new OEM customers over the three to four years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Ecosystem partnerships that accelerate system integration and reduce execution risk for Tier-1 suppliers, supporting scalable deployment across multiple vehicle programs. We currently expect to use approximately 12% of the net proceeds from this offering to strengthen our relationships with Tier-1 and semiconductor partners over the two to three years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Continuing investment in algorithm development, early-stage, exploratory research relating to AI-driven acoustic control, and integration tooling that reduces engineering effort and supports predictable validation outcomes. We currently expect to use approximately 17% of the net proceeds from this offering for R&D over the two to four years following this offering. See "Use of Proceeds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Adjacent transportation markets, including buses, rail, heavy vehicles, and other non-passenger automotive platforms, leveraging the same core technology and sales model. We currently expect to use approximately 8% of the net proceeds from this offering to expand into adjacent markets over the two to four years following this offering. See "Use of Proceeds."

 *Sales Process* 

The Company's engagements with Auto OEM customers generally follow a staged commercialization process aligned with industry procurement and vehicle development cycles. For new customers, engagements typically begin with a demonstration, paid proof-of-concept (PoC), technical workshops, or tuning and calibration services (Engagement Services), followed by a bid or RFQ process. Programs that are awarded as mass production programs proceed through a production program phase and ultimately reach start of production, or SOP. Following SOP, the vehicle enters mass production, and the Company's technology is deployed over the production life of the applicable vehicle model which typically spans seven years. Although our agreements do not include exclusivity provisions, Auto OEMs generally select a single supplier for active acoustic software per vehicle model due to program-level validation requirements, system integration complexity, calibration consistency, and the high cost of re-validating multiple suppliers within the same production program. As a result, once the Company's solution is selected and validated for a given vehicle model, it is generally the sole deployed solution for that model for its whole production lifecycle including subsequent model updates, even though no contractual exclusivity is granted. For existing OEM customers, subsequent programs generally progress through these stages more efficiently, reflecting established commercial and technical relationships. Lifecycle and expansion considerations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Early-stage engagements primarily generate non-recurring engineering revenue from engagement services and, in some cases, during the production program phase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Following SOP, the Company typically generates royalty-based revenue over the production life of the vehicle model.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Follow-on programs with existing Auto OEM customers typically involve shorter sales cycles, a higher likelihood of award, and often expand through adoption across additional vehicle models, platforms, or subsequent model generations within the same OEM.

This structure provides predictable, multi-year revenue streams and high retention, making our model inherently sticky.

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![[MISSING IMAGE: fc_salesprocessstage-4clr.jpg]](fc_salesprocessstage-4clr.jpg)

#### Business Model
The Company generates revenue primarily through a royalty-based licensing model, under which Auto OEMs pay a per-vehicle royalty for each vehicle produced with Silentium's software embedded. Royalties are typically payable based on vehicle production volumes and are tied to specific vehicle platforms or programs. The license granted to the OEM is non-exclusive, limited in scope, and does not transfer ownership of the software.

In addition to royalties, the Company generates non-recurring engineering and service revenue related to software integration, calibration, and validation during vehicle development. These services are typically performed during pre-production phases and are intended to support adoption and successful deployment of the Company's software; they are not usage-based and do not represent the primary revenue driver.

Once integrated into a vehicle platform, Silentium's software typically remains in production for the life of that platform (approximately 5 – 6 years), with royalty revenue scaling based on vehicle production volumes over the program lifecycle. This reflects the broader transition toward vehicle architectures in which core functions are implemented and updated through software integrated into centralized computing systems rather than fixed hardware components.

Silentium also works with Tier-1 suppliers and semiconductor partners to support integration into OEM platforms and facilitate adoption across vehicle portfolios, while maintaining a consistent royalty-based economic model aligned with OEM production volumes.

#### High-level contract characteristics with Auto OEMs
The following description summarizes the contractual structure and key terms that govern the Company's commercial arrangements with Auto OEMs and Tier-1 suppliers, rather than the economic impact of those arrangements.

Silentium's commercial arrangements with Auto OEMs are typically structured under two primary contract types and are generally consistent across customer programs. These arrangements generally include (i) engineering service agreements for non-recurring services, such as software porting, tuning, validation,

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and integration, and (ii) model-specific software licensing agreements that permit the Auto OEM or its Tier-1 supplier to embed Silentium's proprietary acoustic software in defined vehicle platforms.

Engineering service agreements are generally entered into in connection with Auto OEM development or pre-production programs and typically define a scoped work plan with milestone-based deliverables, defined project durations, customer acceptance criteria for each phase, and fixed, non-recurring fees. Such agreements are typically governed by a project-specific statement of work, or SOW, that defines the applicable engineering tasks, development steps, and acceptance criteria. Deliverables are structured as a series of milestones, which may vary in number depending on the complexity of the applicable proof-of-concept or start-of-production program. Customer acceptance is generally required at each milestone prior to progression to subsequent phases, and work packages are typically independent, allowing either party to discontinue further work following completion of an accepted milestone pursuant to termination-for-convenience provisions. These agreements are project-based in nature and are intended to support Auto OEM evaluation, integration, and validation activities. All intellectual property rights in the Company's proprietary software, algorithms, and underlying technology remain with Silentium, and the Auto OEM does not receive rights beyond use of the delivered software built for evaluation or integration purposes.

Software licensing agreements are typically non-exclusive, model-specific, and non-transferable, with rights limited to embedding the licensed software in specified vehicle models or associated Tier-1 hardware platforms used by Auto OEMs. Each licensing arrangement is generally limited to a single vehicle model or version, with a separate license exhibit for each model specifying applicable fees, term, and permitted Tier-1 hardware platforms. Licenses are non-sublicensable, except to approved Tier-1 suppliers solely for purposes of embedding or installing the licensed software in authorized hardware. License fees are generally structured on a per-unit, usage-based pricing model, with royalties payable based on the Auto OEM's or Tier-1 supplier's reported vehicle installations or semiconductor shipments incorporating the licensed software.

Agreements generally do not include exclusivity provisions, minimum volume commitments, or long-term purchase obligations; however, Auto OEMs generally select a single acoustic software supplier for each vehicle model due to program-level integration complexity, calibration requirements, and the cost of validating multiple suppliers within the same platform. Accordingly, there are no guaranteed minimum royalty payments, and revenue derived from licensing arrangements is depends on the sole deployed solution for that and on actual Auto OEM production levels. Renewal and termination provisions typically permit either party to terminate the agreement upon advance written notice, subject to customary conditions, while preserving the Auto OEM's or Tier-1 supplier's rights to continue using the licensed software in vehicles already in production. As a result, the commercial value of licensing arrangements is primarily dependent on the Auto OEM's actual production volumes and reported usage over the lifecycle of the applicable vehicle model.

Taken together, the Company's contractual framework with Auto OEMs and Tier-1 suppliers combines non-recurring engineering service fees with ongoing, unit-based software license royalties, aligned with the development cycle and production lifecycle of individual vehicle programs.

 *Contract Types* 

**Engineering Service Agreements (including NRE, POC, and SOP-related projects):** Project-based, milestone-driven agreements covering software porting, tuning, validation, and system integration activities for Auto OEM programs, typically governed by SOWs with defined tasks, acceptance criteria, and fixed fees, and structured to allow termination following completion of accepted milestones.

**Model-Specific Software Licensing Agreements:** Agreements granting limited rights to embed Silentium's proprietary software in defined vehicle models or Tier-1 hardware platforms used by Auto OEMs, typically on a non-exclusive, per-unit royalty basis, with separate license exhibits per vehicle model and no minimum volume commitments.

The Company has entered into various service and licensing agreements with its top three customers for 2025 and 2024. Under these agreements, specific licenses granted typically have terms ranging from five to

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up to 10 years, subject to mutual agreement for extension. The agreements are subject to termination provisions that generally require prior notice ranging from three to six months.

#### Installed Base and Revenue Visibility
Our installed base is expanding rapidly, enhancing forward revenue visibility. The table below shows our historical growth in the Auto OEM relationships and number of vehicles on the road. For more information, please see "— Our Key Performance Indicators" below.

---

| | | |
|:---|:---|:---|
| **Year-End**  | **Auto OEM <br> Relationships**  | **Vehicles on <br> the Road**  |
| 2022  | 1 | ~142,000  |
| 2023  | 4 | ~591,000  |
| 2024  | 5 | ~1.1 million  |
| 2025  | 5 | ~1.6 million  |

---

![[MISSING IMAGE: ph_silentiumexpansion-4clr.jpg]](ph_silentiumexpansion-4clr.jpg)

#### Our Key Performance Indicators
Our management uses certain key performance indicators, or KPIs to make decisions, establish our business plans and forecasts, identify trends affecting our business, and evaluate our overall performance, which KPI are typically used by our competitors in the same industry, but are not recognized under accounting principles generally accepted in the United States. Management believes future trends in such KPIs will reflect our Company's ongoing transition from a development-stage company to a scaled, production-driven software platform within the automotive sector. We define our key performance indicators as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Vehicles on the Road:** "Vehicles on the road" is defined as the cumulative number of manufactured vehicles incorporating our software that are in use. Management typically estimates "vehicles on the road" using historical production data, adjusted for reporting timing variances and management's assumptions regarding production ramp-up. Management believes this metric evaluates the cumulative scale of our software installation in vehicles and assesses the breadth and durability of our OEM program deployments. As of May 31, 2026, we had approximately

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.8 million vehicles on the road, compared to approximately 1.6 million and 1.1 million vehicles on the road as of December 31, 2025 and December 31, 2024, respectively. Based on current production programs, awarded OEM platforms and internal forecasts, management expects the number of vehicles on the road to increase significantly from 2025 to 2029. Management anticipates this projected growth will be driven primarily by the expansion of existing production programs, the commencement of serial production for newly awarded platforms, and anticipated increases in underlying OEM production volumes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Automotive Production Programs in Production:** "Automotive production programs in production" represents the number of distinct OEM vehicle programs for which our software has entered serial production and remains active as of the end of the applicable period. A single program encompasses one or more vehicle models or trim levels and may cover multiple vehicle platforms. Management utilizes this metric to assess the diversity and durability of our OEM relationships and the progression of awarded programs into revenue-generating production phases, and believes an increase in this metric generally reflects the successful commercialization of previously awarded programs and the broader deployment of our technology across additional OEM platforms. As of December 31, 2025, we had seven active OEM production programs in serial production, compared to six active OEM production programs as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Automotive Production Volumes:** "Automotive production volumes" represents the total number of vehicles produced during the applicable period that incorporate our software. Management utilizes this metric to evaluate production activity within active OEM programs and to access the scale and ramp-up dynamics of those programs. For the year ended December 31, 2025, automotive production volumes were approximately 600 thousand vehicles, compared to approximately 500 thousand vehicles for the year ended December 31, 2024. Automative production volumes may fluctuate from period to period due to variations in OEM production schedules, platform ramp-ups, regulatory adoption timing, and broader automotive industry conditions. Over the long term, management anticipates that automative production volumes will increase as additional awarded programs commence serial production and existing programs progress into higher-volume phases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **AUTO OEM Customers:** "Auto OEM customers" represents the number of automotive original equipment manufacturers for which we have active automative production programs or awarded programs progressing toward serial production. As of December 31, 2025, we had five Auto OEM customers with active production programs, compared to five OEM customers as of December 31, 2024. Management utilizes this metric to assess market penetration, evaluate the expansion of our Auto OEM relationships, and monitor our ability to mitigate customer concentration risk. Management believes that securing new Auto OEM customers, expanding relationships with existing auto OEM customers, and successfully converting awarded programs into serial production are key drivers of our long-term installed base growth.

Our KPIs estimates are based solely on our internal records and other information available to us as of the date of this prospectus. Our actual results and final KPIs may differ materially from these preliminary figures. These KPIs estimates are not a substitute for our full financial statements prepared in accordance with GAAP, nor are they necessarily indicative of future performance. You should not place undue reliance on this information. Please read our KPI information in conjunction with the "Special Note Regarding Forward-Looking Statements". "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the financial statements and related notes included elsewhere in this prospectus.

#### Competition
The Company competes in a market that includes both large, established automotive audio suppliers and a range of smaller, specialized technology providers. Large incumbents such as branded audio and Tier-1 system suppliers offer noise reduction and sound enhancement capabilities as part of broader infotainment, audio, or comfort systems, often relying on hardware-centric architectures or adaptations of consumer audio technologies for automotive use.

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In parallel, the market includes numerous smaller vendors offering point solutions that address specific acoustic use cases. While these solutions may perform well in narrowly defined applications, they are typically limited in scope, lack deep integration with vehicle-level software architectures, or are not designed to scale across multiple vehicle platforms and production programs.

Silentium differentiates itself by delivering a software-native, automotive-grade acoustic platform that combines full ANC, personal sound zones, and adaptive acoustic control, and is designed to integrate directly with Auto OEM and Tier-1 development environments. This system-level approach, together with proven deployment in production vehicle programs, positions the Company differently from both traditional hardware-focused suppliers and point-solution software providers, supporting broader adoption, higher switching costs, and long-term scalability within software-defined vehicle architectures.

#### Competitive Advantage
Silentium's competitive position is based on a combination of demonstrated acoustic performance and deep integration within Auto OEM vehicle development and production environments. The Company's solutions delivers precise, real-time acoustic control that meets stringent automotive performance requirements and have supported adoption by Tier-1 suppliers and Auto OEMs in production vehicle programs. Beyond performance, Silentium's solutions are designed to operate as part of in-vehicle software architectures, integrating with infotainment systems, digital signal processors, and centralized computing platforms used by Auto OEMs and Tier-1 suppliers. This level of integration creates switching costs and supports long-term deployment across vehicle programs.

The Company's software-based approach enables scalability across multiple dimensions. Once deployed within a vehicle platform, Silentium's solutions can be extended across additional vehicle models and production volumes with limited incremental development effort. Multiple acoustic functions can be enabled through software configuration, allowing expansion within existing customer relationships without requiring new hardware integration or changes to vehicle architecture.

In addition, Silentium's solutions are designed for high-volume automotive production, supporting standard validation workflows, end-of-line testing, and over-the-air updates throughout the vehicle lifecycle. These capabilities enable the Company to scale revenue through broader platform adoption and functional expansion, supporting continued growth beyond initial program launches and across successive vehicle generations.

#### Research & Development
The Company's research and development, or R&D, organization is focused on advancing its ANC and broader Active Acoustic Management technologies to support current OEM production programs, while aligning its acoustic software platform with evolving vehicle electrical and software architectures, including software-centric and centralized computing environments.

R&D activities are directed toward maintaining and expanding the Company's core algorithmic capabilities, supporting customer programs through series production, and extending the scalability and applicability of its solutions across a broader range of vehicle platforms.

R&D efforts include ongoing algorithm development, feature enhancement, and the porting of the Company's ANC, Road Noise Control RNC, and EOC technologies across leading automotive DSP and system-on-chip platforms. These activities support both production and pre-start-of-production, or pre-SOP, programs with automotive OEMs and Tier-1 suppliers, as well as collaborations with semiconductor partners to ensure compatibility with current and next-generation chipsets.

A key area of development is the redesign of the Company's system architecture to improve scalability and cost efficiency, particularly for mid-range and cost-sensitive vehicle segments. These efforts include optimization of computational requirements, modularization of software components, and the development

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of automation tools and cloud-enabled remote tuning capabilities intended to reduce engineering effort, shorten integration cycles, and accelerate customer delivery timelines.

The Company's R&D organization also supports commercial and customer engagement activities through the development of demonstration platforms and evaluation systems used by OEMs and Tier-1 suppliers. These activities include proof-of-concept demonstrations, validation programs, and the development of next-generation demo vehicles and test environments. In parallel, the Company is expanding its toolset for remote diagnostics, calibration, and system updates, supporting distributed customer programs and post-deployment optimization.

In addition to its core ANC and RNC offerings, the Company continues to expand its technology toward a more comprehensive Active Acoustic Management stack. Current and planned development initiatives include next-generation QB technologies, PSB capabilities, and related features such as Active Sound Design (ASD), Acoustic Vehicle Alerting Systems (AVAS), and Spatial Voice Management (Spatial-VM<sup>™</sup>).

Certain R&D initiatives have been delayed, scaled back, or deprioritized as a result of resource constraints following a reduction in R&D staffing in 2025. The Company continues to prioritize R&D activities based on customer program requirements, anticipated commercialization timelines, and alignment with long-term platform strategy.

#### Manufacturing
The Company does not operate in-house manufacturing facilities. Hardware required for internal development, testing, and validation is outsourced to third-party suppliers.

If hardware is required for certain applications or adjacent markets, manufacturing would be outsourced to qualified third-party original design manufacturers (ODMs), external partners that build hardware to the Company's specifications. In such cases, the Company would define the system architecture and technical requirements and manage the manufacturing process, while production is performed by the ODM.

The Company does not currently engage qualified ODMs or third parties for the development or manufacture of its core products or proprietary software. Core system design, software and algorithm development, system integration, and productization are performed in-house. From time to time, the Company may utilize third parties for non-core, ancillary services, such as prototype fabrication, bench or build support, laboratory testing, or logistics related to evaluation kits or demonstration units. These services do not involve access to or development of the Company's proprietary algorithms and do not include the outsourced manufacture of finished products for sale.

The Company's solutions are deployed on third-party semiconductor platforms supplied by chip vendors, which results in certain platform dependencies, including development toolchains, firmware environments, and hardware reference architectures. These dependencies do not constitute outsourcing of the Company's core development activities or manufacturing processes.

#### Facilities/Properties
In support of its global workforce and customer-facing activities, the Company maintains a number of operational and technical facilities that provide infrastructure for employee collaboration, development, and customer program execution. The Company's principal headquarters and primary laboratory facilities are located in Israel and serve as the central hub for research and development, product engineering, system calibration and validation, and corporate functions. These facilities support the majority of the Company's technical personnel and core development activities.

In addition, the Company maintains foreign offices and operational sites to support regional employees, application engineering, and commercial activities. In China, the Company operates offices in Suzhou, Shanghai, and Shenzhen, supporting customer projects, engineering collaboration, and on-site system integration with local OEMs and Tier-1 suppliers. In Japan, the Company utilizes a fully serviced shared

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office in Nagoya, primarily supporting customer support and application engineering activities. In Germany, the Company maintains demo-car and working-space infrastructure, including garage facilities, to support vehicle-based testing, demonstrations, and customer validation, with certain operational support provided through a local partner. The Company also maintains home-office based employee and representative presence in the United States, the United Kingdom, and Korea to support local customer engagement, partner coordination, and business development. This geographic structure enables employees to operate in close proximity to customers while maintaining centralized technical leadership and operational oversight in Israel.

#### Recent Developments
We are accelerating our growth trajectory with strategic engagements and technology launches that position us at the forefront of automotive acoustics. The developments listed below are grouped by the phases of the Company's sales process outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Demo / Paid Proof of Concept* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **POC Program in Rail Sector:** We are entering the public transport market with a first-of-its-kind ANC application for a leading global train and tram manufacturer, scheduled to start in the first quarter of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Bid / Request for Quote* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Major RFQs with Global Automotive Leaders:** We are actively participating in large-scale RFQs for integration of our iRNC solutions into next-generation vehicle platforms, with decisions expected in the first half of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Truck Auto OEM Engagement:** We are engaged in an RFQ for a combined software and hardware ANC solution for Truck driver cabins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Sensor and ECU Tier-1 Leader:** We are engaged in providing our RNC/EOC SW solutions in dedicated ECU to provide ANC functionalities and be supplied by a leading Sensor Tier-1 to a European Auto OEM for first mass production starting by the end of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Mass Production Awards* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Tier-1 Licensing Agreement:** Currently under negotiation with a major global Tier-1 supplier for technology licensing, which is expected to be executed in the second quarter of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Advanced Licensing with major Auto OEM:** We are in negotiations to license our iRNC technology to a performance-focused major automaker, with program kickoff anticipated in the second quarter of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Mass Production* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Production Program for Premium BEV SUV:** Our Road Noise Cancellation (RNC) technology will be deployed in a flagship electric SUV from a global Auto OEM leader.

#### Employees
As of the date of this prospectus, the Company employs approximately 36 employees. The workforce comprises a multidisciplinary team with expertise in acoustics, signal processing, software engineering, automotive systems, and customer integration, supporting the Company's technology development and commercialization activities.

The majority of employees are engaged in project management and research and development functions, representing approximately 66% of total headcount. These roles include acoustics and algorithm development, embedded and application software, systems engineering, validation, product management and testing. Commercial activities are supported by a focused sales and business development organization, representing approximately 17% of headcount, supplemented by application and field engineering resources that

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support OEM and Tier-1 customer programs. Corporate, finance, operations, and administrative functions account for the remaining 17% of employees.

The sales organization consists of business development and account management personnel assigned to specific OEMs, Tier-1 suppliers, and semiconductor partners. Each account manager is responsible for technical engagement, commercial structuring, and long-term relationship development within their assigned accounts. In select regions, including Japan, the Company operates through local trading partners compensated on a commission basis.

The Company's employees are primarily located in Israel, which serves as the principal center for research and development and corporate functions. Additional personnel are located in Europe, the United States, and Asia, primarily supporting sales, business development, customer programs, and regional partner engagement. This geographic footprint enables close proximity to global automotive OEMs, Tier-1 suppliers, and semiconductor partners, while maintaining a centralized and cost-efficient technology organization.

The Company expects future headcount growth to be driven primarily by increased customer adoption and expansion of production programs. Planned recruitment is expected to be concentrated principally in research and development and application engineering functions, with a continued focus on Israel as the core innovation hub. Selective additions in Europe, the United States, and Asia may be made to support regional customer programs, partnerships, and commercial expansion. The Company intends to manage headcount growth in a disciplined manner, aligned with revenue growth, operational efficiency, and long-term strategic objectives.

<u>Organizational Chart</u>![[MISSING IMAGE: fc_organizationalchart-4c.jpg]](fc_organizationalchart-4c.jpg)

#### Intellectual Property
We seek patent protection and other effective intellectual property rights for our products and technologies in the United States and internationally. Our policy is to pursue, maintain and defend intellectual property rights developed internally and to protect the technology, inventions and improvements that are commercially important to the development of our business.

Our intellectual property portfolio is organized into four thematic pillars:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.

Adaptive Control and stability — broadband and tonal cancellation, multichannel coordination, and dynamic acoustic profiles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.

Acoustic estimation and modeling — hybrid physical — statistical models, source localization, and sensor fusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.

Zoning and spatial sound shaping — creation and maintenance of personal acoustic zones, leakage mitigation, and zone separation under motion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.

Integration, tooling and validation — efficient calibration, model-in-the-loop and hardware-in-the-loop validation, and deployment on target compute platforms.

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As of the date of this prospectus, our patent portfolio consists of an aggregate of 73 patents and patent applications (the count includes individual national validations of European patents), as detailed in the following table: All of the patents and patent applications in our portfolio are utility patents covering systems, methods, and apparatuses relating to active acoustics, noise control, and sound-field management. One item in the portfolio is a Chinese utility model, which is similarly classified as a form of utility protection under Chinese laws.

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **#**  | **DOCKET <br> NUMBER**  | **COUNTRY**  | **STATUS**  | **FILING <br> DATE**  | **APPLICATION <br> NUMBER**  | **ISSUE <br> DATE**  | **PATENT <br> NUMBER**  | **TITLE**  |
| 1 | SLM-P-00195-US | United States of America | Issued | Nov 30, 2006  | 11606010 | Jan 11, 2011  | 7869607 | QUIET ACTIVE FAN FOR SERVERS CHASSIS |
| 2 | SLM-P-00196-US | United States of America | Issued | Jul 22, 2009  | 12449068 | Oct 7, 2014 | 8855329 | QUIET FAN INCORPORATING ACTIVE NOISE CONTROL (ANC) |
| 3 | SLM-P-00239-CN | China | Issued | May 10, 2012  | 2012800260243 | Oct 12, 2016  | CN103607982A | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 4 | SLM-P-00239-CZ | Czechia | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 5 | SLM-P-00239-DE | Germany | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL |
| 6 | SLM-P-00239-EP | European Patent Office | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 7 | SLM-P-00239-ES | Spain | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 8 | SLM-P-00239-FR | France | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL |
| 9 | SLM-P-00239-GB | United Kingdom | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL |
| 10 | SLM-P-00239-IT | Italy | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 11 | SLM-P-00239-JP | Japan | Issued | May 10, 2012  | 2014509878 | Jul 28, 2017  | 6182524 | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 12 | SLM-P-00239-KR | Republic of Korea | Issued | Nov 26, 2013  | 1020137031401 | Nov 7, 2017  | 10-1797268 | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL |
| 13 | SLM-P-00239-NL | Netherlands | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 14 | SLM-P-00239-SE | Sweden | Issued | May 10, 2012  | 127827541 | Sep 9, 2020 | EP 2 707 871 B1  | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL  |
| 15 | SLM-P-00239-US | United States of America | Issued | May 10, 2012  | 13468170 | Aug 30, 2016  | 9431001 | DEVICE, SYSTEM AND METHOD OF NOISE CONTROL |
| 16 | SLM-P-00908-CN | China | Issued | Dec 27, 2015  | 2015800767641 | Dec 3, 2021 | CN 107251134 B  | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **#**  | **DOCKET <br> NUMBER**  | **COUNTRY**  | **STATUS**  | **FILING <br> DATE**  | **APPLICATION <br> NUMBER**  | **ISSUE <br> DATE**  | **PATENT <br> NUMBER**  | **TITLE**  |
| 17  | SLM-P-00908-DE | Germany | Issued | Dec 27, 2015  | 158753434 | Jul 5, 2023 | 3238209 | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 18  | SLM-P-00908-EP | European Patent Office  | Issued | Dec 27, 2015  | 158753434 | Jul 5, 2023 | 3238209 | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 19  | SLM-P-00908-EP1D | European Patent Office | Pending | Dec 27, 2015  | 231759374 |  |  | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 20  | SLM-P-00908-FR | France | Issued | Dec 27, 2015  | 158753434 | Jul 5, 2023 | 3238209 | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 21  | SLM-P-00908-GB | United Kingdom | Issued | Dec 27, 2015  | 158753434 | Jul 5, 2023 | 3238209 | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 22  | SLM-P-00908-US | United States of America  | Issued | Dec 28, 2015  | 14980175 | Mar 27, 2018  | 9928824 | APPARATUS, SYSTEM AND METHOD OF CONTROLLING NOISE WITHIN A NOISE-CONTROLLED VOLUME  |
| 23  | SLM-P-01801-CN | China | Issued | Jan 5, 2020 | 2020800079549 | Jun 14, 2024  | CN113261310B | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 24  | SLM-P-01801-CN1D  | China | Pending | Jan 5, 2020 | 2024106518959 |  |  | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL  |
| 25  | SLM-P-01801-EP | European Patent Office | Pending | Jan 5, 2020 | 207360017 |  |  | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 26  | SLM-P-01801-IN | India | Issued | Jan 5, 2020 | 202127030766 | Mar 11, 2024  | 523155 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 27  | SLM-P-01801-JP | Japan | Issued | Jan 5, 2020 | 2021539094 | Dec 5, 2024 | 7599424 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL  |
| 28  | SLM-P-01801-JP1D | Japan | Issued | Jan 9, 2024 | 2024001040 | Feb 09, 2026  | 7817293 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL  |
| 29  | SLM-P-01801-KR | Republic of Korea | Issued | Jan 5, 2020 | 1020217023593 | Aug 25, 2023  | 10-2572474 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 30  | SLM-P-01801-US | United States of America | Issued | Jan 5, 2020 | 16734338 | Jul 12, 2022  | 11385859 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 31  | SLM-P-01801-US1C | United States of America  | Issued | May 1, 2022  | 17734092 | Dec 12, 2023  | 11842121 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL  |
| 32  | SLM-P-01801-US2C | United States of America | Issued | Nov 2, 2023  | 18500750 | Apr 8, 2025 | 12271657 | APPARATUS, SYSTEM AND METHOD OF SOUND CONTROL |
| 33  | SLM-P-01850-CN | China | Pending | Jun 28, 2023  | 2023800611642 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **#**  | **DOCKET <br> NUMBER**  | **COUNTRY**  | **STATUS**  | **FILING <br> DATE**  | **APPLICATION <br> NUMBER**  | **ISSUE <br> DATE**  | **PATENT <br> NUMBER**  | **TITLE**  |
| 34  | SLM-P-01850-EP | European Patent Office | Pending | Jun 28, 2023  | 238306062 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 35  | SLM-P-01850-IN | India | Pending | Jun 28, 2023  | 202517006123 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 36  | SLM-P-01850-JP | Japan | Pending | Jun 28, 2023  | 2024576474 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 37  | SLM-P-01850-KR | Republic of Korea | Pending | Jun 28, 2023  | 10-2025-7002121 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 38  | SLM-P-01850-US | United States of America | Issued | Jun 27, 2023  | 18215055 | Oct 8, 2024 | 12112736 | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 39  | SLM-P-01850-US1C | United States of America | Pending | Sep 5, 2024 | 18825991 |  |  | APPARATUS, SYSTEM, AND METHOD OF NEURAL-NETWORK (NN) BASED ACTIVE ACOUSTIC CONTROL (AAC)  |
| 40  | SLM-P-01919-EP | European Patent Office  | Pending | Oct 26, 2020  | 208811455 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE NOISE CONTROL (ANC) BASED ON HEATING, VENTILATION AND AIR CONDITIONING (HVAC) CONFIGURATION  |
| 41  | SLM-P-01919-JP | Japan | Pending | Oct 26, 2020  | 2022524025 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE NOISE CONTROL (ANC) BASED ON HEATING, VENTILATION AND AIR CONDITIONING (HVAC) CONFIGURATION  |
| 42  | SLM-P-01919-US | United States of America  | Issued | Oct 26, 2020  | 17080047 | Jun 15, 2021  | 11034211 | APPARATUS, SYSTEM AND METHOD OF ACTIVE NOISE CONTROL (ANC) BASED ON HEATING, VENTILATION AND AIR CONDITIONING (HVAC) CONFIGURATION  |
| 43  | SLM-P-01919-US1C | United States of America  | Issued | Apr 8, 2021 | 17225891 | Aug 27, 2024  | 12070986 | APPARATUS, SYSTEM AND METHOD OF ACTIVE NOISE CONTROL (ANC) IN A VEHICLE  |
| 44  | SLM-P-01919-US2C | United States of America | Pending | Jul 11, 2024  | 18770521 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE NOISE CONTROL (ANC) BASED ON HEATING, VENTILATION AND AIR CONDITIONING (HVAC) CONFIGURATION  |
| 45  | SLM-P-02071-CN | China | Pending | Dec 29, 2021  | 2021800876875 |  |  | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **#**  | **DOCKET <br> NUMBER**  | **COUNTRY**  | **STATUS**  | **FILING <br> DATE**  | **APPLICATION <br> NUMBER**  | **ISSUE <br> DATE**  | **PATENT <br> NUMBER**  | **TITLE**  |
| 46  | SLM-P-02071-EP | European Patent Office | Pending | Dec 29, 2021  | 219148459 |  |  | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE |
| 47  | SLM-P-02071-IN | India | Pending | Dec 29, 2021  | 202317042460 |  |  | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE  |
| 48  | SLM-P-02071-JP | Japan | Pending | Dec 29, 2021  | 2023540635 |  |  | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE  |
| 49  | SLM-P-02071-KR | Republic of Korea | Pending | Dec 29, 2021  | 1020237021662 |  |  | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE |
| 50  | SLM-P-02071-US | United States of America | Issued | Nov 4, 2021  | 17519367 | Sep 20, 2022  | 11451915 | APPARATUS, SYSTEM, AND METHOD OF TESTING AN ACOUSTIC DEVICE |
| 51  | SLM-P-02101-CN | China | Pending | Feb 13, 2022  | 2022800264996 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) AT AN OPEN ACOUSTIC HEADPHONE  |
| 52  | SLM-P-02101-EP | European Patent Office | Pending | Feb 13, 2022  | 227524428 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) AT AN OPEN ACOUSTIC HEADPHONE  |
| 53  | SLM-P-02101-IN | India | Pending | Feb 13, 2022  | 202317061656 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) AT AN OPEN ACOUSTIC HEADPHONE  |
| 54  | SLM-P-02101-KR | Republic of Korea | Pending | Feb 13, 2022  | 1020237031139 |  |  | APPARATUS, SYSTEM AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) AT AN OPEN ACOUSTIC HEADPHONE  |
| 55  | SLM-P-02101-US | United States of America  | Issued | Feb 14, 2022  | 17670547 | Oct 25, 2022  | 11482205 | APPARATUS, SYSTEM AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) AT AN OPEN ACOUSTIC HEADPHONE  |
| 56  | SLM-P-02211-CN | China | Pending | Jun 28, 2022  | 2022800563822 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC)  |
| 57  | SLM-P-02211-EP | European Patent Office  | Pending | Jun 28, 2022  | 228323077 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC)  |
| 58  | SLM-P-02211-IN | India | Pending | Jun 28, 2022  | 202417005525 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) |
| 59  | SLM-P-02211-JP | Japan | Pending | Jun 28, 2022  | 2023579591 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) |
| 60  | SLM-P-02211-KR | Republic of Korea | Pending | Jun 28, 2022  | 1020247002981 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC)  |
| 61  | SLM-P-02211-US | United States of America | Issued | Jun 28, 2022  | 17852104 | Mar 19, 2024  | 11935513 | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) |

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **#**  | **DOCKET <br> NUMBER**  | **COUNTRY**  | **STATUS**  | **FILING <br> DATE**  | **APPLICATION <br> NUMBER**  | **ISSUE <br> DATE**  | **PATENT <br> NUMBER**  | **TITLE**  |
| 62  | SLM-P-02211-US1C | United States of America | Pending | Dec 4, 2023 | 18527935 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACTIVE ACOUSTIC CONTROL (AAC) |
| 63  | SLM-P-02372-CNU | China | Issued | Oct 13, 2021  | 2021224629241 | Aug 9, 2022  | CN 217157705 U  | ACOUSTIC CONTROL SYSTEM FOR CONTROLLING AN ACOUSTIC ENVIRONMENT FOR A USER OF A SEAT — utility model  |
| 64  | SLM-P-02468-CN | China | Pending | Feb 9, 2023 | 2023800244817 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 65  | SLM-P-02468-EP | European Patent Office  | Pending | Feb 9, 2023 | 237525373 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 66  | SLM-P-02468-IN | India | Pending | Feb 9, 2023 | 202417064364 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 67  | SLM-P-02468-JP | Japan | Pending | Feb 9, 2023 | 2024547259 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 68  | SLM-P-02468-KR | Republic of Korea | Pending | Feb 9, 2023 | 1020247028972 |  |  | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 69  | SLM-P-02468-US | United States of America | Issued | Feb 9, 2023 | 18166622 | Jan 2, 2024 | 11863930 | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION |
| 70  | SLM-P-02468-US1C | United States of America | Issued | Nov 21, 2023  | 18516475 | May 19, 2026  | 12634619 | APPARATUS, SYSTEM, AND METHOD OF ACOUSTIC FEEDBACK (AFB) MITIGATION  |
| 71  | SLM-P-03332-CN | China | Pending | Jan 9, 2025 | 2025100368312 |  |  | APPARATUS, SYSTEM, AND METHOD OF CONTROLLING A USER INTERFACE (UI) OF ACTIVE ACOUSTIC CONTROL (AAC) IN A VEHICLE  |
| 72  | SLM-P-03332-PCT | PCT/International  | Pending. | Nov 6, 2025  | PCT/IB2025/061343  |  |  | APPARATUS, SYSTEM, AND METHOD OF CONTROLLING A USER INTERFACE (UI) OF ACTIVE ACOUSTIC CONTROL (AAC) IN A VEHICLE  |
| 73  | SLM-P-03332-US | United States of America | Pending | Nov 8, 2024  | 18940881 |  |  | APPARATUS, SYSTEM, AND METHOD OF CONTROLLING A USER INTERFACE (UI) OF ACTIVE ACOUSTIC CONTROL (AAC) IN A VEHICLE  |

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We have registered trademarks, trade names and service marks, including "Silentium", "Quiet Bubble", "Personal Sound Bubble", "Acustifusion", and associated logos. The trademarks are registered in the United States, EU, United Kingdom, Russia, China, Japan, South Korea, Vietnam and Israel.

We also rely on trade secrets, know-how, and continuous innovation to develop and maintain our competitive position. We cannot be certain that patents will be granted with respect to any of our pending patent

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applications or with respect to any patent applications filed by us in the future, nor can we be sure that any of our existing patents or any patents granted to us in the future will be commercially useful in protecting our technology.

Our success depends, in part, on an intellectual property portfolio that supports future revenue streams and erects barriers to our competitors. We are maintaining and building our patent portfolio, and we pursue this strategy through, filing new patent applications, prosecuting existing applications.

Despite these measures, any of our intellectual property and proprietary rights could be challenged, invalidated, circumvented, infringed or misappropriated. Intellectual property and proprietary rights may not be sufficient to permit us to take advantage of current market trends or otherwise to provide competitive one. For more information, see "Risk Factors — Risks Related to our Intellectual Property."

#### Organizational Structure
We currently have three wholly-owned subsidiaries: Silentium (Asia) Limited., a company incorporated in Hong Kong; Silentium Acoustic Technology (Shanghai) Co., Ltd., a company incorporated in the Peoples Republic of China (including its branch in Suzhou); and Silentium USA Inc., a corporation incorporated in the State of Delaware.

The following diagram depicts our corporate structure, including ownership and voting control of each entity, on a post-offering basis:

![[MISSING IMAGE: fc_structure-4clr.jpg]](fc_structure-4clr.jpg)

#### Legal Proceedings
In 2011, we began using our QUIET BUBBLE<sup>®</sup> trademark in connection with our proprietary system and method of active acoustic control. In 2022, we registered the QUIET BUBBLE<sup>®</sup> trademark in the EU via an International Registration under the Madrid Protocol. In 2023, Technofirst filed an opposition with the EUIPO against our EU trademark registration. Following the filing of the opposition, we and Technofirst

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agreed to a cooling-off period during which we discussed possible resolutions, but no agreement was reached. In July 2025, after the extended cooling-off period ended, we filed a request with the EUIPO for Technofirst to provide proof of use. On October 27, 2025, the EUIPO issued a decision dismissing the opposition in its entirety as Technofirst failed to provide the required proof of use. The decision provided a two-month appeal period, ending on December 27, 2025, during which Technofirst could have appealed. However, no appeal was filed by the deadline, and the opposition was therefore dismissed, and protection has been granted to the International Registration as a Trademark Registration in the EU.

Except as disclosed above, we have not been, and are not currently, a party to any material or pending litigation or regulatory proceedings that could have a material adverse effect on our business, operating results, financial condition or cash flows. From time to time, we may be involved in legal or regulatory proceedings arising in the ordinary course of our business.

#### Innovation Authority
We have received royalty-bearing grants and non-royalty bearing grants from the IIA, for the financing of a portion of our research and development expenditures in Israel. Under the Innovation Law and the IIA's rules and guidelines, recipients of grants, are subject to certain obligations and restrictions with respect to the use of their IIA Funded Know-How, including, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Royalty Payment Obligation**. In general, a grant recipient may be obligated to pay the IIA royalties from any income deriving from the products (and related know-how and services), whether received by the grant recipient or any affiliated entity, developed (in all or in part), directly or indirectly, as a result of, an Approved Program, or deriving therefrom, at rates which are determined under the IIA's rules and guidelines (currently a yearly rate of between 3% to 5% on sales of products or services developed under the Approved Programs, depending on the type of the company — i.e., whether it is a "Small Company," or a "Large Company" as such terms are defined in the IIA's rules and guidelines), up to the aggregate amount of the total grants received by the IIA, plus annual interest for a File (as such term is defined in the IIA's rules and guidelines). As of December 31, 2025, we paid royalties to the IIA in the total amount of $608,330.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Reporting Obligations**. A grant recipient is subject to certain reporting obligations (such as, periodic reports regarding the progress of the research and development activities under the Approved Program and the related research expenses, and regarding the scope of sales of the company's products). In addition, any direct change in control of a grant recipient must be reported to the IIA. In the event that a non-Israeli entity or a non-Israeli citizen or resident person becomes an "Interested Party" (as such term is defined in the Israeli Securities Law, 5728-1968) in the grant recipient, notification to the IIA is required, accompanied by a written undertaking (in the form available on the IIA's website) by such party to be bound by the Innovation Law and by the terms of the Approved Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Local Manufacturing Obligation**. Products developed using the IIA grants must, as a general matter, must be manufactured in Israel. The transfer of manufacturing capacity outside of Israel in a manner that exceeds the manufacturing capacity that was declared in the grant recipient's original IIA grant application is subject to prior written approval from the IIA (except for the transfer of less than 10% of the manufacturing capacity in the aggregate, which event requires only a notice to the IIA, which shall be provided in writing prior to the transfer of such manufacturing rights abroad, while the IIA has a right to deny such transfer within 30 days following the receipt of such notice). In general, the transfer of manufacturing capacity outside of Israel may be subject an increase in the royalties' cap (which may depend on the manufacturing volume that is performed outside of Israel) and such transfer will be subject to payment of royalties at an accelerated rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **IIA Funded Know-How Transfer Limitation**. Under the IIA's rules and guidelines, a grant recipient is prohibited from transferring the IIA Funded Know-How outside of Israel except with the approval of the IIA's research committee and in certain circumstances, subject to certain payments to the IIA calculated according to formulas provided under the IIA's rules and guidelines (which are capped to amounts specified under such rules and guidelines, generally up to 6 time

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the grants received plus annual interest as such term is defined under the rules, or A Redemption Fee). For calculating the Redemption Fee which should be paid to the IIA in the event of a transfer of IIA Funded Know-How outside of Israel, among other things, the following factors will be taken into account: the scope of the IIA support received, the royalties that have already paid to the IIA, the amount of time that has lapsed since the grant recipient has finalized the IIA Approved Program, the sale price and the form of transaction. A transfer for the purpose of the Innovation Law and the IIA's rules means an actual sale of the IIA-Funded Know-How, or any other transaction which in essence constitutes a transfer of such know-how (such as, providing an exclusive license to a foreign entity for R&D purposes, which precludes the grant recipient from further using such IIA Funded Know-How). A mere license solely to market products resulting from the IIA Funded Know-How would not be deemed a transfer for the purpose of the Innovation Law and the IIA's rules. Upon payment of the Redemption Fee, the IIA Funded Know-How and the manufacturing rights of the products developed using such IIA funding cease to be subject to the Innovation Law and the IIA's rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Subject to the IIA's prior approval, a grant recipient may transfer IIA Funded Know-How to another Israeli company, provided that the acquiring company assumes all of the grant recipient's responsibilities towards the IIA. Such transfer will not be subject to the payment of the Redemption Fee; however, the income from such transaction will generally be subject to the obligation to pay royalties to the IIA (other than in specific circumstances that will be examined by the IIA, mainly when the transfer is between related entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **IIA Funded Know-How License Limitation**. The grant to a foreign entity of a right to use the IIA Funded Know-How for R&D purposes (which does not entirely prevent the grant recipient from using the Funded Know-How) is subject to receipt of the IIA's prior approval. This approval is subject to payment to the IIA in accordance with the formulas stipulated in the IIA's rules (which distinguish between the manner of the payment for such license grant, i.e., one-time payment or payment in installments) and such payment shall be no less than the amount of the IIA grants received (plus annual interest), and no more than the cap stated in the IIA's rules and will generally be due only upon the receipt of the license fee from the licensee.

The IIA's rules also include a mechanism with respect to the grant of a license by a grant recipient (which is part of a multinational corporation) to its group entities to use its IIA Funded Know-How. Such license is subject to the IIA's prior approval and to the payment of 5% royalties from the income deriving from such license, with the cap of the royalties increasing to 150% of the grant amount. Such mechanism includes certain requirements which must be met in order to be able to enjoy such lower royalty payment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ **Imposition of Liens over IIA Funded Know-How**. The grant recipient is required to receive an IIA approval for every transaction involving the grant of liens over IIA Funded Know-How (i.e., for both the imposing and the realization of the liens). This obligation refers to fixed charges as well as to floating charges. In addition, to the extent that the transaction involves a foreign pledgee, the pledgee must execute an undertaking (in the form available on the IIA's website) to comply with the Innovation Law in the event of realization of the lien.

The obligation to comply with the Innovation Law and the IIA's rules (including with respect to the restriction of the transfer of IIA Funded Know-How and manufacturing rights outside of Israel) remains in effect even after full repayment of all amounts payable to the IIA. Once a Redemption Fee is paid on a transfer of IIA Funded Know-How outside Israel, all obligations towards the IIA (including the royalty obligation) cease.

The government of Israel does not own intellectual property rights in technology developed with IIA funding and the IIA's approval is not required for the export of any products resulting from the IIA research.

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### M ANAGEMENT

#### Executive Officers and Directors
The following table sets forth information regarding our executive officers and directors, including their ages as of the date of this prospectus:

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| | | |
|:---|:---|:---|
| **Name**  | **Age**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Position**  |
| Yoel Naor  | 54  | Chief Executive Officer and Director |
| Evan Fishman  | 63  | Chief Financial Officer |
| Tzvika Fridman  | 49  | Chief Technology Officer |
| Amir Slapak  | 56  | Chief Operating Officer |
| Ziv Hermon  | 65  | Chief Business Officer |
| Dr. Harold Wiener  | 67  | Director |
| Yue Lei Shen  | 34  | Director |
| Larry Krauss  | 72  | Director |
| Dr. Sigang Qin  | 50  | Director |
| Benjamin Eli Weiss  | 46  | Director |

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#### Yoel Naor, Chief Executive Officer and Director
Mr. Naor has served as our Chief Executive Officer and as a Director since September 2017. He has over 20 years of experience in executive management, including strategic R&D development, marketing, international operations, multi-channel products distribution, and product development. Prior to his appointment as CEO, Mr. Naor served as Director of Products at Silentium since 2009. Mr. Naor has a Bachelor of Technology, Electrical Engineering degree, from the Tel-Aviv Engineering Academic College (Afeka College of Engineering).

#### Evan Fishman, Chief Financial Officer
Mr. Fishman was appointed as our Chief Financial Officer in September 2025. Prior to his appointment, Mr. Fishman worked for Orgenesis Inc. from April 2017 to August 2025, including as Chief Financial Officer. of Orgenesis Ltd. Mr. Fishman is a member of the Israeli Institute of Certified Public Accountants and is also a South African qualified Chartered Accountant. He holds a Master of International Business Administration degree from the University of London, as well as a Bachelor of Commerce and Bachelor of Accountancy degree from the University of the Witwatersrand, Johannesburg.

#### Tzvika Fridman, Chief Technology Officer
Mr. Tzvika Fridman has served as our Chief Technology Officer (CTO) since 2018. Prior to his appointment as a CTO, Mr. Fridman served as our R&D Group Manager from 2013 to 2018. Mr. Fridman, who has over 20 years of experience, has held several senior managerial positions related to research and development. Mr. Fridman holds an Electrical Engineering degree from Afeka College of Engineering and a Master of Business Administration (MBA) from Bar-Ilan University.

#### Amir Slapak, Chief Operating Officer
Mr. Amir Slapak has served as our Chief Operating Officer (COO) since 2007. Prior to his appointment as a COO, Mr. Slapak held several senior managerial positions in our company. Prior to joining our company, between 2001 and 2007, Mr. Slapak worked at the Local Government Economic Services Company of the Local Authority Ltd, where he served as the manager of new public construction, in the Southern Region of

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Israel. Between 1999 and 2001, Mr. Slapak worked as a producer at Kadomn Breen Exhibitions Ltd. Mr. Slapak holds a Master of Business Administration (MBA) degree, with specialization in Finance from The College of Management Academic Studies, Israel, and is certified to assess automotive software development processes under the Automotive Software Process Improvement and Capability Determination standard (ASPICE) by the German Association of the Automotive Industry (VDA QMC).

#### Dr. Ziv Hermon, Chief Business Officer
Dr. Ziv Hermon joined Silentium in September 2019 as Head of Innovation, and has served as our Chief Business Officer (CBO) since October 2019. Prior his joining Silentium, Dr. Herman served as CEO of Nano Air from 2015 to 2017, and from 2009 to 2015 at the General Motors Advanced Technical Center, Israel, as Science Office and Innovation Manager. Dr. Hermon has a Ph.D. degree in Physics from Tel-Aviv University.

#### Harold Wiener, Director
Dr. Harold Wiener was appointed as a director of the Company in October 2025. He is the founder and General Partner of Terra Venture Partners and Terralab Ventures, leading early-stage VC funds in Israel, and has served as a director since 2007. With over 30 years of experience in biotech, chemistry, and Cleantech, Mr. Wiener previously led product and business development at Aromor Flavor and Fragrances and AlgaTechnologies. He is also a director at Phoebus Energy, Solaround, 3dbattery, Makalu Optics, Onvego, Daikawood, RipeGuard, Viewnetic, Infiniplex,Baccine, and Solbuz. He holds a Ph.D. degree in Applied Chemistry from the Hebrew University of Jerusalem.

#### Yue Lei Shen, Director
Ms. Shen has served as a director since October 2024. She is currently Executive Director of True North Computation Canada, overseeing ASIC computational hardware data centers across multiple Canadian provinces and U.S. states, a position that she has held since April 2021 until present. Before that, from 2019 to March 2021 she worked as vice principle and head of Tech Sector Investment in asset management at Petrus Capital. In addition, Ms. Shen also holds directorships at Juice Tech Limited, a U.S. subsidiary of TNC Group Canada, and Apex Cyber Capital Limited in Singapore. She holds a Bachelor of Science degree in Economics from the London School of Economics.

#### Larry Krauss, Director
Mr. Krauss has served as a director since August 2009. Mr. Krauss, through Terracap Ventures, is also a strategic investment partner in over 45 technology companies internationally, and serves on the board of directors of several entities, including Zoom And Go Ltd., and Second Life Books Ltd. Mr. Krauss graduated from the University of Toronto with a Bachelor of Science degree and has obtained a Doctor of Jurisprudence degree and a Master of Law degree from Osgoode Hall Law School, in Toronto, Ontario, Canada. Mr. Krauss was awarded an Honorary Fellowship of Humane Letters from the Jerusalem College of Technology.

#### Dr. Sigang Qin, Director
Dr. Sigang Qin has served as a director since April 2024. Dr. Quin is currently General Manager, Honrock Railway Transportation Equipment Co., Ltd, a position she has held since January 2011. Prior to that, she was Senior Finance Manager, Henkel AG (Germany) and Deputy General Manager of Samson Controls China. Dr. Qin holds a Bachelor of Arts degree from Beijing Foreign Studies University, a Master of Business Administration degree from University of Mainz, Germany, and a Ph.D. in Accounting from the University of Münster, Germany.

#### Benjamin Eli Weiss, Director
Mr. Weiss has served as a director since March 2024. Mr. Weiss has been a Partner at Alicorn Venture Partners since 2020 and a Partner at CE Ventures since 2015. He has a Bachelor of Commerce (Finance)

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and Bachelor of Laws from the University of New South Wales and a Graduate Diploma of Legal Practice from the Sydney College of Law. Mr. Weiss is also a Chartered Financial Analyst (CFA).

#### Family Relationships
There are no family relationships between any members of our executive management and our directors.

#### Arrangements for Election of Directors and Members of Management
There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any of our executive management or our directors were selected. See "Related Party Transactions" for additional information.

#### Compensation
The following table presents in the aggregate all compensation we paid to all of our directors and senior management as a group for the year ended December 31, 2025. The table does not include any amounts we paid to reimburse any of such persons for costs incurred in providing us with services during this period.

All amounts reported in the table below reflect our cost, in thousands of U.S. dollars. Amounts paid in NIS are translated into U.S. dollars at the rate of NIS 3.10 = U.S. $1.00, based on the average representative rate of exchange between the NIS and the U.S. dollar as reported by the Bank of Israel during such period of time.

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| | | | |
|:---|:---|:---|:---|
| | **Salary, <br> bonuses and <br> Related <br> Benefits**  | **Pension, <br> Retirement <br> and Other <br> Similar <br> Benefits**  | **Share <br> Based <br> Compensation**  |
|  All directors and senior management as a group, consisting of <br> 10 persons as of December 31, 2025.  | $721817 | $185834 | $118698 |

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As approved by our board of directors, subject to the completion of this offering, we will distribute bonus payments to certain employees and consultants, up to a total amount of $143,000, to be allocated among such employees and consultants as our board of directors may instruct following completion of this offering. The grant of such bonus to certain of our employees and consultants following completion of this offering may be subject to further corporate approvals and our compensation policy. For further information regarding our compensation policy, see "Management — Board Practices — Compensation Committee."

For so long as we qualify as a foreign private issuer, we will not be required to comply with the proxy rules applicable to U.S. domestic companies regarding disclosure of the compensation of certain executive officers on an individual basis. Pursuant to the Companies Law, we will be required, after we become a public company, to disclose the annual compensation of our five most highly compensated officers on an individual basis. This disclosure will not be as extensive as that required of a U.S. domestic issuer. We intend to commence providing such disclosure, at the latest, in the annual proxy statement for our first annual meeting of shareholders following the closing of this offering, which will be filed under cover of a report on Form 6-K.

#### Employment Agreements with Executive Officers
We have entered into written employment agreements with each of our executive officers. All of these agreements contain customary provisions regarding noncompetition, confidentiality of information and assignment of inventions. However, the enforceability of the noncompetition provisions may be limited under applicable law. In addition, we intend to enter into indemnification agreements, subject to the listing of our securities on the NYSE American, with each executive officer and director pursuant to which we will

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indemnify each of them up to a certain amount and to the extent that these liabilities are not covered by directors and officers' insurance.

For a description of the terms of our options and option plans, see "Management — 2013 Employee Share Option Plan" below.

#### Directors' Service Contracts
Other than with respect to our directors that are also executive officers, we do not have written agreements with any director providing for benefits upon the termination of his employment with our company.

#### Corporate Governance Practices
As an Israeli company, we are subject to various corporate governance requirements under the Companies Law. However, pursuant to regulations promulgated under the Companies Law, companies with shares traded on certain U.S. stock exchanges, including the NYSE American, may, subject to certain conditions, "opt out" from the Companies Law requirements to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee of the board of directors (other than the gender diversification rule under the Companies Law, which requires the appointment of a director from the other gender if at the time a director is appointed all members of the board of directors are of the same gender). In accordance with these regulations, we intend to "opt out" from such requirements of the Companies Law. Under these regulations, the exemptions from such Companies Law requirements will continue to be available to us so long as: (i) we do not have a "controlling shareholder" (as such term is defined under the Companies Law), (ii) our shares are traded on certain U.S. stock exchanges, including the NYSE American, and (iii) we comply with the director independence requirements and the audit committee and compensation committee composition requirements under U.S. laws (including applicable rules of the NYSE American) applicable to U.S. domestic issuers.

The Sarbanes-Oxley Act, as well as related rules subsequently implemented by the SEC, require foreign private issuers, such as us, to comply with various corporate governance practices. In addition, following the listing of the Ordinary Shares on the NYSE American, we will be required to comply with the NYSE American Company Guide. Under those rules, we may elect to follow certain corporate governance practices permitted under the Companies Law in lieu of compliance with corresponding corporate governance requirements otherwise imposed by the NYSE American Company Guide for U.S. domestic issuers.

In accordance with Israeli law and practice and subject to the exemption set forth in Section 110 of the NYSE American Company Guide, we have elected to follow the provisions of the Companies Law, rather than the NYSE American Company Guide, with respect to the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Nomination of Directors.* As permitted under Israeli law and pursuant to Israeli practice, the nominations for members of the Board will be generally made by the Board or a duly authorized committee thereof and not by a nominating committee of the Board consisting solely of independent directors or a majority of the independent directors in a vote in which only independent directors participate, as required under the NYSE American Company Guide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Quorum.* While Section 123 of the NYSE American Company Guide requires that the quorum for purposes of any meeting of the holders of a listed company's ordinary voting stock, as specified in the company's bylaws, be no less than 33<sup>1</sup>∕3% of the company's outstanding ordinary voting stock, under Israeli law, a company is entitled to determine in its articles of association the number of shareholders and percentage of holdings required for a quorum at a shareholders meeting. Our amended and restated articles of association provide that a quorum of two or more shareholders holding at least 25% of the voting rights in person or by proxy is required for commencement of business at a general meeting. However, the quorum set forth in our amended and restated articles of association with respect to an adjourned meeting consists of at least one shareholders present in person or by proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Compensation of officers.* Israeli law and our amended and restated articles of association do not require that the independent members of our board of directors (or a compensation committee

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composed solely of independent members of our board of directors) determine an executive officer's compensation, as is generally required under the NYSE American Company Guide with respect to the chief executive officer and all other executive officers. Instead, compensation of executive officers is determined and approved by our compensation committee and our board of directors, and in certain circumstances by our shareholders, either in consistency with our office holder compensation policy or, in special circumstances in deviation therefrom, taking into account certain considerations stated in the Companies Law. See "Management — Board Practices — Approval of Related Party Transactions under Israeli Law" for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Shareholder approval.* We intend to seek shareholder approval for all corporate actions requiring such approval under the requirements of the Companies Law, rather than seeking approval for corporation actions in accordance with the NYSE American Company Guide. In particular, under Part 7 of the NYSE American Company Guide, shareholder approval is generally required for: (i) an acquisition of shares/assets of another company that involves the issuance of 20% or more of the acquirer's shares or voting rights or if a director, officer or 5% shareholder has greater than a 5% interest in the target company or the consideration to be received; (ii) the issuance of shares leading to a change of control; (iii) adoption/amendment of equity compensation arrangements (although under the provisions of the Companies Law there is no requirement for shareholder approval for the adoption/amendment of the equity compensation plan); and (iv) issuances of 20% or more of the shares or voting rights (including securities convertible into, or exercisable for, equity) of a listed company via a private placement (and/or via sales by directors/officers/5% shareholders) if such equity is issued (or sold) at below the greater of the book or market value of shares. By contrast, under the Companies Law, shareholder approval is required for, among other things: (i) transactions with directors concerning the terms of their service or indemnification, exemption and insurance for their service (or for any other position that they may hold at a company), for which approvals of the compensation committee, board of directors and shareholders are all required, (ii) extraordinary transactions with controlling shareholders of publicly held companies, which require the special approval of shareholders, and (iii) terms of employment or other engagement of the controlling shareholder of us or such controlling shareholder's relative, which require special approval. In addition, under the Companies Law, a merger requires approval of the shareholders of each of the merging companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Approval of Related Party Transactions*. All related party transactions are approved in accordance with the requirements and procedures for approval of interested party acts and transaction as set forth in the Companies Law, which requires the approval of the audit committee, or the compensation committee, as the case may be, the board of directors and shareholders, as may be applicable, for specified transactions, rather than approval by the audit committee or other independent body of our board of directors as required under the NYSE American Company Guide. See "Management —Board Practices — Approval of Related Party Transactions under Israeli Law" for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Annual Shareholders Meeting.* As opposed to Section 704 of the NYSE American Company Guide, which mandates that a listed company hold its annual shareholders meeting within one year of the company's fiscal year-end, we are required, under the Companies Law, to hold an annual shareholders meeting each calendar year and within 15 months of the last annual shareholders meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ *Distribution of periodic reports to shareholders; proxy solicitation.* As opposed to Section 610 of the NYSE American Company Guide, which requires listed issuers to make such reports available to shareholders in one of a number of specific manners, Israeli law does not require us to distribute periodic reports directly to shareholders, and the generally accepted business practice in Israel is not to distribute such reports to shareholders but to make such reports available through a public website. In addition to making such reports available on a public website, we currently make our audited consolidated financial statements available to our shareholders at our offices and will only mail such reports to shareholders upon request. As a foreign private issuer, we are generally exempt from the SEC's proxy solicitation rules.

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#### Board Practices

#### Introduction
Upon the consummation of this offering, our board of directors will consist of six members. We believe that Dr. Harold Wiener, Yue Lei Shen, Larry Krauss, Dr. Sigang Qin and Benjamin Eli Weiss are "independent" for purposes of the NYSE American rules. Our amended and restated articles of association provide that the number of board of directors' members shall be set by the general meeting of the shareholders provided that it will consist of not less than four and not more than nine, divided into three classes with staggered three-year terms. Each class of directors consists, as nearly as possible, of one-third of the total number of directors constituting the entire board of directors (other than external directors, if any). At each annual general meeting, shareholders elect or re-elect the directors of the class whose terms are then expiring. The directors so elected serve until the third annual general meeting following that election, so that the board is staggered and only one class stands for election each year. Our directors are divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the Class I directors are Yue Lei Shen and Benjamin Eli Weiss, and their term expires at our annual general meeting of shareholders to be held in 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the Class II directors are Dr. Harold Wiener and Dr. Sigang Qin, and their term expires at our annual general meeting of shareholders to be held in 2028; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the Class III directors are Yoel Naor and Larry Krauss, and their term expires at our annual general meeting of shareholders to be held in 2029.

Pursuant to the Companies Law, the management of our business is vested in our board of directors. Our board of directors may exercise all powers and may take all actions that are not specifically granted to our shareholders or to management. Our executive officers are responsible for our day-to-day management and have individual responsibilities established by our board of directors. Our Chief Executive Officer is appointed by, and serves at the discretion of, our board of directors, subject to the employment agreement that we have entered into with him. All other executive officers are appointed by our Chief Executive Officer. Their terms of employment are subject to the approval of the board of directors' compensation committee and of the board of directors and are subject to the terms of any applicable employment agreements that we may enter into with them.

Each director, except external directors that may be required to be appointed under the Companies Law under certain circumstances, will hold office until the next annual general meeting of our shareholders following his or her appointment, or until he or she resigns or unless he or she is removed by a majority vote of our shareholders at a general meeting of our shareholders or upon the occurrence of certain events, in accordance with the Companies Law and our amended and restated articles of association.

In addition, under certain circumstances, our amended and restated articles of association allow our board of directors to appoint directors to fill vacancies on our board of directors or in addition to the acting directors (subject to the limitation on the number of directors), until the next annual general meeting or special general meeting in which directors may be appointed or terminated.

Under the Companies Law, any shareholder holding at least one percent of our outstanding voting power may nominate a director. However, any such shareholder may make such a nomination only if a written notice of such shareholder's intent to make such nomination has been given to our board of directors. Any such notice must include certain information, including the consent of the proposed director nominee to serve as our director if elected, and a declaration that the nominee signed declaring that he or she possesses the requisite skills and has the availability to carry out his or her duties. Additionally, the nominee must provide details of such skills and demonstrate an absence of any limitation under the Companies Law that may prevent his or her election and affirm that all of the required election information is provided to us, pursuant to the Companies Law.

Under the Companies Law, our board of directors must determine the minimum number of directors who are required to have accounting and financial expertise. In determining the number of directors required to

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have such expertise, our board of directors must consider, among other things, the type and size of the company and the scope and complexity of its operations. Our board of directors has determined that the minimum number of directors of our company who are required to have accounting and financial expertise is two.

The board of directors must elect one director to serve as the chairman of the board of directors to preside at the meetings of the board of directors and may also remove that director as chairman. Pursuant to the Companies Law, neither the chief executive officer nor any of his or her relatives is permitted to serve as the chairman of the board of directors, and a company may not vest the chairman or any of his or her relatives with the chief executive officer's authorities. In addition, a person who reports, directly or indirectly, to the chief executive officer may not serve as the chairman of the board of directors; the chairman may not be vested with authorities of a person who reports, directly or indirectly, to the chief executive officer; and the chairman may not serve in any other position in the company or a controlled company, but he or she may serve as a director or chairman of a controlled company. However, the Companies Law permits a company's shareholders to determine, for a period not exceeding three years from each such determination, that the chairman or his or her relative may serve as chief executive officer or be vested with the chief executive officer's authorities, and that the chief executive officer or his or her relative may serve as chairman or be vested with the chairman's authorities. Such determination of a company's shareholders requires either: (1) the approval of at least a majority of the shares of those shareholders present and voting on the matter (other than controlling shareholders and those having a personal interest in the determination) (shares held by abstaining shareholders shall not be considered); or (2) that the total number of shares opposing such determination does not exceed 2% of the total voting power in the company. Currently, we have a separate chairman and chief executive officer.

The board of directors may, subject to the provisions of the Companies Law, delegate any or all of its powers to committees of the board, and it may, from time to time, revoke such delegation or alter the composition of any such committee, subject to certain limitations. Unless otherwise expressly provided by the board of directors, the committees shall not be empowered to further delegate such powers. The composition and duties of our audit committee, financial statement examination committee and compensation committee are described below.

The board of directors oversees how management monitors compliance with our risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by us. The board of directors is assisted in its oversight role by an internal auditor. The internal auditor undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to our audit committee.

#### External Directors
Under the Companies Law, except as provided below, companies incorporated under the laws of the State of Israel that are publicly traded, including Israeli companies with shares listed on the NYSE American, are required to appoint at least two external directors who meet the qualification requirements, including certain independent criteria, set forth in the Companies Law. Pursuant to regulations under the Companies Law, companies with shares traded on certain U.S. stock exchanges, including the NYSE American, which do not have a "controlling shareholder," may, subject to certain conditions, "opt out" from the Companies Law requirements to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee of the board of directors. In accordance with these regulations, we intend to "opt out" from the Companies Law requirement to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee of the Board.

#### Committees of the Board of Directors
Our board of directors intends to establish two standing committees, the audit committee and the compensation committee.

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#### Audit Committee
Under the Companies Law, we will be required to appoint an audit committee subject to the listing of our Ordinary Shares on the NYSE American. The audit committee must be comprised of at least three directors, including all of the external directors, if applicable. We intend to opt out from the Companies Law requirements to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee. See "Management — Corporate Governance Practices."

Our audit committee will be comprised of Benjamin Eli Weiss, Dr. Harold Wiener and Dr. Sigang Qin.

Under the Companies Law, our audit committee is responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)

determining whether there are deficiencies in the business management practices of our company, and making recommendations to the board of directors to improve such practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)

determining whether to approve certain related party transactions (including transactions in which an office holder has a personal interest and whether such transaction is extraordinary or material under Companies Law) and establishing the approval process for certain transactions with a controlling shareholder or in which a controlling shareholder has a personal interest (see "Management — Board Practices — Approval of Related Party Transactions under Israeli law");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)

determining the approval process for transactions that are "non-negligible" (i.e., transactions with a controlling shareholder that are classified by the audit committee as non-negligible, even though they are not deemed extraordinary transactions), as well as determining which types of transactions would require the approval of the audit committee, optionally based on criteria which may be determined annually in advance by the audit committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)

examining our internal controls and internal auditor's performance, including whether the internal auditor has sufficient resources and tools to dispose of its responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)

examining the scope of our auditor's work and compensation and submitting a recommendation with respect thereto to our board of directors or shareholders, depending on which of them is considering the appointment of our auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi)

establishing procedures for the handling of employees' complaints as to deficiencies in the management of our business and the protection to be provided to such employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii)

where the board of directors approves the working plan of the internal auditor, examining such working plan before its submission to the board of directors and proposing amendments thereto.

Our board of directors intends to adopt an audit committee charter to be effective upon the listing of our Ordinary Shares on the NYSE American setting forth, among others, the responsibilities of the audit committee consistent with the rules of the SEC and the NYSE American (in addition to the requirements for such committee under the Companies Law), including, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ oversight of our independent registered public accounting firm and recommending the engagement, compensation or termination of engagement of our independent registered public accounting firm to the board of directors in accordance with Israeli law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ recommending the engagement or termination of the person filling the office of our internal auditor, reviewing the services provided by our internal auditor and reviewing effectiveness of our system of internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ recommending the terms of audit and non-audit services provided by the independent registered public accounting firm for pre-approval by our board of directors; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reviewing and monitoring, if applicable, legal matters with significant impact, finding of regulatory authorities' findings, receive reports regarding irregularities and legal compliance, acting according to "whistleblower policy" and recommend to our board of directors if so required.

#### Requirements for Audit Committee
Under the NYSE American Company Guide, we are required to maintain an audit committee consisting of at least three members, all of whom are independent and are financially literate and one of whom has accounting or related financial management expertise.

As noted above, the members of our audit committee will include Benjamin Eli Weiss, Dr. Harold Wiener and Dr. Sigang Qin. Benjamin Eli Weiss will serve as the chairman of our audit committee. All members of our audit committee meet the requirements for financial literacy under the NYSE American Company Guide. Our board of directors has determined that each member of our audit committee is an audit committee financial expert as defined by the SEC rules and has the requisite financial experience as defined by the NYSE American Company Guide.

#### Compensation Committee
Under the Companies Law, the board of directors of any public company must establish a compensation committee. The compensation committee must be comprised of at least three directors We intend to opt out from the Companies Law requirements to appoint external directors and related Companies Law rules concerning the composition of the audit committee and compensation committee. See "Management —Corporate Governance Practices*.*"

Our compensation committee, acting pursuant to a written charter, will consist of Yue Lei Shen, Dr. Harold Wiener and Larry Krauss. Yue Lei Shen will serve as the chairperson of our compensation committee. Our compensation committee complies with the provisions of the Companies Law, the regulations promulgated thereunder, and our amended and restated articles of association, on all aspects referring to its independence, authorities and practice. Our compensation committee follows home country practice as opposed to complying with the compensation committee membership and charter requirements prescribed under the NYSE American Company Guide.

Our compensation committee reviews and recommends to our board of directors: with respect to our executive officers' and directors': (1) annual base compensation (2) annual incentive bonus, including the specific goals and amounts; (3) equity compensation; (4) employment agreements, severance arrangements, and change in control agreements and provisions; (5) retirement grants and/or retirement bonuses; and (6) any other benefits, compensation, compensation policies or arrangements.

The duties of the compensation committee include the recommendation to the company's board of directors of a policy regarding the terms of engagement of office holders, to which we refer as a compensation policy. Such policy must be adopted by the company's board of directors, after considering the recommendations of the compensation committee. The compensation policy is then brought for approval by our shareholders, which requires a special majority (see "Management — Board Practices — Approval of Related Party Transactions under Israeli law"). Under the Companies Law, the board of directors may adopt the compensation policy if it is not approved by the shareholders, provided that after the shareholders oppose the approval of such policy, the compensation committee and the board of directors revisit the matter and determine that adopting the compensation policy would be in the best interests of the company. Under the Companies Law, we are required to adopt an office holder compensation policy no later than 9 months from the consummation of this offering.

The compensation policy must serve as the basis for decisions concerning the financial terms of employment or engagement of executive officers and directors, including exculpation, insurance, indemnification or any monetary payment or obligation of payment in respect of employment or engagement. The compensation policy must relate to certain factors, including advancement of the company's objectives, the company's business and its long-term strategy, and creation of appropriate incentives for executives. It must also consider, among other things, the company's risk management, size and the nature of its operations. The compensation policy must furthermore consider the following additional factors:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the education, skills, expertise and accomplishments of the relevant director or executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the director's or executive's roles and responsibilities and prior compensation agreements with him or her;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the relationship between the cost of the terms of service of an office holder and the average median compensation of the other employees of the company (including those employed through manpower companies), including the impact of disparities in salary upon work relationships in the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the possibility of reducing variable compensation at the discretion of the board of directors; and the possibility of setting a limit on the exercise value of non-cash variable compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ as to severance compensation, the period of service of the director or executive, the terms of his or her compensation during such service period, the company's performance during that period of service, the person's contribution towards the company's achievement of its goals and the maximization of its profits, and the circumstances under which the person is leaving the company.

The compensation policy must also include the following principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ with the exception of office holders who report directly to the chief executive officer, the link between variable compensation and long-term performance and measurable criteria;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the relationship between variable and fixed compensation, and the ceiling for the value of variable compensation at the time of its grant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the conditions under which a director or executive would be required to repay compensation paid to him or her if it was later shown that the data upon which such compensation was based was inaccurate and was required to be restated in the company's financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the minimum holding or vesting period for variable, equity-based compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ maximum limits for severance compensation.

The compensation policy must also consider appropriate incentives from a long-term perspective.

The compensation committee is responsible for: (1) recommending the compensation policy to a company's board of directors for its approval (and subsequent approval by the shareholders); and (2) duties related to the compensation policy and to the compensation of a company's office holders, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ recommending whether a compensation policy should continue in effect, if the then-current policy has a term of greater than three years (approval of either a new compensation policy or the continuation of an existing compensation policy must in any case occur every three years);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ recommending to the board of directors periodic updates to the compensation policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ assessing implementation of the compensation policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ determining whether the terms of compensation of certain office holders of the company need not be brought to approval of the shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ determining whether to approve the terms of compensation of office holders that require the committee's approval.

Our compensation policy will be designed to promote our long-term goals, work plan and policy, retain, motivate and incentivize our directors and executive officers, while considering the risks that our activities involve, our size, the nature and scope of our activities and the contribution of an officer to the achievement of our goals and maximization of profits, and align the interests of our directors and executive officers with our long-term performance. To that end, a portion of an executive officer compensation package is targeted to reflect our short and long-term goals, as well as the executive officer's individual performance. On the other hand, our compensation policy will include measures designed to reduce the executive officer's incentives to take excessive risks that may harm us in the long-term, such as limits on the value of cash bonuses and equity-based compensation, limitations on the ratio between the variable and the total compensation of an executive officer and minimum vesting periods for equity-based compensation.

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Our compensation policy will also address our executive officer's individual characteristics (such as his or her respective position, education, scope of responsibilities and contribution to the attainment of our goals) as the basis for compensation variation among our executive officers, and considers the internal ratios between compensation of our executive officers and directors and other employees. For example, the compensation that may be granted to an executive officer may include: base salary, annual bonuses, equity-based compensation, benefits and retirement and termination of service arrangements. All cash bonuses are limited to a maximum amount linked to the executive officer's base salary. In addition, our compensation policy will provide for maximum permitted ratios between the total variable (cash bonuses and equity-based compensation) and non-variable (base salary) compensation components, in accordance with an officer's respective position with the company.

An annual cash bonus may be awarded to executive officers upon the attainment of pre-set periodic objectives and individual targets. The annual cash bonus that may be granted to executive officers other than our Chief Executive Officer may be based entirely on a discretionary evaluation. Our Chief Executive Officer will be entitled to recommend performance objectives to such executive officers, and such performance objectives will be approved by our compensation committee (and, if required by law, by our board of directors).

The performance measurable objectives of our Chief Executive Officer will be determined annually by our compensation committee and board of directors. A less significant portion of the chairman's and/or the Chief Executive Officer's annual cash bonus may be based on a discretionary evaluation of the chairman's or the Chief Executive Officer's respective overall performance by the compensation committee and the board of directors based on quantitative and qualitative criteria.

The equity-based compensation under our compensation policy for our executive officers (including members of our board of directors) will be designed in a manner consistent with the underlying objectives in determining the base salary and the annual cash bonus, with its main objectives being to enhance the alignment between the executive officers' interests with our long-term interests and those of our shareholders and to strengthen the retention and the motivation of executive officers in the long term. Our compensation policy will provide for executive officer compensation in the form of share options or other equity-based awards, such as restricted shares and phantom, options, in accordance with our equity incentive plan then in place. Share options granted to executive officers shall be subject to vesting periods in order to promote long-term retention of the awarded executive officers. The equity-based compensation shall be granted from time to time and be individually determined and awarded according to the performance, educational background, prior business experience, qualifications, role and the personal responsibilities of the executive officer.

In addition, our compensation policy will contain compensation recovery provisions which allow us under certain conditions to recover bonuses paid in excess, will enable our Chief Executive Officer to approve an immaterial change in the terms of employment of an executive officer (provided that the changes of the terms of employment are in accordance with our compensation policy) and will allow us to exculpate, indemnify and insure our executive officers and directors subject to certain limitations set forth thereto.

Our compensation policy will also provide for compensation to the members of our board of directors.

#### Internal Auditor
Under the Companies Law, the board of directors of an Israeli public company must appoint an internal auditor nominated by the audit committee. We intend to appoint an internal auditor within 90 days following the consummation of this offering. The role of the internal auditor is to examine, among other things, whether a company's actions comply with the law and proper business procedure. The audit committee is required to oversee the activities, and to assess the performance of the internal auditor as well as to review the internal auditor's work plan. An internal auditor may not be an interested party or office holder, or a relative of any interested party or office holder and may not be a member of the company's independent accounting firm or its representative. The Companies Law defines an interested party as a holder of 5% or more of the outstanding shares or voting rights of a company, any person or entity that has the right to

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appoint at least one director or the general manager of the company or any person who serves as a director or as the general manager of a company. Our internal auditor is not our employee, but partner of a firm which specializes in internal auditing.

#### Remuneration of Directors
Under the Companies Law, remuneration of directors is subject to the approval of the compensation committee, thereafter by the board of directors and thereafter, unless exempted under the regulations promulgated under the Companies Law, by the general meeting of the shareholders. Where the director is also a controlling shareholder, the requirements for approval of transactions with controlling shareholders apply.

#### Fiduciary Duties of Office Holders
The Companies Law imposes a duty of care and a duty of loyalty on all office holders of a company.

The duty of care requires an office holder to act with the level of care with which a reasonable office holder in the same position would have acted under the same circumstances. The duty of care of an office holder includes a duty to use reasonable means to obtain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ information on the advisability of a given action brought for his approval or performed by him by virtue of his position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ all other important information pertaining to these actions.

The duty of loyalty of an office holder requires an office holder to act in good faith and for the benefit of the company, and includes a duty to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ refrain from any conflict of interest between the performance of his duties in the company and his performance of his other duties or personal affairs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ refrain from any action that is competitive with the company's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ refrain from exploiting any business opportunity of the company to receive a personal gain for himself or others; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ disclose to the company any information or documents relating to the company's affairs which the office holder has received due to his position as an office holder.

#### Insurance
Under the Companies Law, a company may obtain insurance for any of its office holders against the following liabilities incurred due to acts he or she performed as an office holder, if and to the extent provided for in the company's articles of association:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ breach of his or her duty of care to the company or to another person, to the extent such a breach arises out of the negligent conduct of the office holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a breach of his or her duty of loyalty to the company, provided that the office holder acted in good faith and had reasonable cause to assume that his or her act would not prejudice the company's interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a financial liability imposed upon him or her in favor of another person.

We currently have directors' and officers' liability insurance, providing total coverage of $5,000,000 for the benefit of all of our directors and officers, in respect of which we paid a twelve-month premium of approximately $5,000, which expires on June 30, 2026. We intend to purchase additional insurance coverage prior to the consummation of this offering.

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#### Indemnification
The Companies Law and the Securities Law, provide that a company may indemnify an office holder against the following liabilities and expenses incurred for acts performed by him or her as an office holder, either pursuant to an undertaking made in advance of an event or following an event, provided its articles of association include a provision authorizing such indemnification:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a financial liability imposed on him or her in favor of another person by any judgment concerning an act performed in his or her capacity as an office holder, including a settlement or arbitrator's award approved by a court;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reasonable litigation expenses, including attorneys' fees, expended by the office holder (a) as a result of an investigation or proceeding instituted against him or her by an authority authorized to conduct such investigation or proceeding, provided that (1) no indictment (as defined in the Companies Law) was filed against such office holder as a result of such investigation or proceeding; and (2) no financial liability as a substitute for the criminal proceeding (as defined in the Companies Law) was imposed upon him or her as a result of such investigation or proceeding, or, if such financial liability was imposed, it was imposed with respect to an offense that does not require proof of criminal intent; or (b) in connection with a monetary sanction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reasonable litigation expenses, including attorneys' fees, expended by the office holder or imposed on him or her by a court: (1) in proceedings that the company institutes, or that another person institutes on the company's behalf, against him or her; (2) in a criminal proceeding of which he or she was acquitted; or (3) as a result of a conviction for a crime that does not require proof of criminal intent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ expenses incurred by an office holder in connection with an Administrative Procedure under the Securities Law, including reasonable litigation expenses and reasonable attorneys' fees. An "Administrative Procedure" is defined as a procedure pursuant to chapters H3 (Monetary Sanction by the Israeli Securities Authority), H4 (Administrative Enforcement Procedures of the Administrative Enforcement Committee) or I1 (Arrangement to prevent Procedures or Interruption of procedures subject to conditions) to the Securities Law.

The Companies Law also permits a company to undertake in advance to indemnify an office holder, provided that if such indemnification relates to financial liability imposed on him or her, as described above, then the undertaking should be limited and shall detail the following foreseen events and amount or criterion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ to events that in the opinion of the board of directors can be foreseen based on the company's activities at the time that the undertaking to indemnify is made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ in amount or criterion determined by the board of directors, at the time of the giving of such undertaking to indemnify, to be reasonable under the circumstances.

We have entered into indemnification agreements with all of our directors and with all members of our senior management. Each such indemnification agreement provides the office holder with indemnification permitted under applicable law and up to a certain amount, and to the extent that these liabilities are not covered by directors and officers' insurance.

#### Exculpation
Under the Companies Law, an Israeli company may not exculpate an office holder from liability for a breach of his or her duty of loyalty, but may exculpate in advance an office holder from his or her liability to the company, in whole or in part, for damages caused to the company as a result of a breach of his or her duty of care (other than in relation to distributions), but only if a provision authorizing such exculpation is included in its articles of association. Our amended and restated articles of association provide that we may exculpate, in whole or in part, any office holder from liability to us for damages caused to the company as a result of a breach of his or her duty of care, but prohibit an exculpation from liability arising from a company's transaction in which our controlling shareholder or officer has a personal interest. Subject to the

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aforesaid limitations, under the indemnification agreements, we exculpate and release our office holders from any and all liability to us related to any breach by them of their duty of care to us to the fullest extent permitted by law.

#### Limitations
The Companies Law provides that we may not exculpate or indemnify an office holder nor enter into an insurance contract that would provide coverage for any liability incurred as a result of any of the following: (1) a breach by the office holder of his or her duty of loyalty unless (in the case of indemnity or insurance only, but not exculpation) the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice us; (2) a breach by the office holder of his or her duty of care if the breach was carried out intentionally or recklessly (as opposed to merely negligently); (3) any act or omission committed with the intent to derive an illegal personal benefit; or (4) any fine, monetary sanction, penalty or forfeit levied against the office holder.

Under the Companies Law, exculpation, indemnification and insurance of office holders in a public company must be approved by the compensation committee and the board of directors and, with respect to certain office holders or under certain circumstances, also by the shareholders.

Our amended and restated articles of association permit us to exculpate (subject to the aforesaid limitation), indemnify and insure our office holders to the fullest extent permitted or to be permitted by the Companies Law.

The foregoing descriptions summarize the material aspects and practices of our board of directors. For additional details, we also refer you to the full text of the Companies Law, as well as of our amended and restated articles of association, which are exhibits to this registration statement of which this prospectus forms a part, and are incorporated herein by reference.

There are no service contracts between us or any of our subsidiaries, on the one hand, and our directors in their capacity as directors, on the other hand, providing for benefits upon termination of service.

#### Approval of Related Party Transactions under Israeli Law
 *General* 

Under the Companies Law, we may approve an action by an office holder from which the office holder would otherwise have to refrain, as described above, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the office holder acts in good faith and the act or its approval does not cause harm to the company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the office holder disclosed the nature of his or her interest in the transaction (including any significant fact or document) to the company at a reasonable time before the company's approval of such matter.

 *Disclosure of Personal Interests of an Office Holder* 

The Companies Law requires that an office holder disclose to the company, promptly, and, in any event, not later than the board meeting at which the transaction is first discussed, any direct or indirect personal interest that he or she may have and all related material information known to him or her relating to any existing or proposed transaction by the company. If the transaction is an extraordinary transaction, the office holder must also disclose any personal interest held by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the office holder's relatives; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ any corporation in which the office holder or his or her relatives holds 5% or more of the shares or voting rights, serves as a director or general manager or has the right to appoint at least one director or the general manager.

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An office holder is not, however, obliged to disclose a personal interest if it derives solely from the personal interest of his or her relative in a transaction that is not considered an extraordinary transaction. Under the Companies Law, an extraordinary transaction is a transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ not in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ not on market terms; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ that is likely to have a material effect on the company's profitability, assets or liabilities.

The Companies Law does not specify to whom within us nor the manner in which required disclosures are to be made. We require our office holders to make such disclosures to our board of directors.

Under the Companies Law, once an office holder complies with the above disclosure requirement, the board of directors may approve a transaction between the company and an office holder, or a third party in which an office holder has a personal interest, unless the articles of association provide otherwise and provided that the transaction is in the company's interest. If the transaction is an extraordinary transaction in which an office holder has a personal interest, first the audit committee and then the board of directors, in that order, must approve the transaction. Under specific circumstances, shareholder approval may also be required. Generally, a person who has a personal interest in a matter which is considered at a meeting of the board of directors or the audit committee may not be present at such a meeting unless the chairman of the audit committee or board of directors (as applicable) determines that he or she should be present in order to present the transaction that is subject to approval. A director who has a personal interest in a transaction, which is considered at a meeting of the board of directors or the audit committee, may not be present at this meeting or vote on this matter, unless a majority of members of the board of directors or the audit committee, as the case may be, has a personal interest. If a majority of the board of directors has a personal interest, then shareholder approval is generally also required.

 *Disclosure of Personal Interests of a Controlling Shareholder* 

Under the Companies Law, the disclosure requirements that apply to an office holder also apply to a controlling shareholder of a public company. Extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a personal interest, including a private placement in which a controlling shareholder has a personal interest, as well as transactions for the provision of services whether directly or indirectly by a controlling shareholder or his or her relative, or a company such controlling shareholder controls, and transactions concerning the terms of engagement and compensation of a controlling shareholder or a controlling shareholder's relative, whether as an office holder or an employee, require the approval of the audit committee or the compensation committee, as the case may be, the board of directors and a majority of the shares voted by the shareholders of the company participating and voting on the matter in a shareholders' meeting. In addition, the shareholder approval must fulfill one of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ at least a majority of the shares held by shareholders who have no personal interest in the transaction and are voting at the meeting must be voted in favor of approving the transaction, excluding abstentions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the shares voted by shareholders who have no personal interest in the transaction who vote against the transaction represent no more than 2% of the voting rights in the company.

In addition, any extraordinary transaction with a controlling shareholder or in which a controlling shareholder has a personal interest with a term of more than three years requires the abovementioned approval every three years; however, such transactions not involving the receipt of services or compensation can be approved for a longer term, provided that the audit committee determines that such longer term is reasonable under the circumstances.

The Companies Law requires that every shareholder that participates, in person, by proxy or by voting instrument, in a vote regarding a transaction with a controlling shareholder, must indicate in advance or in the ballot whether or not that shareholder has a personal interest in the vote in question. Failure to so indicate will result in the invalidation of that shareholder's vote.

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The term "controlling shareholder" is defined in the Companies Law as a shareholder with the ability to direct the activities of the company, other than by virtue of being an office holder. A shareholder is presumed to be a controlling shareholder if the shareholder holds 50% or more of the voting rights in a company or has the right to appoint 50% or more of the directors of the company or its general manager. In the context of a transaction involving a shareholder of the company, a controlling shareholder also includes a shareholder who holds 25% or more of the voting rights in the company if no other shareholder holds more than 50% of the voting rights in the company. For this purpose, the holdings of all shareholders who have a personal interest in the same transaction will be aggregated.

 *Approval of the Compensation of Directors and Executive Officers* 

The compensation of, or an undertaking to indemnify, insure or exculpate, an office holder who is not a director requires the approval of the company's compensation committee, followed by the approval of the company's board of directors, and, if such compensation arrangement or an undertaking to indemnify, insure or exculpate is inconsistent with the company's stated compensation policy, or if the said office holder is the chief executive officer of the company (subject to a number of specific exceptions), then such arrangement is subject to the approval of our shareholders, subject to a special majority requirement.

*Directors*. Under the Companies Law, the compensation of our directors requires the approval of our compensation committee, the subsequent approval of the board of directors and, unless exempted under the regulations promulgated under the Companies Law, the approval of the general meeting of our shareholders. If the compensation of our directors is inconsistent with our stated compensation policy, then, provided that those provisions that must be included in the compensation policy according to the Companies Law have been considered by the compensation committee and board of directors, shareholder approval by a special majority will be required.

*Executive officers other than the chief executive officer.* The Companies Law requires the approval of the compensation of a public company's executive officers (other than the chief executive officer) in the following order: (i) the compensation committee, (ii) the company's board of directors, and (iii) only if such compensation arrangement is inconsistent with the company's stated compensation policy, the company's shareholders by a special majority. However, if the shareholders of the company do not approve a compensation arrangement with an executive officer that is inconsistent with the company's stated compensation policy, the compensation committee and board of directors may override the shareholders' decision if each of the compensation committee and the board of directors provide detailed reasons for their decision.

*Chief executive officer.* Under the Companies Law, the compensation of a public company's chief executive officer is required to be approved by: (i) the company's compensation committee; (ii) the company's board of directors, and (iii) the company's shareholders by a special majority. However, if the shareholders of the company do not approve the compensation arrangement with the chief executive officer, the compensation committee and board of directors may override the shareholders' decision if each of the compensation committee and the board of directors provides detailed reasons for their decision. In addition, the compensation committee may exempt the engagement terms of a candidate to serve as the chief executive officer from shareholders' approval, if the compensation committee determines that the compensation arrangement is consistent with the company's stated compensation policy, that the chief executive officer did not have a prior business relationship with the company or a controlling shareholder of the company, and that subjecting the approval to a shareholder vote would impede the company's ability to attain the candidate to serve as the company's chief executive officer (and provide detailed reasons for the latter).

The approval of each of the compensation committee and the board of directors, with regard to the office holders and directors above, must be in accordance with the company's stated compensation policy; however, under special circumstances, the compensation committee and the board of directors may approve compensation terms of a chief executive officer that are inconsistent with the company's compensation policy provided that they have considered those provisions that must be included in the compensation policy according to the Companies Law and that shareholder approval was obtained by a special majority requirement.

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#### Duties of Shareholders
Under the Companies Law, a shareholder has a duty to refrain from abusing his power in the company and to act in good faith and in an acceptable manner in exercising his rights and performing his obligations toward the company and other shareholders, including, among other things, in voting at general meetings of shareholders (and at shareholder class meetings) on the following matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ amendment of the articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ increase in the company's authorized share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ merger; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the approval of related party transactions and acts of office holders that require shareholder approval.

A shareholder also has a general duty to refrain from oppressing other shareholders. The remedies generally available upon a breach of contract will also apply to a breach of the above mentioned duties, and in the event of oppression of other shareholders, additional remedies are available to the injured shareholder.

In addition, any controlling shareholder, any shareholder that knows that its vote can determine the outcome of a shareholder vote and any shareholder that, under a company's articles of association, has the power to appoint or prevent the appointment of an office holder, or has another power with respect to a company, is under a duty to act with fairness towards the company. The Companies Law does not describe the substance of this duty except to state that the remedies generally available upon a breach of contract will also apply in the event of a breach of the duty to act with fairness, taking the shareholder's position in the company into account.

#### 2013 Employee Share Option Plan
The 2013 Plan was adopted by our board of directors on July 13, 2013. The 2013 Plan provides for the grant of options to our employees, directors, advisors, consultants, service providers and any other persons whose services we consider valuable to us and/or our affiliates, in order to incentivize such persons to contribute to our development and financial success.

*Shares Available for Grant.* We have reserved 477,096 authorized but unissued Ordinary Shares for the purposes of the 2013 Plan and any other option plan which may be adopted in the future, subject to adjustment. Any Ordinary Shares subject to options granted under the 2013 Plan that expire or otherwise cancelled without having been exercised in full will become available again for future grant under the 2013 Plan.

*Administration.* Our board of directors, or a duly authorized share option committee appointed by our board of *directors* consisting of no fewer than two members of the board, administers the 2013 Plan, or the Administrator. Under the 2013 Plan, the Administrator has the authority to interpret the terms of the 2013 Plan, designate participants, determine the number of options for each participant, the purchase price, the time and the extent to which options will be exercised, the terms and provisions of the respective option agreements, the fair market value of the shares covered by each option, make an election as to the type of approved options under Section 102 of the Israeli Income Tax Ordinance, designate the type of options, alter any restrictions and conditions of any options or shares subject to any options, accelerate the right of an optionee to exercise any previously granted option, prescribe, and take any actions deemed necessary or advisable for the administration and implementation of the 2013 Plan.

 *Eligibility and Participation* 

The Administrator selects the individuals who will participate in the 2013 Plan. Eligibility to participate is open to employees, directors, advisors, consultants or service providers of the Company or any of its affiliates or any other person providing services to the Company or any of its affiliates. *Types of Options*.** The 2013 Plan provides for granting options in compliance with Section 102 of the Israeli Income Tax Ordinance (New

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Version), 5721-1961, or the Ordinance, or, for options granted to our consultants, advisors, service providers or controlling shareholders, under Section 3(i) of the Ordinance. Section 102 of the Ordinance allows employees, directors and officers who are not controlling shareholders and are considered Israeli residents to receive favorable tax treatment for compensation in the form of shares or options. Our non-employee service providers and controlling shareholders may only be granted options under Section 3(i) of the Ordinance, which does not provide for similar tax benefits. Section 102 includes two alternatives for tax treatment involving the issuance of options or shares to a trustee for the benefit of the grantees and also includes an additional alternative for the issuance of options or shares directly to the grantee. Section 102(b)(2) of the Ordinance permits the issuance to a trustee under the "capital gain track," which provides the most favorable tax treatment for the grantee, while Section 102(b)(1) permits issuance under the "ordinary income track."

*Grants*. All options granted pursuant to the 2013 Plan are evidenced by a written option agreement between us and the optionee. The option agreement sets forth the terms and conditions of the option grant. The 2013 Plan shall remain in effect until terminated by our board of directors.

*Exercise.* An option under the 2013 Plan may be exercised by providing us and/or any third party designated by us with a written exercise notice in a form and method as may be determined by us, and when applicable, by the trustee in accordance with the requirements of Section 102 accompanied by payment of the purchase price for the shares underlying the option.

*Transferability.* Options may not be assigned, transferred, pledged, or otherwise given as collateral or any other right with respect thereto to any third party, except by will or the laws of descent and distribution.

*Termination of Employment or Services.* In the event of termination of an optionee's employment or service with us or any of our affiliates, except as described below, all options granted to such optionee will immediately expire. A notice of termination of employment or service shall be deemed to constitute termination of employment or service. The unvested portion of the optionee's option shall not vest and shall not become exercisable upon termination.

Notwithstanding the foregoing, and unless otherwise determined in the optionee's option agreement, an option may be exercised after the date of termination of the optionee's employment or service with us or any affiliates during an additional period of time beyond the date of such termination, but only with respect to the number of vested options at the time of such termination: (i) if termination is without cause, any vested option still in force and unexpired may be exercised within a period of ninety days after the date of such termination; or (ii) if termination is the result of death or disability of the optionee, any vested option still in force and unexpired may be exercised within a period of twelve months after the date of such termination; or (iii) if prior to the date of such termination, the Administrator authorizes an extension of the terms of all or part of the vested options beyond the date of such termination for a period not to exceed the period during which the options by their terms would otherwise have been exercisable.

If termination of employment or service is for cause, any outstanding unexercised option, whether vested or non-vested, will immediately expire and terminate, and the optionee shall not have any right in connection with such outstanding options.

*Merger or Acquisition.* In the event of a (i) a merger, acquisition or reorganization of us with one or more other entities in which we are not the surviving entity; or (ii) a sale of all or substantially all of our assets, the unexercised options then outstanding under the 2013 Plan shall be assumed or substituted for an appropriate number of shares of each class of shares or other securities of the successor company or a parent or subsidiary of the successor company as were distributed to our shareholders in connection with and with respect to such transaction. In the case of such assumption and/or substitution of options, appropriate adjustments shall be made to the purchase price so as to reflect such action and all other terms and conditions of the option agreements shall remain unchanged, all subject to the determination of the Administrator.

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Notwithstanding the above and subject to any applicable law, the Administrator shall have full power and authority to accelerate the vesting dates if the successor company or parent or subsidiary of the successor company does not agree to assume or substitute for the options.

*Adjustments.* In the event of a share dividend, share split, combination or exchange of shares, recapitalization, or any other like event, then the number, class and kind of the shares subject to the 2013 Plan or subject to any options granted thereunder, and the purchase prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of shares without changing the aggregate purchase price. In the event of any of the foregoing, the class and aggregate number of shares issuable pursuant to the 2013 Plan in respect of which options have not yet been exercised shall be appropriately adjusted, all as will be determined by the board of directors. No adjustment shall be made by reason of the distribution of subscription rights on outstanding shares.

*Liquidation or Dissolution.* If we are voluntarily liquidated or dissolved, we shall immediately notify all unexercised option holders of such liquidation, and the option holders shall then have ten days to exercise any unexercised vested option held by them at that time. Upon the expiration of such ten-day period, all remaining outstanding options will terminate immediately.

*Amendments or Termination.* The board may at any time, but when applicable after consultation with the trustee, amend, alter, suspend or terminate the 2013 Plan. No amendment, alteration, suspension or termination of the 2013 Plan will impair the rights of any optionee, unless mutually agreed otherwise between us and the optionee, which agreement must be in writing and signed by us and the optionee. Termination of the 2013 Plan shall not affect the Administrator's ability to exercise the powers granted to it with respect to options granted under the 2013 Plan prior to the date of such termination.

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### P RINCIPAL S HAREHOLDERS
The following table sets forth information with respect to the beneficial ownership of our Ordinary Shares as of the date of this prospectus by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ each person or entity known by us to own beneficially 5% or more of our outstanding Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ each of our directors and executive officers individually; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ all of our directors and executive officers as a group.

The beneficial ownership of our Ordinary Shares is determined in accordance with the rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power, or the right to receive the economic benefit of ownership. For purposes of the table below, we deem Ordinary Shares issuable pursuant to options that are currently exercisable or exercisable within 60 days of June 8, 2026 to be outstanding and to be beneficially owned by the person holding the options for the purposes of computing the percentage ownership of that person, but we do not treat them as outstanding for the purpose of computing the percentage ownership of any other person. Percentage of shares beneficially owned before this offering is based on 3,353,228 Ordinary Shares to be issued and outstanding immediately prior to the closing of the offering (including an aggregate of 2,945,706 Ordinary Shares issuable upon the conversion of all of our outstanding preferred shares and all SAFEs immediately prior to the closing of this offering). The number of Ordinary Shares deemed issued and outstanding after this offering is based on 5,503,228 Ordinary Shares which includes the Ordinary Shares offered hereby but assumes no exercise by the representative of the underwriters of the over-allotment option.

Based on the Company's knowledge and the Company's register, as of the date of this prospectus, and based on their reported registered office, four of our shareholders were U.S. persons, holding in aggregate approximately 3.1% of our outstanding Ordinary Shares immediately prior to this offering. We have also set forth below information known to us regarding any significant change in the percentage ownership of our Ordinary Shares by any major shareholders during the past three years. Except where otherwise indicated, we believe, based on information furnished to us by such owners, that the beneficial owners of the Ordinary Shares listed below have sole investment and voting power with respect to such shares.

Following the closing of this offering, all of our shareholders, including the shareholders listed below, will have the same voting rights attached to their Ordinary Shares, and neither our principal shareholders nor our directors and executive officers will have different or special voting rights with respect to their Ordinary Shares. See "Description of Share Capital — Voting Rights." A description of any material relationship that our principal shareholders have had with us or any of our predecessors or affiliates within the past three years is included under "Certain Relationships and Related Party Transactions."

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Unless otherwise noted below, the address of each shareholder, director and executive officer is c/o Silentium Ltd., 5 Golda Meir Street, Ness Ziona, 7403649 Israel.

---

| | | | |
|:---|:---|:---|:---|
| | | **Percentage of <br> Ordinary Shares <br> beneficially owned**  | **Percentage of <br> Ordinary Shares <br> beneficially owned**  |
| **Name of beneficial owner**  | **Ordinary Shares <br> beneficially owned**  | **Before <br> offering**  | **After <br> offering**  |
| **5% or Greater Shareholders** |  |  |  |
| Black Inc.(1)  | 857554 | 24.3% | 15.1% |
| Naor Group Ltd.(2)  | 122952 | 3.6% | 2.2% |
| Entities affiliated with Terra Venture Partners(3)  | 200400 | 5.9% | 3.6% |
| **Directors and Executive Officers** |  |  |  |
| Yoel Naor(4)  | 46786 | 1.4% | \* |
| Evan Fishman(5)  | 6531 | \* | \* |
| Tzvika Fridman(6)  | 26562 | \* | \* |
| Ziv Hermon(7)  | 4381 | \* | \* |
| Amir Slapak(8)  | 5030 | \* | \* |
| Dr. Sigang Qin(9)  | 255817 | 7.6% | 4.6% |
| Yue Lei Shen(10)  | 133293 | 4.0% | 2.4% |
| Larry Krauss  |  |  |  |
| Benjamin Eli Weiss (trustee)(11)  | 234848 | 6.9% | 4.2% |
| Dr. Harold Wiener  |  |  |  |
| All directors and executive officers as a group (ten persons)  | 713248 | 20.2% | 12.6% |

---

\*

Indicates beneficial ownership of less than 1%.

<sup>1)</sup>

Consists of (i) 186 Ordinary Shares issuable upon conversion of Series A-1 Preferred Shares, (ii) 93,190 Ordinary Shares issuable upon conversion of Series B-1 Preferred Shares, (iii) 96,003 Ordinary Shares issuable upon conversion of Series C Preferred Shares, (iv) 93,191 Ordinary Shares issuable upon the conversion of warrants to purchase Series B-2 Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, (v) 106,868 Ordinary Shares issuable upon the conversion of warrants to purchase Series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, (vi) 468,116 Ordinary Shares issuable upon conversion of the 2025 SAFEs within 60 days from the date of this prospectus. The beneficial owner of Black Inc. is Larry Krauss.

<sup>2)</sup>

Consists of (i) 42,804 Ordinary Shares, (ii) 3,540 Ordinary Shares issuable upon conversion of Series A-5 Preferred Shares, (iii) 18,217 Ordinary Shares issuable upon conversion of Series C Preferred Shares, (iv) 36,436 Ordinary Shares issuable upon the conversion of warrants to purchase Series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, and (v) 21,955 Ordinary Shares issuable upon conversion of the 2025 SAFEs within 60 days from the date of this prospectus. The beneficial owner of Naor Group Ltd. is Larry Krauss.

<sup>3)</sup>

Consists of (A) (i) 9,667 Ordinary Shares, (ii) 15,119 Ordinary Shares issuable upon conversion of Series A-5 Preferred Shares, (iii) 58,382 Ordinary Shares issuable upon conversion of Series C Preferred Shares, (iv) 46,934 Ordinary Shares issuable upon the conversion of warrants to purchase Series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, (v) 466 Ordinary Shares issuable upon the exercise of options, and (vi) 25,687 Ordinary Shares issuable upon conversion of the 2025 SAFEs within 60 days from the date of this prospectus each held by Terra Venture Partners S.C.A. SICAR, and (B) (i) 2,739 Ordinary Shares, (ii) 4,284 Ordinary Shares issuable upon conversion of Series A-5 Preferred Shares, (iii) 16,543 Ordinary Shares issuable upon conversion of Series C Preferred Shares, and (iv) 13,300 Ordinary Shares issuable upon the conversion of warrants to

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purchase series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, each held by Terra Venture Partners, and (v) 7,279 Ordinary Shares issuable upon conversion of the 2025 SAFE. L.P. Dr. Harold Wiener is the Managing Partner of Terra Venture Partners.

<sup>4)</sup>

Consists of options to purchase 46,786 Ordinary Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus. Does not include options to purchase 69,626 Ordinary Shares that are subject to a vesting schedule.

<sup>5)</sup>

Consists of options to purchase 6,531 Ordinary Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus. Does not include options to purchase 19,592 Ordinary Shares that are subject to a vesting schedule.

<sup>6)</sup>

Consists of options to purchase 26,562 Ordinary Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus. Does not include options to purchase 42,043 Ordinary Shares that are subject to a vesting schedule.

<sup>7)</sup>

Consists of options to purchase 4,381 Ordinary Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus. Does not include options to purchase 6,984, Ordinary Shares that are subject to a vesting schedule.

<sup>8)</sup>

Consists of options to purchase 5,030 Ordinary Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus. Does not include options to purchase 6,335 Ordinary Shares that are subject to a vesting schedule.

<sup>9)</sup>

Consists of (i) 4,545 Ordinary Shares, (ii) 1,365 Ordinary Shares issuable upon conversion of Series A-1 shares, (iii) 5,731 Ordinary Shares issuable upon conversion of preferred B-1 shares, (iv) 56,606 Ordinary Shares issuable upon conversion of preferred C shares, (v) 5,731 Ordinary Shares issuable upon the conversion of warrants to purchase Series B-2 Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, (vi) 38,536 Ordinary Shares issuable upon the conversion of warrants to purchase Series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, and (vii) and 143,303 Ordinary Shares issuable upon conversion of the 2025 SAFEs within 60 days from the date of this prospectus.

<sup>10)</sup>

Consists of (i) 16,190 Ordinary Shares, (ii) 4,130 Ordinary Shares issuable upon conversion of Series A-1 Preferred Shares, and (iii) 112,973 Ordinary Shares issuable upon conversion of Series C Preferred Shares.

<sup>11)</sup>

Consists of (i) 18,678 Ordinary Shares, (ii) 54 Ordinary Shares issuable upon conversion of Series A-1 Preferred Shares, (iii) 1,041 Ordinary Shares issuable upon conversion of Series A-3 Preferred Shares, (iv) 2,812 Ordinary Shares issuable upon conversion of Series A-4 Preferred Shares, (v) 20,716 Ordinary Shares issuable upon conversion of Series B-1 Preferred Shares, (vi) 62,091 Ordinary Shares issuable upon conversion of Series C Preferred Shares, (vii) 20,716 Ordinary Shares issuable upon the conversion of warrants to purchase Series B-2 Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, (viii) 34,072 Ordinary Shares issuable upon the conversion of warrants to purchase Series C Preferred Shares that are currently exercisable or will be exercisable within 60 days from the date of this prospectus, and (ix) and 74,668 Ordinary Shares issuable upon conversion of the 2025 SAFEs within 60 days from the date of this prospectus.

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### C ERTAIN R ELATIONSHIPS AND R ELATED P ARTY T RANSACTIONS
The following is a description of the material terms of those transactions with related parties to which we, or our subsidiaries, have been a party since January 1, 2023.

#### Agreements with Directors and Officers

#### Employment Agreements
We have entered into written employment agreements with each of our executive officers. See "Management —Compensation — Employment Agreements with Executive Officers."

#### Options
Since our inception, we have granted our executive officers options to purchase our Ordinary Shares. See "Management — 2013 Employee Share Option Plan."

#### Exculpation, Indemnification and Insurance
Our articles of association permit us to exculpate, indemnify and insure our office holders to the fullest extent permitted by the Companies Law. We intend to enter into agreements with each of our directors and executive officers, subject to the listing of our securities on the NYSE American, exculpating them in advance from a breach of their duty of care to the fullest extent permitted by law and undertaking to indemnify them to the fullest extent permitted by law, to the extent that these liabilities are not covered by insurance. See "Management — Board Practices."

#### Equity and other Financings
In September 2024, we entered into the Series C Preferred Share Purchase and Recapitalization Agreement, or the Purchase and Recapitalization Agreement, with certain investors, among them certain of our directors and principal shareholders, including Dr. Sigang Qin, Benjamin Weiss, Black Inc., a company owned by Larry Krauss, Terra Venture Partners S.C.A. SICAR and Terra Venture Partners, L.P., where Harold Wiener serves as a director, Astorre Modena (as a trustee), Elias Wexler and Yin Tsung (Chris) Chan, a business partner of Haoyi Yang, which we refer to collectively as the September 2024 related-party investors. Pursuant to the Purchase and Recapitalization Agreement, we issued to the September 2024 related-party investors 330,343 Preferred C Shares at a price per share of $6.7 for aggregate net proceeds of $2,211,646. In addition, at the closing of the Purchase and Recapitalization Agreement, $2,237,500 which was previously invested in our company in 2023 and 2024 pursuant to Simple Agreements for Future Equity, or the 2023 and 2024 SAFEs, by certain directors and principal shareholders, including Dr. Sigang Qin, Benjamin Weiss, Black Inc., a company owned by Larry Krauss and Haoyi Yang was converted into 128,237 Preferred B-1 Shares, and the existing warrants of the SAFE holders were amended, or the SAFE Warrants, so that the investors of the 2023 and 2024 SAFEs would be allowed to purchase 128,237 Preferred B-2 Shares at an exercise price of $17.45 per share.

Furthermore, as part of the Purchase and Recapitalization Agreement, all of our then-outstanding preferred shares were converted on a one-to-one basis into Ordinary Shares. Certain preferred shares held by the September 2024 related-party investors were converted, instead of into Ordinary Shares, into Preferred A-1 Shares, Preferred A-2 Shares, Preferred A-3 Shares, Preferred A-4 Shares and Preferred A-5 Shares. Pursuant to these conversions, preferred shares held by the September 2024 related-party investors were converted into 39,565 Ordinary Shares, 1,606 Preferred A-1 Shares, 1,040 Preferred A-3 Shares, 2,811 Preferred A-4 Shares and 20,444 Preferred A-5 Shares. In addition, as a result of our Series C Preferred Share financing in September 2024, our then-existing shareholders and the Series C investors agreed to amend our Articles of Association. Among other things, the amendment granted the investors in our 2023 and 2024 SAFEs the right to nominate up to two directors to our board of directors (who are currently Mr. Larry Krauss and Dr. Sigang Qin), and granted Terra Venture Partners, the lead investor in the Series C

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

financing, the right to nominate one director (who is currently Mr. Harold Wiener). All such nomination rights will terminate upon the adoption of our Amended and Restated Articles of Association, which will become effective upon the consummation of this offering.

In June 2025, we entered into the Subscription Agreement with certain investors, among them certain of our directors and principal shareholders, including Benjamin Weiss, Dr. Sigang Qin, Terra Venture Partners S.C.A. SICAR and Terra Venture Partners, L.P., in which Harold Wiener is a director, Naor Group Ltd. and Black Inc., companies owned by Larry Krauss, Astorre Modena (as a trustee), Simone Haggiag, Hallfield Holdings, Batten Trustee Ltd as trustee of the Arrow Trust and Alan Franco, pursuant to which we have issued to such related parties 202,683 Preferred C Shares at a price per share of $6.7 and warrants to purchase 405,366 Preferred C Shares at an exercise price of $6.7 per share.

Between September 2025 and May 2026, we entered into certain equity investment agreements, which we refer to as the 2025 SAFEs, with certain investors, among them certain of our directors and principal shareholders, including Dr. Sigang Qin, iVentures Asia Ltd and Heliant Investment Management Ltd, companies of which Benjamin Weiss is a beneficial owner, Black Inc., a company owned by Larry Krauss, Astorre Modena (as a trustee), Simone Haggiag, Hallfield Holdings, and Batten Trustee Ltd as trustee of the Arrow Trust, for aggregate proceeds of approximately $1,930,000. Upon completion of this offering, the 2025 SAFEs will automatically convert into Ordinary Shares, based on a price per share that reflects a pre-money valuation of $3,000,000 for our company or equal to the purchase amount divided by the per Ordinary Share price in this offering discounted by 25%, whichever calculation results in a greater number of shares for the investor.

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### D ESCRIPTION OF S HARE C APITAL
The following descriptions of our share capital and provisions of our amended and restated articles of association which will be effective upon the closing of this offering are summaries and do not purport to be complete. A form of our amended and restated articles of association will be filed with the SEC as an exhibit to our registration statement, of which this prospectus forms a part. The description of the Ordinary Shares reflects changes to our capital structure that will occur upon the closing of this offering.

#### General
As of June 8, 2026, our authorized share capital consisted of 3,326,330 Ordinary Shares, no par value per share, of which 407,521 Ordinary Shares were issued and outstanding as of such date.

Upon the closing of this offering, our authorized share capital will consist of 100,000,000 Ordinary Shares, no par value per share, of which, upon closing of this offering, 5,503,228 Ordinary Shares will be issued and outstanding (assuming that the Representative does not exercise its over-allotment option). All of our outstanding Ordinary Shares will be validly issued, fully paid and non-assessable. Our Ordinary Shares are not redeemable and are not subject to any preemptive right.

Since December 31, 2023, we have issued an aggregate of 403,942 Ordinary Shares, primarily as a result of the conversion of preferred shares.

In addition to Ordinary Shares, in the last three years, we have granted options to purchase an aggregate of 337,293 Ordinary Shares to directors, officers and employees with exercise prices ranging between $3.36 and $45.73 per share under our 2013 Plan. As of the date of this prospectus, the total outstanding number of options under the 2013 Plan is 373,757.

All of our Ordinary Shares have identical voting and other rights in all respects.

#### Warrants
From 2009 through 2014, we issued warrants to purchase up to 20,303 of our preferred shares (which were later converted to Ordinary Shares as part of the Purchase and Recapitalization Agreement) at an exercise price of $70.86 per share. These warrants will terminate immediately prior to the closing of this offering unless exercised prior thereto into up to 20,303 Ordinary Shares.

In 2014, we issued warrants to purchase up to 2,514 of our preferred shares (which were later converted to Ordinary Shares as part of the Purchase and Recapitalization Agreement) which may be exercised on a zero cash exercise basis. These warrants will terminate immediately prior to the closing of this offering unless exercised prior thereto into up to 2,514 Ordinary Shares.

In October 2022, as part of the terms of the 2022 Loan Agreement, we extended the term of the Mizrahi Warrant, which was granted to the Bank in connection with a loan agreement in 2020 and entitles it to purchase 2,185 Ordinary Shares at an exercise price of $183 per share. In addition to the extension of the Mizrahi Warrant, we issued to the Bank an additional new warrant to purchase 44,810 Preferred C Shares at an exercise price of $6.7 per share. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources —Indebtedness — Bank Mizrahi Loans," for additional information regarding these warrants.

In September 2024, pursuant to the Purchase and Recapitalization Agreement, holders of the 2023 and 2024 SAFEs, who had held SAFE Warrants, had their warrants amended so that they would entitle the holders thereof to purchase up to 153,311 Preferred B-2 Shares at an exercise price of $17.45 per share. If the SAFE Warrants are not exercised prior to the closing of this offering, they will be exercisable into up to 153,311 Ordinary Shares following the closing of this offering.

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DESCRIPTION OF SHARE CAPITAL

#### Simple Agreements for Future Equity
From 2023 through the date of this prospectus, we entered into SAFEs for aggregate proceeds of up to $5,666,200. For additional information, see "Certain Relationships and Related Party Transactions — Equity and other Financings."

#### Preferred Shares
Upon the closing of this offering, all of our preferred shares outstanding will automatically convert into an aggregate of ordinary shares on a one-to-one basis, and will have no further preferences, privileges or priority rights of any kind. Following the closing of this offering, no preferred shares will be authorized under our amended and restated articles of association.

#### The Powers of the Directors
Our Board of Directors shall direct our policy and shall supervise the performance of our Chief Executive Officer and his actions. Our Board of Directors may exercise all powers that are not required under the Companies Law or under our amended and restated articles of association to be exercised or taken by our shareholders.

#### Rights Attached to Shares
Our Ordinary Shares shall confer upon the holders thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ equal right to attend and to vote at all of our general meetings, whether regular or special, with each Ordinary Share entitling the holder thereof, which attend the meeting and participate at the voting, either in person or by a proxy or by a written ballot, to one vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ equal right to participate in distribution of dividends, if any, whether payable in cash or in bonus shares, in distribution of assets or in any other distribution, on a per share pro rata basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ equal right to participate, upon our dissolution, in the distribution of our assets legally available for distribution, on a per share pro rata basis.

#### Election of Directors
Pursuant to our amended and restated articles of association, each director is elected at an annual general meeting and/or a special meeting of our shareholders and serves on the board of directors until the third annual general meeting following his or her election (except for external directors, if any) or until they resign or until they cease to act as board members pursuant to the provisions of our amended and restated articles of association or any applicable law, upon the earlier. Our directors are elected by a simple majority vote of holders of our Ordinary Shares, participating and voting at an annual general meeting of our shareholders. Our amended and restated articles of association allow our Board of Directors to appoint directors to fill vacancies for the remaining period of time during which the director whose service has ended was filled would have held office and/or as an addition to the Board of Directors (subject to the maximum number of directors) to serve until the remainder of the term of the class of directors of such new director(s) as determined by the Board of Directors at the time of such appointment.

#### Annual and Special Meetings
Under the Israeli law, we are required to hold an annual general meeting of our shareholders once every calendar year, at such time and place which shall be determined by our Board of Directors, that must be no later than 15 months after the date of the previous annual general meeting. All meetings other than the annual general meeting of shareholders are referred to as special general meetings. Our Board of Directors may call special meetings whenever it sees fit and upon the request of any shareholder or shareholders holding at least five percent (5%) or a higher percent of our voting rights.

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DESCRIPTION OF SHARE CAPITAL

Subject to the provisions of the Companies Law and the regulations promulgated thereunder, shareholders entitled to participate and vote at general meetings are the shareholders of record on a date to be decided by the board of directors, which may be between four and twenty-one days prior to the date of the meeting. Resolutions regarding the following matters must be passed at a general meeting of our shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ amendments to our amended and restated articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the exercise of our Board of Director's powers by a general meeting if our Board of Directors is unable to exercise its powers and the exercise of any of its powers is required for our proper management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ appointment or termination of our auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ appointment of directors, including external directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ approval of acts and transactions requiring general meeting approval pursuant to the provisions of the Companies Law (mainly certain related party transactions) and any other applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ increases or reductions of our authorized share capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a merger (as such term is defined in the Companies Law).

#### Notices
The Companies Law and our amended and restated articles of association require that a notice of any annual or special shareholders meeting be provided at least 21 days prior to the meeting, and if the agenda of the meeting includes the appointment or removal of directors, the approval of transactions with office holders or interested or related parties, approval of the company's general manager to serve as the chairman of the board of directors or an approval of a merger, notice must be provided at least 35 days prior to the meeting.

#### Quorum
As permitted under the Companies Law, the quorum required for our general meetings consists of at least two shareholders present in person, by proxy, written ballot or voting by means of electronic voting system, who hold or represent between them at least 25% of the total outstanding voting rights. If within half an hour of the time set forth for the general meeting a quorum is not present, the general meeting shall stand adjourned the same day of the following week, at the same hour and in the same place, or to such other date, time and place as prescribed in the notice to the shareholders and in such adjourned meeting, if no quorum is present within half an hour of the time arranged, any number of shareholders participating in the meeting, shall constitute a quorum.

If a special general meeting was summoned following the request of a shareholder, and within half an hour a legal quorum shall not have been formed, the meeting shall be canceled.

#### Adoption of Resolutions
Our amended and restated articles of association provide that all resolutions of our shareholders require a simple majority vote, unless otherwise required under the Companies Law or our amended and restated articles of association. A shareholder may vote in a general meeting in person, by proxy, by a written ballot.

#### Changing Rights Attached to Shares
Unless otherwise provided by the terms of the shares and subject to any applicable law, any modification of rights attached to any class of shares must be adopted by the holders of a majority of the shares of that class present a general meeting of the affected class or by a written consent of all the shareholders of the affected class.

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The enlargement of an existing class of shares or the issuance of additional shares thereof, shall not be deemed to modify the rights attached to the previously issued shares of such class or of any other class, unless otherwise provided by the terms of the shares.

#### Limitations on the Right to Own Securities in Our Company
There are no limitations on the right to own our securities.

#### Provisions Restricting Change in Control of Our Company
Our Articles of Association provide that our directors (other than external directors, if applicable) are elected on a staggered basis, such that a potential acquirer cannot readily replace our entire board of directors at a single annual general shareholder meeting. This could prevent a potential acquirer from receiving board approval for an acquisition proposal that our board of directors opposes.

In addition, the Companies Law includes provisions that allow a merger transaction and requires that each company that is a party to the merger have the transaction approved by its board of directors and, unless certain requirements described under the Companies Law are met, a vote of the majority of shareholders, and, in the case of the target company, also a majority vote of each class of its shares. For purposes of the shareholder vote of each party, unless a court rules otherwise, the merger will not be deemed approved if shares representing a majority of the voting power present at the shareholders meeting and which are not held by the other party to the merger (or by any person or group of persons acting in concert who holds 25% or more of the voting power or the right to appoint 25% or more of the directors of the other party) vote against the merger. If, however, the merger involves a merger with a company's own controlling shareholder or if the controlling shareholder has a personal interest in the merger, then the merger is instead subject to the same Special Majority approval that governs all extraordinary transactions with controlling shareholders. Upon the request of a creditor of either party to the proposed merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that as a result of the merger the surviving company will be unable to satisfy the obligations of any of the parties to the merger, and may further give instructions to secure the rights of creditors. If the transaction would have been approved by the shareholders of a merging company but for the separate approval of each class or the exclusion of the votes of certain shareholders as provided above, a court may still approve the merger upon the petition of holders of at least 25% of the voting rights of a company. For such petition to be granted, the court must find that the merger is fair and reasonable, taking into account the value of the parties to the merger and the consideration offered to the shareholders. In addition, a merger may not be completed unless at least (1) 50 days have passed from the time that the requisite proposals for approval of the merger were filed with the Israeli Registrar of Companies by each merging company and (2) 30 days have passed since the merger was approved by the shareholders of each merging company.

The Companies Law also provides that, subject to certain exceptions, an acquisition of shares in an Israeli public company must be made by means of a "special" tender offer if as a result of the acquisition (1) the purchaser would become a controlling shareholder if there is no controlling shareholder in the company or (2) the purchaser would become a holder of 45% or more of the voting rights in the company, unless there is already a holder of more than 45% of the voting rights in the company. These requirements do not apply if, in general, the acquisition (1) was made in a private placement that received shareholders' approval, subject to certain conditions, (2) was from a controlling shareholder in the company which resulted in the acquirer becoming a controlling shareholder in the company, or (3) was from a holder of more than 45% of the voting rights in the company which resulted in the acquirer becoming a holder of more than 45% of the voting rights in the company. A "special" tender offer must be extended to all shareholders. In general, a "special" tender offer may be consummated only if (1) at least 5% of the voting power attached to the company's outstanding shares will be acquired by the offeror and (2) the offer is accepted by a majority of the offerees who notified the company of their position in connection with such offer (excluding the offeror, controlling shareholders, holders of 25% or more of the voting rights in the company or anyone on their behalf, or any person having a personal interest in the acceptance of the tender offer). If a special tender offer is accepted, then the purchaser or any person or entity controlling it or under common control with the purchaser or such controlling person or entity may not make a subsequent tender offer for the purchase of

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shares of the target company and may not enter into a merger with the target company for a period of one year from the date of the offer, unless the purchaser or such person or entity undertook to effect such an offer or merger in the initial special tender offer.

If, as a result of an acquisition of shares, the acquirer will hold more than 90% of an Israeli company's outstanding shares or of certain class of shares, the acquisition must be made by means of a tender offer for all of the outstanding shares, or for all of the outstanding shares of such class, as applicable. In general, if less than 5% of the outstanding shares, or of applicable class, are not tendered in the tender offer and more than half of the offerees who have no personal interest in the offer tendered their shares, all the shares that the acquirer offered to purchase will be transferred to it by operation of law. However, a tender offer will also be accepted if the shareholders who do not accept the offer hold less than 2% of the issued and outstanding share capital of the company or of the applicable class of shares. Any shareholders that was an offeree in such tender offer, whether such shareholder accepted the tender offer or not, may request, by petition to an Israeli court, (i) appraisal rights in connection with a full tender offer, and (ii) that the fair value should be paid as determined by the court, for a period of six months following the acceptance thereof. However, the acquirer is entitled to stipulate, under certain conditions, that tendering shareholders will forfeit such appraisal rights.

Lastly, Israeli tax law treats some acquisitions, such as stock-for-stock exchanges between an Israeli company and a foreign company, less favorably than U.S. tax laws. For example, Israeli tax law may, under certain circumstances, subject a shareholder who exchanges his Ordinary Shares for shares in another corporation to taxation prior to the sale of the shares received in such stock-for-stock swap.

#### Changes in Our Capital
The general meeting may, by a simple majority vote of the shareholders attending the general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ increase our registered share capital by the creation of new shares from the existing class or a new class, as determined by the general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ cancel any registered share capital which have not been taken or agreed to be taken by any person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ consolidate and divide all or any of our share capital into shares of larger nominal value than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ subdivide our existing shares or any of them, into shares of smaller nominal value than is fixed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reduce our share capital and any fund reserved for capital redemption in any manner, and with and subject to any incident authorized, and consent required, by the Companies Law.

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### S HARES E LIGIBLE FOR F UTURE S ALE
Prior to this offering, no public market existed for our Ordinary Shares. Sales of substantial amounts of our Ordinary Shares following this offering, or the perception that these sales could occur, could adversely affect prevailing market prices of our Ordinary Shares and could impair our future ability to obtain capital, especially through an offering of equity securities. Assuming that the underwriters do not exercise in full their option to purchase additional Ordinary Shares with respect to this offering and assuming no exercise of options outstanding following this offering, we will have an aggregate of 5,503,228 Ordinary Shares outstanding upon the closing of this offering. Of these shares, the Ordinary Shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, unless purchased by "affiliates" (as that term is defined under Rule 144 of the Securities Act, or Rule 144), who may sell only the volume of shares described below and whose sales would be subject to additional restrictions described below.

The remaining Ordinary Shares will be held by our existing shareholders and will be deemed to be "restricted securities" under Rule 144. Subject to certain contractual restrictions, including the lock-up agreements described below, restricted securities may only be sold in the public market pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration under Rule 144, Rule 701 or Rule 904 under the Securities Act. These rules are summarized below. Sales of these shares in the public market after the restrictions under the lock-up agreements lapse, or the perception that those sales may occur, could cause the prevailing market price of our Ordinary Shares to decrease or to be lower than it might be in the absence of those sales or perceptions.

#### Eligibility of Restricted Shares for Sale in the Public Market
Approximately 3,353,228 of our Ordinary Shares will be eligible for resale pursuant to Rule 144 after 90 days following the pricing of this offering as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ with respect to non-affiliates of our company who will hold an aggregate of 1,932,768 Ordinary Shares upon the consummation of this offering, following the expiration of a non-affiliate's six-month holding period and subject to our compliance with the current public information requirements under Rule 144; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ with respect to affiliates of our company who will hold an aggregate of 1,420,460 Ordinary Shares upon the consummation of this offering, following the expiration of an affiliate's six-month holding period and subject to our compliance with the current public information requirements under Rule 144, and subject to the volume, manner of sale and other limitations under Rule 144 applicable to securities held by affiliates.

In each case, the shares will also be subject to the contractual restrictions arising under the lock-up agreements described below.

All of the Ordinary Shares sold in this offering will be eligible for immediate sale upon the closing of this offering. Certain of our existing shareholders, including entities affiliated with certain of our directors and beneficial owners of greater than 5% of our share capital, have indicated an interest in purchasing up to an aggregate of $ million of Ordinary Shares in this offering at the initial public offering price per share. However, because indications of interest are not binding agreements or commitments to purchase, the underwriters may determine to sell more, less or no shares in this offering to any of these shareholders, or any of these shareholders may determine to purchase more, less or no shares in this offering. The underwriters will receive the same underwriting discount on any shares purchased by these shareholders as they will on any other shares sold to the public in this offering.

#### Lock-Up Agreements
We, all of our directors and executive officers and holders of substantially all of our outstanding Ordinary Shares and our Ordinary Shares issuable upon the exercise of options and warrants will enter into lock-up

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agreements. Pursuant to such lock-up agreements, such persons have agreed, subject to certain exceptions, not to sell or otherwise dispose of Ordinary Shares or any securities convertible into or exchangeable for Ordinary Shares for a period of twelve (12) months from the closing of this offering, with respect to our directors and executive officers and for a period of six (6) months from the closing of this offering with respect to the Company and all other holders of our securities, without the prior written consent of Think Equity LLC., which may, in its sole discretion, at any time without prior notice, release all or any portion of the Ordinary Shares from the restrictions in any such agreement.

#### Rule 144

#### Shares Held for Six Months
In general, under Rule 144 as currently in effect, and subject to the terms of any lock-up agreement, commencing 90 days after the closing of this offering, a person (or persons whose shares are aggregated), including an affiliate, who has beneficially owned our Ordinary Shares for six months or more, including the holding period of any prior owner other than one of our affiliates (i.e., commencing when the shares were acquired from our company or from an affiliate of our company as restricted securities), is entitled to sell our shares, subject to the availability of current public information about us. In the case of an affiliate shareholder, the right to sell is also subject to the fulfillment of certain additional conditions, including manner of sale provisions and notice requirements, and to a volume limitation that limits the number of shares to be sold thereby, within any three-month period, to the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ 1% of the number of Ordinary Shares then outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the average weekly trading volume of our Ordinary Shares on the NYSE American the during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

The six month holding period of Rule 144 does not apply to sales of unrestricted securities. Accordingly, persons who hold unrestricted securities may sell them under the requirements of Rule 144 described above without regard to the six-month holding period, even if they were considered our affiliates at the time of the sale or at any time during the ninety days preceding such date.

#### Shares Held by Non-Affiliates for One Year
Under Rule 144 as currently in effect, a person (or persons whose shares are aggregated) who is not considered to have been one of our affiliates at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than one of our affiliates, is entitled to sell his, her or its shares under Rule 144 without complying with the provisions relating to the availability of current public information or with any other conditions under Rule 144. Therefore, unless subject to a lock-up agreement or otherwise restricted, such shares may be sold immediately upon the closing of this offering.

#### Rule 701
In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who received or purchased Ordinary Shares from us under our 2013 Plan or other written agreement before the closing of this offering is entitled to resell these shares.

The SEC has indicated that Rule 701 will apply to typical share options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of these options, including exercises after the closing of this offering. Securities issued in reliance on Rule 701 are restricted securities and, subject to the contractual restrictions described above (see "— Lock-Up Agreements" above), may be sold beginning 90 days after the closing of this offering in reliance on Rule 144 by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ persons other than affiliates, without restriction; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ affiliates, subject to the manner-of-sale, current public information and filing requirements of Rule 144, in each case, without compliance with the six-month holding period requirement of Rule 144.

#### Registration Rights
On September 5, 2024, we entered into an Investor Rights Agreement, or the IRA, with certain of our shareholders, holding in the aggregate 954,520 Ordinary Shares, pursuant to which the holders of registrable securities, or Registerable Securities, were granted certain registration rights, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ <u>Demand Registration Rights</u>. At any time beginning six months following the effective date of this offering, holders owning at least 30% of the outstanding Registrable Securities may request that the Company file a registration statement for resale of all or a portion of such securities. The Company must notify other holders of the request and use its best efforts to complete the registration as soon as practicable, subject to agreed limitations. If the initiating holders request an underwritten offering, participating holders must join the underwriting and enter into a customary underwriting agreement with underwriters selected by a majority of the initiating holders, subject to the Company's reasonable acceptance. If the underwriters recommend a reduction in shares for marketing reasons, securities are allocated among participating holders on a pro rata basis, subject to negotiated priority tiers among the converted preferred investors. The Company may delay a demand filing for up to 90 days, no more than once in any 12-month period, if its board of directors determines in good faith that the filing at such time would be seriously detrimental to the Company and its shareholders, as confirmed in an officer's certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ <u>Piggyback Registration Rights</u>. If the Company chooses to register any of its securities for public offering under the Securities Act (other than a registration on Form S-8 or a filing for a Rule 145 transaction), holders may request inclusion of their Registrable Securities within 20 days of receiving notice. The Company must use all reasonable efforts to include such securities, subject to underwriting conditions. The underwriters may reduce holder shares in their discretion, but may not reduce selling holder participation below 30% of total offering shares, unless the offering is the Company's initial public offering and no other non-Company shareholder shares are being included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ <u>Shelf / Form F-3 Rights</u>. Holders may request resale registration on Form F-3 (or a successor or equivalent shelf registration), provided the form is available and the proposed public resale value (net of underwriting discounts and commissions) is at least $3 million. The Company is not obligated to effect more than two such shelf/Form F-3 registrations for holders in any 12-month period and may defer such filings for board-certified detriment on terms substantially similar to demand deferral rights.

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### T AXATION
The following description is not intended to constitute a complete analysis of all tax consequences relating to the ownership or disposition of our Ordinary Shares and Warrants. You should consult your own tax advisor concerning the tax consequences of your particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign, including Israeli, or other taxing jurisdiction.

#### Israeli Tax Considerations and Government Programs
The following is a description of the material Israeli income tax consequences of the ownership of the Ordinary Shares. The following also contains a description of material relevant provisions of the current Israeli income tax consequences applicable to companies in Israel, with reference to its effect on us. This description does not include all aspects of Israeli tax law that may be relevant to a particular investor in light of his or her personal investment circumstances or to some types of investors subject to special treatment under Israeli tax law. Examples of such investors include traders in securities who are subject to special tax regimes not covered in this discussion. To the extent that the discussion is based on new tax legislation which has not been subject to judicial or administrative interpretation, there can be no assurance that the tax authorities will accept the views expressed in the discussion in question. The discussion is not intended, and should not be taken, as legal or professional tax advice and is not exhaustive of all possible tax considerations.

The following description is not intended to constitute a complete analysis of all tax consequences relating to the ownership or disposition of the Ordinary Shares. Shareholders should consult their own tax advisors concerning the tax consequences of their particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction.

#### General Corporate Tax Structure in Israel
Israeli companies are generally subject to corporate tax on their taxable income at the ordinary corporate tax rate (currently 23%). However, the effective tax rate payable by a company that derives income under the Investment Law (as discussed below) may be considerably lower. Capital gains derived by an Israeli resident company are generally subject to tax at the same rate as the corporate tax rate.

#### Tax Benefits for Research and Development
Israeli tax law allows, under certain conditions, a tax deduction for expenditures (including capital expenditures) related to scientific research and development for the year in which they are incurred. Expenditures are deemed related to scientific research and development projects if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the expenditures are approved by the relevant Israeli government ministry, which depends on the field of research;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the research and development must be for the promotion of the company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the research and development is carried out by or on behalf of the company seeking such tax deduction.

The amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. No deduction under these research and development deduction rules is allowed if such deduction is related to an expense invested in an asset depreciable under the general depreciation rules of the Israeli Income Tax Ordinance (New Version), 5721-1961 (the "Ordinance"). Expenditures not so approved are deductible in equal amounts over three years.

From time to time, we may apply to the Israel Innovation Authority for approval to allow a tax deduction for all research and development expenses during the year incurred. There can be no assurance that such application will be accepted.

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#### Law for the Encouragement of Industry (Taxes), 5729-1969
The Law for the Encouragement of Industry (Taxes), 5729-1969, which we refer to as the Industry Encouragement Law, provides several tax benefits for "Industrial Companies," which are defined as Israeli resident-companies which were incorporated in Israel, of which 90% or more of their income in any tax year, other than income from certain government loans, is derived from an "Industrial Enterprise" that it owns and located in Israel or in the "Area", in accordance with the definition under Section 3A of the Ordinance. An "Industrial Enterprise" is defined as an enterprise whose principal activity in a given tax year is industrial production. Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.

The following tax benefits, among others, are available to Industrial Companies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ amortization of the cost of purchased patents, rights to use a patent, and know-how, which were purchased in good faith and are used for the development or advancement of the Industrial Enterprise, over an eight-year period, commencing on the year in which such rights were first exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ under limited conditions, an election to file consolidated tax returns with controlled Israeli Industrial Companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ expenses related to a public offering are deductible in equal amounts over three years commencing with the year of the offering.

Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.

We believe that we qualify as an "Industrial Company" within the meaning of the Industry Encouragement Law. There can be no assurance that we will continue to qualify as an Industrial Company in the future or that the benefits described above will be available to us at all.

#### The New Technological Enterprise Incentives Regime — the 2017 Amendment
The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for "Technology Enterprises", as described below, and is in addition to the other existing tax benefits programs under the Investment Law.

The 2017 Amendment provides that a technology company satisfying certain conditions will qualify as a "Preferred Technology Enterprise" and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as "Preferred Technology Income," as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone "A." In addition, a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain "Benefitted Intangible Assets" (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017, for at least NIS 200 million, and the sale receives prior approval from the Israel Innovation Authority. It should be noted that the proportion of income that may be considered Preferred Technology Income and enjoy the tax benefits described above is calculated according to a nexus formula, which is based on the proportion of qualifying expenditures on intellectual property compared to overall expenditures.

The 2017 Amendment further provides that a Preferred Company with group consolidated revenues of at least NIS 10 billion will qualify as a "Special Preferred Technology Enterprise," and will enjoy a reduced corporate tax rate of 6% on "Preferred Technology Income" regardless of the company's geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 6% on capital gains derived from the sale of certain "Benefitted Intangible Assets" to a related foreign company if the Benefitted Intangible Assets were either developed by the Special Preferred Enterprise or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval from the

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Israel Innovation Authority. A Special Preferred Technology Enterprise that acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million will be eligible for these benefits for at least 10 years, subject to the receipt of certain approvals as specified in the Investment Law.

Dividends paid out of Preferred Technology Income, which are distributed by a Preferred Technology Enterprise or a Special Preferred Technology Enterprise are generally subject to tax at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). However, dividends distributed to an Israeli company are not subject to tax. However, if such dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company that holds solely or together with other foreign companies 90% or more of the Israeli company and other conditions are met, the tax rate will be 4%, or such lower rate as may be provided in an applicable tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate).

#### Taxation of Non-Israeli Shareholders

#### Capital Gains Tax
Israeli law generally imposes a capital gains tax on the sale of capital assets by a non-Israeli resident if those assets (i) are located in Israel, (ii) are shares or a right to shares in an Israeli resident corporation, or (iii) represent, directly or indirectly, rights to assets located in Israel, unless a tax treaty between Israel and the seller's country of residence provides otherwise. The Ordinance distinguishes between real gain and inflationary surplus. The inflationary surplus is the portion of the total capital gain equivalent to the increase of the relevant asset's purchase price attributable to an increase in the Israeli consumer price index, or, under certain circumstances, a foreign currency exchange rate, between the date of purchase and the date of sale. Inflationary surplus is currently not subject to tax in Israel. The real gain is the excess of the total capital gain over the inflationary surplus.

Generally, real capital gain realized by an individual on the sale of our Ordinary Shares will be taxed at the rate of 25%. However, such gain will be taxed at a rate of 30% if the individual claims a deduction for interest and linkage difference expenses in connection with the purchase and holding of securities, or if the individual is a "substantial shareholder" at the time of sale, exchange or other disposition or at any time during the preceding 12-month period. A "substantial shareholder" is generally a person who, alone or together with such person's relatives or another person who collaborates with such person on a permanent basis, holds, directly or indirectly, at least 10% of any of the "means of control" of the corporation. "Means of control" generally include the right to vote, receive profits, nominate a director or an executive officer, receive assets upon liquidation, or the power to direct the actions of someone who holds any of the aforesaid rights, regardless of the source of such right.

Real capital gain derived by corporations will generally be subject to tax at the prevailing corporate tax rate, which is currently 23%.

Notwithstanding the foregoing, a non-Israeli resident who derives capital gains from the sale of shares in an Israeli resident company that were purchased after the company was listed for trading on a stock exchange will be exempt from Israeli tax so long as the shares were not held through a permanent establishment that the non-resident maintains in Israel. However, a non-Israeli "body of persons" (as defined in the Ordinance, which includes corporate entities, partnerships and other entities) will not be entitled to the foregoing exemption if Israeli residents: (i) have, directly or indirectly, an interest of more than 25% of the means of control or more in such non-Israeli corporation or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly.

Additionally, a sale of securities by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty. For example, under the Convention Between the Government of the United States of America and the Government of the State of Israel with respect to Taxes on Income, as amended, or the United States-Israel Tax Treaty, the sale, exchange or other disposition of shares by a shareholder who is a United States resident (for purposes of the treaty) holding the shares as a capital asset

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and is entitled to claim the benefits afforded to such a resident by the U.S.-Israel Tax Treaty, or Treaty U.S. Resident, is generally exempt from Israeli capital gains tax unless: (i) the capital gain arising from such sale, exchange or disposition is attributed to real estate located in Israel; (ii) the capital gain arising from such sale, exchange or disposition is attributed to royalties; (iii) the capital gain arising from the such sale, exchange or disposition is attributed to a permanent establishment in Israel, under certain terms; (iv) such Treaty U.S. Resident holds, directly or indirectly, shares representing 10% or more of the voting capital during any part of the 12-month period preceding the disposition, subject to certain conditions; or (v) such Treaty U.S. Resident is an individual and was present in Israel for 183 days or more during the relevant taxable year.

In some instances where our shareholders may be liable for Israeli tax on the sale of their Ordinary Shares, the payment of the consideration may be subject to the withholding of Israeli tax at source. Shareholders may be required to demonstrate that they are exempt from tax on their capital gains in order to avoid withholding at source at the time of sale. Specifically, the Israel Tax Authority may require shareholders who are not liable for Israeli capital gains tax on such a sale to sign declarations on forms specified by the Israel Tax Authority, provide documents (including, for example, a certificate of residency) or obtain a specific exemption from the Israel Tax Authority to confirm their status as non-Israeli residents (and, in the absence of such declarations or exemptions, the Israel Tax Authority may require the purchaser of the shares to withhold tax at source).

A tax return must be filed, and an advance payment must be paid, by January 31 of each year for sales of securities traded on a stock exchange made within the last six months of the preceding year, and by July 31 of each year for the sales made in the first six months of that year. Capital gains must also be reported on the annual income tax return. If all taxes are duly withheld, a non-Israeli resident is generally exempt from the obligation to file tax returns in Israel with respect to such income, provided that (i) such income was not generated from business conducted in Israel by the non-Israeli resident, (ii) the non-Israeli resident has no other taxable sources of income in Israel with respect to which a tax return is required to be filed, and (iii) the non-Israeli resident is not obligated to pay Surtax (as described below).

#### Taxation on Receipt of Dividends
Non-Israeli residents are generally subject to Israeli income tax on the receipt of dividends paid on the Ordinary Shares at the rate of 25%. With respect to a person who is a "substantial shareholder" at the time of receiving the dividend or on any time during the preceding 12 months, the applicable tax rate is 30%. Such dividends are generally subject to Israeli withholding tax at a rate of 25% so long as the shares are registered with a nominee company (whether the recipient is a substantial shareholder or not). A "substantial shareholder" is generally a person who alone or together with such person's relative or another person who collaborates with such person on a permanent basis, holds, directly or indirectly, at least 10% of any of the "means of control" of the corporation. "Means of control" generally include the right to vote, receive profits, nominate a director or an executive officer, receive assets upon liquidation, or order someone who holds any of the aforesaid rights how to act, regardless of the source of such right. However, a reduced tax rate may be provided under an applicable tax treaty subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced withholding rate. For example, under the United States-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of the Ordinary Shares who is a Treaty U.S. Resident is 25%. However, generally, the maximum rate of withholding tax on dividends that are paid to a United States corporation holding 10% or more of the outstanding voting capital throughout the tax year in which the dividend is distributed as well as during the previous tax year, is 12.5%, provided that not more than 25% of the gross income for such preceding year consists of certain types of dividends and interest if a certificate for a reduced withholding tax rate is obtained in advance from the Israeli tax authority. If dividends are distributed from income that was subject to a reduced corporate tax rate under the Investments Law and the foregoing conditions are met, such dividends are subject to a withholding tax rate of 15% for a shareholder that is a United States corporation. The aforementioned rates under the United States-Israel Tax Treaty will not apply if the dividend income was derived through a permanent establishment of the U.S. resident in Israel.

Application for this reduced tax rate requires appropriate documentation presented to and specific instructions received from the Israel Tax Authority. We cannot assure you that we will designate the profits that we may distribute in a way that will reduce shareholders' tax liability.

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A non-Israeli resident who receives dividend income derived from or accrued in Israel from which the full amount of tax was withheld at source is generally exempt from the obligation to file tax returns in Israel with respect to such income, provided that (i) such income was not generated from business conducted in Israel by the taxpayer, and (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required to be filed.

#### Surtax
Individuals who are subject to income tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to (i) an additional surtax at a rate of 3% on annual income (including, but not limited to, income derived from dividends, interest and capital gains) exceeding a certain threshold (currently NIS 721,560 for years 2025 through 2027, which amount will be updated annually starting January 1, 2028, based on the change in the Israeli consumer price index), or the Threshold Amount; and (ii) an additional tax at a rate of 2% on annual "Capital Income" (including capital gains, dividends, and interest, other than business income, employment income or income from personal exertion) exceeding the Threshold Amount.

#### Estate and Gift Tax
Israeli law presently does not impose estate or gift taxes.

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### C ERTAIN M ATERIAL U.S. F EDERAL I NCOME T AX C ONSIDERATIONS
THE FOLLOWING SUMMARY IS INCLUDED HEREIN FOR GENERAL INFORMATION AND IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSIDERED TO BE, LEGAL OR TAX ADVICE. EACH U.S. HOLDER SHOULD CONSULT WITH HIS OR HER OWN TAX ADVISOR AS TO THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND SALE OF ORDINARY SHARES, INCLUDING THE EFFECTS OF APPLICABLE STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND POSSIBLE CHANGES IN THE TAX LAWS.

Subject to the limitations described in the next two paragraphs, the following discussion summarizes certain material U.S. federal income tax consequences to a "U.S. Holder" arising from the purchase, ownership and sale of the Ordinary Shares being offered by this prospectus**,** which we collectively refer to as "Equity Securities". For this purpose, a "U.S. Holder" is a holder of Equity Securities that is: (1) an individual citizen or resident of the United States, including an alien individual who is a lawful permanent resident of the United States or meets the substantial presence residency test under U.S. federal income tax laws; (2) a corporation (or entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States or the District of Columbia or any political subdivision thereof; (3) an estate, the income of which is includable in gross income for U.S. federal income tax purposes regardless of its source; (4) a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have authority to control all substantial decisions of the trust; or (5) a trust that has a valid election in effect to be treated as a U.S. person to the extent provided in U.S. Treasury regulations.

This summary does not purport to be a comprehensive description of all of the U.S. federal income tax considerations that may be relevant to a decision to purchase our Equity Securities. This summary generally considers only U.S. Holders that will own our Equity Securities as capital assets. This summary does not consider the U.S. federal tax consequences to a person that is not a U.S. Holder, nor does it describe the rules applicable to determine a taxpayer's status as a U.S. Holder. This summary is based on the provisions of the Internal Revenue Code of 1986, as amended, or the Code, final, temporary and proposed U.S. Treasury regulations promulgated thereunder, administrative and judicial interpretations thereof, and the United States-Israel Tax Treaty, all as in effect as of the date hereof and all of which are subject to change, possibly on a retroactive basis, and all of which are open to differing interpretations. This summary does not discuss the potential effects, whether adverse or beneficial, of any proposed legislation that, if enacted, could be applied on a retroactive basis. We will not seek a ruling from the Internal Revenue Service, or the IRS, with regard to the U.S. federal income tax treatment of an investment in our Equity Securities by U.S. Holders and, therefore, can provide no assurances that the IRS will agree with the conclusions set forth below.

This discussion does not address all of the aspects of U.S. federal income taxation that may be relevant to a particular U.S. Holder based on such U.S. Holder's particular circumstances and in particular does not discuss any estate, gift, generation-skipping transfer, state, local, excise or non-U.S. tax considerations. In addition, this discussion does not address the U.S. federal income tax treatment of a U.S. Holder who is: (1) a bank, life insurance company, regulated investment company, or other financial institution or "financial services entity;" (2) a broker or dealer in securities or foreign currency; (3) a person who acquired our Equity Securities in connection with employment or other performance of services; (4) a U.S. Holder that is subject to the U.S. alternative minimum tax; (5) a U.S. Holder that holds our Equity Securities as a hedge or as part of a hedging, straddle, conversion or constructive sale transaction or other risk-reduction transaction for U.S. federal income tax purposes; (6) a retirement plan or tax-exempt entity; (7) real estate investment trusts or grantor trusts; (8) a U.S. Holder that expatriates out of the United States or a former long-term resident of the United States; or (9) a person having a functional currency other than the U.S. dollar. This discussion does not address the U.S. federal income tax treatment of a U.S. Holder that owns, directly, indirectly or constructively, at any time, Ordinary Shares representing 10% or more of the stock (by vote or value) of our company (including by treating U.S. Holders of our warrants or other options to acquire our Ordinary Shares as owning such Ordinary Shares).

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If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds our Equity Securities, the tax treatment of such partnership and each person or entity treated as a partner thereof will generally depend upon the status and activities of the partnership and such partner. A U.S. Holder that is treated as a partnership for U.S. federal income tax purposes should consult its own tax advisor regarding the U.S. federal income tax considerations applicable to it and its partners of the purchase, ownership and disposition of our Equity Securities.

 **EACH PROSPECTIVE INVESTOR IS ADVISED TO CONSULT HIS OR HER OWN TAX ADVISER FOR THE SPECIFIC TAX CONSEQUENCES TO THAT INVESTOR OF PURCHASING, HOLDING OR DISPOSING OF OUR EQUITY SECURITIES, INCLUDING THE EFFECTS OF APPLICABLE STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND POSSIBLE CHANGES IN THE TAX LAWS.** 

#### Exercise and Expiration of Warrants
Subject to the discussion under "— Passive Foreign Investment Companies" below, a U.S. Holder generally will not recognize gain or loss for U.S. federal income tax purposes upon the exercise of warrants into Ordinary Shares. The U.S. federal income tax treatment of a cashless exercise of warrants into our Ordinary Shares is unclear. U.S. Holders should consult their tax advisors regarding the U.S. federal income tax consequences of a cashless exercise of warrants.

The expiration of a Warrant will be treated as if the U.S. Holder sold or exchanged the Warrant and recognized a capital loss equal to the U.S. Holder's tax basis in the Warrant.

#### Taxation of Dividends Paid on Ordinary Shares
We do not intend to pay dividends in the foreseeable future. In the event that we do pay dividends, and subject to the discussion under the heading "Passive Foreign Investment Companies" below and the discussion of "qualified dividend income" below, a U.S. Holder, other than certain U.S. Holders that are U.S. corporations, will be required to include in gross income as ordinary income the amount of any distribution paid on the Ordinary Shares (including the amount of any Israeli tax withheld on the date of the distribution), to the extent that such distribution does not exceed our current and accumulated earnings and profits, as determined for U.S. federal income tax purposes. The amount of a distribution that exceeds our earnings and profits will be treated first as a non-taxable return of capital, reducing the U.S. Holder's tax basis for the Ordinary Shares to the extent thereof, and then capital gain. We do not expect to maintain calculations of our earnings and profits under U.S. federal income tax principles and, therefore, U.S. Holders should expect that the entire amount of any distribution generally will be reported as dividend income.

In general, preferential tax rates for "qualified dividend income" and long-term capital gains are applicable for U.S. Holders that are individuals, estates or trusts. For this purpose, "qualified dividend income" means, inter alia, dividends received from a "qualified foreign corporation." A "qualified foreign corporation" is a corporation that is entitled to the benefits of a comprehensive tax treaty with the United States that includes an exchange of information program. The IRS has stated that the United States-Israel Tax Treaty satisfies this requirement and we believe we are eligible for the benefits of that treaty. We generally will be treated as a qualified foreign corporation if we are not a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year (see discussion below), and (i) we are eligible for benefits under the United States-Israel income tax treaty or (ii) our Ordinary Shares are listed on an established securities market in the United States (which includes the NYSE American).

In addition, our dividends will be qualified dividend income if our Ordinary Shares are readily tradable on or another established securities market in the United States. Dividends will not qualify for the preferential rate if we are treated, in the year the dividend is paid or in the prior year, as a PFIC, as described below under "Passive Foreign Investment Companies." A U.S. Holder will not be entitled to the preferential rate: (1) if the U.S. Holder has not held our Ordinary Shares for at least 61 days of the 121 day period beginning on

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the date which is 60 days before the ex-dividend date, or (2) to the extent the U.S. Holder is under an obligation to make related payments with respect to positions in substantially similar or related property. Any days during which the U.S. Holder has diminished its risk of loss on our Ordinary Shares are not counted towards meeting the 61-day holding period. Finally, U.S. Holders who elect to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code will not be eligible for the preferential rate of taxation.

Dividends paid with respect to our Ordinary Shares will not be eligible for the "dividends-received" deduction generally allowed to corporate U.S. Holders with respect to dividends received from U.S. corporations.

The amount of a distribution with respect to our Ordinary Shares will be measured by the amount of the fair market value of any property distributed, and for U.S. federal income tax purposes, the amount of any Israeli taxes withheld therefrom. Cash distributions paid by us in NIS, if any, will be included in the income of U.S. Holders at a U.S. dollar amount based upon the spot rate of exchange in effect on the date the dividend is includible in the income of the U.S. Holder, and U.S. Holders will have a tax basis in such NIS for U.S. federal income tax purposes equal to such U.S. dollar value. If the U.S. Holder subsequently converts the NIS into U.S. dollars or otherwise disposes of them, any subsequent gain or loss in respect of such NIS arising from exchange rate fluctuations will be U.S. source ordinary exchange gain or loss.

Subject to certain significant conditions and limitations, any Israeli taxes paid on or withheld from distributions from us and not refundable to a U.S. Holder may be credited against the U.S. Holder's U.S. federal income tax liability or, alternatively, may be deducted from the U.S. Holder's taxable income. However, as a result of recent changes to the U.S. foreign tax credit rules, a withholding tax generally may need to satisfy certain additional requirements in order to be considered a creditable tax for a U.S. Holder. We have not determined whether these requirements have been met and, accordingly, no assurance can be given that any withholding tax on dividends paid by us will be creditable. The election to deduct, rather than credit, foreign taxes, is made on a year-by-year basis and applies to all foreign taxes paid by a U.S. Holder or withheld from a U.S. Holder that year. Dividends paid with respect to our Ordinary Shares generally will be treated as foreign source income, which may be relevant in calculating the U.S. Holder's foreign tax credit limitation. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that we distribute generally should constitute "passive category income," or, in the case of certain U.S. Holders, "general category income." The rules relating to the determination of the foreign tax credit are complex, and U.S. Holders should consult their tax advisor to determine whether and to what extent such U.S. Holder will be entitled to this credit.

#### Taxation of the Sale, Exchange or other Disposition of Equity Securities
Except as provided under the PFIC rules described below under "Passive Foreign Investment Companies," upon the sale, exchange or other disposition of our Equity Securities, a U.S. Holder will recognize capital gain or loss in an amount equal to the difference between such U.S. Holder's tax basis for the Equity Securities, determined in U.S. dollars, and the U.S. dollar value of the amount realized on the disposition (or its U.S. dollar equivalent determined by reference to the spot rate of exchange on the date of disposition, if the amount realized is denominated in a foreign currency). The gain or loss realized on the sale, exchange or other disposition of Equity Securities will be long-term capital gain or loss if the U.S. Holder has a holding period of more than one year at the time of the disposition. Individuals who recognize long-term capital gains may be taxed on such gains at reduced rates of tax. The deduction of capital losses is subject to various limitations. U.S. Holders should consult their own tax advisors regarding the U.S. federal income tax consequences of receiving currency other than U.S. dollars upon the disposition of our Equity Securities.

#### Passive Foreign Investment Companies
Generally, a non-U.S. corporation will be a PFIC for U.S. federal income tax purposes in any taxable year in which either (i) 75% or more of its gross income for such year consists of certain types of "passive" income or (ii) 50% or more of the average fair market value of its assets during such year (based on quarterly valuations) produce or are held for the production of passive income. Passive income for this purpose

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generally includes dividends, interest, rents, royalties, annuities, income from certain commodities transactions and from notional principal contracts, and the excess of gains over losses from the disposition of assets that produce passive income. Passive income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. Assets that produce or are held for the production of passive income may include cash, even if held as working capital or raised in a public offering, as well as marketable securities, and other assets that may produce passive income. In determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.

A foreign corporation's PFIC status is an annual determination that is based on tests that are factual in nature, and our PFIC status for any year will depend on the composition of our income, fair market value of our assets, and our activities for such year. Based on the projected composition of our income and valuation of our assets, we do not believe that we were a PFIC for 2025, and do not expect to be a PFIC for 2026 and in the future, although there can be no assurance in this regard. Because PFIC status is based on our income, assets and activities for the entire taxable year, and our market capitalization, it is not possible to determine whether we will be characterized as a PFIC for the December 31, 2026 taxable year until after the close of the taxable year.

If we were a PFIC for any taxable year during which a U.S. Holder held our Equity Securities, then unless an election has been made by a U.S. holder to be taxed under one of the alternative regimes discussed below, gain recognized by a U.S. Holder on a sale or other disposition (including certain pledges) of our Equity Securities would be allocated ratably over the U.S. Holder's holding period for such Equity Securities. The amounts allocated to the taxable year of the sale or other disposition and to any year before we became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge would be imposed on the amount allocated to that taxable year. Similar rules would apply to any distribution with respect to our Ordinary Shares in excess of 125% of the average of the annual distributions received by a U.S. Holder during the preceding three years or such U.S. Holder's holding period, whichever is shorter. In addition, non-corporate U.S. Holders will not be eligible for reduced rates of taxation on any dividends received from us if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year.

If we are treated as a PFIC for any taxable year during the holding period of a non-electing U.S. Holder (i.e., a U.S. Holder that does not elect to be taxed under one of the alternative regimes discussed below), we will continue to be treated as a PFIC for all succeeding years during which such non-electing U.S. Holder is treated as a direct or indirect holder even if we are not a PFIC for such years. A U.S. Holder is encouraged to consult its tax advisor with respect to any available elections that may be applicable in such a situation, including the "deemed sale" election of Section 1298(b)(1) of the Code.

Notwithstanding the default PFIC rules described in the preceding paragraphs, certain elections may be available that would result in alternative tax consequences; i.e., the "qualified electing fund" or "QEF" election and the "mark to market" election. If a U.S. Holder makes a timely and valid mark-to-market election, the U.S. Holder generally will recognize as ordinary income any excess of the fair market value of our Ordinary Shares at the end of each taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis of our Ordinary Shares over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). The U.S. Holder's tax basis in our Ordinary Shares will be adjusted to reflect the income or loss resulting from the mark-to-market election. Any gain recognized on the sale or other disposition of Ordinary Shares in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election and any loss in excess of such amount will be treated as capital loss). The mark-to-market election is available only if we are a PFIC and our Ordinary Shares are "regularly traded" on a "qualified exchange" within the meaning of applicable U.S. Treasury regulations. Our Ordinary Shares will be treated as "regularly traded" in any calendar year in which more than a de minimis quantity of our Ordinary Shares are traded on a qualified exchange on at least 15 days during each calendar quarter. Although the IRS has not published any authority identifying specific exchanges that may constitute

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"qualified exchanges," U.S. Treasury regulations provide that a qualified exchange is (i) a U.S. securities exchange that is registered with the Securities and Exchange Commission, (ii) the U.S. market system established pursuant to Section 11A of the Securities and Exchange Act of 1934, or (iii) a non-U.S. securities exchange that is properly regulated and meets certain trading, listing, financial disclosure and other requirements. The NYSE American is a qualified exchange for this purpose, but there can be no assurance that the trading in our Ordinary Shares will be sufficiently regular to qualify our Ordinary Shares as marketable stock. A mark-to-market election will not apply to Ordinary Shares held by a U.S. Holder for any taxable year during which we are not a PFIC, but will remain in effect with respect to any subsequent taxable year in which we become a PFIC unless our Ordinary Shares are no longer regularly traded on a qualified exchange or the IRS consents to the revocation of the election. A mark-to-market election will not apply to any lower-tier PFIC (as defined below). Each U.S. Holder is encouraged to consult its own tax advisor with respect to the availability and tax consequences of a mark-to-market election with respect to our Ordinary Shares.

Another way in which certain of the adverse consequences of PFIC status can be mitigated is for a U.S. Holder to make a QEF election. Generally, a shareholder making the QEF election is required for each taxable year to include in income a pro rata share of our ordinary earnings and net capital gain of the QEF, subject to a separate election to defer payment of taxes, which deferral is subject to an interest charge. An election to treat us as a QEF will not be available if we do not provide the information necessary to make such an election. We are not obligated and do not currently intend to provide the information necessary to make a QEF election and thus it is not expected that a QEF election will be available for U.S. Holders of our Ordinary Shares if we were a PFIC in any prior year, the current year or any future year.

We may invest in the equity of foreign corporations that are PFICs or may own subsidiaries that are PFICs (any such entity, a "lower-tier PFIC"). If we are classified as a PFIC, under attribution rules, U.S. Holders will be subject to the PFIC rules with respect to their indirect ownership interests in such lower-tier PFICs, such that a disposition by us of the shares of the lower-tier PFIC or receipt by us of a distribution from the lower-tier PFIC generally will be treated as a deemed disposition of such shares or the deemed receipt of such distribution by the U.S. Holder, subject to taxation under the PFIC rules even though the U.S. Holder does not receive any proceeds from those dispositions or distributions. There can be no assurance that a U.S. Holder will be able to make a QEF election with respect to any lower-tier PFICs in which we invest. Each U.S. Holder is encouraged to consult its own tax advisor with respect to tax consequences of an investment by us in a lower-tier PFIC.

U.S. Holders should consult their tax advisors to determine under what circumstances these elections would be available and, if available, what the consequences of the alternative treatments would be in their particular circumstances.

The application of the PFIC rules to U.S. Holders of Warrants is unclear. Section 1298(a)(4) of the Code provides that, to the extent provided in U.S. Treasury regulations, any person who has an option to acquire stock in a PFIC shall be considered to own such stock in the PFIC for purposes of certain PFIC rules. Proposed Treasury regulations under Section 1298(a)(4) of the Code, which were promulgated with a retroactive effective date, generally treat an "option" (which would include a Warrant) to acquire the stock of a PFIC as stock of the PFIC. However, no final U.S. Treasury regulations are currently in effect under Section 1298(a)(4) of the Code. Therefore, it is possible that the proposed Treasury regulations if finalized in their current form would apply to cause gain recognized on the taxable disposition of Warrants to be subject to the excess distribution regime discussed above. Additionally, final U.S. Treasury regulations issued under the PFIC rules provide that the QEF election does not apply to options and no mark-to-market election is currently available with respect to options.

If a U.S. Holder holds our Equity Securities in any year in which we are treated as a PFIC, the U.S. Holder will be required to file IRS Form 8621 and may be subject to certain other information reporting requirements.

The U.S. federal income tax rules relating to PFICs are complex. U.S. Holders are urged to consult their own tax advisors with respect to the consequences to them of an investment in a PFIC, any elections available

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with respect to our Equity Securities and the IRS information reporting obligations with respect to the purchase, ownership, and disposition of our Equity Securities in the event we are determined to be a PFIC.

#### Tax on Net Investment Income
U.S. Holders who are individuals, estates or trusts will generally be required to pay a 3.8% Medicare tax on their net investment income (including dividends on and gains from the sale or other disposition of our Equity Securities), or in the case of estates and trusts on their net investment income that is not distributed to beneficiaries of the estate or trust. In each case, the 3.8% Medicare tax applies only to the extent the U.S. Holder's total adjusted income exceeds applicable thresholds.

#### Information Reporting and Withholding
A U.S. Holder may be subject to backup withholding at a rate of 24% with respect to cash dividends and proceeds from a disposition of our Equity Securities. In general, backup withholding will apply only if a U.S. Holder fails to comply with specified identification procedures. Backup withholding will not apply with respect to payments made to designated exempt recipients, such as corporations and tax-exempt organizations. Backup withholding is not an additional tax and may be claimed as a credit against the U.S. federal income tax liability of a U.S. Holder, provided that the required information is timely furnished to the IRS.

Certain U.S. Holders with interests in "specified foreign financial assets" (including, among other assets, our Equity Securities, unless such Equity Securities are held on such U.S. Holder's behalf through a financial institution) may be required to file an information report with the IRS if the aggregate value of all such assets exceeds $50,000 on the last day of the taxable year or $75,000 at any time during the taxable year (or such higher dollar amount as may be prescribed by applicable IRS guidance). You should consult your own tax advisor as to the possible obligation to file such information report.

Certain U.S. Holders will be required to file an IRS Form 926 (Return by a U.S. Transferor of Property to a Foreign Corporation) to report a transfer of cash or other property to us. Substantial penalties may be imposed on a U.S. Holder that fails to comply with this reporting requirement. Each U.S. Holder is urged to consult with its own tax advisor regarding this reporting obligation.

 **THE DISCUSSION ABOVE IS A GENERAL SUMMARY AND IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSEQUENCES RELATING TO THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR EQUITY SECURITIES. IT DOES NOT COVER ALL TAX MATTERS THAT MAY BE OF IMPORTANCE TO A PROSPECTIVE INVESTOR. EACH PROSPECTIVE INVESTOR IS URGED TO CONSULT ITS OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT RELATING TO THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR EQUITY SECURITIES IN LIGHT OF THE INVESTOR'S OWN CIRCUMSTANCES.** 

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### U NDERWRITING
ThinkEquity LLC is acting as the representative of the several underwriters (the "Representative"). On , 2026, we entered into an underwriting agreement with the Representative, or the Underwriting Agreement. Subject to the terms and conditions of the Underwriting Agreement, we have agreed to sell, and each underwriter named below has severally agreed to purchase, the number of Ordinary Shares listed next to each underwriter's name in the following table, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus.

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| | |
|:---|:---|
| **Underwriters**  | **Number of <br> Ordinary Shares**  |
| ThinkEquity LLC  |  |
| Total  |  |

---

The underwriters have committed to purchase all of the Ordinary Shares offered by us in this offering other than those covered by the over-allotment option described below. The obligations of the underwriter may be terminated upon the occurrence of certain events specified in the Underwriting Agreement. Furthermore, pursuant to the Underwriting Agreement, the underwriters' obligations are subject to customary conditions, representations, and warranties, such as receipt by the underwriters of officers' certificates and legal opinions.

The underwriters are offering Ordinary Shares subject to prior sale when, as, and if issued to and accepted by them, subject to approval of legal matters by their counsel and other conditions. The underwriters reserve the right to withdraw, cancel, or modify offers to the public and to reject orders in whole or in part.

The underwriters propose to offer the Ordinary Shares to the public at the public offering price set forth on the cover of the prospectus. After Ordinary Shares are released for sale to the public, the underwriters may from time to time change the offering price and other selling terms.

#### Over-Allotment Option
We have granted to the Representative an option, exercisable for 45 days after the closing of the offering, to purchase up to additional Ordinary Shares (representing 15.0% of the Ordinary Shares sold in this offering) at the initial public offering price, less the underwriting discounts and commissions. The Representative may exercise the option solely for the purpose of covering over-allotments, if any, in connection with this offering. To the extent that the option is exercised, each underwriter must purchase additional shares of our Ordinary Shares in an amount that is approximately proportionate to that underwriter's initial purchase commitment (set forth in the table above). Any shares of our Ordinary Shares issued or sold under the option will be issued and sold on the same terms and conditions as the other shares of our Ordinary Shares that are the subject of this offering. If this option is exercised in full, the total offering price to the public will be $ million and the total net proceeds to us, before expenses, will be $ million.

#### Discounts and Commissions
The underwriters have advised that the underwriters propose to offer the Ordinary Shares to the public at the public offering price per share set forth on the cover page of this prospectus. The underwriters may offer the Ordinary Shares to securities dealers at that price less a concession of not more than $ per share, of which up to may be re-allowed to other dealers.

The following table summarizes the public offering price, underwriting discounts and commissions, and proceeds to us before expenses, assuming both no exercise and full exercise by the Representative of the over-allotment option.

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| | | | |
|:---|:---|:---|:---|
| | | **Total**  | **Total**  |
| | **Per Share**  | **Without Over-Allotment**  | **With Over-Allotment**  |
| Public offering price  |  | $— |  |
| Underwriting discount (7.0%)<sup>(1)</sup>  |  | $— |  |
| Proceeds, before expenses, to us  |  | $— |  |

---

<sup>1)</sup>

We have agreed to pay a non-accountable expense allowance to the Representative equal to 1.0% of the gross proceeds received in this offering (excluding proceeds received from exercise of the Representative's over-allotment option) which is not included in the underwriting discounts and commission.

We have paid an expense deposit of $50,000 to the Representative, which will be applied against the Representative's actual out-of-pocket accountable expenses that are payable by us in connection with this offering and such expense deposit shall be reimbursed to the Company to the extent any portion thereof is not actually incurred in compliance with FINRA Rule 5110(g)(4)(A). We have agreed to reimburse the Representative for the fees and expenses of its legal counsel in connection with the offering in an amount not to exceed $125,000, the fees and expenses related to the use of Ipreo book building, prospectus tracking and compliance software for the offering in the amount of $29,500, up to $15,000 for background checks of our officers and directors, the costs associated with bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones in an amount not to exceed $3,000, data services and communications expenses up to $10,000, the actual accountable "road show" expenses up to $10,000 and the costs of market making and trading and clearing firm settlement expenses up to $30,000; provided however that the aggregate accountable expenses reimbursement will not exceed $250,000.

We expect that the expenses of this offering payable by us, not including underwriting discounts and commissions, will be approximately $1.4 million.

#### Representative's Warrants
We have agreed to issue to the Representative, upon the consummation of this offering, warrants to purchase up to an aggregate Ordinary Shares (representing 5.0% of the Ordinary Shares sold in this offering, including any Ordinary Shares sold upon exercise of the Representative's over-allotment option), or the Representative's Warrants. The Representative's Warrants are exercisable at a per share price equal to $(representing 125.0% of the public offering price per share in this offering). The Representative's Warrants are exercisable at any time and from time to time, in whole or in part, during the four and one-half (4.5) year period commencing 180 days from the commencement of sales of the securities in this offering. The Representatives Warrants will provide for registration rights (including a one-time demand registration right and unlimited piggyback rights) and customary anti-dilution provisions (for stock dividends and splits and recapitalizations) consistent with FINRA Rule 5110, and further, the number of shares underlying the Representative's Warrants shall be reduced if necessary to comply with FINRA rules or regulations.

The Representative's Warrants are deemed underwriter compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to FINRA Rule 5110(e)(1)(A). The Representative (or permitted assignees under Rule 5110(e)(1)(A)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from commencement of sales in this offering. In addition, the Representative's Warrants provide for registration rights upon request, in certain cases. The one-time demand registration right provided will not be greater than five years from the commencement of sales of this offering in compliance with FINRA Rule 5110(g)(8)(C). The piggyback registration right provided will not be greater than seven years from the commencement of sales of this offering in compliance with FINRA Rule 5110(g)(8)(D). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the Representative's Warrants other than underwriting commissions incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the Representative's Warrants

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may be adjusted in certain circumstances including in the event of a stock dividend or our recapitalization, reorganization, merger, or consolidation. However, neither the Representative Warrant exercise price, nor the number of Ordinary Shares underlying such warrants, will be adjusted for issuances of Ordinary Shares by us at a price below the exercise price of the Representative's Warrants.

#### Discretionary Accounts
The underwriters do not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

#### Lock-Up Agreements
Pursuant to certain "lock-up" agreements, we, our executive officers and directors and substantially all of the current holders of our Ordinary Shares or securities convertible into Ordinary Shares, will agree, for a period of twelve (12) months from the closing of this offering, with respect to our directors and executive officers and for a period of six (6) months from the closing of this offering with respect to the Company and all other holders of our securities, not to (a) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of our capital stock or any securities convertible into or exercisable or exchangeable for shares of our capital stock; (b) file or cause to be filed any registration statement with the Commission relating to the offering of any shares of our capital stock or any securities convertible into or exercisable or exchangeable for shares of our capital stock; (c) complete any offering of our debt securities, other than entering into a line of credit with a traditional bank or (d) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our capital stock, whether any such transaction described in clause (a), (b), (c) or (d) above is to be settled by delivery of shares of our capital stock or such other securities, in cash or otherwise. We agree to file a customary universal shelf registration statement within 30 days of the earlier of (i) the expiration of the restricted period described above and (ii) the date of its initial eligibility to do so. Additionally, we agree that for a period of 24 months after the offering we will not directly or indirectly offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of shares of our capital stock or any securities convertible into or exercisable or exchangeable for shares of our capital stock in any "at-the-market", continuous equity or variable rate transaction, without the prior written consent of the Representative.

#### Right of First Refusal
We will grant the Representative a right of first refusal, for a period of 18 months from the closing of the offering, to act as sole investment banker, sole book-runner and/or sole placement agent, at the Representative's sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such 18-month period, for us, or any successor to or any subsidiary of us, on terms customary for the Representative. The Representative will have the sole right to determine whether any other broker-dealer shall have the right to participate in any such offering and the economic terms of any such participation.

#### Pricing of the Offering
Prior to this offering, there was no established public market for our Ordinary Shares. The public offering price will be negotiated between us and the underwriters. In determining the price, we will consider our history and prospects, our business potential and earnings prospects, an assessment of our management, general securities market conditions at the time of the offering, and such other factors that we deem relevant.

An active trading market for our Ordinary Shares may not develop. It is also possible that the Ordinary Shares will not trade in the public market or above the initial public offering price following the closing of this offering.

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#### Indemnification
We have agreed to indemnify the underwriters and their affiliates, stockholders, directors, officers, employees, members and controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to this engagement letter, undertaken in good faith.

#### Electronic Offer, Sale and Distribution of Shares
This prospectus in electronic format may be made available on websites or through other online services maintained by one or more of the underwriters, or by their affiliates. Other than this prospectus in electronic format, the information on any underwriter's website and any information contained in any other website maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

#### Offer Restrictions Outside of the United States
Other than in the United States, no action has been taken that would permit a public offering of our Ordinary Shares in any jurisdiction where action for the purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that country or jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

#### Australia
This prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.

#### Canada
The Ordinary Shares may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation,

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provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

#### China
The information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic institutional investors."

#### European Economic Area
In relation to each Member State of the European Economic Area (each, a "Relevant State"), no securities have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that the shares may be offered to the public in that Relevant State at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)

to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)

to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)

in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of the shares shall require us or any of the representatives to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

#### France
This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code Monétaire et Financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des marchés financiers, or AMF. The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D.744-1, D.754-1 ;and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors

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(cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-4, D.744-1, D.754-1; and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

#### Israel
The securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), nor have such securities been registered for sale in Israel. The Ordinary Shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection with the offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be made effective only in compliance with the Israeli securities laws and regulations.

#### Italy
The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Società e la Borsa, or "CONSOB") pursuant to the Italian securities legislation and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998, or Decree No. 58, other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ to Italian qualified investors, as defined in Article 100 of Decree no.58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999, or Regulation no. 1197l as amended, or Qualified Investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.

Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

#### Japan
The securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended, or the FIEL, pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article 2, paragraph 3 of the FIEL and the

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regulations promulgated thereunder). Accordingly, the securities may not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to that effect.

#### Portugal
This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissăo do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

#### Sweden
This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

#### Switzerland
The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority (FINMA).

This document is personal to the recipient only and not for general circulation in Switzerland.

#### Hong Kong
Neither the information in this document nor any other document relating to the offer has been delivered for registration to the Registrar of Companies in Hong Kong, and its contents have not been reviewed or approved by any regulatory authority in Hong Kong, nor have we been authorized by the Securities and Futures Commission in Hong Kong. This document does not constitute an offer or invitation to the public in Hong Kong to acquire securities. Accordingly, unless permitted by the securities laws of Hong Kong, no person may issue or have in its possession for the purpose of issue, this document or any advertisement, invitation or document relating to the securities, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong other

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than in relation to securities which are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" (as such term is defined in the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong), or SFO, and the subsidiary legislation made thereunder) or in circumstances which do not result in this document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance of Hong Kong (Cap. 32 of the Laws of Hong Kong), or the CO, or which do not constitute an offer or an invitation to the public for the purposes of the SFO or the CO. The offer of the securities is personal to the person to whom this document has been delivered by or on behalf of our company, and a subscription for securities will only be accepted from such person. No person to whom a copy of this document is issued may issue, circulate or distribute this document in Hong Kong or make or give a copy of this document to any other person. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. No document may be distributed, published or reproduced (in whole or in part), disclosed by or to any other person in Hong Kong or to any person to whom the offer of sale of the securities would be a breach of the CO or SFO.

#### United Kingdom
The securities are not intended to be offered, sold, distributed or otherwise made available to and should not be offered, sold, distributed or otherwise made available to any retail investor in the *United Kingdom* ("UK"). For these purposes, a retail investor means a person who is either one (or both) of the following: (i) not a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA"); or (ii) not a qualified investor as defined in paragraph 15 of Schedule 1 to the Public Offers and Admissions to Trading Regulations 2024. Consequently no disclosure document required by the FCA Product Disclosure Sourcebook ("DISC") for offering, selling or distributing the shares or otherwise making them available to retail investors in the UK has been prepared and therefore offering, selling or distributing the shares or otherwise making them available to any retail investor in the UK may be unlawful under the DISC and the Consumer Composite Investments (Designated Activities) Regulations 2024.

#### Stabilization

Over-allotment transactions involve sales by the underwriters of shares in excess of the number of shares that the underwriters are obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of shares over-allotted by the underwriters is not greater than the number of shares that the underwriters purchase in the over-allotment option. In a naked short position, the number of shares involved is greater than the number of shares that the underwriters purchase in the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or purchasing shares in the open market.

Syndicate covering transactions involve purchases of shares in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of shares to close out the short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared with the price at which they may purchase shares through exercise of the over-allotment option. If the underwriters sell more shares than could be covered by exercise of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there could be downward pressure on the price of the Ordinary Shares in the open market that could adversely affect investors who purchase in the offering.

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Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when the Ordinary Shares originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Ordinary Shares or preventing or retarding a decline in the market price of our Ordinary Shares. As a result, the price of our Ordinary Shares in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our Ordinary Shares. These transactions may be affected in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

#### Other Relationships
The underwriters and their affiliates may in the future provide various advisory, investment and commercial banking and other services for us in the ordinary course of business, for which they may receive customary fees and commissions. However, we have not yet had, and have no present arrangements with the underwriters for any further services.

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### E XPENSES
Set forth below is an itemization of the total expenses, excluding underwriting discounts, expected to be incurred in connection with the offer and sale of the securities offered by us. With the exception of the SEC registration fee and the FINRA filing fee, all amounts are estimates:

---

| | |
|:---|:---|
| SEC registration fee  | $2382 |
| Exchange listing fee  | $50000 |
| FINRA filing fee  | $3088 |
| Transfer agent fees and expenses  | $20000 |
| Printer fees and expenses  | $57800 |
| Legal fees and expenses  | $560000 |
| Accounting fees and expenses  | $374820 |
| Miscellaneous  | $311910 |
| Total  | $1380000 |

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### L EGAL M ATTERS
The validity of the issuance of our Ordinary Shares offered in this prospectus and certain other matters of Israeli law will be passed upon for us by Goldfarb Gross Seligman & Co. Certain matters of U.S. federal law will be passed upon for us by Greenberg Traurig, P.A. Certain legal matters in connection with this offering will be passed upon for the underwriters by Carter Ledyard & Milburn LLP with respect to U.S. federal law.

### E XPERTS
The consolidated financial statements of Silentium Ltd. as of December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 included in the registration statement on Form F-1 of which this prospectus forms a part have been so included in reliance on the report of Ziv Haft, a BDO member firm, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The report on the consolidated financial statements contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

### E NFORCEMENT OF C IVIL L IABILITIES
We are incorporated in Israel. Service of process upon us, our directors and officers and the Israeli experts, if any, named in this prospectus, all of whom reside outside the United States, may be difficult to obtain within the United States. Furthermore, because the majority of our assets and investments, and substantially all of our directors, officers and such Israeli experts are located outside the United States, any judgment obtained in the United States against us or any of them may be difficult to collect within the United States.

Silentium USA Inc. is our agent to receive service of process in any action against us in any U.S. federal or state court arising out of this offering or any purchase or sale of securities in connection with this offering. The address of Silentium USA Inc. is 108 W. 13th Street, Suite 100, Wilmington, Delaware 19801.

We have been informed by our legal counsel in Israel that it may also be difficult to assert U.S. securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on an alleged violation of U.S. securities laws if they determine that Israel is not the most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and

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not U.S. law is applicable to the claim. There is little binding case law in Israel addressing these matters. If U.S. law is found to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly process. Certain matters of procedure will also be governed by Israeli law.

Subject to specified time limitations and legal procedures, under the rules of private international law currently prevailing in Israel, Israeli courts may enforce a U.S. judgment in a civil matter, including a judgment based upon the civil liability provisions of the U.S. securities laws, as well as a monetary or compensatory judgment in a non-civil matter, provided that the following key conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ subject to limited exceptions, the judgment is final and non-appealable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the judgment was given by a court competent under the laws of the state of the court and is otherwise enforceable in such state;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the judgment was rendered by a court competent under the rules of private international law applicable in Israel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the laws of the state in which the judgment was given provide for the enforcement of judgments of Israeli courts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ adequate service of process has been effected and the defendant has had a reasonable opportunity to present his arguments and evidence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the judgment and its enforcement are not contrary to the law, public policy, security or sovereignty of the State of Israel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ the judgment was not obtained by fraud and does not conflict with any other valid judgment in the same matter between the same parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ an action between the same parties in the same matter was not pending in any Israeli court at the time the lawsuit was instituted in the U.S. court.

If a foreign judgment is enforced by an Israeli court, it generally will be payable in Israeli currency, which can then be converted into non-Israeli currency and transferred out of Israel. Under existing Israeli law, a foreign judgment payable in foreign currency may be paid in Israeli currency at the rate of exchange in force on the date of the payment. Current Israeli exchange control regulations also permit a judgment debtor to make payment in foreign currency. Pending collection, the amount of the judgment of an Israeli court stated in Israeli currency ordinarily will be linked to the Israeli consumer price index plus interest at the annual statutory rate set by Israeli regulations prevailing at the time. Judgment creditors must bear the risk of unfavorable exchange rates.

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### W HERE Y OU C AN F IND M ORE I NFORMATION
We have filed with the SEC a registration statement on Form F-1 under the Securities Act relating to this offering of our Ordinary Shares. This prospectus does not contain all of the information contained in the registration statement. The rules and regulations of the SEC allow us to omit certain information from this prospectus that is included in the registration statement. Statements made in this prospectus concerning the contents of any contract, agreement or other document are summaries of all material information about the documents summarized, but are not complete descriptions of all terms of these documents. If we filed any of these documents as an exhibit to the registration statement, you may read the document itself for a complete description of its terms.

Our SEC filings are available to the public at the SEC's website at *http://www.sec.gov*. Upon completion of this offering, we will be subject to the information reporting requirements of the Exchange Act that are applicable to foreign private issuers, and under those requirements will file reports with the SEC. As a foreign private issuer, we will be exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, our principal shareholders will be exempt from the reporting requirements pursuant to Section 16 of the Exchange Act, and our principal shareholders, directors and officers will be exempt from the short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

We maintain a corporate website at *www.silentium.com*. Information contained on, or that can be accessed through, our website does not constitute a part of this prospectus.

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### Silentium Ltd.

#### Consolidated Financial Statements

#### As of December 31, 2025 and 2024

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### Silentium Ltd. Consolidated Financial Statements As of December 31, 2025 and 2024

### **Table of Contents**

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| | |
|:---|:---|
| | **Page**  |
|  [Report of Independent registered public accounting firm <br> (BDO Ziv Haft; Tel-Aviv, Israel; PCAOB ID#1185)](#fROIR)  | [F-3](#fROIR) |
| [Consolidated balance sheets](#fCBSD)  | [F-4](#fCBSD) |
| [Consolidated statements of comprehensive loss](#fCSOC)  | [F-5](#fCSOC) |
| [Consolidated statements of changes in shareholders' Deficit](#fCSOC1)  | [F-6](#fCSOC1) |
| [Consolidated statements of cash flows](#fCSOC2)  | [F-7](#fCSOC2) |
| [Notes to the consolidated financial statements](#fNTTC)  | [F-8](#fNTTC) – F-[26](#fTCRA) |

---

The amounts are stated in U.S. Dollars, in thousands, except share and per share amounts

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### Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Silentium Ltd.

Ness Ziona, Israel

We have audited the accompanying consolidated balance sheets of SILENTIUM Ltd. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive loss, changes in shareholders' deficit, and cash flows for the years ended December 31, 2025 and 2024, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025 and 2024, in conformity with accounting principles generally accepted in the United States of America.

#### Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses and negative cash flows from operations since inception. As of December 31, 2025, the Company had incurred accumulated losses of $77.56 million. The Company's operations have been funded substantially through issuance of ordinary shares, preferred shares, SAFEs, and government grants. Considering the above, the Company's dependence on external funding for its operations raises a substantial doubt about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are described in Note 1. The consolidated financial Statements do not include any adjustments that might result from the outcome of these uncertainties.

#### Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the Company's auditor since 2022.

---

| | |
|:---|:---|
| Tel-Aviv, Israel <br> March 30, 2026 <br> (except for Note 16, which is dated May 28, 2026) | /s/ Ziv Haft <br> Certified Public Accountants (Isr.) <br> BDO Member Firm  |

---

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### S ILENTIUM L TD.

#### C ONSOLIDATED B ALANCE S HEETS (U.S. dollars, in thousands, except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,**  | **December 31,**  |
| | **Note**  | **2025**  | **2024**  |
| **ASSETS**  |  |  |  |
| **CURRENT ASSETS:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents  |  | 831 | 2265 |
| &nbsp;&nbsp;&nbsp; Restricted deposits  |  | 266 | 599 |
| &nbsp;&nbsp;&nbsp; Trade receivables, net  | 13 | 849 | 788 |
| &nbsp;&nbsp;&nbsp; Other accounts receivables  | 4 | 161 | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total current assets**  |  | 2107 | 3882 |
| **LONG-TERM ASSETS:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Property and equipment, net  | 5 | 86 | 161 |
| &nbsp;&nbsp;&nbsp; Operating right-of-use assets  | 6 | 1512 | 1792 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Long-term assets**  |  | 1598 | 1953 |
| **TOTAL ASSETS**  |  | 3705 | 5835 |
| **LIABILITIES AND SHAREHOLDERS' DEFICIT**  |  |  |  |
| **CURRENT LIABILITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term bank loans  | 7 | 1533 | 960 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trade payables  |  | 102 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenues  | 13 | 25 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities  | 6 | 348 | 294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other accounts payable  | 8 | 1042 | 976 |
| &nbsp;&nbsp;&nbsp;&nbsp; SAFE Liabilities  | 9 | 1324 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Warrants and other derivatives  | 10 | 886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities**  |  | 5260 | 2315 |
| **LONG TERM LIABILITIES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term lease liabilities  | 6 | 1196 | 1294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Warrants and other derivatives  | 10 |  | 805 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term bank loans  | 7 | 606 | 1333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current liabilities**  |  | 1802 | 3432 |
| **COMMITMENTS AND CONTINGENCIES**  | 11 |  |  |
| **TEMPORARY EQUITY(\*\*)**  | 12 | 7536 | 6389 |
|  Convertible Preferred Shares A through A-7 (no par value): 37,698 and 47,670 shares authorized as of December 31, 2025 and December 31, 2024 respectively, and 37,698 shares issued and outstanding as of December 31, 2025 and December 31, 2024.  |  |  |  |
|  Convertible Preferred Shares B-1 through B-2 (no par value): 306,622 shares authorized as of December 31, 2025 and December 31, 2024; 153,311 shares issued and outstanding as of December 31, 2025 and December 31, 2024.  |  |  |  |
|  Convertible Preferred Shares C through C-2 (no par value): 2,154,593 and 2,000,000,000 shares authorized as <br> of December 31, 2025 and December 31, 2024 respectively; 763,511 and 541,449 shares issued and <br> outstanding as of December 31, 2025 and December 31, 2024 respectively.  |  |  |  |
| **DEFICIT**  | 12 |  |  |
|  Ordinary shares (no par value): 3,326,330 and 3,398,058 shares authorized as of December 31, 2025 and December 31, 2024 respectively; 839,492,514 shares issued and outstanding as of December 31, 2025 and December 31, 2024 respectively(\*\*).  |  | \* | \* |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital  |  | 66670 | 66555 |
| &nbsp;&nbsp;&nbsp; Translation reserve  |  | (5) | (14) |
| &nbsp;&nbsp;&nbsp; Accumulated deficit  |  | (77558) | (72842) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Shareholders' deficit**  |  | (10893) | (6301) |
| &nbsp;&nbsp;&nbsp; **TOTAL LIABILITIES AND SHAREHOLDERS ' DEFECIT**  |  | 3705 | 5835 |

---

\*

Represents an amount less than $1.

\*\*

After adjusting for the reverse stock split. See note 16.

The accompanying notes are an integral part of the consolidated financial statements.

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### S ILENTIUM L TD.

#### C ONSOLIDATED S TATEMENTS OF C OMPREHENSIVE L OSS (U.S. dollars, in thousands, except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,**  | **December 31,**  |
| | **Note**  | **2025**  | **2024**  |
| Revenues  | 13 | 3949 | 3911 |
| Cost of revenues  |  | 1248 | 995 |
| **Gross profit**  |  | 2701 | 2916 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp; Research and development, net  |  | 3914 | 3826 |
| &nbsp;&nbsp;&nbsp; Selling and marketing  |  | 1087 | 1458 |
| &nbsp;&nbsp;&nbsp; General and administrative  |  | 2047 | 1968 |
| **Total operating expenses**  |  | 7048 | 7252 |
| **Operating loss**  |  | (4347) | (4336) |
| Financial income (expenses), net  |  | (211) | 623 |
| **Loss before tax**  |  | (4558) | (3713) |
| Tax on income  |  | 158 | 124 |
| **Loss for the year**  |  | (4716) | (3837) |
| **Other comprehensive income (loss), net of tax:** |  |  |  |
| Exchange income (losses) arising on translation of foreign operations  |  | 9 | (11) |
| **Other comprehensive loss**  |  | 9 | (11) |
| **Total comprehensive loss**  |  | (4707) | (3848) |
| **Earnings (loss) per share(\*)**  | **15**  |  |  |
| Earnings (Loss) per share (Basic)  |  | (10.67) | 0.08 |
| Loss per share (Diluted)  |  | (10.67) | (0.09) |
| Weighted average ordinary shares (Basic)  |  | 442372 | 51774703 |
| Weighted average ordinary shares (Diluted)  |  | 442372 | 52165443 |

---

\*

After adjusting for the reverse stock split. See note 16.

The accompanying notes are an integral part of the consolidated financial statements.

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### S ILENTIUM L TD.

#### C ONSOLIDATED S TATEMENTS OF C HANGES IN S HAREHOLDERS' D EFICIT (U.S. dollars, in thousands, except share and per share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share <br> capital**  | **Additional <br> paid-in <br> capital**  | **Translation <br> reserve**  | **Accumulated <br> deficit**  | **Total <br> shareholders' <br> equity**  |
| Balance as of January 1, 2024  | \* | 3360 | (3) | (69005) | (65648) |
| Share based compensation  |  | 285 |  |  | 285 |
| Extinguishment  |  | 62910 |  |  | 62910 |
| Total comprehensive loss  |  |  | (11) | (3837) | (3848) |
| Balance as of December 31, 2024  | \* | 66555 | (14) | (72842) | (6301) |
| Share based compensation  |  | 115 |  |  | 115 |
| Total comprehensive income  |  |  | 9 | (4716) | (4707) |
| Balance as of December 31, 2025  | &nbsp;&nbsp;&nbsp;&nbsp;\* | 66670 | (5) | (77558) | (10893) |

---

\*

Represents an amount less than $1.

The accompanying notes are an integral part of the consolidated financial statements.

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### S ILENTIUM L TD.

#### C ONSOLIDATED S TATEMENTS OF C ASH F LOWS (U.S. dollars, in thousands, except share and per share amounts)

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| <u>Cash flows from operating activities:</u> |  |  |
| Net Loss  | (4716) | (3837) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation  | 77 | 173 |
| Share based compensation  | 115 | 285 |
| Financing costs  | 195 | (893) |
| Increase in trade receivables  | (52) | (128) |
| Decrease (Increase) in other account receivables  | 69 | (94) |
| Increase (Decrease) in trade payables  | 54 | (95) |
| Decrease in deferred revenue  | (12) | (75) |
| Increase in other accounts payable  | 64 | 188 |
| **Net cash used in operating activities**  | (4206) | (4476) |
| <u>Cash flows from investing activities:</u> |  |  |
| Restricted deposit  | 333 | 160 |
| Purchase of property and equipment  | (2) | (9) |
| **Net cash provided by (used) in investing activities**  | 331 | 151 |
| <u>Cash flows from Financing activities:</u> |  |  |
| Bank loans received  | 550 | 1000 |
| Bank loans repaid  | (973) | (1070) |
| Issuance of shares  | 1494 | 3548 |
| Issuance of SAFE Liabilities  | 1324 | 1463 |
| **Net cash provided by financing activities**  | 2395 | 4941 |
| Increase (decrease) in cash and cash equivalents  | (1480) | 616 |
| Effect of changes in foreign exchange rates  | 46 | (31) |
| Cash and cash equivalents at the beginning of the year  | 2265 | 1680 |
| Cash and cash equivalents at the end of the year  | 831 | 2265 |
| **Appendix A: Non-Cash activities:** |  |  |
| Reclassification of Preferred Stock from temporary equity to permanent equity  | 0 | 62908 |
| Conversion of SAFE Liabilities into shares  | 0 | 1644 |
| **Appendix B: Supplemental cash flow activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Income tax paid  | 158 | 124 |
| &nbsp;&nbsp;&nbsp; Interest paid  | 278 | 301 |

---

The accompanying notes are an integral part of the consolidated financial statements.

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### Silentium Ltd.

#### Notes to the Consolidated Financial Statements (U.S. dollars, in thousands, except share and per share amounts)

#### Note 1 — Description of Business :
A. #### Description of the Company and its operations:
Silentium Ltd. ("the Company") was incorporated in 1997. The Company and its subsidiaries (collectively, "the Group") are engaged in developing and marketing products and services using the Company's proprietary Active Noise Control Technology (ANC). In 2018, the Company incorporated a fully owned subsidiary in Hong Kong called Silentium (Asia) LTD, which serves as a holding company for its wholly owned subsidiary in the People's Republic of China (hereinunder "PRC") also incorporated in 2018 called Silentium Acoustic Technology (Shanghai) Co LTD (hereinunder "SATC"). In November 2024, the Company incorporated a subsidiary called Silentium USA INC (hereinunder, "SUSA") in Delaware, USA. SUSA and SATC engage in business development, sales, account acquisition and management and customer engineering in USA and Asia Pacific ("APAC") including the Peoples Republic of China and other Pacific Rim countries such as Japan and South Korea respectively.

B. #### Going concern:
The accompanying financial statements (the "Financial Statements") have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and negative cash flows from operations since inception. As of December 31, 2025, the Company has incurred accumulated losses of 77,558 and expects to continue to fund its operations through fundings such as issuance of Ordinary and Preferred shares and warrants, SAFEs, and through Israeli governmental grants. There is no assurance that such financing will be obtained. Considering the above, our dependence on external funding for our operations raises a substantial doubt about our ability to continue as a going concern. The Financial Statements do not include any adjustments that might result from the outcome of these uncertainties.

These Financial Statements were authorized by the Board of Directors on March 30, 2026.

#### Note 2 — Summary of Significant Accounting Policies:

#### Basis of presentation
The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP).

#### Principle of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

#### Functional currency
The currency of the primary economic environment in which the operations of the Company are conducted is the U.S. dollar ("USD").

Transactions and balances originally denominated in USD are presented at their original amounts. Balances in non-USD currencies are translated into USD using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-USD transactions and other items in the statements

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Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)
of income (indicated below), the following exchange rates are used: (i) for transactions — exchange rates at transaction dates or average exchange rates; and (ii) for other items (derived from non-monetary balance sheet items such as depreciation) — historical exchange rates. Currency transaction gains and losses are presented in financial expenses (income), net as appropriate. The functional currency of the Company and all its subsidiaries except for SATC is the USD. The functional currency of SATC is the Chinese RMB.

#### Use of estimates and assumptions in the preparation of the financial statements:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. As applicable to these financial statements, the most significant estimates and assumptions relate to the fair value of certain warrants and derivative financial instruments, the fair value that impacts extinguishment or modification of temporary equity, the interest rate used for lease liability measurement, and share-based compensation. It is possible that actual results will differ from those estimates.

#### Cash and cash equivalents
Cash equivalents are considered by the Company highly-liquid investments, including inter-alia, short-term deposits with banks, with maturities not exceeding three months at time of deposit and which are unrestricted.

#### Restricted cash:
Restricted cash is primarily invested in highly liquid deposits, which are used as a security for credit card payments, bank loan and rental payments.

#### Property and equipment, net:
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over their estimated useful lives. Annual rates of depreciation are as follows:

---

| | |
|:---|:---|
| | **%**  |
| Computers and peripheral equipment | 33  |
| Electronic equipment | 15  |
| Office furniture and equipment | 6  |
| Leasehold improvements | The shorter of term of the lease or <br> the useful life of the asset  |

---

#### Stock-based compensation:
The Company accounts for stock-based compensation using the fair market value method under which compensation cost is measured at the grant date based on the award value and is recognized over the service period, which is usually the vesting period. For stock options, fair value is determined using an option-pricing model which considers various factors including the stock price at the grant date, the exercise price, the expected option's life, the underlying stock volatility, expected dividends, and the risk-free interest rate for the option's expected life.

#### Revenue recognition:
The Company recognizes revenue in accordance with ASC Topic 606, "Revenue from Contracts with Customers," with respect to all contracts with customers.

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Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)
The Company enters into contracts with original equipment manufacturers (OEMs) and Tier-1 (providing finished goods directly to OEMs) and Tier-2 (providing goods indirectly to OEMs) automotive suppliers.

The main promise identified in those contracts is generally a combined performance obligation to provide a functional software term license (usually for an enforceable initial period of around 5 years), which is tuned and adjusted for each vehicle model's specific acoustic and internal design. Applying judgment, the Company concluded that tuning and porting services that adjust the software code are not distinct in the context of the contract from the related software license provided. This is because without those adjustments, which require the unique specialty of the Company's personnel, the Company's Active Noise Control Technology cannot perform its essential functions as intended.

Revenue from software licenses is recognized at a point in time. For licenses granted, the Company receives predominantly sales and usage-based fees, which are calculated with reference to the volume of sales of Tier-1 and 2 suppliers' equipment to OEMs and installation of the Company's software in OEM equipment. Fees are generally paid within 60 days of invoice receipt.

Applying the 'royalties exception' of ASC 606-10-55-65, the Company recognizes revenue from sales and usage-based fees at the later of (a) the occurrence of related sale or installation; and (b) when the adjusted software is ready to be installed in the applicable vehicle model. In these contracts, the Company also provides assurance-type warranty to its customers.

The Company also provides its customer with proof-of-concept reports on the feasibility of its technology to certain designs of vehicle models. Revenue from these reports is recognized when customer acceptance is received for a report. Transaction price is allocated to the different reports within a project based on their standalone selling price, determined with reference to their fulfilment cost plus a margin.

The Company also applies the practical expedient in ASC 606-10-65-1 and does not adjust the transaction price for the effects of a significant financing component when a customer pays for a good within one year or less.

#### Research and development costs:
The Company expenses research and development costs as incurred.

#### Royalty-bearing grants:
The Company receives royalty-bearing grants from the Israeli Innovation Authority ("IIA") for approved research and development projects. Under Israeli law, royalties on the revenues derived from products and services developed using such grants, are payable to the Israeli Government.

The grants are linked to the exchange rate of the US dollar to the New Israeli Shekel and bear interest of the Secured Overnight Financing Rate ("SOFR") per year (SOFR is a benchmark interest rate which replaced LIBOR).

The Company recognizes these grants when they are due based on the costs incurred which have been offset against research and development expenses as provided by the relevant agreements.

Research and development grants for the years ended December 31, 2025 and 2024 amounted to 6 and 362 respectively.

#### Severance pay:
Pursuant to Israeli law, employees are generally entitled to severance pay upon retirement or dismissal, or upon termination of their employment without cause.

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Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)
As a result of Section 14 of the Severance Pay Law, most of the Company's Israeli employees are covered by defined contribution plans in which the Company makes fixed contributions. As long as the fund does not contain sufficient funds to cover all employee benefits relating to employee service in the current and previous periods, the company will not be legally or constructively obligated to pay any further contributions. Severance contributions in a defined contribution plan are recognized as an expense when they are made concurrently with receiving employee services, and no additional provision is required in the financial statements.

As of December 31, 2025 and December 31, 2024, all Israeli employees are covered by Section 14 of Severance Pay Law.

#### Fair value measurement
Fair value is based on the price that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data or active market data of similar or identical assets or liabilities.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

 *Financial instruments measured at fair value on a recurring basis* 

The following is a roll forward of the fair value of financial liabilities classified under Level 3:

---

| | | |
|:---|:---|:---|
| | **2025**  | **2025**  |
| | **Warrants and <br> other derivatives**  | **SAFE liabilities**  |
| January 1  | 805 |  |
| Issuance  | 483 | 1324 |
| Change in fair value  | (402) |  |
| December 31  | 886 | 1324 |

---

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Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)

---

| | | |
|:---|:---|:---|
| | **2024**  | **2024**  |
| | **Warrants and <br> other derivatives**  | **SAFE liabilities**  |
| January 1  | 576 | 1212 |
| Issuance  | 166 | 1463 |
| Change in fair value  | 63 | (1032) |
| Conversion to equity  |  | (1617) |
| Conversion to warrants  |  | (26) |
| December 31  | 805 |  |

---

The fair value of all financial instruments of the Company was calculated using a Black Scholes and Merton model. The following table presents the main unobservable inputs used in the model for the periods presented:

---

| | | |
|:---|:---|:---|
| | **December 31**  | **December 31**  |
| | **2025**  | **2024**  |
| Expected volatility  | 50% | 55% |
| Expected time to liquidation (years)  | 1 | 1.25 |

---

 *Financial instruments measured at fair value on a non-recurring basis* 

Financial instruments not recorded at fair value on a recurring basis include cash and cash equivalents, restricted deposits, trade receivables and trade and other accounts payables. Due to their nature, their fair value approximates their carrying value.

#### Preferred Shares issued
When the Company issues preferred shares, it considers the provisions of ASC 480, Distinguishing Liabilities from Equity ("ASC 480") in order to determine whether the preferred share should be classified as a liability. If an instrument is not within the scope of ASC 480, the Company further analyzes the instrument's characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of ASC 480-10-S99. The Company's redeemable convertible preferred shares are not mandatorily or currently redeemable. However, they include payment provisions upon Liquidation Events that would constitute redemption events that are outside of the Company's control. As such, all shares of redeemable preferred shares had been presented outside of permanent equity.

#### Contracts over Preferred Shares and SAFE liabilities
When the Company issues other freestanding instruments, the Company first analyzes the provisions of ASC 480 in order to determine whether the instrument should be classified as a liability, with subsequent changes in fair value recognized in the statements of operations in each period. If the instrument is not within the scope of ASC 480, the Company further analyzes the provisions of ASC 815-40 in order to determine whether the instrument should be classified within equity or classified as an asset or liability, with subsequent changes in fair value recognized in the statements of operations in each period. The Company's issued financial instruments that are convertible to preferred shares, such as warrants over preferred shares and SAFE liabilities are in the scope of ASC 480.

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Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)

#### Contracts over Ordinary Shares
Warrants to purchase Ordinary Shares are not within the scope of ASC 480, and as such the Company further analyzes the provisions of ASC 815-40 in order to determine whether the contract should be classified within equity or classified as a liability, with subsequent changes in fair value recognized in the statements of operations in each period.

Under ASC 815-40, contracts that are not indexed to the Company's own stock, or that contain redemption features not within the Company's control are classified as liabilities recorded at fair value. This liability is subject to re-measurement at each balance sheet date until the instruments are exercised or expire, or upon reassessment of classification.

Warrants and other derivative financial instruments issued to the Bank (see Note 10) are either convertible to Preferred Shares or may be settled for cash under certain circumstances and as such are classified as financial liabilities.

#### Bank Loans
When the Company originates a loan together with detachable liability-classified derivative financial instruments, it first allocates the consideration to the derivative liability and the residual to the loan liability, measured at amortized cost.

When the Company modifies the terms of its debt, it determines whether to account for these modifications as troubled debt restructuring. For modifications that are not trouble debt restructuring, it goes on to determine whether to account for these modifications as debt modifications or debt extinguishments. As part of the assessment, the Company determines whether the amended terms are substantially different, defined as the present value of the remaining cash flows after amendment differ by at least 10% of those prior to the amendment.

#### Earnings (loss) per share
The Company's basic net earnings (loss) per share is calculated by dividing net earnings (loss) attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net earnings (loss) per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net earnings (loss) per share is the same as basic net earnings (loss) per share in periods when the effects of potentially dilutive shares of ordinary shares are anti-dilutive.

The Company computes net earnings (loss) per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considers its redeemable convertible preferred shares to be participating securities as the holders of the redeemable convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, based on their preference and on a pro-rata basis assuming conversion of all redeemable convertible preferred shares into ordinary shares. These participating securities do not contractually require the holders of such shares to participate in the Company's losses. As such, net loss is not allocated to the Company's participating securities.

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)

#### Newly issued and recently adopted accounting pronouncements:
 *Recently Adopted Accounting Pronouncements* 

**Emerging growth company:** The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups ("JOBS") Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as to those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.

In December, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective for fiscal years beginning after December 15, 2025, and allows adoption on a prospective basis, with a retrospective option.

 *Recent Accounting Guidance Issued, Not Yet Adopted:* 

In November 2024, the FASB issued ASU No. 2024-03 Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40). The ASU improves the disclosures about a public business entity's expenses and provides more detailed information about the types of expenses in commonly presented expense captions. The amendments require that at each interim and annual reporting period an entity will, inter alia, disclose amounts of purchases of inventory, employee compensation, depreciation and amortization included in each relevant expense caption (such as cost of sales, SG&A and research and development). The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures.

In July 2025, the FASB issued ASU 2025-05 "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets". The ASU introduces a practical expedient for all entities when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. Under the practical expedient, when developing reasonable and supportable forecast as part of estimating expected credit losses, an entity may assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The ASU is effective for annual reporting period beginning after December 15, 2025 and interim reporting within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods. The Company is evaluating the impact of ASU 2025-05 on its consolidated financial statements if it elects to apply the practical expedient.

In December 2025, the FASB issued ASU 2025-11 to amend the guidance in "Interim Reporting" (Topic 270). The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. The guidance is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years. The Company is in the process of evaluating the effects of the ASU on interim reporting.

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### Note 2 — Summary of Significant Accounting Policies: (continued)
ASU 2025-10 — Government Grants (Topic 832)

In November 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which provides comprehensive guidance on the recognition, measurement, and presentation of government grants. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the impact of this guidance on its accounting for government assistance arrangements.

#### Note 3 — Segment Information:
The Company operates its business as one operating segment and one reportable segment. The Company has identified its Chief Executive Officer as its Chief Operating Decision Maker ("CODM".) The CODM uses revenues and net income for purposes of assessing performance and deciding how to allocate resources. CODM is regularly provided with the total expenses noted on the face of the income statement. Significant non-cash expenses such as depreciation expenses and stock-based compensation expenses appear in the statement of cash flows. See note 13.

#### Note 4 — Prepaid Expenses and Other Accounts Receivables:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| Prepaid expenses  | 26 | 119 |
| Grants receivable  |  | 60 |
| Government institutions  | 135 | 51 |
| **Total**  | 161 | 230 |

---

#### Note 5 — Property and Equipment, Net:

---

| | | |
|:---|:---|:---|
| | **December 31**  | **December 31**  |
| | **2025**  | **2024**  |
| <u>Cost</u>: |  |  |
| Computers and peripheral equipment  | 764 | 762 |
| Electronic equipment  | 483 | 483 |
| Office furniture and equipment  | 131 | 131 |
| Leasehold improvements  | 470 | 470 |
|  | 1848 | 1846 |
| <u>Accumulated depreciation:</u> |  |  |
| Computers and peripheral equipment  | 757 | 729 |
| Electronic equipment  | 432 | 391 |
| Office furniture and equipment  | 120 | 118 |
| Leasehold improvements  | 453 | 447 |
|  | 1762 | 1685 |
| Depreciated cost  | 86 | 161 |

---

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### Note 6 — Leases:
The facilities of the Company are leased under various operating lease agreements for periods ending no later than 2030. The Company also has the option to extend the term of certain facility lease agreements, and when the Company expects to extend the leases they are included in the calculation of right-of-use assets.

The following table presents the components of the Company's lease cost in the Company's consolidated statements of comprehensive loss for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **For the <br> Years Ended <br> December 31,**  | **For the <br> Years Ended <br> December 31,**  |
| **Component of Lease Cost**  | **2025**  | **2024**  |
| Operating lease cost  | $438 | $430 |

---

Supplemental cash flow information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
| | **For the <br> Years Ended <br> December 31,**  | **For the <br> Years Ended <br> December 31,**  |
| | **2025**  | **2024**  |
| Cash paid under operating lease agreements  | $403 | $382 |

---

Undiscounted maturities of future operating lease payments as of December 31, 2025 are summarized as follows:

---

| | |
|:---|:---|
| | **December 31, <br> 2025**  |
| 2026  | $431 |
| 2027  | 406 |
| 2028  | 388 |
| 2029  | 336 |
| 2030  | 252 |
| Total future lease payments  | 1813 |
| Less imputed interest  | (269) |
| Total lease liabilities  | $1544 |

---

The following table includes the weighted-average lease terms and discount rates for operating leases as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| Operating leases weighted average remaining lease term (in years)  | 4.41 | 5.36 |
| Operating leases weighted average discount rate  | 8.67% | 8.61% |

---

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Notes to the Consolidated Financial Statements

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

#### N OTE 7 — Long Term Loans:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| Total Loans  | 2139 | 2293 |
| Less – Current portion  | 1533 | 960 |
| Long-term Loans  | 606 | 1333 |
| Payable in 2026  |  | 993 |
| Payable in 2027  | 606 | 340 |
|  | 606 | 1333 |

---

As part of a loan agreement with bank Mizrahi Tefahot LTD ("the Bank") in 2020, the Company granted warrants in the amount of 400 at an exercise price of $183.34 per share, subject to adjustments, and expires in December 2027. Upon an Exit Event (such as an IPO or change in control), the Bank may elect to receive an alternative cash payment of 300 in lieu of the warrants.

In October 2022, the Company entered into a loan agreement with the Bank for a long-term loan in the amount of 3,000, which was to be repaid within 3 years from receipt. The annual interest rate is 7.5%+ Term SOFR (adjusted monthly). As part of the agreement, the company granted an additional warrant which entitles the Bank to invest 300 in consideration for 44,810. Preferred C Shares at an exercise price of $6.70 per share in addition to 200% warrant coverage exercisable at an exercise price of $6.70 per share, or alternatively to participate as an investor in the September 2025 SAFE, with an investment of 300, in lieu of exercising the additional warrant. Alternatively, the Bank is entitled to require a cash payment equal to 375 in lieu of the additional warrant.

In 2025, the bank agreed to defer principal payments of the unpaid portion of the loan, and the loan will become fully repayable in October 2026.

The warrants granted are classified as liabilities, because their settlement amount varies with the occurrence of an exit event, and they may be redeemed for cash under circumstances not solely within the control of the Company.

In December 2024, the Company entered into an additional loan agreement with the Bank for a long-term loan in total amount of 1,000. The loan period is 3 years from the signing date. The annual interest rate is 7.5%+ Term SOFR (adjusted monthly) and the Principal payments of this loan will be repaid in 24 equal installments starting from January 2026. The loan agreements provided for an exit bonus of 150 or 225 in the event of an exit occurring by December 31, 2026 or after December 31, 2026 respectively.

In November 2025, the Company entered into an additional agreement with the Bank for a short-term loan in total amount of 400. The annual interest rate is 7.5%+ Term SOFR (adjusted monthly) and the Company will repay this loan in November 2026. In addition, the exit bonus was increased by 150.

The Company recognized interest expenses of 278 and 325 in 2025 and 2024 respectively for the loans.

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Notes to the Consolidated Financial Statements

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

#### N OTE 8 — O THER A CCOUNTS P AYABLE:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| Employees and payroll accruals  | 520 | 591 |
| Accrued expenses and other payables  | 450 | 265 |
| Provisions for IIA and Bird grants  | 72 | 120 |
|  | 1042 | 976 |

---

#### N OTE 9 — S AFE L IABILITIES:
In September 2025, the Company entered into certain Simple Agreements for Future Equity ("SAFE") investment agreements ("2025 SAFEs") with certain investors. As of December 31, 2025, the Company had received aggregate proceeds of 1,324. See note 16 regarding funds received for the 2025 SAFEs after December 31, 2025. In the event of an equity financing. The 2025 SAFEs will automatically convert into the number of shares of Safe Preferred Shares equal to the amount invested divided by the conversion price, based on a price per share that reflects a pre-money valuation of 3,000 for the Company or that reflects a 25% discount on the price per share in the equity financing (whichever calculation results in a greater number of shares of Safe Preferred Shares). The 2025 SAFEs were recognized as short-term liabilities as of December 31, 2025.

#### N OTE 10 — W ARRANTS AND O THER D ERIVATIVES:

#### The table below reflects warrants outstanding at December 31, 2025, and 2024

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Share Class into which <br> warrants may be exercised**  | **Expiry date**  | **Exercise <br> price**  | **Number of warrants**  | **Number of warrants**  | **Number of warrants**  |
| **Share Class into which <br> warrants may be exercised**  | **Expiry date**  | **Exercise <br> price**  | **2025**  | **2024**  | **Classification**  |
| Preferred B-2(\*)  | Between September 2026 <br> and May 2027  | $17.45 | 153311 | 153311 | Liability  |
| Ordinary  | 31 Dec 2027  | $183.13 | 2185 | 2185 | Liability  |
| Preferred C(\*\*)  | Between October 2030 and February 2031  | $6.70 | 44810 | 44810 | Liability  |
| Preferred C  | Earlier of an IPO, liquidity event or June 15, 2027  | $6.70 | 444125 |  | Liability  |
| Ordinary  | June 1, 2032  | $70.86 | 586 | 586 | Equity  |
| Ordinary  | An exit or liquidation event  |  | 22232 | 22232 | Equity  |
|  |  |  | 667249 | 223124 |  |

---

\*)

Exercise price is $0 if the Company is sold for 50,000 or less.

\*\*)

See note 7 regarding warrants.

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 11 — C OMMITMENTS AND C ONTINGENCIES:

#### Provisions for grants:
<u>Royalties to the Office of the Israeli Innovation Authorities ("the IIA"):</u>

The Company received royalty-bearing grants from the Israeli Innovation Authority ("IIA") for approved research and development projects Under Israeli law, royalties on the revenues derived from products and services developed using such grants, are payable to the Israeli Government.

The grants are linked to the exchange rate of the dollar to the New Israeli Shekel and bear interest of the Secured Overnight Financing Rate ("SOFR") per year (SOFR is a benchmark interest rate which replaced LIBOR). The Company is required to pay royalties in connection with such grants at the rate of 3% of qualifying revenues, up to the total dollar-linked amount of such grants. research and development ("R&D")

As of December 31, 2025 and 2024, the Company has a contingent obligation to pay royalties of approximately 4,425 and 4,282, respectively.

<u>Royalties to the BIRD Foundation:</u> 

The Company is committed to paying royalties to the BIRD Foundation at a rate of 5% on the sales of products developed with the funds, from products and services incorporating the know-how developed during the project, if and when such sales are recognized, provided by the BIRD Foundation, up to an amount equal to 150% of dollar-linked research and development grants related to such projects.

As of December 31, 2025 and 2024, the Company has a contingent obligation in the amount 1,067 and 1,077 respectively to BIRD Foundation.

<u>Ministry of Economy and Industry grants:</u> 

A grant application has been submitted to and approved by the Ministry of Economy and Industry under the "Smart Money" program for marketing and business activities in China and Japan. Royalties will be charged as soon as the company is not entitled to reimbursement of expenses under the program and sales reach 50% of the revenue basis or 250 for each activity, whichever is lower. Royalties will be paid annually until full repayment of the granted amount including inflation has been made.

As of December 31, 2025 and 2024 the Company has a contingent obligation in the amount of 432 and 460 respectively to the Ministry of Economy, in respect of funding received by the Ministry of Economy and Industry.

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 12 — S HAREHOLDERS' E QUITY AND T EMPORARY E QUITY:
a. #### Composition of share capital(\*):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025**  | **December 31, 2025**  | **December 31, 2024**  | **December 31, 2024**  |
| | **Authorized**  | **Issued and <br> outstanding**  | **Authorized**  | **Issued and <br> outstanding**  |
| | **Number of shares**  | **Number of shares**  | **Number of shares**  | **Number of shares**  |
| All of the shares are of no-par value  |  |  |  |  |
| Ordinary shares  | 3326330 | 407521 | 3398058 | 407521 |
| Preferred A-1 shares  | 6201 | 6201 | 12621 | 6201 |
| Preferred A-2 shares  | 4700 | 4700 | 11650 | 4700 |
| Preferred A-3 shares  | 1041 | 1041 | 4369 | 1041 |
| Preferred A-4 shares  | 2812 | 2812 | 2913 | 2812 |
| Preferred A-5 shares  | 22944 | 22944 | 15534 | 22944 |
| Preferred A-6 shares  |  |  | 291 |  |
| Preferred A-7 shares  |  |  | 291 |  |
| Preferred B-1 shares  | 153311 | 153311 | 153311 | 153311 |
| Preferred B-2 shares  | 153311 |  | 153311 |  |
| Preferred C shares  | 2154593 | 763511 | 970874 | 541449 |
|  | 5825243 | 1362041 | 4723223 | 1139979 |

---

\*)

After adjusting for the reverse stock split. See note 16

**b.** On September 5, 2024, the Company entered into the Series C Preferred Share Purchase and Recapitalization Agreement for the issuance of Series C Preferred Shares ("September 2024 SPA"), in the amount of 3,625. Pursuant to the September 2024 SPA, all existing preferred shares, including Series A, Series B-1, Series B-2, Series B-3, Series B-4, Series C-1, Series C-2, Series D, Series D-1, and Series D-2, were converted on a 1:1 basis into Ordinary Shares of the Company, while certain preferred shares were converted, instead of into Ordinary Shares, into Preferred A-1 Shares, Preferred A-2 Shares, Preferred A-3 Shares, Preferred A-4 Shares and Preferred A-5 Shares, at a predetermined ratio, depending on the issuance of Series C Preferred Shares. Additionally, in the framework of the SPA, the outstanding 2023 SAFE and 2024 SAFE were amended such that: (i) at the closing of the SPA, the Aggregate SAFE Amount was converted into 153,311 shares of the newly created Preferred B-1 Preferred Shares, at a conversion price of US $17.45 per share, and (ii) the SAFE Warrants continued to be in effect, but were amended to be exercisable only into such number of newly created Preferred B-2 Shares, at a price per share equal to US $17.45.

Overall, the following new shares were issued:

---

| | |
|:---|:---|
| **CLASS**  | **SHARES ISSUED**  |
| Ordinary Shares  | 403942 |
| Preferred A-1 Shares  | 6201 |
| Preferred A-2 Shares  | 4700 |
| Preferred A-3 Shares  | 1041 |
| Preferred A-4 Shares  | 2812 |
| Preferred A-5 Shares  | 22944 |
| Preferred B-1 Shares  | 153311 |
| Preferred C Shares  | 541449 |

---

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 12 — S HAREHOLDERS' E QUITY AND T EMPORARY E QUITY: (continued)
Furthermore, in the framework of the SPA all outstanding warrants of the Company (other than the second Warrant issued to Mizrahi Tefahot Bank Ltd. on October 20, 2022 which remains in full force under its terms, and which is currently exercisable into Series C Preferred Shares at the Series C PPS) and options (which were not granted pursuant to the Company's option plan) issued to certain stakeholders of the Company, have been amended into warrants or options (as applicable) to purchase Ordinary Shares, at an exercise price as specified in each such warrant or option.

Applying SEC guidance codified in ASC 480-10-S99 and ASC 260-10-S99-2, the conversion of Preferred Shares resulted in the extinguishment of the pre-existing Preferred Shares. This is because the equity instruments held by existing shareholders after the conversion were considered substantially different from the pre-existing Preferred Shares, based on the fair value of the equity rights before and after the conversion. The difference between the carrying amount of the Preferred Shares converted and the fair value of the Ordinary Shares and Class A Preferred Shares issued represents a capital contribution of 62,223, which was recorded to additional paid-in capital. This amount also resulted in an increase to the net income attributable to Ordinary Shareholders for the year ended December 31, 2024.

The estimated fair value of Class A Preferred Shares and Ordinary Shares issued, for the purpose of evaluating the extinguishment impact, was based on valuation study. The valuation was based on an option pricing model, utilizing level 3 stock volatility inputs of comparable companies, and additional level 2 inputs.

c. #### Redeemable Convertible Preferred Shares
The Company's Preferred Shares are reflected on the Balance sheet as Temporary equity.

In June 2025, the Company and certain investors entered into an agreement for the sale and issuance of additional Series C Preferred Shares of the Company, of no par value at a price per share of US $6.70 pursuant to which the Company received 1,487 and issued 222,063 Preferred C shares and 914,897,800 warrants. The warrants are exercisable into Preferred C Shares at a price per share of $6.70, until the earlier of: (i) two 2 years from the closing date of the agreement or (ii) immediately prior to an IPO or liquidation event, and include a cashless exercise provision, which shall, except for 41,512 warrants which are cashless at any time prior to expiration, be applied only upon an IPO or liquidation event.

The Company initially measured the warrants at fair value, and attributed the residual amount to preferred shares, classified as temporary equity.

The table below reflects each class of the Company's Preferred Shares' liquidation preference as of December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025**  | **December 31, 2025**  | **December 31, 2024**  | **December 31, 2024**  |
| **CLASS**  | **Carrying <br> amount**  | **Liquidation <br> preference**  | **Carrying <br> amount**  | **Liquidation <br> preference**  |
| Preferred A-1 Shares  | 383 | 1136 | 383 | 1136 |
| Preferred A-2 Shares  | 193 | 572 | 193 | 572 |
| Preferred A-3 Shares  | 30 | 90 | 30 | 90 |
| Preferred A-4 Shares  | 68 | 202 | 68 | 202 |
| Preferred A-5 Shares  | 549 | 1626 | 549 | 1626 |
| Preferred B-1 Shares  | 1617 | 2675 | 1617 | 2675 |
| Preferred C Shares  | 4696 | 5112 | 3549 | 3625 |

---

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 12 — S HAREHOLDERS' E QUITY AND T EMPORARY E QUITY: (continued)
Rights attached to preferred shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

Each holder of Preferred Shares is entitled to vote together with the holders of Ordinary Shares as one class, on an as-converted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

Each Preferred Share is convertible at the option of the holder into the Company's Ordinary Shares. The number of ordinary shares issuable upon the conversion of each Preferred Shares shall be equal to the quotient obtained by dividing the respective Original Issue Price of each Preferred Share by the Conversion Price per Share applicable to each share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

All outstanding Preferred Shares will be automatically converted into Ordinary Shares (i) immediately prior to the closing of an IPO; or (ii) upon written consent of the holders of at least a majority of the then outstanding Preferred Shares voting together as one class (on an as-converted basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

Upon the occurrence of a liquidation event (which includes, inter alia, a merger or a similar transaction after which more than 50% of the voting securities of the Company are not held by the shareholders of the Company prior to such transaction):

1)

First, holders of Preferred C Shares then outstanding shall be entitled to be paid on a pro rata basis an amount per Preferred C Share equal to the Series C Original Issue Price. If the assets to be distributed are insufficient to permit the payment to such shareholders, then all assets shall be distributed ratably among the Preferred C Shareholdes.

2)

Second, holder of the Preferred B-1 and B2 Shares then outstanding will be entitled to be paid among themselves in a similar manner, in accordance with each respective share Original Issue Price.

3)

Third, the holders of the Preferred A Shares then outstanding will be entitled to be paid among themselves in a similar manner, in accordance with each respective share Original Issue Price.

After payment in full of the respective amounts to Preferred Shareholders, then the remaining assets shall be distributed among the holders of Ordinary Shares, Preferred C Shareholders and Preferred B-1 Shareholders on a pari-passu basis**.** 

d. #### Stock Option plan
During 2013, the Company adopted its Share Option Plan ("the Plan"). Under the Plan, employees

Directors, officers, consultants, advisors and any other person or entity whose services are considered valuable to the Company may be granted options (or other share-based awards) to acquire Ordinary Shares. Pursuant to a resolution passed in August 2024, the Company reserved for issuance under the plan an amount of Ordinary Shares representing 15% of the Company's share capital on an as converted fully diluted basis immediately following the closing of the September 2024 SPA. As such, following the September SPA, 240,757 Ordinary Shares were allocated to be available for the issue of options under the Plan. As of December 31, 2024, an aggregate of 174,502 options were available for future grants. In December 2025, the Company increased the options available under the plan such that the Company's option pool will be 477,096 options including allocated and unallocated options. As of December 31, 2025, an aggregate of 97,508 options were available for future grants.

Options granted under the Plan are exercisable until the earlier of 10 years (unless otherwise determined by the Company's board of directors) from the date of the grant of the option or the expiration dates of the respective option agreement. The options have a time-based vesting, primarily over 2-4 years for grantees under the Plan.

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 12 — S HAREHOLDERS' E QUITY AND T EMPORARY E QUITY: (continued)
A summary of the Company's share option activity under option plans to its employees is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended <br> December 31, 2025**  | **Year ended <br> December 31, 2025**  | **Year ended <br> December 31, 2024**  | **Year ended <br> December 31, 2024**  |
| | **Number of <br> options**  | **Weighted <br> average <br> exercise price**  | **Number of <br> options**  | **Weighted <br> average <br> exercise price**  |
| Outstanding at beginning of year  | 66255 | 32.96 | 66718 | 41.41 |
| Granted  | 326187 | 3.40 |  |  |
| Exercised  | **—** | **—** | **—** |  |
| Cancelled  | -12854 | 12.20 | -463 | 51.15 |
| Outstanding at end of year  | 379588 | 9.68 | 66255 | 32.96 |
| Exercisable at end of year  | 80311 | 31.21 | 56382 | 67.98 |

---

The grant date fair values of employee stock options granted in the years ended December 31, 2025 and 2024 were estimated using the Black-Scholes valuation model with the following:

---

| | | |
|:---|:---|:---|
| | **For the Years Ended <br> December 31,**  | **For the Years Ended <br> December 31,**  |
| | **2025**  | **2024**  |
| Expected volatility  | 55% |  |
| Risk-free interest  | 3.84% |  |
| Dividend yield  |  |  |
| Expected terms (years)  | 1.5 |  |

---

#### N OTE 13 — R EVENUES:
a. The Company's revenues by geographic region, based on the customer's country are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| USA  | 1234 | 1568 |
| Japan  | 1532 | 1222 |
| PRC  | 885 | 666 |
| All others  | 298 | 455 |
|  | 3949 | 3911 |
| Revenues to major customers were as follows: |  |  |
| Customer A – USA  | 1234 | 1568 |
| Customer B – Japan  | 1478 | 1139 |
| Customer C – PRC  | 764 | 649 |

---

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[**TABLE OF CONTENTS**](#TOC2)

Notes to the Consolidated Financial Statements

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

#### N OTE 13 — R EVENUES: (continued)
b. Trade accounts payable and contract liabilities

The following table provides information about trade receivables, unbilled receivables and deferred revenues from contracts with customers:

Trade receivables, net 849 788 <br> Deferred revenues (short-term contract liabilities) 25 37

#### N OTE 14 — T AXES ON I NCOME:
**A.** Tax rates:

The Israeli corporate tax rate was 23% in 2025 and 2024.

China corporate tax rate was 25% in 2025 and 2024**.** 

**B.** Deferred income taxes:

Deferred taxes in respect of carry forward losses have not been accrued for. It is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2025**  | **2024**  |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp; Net operating loss carryforwards  | 15362 | 14194 |
| &nbsp;&nbsp;&nbsp; Amortization of R&D expenses  | 911 | 1021 |
| &nbsp;&nbsp;&nbsp; Accrued vacation pay  | 8 | 13 |
| Total gross deferred tax assets  | 16281 | 15228 |
| Less: Valuation allowance  | (16281) | (15228) |
| Total deferred tax assets  |  |  |

---

**C.** Net operating losses carryforwards:

As of December 31, 2025 the Company has accumulated carryforward losses amounting to approximately 66,793. The Company does not have any deferred tax asset for the carryforward losses.

D. #### Theoretical tax :
The main reconciling item between the statutory tax rate of the Company and the effective tax rate is the recognition of valuation allowance in respect of deferred taxes relating to accumulated net operating losses carried forward due to the uncertainty of the realization of such deferred taxes.

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Notes to the Consolidated Financial Statements

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

#### N OTE 14 — T AXES ON I NCOME: (continued)

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **Tax**  | **Rate**  |
| &nbsp;&nbsp;&nbsp; IL statutory tax rate  | (1085) | (23)% |
| &nbsp;&nbsp;&nbsp; **Foreign tax effects**  | (10) | (1)% |
| &nbsp;&nbsp;&nbsp; Non-deductible item – Share-based compensation  | 27 | 1% |
| Changes in Valuation Allowances  | 1053 | 22% |
| Tax credits  | 158 | 3% |
| Other Adjustments  | 15 | 1% |
| Effective tax rate  | 158 | 3% |

---

#### N OTE 15 — N ET E ARNINGS (L OSS) P ER S HARE A TTRIBUTABLE T O O RDINARY S HAREHOLDERS(\*):
For the year ended December 31, 2025 and 2024, the Company reported net income attributable to ordinary shareholders of $4,716 and $4,211, accordingly. The basic and diluted (loss) earning per share attributable to ordinary shareholders are computed as follows (in thousands, except for share and per share data):

---

| | | |
|:---|:---|:---|
| | **Year ended December 31**  | **Year ended December 31**  |
| | **2025**  | **2024**  |
| **Numerator:** |  |  |
| Net loss  | $(4716) | $(3837) |
| &nbsp;&nbsp;&nbsp; Effect of September 2024 SPA (see Note 12(b)  |  | 62220 |
| &nbsp;&nbsp;&nbsp; Effect of participating securities  |  | (54173) |
| Net (loss) earnings attributable to ordinary shareholders – basic  | (4716) | 4211 |
| Effect of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp; Exclude effect of September 2024 SPA (see Note 12(b))  |  | (8048) |
| &nbsp;&nbsp;&nbsp; Exclude effect of dilutive liability-classified convertible instruments  |  | (1095) |
| Numerator for diluted loss per share attributable to ordinary shareholders  | $(4716) | $(4932) |
| **Denominator:** |  |  |
| Weighted-average number of ordinary shares outstanding – basic  | 442372 | 51774702 |
| Weighted-average effect of dilutive securities: |  |  |
| &nbsp;&nbsp;&nbsp; Assumed conversion of Pre-2024 SPA Preferred Shares  |  | 309357 |
| &nbsp;&nbsp;&nbsp; Assumed conversion of dilutive liability-classified convertible instruments  |  | 81383 |
| Denominator for diluted loss per share attributable to ordinary shareholders  | 44372 | 52165442 |
| &nbsp;&nbsp;&nbsp; Net Earnings (Loss) per share attributable to ordinary shareholders – basic  | $(10.67) | $0.08 |
| &nbsp;&nbsp;&nbsp; Net loss per share attributable to ordinary shareholders – diluted  | $(10.67) | $(0.09) |

---

\*)

After adjusting for the reverse stock split. See note 16

The following instruments were not included in the computation of diluted earnings per share because of their anti-dilutive effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Post 2024 SPA Preferred Shares (see Note 12(b));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ Equity-classified warrants over ordinary shares (see Note 10).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ Share-based compensation (see Note 12(e)).

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Notes to the Consolidated Financial Statements

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

#### N OTE 16 — S UBSEQUENT E VENTS:
The Company has evaluated subsequent events through March 30, 2026, except for the reverse stock split on May 28, 2026. The Company received a further 673 on account of the 2025 SAFEs between January 1, 2026 and the date of the signing of these financial statements (March 30, 2026).

On May 28, 2026, the Company's shareholders approved, and the Company effected, a reverse split at a ratio of one-for-2060, pursuant to which holders of all our Ordinary and Preferred Shares received one Ordinary or Preferred Share as the case may be for every 2060 Ordinary Shares held. The share numbers each class of our issued and authorized share capital, and per share amounts in this report, have all been revised to reflect such reverse split.

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### 2,150,000 Ordinary Shares
![[MISSING IMAGE: lg_silentiumsilencchip-4clr.jpg]](lg_silentiumsilencchip-4clr.jpg)

### Silentium Ltd.

#### PRELIMINARY PROSPECTUS

### ThinkEquity
, 2026

 **Through and including , 2026 (the 25<sup>th</sup> day after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.** 

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### Part II

### I NFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 6.

#### Indemnification of Directors, Officers and Employees.

#### Indemnification
The Israeli Companies Law 5759-2999, or the Companies Law, and the Israeli Securities Law, 5728-1968, or the Securities Law, provide that a company may indemnify an office holder against the following liabilities and expenses incurred for acts performed by him or her as an office holder, either pursuant to an undertaking made in advance of an event or following an event, provided its articles of association include a provision authorizing such indemnification:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ a financial liability imposed on him or her in favor of another person by any judgment concerning an act performed in his or her capacity as an office holder, including a settlement or arbitrator's award approved by a court;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reasonable litigation expenses, including attorneys' fees, expended by the office holder (a) as a result of an investigation or proceeding instituted against him or her by an authority authorized to conduct such investigation or proceeding, provided that (1) no indictment (as defined in the Companies Law) was filed against such office holder as a result of such investigation or proceeding; and (2) no financial liability as a substitute for the criminal proceeding (as defined in the Companies Law) was imposed upon him or her as a result of such investigation or proceeding, or, if such financial liability was imposed, it was imposed with respect to an offense that does not require proof of criminal intent; or (b) in connection with a monetary sanction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ reasonable litigation expenses, including attorneys' fees, expended by the office holder or imposed on him or her by a court (1) in proceedings that the company institutes, or that another person institutes on the company's behalf, against him or her; (2) in a criminal proceedings of which he or she was acquitted; or (3) as a result of a conviction for a crime that does not require proof of criminal intent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ expenses incurred by an office holder in connection with an Administrative Procedure under the Securities Law, including reasonable litigation expenses and reasonable attorneys' fees. An "Administrative Procedure" is defined as a procedure pursuant to chapters H3 (Monetary Sanction by the Israeli Securities Authority), H4 (Administrative Enforcement Procedures of the Administrative Enforcement Committee) or I1 (Arrangement to prevent Procedures or Interruption of procedures subject to conditions) to the Securities Law.

The Companies Law also permits a company to undertake in advance to indemnify an office holder, provided that if such indemnification relates to financial liability imposed on him or her, as described above, then the undertaking should be limited and shall detail the following foreseen events and amount or criterion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ to events that in the opinion of the board of directors can be foreseen based on the company's activities at the time that the undertaking to indemnify is made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ➢ in amount or criterion determined by the board of directors, at the time of the giving of such undertaking to indemnify, to be reasonable under the circumstances.

We intend to enter into indemnification agreements with all of our directors and with all members of our senior management, subject to the listing of our securities on the NYSE American. Each such indemnification agreement will provide the office holder with indemnification permitted under applicable law and up to a certain amount, and to the extent that these liabilities are not covered by directors and officers' insurance.

#### Exculpation
Under the Companies Law, an Israeli company may not exculpate an office holder from liability for a breach of his or her duty of loyalty, but may exculpate in advance an office holder from his or her liability

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Part II

to the company, in whole or in part, for damages caused to the company as a result of a breach of his or her duty of care (other than in relation to distributions), but only if a provision authorizing such exculpation is included in its articles of association. Our amended and restated articles of association provide that we may exculpate, in whole or in part, any office holder from liability to us for damages caused to the company as a result of a breach of his or her duty of care, but prohibit an exculpation from liability arising from a company's transaction in which our controlling shareholder or officer has a personal interest. Subject to the aforesaid limitations, under the indemnification agreements, we exculpate and release our office holders from any and all liability to us related to any breach by them of their duty of care to us to the fullest extent permitted by law.

#### Limitations
The Companies Law provides that the Company may not exculpate or indemnify an office holder nor enter into an insurance contract that would provide coverage for any liability incurred as a result of any of the following: (1) a breach by the office holder of his or her duty of loyalty unless (in the case of indemnity or insurance only, but not exculpation) the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice us; (2) a breach by the office holder of his or her duty of care if the breach was carried out intentionally or recklessly (as opposed to merely negligently); (3) any act or omission committed with the intent to derive an illegal personal benefit; or (4) any fine, monetary sanction, penalty or forfeit levied against the office holder.

Under the Companies Law, exculpation, indemnification and insurance of office holders in a public company must be approved by the compensation committee and the board of directors and, with respect to certain office holders or under certain circumstances, also by the shareholders.

Our amended and restated articles of association permit us to exculpate (subject to the aforesaid limitation), indemnify and insure our office holders to the fullest extent permitted or to be permitted by the Companies Law.

#### Item 7.

#### Recent Sales of Unregistered Securities.
The following list sets forth information as to all securities we have sold since January 1, 2023, which were not registered under the Securities Act.

In October 2022, we entered into a loan agreement, or the 2022 Loan Agreement, with Bank Mizrahi Tefahot Ltd., or the Bank, for a long-term loan, or the 2022 Loan, of up to $4,000,000 to be repaid in 30 monthly payments beginning six months after the initial drawdown, which bears interest at a rate of 7.5% plus Term SOFR per annum. In October 2022, we drew down the first installment of $2,000,000, followed by a second drawdown of $1,000,000 in February 2023. In 2024 and 2025 the Bank agreed to defer principal repayments on the outstanding balance of the 2022 Loan. As part of the terms of the 2022 Loan Agreement, we extended the term of the Bank's previously outstanding warrant, under which it is entitled to purchase 2,185 Ordinary Shares at an exercise price of $183 per share. Alternatively, the Bank is entitled to require a cash payment equal to $300,000, or the Alternative Payment, upon the closing of this offering. The Bank has agreed to defer its decision regarding the exercise of the warrants until at least six months after the completion of this offering, provided that such closing shall occur before July 20, 2026. In addition, we issued to the Bank an additional new warrant, or the Additional Warrant, which entitles the Bank to invest $300,000 in consideration for 44,810 Preferred C Shares at an exercise price of $6.7 per share in addition to 200% warrant coverage exercisable at an exercise price of $6.7 per share, or alternatively to participate as an investor in the 2025 SAFE with an investment of $300,000 in lieu of exercising such Additional Warrant. Alternatively, the Bank is entitled to require a cash payment equal to $375,000, upon the closing of this offering. The Bank has agreed to defer its decision regarding the exercise of the warrants until at least six months after the completion of this offering, provided that such closing shall occur before July 20, 2026.

Pursuant to the Purchase and Recapitalization Agreement executed in September 2024, the Company issued an aggregate of 541,449 Preferred C Shares to certain investors listed therein, at a price of $6.7 per share, for aggregate net proceeds of approximately $3.6 million. Under the terms of the Purchase and

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Part II

Recapitalization Agreement, all then-outstanding preferred shares of the Company were converted into Ordinary Shares on a one-to-one basis, except that certain preferred shares held by participating investors were converted into the following series of preferred shares: 6,201 Preferred A-1 shares, 4,700 Preferred A-2 shares, 1,040 Preferred A-3 shares, 2,812 Preferred A-4 shares, and 22,943 Preferred A-5 shares.

In September 2024, in the framework of the Purchase and Recapitalization Agreement, the Company converted a SAFE investment totaling $2,675,000 into 153,311 Preferred B-1 Shares. In addition, the warrants of each SAFE investor were amended, by way of entitling each investor to purchase an additional Preferred B-2 Share with respect to each Preferred B-1 Share purchased by it in the framework of the round, at an exercise price of $17.45 per share.

Pursuant to the Subscription Agreement executed in June 2025, the Company issued an aggregate of 202,683 Preferred C Shares to certain investors listed therein, at a price per share of $6.7, including warrants to purchase 405,366 Preferred C Shares at an exercise price of $6.7 per share, for aggregate net proceeds of approximately $1.4 million.

Between September 2025 and May 2026, the Company signed the 2025 SAFEs with certain investors for an aggregate amount of $2,991,200, including approximately $1,666,800 in committed capital from SAFEs executed between January 2026 and May 2026, of which $34,700 remains unfunded as of June 8, 2026. Upon completion of this offering, the 2025 SAFEs will automatically convert into a number of Ordinary Shares, based on a price per share that reflects a pre-money valuation of $3,000,000 for our company or equal to the purchase amount divided by the per Ordinary Share price in this offering discounted by 25%, whichever calculation results in a greater number of shares for the investor.

The sales of the above securities were deemed to be exempt from registration under the Securities Act because they were made outside of the United States of America to certain non-U.S. individuals or entities pursuant to Regulation S or, in reliance upon the exemption from registration provided under Section 4(a)(2) of the Securities Act and the regulations promulgated thereunder.

Additionally, since January 1, 2023, we have granted share options to employees, directors, consultants and service providers under our 2013 Plan covering an aggregate of 317,238 Ordinary Shares, with exercise prices ranging from $3.36 to $45.73 per share.

We claimed exemption from registration under the Securities Act for the option grants described above under Section 4(a)(2), Regulation S, or under Rule 701 of the Securities Act as transactions pursuant to written compensatory plans or pursuant to a written contract relating to compensation.

No underwriters were employed in connection with the securities issuances set forth in this Item.

#### Item 8.

#### Exhibits and Financial Statement Schedules.
**(a)** **Exhibits.** See the Exhibit Index attached to this registration statement, which is incorporated by reference herein.

**(b)** **Financial Statement Schedules.** Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto.

#### Item 9.

#### Undertakings.
The undersigned Registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the

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Part II

Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned Registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this Registration Statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this Registration Statement as of the time it was declared effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

#### E XHIBIT I NDEX

---

| | |
|:---|:---|
| **EXHIBIT <br> NUMBER** | **EXHIBIT DESCRIPTION**  |
| &nbsp;&nbsp; 1.1 | [Form of Underwriting Agreement](tm266724d10_ex1-1.htm)  |
| &nbsp;&nbsp; 3.1 | [Amended and Restated Articles of Association of the Registrant, as currently in effect](tm266724d10_ex3-1.htm)  |
| &nbsp;&nbsp; 3.2 | [Amended and Restated Articles of Association of the Registrant to be in effect upon the consummation of this offering](tm266724d10_ex3-2.htm)  |
| &nbsp;&nbsp; 4.1 | [Form of Representative's Warrant Agreement (included as Exhibit A in Exhibit 1.1)](tm266724d10_ex1-1.htm)  |
| &nbsp;&nbsp; 5.1 | [Opinion of Goldfarb Gross Seligman & Co, Israeli counsel to the Registrant, as to the validity of the Ordinary Shares](tm266724d10_ex5-1.htm)  |
| &nbsp;&nbsp; 5.2 | [Opinion of Greenberg Traurig, P.A., U.S. counsel to the Registrant](tm266724d10_ex5-2.htm)  |
| 10.1 | [Form of Indemnification Agreement](tm266724d10_ex10-1.htm)  |
| 10.2+ | [Compensation Policy](tm266724d10_ex10-2.htm)  |
| 10.3 | [Investors' Rights Agreement, dated September 5, 2024, by and among the Company and the other parties thereto](tm266724d10_ex10-3.htm)  |
| 10.4+ | [2013 Israeli Share Option Plan](tm266724d10_ex10-4.htm)  |
| 10.5#^ | [Loan Agreement, dated October 20, 2022 by and between the Company and Bank Mizrahi Tefahot Ltd.](tm266724d10_ex10-5.htm)  |
| 10.6#^ | [Loan Agreement, dated December 23, 2024 by and between the Company and Bank Mizrahi Tefahot Ltd.](tm266724d10_ex10-6.htm)  |
| 10.7 | [Warrant issued by the Company to Bank Mizrahi Tefahot Ltd, dated April 1, 2020.](tm266724d10_ex10-7.htm)  |
| 10.8 | [Warrant issued by the Company to Bank Mizrahi Tefahot Ltd, dated October 20, 2022.](tm266724d10_ex10-8.htm)  |
| 10.9 | [Series C Preferred Share Purchase and Recapitalization Agreement, dated September 5, 2024, by and among the Company, Dr. Sigang Qin, Benjamin Weiss, Black Inc., Terra Venture Partners S.C.A. SICAR and Terra Venture Partners, L.P., Astorre Modena (as a trustee), Elias Wexler and Yin Tsung (Chris) Chan](tm266724d10_ex10-9.htm)  |

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Part II

---

| | |
|:---|:---|
| **EXHIBIT <br> NUMBER**  | **EXHIBIT DESCRIPTION**  |
| 21.1 | [List of subsidiaries](tm266724d10_ex21-1.htm)  |
| 23.1 | [Consent of Ziv Haft, Certified Public Accountants, Isr., BDO Member Firm, an independent registered public accounting firm](tm266724d10_ex23-1.htm)  |
| 23.2 | [Consent of Goldfarb Gross Seligman & Co (included in Exhibit 5.1)](tm266724d10_ex5-1.htm)  |
| 23.3 | [Consent of Greenberg Traurig, P.A. (contained in Exhibit 5.2)](tm266724d10_ex5-2.htm)  |
| 24.1 | [Power of Attorney (included in signature pages of Registration Statement)](#tSIG)  |
| 107 | [Filing Fee Table](tm266724d9_ex-filingfees.htm)  |

---

+

Indicates a management contract or any compensatory plan, contract or arrangement.

#

English translation of original Hebrew document.

^

Portions of this exhibit (indicated by asterisks) have been omitted under rules of the U.S. Securities and Exchange Commission permitting the confidential treatment of select information.

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### S IGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Ness Ziona, Israel on this 8th day of June, 2026.

#### SILENTIUM LTD.
By:

*/s/ Yoel Naor* 

Name: Yoel Naor

Title: Chief Executive Officer and Director

### P OWER OF ATTORNEY
The undersigned officers and directors of Silentium Ltd. hereby constitute and appoint Yoel Naor with full power of substitution, our true and lawful attorney-in-fact and agent to take any actions to enable the Company to comply with the Securities Act, and any rules, regulations and requirements of the SEC, in connection with this Registration Statement on Form F-1, including the power and authority to sign for us in our names in the capacities indicated below any and all further amendments to this registration statement and any other registration statement filed pursuant to the provisions of Rule 462 under the Securities Act.

Pursuant to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature**  | **Title**  | **Date**  |
| */s/ Yoel Naor* <br>Yoel Naor  | Chief Executive Officer, Director <br> (Principal Executive Officer) | June 8, 2026  |
| */s/ Evan Fishman* <br>Evan Fishman  | Chief Financial Officer <br> (Principal Financial and Accounting Officer) | June 8, 2026  |
| */s/ Harold Wiener* <br>Dr. Harold Wiener  | Director | June 8, 2026  |
| */s/ Yue Lei Shen* <br>Yue Lei Shen  | Director | June 8, 2026  |
| */s/ Larry Krauss* <br>Larry Krauss  | Director | June 8, 2026  |
| */s/ Sigang Qin* <br>Dr. Sigang Qin  | Director | June 8, 2026  |
| */s/ Benjamin Eli Weiss* <br>Benjamin Eli Weiss  | Director | June 8, 2026  |

---

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### S IGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the requirements of the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of Silentium Ltd., has signed this Registration Statement on this 8th day of June, 2026.

#### Silentium USA Inc.

#### Authorized U.S. Representative
 */s/ Yoel Naor* 

Name: Yoel Naor

Title: Authorized Representative

------

## Exhibit 1.1

**Exhibit 1.1**

**UNDERWRITING AGREEMENT**

**between**

**SILENTIUM LTD.**

**and**

**THINKEQUITY LLC**

**as Representative of the Several Underwriters**

**SILENTIUM LTD.**

**<u>UNDERWRITING AGREEMENT</u>**

New York, New York<br> [●], 2026

ThinkEquity LLC

As Representative of the several Underwriters named on Schedule 1 attached hereto

17 State Street, 41<sup>st</sup> Fl

New York, NY 10004

Ladies and Gentlemen:

The undersigned, Silentium Ltd., a corporation formed under the laws of the State of Israel (collectively with its affiliates, including, without limitation, all entities disclosed or described in the Registration Statement (as hereinafter defined) as being affiliates of Silentium Ltd. (the "**Company**"), hereby confirms its agreement (this "**Agreement**") with ThinkEquity LLC (hereinafter referred to as "**you**" (including its correlatives) or the "**Representative**") and with the other underwriters named on <u>Schedule 1</u> hereto for which the Representative is acting as representative (the Representative and such other underwriters being collectively called the "**Underwriters**" or, individually, an "**Underwriter**") as follows:

1. <u>Purchase and Sale of Securities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 *<u>Firm Shares</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1. <u>Nature and Purchase of Firm Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell to the several Underwriters, an aggregate of [●] shares (the "**Firm Shares**") of the Company's ordinary shares, no par value (the "**Ordinary Shares**"). The net proceeds of such Firm Shares will be deposited with the Company's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm Shares set forth opposite their respective names on <u>Schedule 1</u> attached hereto and made a part hereof at a purchase price of $[●] per share (93% of the per Firm Share offering price). The Firm Shares are to be offered initially to the public at the offering price set forth on the cover page of the Prospectus (as defined in Section 2.1.1 hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2. <u>Shares Payment and Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Delivery and payment for the Firm Shares shall be made at 10:00 a.m., Eastern time, on the first (1<sup>st</sup>) Business Day (as defined below) following the date of this Agreement (or the second (2<sup>nd</sup>) Business Day following the date of this Agreement if this Agreement is entered into after 4:01 p.m., Eastern time) or at such earlier time as shall be agreed upon by the Representative and the Company, at the offices of Carter Ledyard & Milburn LLP, 28 Liberty St., New York, NY 10005 ("**Representative Counsel**"), or at such other place (or remotely by e-mail or other electronic transmission) as shall be agreed upon by the Representative and the Company. The hour and date of delivery and payment for the Firm Shares is called the "**Closing Date**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Payment for the Firm Shares shall be made on the Closing Date by wire transfer in U.S. dollars (same day) funds, payable to the order of the Company upon delivery of the certificates (in form and substance satisfactory to the Underwriters) representing the Firm Shares (or through the facilities of the Depository Trust Company ("**DTC**")) for the account of the Underwriters. The Firm Shares shall be registered in such name or names and in such authorized denominations as the Representative may request in writing at least one (1) full Business Day prior to the Closing Date. The Company shall not be obligated to sell or deliver the Firm Shares except upon tender of payment by the Representative for all of the Firm Shares. The term "**Business Day**" means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions are authorized or obligated by law to close in New York, New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 *<u>Over-allotment Option</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1. <u>Option Shares</u>. For the purposes of covering any over-allotments in connection with the distribution and sale of the Firm Shares, the Company hereby grants to the Representative an option to purchase up to [●] additional Ordinary Shares (the "**Option Shares**"), representing fifteen percent (15%) of the Firm Shares sold in the offering, from the Company (the "**Over-allotment Option**"). The net proceeds of such Option Shares will be deposited with the Company's account. The purchase price to be paid per Option Share shall be equal to the price per Firm Share set forth in Section 1.1.1 hereof. The Firm Shares and the Option Shares are hereinafter referred to together as the "**Public Shares**." The offering and sale of the Public Shares is hereinafter referred to as the "**Offering**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2. <u>Exercise of Option</u>. The Over-allotment Option granted pursuant to Section 1.2.1 hereof may be exercised by the Representative as to all (at any time) or any part (from time to time) of the Option Shares within forty-five (45) days after the Effective Date. The Representative shall not be under any obligation to purchase any Option Shares prior to the exercise of the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of oral notice to the Company from the Representative, which must be confirmed in writing by overnight mail or e-mail setting forth the number of Option Shares to be purchased and the date and time for delivery of and payment for the Option Shares (the "**Option Closing Date**"), which shall not be later than one (1) full Business Day after the date of the notice or such other time as shall be agreed upon by the Company and the Representative, at the offices of Representative Counsel or at such other place (including remotely by e-mail) as shall be agreed upon by the Company and the Representative. If such delivery and payment for the Option Shares does not occur on the Closing Date, each Option Closing Date will be as set forth in the notice. Upon exercise of the Over-allotment Option with respect to all or any portion of the Option Shares, subject to the terms and conditions set forth herein, (i) the Company shall become obligated to sell to the Underwriters the number of Option Shares specified in such notice and (ii) each of the Underwriters, acting severally and not jointly, shall purchase that portion of the total number of Option Shares then being purchased as set forth in <u>Schedule 1</u> opposite the name of such Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3. <u>Payment and Delivery</u>. Payment for the Option Shares shall be made on each Option Closing Date by wire transfer in U.S. dollars (same day) funds, payable to the order of the Company upon delivery to you of certificates (in form and substance satisfactory to the Representative) representing the Option Shares (or through the facilities of DTC) for the account of the Underwriters. The Option Shares shall be registered in such name or names and in such authorized denominations as the Representative may request in writing at least one (1) full Business Day prior to each Option Closing Date. The Company shall not be obligated to sell or deliver the Option Shares except upon tender of payment by the Representative for applicable Option Shares. Each Option Closing Date may be simultaneous with, but not earlier than, the Closing Date, and in the event that such time and date are simultaneous with the Closing Date, the term "**Closing Date**" shall refer to the time and date of delivery of the Firm Shares and the Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 *<u>Representative's Warrants</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1. <u>Purchase Warrants</u>. The Company hereby agrees to issue and sell to the Representative (and/or its designees) on the Closing Date and each Option Closing Date, as applicable, a warrant (each a "**Representative's Warrant**", and together, the "**Representative's Warrants**") to purchase up to an aggregate number of Ordinary Shares representing 5% of the Public Shares sold on such date, each for an aggregate purchase price of $100.00. The Ordinary Shares issuable upon exercise thereof are hereinafter referred to as the "**Representative's Shares**". The Representative's Warrants and the Representative's Shares are hereinafter referred to together as the "**Representative's Securities**". Each Representative's Warrant shall be in the form attached hereto as <u>Exhibit A</u>, shall be exercisable, in whole or in part, during the four and one half (4.5) years commencing on a date which is one hundred eighty (180) days after the Effective Date at a price per Ordinary Share of $[●], which is equal to one hundred twenty five percent (125%) of the public offering price per Firm Share in the Offering. Each Representative's Warrant will provide for registration rights (including a one-time demand registration right and unlimited piggyback rights) and customary anti-dilution provisions (for stock dividends and splits and recapitalizations) consistent with the Financial Industry Regulatory Authority, Inc ("**FINRA**") Rule 5110, and further, the Representative's Shares shall be reduced if necessary to comply with FINRA rules or regulations. The Representative understands and agrees that there are significant restrictions pursuant to Financial Industry Regulatory Authority, Inc. ("**FINRA**") Rule 5110 against transferring the Representative's Warrants and the Representative's Shares during the one hundred eighty (180) days after the Effective Date and by its acceptance thereof shall agree that it will not sell, transfer, assign, pledge or hypothecate the Representative's Warrant, or any portion thereof, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities for a period of one hundred eighty (180) days following the Effective Date to anyone other than (i) an Underwriter or a selected dealer in connection with the Offering or (ii) a bona fide officer or partner of the Representative or of any such Underwriter or selected dealer; and only if any such transferee agrees to the foregoing lock-up restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2. <u>Delivery</u>. Delivery of a Representative's Warrant shall be made on the Closing Date and on each Option Closing Date, if any, and shall be issued in the name or names and in such authorized denominations as the Representative may request.

2. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to the Underwriters as of the Applicable Time (as defined below), as of the Closing Date and as of each Option Closing Date, if any, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 *<u>Filing of Registration Statement</u>.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. <u>Pursuant to the Securities Act</u>. The Company has filed with the U.S. Securities and Exchange Commission (the "**Commission**") a registration statement, and an amendment or amendments thereto, on Form S-1 (File No. 333-[●]), including any related prospectus or prospectuses, for the registration of the Public Shares and the Representative's Securities under the Securities Act of 1933, as amended (the "**Securities Act**"), which registration statement and amendment or amendments have been prepared by the Company in all material respects in conformity with the requirements of the Securities Act and the rules and regulations of the Commission under the Securities Act (the "**Securities Act Regulations**") and contains and will contain all material statements that are required to be stated therein in accordance with the Securities Act and the Securities Act Regulations. Except as the context may otherwise require, such registration statement, as amended, on file with the Commission at the time the registration statement became effective (including the Preliminary Prospectus (as defined below) included in the registration statement, financial statements, schedules, exhibits and all other documents filed as a part thereof or incorporated therein and all information deemed to be a part thereof as of the Effective Date pursuant to paragraph (b) of Rule 430A of the Securities Act Regulations (the "**Rule 430A Information**")), is referred to herein as the "**Registration Statement**." If the Company files any registration statement pursuant to Rule 462(b) of the Securities Act Regulations, then after such filing, the term "**Registration Statement**" shall include such registration statement filed pursuant to Rule 462(b). The Registration Statement has been declared effective by the Commission on the date of this Agreement.

Each prospectus used prior to the effectiveness of the Registration Statement, and each prospectus that omitted the Rule 430A Information that was used after such effectiveness and prior to the execution and delivery of this Agreement, is herein called a "**Preliminary Prospectus**." The Preliminary Prospectus, subject to completion, dated [●], 2026, that was included in the Registration Statement immediately prior to the Applicable Time is hereinafter called the "**Pricing Prospectus**." The final prospectus in the form first furnished to the Underwriters for use in the Offering is hereinafter called the "**Prospectus**." Any reference to the "**most recent Preliminary Prospectus**" shall be deemed to refer to the latest Preliminary Prospectus included in the Registration Statement.

"**Applicable Time**" means [●] [a.m./p.m.], Eastern time, on the date of this Agreement.

"**Issuer Free Writing Prospectus**" means any "issuer free writing prospectus," as defined in Rule 433 of the Securities Act Regulations ("**Rule 433**"), including without limitation any "free writing prospectus" (as defined in Rule 405 of the Securities Act Regulations) relating to the Public Shares that is (i) required to be filed with the Commission by the Company, (ii) a "road show that is a written communication" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission, or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description of the Public Shares or of the Offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g).

"**Issuer General Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors (other than a "*bona fide* electronic road show," as defined in Rule 433 (the "**Bona Fide Electronic Road Show**")), as evidenced by its being specified in <u>Schedule 2-B</u> hereto.

"**Issuer Limited Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing Prospectus.

"**Pricing Disclosure Package**" means any Issuer General Use Free Writing Prospectus issued at or prior to the Applicable Time, the Pricing Prospectus, and the information included on <u>Schedule 2-A</u> hereto, all considered together.

For the purposes of this Agreement "**Knowledge**" means, when referring to the 'knowledge' of the Company, or any similar phrase or qualification based on knowledge, the actual knowledge of Company's officers and/or directors, and the knowledge that each such person would have obtained after making due and appropriate inquiry with respect to the particular matter in question and in the exercise of reasonable care in the performance of such person's duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. <u>Pursuant to the Exchange Act</u>. The Company has filed with the Commission a Form 8-A (File Number 000-[●]) providing for the registration pursuant to Section 12(b) under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), of the Ordinary Shares, which Registration Statement complied with the Exchange Act. The registration of the Ordinary Shares and related Form 8-A under the Exchange Act has been declared effective by the Commission on or prior to the date of this Agreement. The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Ordinary Shares under the Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Stock Exchange Listing</u>. The Ordinary Shares have been approved for listing on the NYSE American (the "**Exchange**"), and the Company has taken no action designed to, or likely to have the effect of, delisting the Ordinary Shares from the Exchange, nor has the Company received any notification that the Exchange is contemplating terminating such listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>No Stop Orders, etc</u>. Neither the Commission nor, to the Company's knowledge, any state regulatory authority has issued any order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or the Prospectus or has instituted or, to the Company's knowledge, threatened to institute, any proceedings with respect to such an order. The Company has complied with each request (if any) from the Commission for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Disclosures in Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1. <u>Compliance with Securities Act and 10b-5 Representation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all material respects with the requirements of the Securities Act and the Securities Act Regulations. Each Preliminary Prospectus, including the prospectus filed as part of the Registration Statement as originally filed or as part of any amendment or supplement thereto, and the Prospectus, at the time each was filed with the Commission, complied in all material respects with the requirements of the Securities Act and the Securities Act Regulations. Each Preliminary Prospectus delivered to the Underwriters for use in connection with this Offering and the Prospectus was or will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to the Commission's Electronic Data Gathering, Analysis, and Retrieval ("**EDGAR**") system, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Neither the Registration Statement nor any amendment thereto, at its effective time, as of the Applicable Time, at the Closing Date or at any Option Closing Date (if any), contained, contains or will contain an untrue statement of a material fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Pricing Disclosure Package, as of the Applicable Time, at the Closing Date or at any Option Closing Date (if any), did not, does not and will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Limited Use Free Writing Prospectus hereto does not conflict with the information contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, and each such Issuer Limited Use Free Writing Prospectus, as supplemented by and taken together with the Pricing Prospectus as of the Applicable Time, did not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to statements made or statements omitted in reliance upon and in conformity with written information furnished to the Company with respect to the Underwriters by the Representative expressly for use in the Registration Statement, the Pricing Prospectus or the Prospectus or any amendment thereof or supplement thereto. The parties acknowledge and agree that such information provided by or on behalf of any Underwriter consists solely of the following disclosure contained in the "Underwriting" section of the Prospectus: (i) the third sentence of the subsection entitled "Discounts and Commissions" related to concessions; (ii) the subsection entitled "Discretionary Accounts"; (iii) the first three paragraphs under the subsection entitled "Stabilization"; (iv) the subsection entitled "Electronic Offer, Sale and Distribution of Shares"; and (v) the subsection entitled "Other Relationships (the "**Underwriters' Information**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Neither the Prospectus nor any amendment or supplement thereto (including any prospectus wrapper), as of its issue date, at the time of any filing with the Commission pursuant to Rule 424(b), at the Closing Date or at any Option Closing Date, included, includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to the Underwriters' Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2. <u>Disclosure of Agreements</u>. The agreements and documents described in the Registration Statement, the Pricing Disclosure Package and the Prospectus conform in all material respects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the Securities Act Regulations to be described in the Registration Statement, the Pricing Disclosure Package and the Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement, the Pricing Disclosure Package and the Prospectus, or (ii) that is material to the Company's business, has been duly authorized and validly executed by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company's knowledge, the other parties thereto, in accordance with its terms, except: (a) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (b) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws, and (c) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. None of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the Company's knowledge, any other party is in default thereunder and, to the Company's knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder. To the Company's knowledge, performance by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule, regulation, ordinance, judgment, order or decree of any governmental or regulatory agency, body, authority or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses (each, a "**Governmental Entity**"), including, without limitation, those relating to environmental laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3. <u>Prior Securities Transactions</u>. No securities of the Company have been sold by the Company or by or on behalf of, or for the benefit of, any person or persons controlling, controlled by or under common control with the Company, except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Preliminary Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.4. <u>Regulations</u>. The disclosures in the Registration Statement, the Pricing Disclosure Package and the Prospectus concerning the effects of federal, state, local and all foreign regulation on the Offering and the Company's business as currently contemplated are accurate, correct and complete in all material respects and no other such regulations are required to be disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus which are not so disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.5. <u>No Other Distribution of Offering Materials</u>. The Company has not, directly or indirectly, distributed, and will not distribute, to public investors any offering material in connection with the Offering, other than any Preliminary Prospectus, the Pricing Disclosure Package, the Prospectus and other materials, if any, permitted under the Securities Act and consistent with Section 3.2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Changes After Dates in Registration Statement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1. <u>No Material Adverse Change</u>. Since the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package and the Prospectus, except as otherwise specifically stated therein: (i) there has been no material adverse change (including in the financial position or results of operations of the Company), nor any change or development in the business of the Company which, singularly or in the aggregate, would involve a material adverse change or a prospective material adverse change, whether or not arising from transactions in the ordinary course of business, in or affecting the business, general affairs, management, condition (financial or otherwise), results of operations, shareholders' equity, assets, properties or prospects of the Company (a "**Material Adverse Change**"); (ii) there have been no material transactions entered into by the Company, other than as contemplated pursuant to this Agreement; and (iii) no officer (as defined in Rule 16a-1(f) of the Exchange Act) or director of the Company has resigned from any position with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2. <u>Recent Securities Transactions, etc</u>. Subsequent to the respective dates as of which information is given in the Registration Statement, the Pricing Disclosure Package and the Prospectus, and except as may otherwise be indicated or contemplated herein or disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company has not: (i) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or made any other distribution on or in respect to its capital stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Independent Accountants</u>. To the knowledge of the Company, Ziv Haft, a firm in the BDO Global Network (the "**Auditor**"), whose report is filed with the Commission as part of the Registration Statement, the Pricing Disclosure Package and the Prospectus, is an independent registered public accounting firm as required by the Securities Act and the Securities Act Regulations and the Public Company Accounting Oversight Board. The Auditor has not, during the periods covered by the financial statements included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Financial Statements, etc</u>. The financial statements, including the notes thereto and supporting schedules included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, fairly the financial position and the results of operations of the Company at the dates and for the periods to which they apply; and such financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP"), consistently applied throughout the periods involved (provided that unaudited interim financial statements are subject to year-end audit adjustments that are not expected to be material in the aggregate and do not contain all footnotes required by GAAP); and the supporting schedules included in the Registration Statement present fairly the information required to be stated therein. Except as included therein, no historical or pro forma financial statements are required to be included in the Registration Statement, the Pricing Disclosure Package or the Prospectus under the Securities Act or the Securities Act Regulations. The pro forma and pro forma as adjusted financial information and the related notes, if any, included in the Registration Statement, the Pricing Disclosure Package and the Prospectus have been properly compiled and prepared in accordance with the applicable requirements of the Securities Act and the Securities Act Regulations and present fairly the information shown therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein. All disclosures contained in the Registration Statement, the Pricing Disclosure Package or the Prospectus regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission), if any, comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K of the Securities Act, to the extent applicable. Each of the Registration Statement, the Pricing Disclosure Package and the Prospectus discloses all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the Company with unconsolidated entities or other persons that may have a material current or future effect on the Company's financial condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, (a) neither the Company nor any of its direct and indirect subsidiaries, including each entity disclosed or described in the Registration Statement, the Pricing Disclosure Package and the Prospectus as being a subsidiary of the Company (each, a "**Subsidiary**" and, collectively, the "**Subsidiaries**"), has incurred any material liabilities or obligations, direct or contingent, or entered into any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid any dividends or made any distribution of any kind with respect to its capital stock, (c) there has not been any change in the capital stock of the Company or any of its Subsidiaries, or, other than in the course of business, any grants under any stock compensation plan, and (d) there has not been any Material Adverse Change in the Company's long-term or short-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Authorized Capital; Options, etc</u>. The Company had, at the date or dates indicated in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the duly authorized, issued and outstanding capitalization as set forth therein. Based on the assumptions stated in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company will have on the Closing Date the adjusted stock capitalization set forth therein. Except as set forth in, or contemplated by, the Registration Statement, the Pricing Disclosure Package and the Prospectus, on the Effective Date, as of the Applicable Time and on the Closing Date and any Option Closing Date, there will be no stock options, warrants, or other rights to purchase or otherwise acquire any authorized, but unissued Ordinary Shares of the Company or any security convertible or exercisable into Ordinary Shares of the Company, or any contracts or commitments to issue or sell Ordinary Shares or any such options, warrants, rights or convertible securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Valid Issuance of Securities, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.1. <u>Outstanding Securities</u>. All issued and outstanding securities of the Company issued prior to the transactions contemplated by this Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have no rights of rescission, rights of first refusal or rights of participation or similar rights with respect thereto or put rights, and are not subject to personal liability by reason of being such holders; and none of such securities were issued in violation of the preemptive rights, rights of first refusal or rights of participation or similar rights of any holders of any security of the Company or similar contractual rights granted by the Company. The authorized Ordinary Shares conform in all material respects to all statements relating thereto contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus. The offers and sales of the outstanding Ordinary Shares were at all relevant times either registered under the Securities Act and the applicable state securities or "**blue sky**" laws or, based in part on the representations and warranties of the purchasers of such shares, exempt from such registration requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.2. <u>Securities Sold Pursuant to this Agreement</u>. The Public Shares and Representative's Securities have been duly authorized for issuance and sale and, the Public Shares and Representative's Shares, when issued and paid for, will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; the Public Shares and Representative's Securities are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Public Shares and Representative's Securities has been duly and validly taken. The Public Shares and Representative's Securities conform in all material respects to all statements with respect thereto contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus. All corporate action required to be taken for the authorization, issuance and sale of the Representative's Warrant has been duly and validly taken; the Representative's Shares have been duly authorized and reserved for issuance by all necessary corporate action on the part of the Company and when issued and paid for in accordance with the Representative's Warrant, such Ordinary Shares will be validly issued, fully paid and non-assessable; the holders thereof are not and will not be subject to personal liability by reason of being such holders; and such Ordinary Shares are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Registration Rights of Third Parties</u>. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, no holders of any securities of the Company or any rights exercisable for or convertible or exchangeable into securities of the Company have the right to require the Company to register any such securities of the Company under the Securities Act or to include any such securities in a registration statement to be filed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Validity and Binding Effect of Agreements</u>. This Agreement and the Representative's Warrant have been duly and validly authorized by the Company, and, when executed and delivered, will constitute, the valid and binding agreements of the Company, enforceable against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally; (ii) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>No Conflicts, etc</u>. The execution, delivery and performance by the Company of this Agreement, the Representative's Warrant Agreement and all ancillary documents, the consummation by the Company of the transactions herein and therein contemplated and the compliance by the Company with the terms hereof and thereof do not and will not, with or without the giving of notice or the lapse of time or both: (i) result in a material breach of, or conflict with any of the terms and provisions of, or constitute a material default under, or result in the creation, modification, termination or imposition of any lien, charge, mortgage, pledge, security, interest, claim, preferential arrangement, encumbrance or restriction of any kind whatsoever upon any property or assets of the Company pursuant to the terms of any agreement or instrument, license or permit, to which the Company is a party, or to which any of its assets are bound; (ii) result in any violation of the provisions of the Company's Articles of Association (as the same may be amended or restated from time to time, the "**Charter**") or the by-laws of the Company; or (iii) violate any existing applicable law, rule, regulation, judgment, order or decree of any Governmental Entity as of the date of this Agreement), except in the case of clause (iii) for any such breach, conflict, violation, default, lien, charge mortgage, pledge, security, interest, claim, preferential arrangement, encumbrance or restriction that would not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <u>No Defaults; Violations</u>. No material default exists in the due performance and observance of any term, covenant or condition of any material license, contract, indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other material agreement or instrument to which the Company is a party or as to which any property of the Company or by which the Company may be bound or to which any of the properties or assets of the Company is subject. The Company is not in violation of (i) any term or provision of its Charter or by-laws, or (ii) in violation of any franchise, license, permit, applicable law, rule, regulation, judgment, order or decree of any Governmental Entity; except in the case of clause (ii) for any such violation that would not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <u>Corporate Power; Licenses; Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.1. <u>Conduct of Business</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company has all requisite corporate power and authority, and has all necessary consents, authorizations, approvals, orders, licenses, certificates, qualifications, registrations and permits of and from all governmental regulatory officials and bodies that it needs as of the date of this Agreement to conduct its business purpose as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14.2. <u>Transactions Contemplated Herein</u>. The Company has all corporate power and authority to enter into this Agreement and the Representative's Warrant and to carry out the provisions and conditions hereof and thereof, and all consents, authorizations, approvals, orders, licenses, certificates, qualifications and registrations required in connection therewith have been obtained. No consent, authorization or order of, and no filing with, any court, government agency or other body is required for the valid issuance, sale and delivery of the Public Shares and the Representative's Shares and the consummation of the transactions and agreements contemplated by this Agreement and the Representative's Warrant and as contemplated by the Registration Statement, the Pricing Disclosure Package and the Prospectus, except with respect to applicable federal and state securities laws and the rules and regulations of FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <u>D&O Questionnaires</u>. To the Company's knowledge, all information contained in the questionnaires (the "**Questionnaires**") completed by each of the Company's directors and officers immediately prior to the Offering (the "**Insiders**") as supplemented by all information concerning the Company's directors, officers and principal shareholders as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, as well as in the Lock-Up Agreements (as defined in Section 2.26 below), provided to the Underwriters, is true and correct in all material respects and the Company has not become aware of any information which would cause the information disclosed in the Questionnaires to become materially inaccurate and incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <u>Litigation; Governmental Proceedings</u>. There is no action, suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding pending or, to the Company's knowledge, threatened against, or involving the Company or, to the Company's knowledge, any executive officer or director which has not been disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus or in connection with the Company's listing application for the listing of the Ordinary Shares on the Exchange, or which adversely affects or challenges the legality, validity or enforceability of this Agreement or the Representative's Warrant or the issuance of the Public Shares or the Representative's Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <u>Good Standing</u>. The Company has been duly incorporated and is validly existing as a corporation and is in good standing under the laws of the State of Israel as of the date of this Agreement, and is duly qualified to do business and is in good standing in each other jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except where the failure to qualify or be in good standing, singularly or in the aggregate, would not have or reasonably be expected to result in a Material Adverse Change. Each of the Company's subsidiaries have been incorporated and are validly existing as corporations under their respective jurisdiction, and is duly qualified to do business and is in good standing in each other jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except where the failure to qualify or be in good standing, singularly or in the aggregate, would not have or reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <u>Insurance</u>. The Company carries or is entitled to the benefits of insurance, with reputable insurers, in such amounts and covering such risks which the Company believes are adequate, including, but not limited to, directors and officers insurance coverage at least equal to $5,000,000 and all such insurance is in full force and effect. The Company has no reason to believe that it will not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 <u>Transactions Affecting Disclosure to FINRA</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.1. <u>Finder's Fees</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, there are no claims, payments, arrangements, agreements or understandings relating to the payment of a finder's, consulting or origination fee by the Company or any Insider with respect to the sale of the Public Shares hereunder or any other arrangements, agreements or understandings of the Company or, to the Company's knowledge, any of its shareholders that may affect the Underwriters' compensation, as determined by FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.2. <u>Payments Within Twelve (12) Months</u>. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company has not made any direct or indirect payments (in cash, securities or otherwise) to: (i) any person, as a finder's fee, consulting fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who raised or provided capital to the Company; (ii) any FINRA member; or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member, within the twelve (12) months prior to the Effective Date, other than the payment to the Underwriters as provided hereunder in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.3. <u>Use of Proceeds</u>. None of the net proceeds of the Offering will be paid by the Company to any participating FINRA member or its affiliates, except as specifically authorized herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.4. <u>FINRA Affiliation</u>. There is no (i) officer or director of the Company, (ii) beneficial owner of five percent (5%) or more of any class of the Company's securities or (iii) beneficial owner of the Company's unregistered equity securities which were acquired during the one hundred eighty (180) day period immediately preceding the filing of the Registration Statement that is an affiliate or associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and regulations of FINRA). The Company (i) does not have any material lending or other relationship with any bank or lending affiliate of any Underwriter and (ii) does not intend to use any of the proceeds from the sale of the Public Shares to repay any outstanding debt owed to any affiliate of any Underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19.5. <u>Information</u>. All information provided by the Company in its, and, to the Company's knowledge, all of the information provided by the Company's officers and directors in their FINRA questionnaires to Representative Counsel specifically for use by Representative Counsel in connection with its Public Offering System filings (and related disclosure) with FINRA is true, correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <u>Foreign Corrupt Practices Act</u>. Neither the Company nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company or any other person acting on behalf of the Company, has, directly or indirectly, (i) given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) that (a) might subject the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding, (b) if not given in the past, might have had a Material Adverse Change, (c) if not continued in the future, might adversely affect the assets, business, operations or prospects of the Company, or (d) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended (the "**FCPA**") or any applicable non-U.S. anti-bribery statute or regulation; (ii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment; or (iii) received notice of any investigation, proceeding or inquiry by any Governmental Entity regarding any of the matters in clauses (i) or (ii) above; and the Company and, to the knowledge of the Company, the Company's affiliates have conducted their respective businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with the FCPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <u>Compliance with OFAC</u>. Neither the Company nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company or any other person acting on behalf of the Company, is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("**OFAC**"), and the Company will not, directly or indirectly, use the proceeds of the Offering hereunder, or lend, contribute or otherwise make available such proceeds to any joint venture partner or other person or entity, for the purpose of financing the activities of or business with any person, or in any country or territory that currently is the subject or target of any U.S. sanctions administered by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <u>Forward-Looking Statements</u>. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in either the Registration Statement, Pricing Disclosure Package or Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 <u>Money Laundering Laws</u>. The operations of the Company are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the "**Money Laundering Laws**"); and no action, suit or proceeding by or before any Governmental Entity involving the Company with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 <u>Regulatory Filings and Permits</u>. The Company has such permits, licenses, clearances, registrations, exemptions, patents, franchises, certificates of need and other approvals, consents and other authorizations ("**Permits**") issued by the appropriate domestic or foreign regional, federal, state, or local regulatory agencies or bodies necessary to conduct the business of the Company (collectively, the "**Regulatory Permits**"), except for any of the foregoing that would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Change; the Company is in compliance with the requirements of the Regulatory Permits, and all of such Regulatory Permits are valid and in full force and effect; the Company has not received any notice of proceedings relating to the revocation, termination, modification or impairment of rights of any of the Regulatory Permits that, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 <u>Officers' Certificate</u>. Any certificate signed by any duly authorized officer of the Company and delivered to you or to Representative Counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 <u>Lock-Up Agreements. Schedule 3</u> hereto contains a complete and accurate list of the Company's officers, directors and each other owner of the Company's outstanding Ordinary Shares (or securities convertible or exercisable into Ordinary Shares (collectively, the "**Lock-Up Parties**"). The Company has caused each of the Lock-Up Parties to deliver to the Representative an executed Lock-Up Agreement, substantially in the form attached hereto as <u>Exhibit B</u> (the "**Lock-Up Agreement**"), prior to the execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 <u>Subsidiaries.</u> All direct and indirect Subsidiaries of the Company are duly organized and in good standing under the laws of the place of organization or incorporation, and each Subsidiary is in good standing in each jurisdiction in which its ownership or lease of property or the conduct of business requires such qualification, except where the failure to qualify would not have a material adverse effect on the assets, business or operations of the Company taken as a whole. The Company's ownership and control of each Subsidiary is as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 <u>Related Party Transactions</u>. There are no business relationships or related party transactions involving the Company or any other person required by the Securities Act to be described in the Registration Statement, the Pricing Disclosure Package and the Prospectus that have not been described as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 <u>No Relationships with Customers and Suppliers</u>. No relationship, direct or indirect, exists between or among the Company on the one hand, and the directors, officers, 5% or greater shareholders, customers or suppliers of the Company or any of the Company's affiliates on the other hand, which is required to be described in the Pricing Disclosure Package and the Prospectus that has not been so described.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 <u>No Unconsolidated Entities</u>. There are no transactions, arrangements or other relationships between and/or among the Company, any of its affiliates (as such term is defined in Rule 405 of the Securities Act) and any unconsolidated entity, including, but not limited to, any structured finance, special purpose or limited purpose entity that could reasonably be expected to materially affect the Company's liquidity or the availability of or requirements for its capital resources required to be described in the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 <u>No Loans or Advances to Affiliates</u>. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Company to or for the benefit of (i) any of the officers or directors of the Company,(ii) any other affiliates of the Company or (iii) any of their respective family members, except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, which are, in the case of clauses (ii) and (iii), required to be disclosed in the Registration Statement, the Pricing Disclosure Package or the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 <u>Board of Directors</u>. The Board of Directors of the Company is comprised of the persons set forth under the heading of the Pricing Prospectus and the Prospectus captioned "Management." The qualifications of the persons serving as board members and the overall composition of the board comply with the Exchange Act, the Exchange Act Regulations, the Sarbanes-Oxley Act of 2002 and the rules promulgated thereunder (the "**Sarbanes-Oxley Act**") applicable to the Company and the listing rules of the Exchange. At least one member of the Audit Committee of the Board of Directors of the Company qualifies as an "audit committee financial expert," as such term is defined under Regulation S-K and the listing rules of the Exchange. In addition, at least a majority of the persons serving on the Board of Directors qualify as "independent," as defined under the listing rules of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 <u>Sarbanes-Oxley Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33.1. <u>Disclosure Controls</u>. The Company has developed and currently maintains disclosure controls and procedures that will comply with Rule 13a-15 or 15d-15 under the Exchange Act Regulations, and such controls and procedures are effective to ensure that all material information concerning the Company will be made known on a timely basis to the individuals responsible for the preparation of the Company's Exchange Act filings and other public disclosure documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33.2. <u>Compliance</u>. Except as disclosed in the Registration Statement, the Pricing Disclosure Package, the Preliminary Prospectus and the Prospectus, the Company is, or at the Applicable Time and on the Closing Date will be, in material compliance with the provisions of the Sarbanes-Oxley Act applicable to it, and has implemented or will implement such programs and taken reasonable steps to ensure the Company's future compliance (not later than the relevant statutory and regulatory deadlines therefor) with all of the material provisions of the Sarbanes-Oxley Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 <u>Accounting Controls</u>. The Company maintains systems of "internal control over financial reporting" (as defined under Rules 13a-15 and 15d-15 under the Exchange Act Regulations) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited to, internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company is not aware of any material weaknesses (as defined in Rule 12b-2 of the Exchange Act) in its internal controls. The Company's auditors and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant deficiencies and material weaknesses (as defined in Rule 12b-2 of the Exchange Act) in the design or operation of internal controls over financial reporting which are known to the Company's management and that have adversely affected or are reasonably likely to adversely affect the Company' ability to record, process, summarize and report financial information; and (ii) any fraud known to the Company's management, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting. Since the date of the latest audited financial statements included in the Pricing Disclosure Package, there has been no change in the Company's internal control over financial reporting that has affected, or is reasonably likely to affect, the Company's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 <u>No Investment Company Status</u>. The Company is not and, after giving effect to the Offering and the application of the proceeds thereof as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, will not be, required to register as an "investment company," as defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36 <u>No Labor Disputes</u>. No labor dispute with the employees of the Company exists or, to the knowledge of the Company, is imminent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37 <u>Intellectual Property Rights</u>. The Company owns or possesses or has valid rights to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets and similar rights ("**Intellectual Property Rights**") necessary for the conduct of the business of the Company as currently carried on and as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus. To the knowledge of the Company, no action or use by the Company necessary for the conduct of its business as currently carried on and as described in the Registration Statement and the Prospectus will involve or give rise to any infringement of, or license or similar fees for, any Intellectual Property Rights of others. The Company has not received any notice alleging any such infringement, fee or conflict with asserted Intellectual Property Rights of others. Except as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change (A) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any of the Intellectual Property Rights owned by the Company; (B) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the rights of the Company in or to any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim, that would, individually or in the aggregate, together with any other claims in this Section 2.37, reasonably be expected to result in a Material Adverse Change; (C) the Intellectual Property Rights owned by the Company and, to the knowledge of the Company, the Intellectual Property Rights licensed to the Company have not been adjudged by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim that would, individually or in the aggregate, together with any other claims in this Section 2.37, reasonably be expected to result in a Material Adverse Change; (D) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others that the Company infringes, misappropriates or otherwise violates any Intellectual Property Rights or other proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of any other facts which would form a reasonable basis for any such claim that would, individually or in the aggregate, together with any other claims in this Section 2.37, reasonably be expected to result in a Material Adverse Change; and (E) to the Company's knowledge, no employee of the Company is in or has ever been in violation in any material respect of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee's employment with the Company, or actions undertaken by the employee while employed with the Company and could reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change. To the Company's knowledge, all material technical information developed by and belonging to the Company which has not been patented has been kept confidential. The Company is not a party to or bound by any options, licenses or agreements with respect to the Intellectual Property Rights of any other person or entity that are required to be set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus and are not described therein. The Registration Statement, the Pricing Disclosure Package and the Prospectus contain in all material respects the same description of the matters set forth in the preceding sentence. None of the technology employed by the Company has been obtained or is being used by the Company in violation of any contractual obligation binding on the Company or, to the Company's knowledge, any of its officers, directors or employees, or otherwise in violation of the rights of any persons.

All licenses for the use of the Intellectual Property described in the Registration Statement, the Pricing Disclosure Package and the Prospectus are in full force and effect in all material respects and are enforceable by the Company and, to the Company's knowledge, the other parties thereto, in accordance with their terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. None of such agreements or instruments has been assigned by the Company, and neither the Company has not, and the Company's knowledge, no other party is in default thereunder and no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38 <u>Taxes</u>. The Company has filed all returns (as hereinafter defined) required to be filed with taxing authorities prior to the date of this Agreement or has duly obtained extensions of time for the filing thereof. The Company has paid all taxes (as hereinafter defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed against the Company. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. Except as disclosed in writing to the Underwriters, (i) no issues have been raised (and are currently pending) by any taxing authority in connection with any of the returns or taxes asserted as due from the Company, and (ii) no waivers of statutes of limitation with respect to the returns or collection of taxes have been given by or requested from the. The term "**taxes**" means all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts with respect thereto. The term "**returns**" means all returns, declarations, reports, statements and other documents required to be filed in respect to taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39 Benefits Plans The Company and each of its Subsidiaries, and any "employee benefit plan" (as defined under the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, "ERISA")) established or maintained by the Company or its "ERISA Affiliates" (as defined below) are in compliance in all material respects with ERISA. "ERISA Affiliate" means, with respect to the Company, any member of any group of organizations described in Sections 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended, and the regulations and published interpretations thereunder (the "Code") of which the Company is a member. No "reportable event" (as defined under ERISA) has occurred or is reasonably expected to occur with respect to any "employee benefit plan" established or maintained by the Company or any of its ERISA Affiliates. No "employee benefit plan" established or maintained by the Company or any of its ERISA Affiliates, if such "employee benefit plan" were terminated, would have any "amount of unfunded benefit liabilities" (as defined under ERISA). Neither the Company nor any of its ERISA Affiliates has incurred or reasonably expects to incur any material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any "employee benefit plan" or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each "employee benefit plan" established or maintained by the Company or any of its ERISA Affiliates (or analogous plans in any non-U.S. jurisdiction, including Israel) that is intended to be qualified under Section 401(a) of the Code, is so qualified and, to the knowledge of the Company, nothing has occurred, whether by action or failure to act, which would cause the loss of such qualification. Any "employee benefit plan" established or maintained by the Company or any of its ERISA Affiliates in any non-U.S. jurisdiction, including Israel, is in compliance with Applicable Laws (as defined below) in such jurisdiction except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.40 <u>Compliance with Laws</u>. The Company: (A) is and at all times has been in compliance with all statutes, rules, regulations, ordinances, judgments, orders and decrees of all Governmental Entities applicable to the Company's business ("**Applicable Laws**"), except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change; (B) has not received any warning letter, untitled letter or other correspondence or notice from any other Governmental Entity alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, consents, permits and supplements or amendments thereto required by any such Applicable Laws ("**Authorizations**"); (C) possesses all material Authorizations and such Authorizations are valid and in full force and effect and are not in material violation of any term of any such Authorizations; (D) has not received notice of any claim, action, suit, litigation, proceeding, hearing, enforcement, investigation, inquiry, arbitration or other action from any Governmental Entity or third party alleging that any product operation or activity is in violation of any Applicable Laws or Authorizations and has no knowledge that any such Governmental Entity or third party is considering any such claim, litigation, arbitration, action, suit, litigation, proceeding, hearing, enforcement, investigation, inquiry, arbitration or other action; (E) has not received notice that any Governmental Entity has taken, is taking or intends to take action to limit, suspend, modify or revoke any Authorizations and has no knowledge that any such governmental authority is considering such action; (F) has filed, obtained, maintained or submitted all material reports, documents, forms, filings, notices, applications, records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct on the date filed (or were corrected or supplemented by a subsequent submission); and (G) has not, either voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert, post-sale warning, "dear doctor" letter, or other notice or action relating to the alleged lack of safety or efficacy of any product or any alleged product defect or violation and, to the Company's knowledge, no third party has initiated, conducted or intends to initiate any such notice or action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41 <u>Application of Takeover Protections</u>. The Company and the board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company's Charter (or similar charter documents) (excluding, for purposes of this representation, the "blank check" preferred shares that are authorized by the Company's Charter) or the laws of its jurisdiction of incorporation that is or could become applicable as a result of the Underwriters and the Company fulfilling their obligations or exercising their rights under this Agreement or the Representative's Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.42 <u>Solvency</u>. Based on the consolidated financial condition of the Company as of the Closing Date, and as of each Option Closing Date, if any, after giving effect to the receipt by the Company of the proceeds from the sale of the Public Shares hereunder, (i) the fair saleable value of the Company's assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted, including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the proceeds the Company receives from the sale of the Firm Shares, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The Registration Statement, Pricing Disclosure Package and the Prospectus sets forth as of the date hereof all outstanding secured and unsecured indebtedness of the Company or for which the Company has commitments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43 <u>Ineligible Issuer</u>. At the time of filing the Registration Statement and any post-effective amendment thereto, at the time of effectiveness of the Registration Statement and any amendment thereto, at the earliest time thereafter that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities Act Regulations) of the Public Shares and at the date of this Agreement, the Company was not and is not an "ineligible issuer," as defined in Rule 405, without taking account of any determination by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an ineligible issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.44 <u>Environmental Laws</u>. The Company is in compliance with all laws, statutes, ordinances, regulations, orders, judgments, decrees, permits, or rules (including rules of common law), relating to the use, treatment, storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment which are applicable to their businesses ("**Environmental Laws**"), except where the failure to comply would not, singularly or in the aggregate, result in a Material Adverse Change. There has been no storage, generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the Company (or, to the Company's knowledge, any other entity for whose acts or omissions the Company is or may otherwise be liable) upon any of the property now or previously owned or leased by the Company, or upon any other property, in violation of any Environmental Laws or which would, under any Environmental Laws, give rise to any liability; and there has been no disposal, discharge, emission or other release of any kind onto such property or into the environment surrounding such property of any toxic or other wastes or other hazardous substances with respect to which the Company has knowledge. In the ordinary course of business, the Company conducts periodic reviews of the effect of Environmental Laws on its business and assets, in the course of which it identifies and evaluates any associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or governmental permits issued thereunder, any related constraints on operating activities and any potential liabilities to third parties). On the basis of such reviews, the Company has reasonably concluded that such associated costs and liabilities would not reasonably be expected to result, singularly or in the aggregate, in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.45 [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.46 <u>Regulatory Authorities</u>. The Company holds all licenses, certificates, approvals and permits from all Israeli and United States federal and state and foreign and other regulatory authorities, including but not limited to any foreign regulatory authorities, in each case to the extent required pursuant to applicable law, and to the extent they are material to the conduct of the business of the Company or its subsidiaries as such business is now conducted as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, all of which are valid and in full force and effect and there is no proceeding pending or, to the knowledge of the Company, threatened which may cause any such license, certificate, approval or permit to be withdrawn, cancelled, suspended or not renewed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.47 <u>Real Property</u>. Except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company and its Subsidiaries have good and marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of real or personal property which are material to the business of the Company and its Subsidiaries taken as a whole, in each case free and clear of all liens, encumbrances, security interests, claims and defects that do not, singly or in the aggregate, materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or its Subsidiaries; and all of the leases and subleases material to the business of the Company and its subsidiaries, considered as one enterprise, and under which the Company or any of its Subsidiaries holds properties described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, are in full force and effect, and neither the Company nor any Subsidiary has received any notice of any material claim of any sort that has been asserted by anyone adverse to the rights of the Company or any Subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such Subsidiary to the continued possession of the leased or subleased premises under any such lease or sublease..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.48 <u>Contracts Affecting Capital</u>. There are no transactions, arrangements or other relationships between and/or among the Company, any of its affiliates (as such term is defined in Rule 405 of the Securities Act Regulations) and any unconsolidated entity, including, but not limited to, any structured finance, special purpose or limited purpose entity that could reasonably be expected to materially affect the Company's or its Subsidiaries' liquidity or the availability of or requirements for their capital resources required to be described or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus which have not been described or incorporated by reference as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.49 <u>Loans to Directors or Officers</u>. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Company or its Subsidiaries to or for the benefit of any of the officers or directors of the Company, its Subsidiaries or any of their respective family members, except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.50 [<u>RESERVED</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.51 <u>Industry Data</u>. The statistical and market-related data included in each of the Registration Statement, the Pricing Disclosure Package and the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate or represent the Company's good faith estimates that are made on the basis of data derived from such sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.52 [<u>RESERVED</u>]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.53 <u>Minute Books</u>. The minutes and resolutions of the Company have been made available to the Underwriters and the Representative Counsel, and such minutes and resolutions (i) contain a complete summary of all meetings and actions of the board of directors (including each board committee) and stockholders of the Company (or analogous governing bodies and interest holders, as applicable) and each of its Subsidiaries since the time of its respective incorporation through the date of the latest meeting and action, and (ii) accurately in all material respects reflect all transactions referred to in such minutes. There are no material transactions, agreements, dispositions or other actions of the Company that are not properly approved and/or accurately and fairly recorded in the minute books of the Company, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.54 <u>Integration</u>. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the Offering to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration of any such securities under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41 <u>No Stabilization</u>. Neither the Company nor, to its knowledge, any of its employees, directors or shareholders (without the consent of the Representative) has taken or shall take, directly or indirectly, any action designed to or that has constituted or that might reasonably be expected to cause or result in, under Regulation M of the Exchange Act, or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Public Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.55 <u>Confidentiality and Non-Competition</u>. To the Company's knowledge, no director, officer, key employee or consultant of the Company is subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with any employer or prior employer that could reasonably be expected to materially affect his ability to be and act in his respective capacity of the Company or be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.56 <u>Emerging Growth Company</u>. From the time of the initial confidential submission of the Registration Statement to the Commission (or, if earlier, the first date on which the Company engaged directly in or through any Person authorized to act on its behalf in any Testing-the Waters Communication) through the date of this Agreement, the Company has been and is an "emerging growth company," as defined in Section 2(a) of the Securities Act (an "**Emerging Growth Company**"). "Testing-the-Waters Communication" means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.57 <u>Testing-the-Waters Communications</u>. The Company has not (i) alone engaged in any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the written consent of the Representative and with entities that are qualified institutional buyers within the meaning of Rule 144A under the Securities Act or institutions that are accredited investors within the meaning of Rule 501 under the Securities Act and (ii) authorized anyone other than the Representative to engage in Testing-the-Waters Communications. The Company confirms that the Representative has been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The Company has not distributed any Written Testing-the-Waters Communications other than those listed on <u>Schedule 2-C</u> hereto. "**Written Testing-the-Waters Communication**" means any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.58 <u>Electronic Road Show</u>. The Company has made available a Bona Fide Electronic Road Show in compliance with Rule 433(d)(8)(ii) of the Securities Act Regulations such that no filing of any "road show" (as defined in Rule 433(h) of the Securities Act Regulations) is required in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.59 <u>Margin Securities</u>. The Company owns no "margin securities" as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System (the "**Federal Reserve Board**"), and none of the proceeds of the Offering will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the Ordinary Shares to be considered a "purpose credit" within the meanings of Regulation T, U or X of the Federal Reserve Board.

3. <u>Covenants of the Company</u>. The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Amendments to Registration Statement</u>. The Company shall deliver to the Representative, prior to filing, any amendment or supplement to the Registration Statement, Preliminary Prospectus, Pricing Disclosure Package or Prospectus proposed to be filed after the date of this Agreement and not file any such amendment or supplement to which the Representative shall reasonably object in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Federal Securities Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. <u>Compliance</u>. The Company, subject to Section 3.2.2, shall comply with the requirements of Rule 430A of the Securities Act Regulations, and will notify the Representative promptly, and confirm the notice in writing, (i) when any post-effective amendment to the Registration Statement shall become effective or any amendment or supplement to the Prospectus shall have been filed; (ii) of the receipt of any comments from the Commission; (iii) of any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for additional information; (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus, or of the suspension of the qualification of the Public Shares and Representative's Securities for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or of any examination pursuant to Section 8(d) or 8(e) of the Securities Act concerning the Registration Statement and (v) if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the Offering of the Public Shares and Representative's Securities. The Company shall effect all filings required under Rule 424(b) of the Securities Act Regulations, in the manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)), and shall take such steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received for filing by the Commission and, in the event that it was not, it will promptly file such prospectus. The Company shall use its best efforts to prevent the issuance of any stop order, prevention or suspension and, if any such order is issued, to obtain the lifting thereof at the earliest possible moment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. <u>Continued Compliance</u>. The Company shall comply with the Securities Act, the Securities Act Regulations, the Exchange Act and the Exchange Act Regulations so as to permit the completion of the distribution of the Public Shares as contemplated in this Agreement and in the Registration Statement, the Pricing Disclosure Package and the Prospectus. If at any time when a prospectus relating to the Public Shares is (or, but for the exception afforded by Rule 172 of the Securities Act Regulations ("**Rule 172**"), would be) required by the Securities Act to be delivered in connection with sales of the Public Shares, any event shall occur or condition shall exist as a result of which it is necessary, in the opinion of Representative Counsel or counsel for the Company, to (i) amend the Registration Statement in order that the Registration Statement will not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) amend or supplement the Pricing Disclosure Package or the Prospectus in order that the Pricing Disclosure Package or the Prospectus, as the case may be, will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in the light of the circumstances existing at the time it is delivered to a purchaser or (iii) amend the Registration Statement or amend or supplement the Pricing Disclosure Package or the Prospectus, as the case may be, in order to comply with the requirements of the Securities Act or the Securities Act Regulations, the Company will promptly (A) give the Representative notice of such event; (B) prepare any amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the Pricing Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to any proposed filing or use, furnish the Representative with copies of any such amendment or supplement and (C) file with the Commission any such amendment or supplement; *provided, however,* that the Company shall not file or use any such amendment or supplement to which the Representative or Representative Counsel shall reasonably object. The Company will furnish to the Underwriters such number of copies of such amendment or supplement as the Underwriters may reasonably request. The Company has given the Representative notice of any filings made pursuant to the Exchange Act or the Exchange Act Regulations within 48 hours prior to the Applicable Time. The Company shall give the Representative notice of its intention to make any such filing from the Applicable Time until the later of the Closing Date and the exercise in full or expiration of the Over-allotment Option specified in Section 1.2 hereof and will furnish the Representative with copies of the related document(s) a reasonable amount of time prior to such proposed filing, as the case may be, and will not file or use any such document to which the Representative or Representative Counsel shall reasonably object.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3. <u>Exchange Act Registration</u>. For a period of three (3) years after the date of this Agreement, the Company shall use its best efforts to maintain the registration of the Ordinary Shares under the Exchange Act. The Company shall not deregister the Ordinary Shares under the Exchange Act without the prior written consent of the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4. <u>Free Writing Prospectuses</u>. The Company agrees that, unless it obtains the prior written consent of the Representative, it shall not make any offer relating to the Public Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a "free writing prospectus," or a portion thereof, required to be filed by the Company with the Commission or retained by the Company under Rule 433; provided that the Representative shall be deemed to have consented to each Issuer General Use Free Writing Prospectus hereto and any "road show that is a written communication" within the meaning of Rule 433(d)(8)(ii) that has been reviewed by the Representative. The Company represents that it has treated or agrees that it will treat each such free writing prospectus consented to, or deemed consented to, by the Underwriters as an "issuer free writing prospectus," as defined in Rule 433, and that it has complied and will comply with the applicable requirements of Rule 433 with respect thereto, including timely filing with the Commission where required, legending and record keeping. If at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify the Underwriters and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.5. <u>Testing-the-Waters Communications</u>. If at any time following the distribution of any Written Testing-the-Waters Communication there occurred or occurs an event or development as a result of which such Written Testing-the-Waters Communication included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company shall promptly notify the Representative and shall promptly amend or supplement, at its own expense, such Written Testing-the-Waters Communication to eliminate or correct such untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Delivery to the Underwriters of Registration Statements</u>. The Company has delivered or made available or shall deliver or make available to the Representative and Representative Counsel, without charge, signed copies of the Registration Statement as originally filed and each amendment thereto (including exhibits filed therewith) and signed copies of all consents and certificates of experts, and will also deliver to the Underwriters, without charge, a conformed copy of the Registration Statement as originally filed and each amendment thereto (without exhibits) for each of the Underwriters. The copies of the Registration Statement and each amendment thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Delivery to the Underwriters of Prospectuses</u>. The Company has delivered or made available or will deliver or make available to each Underwriter, without charge, as many copies of each Preliminary Prospectus as such Underwriter reasonably requested, and the Company hereby consents to the use of such copies for purposes permitted by the Securities Act. The Company will furnish to each Underwriter, without charge, during the period when a prospectus relating to the Public Shares is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the Securities Act, such number of copies of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Effectiveness and Events Requiring Notice to the Representative</u>. The Company shall use its best efforts to cause the Registration Statement to remain effective with a current prospectus for at least nine (9) months after the Applicable Time, and shall notify the Representative immediately and confirm the notice in writing: (i) of the effectiveness of the Registration Statement and any amendment thereto; (ii) of the issuance by the Commission of any stop order or of the initiation, or the threatening, of any proceeding for that purpose; (iii) of the issuance by any state securities commission of any proceedings for the suspension of the qualification of the Public Shares for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose; (iv) of the mailing and delivery to the Commission for filing of any amendment or supplement to the Registration Statement or Prospectus; (v) of the receipt of any comments or request for any additional information from the Commission; and (vi) of the happening of any event during the period described in this Section 3.5 that, in the judgment of the Company, makes any statement of a material fact made in the Registration Statement, the Pricing Disclosure Package or the Prospectus untrue or that requires the making of any changes in (a) the Registration Statement in order to make the statements therein not misleading, or (b) in the Pricing Disclosure Package or the Prospectus in order to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Commission or any state securities commission shall enter a stop order or suspend such qualification at any time, the Company shall make every reasonable effort to obtain promptly the lifting of such order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Review of Financial Statements.</u> For a period of three (3) years after the date of this Agreement, the Company, at its expense, shall use its reasonable best efforts to cause its regularly engaged independent registered public accounting firm to review (but not audit) the Company's financial statements for the six months ended June 30 of the relevant year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Listing</u>. The Company shall use its best efforts to maintain the listing of the Ordinary Shares (including the Representative's Shares) on the Exchange for a period of at least three (3) years from the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Financial Public Relations Firm</u>. Within thirty (30) days from the Effective Date, the Company shall have retained a financial public relations firm reasonably acceptable to the Representative and the Company, which shall be experienced in assisting issuers in initial public offerings of securities and in their relations with their security holders, and shall continue to retain such firm or another firm reasonably acceptable to the Representative for a period of not less than two (2) years after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Reports to the Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.1. <u>Periodic Reports, etc</u>. For a period of three (3) years after the date of this Agreement, the Company shall furnish or make available to the Representative copies of such financial statements and other periodic and special reports as the Company from time to time furnishes generally to holders of any class of its securities and also promptly furnish to the Representative: (i) a copy of each periodic report the Company shall be required to file with the Commission under the Exchange Act and the Exchange Act Regulations; (ii) a copy of every press release and every news item and article with respect to the Company or its affairs which was released by the Company; (iii) a copy of each Form 6-K prepared and filed by the Company; (iv) five copies of each registration statement filed by the Company under the Securities Act; and (v) such additional documents and information with respect to the Company and the affairs of any future subsidiaries of the Company as the Representative may from time to time reasonably request; provided the Representative shall sign, if requested by the Company, a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the Representative and Representative Counsel in connection with the Representative's receipt of such information. Documents filed with the Commission pursuant to its EDGAR system and press releases released through a Regulation Fair Disclosure compliant method shall be deemed to have been delivered to the Representative pursuant to this Section 3.9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.2. <u>Transfer Agent; Transfer Sheets</u>. For a period of three (3) years after the date of this Agreement, the Company shall retain a transfer agent and registrar acceptable to the Representative (the "**Transfer Agent**") and shall furnish to the Representative at the Company's sole cost and expense such transfer sheets of the Company's securities as the Representative may reasonably request, including the daily and monthly consolidated transfer sheets of the Transfer Agent and DTC. [EQ] is acceptable to the Representative to act as Transfer Agent for the Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9.3. <u>Trading Reports</u>. For a period of three (3) years after the date of this Agreement, the Company shall provide to the Representative, at the Company's expense, such reports published by Exchange relating to price trading of the Public Shares, as the Representative shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Payment of Expenses</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.1. <u>General Expenses Related to the Offering</u>. The Company hereby agrees to pay on each of the Closing Date and each Option Closing Date, if any, to the extent not paid at the Closing Date, all expenses incident to the performance of the obligations of the Company under this Agreement, including, but not limited to: (a) all filing fees and communication expenses relating to the registration of the Ordinary Shares to be sold in the Offering (including the Option Shares) with the Commission; (b) all filing fees and expenses associated with the review of the Offering by FINRA; (c) all fees and expenses relating to the listing of such Public Shares on the Nasdaq Capital Market, the Nasdaq Global Market, the NYSE, or the NYSE American and on such other stock exchanges as the Company and the Representative together determine, including any fees charged by DTC for new securities; (d) all fees, expenses and disbursements relating to background checks of the Company's officers, directors and entities in an amount not to exceed $15,000 in the aggregate; (e) all fees, expenses and disbursements relating to the registration or qualification of the Public Shares under the "blue sky" securities laws of such states, if applicable, and other jurisdictions as the Representative may reasonably designate; (f) all fees, expenses and disbursements relating to the registration, qualification or exemption of the Public Shares under the securities laws of such foreign jurisdictions as the Representative may reasonably designate; (g) the costs of all mailing and printing of the underwriting documents (including, without limitation, this Agreement, any Blue Sky Surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers' Agreement, Underwriters' Questionnaire and Power of Attorney), registration statements, prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final Prospectuses as the Representative may reasonably deem necessary; (h) the costs and expenses of a public relations firm referred to in Section 3.8; (i) the costs of preparing, printing and delivering certificates representing the Public Shares; (j) fees and expenses of the transfer agent for the Ordinary Shares; (k) stock transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to the Representative; (l) the costs associated with post-Closing advertising the Offering in the national editions of the Wall Street Journal and New York Times; (m) the costs associated with one set of bound volumes of the public offering materials as well as commemorative mementos and lucite tombstones, each of which the Company or its designee shall provide within a reasonable time after the Closing Date in such quantities as the Representative may reasonably request, in an amount not to exceed $3,000; (n) the fees and expenses of the Company's accountants; (o) the fees and expenses of the Company's legal counsel and other agents and representatives; (p) fees and expenses of the Representative's legal counsel not to exceed $125,000; (q) the $29,500 cost associated with the Underwriter's use of Ipreo's book-building, prospectus tracking and compliance software for the Offering; (r) $10,000 for data services and communications expenses; (s) up to $10,000 of the Representative's actual accountable "road show" expenses; and (t) up to $30,000 of the Representative's market making and trading, and clearing firm settlement expenses for the Offering. The reimbursement amount shall not be more than an aggregate of $250,000 (provided, however, that such expense cap in no way limits or impairs the indemnification and contribution provision of this Agreement). The Representative may deduct from the net proceeds of the Offering payable to the Company on the Closing Date, or each Option Closing Date, if any, the expenses set forth herein (less any amounts previously advanced against such actual reimbursable expenses in compliance with FINRA Rule 5110(g)(4)(a)) to be paid by the Company to the Underwriters; *provided, however,* that in the event that the Offering is terminated, the Company agrees to reimburse the Underwriters pursuant to Section 8.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10.2. <u>Non-accountable Expenses</u>. The Company further agrees that, in addition to the expenses payable pursuant to Section 3.10.1, on the Closing Date it shall pay to the Representative, by deduction from the net proceeds of the Offering contemplated herein, a non-accountable expense allowance equal to one percent (1%) of the gross proceeds received by the Company from the sale of the Firm Shares, less the Advance (as such term is defined in Section 8.3 hereof), provided, however, that in the event that the Offering is terminated, the Company agrees to reimburse the Underwriters pursuant to Section 8.3 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Application of Net Proceeds</u>. The Company shall apply the net proceeds from the Offering received by it in a manner consistent with the application thereof described under the caption "Use of Proceeds" in the Registration Statement, the Pricing Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Delivery of Earnings Statements to Security Holders</u>. The Company shall make generally available to its security holders as soon as practicable, but not later than the first day of the fifteenth (15<sup>th</sup>) full calendar month following the date of this Agreement, an earnings statement (which need not be certified by independent registered public accounting firm unless required by the Securities Act or the Securities Act Regulations, but which shall satisfy the provisions of Rule 158(a) under Section 11(a) of the Securities Act) covering a period of at least twelve (12) consecutive months beginning after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>Stabilization</u>. Neither the Company nor, to its knowledge, any of its employees, directors or shareholders (without the consent of the Representative) has taken or shall take, directly or indirectly, any action designed to or that has constituted or that might reasonably be expected to cause or result in, under Regulation M of the Exchange Act, or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Public Shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>Internal Controls</u>. The Company shall maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>Accountants</u>. As of the date of this Agreement, the Company shall retain an independent registered public accounting firm reasonably acceptable to the Representative, and the Company shall continue to retain a nationally recognized independent registered public accounting firm for a period of at least three (3) years after the date of this Agreement. The Representative acknowledges that the Auditor is acceptable to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>FINRA</u>. The Company shall advise the Representative (who shall make an appropriate filing with FINRA) and Representative Counsel if it is or becomes aware that (i) any officer or director of the Company, (ii) any beneficial owner of five percent (5%) or more of any class of the Company's securities or (iii) any beneficial owner of the Company's unregistered equity securities which were acquired during the one hundred eighty (180) days immediately preceding the date of this Agreement is or becomes an affiliate or associated person of a FINRA member participating in the Offering (as determined in accordance with the rules and regulations of FINRA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>No Fiduciary Duties</u>. The Company acknowledges and agrees that the Underwriters' responsibility to the Company is solely contractual in nature and that none of the Underwriters or their affiliates or any selling agent shall be deemed to be acting in a fiduciary capacity, or otherwise owes any fiduciary duty to the Company or any of its affiliates in connection with the Offering and the other transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 <u>Company Lock-Up Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18.1. <u>Restriction on Sales of Capital Stock</u>. The Company, on behalf of itself and any successor entity, agrees that, without the prior written consent of the Representative, it will not, for a period of six (6) months after the date of this Agreement (the "Lock-Up Period"): (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a traditional bank or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.

The restrictions contained in this Section 3.18.1 shall not apply to (i) the Ordinary Shares to be sold hereunder, (ii) the issuance by the Company of Ordinary Shares upon the exercise of a stock option or warrant or the conversion of a security outstanding on the date of this Agreement, which is disclosed in the Registration Statement, Disclosure Package and Prospectus, provided that such options, warrants, and securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities or to extend the term of such securities, or (iii) the issuance by the Company of stock options or shares of capital stock of the Company under any equity compensation plan of the Company, provided that in each of (ii) and (iii) above, the underlying shares shall be restricted from sale during the entire Lock-Up Period.

Notwithstanding the foregoing, if (i) during the last 17 days of the Lock-Up Period, the Company issues an earnings release or material news or a material event relating to the Company occurs, or (ii) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the Lock-Up Period, the restrictions imposed by this Section 3.18.1 shall continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of such material news or material event, as applicable, unless the Representative waives, in writing, such extension; provided, however, that this extension of the Lock-Up Period shall not apply to the extent that FINRA has amended or repealed NASD Rule 2711(f)(4), or has otherwise provided written interpretive guidance regarding such rule, in each case, so as to eliminate the prohibition of any broker, dealer, or member of a national securities association from publishing or distributing any research report, with respect to the securities of an Emerging Growth Company prior to or after the expiration of any agreement between the broker, dealer, or member of a national securities association and the Emerging Growth Company or its shareholders that restricts or prohibits the sale of securities held by the Emerging Growth Company or its shareholders after the initial public offering date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18.2. <u>Restriction on Continuous Offerings</u>. Notwithstanding the restrictions contained in Section 3.18.1, the Company, on behalf of itself and any successor entity, agrees that, without the prior written consent of the Representative, it will not, for a period of six (6) months after the date of this Agreement, directly or indirectly in any "at-the-market" or continuous equity or variable rate transaction, offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company, without the prior written consent of the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 <u>Release of D&O Lock-up Period</u>. If the Representative, in its sole discretion, agrees to release or waive the restrictions set forth in the Lock-Up Agreements described in Section 2.26 hereof for an officer or director of the Company and provide the Company with notice of the impending release or waiver at least three (3) Business Days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of <u>Exhibit C</u> hereto through a major news service at least two (2) Business Days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 <u>Blue Sky Qualifications</u>. The Company shall use its best efforts, in cooperation with the Underwriters, if necessary, to qualify the Public Shares for offering and sale under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Representative may designate and to maintain such qualifications in effect so long as required to complete the distribution of the Public Shares; provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 <u>Reporting Requirements</u>. The Company, during the period when a prospectus relating to the Public Shares is (or, but for the exception afforded by Rule 172, would be) required to be delivered under the Securities Act, will file all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange Act and Exchange Act Regulations. Additionally, the Company shall report the use of proceeds from the issuance of the Public Shares as may be required under Rule 463 under the Securities Act Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 <u>Emerging Growth Company Status</u>. The Company shall promptly notify the Representative if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Public Shares within the meaning of the Securities Act and (ii) fifteen (15) days following the completion of the Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23 <u>Sarbanes Oxley</u>. The Company shall at all times comply with all applicable provisions of the Sarbanes Oxley Act in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24 <u>[RESERVED]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25 <u>Reservation of Ordinary Shares</u>. As of the date of this Agreement, the Company has irrevocably reserved, and the Company shall continue to reserve and keep available at all times, free of pre-emptive rights, a sufficient number of Ordinary Shares for the purpose of enabling the Company to issue the Option Shares and Representative's Shares.

4. <u>Conditions of Underwriters' Obligations</u>. The obligations of the Underwriters to purchase and pay for the Public Shares, as provided herein, shall be subject to (i) the continuing accuracy of the representations and warranties of the Company as of the date of this Agreement and as of each of the Closing Date and each Option Closing Date, if any; (ii) the accuracy of the statements of officers of the Company made pursuant to the provisions hereof; (iii) the performance by the Company of its obligations hereunder; and (iv) the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Regulatory Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. <u>Effectiveness of Registration Statement; Rule 430A Information</u>. The Registration Statement has become effective not later than 5:00 p.m., Eastern time, on the date of this Agreement or such later date and time as shall be consented to in writing by you, and, at each of the Closing Date and any Option Closing Date, no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under the Securities Act, no order preventing or suspending the use of any Preliminary Prospectus or the Prospectus has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the Company's knowledge, contemplated by the Commission. The Company has complied with each request (if any) from the Commission for additional information. The Prospectus containing the Rule 430A Information shall have been filed with the Commission in the manner and within the time frame required by Rule 424(b) (without reliance on Rule 424(b)(8)) or a post-effective amendment providing such information shall have been filed with, and declared effective by, the Commission in accordance with the requirements of Rule 430A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. <u>FINRA Clearance</u>. On or before the date of this Agreement, the Representative shall have received clearance from FINRA as to the amount of compensation allowable or payable to the Underwriters as described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3. <u>Exchange Stock Market Clearance</u>. On the Closing Date, the Company's Ordinary Shares, including the Firm Shares, shall have been approved for listing on the Exchange, subject only to official notice of issuance. On the first Option Closing Date (if any), the Company's Ordinary Shares, including the Option Shares, shall have been approved for listing on the Exchange, subject only to official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Company Counsel Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. <u>Closing Date Opinion of Israeli Counsel</u>. On the Closing Date, the Representative shall have received the favorable opinion of Goldfarb Gross Seligman, Israeli counsel to the Company, dated the Closing Date and addressed to the Representative, in form reasonably satisfactory to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2. <u>Closing Date Opinion of U.S. Counsel</u>. On the Closing Date, the Representative shall have received the favorable opinion of Greenberg Traurig, P.A., U.S. counsel to the Company, and a written statement providing certain "10b-5" negative assurances, dated the Closing Date and addressed to the Representative, in form reasonably satisfactory to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3. <u>Opinion of Special Intellectual Property Counsel for the Company</u>. On the Closing Date, the Representative shall have received the opinion of Pearl Cohen Zedek Latzer Baratz LLP, special intellectual property counsel for the Company, dated the Closing Date, addressed to the Representative in a form reasonably satisfactory to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.4. <u>Option Closing Date Opinions of Counsel</u>. On each Option Closing Date, if any, the Representative shall have received the favorable opinions of each counsel listed in Sections 4.2.1, 4.2.2 and 4.2.3, dated as of such Option Closing Date, addressed to the Representative and in form and substance reasonably satisfactory to the Representative, confirming as of such Option Closing Date, the statements made by such counsels in their respective opinions delivered on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5. <u>Reliance</u>. In rendering such opinions, such counsel may rely: (i) as to matters involving the application of laws other than the laws of the United States, Israel and jurisdictions in which they are admitted, to the extent such counsel deems proper and to the extent specified in such opinion, if at all, upon an opinion or opinions (in form and substance reasonably satisfactory to the Representative) of other counsel reasonably acceptable to the Representative, familiar with the applicable laws; and (ii) as to matters of fact, to the extent they deem proper, on certificates or other written statements of officers of the Company and officers of departments of various jurisdictions having custody of documents respecting the corporate existence or good standing of the Company, provided that copies of any such statements or certificates shall be delivered to Representative Counsel if requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Comfort Letters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1. <u>Cold Comfort Letter</u>. At the time this Agreement is executed the Representative shall have received a cold/long form comfort letter from the Auditor, containing statements and information of the type customarily included in accountants' comfort letters with respect to the financial statements and certain financial information contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus, addressed to the Representative and in form and substance satisfactory in all respects to the Representative, dated as of the date of this Agreement and to not have the Auditor cutoff date more than one (1) Business Day prior to the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2. <u>Bring-down Comfort Letter</u>. At each of the Closing Date and each Option Closing Date, if any, the Representative shall have received from the Auditor a letter, dated as of the Closing Date or as of each Option Closing Date, as applicable, addressed to the Representative and in form and substance satisfactory in all respects to the Representative and to the auditor, to the effect that the Auditor reaffirms the statements made in the letter furnished pursuant to Section 4.3.1, except that the specified date referred to shall be a date not more than one (1) Business Day prior to the Closing Date or each Option Closing Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Officers' Certificates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. <u>Officers' Certificate</u>. The Company shall have furnished to the Representative a certificate, dated the Closing Date and any Option Closing Date (if such date is other than the Closing Date), of its Chief Executive Officer, its President and its Chief Financial Officer or a person acting in a similar function, stating that (i) such officers have carefully examined the Registration Statement, the Pricing Disclosure Package, any Issuer Free Writing Prospectus and the Prospectus and, in their opinion, the Registration Statement and each amendment thereto, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date) did not include any untrue statement of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and the Pricing Disclosure Package, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), any Issuer Free Writing Prospectus as of its date and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the Prospectus and each amendment or supplement thereto, as of the respective date thereof and as of the Closing Date, did not include any untrue statement of a material fact and did not omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances in which they were made, not misleading, (ii) since the Effective Date, no event has occurred which should have been set forth in a supplement or amendment to the Registration Statement, the Pricing Disclosure Package or the Prospectus, (iii) to the best of their knowledge after reasonable investigation, as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the representations and warranties of the Company in this Agreement are true and correct in all material respects (except for those representations and warranties qualified as to materiality, which shall be true and correct in all respects and except for those representations and warranties which refer to facts existing at a specific date, which shall be true and correct as to such date) and the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date (or any Option Closing Date if such date is other than the Closing Date), and (iv) there has not been, subsequent to the date of the most recent audited financial statements included or incorporated by reference in the Pricing Disclosure Package, any material adverse change in the financial position or results of operations of the Company, or any change or development that, singularly or in the aggregate, would involve a material adverse change or a prospective material adverse change, in or affecting the condition (financial or otherwise), results of operations, business, assets or prospects of the Company, except as set forth in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. <u>Secretary's Certificate</u>. At each of the Closing Date and each Option Closing Date, if any, the Representative shall have received a certificate of the Company signed by the Secretary of the Company, or such corporate officer equivalent, dated as of the Closing Date or as of such Option Closing Date, as the case may be, respectively, certifying: (i) that each of the Charter and Bylaws is true and complete, has not been modified and is in full force and effect; (ii) that the resolutions of the Company's Board of Directors relating to the Offering are in full force and effect and have not been modified; (iii) as to the accuracy and completeness of all correspondence between the Company or its counsel and the Commission; and (iv) as to the incumbency of the officers of the Company. The documents referred to in such certificate shall be attached to such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. <u>Chief Financial Officer's Certificate</u>. If requested, at the time this Agreement is executed and at each of the Closing Date and each Option Closing Date, if any, the Representative shall have received a certificate of the Chief Financial Officer of the Company, dated as of such date, with respect to the accuracy of certain information contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus, in a form reasonably acceptable to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>No Material Changes</u>. Prior to and on each of the Closing Date and each Option Closing Date, if any: (i) there shall have been no material adverse change or development involving a prospective material adverse change in the condition or prospects or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus; (ii) no action, suit or proceeding, at law or in equity, shall have been pending or threatened against the Company or any Insider before or by any court or federal or state commission, board or other administrative agency wherein an unfavorable decision, ruling or finding may materially adversely affect the business, operations, properties, assets, prospects or financial condition or income of the Company, except as set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus; (iii) no stop order shall have been issued under the Securities Act and no proceedings therefor shall have been initiated or threatened by the Commission; (iv) no action shall have been taken and no law, statute, rule, regulation or order shall have been enacted, adopted or issued by any Governmental Entity which would prevent the issuance or sale of the Public Shares or the Representative's Securities or materially and adversely affect or potentially materially and adversely affect the business or operations of the Company; (v) no injunction, restraining order or order of any other nature by any federal, state or foreign court of competent jurisdiction shall have been issued which would prevent the issuance or sale of the Public Shares or the Representative's Securities or materially and adversely affect or potentially materially and adversely affect the business or operations of the Company; and (vi) the Registration Statement, the Pricing Disclosure Package and the Prospectus and any amendments or supplements thereto shall contain all material statements which are required to be stated therein in accordance with the Securities Act and the Securities Act Regulations and shall conform in all material respects to the requirements of the Securities Act and the Securities Act Regulations, and neither the Registration Statement, the Pricing Disclosure Package nor the Prospectus nor any amendment or supplement thereto shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Corporate Proceedings</u>. All corporate proceedings and other legal matters incident to the authorization, form and validity of each of this Agreement, the Public Shares, the Representative's Warrant, the Registration Statement, the Pricing Disclosure Package and the Prospectus and all other legal matters relating to this Agreement and the transactions contemplated hereby and thereby shall be reasonably satisfactory in all material respects to Representative Counsel, and the Company shall have furnished to such Representative Counsel all documents and information that they may reasonably request to enable them to pass upon such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Delivery of Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.1. <u>Lock-Up Agreements</u>. On or before the date of this Agreement, the Company shall have delivered to the Representative executed copies of the Lock-Up Agreements from each of the persons listed in <u>Schedule 3</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.2. <u>Representative's Warrant</u>. On the Closing Date and on each Option Closing Date, if any, the Company shall have delivered to the Representative executed copies of the Representative's Warrants to be delivered at such closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Additional Documents</u>. At the Closing Date and at each Option Closing Date (if any) Representative Counsel shall have been furnished with such documents and opinions as they may require for the purpose of enabling Representative Counsel to deliver an opinion to the Underwriters, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Public Shares and the Representative's Securities as herein contemplated shall be satisfactory in form and substance to the Representative and Representative Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>[Reverse Share Split</u>. Not later than the first trading day of the Firm Shares following the date of this Agreement, the Reverse Share Split shall be effective].

5. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Indemnification of the Underwriters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. <u>General</u>. Subject to the conditions set forth below and to the extent permitted by applicable law, the Company agrees to indemnify and hold harmless each Underwriter, its affiliates and each of its and their respective directors, officers, members, employees, representatives, partners, shareholders, affiliates, counsel, and agents and each person, if any, who controls any such Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively the "**Underwriter Indemnified Parties**," and each an "**Underwriter Indemnified Party**"), against any and all losses, liabilities, claims, damages and expenses whatsoever (including but not limited to any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out of any action between any of the Underwriter Indemnified Parties and the Company or between any of the Underwriter Indemnified Parties and any third party, or otherwise) to which they or any of them may become subject under the Securities Act, the Exchange Act or any other statute or at common law or otherwise or under the laws of foreign countries (a "**Claim**"), (i) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in (A) the Registration Statement, the Pricing Disclosure Package, any Preliminary Prospectus, the Prospectus, or in any Issuer Free Writing Prospectus or in any Written Testing-the-Waters Communication (as from time to time each may be amended and supplemented); (B) any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the Offering, including any "road show" or investor presentations made to investors by the Company (whether in person or electronically); or (C) any application or other document or written communication (in this Section 5, collectively called "**application**") executed by the Company or based upon written information furnished by the Company in any jurisdiction in order to qualify the Public Shares and Representative's Securities under the securities laws thereof or filed with the Commission, any state securities commission or agency, the Exchange or any other national securities exchange; or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, unless such statement or omission was made in reliance upon, and in conformity with, the Underwriters' Information or (ii) otherwise arising in connection with or allegedly in connection with the Offering. The Company also agrees that it will reimburse each Underwriter Indemnified Party for all fees and expenses (including but not limited to any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out of any action between any of the Underwriter Indemnified Parties and the Company or between any of the Underwriter Indemnified Parties and any third party, or otherwise) (collectively, the "**Expenses**"), and further agrees wherever and whenever possible to advance payment of Expenses as they are incurred by an Underwriter Indemnified Party in investigating, preparing, pursuing or defending any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. <u>Procedure</u>. If any action is brought against an Underwriter Indemnified Party in respect of which indemnity may be sought against the Company pursuant to Section 5.1.1, such Underwriter Indemnified Party shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment and fees of counsel (subject to the approval of such Underwriter Indemnified Party) and payment of actual expenses if an Underwriter Indemnified Party requests that the Company do so. Such Underwriter Indemnified Party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, and shall be advanced by the Company. The Company shall not be liable for any settlement of any action effected without its consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the Underwriters, settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action in respect of which advancement, reimbursement, indemnification or contribution may be sought hereunder (whether or not such Underwriter Indemnified Party is a party thereto) unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Underwriter Indemnified Party, acceptable to such Underwriter Indemnified Party, from all liabilities, expenses and claims arising out of such action for which indemnification or contribution may be sought and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Underwriter Indemnified Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Indemnification of the Company</u>. Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who signed the Registration Statement and persons who control the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense described in the foregoing indemnity from the Company to the several Underwriters, as incurred, but only with respect to untrue statements or omissions made in the Registration Statement, any Preliminary Prospectus, the Pricing Disclosure Package or Prospectus or any amendment or supplement thereto or in any application, in reliance upon, and in strict conformity with, the Underwriters' Information. In case any action shall be brought against the Company or any other person so indemnified based on any Preliminary Prospectus, the Registration Statement, the Pricing Disclosure Package or Prospectus or any amendment or supplement thereto or any application, and in respect of which indemnity may be sought against any Underwriter, such Underwriter shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the several Underwriters by the provisions of Section 5.1.2. The Company agrees promptly to notify the Representative of the commencement of any litigation or proceedings against the Company or any of its officers, directors or any person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, in connection with the issuance and sale of the Public Shares or in connection with the Registration Statement, the Pricing Disclosure Package, the Prospectus, or any Issuer Free Writing Prospectus or any Written Testing-the-Waters Communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Contribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1. <u>Contribution Rights</u>. If the indemnification provided for in this Section 5 shall for any reason be unavailable to or insufficient to hold harmless an indemnified party under Section 5.1 or 5.2 in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and the Underwriters, on the other, from the Offering of the Public Shares, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Underwriters, on the other, with respect to the statements or omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Underwriters, on the other, with respect to such Offering shall be deemed to be in the same proportion as the total net proceeds from the Offering of the Public Shares purchased under this Agreement (before deducting expenses) received by the Company, as set forth in the table on the cover page of the Prospectus, on the one hand, and the total underwriting discounts and commissions received by the Underwriters with respect to the Ordinary Shares purchased under this Agreement, as set forth in the table on the cover page of the Prospectus, on the other hand. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contributions pursuant to this Section 5.3.1 were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 5.3.1 shall be deemed to include, for purposes of this Section 5.3.1, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 5.3.1 in no event shall an Underwriter be required to contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by such Underwriter with respect to the Offering of the Public Shares exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2. <u>Contribution Procedure</u>. Within fifteen (15) days after receipt by any party to this Agreement (or its representative) of notice of the commencement of any action, suit or proceeding, such party will, if a claim for contribution in respect thereof is to be made against another party ("**contributing party**"), notify the contributing party of the commencement thereof, but the failure to so notify the contributing party will not relieve it from any liability which it may have to any other party other than for contribution hereunder. In case any such action, suit or proceeding is brought against any party, and such party notifies a contributing party or its representative of the commencement thereof within the aforesaid fifteen (15) days, the contributing party will be entitled to participate therein with the notifying party and any other contributing party similarly notified. Any such contributing party shall not be liable to any party seeking contribution on account of any settlement of any claim, action or proceeding affected by such party seeking contribution on account of any settlement of any claim, action or proceeding affected by such party seeking contribution without the written consent of such contributing party. The contribution provisions contained in this Section 5.3.2 are intended to supersede, to the extent permitted by law, any right to contribution under the Securities Act, the Exchange Act or otherwise available. Each Underwriter's obligations to contribute pursuant to this Section 5.3 are several and not joint.

6. <u>Default by an Underwriter</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Default Not Exceeding 10% of Firm Shares or Option Shares</u>. If any Underwriter or Underwriters shall default in its or their obligations to purchase the Firm Shares or the Option Shares, if the Over-allotment Option is exercised hereunder, and if the number of the Firm Shares or Option Shares with respect to which such default relates does not exceed in the aggregate 10% of the number of Firm Shares or Option Shares that all Underwriters have agreed to purchase hereunder, then such Firm Shares or Option Shares to which the default relates shall be purchased by the non-defaulting Underwriters in proportion to their respective commitments hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Default Exceeding 10% of Firm Shares or Option Shares</u>. In the event that the default addressed in Section 6.1 relates to more than 10% of the Firm Shares or Option Shares, the Representative may in its discretion arrange for itself or for another party or parties to purchase such Firm Shares or Option Shares to which such default relates on the terms contained herein. If, within one (1) Business Day after such default relating to more than 10% of the Firm Shares or Option Shares, the Representative does not arrange for the purchase of such Firm Shares or Option Shares, then the Company shall be entitled to a further period of one (1) Business Day within which to procure another party or parties satisfactory to you to purchase said Firm Shares or Option Shares on such terms. In the event that neither the Representative nor the Company arrange for the purchase of the Firm Shares or Option Shares to which a default relates as provided in this Section 6, this Agreement will automatically be terminated by the Representative or the Company without liability on the part of the Company (except as provided in Sections 3.9 and 5 hereof) or the several Underwriters (except as provided in Section 5 hereof); provided, however, that if such default occurs with respect to the Option Shares, this Agreement will not terminate as to the Firm Shares; and provided, further, that nothing herein shall relieve a defaulting Underwriter of its liability, if any, to the other Underwriters and to the Company for damages occasioned by its default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Postponement of Closing Date</u>. In the event that the Firm Shares or Option Shares to which the default relates are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid, the Representative or the Company shall have the right to postpone the Closing Date or each Option Closing Date for a reasonable period, but not in any event exceeding five (5) Business Days, in order to effect whatever changes may thereby be made necessary in the Registration Statement, the Pricing Disclosure Package or the Prospectus or in any other documents and arrangements, and the Company agrees to file promptly any amendment to the Registration Statement, the Pricing Disclosure Package or the Prospectus that in the opinion of Representative Counsel may thereby be made necessary. The term "**Underwriter**" as used in this Agreement shall include any party substituted under this Section 6 with like effect as if it had originally been a party to this Agreement with respect to such Ordinary Shares.

7. <u>Additional Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Board Composition and Board Designations</u>. The Company shall ensure that: (i) the qualifications of the persons serving as members of the Board of Directors and the overall composition of the Board comply with the Sarbanes-Oxley Act, with the Exchange Act and with the listing rules of the Exchange or any other national securities exchange, as the case may be, in the event the Company seeks to have its Public Shares listed on another exchange or quoted on an automated quotation system, and (ii) if applicable, at least one (1) member of the Audit Committee of the Board of Directors qualifies as an "audit committee financial expert," as such term is defined under Regulation S-K and the listing rules of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Prohibition on Press Releases and Public Announcements</u>. The Company shall not issue press releases or engage in any other publicity, without the Representative's prior written consent, for a period ending at 5:00 p.m., Eastern time, on the first (1<sup>st</sup>) Business Day following (i) the later of the Option Closing Date and the twenty-fifth day after the Closing Date if the Over-allotment Option has been exercised in full, or (ii) the forty-fifth (45<sup>th</sup>) day after the Closing Date if the Over-allotment Option has not been exercised in full , other than normal and customary releases issued in the ordinary course of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Right of First Refusal</u>. Provided that the Firm Shares are sold in accordance with the terms of this Agreement, the Representative shall have an irrevocable right of first refusal (the "**Right of First Refusal**"), for a period of eighteen (18) months after the Closing Date, to act as sole and exclusive investment banker, sole and exclusive book-runner, sole and exclusive financial advisor, sole and exclusive underwriter and/or sole and exclusive placement agent, at the Representative's sole and exclusive discretion, for each and every future public and private equity and debt offering, including all equity linked financings (each, a "**Subject Transaction**"), during such eighteen (18) month period, of the Company, or any successor to or subsidiary of the Company, on terms and conditions customary to the Representative for such Subject Transactions. For the avoidance of any doubt, the Company shall not retain, engage or solicit any additional investment banker, book-runner, financial advisor, underwriter and/or placement agent in a Subject Transaction during such eighteen (18) month period without the express written consent of the Representative.

The Company shall notify the Representative of its intention to pursue a Subject Transaction, including the material terms thereof, by providing written notice thereof by registered mail or overnight courier service addressed to the Representative. If the Representative fails to exercise its Right of First Refusal with respect to any Subject Transaction within ten (10) Business Days after the mailing of such written notice, then the Representative shall have no further claim or right with respect to the Subject Transaction. The Representative may elect, in its sole and absolute discretion, not to exercise its Right of First Refusal with respect to any Subject Transaction; provided that any such election by the Representative shall not adversely affect the Representative's Right of First Refusal with respect to any other Subject Transaction during the eighteen (18) month period agreed to above.

8. <u>Effective Date of this Agreement and Termination Thereof</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Effective Date</u>. This Agreement shall become effective when both the Company and the Representative have executed the same and delivered counterparts of such signatures to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Termination</u>. The Representative shall have the right to terminate this Agreement at any time prior to any Closing Date, (i) if any domestic or international event or act or occurrence has materially disrupted, or in your opinion will in the immediate future materially disrupt, general securities markets in the United States; or (ii) if trading on the New York Stock Exchange or the Nasdaq Stock Market LLC shall have been suspended or materially limited, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required by FINRA or by order of the Commission or any other government authority having jurisdiction; or (iii) if the United States shall have become involved in a new war or an increase in major hostilities; or (iv) if a banking moratorium has been declared by a New York State or federal authority; or (v) if a moratorium on foreign exchange trading has been declared which materially adversely impacts the United States securities markets; or (vi) if the Company shall have sustained a material loss by fire, flood, accident, hurricane, earthquake, theft, sabotage or other calamity or malicious act which, whether or not such loss shall have been insured, will, in Representative's reasonableopinion, make it inadvisable to proceed with the delivery of the Firm Shares or Option Shares; or (vii) if the Company is in material breach of any of its representations, warranties or covenants hereunder; or (viii) if the Representative shall have become aware after the date of this Agreement of such a material adverse change in the conditions or prospects of the Company, or such Material Adverse Change in general market conditions as in the Representative's judgment would make it impracticable to proceed with the offering, sale and/or delivery of the Public Shares or to enforce contracts made by the Underwriters for the sale of the Public Shares; or (ix) the Ordinary Shares shall fail for any reason to open for trading on the Exchange by the end of regular trading hours on [trade date].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Expenses</u>. Notwithstanding anything to the contrary in this Agreement, except in the case of a default by the Underwriters, pursuant to Section 6.2 above, in the event that this Agreement shall not be carried out for any reason whatsoever, within the time specified herein or any extensions thereof pursuant to the terms herein, the Company shall be obligated to pay to the Underwriters their actual and accountable out-of-pocket expenses related to the transactions contemplated herein then due and payable (including the fees and disbursements of Representative Counsel) up to $250,000, inclusive of the $50,000 advance for accountable expenses previously paid by the Company to the Representative (the "**Advance**") and upon demand the Company shall pay the full amount thereof to the Representative on behalf of the Underwriters; provided, however, that such expense cap in no way limits or impairs the indemnification and contribution provisions of this Agreement. Notwithstanding the foregoing, any Advance received by the Representative will be reimbursed to the Company to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Indemnification</u>. Notwithstanding any contrary provision contained in this Agreement, any election hereunder or any termination of this Agreement, and whether or not this Agreement is otherwise carried out, the provisions of Section 5 shall remain in full force and effect and shall not be in any way affected by, such election or termination or failure to carry out the terms of this Agreement or any part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Representations, Warranties, Agreements to Survive</u>. All representations, warranties and agreements contained in this Agreement or in certificates of officers of the Company submitted pursuant hereto, shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its officers or directors or any person controlling the Company or (ii) delivery of and payment for the Public Shares.

9. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Notices</u>. All communications hereunder, except as herein otherwise specifically provided, shall be in writing and shall be mailed (registered or certified mail, return receipt requested), personally delivered or sent by electronic mail transmission and confirmed and shall be deemed given when so delivered and confirmed or if mailed, two (2) days after such mailing.

If to the Representative:

ThinkEquity

17 State Street, 41<sup>st</sup> Fl

New York, NY 10004

Attn: Head of Investment Banking

E-mail: <u>notices@think-equity.com</u>

with a copy (which shall not constitute notice) to:

Carter Ledyard & Milburn LLP

28 Liberty Street, 41<sup>st</sup> Fl

New York, NY 10005

Attn: Guy Ben-Ami

Email: <u>benami@clm.com</u>

If to the Company:

Silentium Ltd.

5 Golda Meir Street

Ness Ziona, 7403649, Israel

Tel: +972-8-946-8664

Attention: Yoel Naor, Chief Executive Officer

with a copy (which shall not constitute notice) to:

Greenberg Traurig. P.A.

One Azrieli Center

Round Tower, 30th floor

132 Menachem Begin Rd

Tel Aviv 6701101 Israel

Attention: David Huberman, Esq.

Email: <u>david.huberman@gtlaw.com</u>

and

Goldfarb Gross Seligman & Co.

One Azrieli Center

Tel Aviv, Israel, 67021

Attention: Shlomo Farkas, Adv.

Email: shlomo.farkas@goldfarb.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Headings</u>. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Amendment</u>. This Agreement may only be amended by a written instrument executed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Entire Agreement</u>. This Agreement (together with the other agreements and documents being delivered pursuant to or in connection with this Agreement) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and thereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof. Notwithstanding anything to the contrary set forth herein, it is understood and agreed by the parties hereto that all other terms and conditions of that certain engagement letter between the Company and ThinkEquity LLC dated July 24, 2025, shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Binding Effect</u>. This Agreement shall inure solely to the benefit of and shall be binding upon the Representative, the Underwriters, the Company and the controlling persons, directors and officers referred to in Section 5 hereof, and their respective successors, legal representatives, heirs and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provisions herein contained. The term "**successors and assigns**" shall not include a purchaser, in its capacity as such, of securities from any of the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Governing Law; Consent to Jurisdiction; Trial by Jury</u>. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Agreement shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.1 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company, in any action, proceeding or claim. The Company agrees that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Execution in Counterparts</u>. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Delivery of a signed counterpart of this Agreement by facsimile or email/pdf transmission shall constitute valid and sufficient delivery thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Waiver, etc</u>. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way effect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

[Signature Page Follows]

If the foregoing correctly sets forth the understanding between the Underwriters and the Company, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between us.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| SILENTIUM, LTD. | SILENTIUM, LTD. |
| By: |  |
|  | Name: |
|  | Title: |

---

Confirmed as of the date first written above mentioned, on behalf of itself and as Representative of the several Underwriters named on <u>Schedule 1</u> hereto:

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| | |
|:---|:---|
| THINKEQUITY LLC | THINKEQUITY LLC |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page]

Silentium, LTD. – Underwriting Agreement

**<u>SCHEDULE 1</u>**

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| | | |
|:---|:---|:---|
| **Underwriter** | **Total<br> Number of**<br> **Firm<br> Shares to be<br> Purchased** | **Number of<br> Option Shares<br> to be<br> Purchased<br> if the<br> Over-Allotment<br> Option is Fully<br> Exercised** |
| ThinkEquity LLC |  |  |
| **TOTAL** |  |  |

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**<u>SCHEDULE 2-A</u>**

**Pricing Information**

Number of Firm Shares: [●]

Number of Option Shares: [●]

Public Offering Price per Share: $[●]

Underwriting Discount per Share: $[●]

Underwriting Non-accountable expense allowance per Share: $[●]

Proceeds to Company per Share (before expenses): $[●]

**<u>SCHEDULE 2-B</u>**

**Issuer General Use Free Writing Prospectuses**

[None.]

**<u>SCHEDULE 2-C</u>**

**Written Testing-the-Waters Communications**

[None]

**<u>SCHEDULE 3</u>**

**List of Lock-Up Parties**

**<u>EXHIBIT A</u>**

**Form of Representative's Warrant Agreement**

THE REGISTERED HOLDER OF THIS WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) THINKEQUITY LLC, OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF THINKEQUITY LLC OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS WARRANT IS NOT EXERCISABLE PRIOR TO [________________] [**DATE THAT IS 180 DAYS FROM THE EFFECTIVE DATE OF THE OFFERING**]. VOID AFTER 5:00 P.M., EASTERN TIME, [___________________] [**DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING**].

**WARRANT TO PURCHASE ORDINARY SHARES**

**SILENTIUM LTD.**

Warrant Shares: _______

Initial Exercise Date: ______, 20[XX]

THIS WARRANT TO PURCHASE ORDINARY SHARES (the "<u>Warrant</u>") certifies that, for value received, _____________ or its assigns (the "<u>Holder</u>") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after ____, 20[XX] [CLOSING DATE, OR 180 DAYS FROM THE EFFECTIVE DATE IF NOT F-3 ELIGIBLE], (the "<u>Initial Exercise Date</u>") and, in accordance with FINRA Rule 5110(g)(8)(A), prior to at 5:00 p.m. (New York time) on the date that is five (5) years following the Effective Date (the "<u>Termination Date</u>") but not thereafter, to subscribe for and purchase from Silentium Ltd, an Israeli company (the "<u>Company</u>"), up to ______ ordinary shares (the "Warrant Shares"), no par value, of the Company (the "<u>Ordinary Shares</u>"), as subject to adjustment hereunder. The purchase price of one Ordinary Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

<u>Section 1</u>. <u>Definitions</u>. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated in this Section 1:

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"<u>Business Day</u>" means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Effective Date</u>" means the effective date of the registration statement on Form F-1 (File No. [333-XXXXXX]), including any related prospectus or prospectuses, for the registration of the Company's Ordinary Shares and the Warrant Shares under the Securities Act, that the Company has filed with the Commission.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Trading Day</u>" means a day on which the New York Stock Exchange is open for trading.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

"<u>VWAP</u>" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Ordinary Shares then listed or quoted on a Trading Market, the daily volume weighted average price of the Ordinary Shares for such date (or the nearest preceding date) on the Trading Market on which the Ordinary Shares are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of Ordinary Shares for such date (or the nearest preceding date) on the OTCQB or OTCQX as applicable, (c) if Ordinary Shares are not then listed or quoted for trading on the OTCQB or OTCQX and if prices for Ordinary Shares are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per Ordinary Shares so reported or (d) in all other cases, the fair market value of the Ordinary Shares as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

<u>Section 2</u>. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise Form annexed hereto. Within one (1) Trading Day following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within five (5) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within two (2) Business Days of receipt of such notice. **The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Exercise Price</u>. The exercise price per share of the Ordinary Shares under this Warrant shall be **$_______**<sup>1</sup>, subject to adjustment hereunder (the "<u>Exercise Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Cashless Exercise</u>. In lieu of exercising this Warrant by delivering the aggregate Exercise Price by wire transfer or cashier's check, at the election of the Holder this Warrant may also be exercised, in whole or in part, at such time by means of a "cashless exercise" in which the Holder shall be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

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| | |
|:---|:---|
| (A) = | as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of "regular trading hours" (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is executed during "regular trading hours" on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of "regular trading hours" on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of "regular trading hours" on such Trading Day; |
| (B) = | the Exercise Price of this Warrant, as adjusted hereunder; and |
| (X) = | the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise. |

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If Warrant Shares are issued in such a "cashless exercise," the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised, and the holding period of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to this Section 2(c).

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

<sup>1</sup> 125% of the public offering price per ordinary share and warrant in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Mechanics of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Warrant Shares Upon Exercise</u>. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by its transfer agent to the Holder by crediting the account of the Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system ("<u>DWAC</u>") if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder, or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 and, in either case, the Warrant Shares have been sold by the Holder prior to the Warrant Share Delivery Date (as defined below), and otherwise by physical delivery of a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is two (2) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the "<u>Warrant Share Delivery Date</u>"). If the Warrant Shares can be delivered via DWAC, the transfer agent shall have received from the Company, at the expense of the Company, any legal opinions or other documentation required by it to deliver such Warrant Shares without legend (subject to receipt by the Company of reasonable back up documentation from the Holder, including with respect to affiliate status) and, if applicable and requested by the Company prior to the Warrant Share Delivery Date, the transfer agent shall have received from the Holder a confirmation of sale of the Warrant Shares (provided the requirement of the Holder to provide a confirmation as to the sale of Warrant Shares shall not be applicable to the issuance of unlegended Warrant Shares upon a cashless exercise of this Warrant if the Warrant Shares are then eligible for resale pursuant to Rule 144(b)(1)). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the second Trading Day following the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Ordinary Shares on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the second Trading Day following such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Rescission Rights</u>. If the Company fails to cause its transfer agent to deliver to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise; <u>provided</u>, <u>however</u>, that the Holder shall be required to return any Warrant Shares or Ordinary Shares subject to any such rescinded exercise notice concurrently with the return to Holder of the aggregate Exercise Price paid to the Company for such Warrant Shares and the restoration of Holder's right to acquire such Warrant Shares pursuant to this Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise</u>. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder's brokerage firm otherwise purchases, Ordinary Shares to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a "<u>Buy-In</u>"), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the Ordinary Shares so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Ordinary Shares that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Ordinary Shares having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Ordinary Shares with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver Ordinary Shares upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>No Fractional Shares or Scrip</u>. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Charges, Taxes and Expenses</u>. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; <u>provided</u>, <u>however</u>, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Closing of Books</u>. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. <u>Signature</u>. This Section 2 and the exercise form attached hereto set forth the totality of the procedures required of the Holder in order to exercise this Warrant. Without limiting the preceding sentences, no ink-original exercise form shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any exercise form be required in order to exercise this Warrant. No additional legal opinion, other information or instructions shall be required of the Holder to exercise this Warrant. The Company shall honor exercises of this Warrant and shall deliver Shares underlying this Warrant in accordance with the terms, conditions and time periods set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Ordinary Shares beneficially owned by the Holder and its Affiliates shall include the number of Ordinary Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Ordinary Shares which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Ordinary Shares Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding Ordinary Shares, a Holder may rely on the number of outstanding Ordinary Shares as reflected in (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company's transfer agent setting forth the number of Ordinary Shares outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of Ordinary Shares then outstanding. In any case, the number of outstanding Ordinary Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding Ordinary Shares was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 9.99% of the number of Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary Shares issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of Ordinary Shares outstanding immediately after giving effect to the issuance of Ordinary Shares upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

<u>Section 3</u>. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Share Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a share dividend or otherwise makes a distribution or distributions on its Ordinary Shares or any other equity or equity equivalent securities payable in Ordinary Shares (which, for avoidance of doubt, shall not include any Ordinary Shares issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding Ordinary Shares into a larger number of shares, (iii) combines (including by way of reverse share split) outstanding Ordinary Shares into a smaller number of shares, or (iv) issues by reclassification of Ordinary Shares of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Ordinary Shares (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of Ordinary Shares outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of shareholder entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. For the purposes of clarification, the Exercise Price of this Warrant will not be adjusted in the event that the Company or any Subsidiary thereof, as applicable, sells or grants any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Ordinary Shares or Ordinary Shares Equivalents, at an effective price per share less than the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) [RESERVED]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Subsequent Rights Offerings</u>. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Ordinary Shares Equivalents or rights to purchase shares, warrants, securities or other property pro rata to the record holders of any class of Ordinary Shares (the "<u>Purchase Rights</u>"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Pro Rata Distributions</u>. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend (other than cash dividends) or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares, by way of return of capital or otherwise (including, without limitation, any distribution of shares or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "<u>Distribution</u>"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Ordinary Shares are to be determined for the participation in such Distribution (<u>provided</u>, <u>however</u>, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Ordinary Shares as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Fundamental Transaction</u>. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding Ordinary Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "<u>Fundamental Transaction</u>"), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of Ordinary Shares of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "<u>Alternate Consideration</u>") receivable by holders of Ordinary Shares as a result of such Fundamental Transaction for each Ordinary Share for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Ordinary Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "<u>Successor Entity</u>") to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the "Company" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Calculations</u>. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of Ordinary Shares (excluding treasury shares, if any) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Notice to Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Adjustment to Exercise Price</u>. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Exercise by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares, (C) the Company shall authorize the granting to all holders of the Ordinary Shares rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Ordinary Shares are converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed a notice to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Ordinary Shares of record shall be entitled to exchange their Ordinary Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to provide such notice or any defect therein shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Report on Form 6-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

<u>Section 4</u>. <u>Transfer of Warrant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Transferability</u>. Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of any security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. by operation of law or by reason of reorganization of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. to any FINRA member firm participating in the offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. if the aggregate amount of securities of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the fund; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

Subject to the foregoing restriction, any applicable securities laws and the conditions set forth in Section 4(d), this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>New Warrants</u>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Warrant Register</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "<u>Warrant Register</u>"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Representation by the Holder</u>. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

<u>Section 5. Registration Rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>5.1.</u> <u>Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1 Grant of Right. The Company, upon written demand (a "Demand Notice") of the Holder(s) of at least 51% of the Warrants and/or the underlying Warrant Shares ("Majority Holders"), agrees to register, on one occasion, all or any portion of the Warrant Shares underlying the Warrants (collectively, the "Registrable Securities"). On such occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within thirty (30) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder is entitled to piggyback registration rights pursuant to Section 5.2 hereof and either: (i) the Holder has elected to participate in the offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after such offering is consummated. The demand for registration may be made at any time beginning on the Initial Exercise Date and expiring on the fifth anniversary of the Effective Date. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s) to all other registered Holders of the Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2 Terms. The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 5.1.1, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such States as are reasonably requested by the Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause: (i) the Company to be obligated to register or license to do business in such State or submit to general service of process in such State, or (ii) the principal shareholders of the Company to be obligated to escrow their shares of capital stock of the Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section 5.1.1 to remain effective for a period of at least twelve (12) consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell the Warrant Shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding the provisions of this Section 5.1.2, the Holder shall be entitled to a demand registration under this Section 5.1.2 on only one (1) occasion and such demand registration right shall terminate on the fifth anniversary of the date of the Underwriting Agreement (as defined below) in accordance with FINRA Rules 5110(g)(8)(B) and 5110(g)(8)(C).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>5.2</u> <u>"Piggy-Back" Registration.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1 Grant of Right. In addition to the demand right of registration described in Section 5.1 hereof, the Holder shall have the right, for a period of no more than two (2) years from the Initial Exercise Date in accordance with FINRA Rule 5110(g)(8)(D), to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8 or any equivalent form); provided, however, that if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of Shares which may be included in the Registration Statement because, in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2 Terms. The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 5.2.1 hereof, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company during the two (2) year period following the Initial Exercise Date until such time as all of the Registrable Securities have been sold by the Holder. The holders of the Registrable Securities shall exercise the "piggy-back" rights provided for herein by giving written notice within ten (10) days of the receipt of the Company's notice of its intention to file a registration statement. Except as otherwise provided in this Warrant, there shall be no limit on the number of times the Holder may request registration under this Section 5.2.2; provided, however, that such registration rights shall terminate on the second anniversary of the Initial Exercise Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>5.3</u> <u>General Terms</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 Indemnification. The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of the Exchange Act against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement between the Underwriters and the Company, dated as of [___], 20[XX]. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section 5.2 of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2 Exercise of Warrants. Nothing contained in this Warrant shall be construed as requiring the Holder(s) to exercise their Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3 Documents Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a "cold comfort" letter dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting firm which has issued a report on the Company's financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants' letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below and to the managing underwriter, if any, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times as any such Holder shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.4 Underwriting Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to this Section 5, which managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders, their Warrant Shares and their intended methods of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.5 Documents to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.6 Damages. Should the registration or the effectiveness thereof required by Sections 5.1 and 5.2 hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security.

<u>Section 6</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>No Rights as Shareholder Until Exercise</u>. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or share certificate, if mutilated, the Company will make and deliver a new Warrant or share certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or share certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Authorized Shares</u>.

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Jurisdiction</u>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the underwriting agreement, dated ___, 20[XX], by and between the Company and ThinkEquity LLC as representatives of the underwriters set forth therein (the "Underwriting Agreement").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Restrictions</u>. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Nonwaiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision of this Warrant or the Underwriting Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Notices</u>. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Underwriting Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Ordinary Shares or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Remedies</u>. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Amendment</u>. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

*(Signature Page Follows)*

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

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| | |
|:---|:---|
| **Silentium Ltd.** | **Silentium Ltd.** |
| By: |  |
|  | Name: |
|  | Title: |

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**NOTICE OF EXERCISE**

TO: Silentium LTd.

_________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Payment shall take the form of (check applicable box):

◻ in lawful money of the United States; or

◻ if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Please register and issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

_______________________________

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

_______________________________

_______________________________

_______________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Accredited Investor</u>. If the Warrant is being exercised via cash exercise, the undersigned is an "accredited investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended

[SIGNATURE OF HOLDER]

Name of Investing Entity: ________________________________________________________________________________________________

*Signature of Authorized Signatory of Investing Entity*: _________________________________________________________________________

Name of Authorized Signatory: ___________________________________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________________________________

Date: _______________________________________________________________________________________________________________

**ASSIGNMENT FORM**

(To assign the foregoing warrant, execute<br> this form and supply required information.<br> Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

Dated: ______________, _______

Holder's Signature: _____________________________

Holder's Address: _____________________________

_____________________________

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

**<u>EXHIBIT B</u>**

**Lock-Up Agreement**

[•], 2026

ThinkEquity LLC

17 State Street, 41<sup>st</sup> Floor

New York, NY 10004

As Representative of the several Underwriters named on Schedule 1 to the Underwriting Agreement referenced below

Ladies and Gentlemen:

The undersigned understands that ThinkEquity LLC (the "**Representative**"), proposes to enter into an Underwriting Agreement (the "**Underwriting Agreement**") with Silentium Ltd., an Israeli corporation (the "**Company**"), providing for the initial public offering (the "**Public Offering**") of Ordinary Shares, no par value, of the Company (the "**Ordinary Shares**").

To induce the Representative to continue its efforts in connection with the Public Offering, the undersigned hereby agrees that, without the prior written consent of the Representative, the undersigned will not, during the period commencing on the date hereof and ending [six (6) months]/[twelve (12) months]<sup>1</sup> after the date of the Underwriting Agreement relating to the Public Offering (the "**Lock-Up Period**"), (1) offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "**Lock-Up Securities**"); (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer Lock-Up Securities without the prior written consent of the Representative in connection with (a) transactions relating to Lock-Up Securities acquired in the Public Offering or in open market transactions after the completion of the Public Offering; <u>provided</u> that no filing under Section 13 or Section 16(a) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), shall be required or shall be voluntarily made in connection with subsequent sales of Lock-Up Securities acquired in such transactions; (b) transfers of Lock-Up Securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of the undersigned or a family member (for purposes of this lock-up agreement, "family member" means any relationship by blood, marriage or adoption, not more remote than first cousin); (c) transfers of Lock-Up Securities to a charity or educational institution; (d) transfers of Lock-Up Securities to any corporation, partnership, limited liability company, or other business entity all of the equity holders of which consist of the undersigned and/or the immediate family of the undersigned; (e) if the undersigned is a corporation, partnership, limited liability company or other business entity, (i) any transfers of Lock-Up Securities to another corporation, partnership or other business entity that controls, is controlled by or is under common control with the undersigned or (ii) distributions of Lock-Up Securities to members, partners, stockholders, subsidiaries or affiliates (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned; (f) if the undersigned is a trust, to a trustee or beneficiary of the trust; <u>provided</u> that in the case of any transfer pursuant to the foregoing clauses (b), (c), (d), (e) or (f), (i) any such transfer shall not involve a disposition for value, (ii) each transferee shall sign and deliver to the Representative a lock-up agreement substantially in the form of this lock-up agreement and (iii) no filing under Section 13 or Section 16(a) of the Exchange Act shall be required or shall be voluntarily made; (g) the receipt by the undersigned from the Company of Ordinary Shares upon the vesting of restricted stock awards or stock units or upon the exercise of options to purchase the Company's Ordinary Shares issued under an equity incentive plan of the Company or an employment arrangement described in the Pricing Prospectus (as defined in the Underwriting Agreement) (the "**Plan Shares**") or the transfer of Ordinary Shares or any securities convertible into Ordinary Shares to the Company upon a vesting event of the Company's securities or upon the exercise of options to purchase the Company's securities, in each case on a "cashless" or "net exercise" basis or to cover tax obligations of the undersigned in connection with such vesting or exercise, but only to the extent such right expires during the Lock-up Period, <u>provided</u> that, if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange Act reporting a reduction in beneficial ownership of Ordinary Shares during the Lock-Up Period, the undersigned shall include a statement in such schedule or report to the effect that the purpose of such transfer was to cover tax withholding obligations of the undersigned in connection with such vesting or exercise and, <u>provided</u> <u>further</u>, that the Plan Shares shall be subject to the terms of this lock-up agreement; (h) the transfer of Lock-Up Securities pursuant to agreements described in the Pricing Prospectus under which the Company has the option to repurchase such securities or a right of first refusal with respect to the transfer of such securities, <u>provided</u> that if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange Act reporting a reduction in beneficial ownership of Ordinary Shares during the Lock-Up Period, the undersigned shall include a statement in such schedule or report describing the purpose of the transaction; (i) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Lock-Up Securities, <u>provided</u> that (i) such plan does not provide for the transfer of Lock-Up Securities during the Lock-Up Period and (ii) to the extent a public announcement or filing under the Exchange Act, if any, is required of or voluntarily made by or on behalf of the undersigned or the Company regarding the establishment of such plan, such public announcement or filing shall include a statement to the effect that no transfer of Lock-Up Securities may be made under such plan during the Lock-Up Period; (j) the conversion of the outstanding preferred shares of the Company into Ordinary Shares, <u>provided</u> that such Ordinary Shares remain subject to the terms of this agreement; (k) the transfer of Lock-Up Securities that occurs by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce settlement, <u>provided</u> that the transferee agrees to sign and deliver a lock-up agreement substantially in the form of this lock-up agreement for the balance of the Lock-Up Period, and <u>provided</u> <u>further</u>, that any filing under Section 13 or Section 16(a) of the Exchange Act that is required to be made during the Lock-Up Period as a result of such transfer shall include a statement that such transfer has occurred by operation of law; and (l) the transfer of Lock-Up Securities pursuant to a bona fide third party tender offer, merger, consolidation or other similar transaction made to all holders of the Ordinary Shares involving a change of control (as defined below) of the Company after the closing of the Public Offering and approved by the Company's board of directors; <u>provided</u> that in the event that the tender offer, merger, consolidation or other such transaction is not completed, the Lock-Up Securities owned by the undersigned shall remain subject to the restrictions contained in this lock-up agreement. For purposes of clause (l) above, "change of control" shall mean the consummation of any bona fide third party tender offer, merger, amalgamation, consolidation or other similar transaction the result of which is that any "person" (as defined in Section 13(d)(3) of the Exchange Act), or group of persons, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of a majority of total voting power of the voting stock of the Company. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Lock-Up Securities except in compliance with this lock-up agreement.

<sup>1</sup> D&Os subject to 12 months Lock-Up Period and the remaining lock up parties are subject to 6 months.

If the undersigned is an officer or director of the Company, (i) the undersigned agrees that the foregoing restrictions shall be equally applicable to any issuer-directed or "friends and family" Securities that the undersigned may purchase in the Public Offering; (ii) the Representative agrees that, at least three (3) business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Lock-Up Securities, the Representative will notify the Company of the impending release or waiver; and (iii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two (2) business days before the effective date of the release or waiver. Any release or waiver granted by the Representative hereunder to any such officer or director shall only be effective two (2) business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer of Lock-Up Securities not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this lock-up agreement to the extent and for the duration that such terms remain in effect at the time of such transfer.

The undersigned understands that the Company and the Representative are relying upon this lock-up agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors and assigns.

This lock-up agreement shall automatically terminate and be void and of no further force or effect if (i) the Underwriters notify the Company that they do not intend to proceed with the Public Offering prior to the execution of the Underwriting Agreement, (ii) the Company notifies the Representative that it does not intend to proceed with the Public Offering prior to execution of the Underwriting Agreement, (iii) the Underwriting Agreement is not executed by [December 31, 2027], (iv) the Underwriting Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Ordinary Shares to be sold thereunder, or (v) the Registration Statement is withdrawn by the Company prior to the completion of the Public Offering.

Whether or not the Public Offering actually occurs depends on a number of factors, including market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the Representative.

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|:---|
| Very truly yours, |
| (Name - Please Print) |
| (Signature) |
| (Name of Signatory, in the case of entities - Please Print) |
| (Title of Signatory, in the case of entities - Please Print) |
| Address: |

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**<u>EXHIBIT C</u>**

**Form of Press Release**

**Silentium Ltd.**

**[Date]**

Silentium (the "**Company**") announced today that ThinkEquity LLC, acting as representative for the underwriters in the Company's recent public offering of _______ ordinary shares of the Company, is [waiving] [releasing] a lock-up restriction with respect to _________ the ordinary shares of the Company held by [certain officers or directors] [an officer or director] of the Company. The [waiver] [release] will take effect on _________, 2026, and the shares may be sold on or after such date.

This press release is not an offer or sale of the securities in the United States or in any other jurisdiction where such offer or sale is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended.

## Exhibit 3.1

**Exhibit 3.1**

**Companies Law, 5759–1999<br> Articles of Association of the Company<br> June 19, 2025**

**1. Company Name:**

In Hebrew: Silentium Ltd.<br> In English: Silentium Ltd.

**2. Company Objectives:**

To engage in any lawful activity, pursuant to Section 32(1) of the Companies Law.

**3. Details Regarding the Company's Registered Share Capital:**

&nbsp;&nbsp;&nbsp;&nbsp;1. 6,852,239,835 ordinary shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;2. 12,774,225 Series A-1 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;3. 9,681,788 Series A-2 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;4. 2,144,348 Series A-3 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;5. 5,792,646 Series A-4 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;6. 47,264,535 Series A-5 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;7. 315,820,542 Series B-1 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;8. 315,820,542 Series B-2 Preferred Shares, no par value.

&nbsp;&nbsp;&nbsp;&nbsp;9. 4,438,461,539 Series C Preferred Shares, no par value.

**4. Limited Liability:**

The liability of all shareholders is limited, such that each shareholder is liable only up to the full amount that such shareholder has undertaken to pay in respect of the shares allocated to such shareholder, and which has not yet been paid.

**5. Number of Shareholders; Offering of Shares and Debt Securities to the Public; Transfer of Shares:**

a. Any transfer of shares requires approval as set forth in **<u>Appendix A</u>** to these Articles.<br> b. The company is prohibited from offering shares and/or debentures to the public.<br> c. The number of shareholders shall not exceed fifty, other than employees of the company or former employees who continue to hold shares even after termination of their employment.

The rights attaching to the shares and the arrangements concerning the management of the company shall be in accordance with the provisions of **<u>Appendix A</u>**, which forms an integral part of these Articles.

**Amended and Restated**

**Articles of Association**

**of**

**סילנטיום בע"מ**

**SILENTIUM LTD.**

**Effective as of May __, 2025** (the "**Effective Date**")

**<u>GENERAL</u>**

1. **Definition and Interpretation**

1.1. The following terms in these Articles of Association shall have the respective meanings ascribed to them below:

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| | | |
|:---|:---|:---|
| *Affiliate* | With respect to any person, any other person, directly or indirectly, through one or more intermediary persons, controlling, controlled by, or under common control with such person. | With respect to any person, any other person, directly or indirectly, through one or more intermediary persons, controlling, controlled by, or under common control with such person. |
| *Articles* | The Articles of Association of the Company, as set forth herein or as amended expressly or pursuant to the law. | The Articles of Association of the Company, as set forth herein or as amended expressly or pursuant to the law. |
| *Board* | The Board of Directors of the Company. | The Board of Directors of the Company. |
| *Business Day* | Sunday to Thursday, inclusive, with the exception of official holidays and official days of rest in the State of Israel. | Sunday to Thursday, inclusive, with the exception of official holidays and official days of rest in the State of Israel. |
| *Companies Law* | The Companies Law, 5759-1999, as may be amended from time to time. | The Companies Law, 5759-1999, as may be amended from time to time. |
| *Companies Regulations* | Regulations promulgated under the Companies Law. | Regulations promulgated under the Companies Law. |
| *Company* | Silentium Ltd. | סילנטיום בע"מ |
| *Control or control* | The (i) direct or indirect ownership of at least majority of equity rights in an entity, or (ii) the right to elect fifty percent (50%) or more of the board members of such entity. | The (i) direct or indirect ownership of at least majority of equity rights in an entity, or (ii) the right to elect fifty percent (50%) or more of the board members of such entity. |

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| | |
|:---|:---|
| *Director* | A Director of the Company in accordance with the definition of the Companies Law. |
| *Dividend* | As defined in the Companies Law, including any repurchase by the Company of its shares. |
| *Eligible Shareholder* | (a) Any Preferred Shareholder holding 4.5% or more of the Company's issued and outstanding share capital; and (b) the Founder and its Permitted Transferees, as long as they hold together 1% or more of the Company's issued and outstanding share capital (taking into consideration for these purposes any shares and valid, outstanding and exercisable options held by the Founder and its Permitted Transferees at the relevant measurement date). |
| *Founder* | Yossi Barath and/or Mashav Barath. |
| *General Meeting* | A general meeting of the Shareholders of the Company. |
| *IPO* | The consummation of the initial underwritten public offering of the Company's securities pursuant to an effective registration statement under the Securities Act of 1933, as amended, or any equivalent law of another jurisdiction. |
| *Law* | The provisions of any law ("דין") as defined in the Interpretation Law, 1981. |
| *Management Agreement* | That certain agreement between the Company and Mashav-Barath Enterprises Ltd. ("**Mashav-Barath**") as amended and restated in February 2014 and as may be further amended from time to time. |
| *Molex* | Means Molex Ventures Holdings (Israel), Inc. |
| *Office Holder* | An Office Holder ("נושא משרה") of the Company, as defined in the Companies Law. |
| *Ordinary Majority* | More than fifty percent (50%) of the votes of the Shareholders who are entitled to vote and who voted in a General Meeting in person or by proxy. |

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| | |
|:---|:---|
| *Ordinary Shares* | The Company's Ordinary Shares, of no par-value. |
| *Permitted Transferee* | Either: |
|  | (i) in the case of a Shareholder who is an individual – a spouse, child or parent of the shareholder and any corporate entity in which he and his Permitted Transferees own all of the voting power; |
|  | (ii) in the case of any incorporated Shareholder (whether company or partnership), any legal entity or person which controls, is controlled by, or is under common control with, in each case, either directly or indirectly, such incorporated shareholder, or a trustee for such Shareholder; |
|  | (iii) in the case of a Shareholder who is a limited partnership – (a) its limited partners, general partners or the limited or general partners of such limited or general partners, and any person or entity controlling (either directly or through an entity controlled by such person or entity), such limited or general partners, and (b) any affiliate of any of the above managed by the same management company or managing general partner or by an entity which controls, is controlled by, or is under common control with such management company or managing general partner, or any shareholder, partner or member of such affiliate. |
|  | (iv) with respect to LTG, any Affiliate of Lewis Trust Group Ltd; and |
|  | (v) in the case of Heliant Ventures III Ltd. , without derogating from the foregoing, any of Heliant Investment Management Limited, Heliant Ventures Ltd., Heliant Ventures II Ltd. and Heliant Pty. Ltd (Heliant Investments Trust (collectively, the "Heliant Group")); Furthermore, a transfer from a Shareholder to a trustee of such Shareholder and a transfer from a trustee to a Shareholder which is the beneficiary of such trustee (including the direct transfer of shares from one trustee to another) shall be deemed a transfer of shares to a Permitted Transferee. |
| *Preferred A Shareholder*  | Holder of the Preferred A Shares. |

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| | |
|:---|:---|
| *Preferred A Shares* | Series A Preferred Shares of the Company, no par value, including all sub-classes thereof. |
| *Preferred B-1 Shareholders*  | Holders of the Preferred B-1 Shares. |
| *Preferred B-1 Shares* | Series B-1 Preferred Shares of the Company, no par value. |
| *Preferred B-2 Shareholder* | Holder of Preferred B-2 Shares. |
| *Preferred B-2 Shares* | Series B-2 Preferred Shares of the Company, no par value. |
| *Preferred C Shares* | Series C Preferred Shares of the Company, no par value. |
| *Preferred C Shareholder* | Holder of Preferred C and Preferred C Shares. |
| *Preferred Shareholders* | Holders of Preferred B-1 Shares, Preferred B-2 Shares, and Preferred C Shares. |
| *Preferred Shares* | Collectively, the Preferred A Shares, the Preferred B-1 Shares, the Preferred B-2 Shares, and the Preferred C Shares. |
| *Securities *  | Shares of capital stock (whether or not registered on the date hereof), bonds, capital notes or securities, any of which that are shares or that are, or may become, convertible, exchangeable or exercisable into shares (including rights, options and warrants to purchase shares), and certificates conferring a right in such securities, in each case issued by the Company. |
| *Series A Original Issue Price* | Means with respect to the: (i) Preferred A-1 Shares - US $0.0889, (ii) Preferred A-2 Shares - US $0.0591, (iii) Preferred A-3 Shares - US $0.0420, (iv) Preferred A-4 Shares - US $0.0348 ,and (v) Preferred A-5 Shares - US $0.0344 - the price per share originally paid by the investors in consideration for the (pre-capitalization) Series A Preferred Shares, all subject to adjustment for any share combination, subdivision or other recapitalization of the Preferred A Shares. |

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| | |
|:---|:---|
| *Series B-1 Original Issue Price* | Means US$0.00847, subject to adjustment for any share combination, subdivision or other recapitalization of the Preferred B-1 Shares or as otherwise provided in these Articles. |
| *Series B-2 Original Issue Price* | Means US$0.00847; provided, however, that if prior to the expiration of the SAFE Warrant (as such term is defined in the Series C SPA), the Company is acquired for Fifty Million U.S Dollars ($50,000,000.00) or less, then the Series B-2 Original Issue Price shall be reduced to Zero ($0.00); all subject to adjustment for any share combination, subdivision or other recapitalization of the Preferred B-2 Shares or as otherwise provided in these Articles. |
| *Series C Original Issue Price* | Means $0.00325, subject to adjustment for any share combination, subdivision or other recapitalization of the Preferred C Shares or as otherwise provided in these Articles. |
| *Series C SPA* | Means that certain Series C Share Purchase and Recapitalization Agreement, by and between the Company and the Purchasers (as defined therein) dated September 5, 2024. |
| *Terra Group* | Means Terra Venture Partners and its parallel investment vehicles. |

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1.2. Unless the subject or the context otherwise requires, each word and expression not specifically defined herein and defined in the Companies Law as in effect on the date when these Articles first became effective shall have the same meaning herein, and to the extent that no meaning is attached to it in the Companies Law, the meaning ascribed to it in the Companies Regulations, and if no meaning is ascribed thereto in the Companies Regulations, the meaning ascribed to it in the Securities Law, 1968 or the regulations promulgated thereunder.

1.3. Words and expressions importing the singular shall include the plural and vice versa, words and expressions importing the masculine gender shall include the feminine gender and words and expressions importing persons shall include corporate entities. The term "including" shall mean "including without limitation". Any reference to the term "person" shall include an individual, corporation, partnership, joint venture, trust, any other corporate entity and any unincorporated corporation or organization.

1.4. The captions in these Articles are for convenience only and shall not be deemed a part hereof or affect the construction of any provision hereof.

1.5. All shares held or acquired by a Shareholder and its Permitted Transferees, shall be aggregated together for the purpose of determining the availability of any rights to such Shareholder under these Articles.

1.6. Without derogating from the generality of the above, all shares and all then outstanding and exercisable options (meaning, expired options shall not be counted) held or acquired by the Founder and its Permitted Transferees, shall be aggregated together for the purpose of determining the availability of any rights to such Shareholder under these Articles, and the permitted level of participation in those rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Private Company** 

The Company is a private company, as defined in the Companies Law. Furthermore:

2.1. The number of Shareholders for the time being of the Company (exclusive of persons who are in the employment of the Company and of persons who having been formerly in the employment of the Company were, while in such employment, and have continued after termination of such employment to be, Shareholders of the Company), shall not exceed fifty (50), but where two or more persons jointly own one or more shares in the Company, they shall, for the purposes of this Article, be treated as a single Shareholder;

2.2. Any invitation to the public to subscribe for any shares or debentures of the Company is hereby prohibited; and

2.3. The right to transfer shares in the Company shall be restricted as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.  **<u>The Purpose of the Company</u>** 

The purpose of the Company is to operate in accordance with business considerations to generate profits; provided, however, that the Company may donate reasonable amounts to worthy causes, as the Board may determine in its discretion, even if such donations are not within the framework of business considerations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>The Objectives of the Company</u>** 

The Company shall engage in any lawful business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.  **<u>Limited Liability</u>** 

The liability of the Shareholders of the Company is limited, each one up to the par value amount of the shares of the Company allotted to him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.  **<u>Share Capital</u>** 

X. 6,852,239,835 מניות רגילות, ללא ערך נקוב.

XI. 12,774,225 מניות בכורה א'-1, ללא ערך נקוב.

XII. 9,681,788 מניות בכורה א-2, ללא ערך נקוב.

XIII. 2,144,348 מניות בכורה א'-3, ללא ערך נקוב.

XIV. 5,792,646 מניות בכורה א'-4, ללא ערך נקוב.

XV. 47,264,535 מניות בכורה א'-5, ללא ערך נקוב.

XVI. 315,820,542 מניות בכורה ב-1', ללא ערך נקוב.

XVII. 315,820,542 מניות בכורה ב'-2, ללא ערך נקוב.

XVIII. 4,438,461,539 מניות בכורה ג', ללא ערך נקוב.

6.1. The registered share capital of the Company is divided into: (a) 6,852,239,835 Ordinary Shares; (b) 77,657,541 Preferred A Shares consisting of 12,774,225 Preferred A-1 Shares (the "**Preferred A-1 Shares**"), 9,681,788 Preferred A-2 Shares (the "**Preferred A-2 Shares**"), 2,144,348 Preferred A-3 Shares (the "**Preferred A-3 Shares**"), 5,792,646 Preferred A-4 Shares (the "**Preferred A-4 Shares**"), 47,264,535 Preferred A-5 Shares (the "**Preferred A-5 Shares**"); (c) 631,641,084 Preferred B Shares consisting of 315,820,542 Preferred B-1 Shares, and 315,820,542 Preferred B-2 Shares (collectively, the "**Preferred B Shares**"), and (d) 4,438,461,539Preferred C Shares. The Preferred A-1 Shares, Preferred A-2 Shares, Preferred A-3 Shares, Preferred A-4 Shares, Preferred A-5 Shares shall collectively be also referred to as the "**Pre-Carve-Out A Shares**").

6.2. The Ordinary Shares shall have all the rights attached to the Ordinary Shares in these Articles, including the right to receive notices of General Meetings, to attend and vote at General Meetings, to participate in distribution of Dividends and to participate in distribution of surplus assets and funds in the Company (subject to the provisions of Articles ‎76 and ‎93), and no other rights except as may be expressly provided for herein or under the Companies Law.

6.3. Subject to and without derogating from the provisions of Articles ‎76 and ‎93, all the Ordinary Shares rank *pari passu* in relation to the amounts of capital paid or credited as paid on their nominal value, in connection with Dividend, the distribution of bonus shares and any other distribution, return of the capital and participation in a distribution of the Company's surplus assets on winding up.

6.4. The Preferred Shares shall confer on the holders thereof all rights accruing to holders of Ordinary Shares in the Company, and in addition, the Preferred Shares shall have the rights, preferences and privileges granted to the Preferred Shares in these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.  **<u>Conversion of Preferred Stock</u>** 

7.1. <u>Conversion by Holder</u>. Each Preferred Share shall be convertible, at the option of the holder thereof, in whole or in part, at any time or from time to time, into fully paid and non-assessable Ordinary Shares as is determined by Article 7.3.

7.2. <u>Automatic Conversion</u>. All outstanding Preferred Shares shall be automatically converted into duly authorized fully paid and non-assessable Ordinary Shares (i) immediately prior to the closing of an IPO; or (ii) upon the written consent of the holders of at least a majority of the then outstanding Preferred Shares voting together as one class (on an as-converted basis). The Company shall give notice to each holder of Preferred Shares of this conversion not less than fourteen (14) days prior to the consummation of an IPO, or promptly after the receipt of the notice from the requisite holders of Preferred Shares, as the case may be.

7.3. <u>Conversion Price</u>

The number of Ordinary Shares issuable upon the conversion of each Preferred Share shall equal the quotient obtained by dividing (x) the respective Original Issue Price of each share, by (y) the conversion price per share applicable to such share in effect at the time of conversion. The conversion price per share for each Preferred Share shall as of the Effective Date be such share's respective Original Issue Price, and shall be subject to adjustment from time to time as provided in Articles ‎7.5 and 7.6 below. The respective conversion price of each Preferred Share, as in effect from time to time, is referred to as its "**Conversion Price**".

7.4. <u>Mechanics of Conversion</u>

(a) Each holder that desires to convert Preferred Shares into Ordinary Shares pursuant to Article ‎7.1 shall surrender the certificate or certificates therefor at the office of the Company, and shall give notice to the Company at such office that such holder elects to convert the same and shall state therein the number of Preferred Shares being converted. Thereupon the Company shall promptly issue and deliver at such office to such holder certificates for the number of Ordinary Shares to which such holder is entitled upon conversion. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of the certificate representing the Preferred Shares to be converted, and the person entitled to receive the Ordinary Shares issuable upon such conversion shall be treated for all purposes as the record holder of such Ordinary Shares on such date.

(b) In the event of any conversion of Preferred Shares pursuant to Article ‎7.2, the certificates representing such Preferred Shares shall thereupon represent solely the right to receive the Ordinary Shares into which the Preferred Shares represented by such certificates shall have been converted upon the tender of such certificates to the Company, and the record holder of such Preferred Shares shall be treated for all purposes as the record holder of such Ordinary Shares effective upon the date of such conversion. Upon the occurrence of such conversion of the Preferred Shares, the holders thereof shall surrender the certificates representing such shares at the office of the Company. Thereupon, there shall be issued and delivered to such holder promptly at such office and in its name as shown on such surrendered certificate or certificates, certificates for the number of shares of Ordinary Shares into which the Preferred Shares surrendered were convertible on the date of such conversion. Failure to surrender the certificate pursuant to the terms hereof shall not affect the conversion.

7.5. <u>Adjustments</u>. The Conversion Price and the number of Ordinary Shares issuable upon conversion of each Preferred Share shall be subject to adjustment as follows:

(a) <u>Adjustment for Stock Splits and Combinations</u>. If the Company effects a subdivision of the outstanding Ordinary Shares, the Conversion Price in effect immediately before the subdivision shall be proportionately decreased, and, the number of Ordinary Shares issuable upon conversion shall be proportionately increased. Conversely, if the Company combines the outstanding Ordinary Shares into a smaller number of shares, the Conversion Price in effect immediately before the combination shall be proportionately increased, and, the number of Ordinary Shares issuable upon conversion shall be proportionately decreased. Any adjustment under this paragraph ‎(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(b) <u>Adjustments for Reclassification, Exchange and Substitution</u>. In the event the Ordinary Shares issuable upon the conversion of the Preferred Shares are changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or a reorganization, merger, consolidation or sale of assets provided for elsewhere in this Article ‎7), then in any such event each holder of Preferred Shares shall have the right thereafter to receive, upon the conversion of such Preferred Shares, the kind and amount of shares and other securities and property receivable upon such recapitalization, reclassification or other change by holders of the number of Ordinary Shares into which such Preferred Shares would have been converted, all subject to further adjustments as provided herein.

(c) <u>Reorganizations, Mergers, Consolidations or Sales of Assets</u>. If there is a capital reorganization of the Ordinary Shares (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Article ‎7) or a merger or consolidation of the Company with or into another company, or the sale of the Company's properties and assets to any other person, then, subject to compliance with, and without derogating in any manner from the provisions of Article 93 hereof (if applicable to such transaction), as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the holders of the Preferred Shares shall thereafter be entitled to receive, upon the conversion of such Preferred Shares, the number of shares of stock or other securities or property to which a holder of the number of shares of Ordinary Shares issuable upon such conversion would have been entitled upon such capital reorganization, merger, consolidation or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this Article ‎7 with respect to the rights of the holders of such Preferred Shares after the reorganization, merger, consolidation or sale to the end that the provisions of this Article ‎7 (including adjustment of the Conversion Price then in effect and the number of shares issuable upon conversion of such Preferred Shares) shall be applicable after that event and be as nearly equivalent as may be practicable.

(d) <u>Share Dividend</u>. Subject to the provisions of Article 76, if the Company at any time pays a Dividend, with respect to its Ordinary Shares only, payable in additional Ordinary Shares or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly, additional Ordinary Shares, without any comparable payment or distribution to the holders of Preferred Shares (hereinafter referred to as "**Ordinary Shares Equivalents**"), then the Conversion Price shall be adjusted as at the date the Company fixes as a record date for the purpose of receiving such Dividend (or if no such record date is fixed, as at the date of such payment) to that price determined by multiplying the Conversion Price in effect immediately prior to such record date (or if no record date is fixed then immediately prior to such payment) by a fraction (a) the numerator of which shall be the total number of Ordinary Shares outstanding and those issuable with respect to Ordinary Shares Equivalents prior to the payment of such Dividend, and (b) the denominator of which shall be the total number of shares of Ordinary Shares outstanding and those issuable with respect to such Ordinary Shares Equivalents immediately after the payment of such Dividend (plus, in the event that the Company paid cash for fractional shares, the number of additional shares which would have been outstanding had the Company issued fractional shares in connection with such Dividend).

(e) <u>Notices of Record Date</u>. In the event of (A) any taking by the Company of record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any Dividend or other distribution, or (B) any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company, any merger or consolidation of the Company with or into any other company, or any transfer of all or substantially all of the assets of the Company to any other person or any voluntary or involuntary dissolution, liquidation or winding up of the Company, the Company shall mail to each holder of Preferred Shares, at least twenty one (21) days prior to the record date specified therein (or such shorter period as may be agreed to by holders of majority of the Preferred Shares), a notice specifying (1) the date on which any such record is to be taken for the purpose of such Dividend or distribution and a description of such Dividend or distribution, (2) the date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up is expected to become effective, and (3) the date, if any, that is to be fixed, as of when the holders of record of Ordinary Shares and Preferred Shares (or other securities) shall be entitled to exchange their securities for securities or other property deliverable upon such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up.

(f) <u>Rounding of Calculations; Minimum Adjustment</u>. Any provision of this Article ‎7 to the contrary notwithstanding, no adjustment in the Conversion Price shall be made if the amount of such adjustment would be less than $0.01, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any such subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or more.

(g) <u>Adjustments Cumulative</u>. Each of the adjustments pursuant to this Article ‎7 shall be applied individually and cumulatively upon the occurrence of any of the events specified therein, and shall apply from and after the date of these Articles to the registered Preferred Shares.

(h) <u>Impairment</u>. Subject to the Company's power and authority to amend the Articles, restructure its capital, merge or enter into sales of assets transactions, the Company will not, by amendment of these Articles or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Article ‎7 by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Article ‎7 and in taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the holders of the Preferred Shares against impairment.

7.6. <u>Reservation of Shares Issuable</u>. The Company shall at all times reserve and keep available out of its registered but unissued Ordinary Shares, solely for the purpose of effecting the conversion of the Preferred Shares, such number of Ordinary Shares as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Shares; and if at any time the number of registered but unissued Ordinary Shares shall not be sufficient to effect the conversion of all then outstanding Preferred Shares, the Company shall take such corporate action as may, in the opinion of its counsel, be necessary to increase its registered but unissued Ordinary Shares, to such number of shares as shall be sufficient for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.  **<u>Increase of Share Capital</u>** 

8.1. The Company may, from time to time, by a resolution of the General Meeting adopted by an Ordinary Majority, whether or not all the shares then registered and registered have been issued, and whether or not all the shares theretofore issued have been called up for payment, increase its authorized share capital by the creation of new shares. Any such increase shall be in such amount and shall be divided into shares of such nominal amounts, and such shares shall confer such rights and preferences, and shall be subject to such restrictions, as such resolution of the General Meeting shall provide.

8.2. Except to the extent otherwise provided in such resolution of the General Meeting, such new shares shall be subject to all the provisions applicable to the shares of the original capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.  **<u>Special Rights; Modifications of Rights</u>** 

9.1. Without prejudice to any special rights previously conferred upon the holders of existing shares in the Company, the Company may, from time to time, by a resolution of the General Meeting adopted by an Ordinary Majority, provide for shares with such preferred or deferred rights or rights of redemption or other special rights and/or such restrictions, whether with respect to liquidation, dividends, voting, conversion, repayment of share capital or otherwise, as may be stipulated in such resolution.

9.2. <u>Modification of Rights</u>

(a) If at any time the share capital is divided into different classes of shares, the rights attached to any class may be modified or abrogated by the Company by a resolution of the General Meeting adopted by an Ordinary Majority, except as otherwise set forth in this Article ‎9.2.

(b) Any modification that would directly adversely alter the rights attached to any class, without correspondingly adversely altering the rights attached to all other classes, shall require the consent in writing or a resolution of an Ordinary Majority. Any modification to the provisions of Article 1.6, the definitions of "Permitted Transferee" and "Eligible Shareholder" (as they relate to the Founder and Mashav-Barath), the provisions of this Article 9.2(b), and the right of the Founder to appoint a director - shall require the consent in writing of the Founder or Mashav-Barath as applicable (in addition to any other corporate approval required by law or by these Articles).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.  **<u>Consolidation, Subdivision, Cancellation, Increase and Reduction of Share Capital</u>** 

10.1. The Company may, from time to time, by a resolution of the General Meeting adopted by an Ordinary Majority (*<u>subject</u>*, *<u>however</u>*, to the provisions of Article ‎9.2 and to the Companies Law):

(a) Consolidate and divide all or any of its issued or unissued share capital into shares of larger nominal value than its existing shares;

(b) Subdivide its shares (issued or unissued) or any of them, into shares of smaller nominal value than is fixed by these Articles (subject to the provisions of the Companies Law), and the resolution whereby any share is subdivided may determine that, as among the holders of the shares resulting from such subdivision, one or more of the shares may, as compared with the others, have any such preferred or deferred rights or rights of redemption or other special rights, or be subject to any such restrictions, as the Company has power to attach to unissued or new shares.

(c) Cancel any shares which, at the date of the adoption of such resolution of the General Meeting, have not been allotted, so long as the Company is not under an obligation to allot these shares, and diminish the amount of its share capital by the amount of the shares so cancelled.

(d) Reduce its share capital in any manner, and with and subject to any incident authorized, and consent required, by Law.

(e) Increase its share capital, regardless of whether or not all of its shares have been issued, or whether the shares issued have been paid in full, by the creation of new shares, divided into shares in such par value, and with such preferred or deferred or other special rights (subject always to the provisions of these Articles), and subject to any conditions and restrictions with respect to Dividends, return of capital, voting or otherwise, as shall be directed by the resolution; or

(f) Convert part of its issued and paid-up shares into deferred shares with the consent of the holders of such shares.

10.2. With respect to any consolidation of issued shares into shares of larger nominal value, and with respect to any other action which may result in fractional shares, including upon conversion of the Preferred Shares, the Board may settle any difficulty which may arise with regard thereto, as it deems appropriate, including resort to one or more of the following actions:

(a) Determine, as to the holder of shares so consolidated, which issued shares shall be consolidated into each share of larger nominal value;

(b) Allot, in contemplation of or subsequent to such consolidation or other action, such shares or fractional shares sufficient to preclude or remove fractional share holdings;

(c) Redeem, in the case of redeemable shares, and subject to applicable Law, such shares or fractional shares sufficient to preclude or remove fractional share holdings;

(d) Cause the transfer of fractional shares by certain Shareholders to other Shareholders thereof so as to most expediently preclude or remove any fractional shareholdings, and cause the transferees to pay the transferors the fair value of fractional shares so transferred, and the Board is hereby authorized to act as agent for the transferors and transferees with power of substitution for purposes of implementing the provisions of this Article ‎10.2, without regard to any restriction or limitation that may apply to the transfer of such shares, as may be provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.  **<u>Issuance of Share Certificates; Replacement of Lost Certificates; Bearer Certificates</u>** 

11.1. The Company shall maintain a Shareholder Register, to be administered by the corporate secretary of the Company, subject to the oversight of the Board.

11.2. Share certificates shall bear the signatures of one Director and the corporate secretary, or of two Directors, or of any other person or persons authorized thereto by the Board; *<u>provided</u>*, *<u>however</u>*, that in the event the Board consists of one Director, the share certificate shall bear the signature of such Director or of any other person or persons authorized thereto by the Board. Every certificate shall bear the Company's printed name or its seal or stamp, if existent pursuant to Article ‎97.2.

11.3. Each Shareholder shall be entitled to one numbered certificate for all the shares of any class registered in his name, and if the Board, or the persons authorized to sign such Shareholder's certificates (as aforesaid in Article ‎11.2), so approve, to several certificates, each for one or more of such shares. Each certificate may specify the serial numbers of the shares represented thereby and may also specify the amount paid up thereon.

11.4. A share certificate registered in the names of two or more persons shall be delivered to the person first named in the Shareholder Register in respect of such co-ownership.

11.5. If a share certificate is defaced, lost or destroyed, it may be replaced, upon payment of such fee, and upon the furnishing of such evidence of ownership and such indemnity, as the Board may deem appropriate.

11.6. The Company shall not issue bearer share certificates which grant the bearer rights in the shares specified therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.  **<u>Registered Holder</u>** 

Except as otherwise provided in these Articles, the Company shall be entitled to treat the registered holder of any share as the absolute owner thereof, and, shall be entitled to treat the holder of any share in trust as a Shareholder and to issue to him a share certificate, provided that the trustee notify the Company of the identity of the beneficiary, and, accordingly, the Company shall not, except as ordered by a court of competent jurisdiction, or as required by Law, be bound to recognize any equitable or other claim to, or interest in, such share on the part of any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.  **<u>Issuance of Shares and other Securities</u>** 

13.1. The Board may issue shares and other Securities of the Company, up to the limit of the Company's registered share capital. If the Company's registered share capital includes a number of classes of shares and Securities, shares and Securities exceeding the limit of the registered share capital of such class shall not be issued. In such regard, Securities convertible or exercisable into shares shall be deemed to have been converted or exercised on the date of their issue.

13.2. The issuance of shares and other Securities, in accordance with Article ‎13.1, from time to time, shall be under the control of the Board, who shall have the power to allot shares and other Securities or otherwise dispose of them to such persons, on such terms and conditions (including terms relating to calls as set forth in Article ‎16 hereof), and either at par or at a premium, or, subject to the provisions of the Companies Law, at a discount, and at such times, as the Board may deem appropriate, and the power to give to any person the option to acquire from the Company any shares, either at par or at a premium, or, subject as aforesaid, at a discount, during such time and for such consideration as the Board may deem appropriate.

13.3. The Board has the sole authority to issue a series of bonds or other debt Securities, as part of its authority to take a loan on behalf of the Company, and within the limits of such authority.

13.4. Subject to applicable Law, the Company is entitled to pay a commission, including underwriting fees, to any person, as determined by the Board. Payments, as stated in this Article ‎13.4, may be paid in cash or in Securities of the Company, or in a combination thereof.

13.5. The Company shall not issue a share, all or part of the consideration of which is not to be paid in cash, unless the consideration for the share was specified in a written document and approved by the Board, subject however to the provisions of Article ‎13.6.

13.6. <u>Delegation of Power to Issue Securities</u>. The Board may delegate any power to issue or allot Securities as follows:

(a) to a Committee of the Board (as defined in Article ‎66 below) – in an issuance of Securities within the framework of an equity compensation plan for employees ("**ESOP**"), employment agreements or salary agreements between the Company and its employees, or such agreements between the Company and employees of an affiliated company (if approved by the board of directors of the affiliated Company). The power delegated to such committee to issue any such Securities shall be subject to the ESOP.

(b) to a Committee of the Board, the General Manager or another person recommended by the General Manager – in the case of issuance of shares of the Company due to exercise or conversion of any Securities.

This Article ‎13.6 shall not derogate from, and be in addition to, the provisions of this Article ‎13 or of Article ‎66 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.  **<u>Preemptive Rights on Company Share Issuance</u>** 

Until the closing of an IPO, each Eligible Shareholder shall have the right to purchase its Pro Rata Share of New Securities (each as defined in Article ‎14.1(a) below) that the Company may, from time to time, propose to sell and issue, in accordance with the terms and conditions of this Article ‎14.

14.1. <u>Definitions</u>

(a) The "**Pro Rata Share**" of any Eligible Shareholder, for purposes of this Article ‎14 and for purposes of Article ‎23 hereof, is the quotient of (x) the number of Ordinary Shares owned by such Shareholder (on an as-converted basis) immediately prior to the issuance of New Securities, divided by (y) the total number of Ordinary Shares of the Company (on an as-converted basis) immediately prior to the issuance of New Securities.

(b) The term "**New Securities**" shall mean any Securities except for the following (such excluded securities to be referred to as "**Excluded Securities**"):

(i) Ordinary Shares issued or granted pursuant to employee stock option plans approved by the Board, or otherwise pursuant to resolutions of the Board

(ii) Ordinary Shares issuable upon conversion of the Preferred Shares;

(iii) Securities offered to the public in an IPO;

(iv) Securities issued in connection with any share split or share dividend by the Company;

(v) To the extent so approved by the Board, any Securities issued to a bank or other financing institutions in connection with credit lines and loans granted to the Company;

(vi) To the extent so approved by the Board, any Securities issued to a person designated by the Board as a strategic investor, strategic alliances or partners or customers, provided that such issuances in the aggregate (for each such strategic investor) do not exceed 2% of the Company shares on as converted fully-diluted basis;

(vii) Securities issued in connection with the exercise of warrants or options, or due to the conversion of convertible securities or debt, *<u>provided</u>* that said warrants, options or convertible securities or debt were (a) in existence at or prior to the Effective Date of these Articles or (b) originally issued as New Securities after taking all actions required under this Article ‎14; and

(viii) Securities issued to Mashav-Barath or the Founder pursuant to the terms of the Management Agreement.

(ix) Issuances with respect to which the Ordinary Majority has resolved that such issuances shall be an issuance of an Excluded Security.

14.2. <u>Manner of Notice and Acceptance</u>

(a) In the event that the Company proposes to undertake an issuance of New Securities, it shall give each Eligible Shareholder written notice of its intention, describing the type of New Securities, the price, and the general terms upon which the Company proposes to issue the same.

(b) Each Eligible Shareholder shall have 20 days after receipt of such notice to agree to purchase up to its Pro Rata Share of such New Securities at the price and upon the terms specified in the notice by giving written notice to the Company and stating therein the quantity of New Securities to be purchased. Failure to timely respond to the Company notice shall be deemed as a decision not to purchase any of the New Securities.

14.3. <u>Sale of Securities Unsubscribed</u>

(a) If the Eligible Shareholders who elect to purchase their full Pro-Rata Share also elect to purchase more than such Pro Rata Share of the New Securities, the New Securities remaining after satisfaction of the aforesaid full Pro-Rata Share shall be issued to such shareholders in accordance with their pro-rata portions amongst the shares then held by such Eligible Shareholders.

(b) In the event that by the end of the 20 days period specified above, not all of the New Securities have been subscribed for by Eligible Shareholders, the Company shall have 90 days thereafter to sell (or enter into an agreement pursuant to which the sale of New Securities covered thereby shall be sold, if at all, within 45 days from the date of said agreement) all or part of the remaining New Securities in respect of which the rights of the Eligible Shareholders were not exercised, at a price not lower and upon terms no more favorable to the purchasers thereof than specified in the Company's notice.

(c) In the event the Company has not sold the New Securities within such 90 day period (or sold and issued New Securities in accordance with the foregoing within 45 days from the date of such agreement) the Company shall not thereafter issue or sell any New Securities, without first offering such New Securities to the Eligible Shareholders and in the manner provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.  **<u>Payment in Installments</u>** 

If by the terms of issuance of any share, the whole or any part of the price thereof shall be payable in installments, every such installment shall, when due, be paid to the Company by the then-registered holder(s) of the share or the person(s) entitled thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.  **<u>Calls on Shares</u>** 

16.1. The Board may, from time to time, make such calls as it may deem appropriate upon Shareholders in respect of any sum unpaid in respect of shares held by such Shareholders which is not, by the terms of allotment thereof or otherwise, payable at a fixed time, and each Shareholder shall pay the amount of every call so made upon him (and of each installment thereof if the same is payable in installments), to the person(s) and at the time(s) and place(s) designated by the Board, as any such time(s) may be thereafter extended and/or such person(s) or place(s) changed. Unless otherwise stipulated in the resolution of the Board (and in the notice referred to in Article ‎16.2), each payment in response to a call shall be deemed to constitute a pro rata payment on account of all shares in respect of which such call was made.

16.2. Notice of any call shall be given in writing to the applicable Shareholder(s) not less than 14 days prior to the time of payment, specifying the time and place of payment, and designating the person to whom and the place where such payment shall be made; provided, however, that before the time for any such payment, the Board may, by notice in writing to such Shareholder(s), revoke such call in whole or in part, extend such time, or alter such designated person and/or place. In the event of a call payable in installments, only one notice thereof needs be given.

16.3. If, by the terms of allotment of any share or otherwise, any amount is made payable at any fixed time, every such amount shall be payable at such time as if it were a call duly made by the Board and of which due notice had been given, and all the provisions herein contained with respect to calls shall apply to each such amount.

16.4. The joint holders of a share shall be jointly and severally liable to pay all calls in respect thereof and all interest payable thereon.

16.5. Any amount unpaid in respect of a call shall bear interest from the date on which it is payable until actual payment thereof, at such rate (not exceeding the then prevailing debitory rate charged by leading commercial banks in Israel), and at such time(s) as the Board may prescribe.

16.6. A Shareholder shall not be entitled to his rights as shareholder, including Dividend, unless he has paid all the amounts detailed in the calls made on him, together with interest and expenses, if any, unless otherwise prescribed by the Board.

16.7. Upon the allotment of shares, the Board may provide for differences among the allottees of such shares as to the amount of calls and/or the times of payment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.  **<u>Prepayment</u>** 

With the approval of the Board, any Shareholder may prepay to the Company any amount not yet payable in respect of his shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.  **<u>Forfeiture and Surrender</u>** 

18.1. If any Shareholder fails to pay any amount payable in respect of a call, or interest thereon as provided herein, on or before the day fixed for payment of the same, the Company, by resolution of the Board, may at any time thereafter, so long as such amount or interest remains unpaid, determine that such Shareholder shall forfeit all or any of the shares in respect of which such call had been made. Any expense incurred by the Company in attempting to collect any such amount or interest, including attorneys' fees and costs of suit, shall be added to, and shall, for all purposes (including the accrual of interest thereon), constitute a part of the amount payable to the Company in respect of such call.

18.2. Upon the adoption of a resolution of forfeiture, the Board shall cause notice thereof to be given to the Shareholder whose shares are the subject of such forfeiture, which notice shall state that, in the event of the failure to pay the entire amount so payable within a period stipulated in the notice (which period shall not be less than fourteen (14) days and which may be extended by the Board), such shares shall be *ipso facto* forfeited, provided, however, that, prior to the expiration of such period, the Board may nullify such resolution of forfeiture, but no such nullification shall estop the Board from adopting a further resolution of forfeiture in respect of the non-payment of such amount.

18.3. Whenever shares are forfeited as herein provided, all distributions theretofore declared in respect thereof and not actually paid or distributed shall be deemed to have been forfeited at the same time.

18.4. The Company, by resolution of the Board, may accept the voluntary surrender of any share.

18.5. Any share forfeited or surrendered as provided herein shall become the property of the Company, and the same, subject to the provisions of these Articles, may be sold, re-allotted or otherwise disposed of as the Board deems appropriate. Any such share shall become a dormant share, and shall not confer any rights, so long as it is held by the Company.

18.6. Any Shareholder whose shares have been forfeited or surrendered shall cease to be a Shareholder in respect of the forfeited or surrendered shares, but shall, notwithstanding, be liable to pay, and shall forthwith pay, to the Company, all calls, interest and expenses owing upon or in respect of such shares at the time of forfeiture or surrender, together with interest thereon from the time of forfeiture or surrender until actual payment, at the rate prescribed in Article ‎16.5 above, and the Board, in its discretion, may enforce the payment of such moneys, or any part thereof, but shall not be under any obligation to do so. In the event of such forfeiture or surrender, the Company, by resolution of the Board, may accelerate the date(s) of payment of any or all amounts then owing by the Shareholder in question (but not yet due) in respect of all shares owned by such Shareholder, solely or jointly with another, and in respect of any other matter or transaction whatsoever.

18.7. The Board may at any time, before any share so forfeited or surrendered shall have been sold, re-allotted or otherwise disposed of, nullify the forfeiture or surrender on such conditions as it deems appropriate, but no such nullification shall estop the Board from re-exercising its powers of forfeiture pursuant to this Article ‎18.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.  **<u>Lien</u>** 

19.1. Except to the extent the same may be waived or subordinated in writing, the Company shall have a first and paramount lien upon all the shares registered in the name of each Shareholder which are not fully paid up (without regard to any equitable or other claim or interest in such shares on the part of any other person), and upon the proceeds of the sale thereof, for his debts, liabilities and engagements arising from any cause whatsoever, solely or jointly with another, to or with the Company, whether the period for the payment, fulfillment or discharge thereof shall have actually arrived or not. Such lien shall extend to all distributions from time to time declared in respect of such shares. Unless otherwise provided, the registration by the Company of a transfer of shares shall be deemed to be a waiver on the part of the Company of any lien existing on such shares immediately prior to such transfer.

19.2. The Board may cause the Company to sell any shares subject to such lien when any such debt, liability or engagement has matured, in such manner as the Board may deem appropriate, but no such sale shall be made unless such debt, liability or engagement has not been satisfied within fourteen (14) days after written notice of the Company's intention to sell shall have been served on such Shareholder, his executors or administrators.

19.3. The net proceeds of any such sale, after payment of the costs thereof, shall be applied in or toward satisfaction of the debts, liabilities or engagements of such Shareholder (whether or not the same have matured), or any specific part of the same (as the Board may determine), and the balance, if any, shall be paid to the Shareholder, his executors, administrators or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.  **<u>Sale after Forfeiture or Surrender or in Enforcement of Lien</u>** 

Upon any sale of shares after forfeiture or surrender or for enforcing a lien, the Board may appoint a person to execute an instrument of transfer of the shares so sold and cause the purchaser's name to be entered in the Shareholder Register in respect of such shares, and the purchaser shall not be bound to see to the regularity of the proceedings, or to the application of the purchase money, and after his name has been entered in the Shareholder Register in respect of such shares, the validity of the sale shall not be impeached by any person, and the remedy of any person aggrieved by the sale shall be in damages only and against the Company exclusively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.  **<u>Redeemable Securities</u>** 

The Board may, subject to applicable Law, issue redeemable Securities, with such rights and on such conditions as the Board prescribes, and redeem the same.

**<u>TRANSFER OF SHARES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **Transfer of Shares Generally** 

22.1. No sale, assignment, conveyance, pledge, grant of any security interest or gift, or any other disposition or transfer (collectively "**Transfer**" or "**transfer**") of any share of the Company shall be effective unless such Transfer is effected in compliance with the provisions of Articles ‎22, ‎23 and ‎24, *<u>provided</u>*<u>, *however*</u>, that any transfer of shares (other than Permitted Transfer (as defined below)) shall require the approval of the Board, which approval shall not be unreasonably withheld, *<u>provided</u>* that the Board of shall be entitled to reject a transfer as further set forth in this Article 22.

22.2. The Board may refuse to register a Transfer of shares, *inter alia*, in the event that such a Transfer is to a competitor of the Company, as determined by the Board, or in the event that such a Transfer would result in the Company having more than 50 shareholders. The Board shall refuse to register a Transfer of shares in the event that such a Transfer is in violation of these Articles and/or if the transferee does not agree in writing, prior to such Transfer, to assume and be bound by all obligations of the transferor relating to the Company's share capital under any instrument and agreement involving the transferor and the Company.

22.3. No Transfer of shares shall be registered unless the Company receives a deed of transfer or other proper instrument of transfer (in form and substance satisfactory to the Board or the corporate secretary of the Company), together with the share certificate(s) and such other evidence of title as the Board or the corporate secretary of the Company may reasonably require. Until the transferee has been registered in the Shareholder Register in respect of the shares so transferred, the Company may continue to regard the transferor as the owner thereof. The Board may, from time to time, prescribe a fee for the registration of a Transfer. A deed of transfer shall be in the following form or in any substantially similar form, including any such form as is acceptable to the transfer agent for the Company's shares, or in any form otherwise approved by the Board or the corporate secretary of the Company.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Deed of Transfer</u>**<br>I, _________, (hereinafter: the "**Transferor**") of ________________, do hereby transfer, in consideration for ____________, to ______________ (hereinafter: the "**Transferee**"), ______________share(s) no par value each of Silentium Ltd. (hereinafter: the "**Company**"), share certificate(s) no. _______________, to be held by the Transferee and/or his executors, administrators and assigns, subject to the same terms and conditions under which I held the same at the time of execution hereof; and the Transferee, do hereby agree to take the said share(s) subject to the conditions aforesaid.<br>In witness whereof we hereby execute this Deed of Transfer, this ___day of ______, 20__. | &nbsp;&nbsp;**<u>Deed of Transfer</u>**<br>I, _________, (hereinafter: the "**Transferor**") of ________________, do hereby transfer, in consideration for ____________, to ______________ (hereinafter: the "**Transferee**"), ______________share(s) no par value each of Silentium Ltd. (hereinafter: the "**Company**"), share certificate(s) no. _______________, to be held by the Transferee and/or his executors, administrators and assigns, subject to the same terms and conditions under which I held the same at the time of execution hereof; and the Transferee, do hereby agree to take the said share(s) subject to the conditions aforesaid.<br>In witness whereof we hereby execute this Deed of Transfer, this ___day of ______, 20__. |
| &nbsp;&nbsp;The Transferor | &nbsp;&nbsp;The Transferee |
| &nbsp;&nbsp;Name:<u> </u> | &nbsp;&nbsp;Name:<u> </u> |
| &nbsp;&nbsp;Signature:<u> </u> | &nbsp;&nbsp;Signature:<u> </u> |

---

22.4. Upon the death of a Shareholder, the Company shall recognize the custodian or administrator of the estate or executor of the will, and in the absence of such, the lawful heirs of the Shareholder, as the only holders of the right for the shares of the deceased Shareholder, after receipt of evidence to the entitlement thereto, as determined by the Board.

22.5. The Company may recognize the receiver or liquidator of any corporate Shareholder in liquidation or dissolution, or the receiver or trustee in bankruptcy of any Shareholder, as being entitled to the shares registered in the name of such Shareholder, after receipt of evidence to the entitlement thereto, as determined by the Board.

22.6. A person acquiring a right in shares as a result of being a custodian, administrator of the estate, executor of a will or the heir of a Shareholder, or a receiver, liquidator or a trustee in a bankruptcy of a Shareholder or according to another provision of Law, is entitled, after providing evidence of his right to the satisfaction of the Board, to be registered as the Shareholder or to transfer such shares to another person, subject to the provisions of this Article ‎22.

22.7. The Board may suspend the registration of Transfers during the thirty (30) days immediately preceding the Annual Meeting, as defined below.

22.8. Unless otherwise provided elsewhere, the provisions of this Article ‎22 shall also apply to other Securities issued by the Company, *mutatis mutandis*.

22.9. Subject to any terms and conditions contained in these Articles and any ancillary agreement with respect to the transferred securities, the term "**Permitted Transfer**" shall mean a transfer to a Permitted Transferee; *<u>provided</u>* that a transfer of any share pursuant to this <u>Article ‎22.9</u> shall only be treated as a Permitted Transfer if (i) the transferee agrees in writing to be bound by the terms and conditions of these Articles and any ancillary agreement with respect to the transferred securities, and (ii) such a transferee is not deemed by the Board in good faith as a party whose business is competitive with the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.  **<u>Rights of First Refusal</u>** 

23.1. Manner of Notice and Acceptance

(a) Until the closing of an IPO, any Shareholder proposing to transfer all or any of his shares in the Company other than to a Permitted Transferee or in an M&A Transaction (the "**Offeror**") shall first offer such shares (the "**Offered Shares**"), at the price and on the terms of the proposed transfer, including the identity of the proposed transferee (if known), by written notice to each Eligible Shareholder (the "**Offerees**") with a copy to the Company. The notice shall include the requested price and terms of sale of the Offered Shares (the "**Offer**").

(b) Any Offeree may accept such offer in respect of all or any of the Offered Shares by giving the Offeror (with a copy to the Company) notice to that effect within 14 days after receiving the Offer. Failure to timely accept the Offered Shares, in whole or in part, shall be deemed as a decision not to purchase any of the Offered Shares.

23.2. Result of Acceptances

(a) If the acceptances, in the aggregate, are in respect of all of, or more than, the Offered Shares, then the accepting Offerees shall be entitled to acquire all, but no less than all of the Offered Shares, on the terms aforementioned, allocated among them in proportion to their respective Pro Rata Shares or as otherwise requested by and agreed to by the accepting Offerees, *<u>provided</u>* that no Offeree shall be obligated to acquire under the provisions of this Article 23 more than the number of Offered Shares accepted by such Offeree. Any shares remaining after the computation of such respective entitlements shall be re-allocated among the accepting Offerees (other than those to be disregarded as aforesaid), in the same manner, until all of the Offered Shares have been allocated as aforesaid.

(b) If the acceptances by Offerees, in the aggregate, are in respect of less than all of the Offered Shares or if no acceptance by Offerees were received, then the Offeror, at the expiration of the aforementioned 14-day period, shall transfer to the Offerees the Offered Shares that they elected to purchase and shall be entitled, subject to compliance with the provisions of Articles ‎22, ‎23 and ‎24, to transfer the remaining Offered Shares at a price not lower and on terms no more favorable to the buyer(s) than those stated in the Offer, and *<u>provided further</u>* that if the Offered Shares are not transferred within 120 days after the expiration of such 14 day period, any subsequent sale shall again be subject to the provisions of this Article ‎23.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.  **<u>Reserved</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.  **<u>Bring Along</u>** 

25.1. Notwithstanding any other term or provision set forth in these Articles, and notwithstanding Section 341 to the Companies Law, until the closing of an IPO, if the holders of more than a majority of the Company's issued and outstanding shares (on an as converted basis) held by shareholders (the "**Bring-Along Sellers**"), in one transaction or in a series of related transactions (a "**Bring-Along Transaction**"), determine to sell all of the shares held by them to any person or entity (a "**Bring-Along Sale**" and the "**Bring-Along Purchaser**", respectively), and in the event the Bring-Along Sale is conditional upon the sale of all of the remaining shares of the Company, then the Bring-Along Sellers shall have the right to require each of the remaining holders of shares (the "**Bring-Along Shareholders**") to include in such Bring-Along Sale all share**s** of any class or series held by such Bring-Along Shareholder in such Bring-Along Sale. Any such sales of share capital, or participation in such sale of the Company, by the Bring-Along Shareholders shall be on the same terms and conditions, *mutatis mutandis*, as the proposed Bring-Along Sale by the Bring-Along Sellers, allowing for the payment of premiums on account of Preferred Shares, based on the liquidation preferences and priorities as are set forth in Article ‎93 below; *<u>provided, however</u>*, that a Bring-Along Shareholder will not be required to comply with this Article 25 in connection with any Bring-Along Transaction, unless the terms of such a Bring-Along Transaction provide that: (i) each holder of a series of Preferred Share will receive the same amount of consideration per share of such series of Preferred Share as is received by other holders in respect of their shares of such same series, (ii) any representations and warranties to be made by such Bring-Along Shareholder in connection with the Bring-Along Transaction are limited to representations and warranties related solely to (a) authority, ownership and the ability to convey title to such Bring-Along Shareholder's shares free and clear of all liens and third party rights (b) the obligations of the shareholder in connection with the transaction have been duly authorized, if applicable; (c) the documents to be entered into by the shareholder have been duly executed by the shareholder and delivered to the purchaser and are enforceable against the shareholder in accordance with their respective terms; and (d) neither the execution and delivery of documents to be entered into by the shareholder in connection with the transaction, nor the performance of the shareholder's obligations thereunder, will cause a breach or violation of the terms of any agreement to which the shareholder is a party, or any law or judgment, order or decree of any court or governmental agency that applies to the shareholder; (iii) the Bring-Along Shareholder will not be liable for the inaccuracy of any representation or warranty made by any other person in connection with the Bring-Along Transaction, other than the Company, (iv) other than in connection with fraud or willful misconduct of a Bring-Along Shareholder, the liability for indemnification of a Bring-Along Shareholder shall be limited to a negotiated aggregate indemnification amount that applies equally to all shareholders, and in any event does not exceed the amount of consideration paid to such Bring-Along Shareholder in connection with such Bring-Along Transaction, and (v) the liability for indemnification, if any, of such Bring-Along Shareholder for the inaccuracy of any representations and warranties made by the Company in connection with such Bring-Along Transaction, is several and not joint with any other person, and is pro rata in proportion to such Bring-Along Shareholder's applicable share of a negotiated aggregate indemnification amount that applies equally to all shareholders. In addition, if any holders of any share of the Company are given an option as to the form and amount of consideration to be received as a result of the Bring-Along Transaction, all holders of such shares will be given the same option.

25.2. The Bring-Along Sellers participating in a proposed Bring-Along Sale shall promptly (and i*n no event later* than thirty (30) calendar days prior to the proposed consummation thereof) provide each Bring-Along Shareholder with written notice of any such sale, and such notice shall set forth: (i) the name and address of the proposed Bring-Along Purchaser of the shares included in the Bring-Along Sale; (ii) the proposed amount and form of consideration to be paid for such shares or to be paid in such sale and the terms and conditions of payment offered by the proposed Bring-Along Purchaser; (iii) the date for the delivery of and payment for the shares, which delivery shall take place not fewer than ten (10) days after delivery of such notice. At the date so specified, each Bring-Along Shareholder (or the legal representative of such Bring-Along Shareholder) shall deliver certificates for such shares accompanied by written instruments of transfer duly executed by such Bring-Along Shareholder (or the legal representative of such Bring-Along Shareholder), free and clear of any liens, charges, claims, rights or encumbrances whatsoever.

25.3. If a Bring-Along Shareholder is obligated to sell his, her or its shares, and such Bring-Along Shareholder fails to deliver the certificates representing such shares in accordance with the terms of this Article ‎25, the Company shall register on its share transfer records the certificate or certificates representing such shares required to be sold pursuant to this Article ‎25 as transferred in the name of the Bring-Along Purchaser and such share certificates in the possession of the Bring-Along Shareholder (or the legal representative of such Bring-Along Shareholder) shall become null and void, and any consideration to be paid to such Bring-Along Shareholder in a transaction pursuant to this Article ‎25 shall be held in escrow by a trustee designated by the Company until such Bring-Along Shareholder delivers the certificates.

25.4. In the event the consideration to be paid in exchange for Ordinary Shares in a transaction pursuant to this Article ‎25 includes any securities, and the receipt thereof by a shareholder would require under applicable Law the provision to any Bring-Along Shareholder of any information other than such information as would be required in an offering made pursuant to Regulation D under the United States Securities Act of 1933, as amended, solely to "accredited investors" as defined in Regulation D, the Bring-Along Sellers may require that such Bring-Along Shareholders accept, in lieu of securities, an amount in cash equal to the "fair market value" of such securities, as of the date of issuance of such securities, as determined by the Board.

25.5. Each Bring-Along Shareholder, whether in his, her or its capacity as a shareholder, officer or director of the Company, or otherwise, shall take or cause to be taken all such actions as may be necessary or reasonably desirable in order to expeditiously consummate each transaction pursuant to this Article ‎25 and any related transactions, including, without limitation, executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; furnishing information and copies of documents; filing applications, reports, returns, filings and other documents or instruments with governmental authorities; voting his, her or its shares, by written consent or otherwise, with respect to such shares which such Bring-Along Shareholder is entitled to vote at any meeting of security holders of the Company (whether ordinary or extraordinary and whether or not an adjourned or postponed meeting) or consent in lieu of any such meeting or otherwise, in favour of the consummation of such transaction and any related transactions; and otherwise cooperating with the Bring-Along Sellers and the prospective buyer. Without limiting the generality of the foregoing, each Bring-Along Shareholder agrees to execute and deliver such agreements as may be reasonably specified by the Bring-Along Sellers to which such Bring-Along Sellers will also be a party.

25.6. The majority requirements and the procedures set forth in this Article 25 shall apply in lieu of those set forth in Section 341 of the Companies Law. The provisions of this Article 25 are in addition to (but may not be acted upon simultaneously with) the provisions of Section 341 of the Companies Law and not in substitution of such provisions, and the Bring-Along Sellers' at their sole discretion may elect whether to act upon the provisions of this Article 25 or of Section 341 of the Companies Law, to the extent permissible by law.

**<u>GENERAL MEETINGS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.  **<u>The Authority of the General Meeting</u>** 

26.1. The following matters shall require the approval of the General Meeting:

(a) Amendment of the Articles.

(b) The exercise by the General Meeting of the authority of the Board, subject to the provisions of the Companies Law, if it is resolved by the General Meeting that the Board is incapable of exercising its authority, and that the exercise of such authority is essential to the orderly management of the Company.

(c) The appointment or reappointment of the Company's Auditor, and the termination or non-renewal of his service.

(d) To the extent required by the provisions of the Companies Law, the approval of actions and transactions with interested parties and the approval of an action or a transaction of an Office Holder which might otherwise constitute a breach of the duty of loyalty.

(e) Changes in the share capital of the Company, as set forth in Articles ‎8 and ‎9.

(f) A merger of the Company, as defined in the Companies Law.

(g) A liquidation of the Company.

(h) Any other matters which the Companies Law requires to be dealt with at the General Meeting of the Company, or any matters that were given to the General Meeting in these Articles.

26.2. The General Meeting shall not transfer to another organ of the Company any of its authorities detailed in Article ‎26.1 above.

26.3. The General Meeting, by a resolution adopted by eighty percent 80% of the issued and outstanding shares, on an as-converted basis, may assume the authority which is given to another organ of the Company in the event such organ fails to appropriately exercise such authority; *<u>provided</u>*, *<u>however</u>*, that such taking of authorities shall be with regard to a specific issue or for a specific period of time, all as stated in the resolution of the General Meeting regarding such taking of authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.  **<u>Annual Meeting</u>** 

27.1. An annual General Meeting may be held by the Company, and, at the request of any Shareholder or Director, shall be held, once in every calendar year at such time within a period of not more than fifteen (15) months after the last preceding annual General Meeting and at such place either within or without the State of Israel as may be determined by the Board. These General Meetings shall be referred to as "**Annual Meetings**." Notwithstanding the above, the Company may, by a resolution adopted at a general meeting, determine that it shall not be obliged to hold an Annual Meeting, except as may be required for the appointment of an auditor.

27.2. In the event an Annual Meeting was not held by the Company, the Company shall send to each Shareholder of the Company registered in the Shareholder Register, prior to the date on which the Annual Meeting would have been held and not more than once in every fiscal year, the financial statements of the Company.

27.3. The agenda of an Annual Meeting shall include the following issues:

(a) The financial statements of the Company, as of the end of the fiscal year preceding the year of the Annual Meeting, and the report of the Board with respect thereto.

(b) The report of the Board with respect to the fee paid to the Company's Auditor.

27.4. The agenda at an Annual Meeting may include the following issues, in addition to those referred to in Article ‎27.3:

(a) The appointment of an Auditor or the renewal of his office.

(b) Any other issue which was detailed in the agenda for the Annual Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.  **<u>Special Meetings</u>** 

28.1. All General Meetings other than Annual Meetings shall be referred to as "**Special Meetings**." A Special Meeting shall discuss and decide in all matters for which the Special Meeting was convened.

28.2. The Board may, whenever it deems appropriate, convene a Special Meeting at such time and place, within or without the State of Israel, as may be determined by the Board, and shall be obliged to do so upon the demand of one of the following:

(a) Any Director; or

(b) Any one or more Shareholders, holding alone or together at least ten percent (10%) of the issued share capital of the Company and at least one percent (1%) of the voting rights in the Company or one or more Shareholders holding at least ten percent (10%) of the voting rights in the Company.

28.3. The Board, upon demand to convene a Special Meeting in accordance with Article ‎28.2 above, shall provide notice for the convening of the General Meeting within twenty one (21) days from the receipt of a demand in that respect.

28.4. If the Board does not convene a Special Meeting as aforesaid, the person requisitioning the meeting, and where Shareholders are involved - also some of them, who have more than half the voting rights in the Company, may convene the meeting themselves, provided that it is not held more than three months after the date the requisition was made, and it shall be convened, insofar as possible, in the same way in which meetings are convened by the Board. Where a general meeting is convened as aforesaid, the Company shall cover the reasonable expenses incurred by the person requisitioning it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.  **<u>Class Meetings</u>** 

The provisions of these Articles with respect to General Meetings shall apply, *mutatis mutandis*, to meetings of the holders of a class of shares of the Company ("**Class Meetings**"), subject to Article ‎40.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.  **<u>Notice of General Meetings</u>** 

30.1. Advance Notice

(a) Unless a shorter period is permitted by Law, a notice of a General Meeting shall be sent to each Shareholder of the Company registered in the Shareholder Register and entitled to attend and vote at such meeting, at least 7 days prior to the date fixed for the General Meeting; *<u>provided</u>*, *<u>however</u>*, that such notice shall not be sent more than 45 days before the date fixed for the General Meeting.

(b) Anything herein to the contrary notwithstanding, with the written consent of all Shareholders entitled to vote thereon, a resolution may be proposed and passed at such meeting although a shorter notice than hereinabove prescribed has been given. A waiver by a Shareholder can also be made in writing after the fact and even after the convening of the General Meeting.

30.2. <u>Content of Notice</u>. Subject to the provisions of any Law, each such notice shall specify the place, the day and hour of the meeting, the agenda of the meeting and a concise description of the items for discussion; *<u>provided</u>*, *<u>however</u>*, that (i) in the event that the agenda includes a proposal to amend the Articles, the notice shall include the text of the proposed amendment(s); and (ii) with respect to a notice of an Annual Meeting, a copy of the financial statements of the Company shall be delivered, together with the notice of such Annual Meeting, to any Shareholder entitled to vote at such meeting.

30.3. <u>Changes to Time and Place of any Meeting</u>. The Board's authority to determine the time and the place for the convening of the General Meeting shall include the power to change such time and/or place, prior to the convening of the General Meeting and subject to the provisions of these Articles and any Law, including with regard to the sending of a new notice to the Shareholders.

30.4. <u>Validity of Acts</u>. Any accidental omission with respect to the giving of a notice of a General Meeting to any Shareholder or the non-receipt of a notice with respect to a meeting or any other notice on the part of any Shareholder shall not cause the cancellation of a resolution adopted at that meeting, or the cancellation of acts based on such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.  **<u>The Agenda of General Meetings</u>** 

31.1. The agenda of General Meetings shall be determined by the Board and shall also include issues for which a Special Meeting is being convened in accordance with Article ‎28 above, or as may be required upon the request of Shareholders in accordance with the provisions of the Companies Law.

31.2. The General Meeting shall only adopt resolutions on issues which are on its agenda.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.  **<u>Entitlement to participate in a General Meeting and to vote thereat</u>** 

32.1. Subject to the provisions of the Companies Law, the Shareholders who are entitled to participate in and vote at a General Meeting shall be the Shareholders on the date of the General Meeting.

32.2. An objection to the right of a Shareholder to participate in and vote at a General Meeting must be raised at such meeting and any vote not disqualified thereat shall be deemed valid for any purpose. The Chairperson of the meeting shall decide whether to accept or reject any objection raised at the appointed time with regard to the participation and vote of a Shareholder and his decision shall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.  **<u>Quorum</u>** 

33.1. No business shall be transacted at a General Meeting, or at any adjournment thereof, unless a lawful quorum is present when the meeting proceeds to business.

33.2. Subject to the requirements of the Companies Law and the provisions of these Articles, any two or more Shareholders (not in default in payment of any sum referred to in Article ‎16 hereof), present in person or by proxy, and who hold or represent in the aggregate at least fifty percent (50%) of the Preferred Shares of the Company, shall constitute a lawful quorum at General Meetings. A Shareholder or his proxy, who also serves as a proxy for other Shareholder(s), shall be regarded as two or more Shareholders, in accordance with the number of Shareholders he is representing.

33.3. If within an hour from the time appointed for the General Meeting a quorum is not present, the meeting shall stand adjourned to the same day in the next week (or the first Business Day thereafter), at the same time and place, or to such day and at such time and place as the Chairperson may determine with the consent of the holders of a majority of the voting power represented at the meeting in person or by proxy and voting on the question of adjournment. No business shall be transacted at any adjourned meeting except business, which might lawfully have been transacted at the meeting as originally called. At such adjourned meeting, any one Shareholder (not in default as aforesaid) present in person or by proxy shall constitute a lawful quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.  **<u>Chairperson</u>** 

The Chairperson of the Board shall preside as Chairperson at every General Meeting. If there is no such Chairperson, or if the Chairperson is not present within fifteen (15) minutes after the time fixed for holding such meeting or is unwilling to act as Chairperson, the Shareholders present shall choose someone of their number or any other person to be Chairperson. The position of Chairperson shall not, by itself, entitle the holder thereof to vote at any General Meeting nor shall it entitle such holder to a second or casting vote (without derogating, however, from the rights of such Chairperson to vote as a Shareholder or proxy of a Shareholder if, in fact, he is also a Shareholder or proxy, respectively).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.  **<u>Adjourned Meeting</u>** 

35.1. A General Meeting at which a lawful quorum is present (the "**Original General Meeting**"), may resolve by an Ordinary Majority to adjourn the General Meeting, from time to time, to another time and/or place (an "**Adjourned Meeting**").

35.2. Notice

(a) In the event that a General Meeting is adjourned for more than twenty-one (21) days, a notice of the Adjourned Meeting shall be given in the same manner as the notice of the Original General Meeting.

(b) In the event that a General Meeting is adjourned for twenty-one (21) days or less, a notice of the Adjourned Meeting shall be given as soon as practicable, and not later than seventy-two (72) hours prior to the Adjourned Meeting, in the same manner, *mutatis mutandis*, as the notice of the Original General Meeting.

35.3. <u>Agenda at an Adjourned Meeting</u>. The Adjourned Meeting shall only discuss issues that could have been discussed at the Original General Meeting, and with respect to which no resolution was adopted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.  **<u>Adoption of Resolutions at General Meetings</u>** 

36.1. All resolutions of the General Meeting shall be adopted by an Ordinary Majority, except for any matters with respect to which a greater or different majority is required by these Articles, or by the Companies Law (with the exception of Section 20(c) of the Companies Law being specifically stipulated by these Articles).

36.2. Every matter submitted to a General Meeting shall be decided by a show of hands, but if a written ballot is demanded by any Shareholder, present in person or by proxy and entitled to vote at the meeting, the same shall be decided by such ballot. A written ballot may be demanded before the proposed resolution is voted upon or immediately after the declaration by the Chairperson of the results of the vote by a show of hands. If a vote by written ballot is taken after such declaration, the results of the vote by a show of hands shall be of no effect, and the proposed resolution shall be decided by such written ballot. The demand for a written ballot may be withdrawn at any time before the same is conducted, in which event another Shareholder may then demand such written ballot. The demand for a written ballot shall not prevent the continuance of the meeting for the transaction of business other than the question on which the written ballot has been demanded.

36.3. A declaration by the Chairperson of the meeting that a resolution has been adopted unanimously, or adopted by a particular majority, or rejected, and an entry to that effect in the minute book of the Company, shall be *prima facie* evidence of the fact without proof of the number or proportion of the votes recorded in favor of or against such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.  **<u>Resolutions in Writing</u>** 

A resolution in writing signed by all Shareholders of the Company then-entitled to attend and vote at General Meetings or to which all such Shareholders have given their written consent (by letter, facsimile, e-mail or otherwise), or their oral consent by telephone (provided that a written summary thereof has been approved and signed by the Chairperson of the Board) shall be deemed to have been unanimously adopted by a General Meeting duly convened and held. Such resolution could be stated in several counterparts of the same document, each of them signed by one Shareholder or by several Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.  **<u>Conducting a General Meeting Through Means of Communication</u>** 

The Company may conduct a General Meeting through the use of any means of communication, provided all of the participating Shareholders can hear each other simultaneously. A resolution approved by use of means of communications as aforesaid, shall be deemed to be a resolution lawfully adopted at a General Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.  **<u>Voting Power</u>** 

Subject to the provisions of Article ‎40.1 and subject to any provision hereof conferring special rights as to voting, or restricting the right to vote, every Shareholder shall have one vote for each share held by him of record (calculated on an as-converted basis), on every resolution, without regard to whether the vote thereon is conducted in person, by proxy, by a show of hands, by written ballot or by any other means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.  **<u>Voting Rights</u>** 

40.1. No Shareholder shall be entitled to vote at any General Meeting (or be counted as a part of the lawful quorum thereat), unless all calls and other sums then payable by him in respect of his shares in the Company have been paid (or unless the shares' issue conditions otherwise provide), but this Article ‎40.1 shall not apply to Class Meetings pursuant to Article ‎29.

40.2. A company or other corporate entity being a Shareholder of the Company may, by resolution of its directors or any other managing body thereof, authorize any person to be its representative at any General Meeting. Any person so authorized shall be entitled to exercise on behalf of such Shareholder all the power, which the latter could have exercised if it were an individual shareholder. Upon the request of the Chairperson of the General Meeting, written evidence of such authorization (in form acceptable to the Chairperson) shall be delivered to him.

40.3. Any Shareholder entitled to vote may vote either personally (or, if the Shareholder is a company or other corporate entity, by a representative authorized pursuant to Article ‎40.2) or by proxy (subject to Article ‎44 below).

40.4. If two or more persons are registered as joint holders of any share, the vote of the senior who tenders a vote, in person or by proxy, shall be accepted to the exclusion of the vote(s) of the other joint holder(s), and for this purpose seniority shall be determined by the order in which the names stand in the Shareholder Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.  **<u>Preferred Shares Voting Rights</u>** 

41.1. Without derogating from or limiting the provisions of Article ‎40 and except as otherwise required by Law, each holder of Preferred Shares shall be entitled to vote, together with the holders of the Ordinary Shares as one class (on an as-converted basis), on all matters submitted to a vote of the shareholders of the Company, and shall be entitled to the number of votes equal to the number of Ordinary Shares that would be issuable to such holder if all Preferred Shares held by such holder were converted pursuant to Article ‎7 hereof immediately prior to the record date for the determination of the shareholders entitled to vote on such matters or, if no such record date is established, as of the date such vote is taken or any written consent of shareholders is first executed.

41.2. With respect to a matter requiring a separate class vote of the Preferred Shares under the Law (but subject to subsection 9.2(b)), Preferred Shareholders shall have the right to vote their Preferred Shares as a single class and not as separate series; except that if a separate class vote is required by law (but subject to subsection 9.2(b)), the Preferred B-1 Shares and the Preferred B-2 Shares shall vote together as a single "Preferred B share class" and not as separate series, and the Preferred A-1 Shares, Preferred A-2 Shares, Preferred A-3 Shares, Preferred A-4 Shares, and Preferred A-5 Shares shall vote together as a single "Preferred A share class" and not as separate series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.  **<u>Personal Interest in Resolution</u>** 

42.1. A Shareholder seeking to vote with respect to a resolution which requires that the majority for its adoption include at least a certain percentage of the votes of all those not having a personal interest (as defined in the Companies Law) in the resolution, shall notify the Company prior to the date of the General Meeting, whether or not he has a personal interest in the resolution, as a condition for his right to vote and be counted with respect to such resolution.

42.2. A Shareholder voting on a resolution, as aforesaid, by means of a deed of authorization of a proxy, may include his notice with respect to his personal interest on the deed of authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.  **<u>Validity of Acts Despite Defects</u>** 

Subject to the provisions of the Companies Law, a defect in convening or conducting the General Meeting, including a defect deriving from the non-fulfillment of any provision or condition laid down in the Law or these Articles, including with regard to the manner of convening or conducting the General Meeting, shall not disqualify any resolution passed at the General Meeting and shall not affect the discussions which took place thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44.  **<u>Voting by Means of a Proxy</u>** 

44.1. A Shareholder registered in the Shareholder Register is entitled to appoint by deed of authorization a proxy (who is not required to be a Shareholder of the Company) to participate and vote in his stead, whether at a certain General Meeting or generally at General Meetings of the Company.

44.2. In the event that the deed of authorization is not limited to a certain General Meeting, then the deed of authorization, which was deposited prior to a certain General Meeting, shall also be good for other General Meetings thereafter. This Article ‎44 shall also apply to a Shareholder which is a company, appointing a person to participate and vote in a General Meeting in its stead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45.  **<u>A Deed of Authorization</u>** 

45.1. The deed of authorization of a proxy shall be in writing, or in any usual or common form or in such other form as may be approved by the Board. It shall be duly signed by the appointer or his/her/its duly authorized attorney or, if such appointer is a company or other corporate entity, under its common seal or stamp or the hand of its duly authorized agent(s) or attorney(s). The Company may demand that it be given written confirmation to its satisfaction of the authority of those signing to bind such company or other corporate entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46.  **<u>Effect of Death of Appointer or Revocation of Appointment</u>** 

A vote cast pursuant to a deed of authorization of a proxy shall be valid notwithstanding the previous death, incapacity or bankruptcy, or if a company or other corporate entity, the liquidation, of the appointing Shareholder (or of his attorney-in-fact, if any, who signed such instrument), or the revocation of the appointment or the transfer of the share in respect of which the vote is cast, provided no written notice of any such event shall have been received by the Company or by the Chairperson of the General Meeting before such vote is cast and provided, further, that the appointing Shareholder, if present in person at said General Meeting, may revoke the appointment by means of a writing, oral notification to the Chairperson, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.  **<u>Disqualification of Deeds of Authorization</u>** 

Subject to the provisions of applicable Law, the corporate secretary of the Company may, in his discretion, disqualify a deed of authorization and so notify the Shareholder who submitted the deed of authorization in the following cases:

47.1. If there is a reasonable suspicion that it is forged or falsified;

47.2. If it is not duly executed or completed;

47.3. If there is a reasonable suspicion that it is given with respect to shares for which one or more deeds of authorization have been given and not withdrawn; or

47.4. If more than one choice is marked for the same resolution; or

47.5. With respect to resolutions, which require that the majority for their adoption include a certain percentage of those not having a personal interest in the approval of the resolution, where it was not marked, or otherwise notified to the Company, whether or not the relevant Shareholder has a personal interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.  **<u>Board Recommendation</u>** 

The Board may, in its sole discretion, send to the Shareholders a recommendation in order to persuade them with respect to any matter, which is on the agenda of the General Meeting. Such recommendation shall be delivered at the expense of the Company.

**<u>BOARD OF DIRECTORS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.  **<u>The Authority of the Board</u>** 

49.1. The authority of the Board is as specified in the Companies Law and in the provisions of these Articles.

49.2. The Board may exercise any authority of the Company that is not, by the Companies Law or by these Articles, required to be exercised by another organ of the Company.

49.3. Without derogating from the generality of Articles ‎49.1 and ‎49.2 above, the Board's authority shall include the following:

(a) The Board may, from time to time, in its discretion, cause the Company to borrow or secure the payment of any sum or sums of money for the purposes of the Company, and may secure or provide for the repayment of such sum or sums in such manner, at such times and upon such terms and conditions in all respects as it deems appropriate, including by the issuance of bonds, perpetual or redeemable debentures or other Securities, or any mortgages, charges, or other liens on the undertaking or the whole or any part of the property of the Company, both present and future, including its uncalled or called but unpaid capital.

(b) The Board may, from time to time, set aside any amount(s) out of the profits of the Company as a reserve or reserves for any purpose(s) which the Board, in its sole discretion, shall deem appropriate, and may invest any sum so set aside in any manner and from time to time deal with and vary such investments, and dispose of all or any part thereof, and employ any such reserve or any part thereof in the business of the Company without being bound to keep the same separate from other assets of the Company, and may subdivide or re-designate any reserve or cancel the same or apply the funds therein for another purpose, all as the Board may from time to time deem appropriate.

(c) Subject to the provisions of any Law, the Board may, from time to time, authorize any person to be the representative of the Company with respect to those objectives and subject to those conditions and for that time period, as the Board deems appropriate, and may also grant any such representative the authority to delegate any or all of the authorities, powers and discretion given to him by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50.  **<u>Convening Meetings of the Board</u>** 

50.1. The Chairperson of the Board, and in the event that a Chairperson has not been appointed, any Director, may convene a meeting of the Board at any time; provided that a meeting of the Board be convened at least every three months.

50.2. The Chairperson of the Board shall convene a meeting of the Board at any time or in any event that such meeting is required by the provisions of the Companies Law, including:

(a) The Chairperson of the Board shall convene the Board on a specified matter on the demand of at least two Directors or one Director alone if the Company has less than five Directors.

(b) The Chairperson of the Board shall act without delay to call a meeting of the Board within 14 days of being notified by a Director of the Company that he has learned of a matter of the Company in which a breach of the Law or impairment to proper business procedure has *prima facie* been discovered or of the date on which the Company's Auditor reports to him that he has learned of material deficiencies in the audit of the Company's accounts.

(c) If a notice or report of the General Manager obliges action by the Board, the Chairperson of the Board shall, without delay and within 14 days of the notice or report, call a meeting of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51.  **<u>Notice of a Meeting of the Board</u>** 

51.1. Any notice with respect to meeting of the Board may be given orally or in writing, so long as the notice is given at least three (3) Business Days prior to the date fixed for the meeting, unless all members of the Board or their Alternate Directors (as defined in Article ‎61.1) or their Representatives (as defined in Article ‎61.2) agree on a shorter time period. Such notice shall be delivered personally, by mail, e-mail or through another means of communication, to the address, the e-mail address or to an address where messages can be delivered through other means of communication, as the case may be, as the Director informed the Company in advance.

51.2. A notice with respect to a meeting of the Board shall include the place, date and time of the meeting of the Board, the issues on its agenda and any other material that the Chairperson of the Board, or the Director who convened the meeting, requests to be included in the notice with respect to the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52.  **<u>The Agenda of Board Meetings</u>** 

The agenda of any meeting of the Board shall be as determined by the Chairperson of the Board, and if there is no Chairperson, by a resolution of the director convening the meeting, and shall include the following matters:

52.1. Matters for which the meeting is required to be convened in accordance with the Companies Law;

52.2. Any matter requested by a Director or by the General Manager to be included in the meeting within a reasonable time (taking into account the nature of the matter) prior to the date of the meeting;

52.3. Any other matter determined by the Chairperson of the Board, or if there is no Chairperson, by the Director convening the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53.  **<u>Quorum</u>** 

53.1. Unless otherwise unanimously decided by all the members of the Board, a quorum at a meeting of the Board shall be constituted by the presence of a majority of the directors.

53.2. If within half an hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned to the next 48 hours, at the same place, or to such day and at such time and place as the Chairperson may determine with the consent of the majority of the Directors represent. No business shall be transacted at any adjourned meeting except business, which might lawfully have been transacted at the meeting as originally called. At such adjourned meeting, any one Director present shall constitute a lawful quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54.  **<u>Conducting a Meeting Through Means of Communication</u>** 

The Board may conduct a meeting of the Board through the use of any means of communication, provided all of the participating Directors can hear each other simultaneously. A resolution approved by use of means of communications as aforesaid, shall be deemed to be a resolution lawfully adopted at a meeting of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55.  **<u>Voting in the Board</u>** 

Unless otherwise provided by these Articles, issues presented at meetings of the Board shall be decided upon by a majority of the votes of Directors present (or participating, in the case of a vote through a permitted means of communications) and lawfully entitled to vote thereon. Subject to the provision of Article ‎61.4 below with respect to representatives of Directors that are companies, each Director shall have a single vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56.  **<u>Adoption of Resolutions Without Convening</u>** 

The Board may adopt resolutions without actually convening with the written consent (given by letter, e-mail or otherwise) of all the Directors then in office and lawfully entitled (as conclusively determined by the Chairperson of the Board) to participate and to vote thereon to such convening of the Board. Matters presented in accordance with this Article ‎56 shall be decided upon by such majority of the votes of the Directors that would have been required pursuant to these Articles in order to pass such resolution in a duly convened meeting of the Board in which all the then nominated Directors were present. Resolutions adopted pursuant to this Article ‎56 shall be deemed to have been duly adopted by a meeting of the Board duly convened and held. Minutes of such resolutions shall be approved and signed by the Chairperson of the Board, and shall include the resolution to adopt resolutions without convening.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57.  **<u>Written Resolution</u>** 

A resolution in writing signed by all Directors then in office and lawfully entitled to vote thereon or to which all such Directors have given their consent (by letter, facsimile, e-mail or otherwise), shall be deemed to have been unanimously adopted by a meeting of the Board duly convened and held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58.  **<u>The Number of Directors</u>** 

The Board shall consist of up to six (6) members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59.  **<u>Directors Generally</u>** 

59.1. Subject to the provisions of the Companies Law, a Director may hold another position in the Company.

59.2. A company or other corporate entity may serve as a Director in the Company, subject to the provisions of Article ‎61 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60.  **<u>Appointment of Directors; Term of Office; Observer</u>** 

60.1. <u>Right to Appoint Directors</u>

The Directors shall be appointed as follows:

(a) one (1) director will be an industry expert, to be nominated by the Founder;

(b) one director may be appointed, removed and replaced by Terra Group;

(c) two (2) directors will be appointed, removed and replaced by a majority of the Preferred B-1 Shareholders;

(d) one (1) director will be the Chief Executive Officer of the Company;

(e) one (1) director, shall be an industry expert, approved by a majority of the other members of the Board;

60.2. <u>Observers</u>

(a) Molex shall be entitled to appoint one (1) non-voting observer to the Company's Board of Directors (the "**Molex Observer**"). The Molex Observer shall be entitled to attend meetings of the Board of Directors and to receive materials forwarded to the members of the Board of Directors, subject to execution of a customary confidentiality agreement and to limitations as set forth in an observer agreement executed between the Company, Molex, and the Molex Observer. In the event of any conflict or contradiction between these Articles and the rights granted under an observer agreement, as applicable, the provisions of the Observer Letter shall prevail. Molex's right as outlined in this Section ‎60.2 shall terminate in accordance with the terms of the observer agreement.

(b) Mr. Jian Hu Peng shall be entitled to appoint one (1) non-voting observer to the Company's Board of Directors (the "**Peng Observer**"). The Peng Observer shall be entitled to attend meetings of the Board of Directors and to receive materials forwarded to the members of the Board of Directors, subject to execution of a customary confidentiality agreement and to limitations as set forth in the Series C-2 Preferred Share Purchase Agreement executed between the Company and Mr. Jian Hu Peng, dated March 1, 2017. In the event of any conflict or contradiction between these Articles and the rights granted under such agreement, as applicable, the provisions of such agreement shall prevail. Mr. Peng's right as outlined in this Section ‎60.2 shall terminate in accordance with the terms of such agreement.

60.3. <u>Manner of Appointment</u>. Any appointment pursuant to Article ‎60.1 shall be by written notice, delivered to the Company and signed by the appointing person. In the case of appointment by holders of a class of shares, such notice shall be signed by holders of the majority of the outstanding shares of such class (and may alternatively be effected by the resolution of a class meeting of such class); and in the case of a group of persons, such notice shall be signed by any one or more such persons, holding together a majority of the outstanding shares of the Company (on an as-converted basis) held by all such persons.

60.4. <u>Term of Office</u>. Each Director's term of office shall commence upon the date of delivery of the instrument appointing him or her, unless a later date is stated in the instrument of appointment and shall serve in office until a replacement is appointed, unless their office is vacated earlier in accordance with applicable Law or these Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61.  **<u>Alternate Directors; Representative of a Director that is a Company</u>** 

61.1. <u>Alternate Director</u>. Subject to the provisions of the Companies Law, any Director may, by written notice to the Company, appoint an alternate for himself (in these Articles, an "**Alternate Director**"), dismiss such Alternate Director and appoint another Alternate Director in place of any Alternate Director appointed by him whose office has been vacated for any reason whatsoever, whether for a certain meeting or a certain period of time or generally. Anyone who is not qualified to be appointed as a Director may not be appointed and may not serve as an Alternate Director.

61.2. <u>Director's Representative</u>. A Director that is a company or other corporate entity shall appoint an individual, qualified to be appointed as a Director in the Company, in order to serve on its behalf ("**Director**'**s Representatives**"), either for a certain meeting or for a certain period of time or generally and such company or other entity may also dismiss that individual and appoint another in his stead.

61.3. <u>Manner of Notice</u>. Any notice given to the Company pursuant to Articles ‎61.1 and ‎61.2 shall be in writing, delivered to the Company and signed by the appointing or dismissing Director, and shall become effective on the date fixed therein, or upon the delivery thereof to the Company, whichever is later.

61.4. <u>Authority of the Appointed</u>. Each of an Alternate Director and a Director's Representative shall have all the authority of the Director who appointed him (except that neither an Alternate Director nor a Director's Representative may appoint an alternate for himself, unless the instrument appointing him otherwise expressly provides), *<u>provided</u>*, *<u>however</u>*, that an Alternate Director shall have no standing at any meeting of the Board or any committee thereof while the Director who appointed him is present.

61.5. <u>Multiple Capacities</u>. Subject to Articles ‎61.1 and ‎61.2, any person, whether or not a Director, may serve as an Alternate Director or a Director's Representative. One person may act as an Alternate Director or a Director's Representative of several Directors, and in such event he shall have a number of votes (and shall be treated as the number of persons for purposes of establishing a quorum) equal to the number of Directors for whom he acts in such capacity. If such person is also a Director in his own right, his rights (also including treatment for purposes of quorum requirements) as an Alternate Director or a Director's Representative shall be in addition to those as a Director.

61.6. <u>Termination of Office</u>. The office of an Alternate Director or a Director's Representative shall be vacated under the circumstances, *mutatis mutandis*, set forth in Article ‎62, and such office shall *ipso facto* be vacated if the Director who appointed such Alternate Director or Director's Representative ceases to be a Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62.  **<u>Termination of the Term of a Director</u>** 

The term of a Director shall terminate in any of the following cases:

62.1. If he resigned from his office by way of a signed letter, filed with the corporate secretary at the Company's office;

62.2. If he is declared bankrupt;

62.3. If he is declared by an appropriate court to be incapacitated;

62.4. Upon his death and, in the event of a company or other corporate entity, upon the adoption of a resolution for its voluntary liquidation or the issuance of a liquidation order;

62.5. If he is removed from his office by way of a written notice to the Company of the termination of his appointment by the persons or entities that are entitled to appoint him;

62.6. If the person(s) that appointed him no longer have the right to appoint or dismiss him;

62.7. If he is convicted of a crime requiring his termination pursuant the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63.  **<u>Continuing Directors in the Event of Vacancies</u>** 

63.1. In the event of one or more vacancies in the Board, the continuing Directors may continue to act in every matter.

63.2. In the event of any vacancy in the Board, such vacancy may only be filled by the holders of shares that designated or elected the previous director of such vacancy pursuant to Article 60.1 and subject to its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64.  **<u>Compensation of Directors</u>** 

64.1. Directors who do not hold other positions in the Company shall not receive any compensation from the Company, unless such compensation and its amount are approved by the General Meeting, subject to applicable Law. Notwithstanding the above, in the event that the Director is an Office Holder of the Company, such Director shall not receive any additional compensation from the Company in addition to his compensation under his engagement as Office Holder with the Company.

64.2. The Company may reimburse expenses incurred by a Director in connection with the performance of his duties as a Director, to the extent provided in a resolution of the Board. The Company shall reimburse all reasonable out-of-pocket expenses (including air travel) incurred by the directors for attending the Board and committees meetings and performing their duties as directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65.  **<u>Personal Interest of a Director</u>** 

Subject to compliance with the provisions of the Companies Law, the Company may enter into any contract or otherwise transact any business with any Director and may enter into any contract or otherwise transact any business with any third party in which contract or business a Director has a personal interest, directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66.  **<u>Committees of the Board of Directors</u>** 

66.1. Subject to the provisions of the Companies Law and these Articles, the Board may delegate its authorities or any part of them to one or more committees comprised solely of Directors, as the Board deems appropriate, and it may from time to time cancel the delegation of any such authority ("**Committee(s) of the Board**"). Any such Committee of the Board, while utilizing an authority as stated, is obligated to fulfill all of the instructions given to it from time to time by the Board. The Board may adopt a charter, or guidelines, for any such Committee of the Board and amend the same from time to time. Any resolution of a Committee of the Board, within the power delegated to the Committee of the Board, shall be deemed as if resolved by the Board.

66.2. The provisions of these Articles with respect to meetings of the Board shall apply, *mutatis mutandis,* to the meetings and discussions of each committee of the Board, except to the extent that other terms are set by the Board in this matter.

66.3. <u>Advising Committees</u>. The Board may appoint committees for the purpose of advising the Board (all the members of which do not have to be Directors), and it may from time to time alter the composition of any such committee ("**Advising Committees**"). Any such Advising Committee may advise or recommend to the Board with regard to any matter, as shall be required by the Board from time to time, and shall have no authority other than advising the Board.

66.4. The provisions of this Article ‎66 shall not derogate, and be in addition to, the provisions of Article ‎13.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67.  **<u>Chairperson of the Board</u>** 

67.1. The majority of the Directors may from time to time choose one of the members of the Board to serve as the Chairperson of the Board, remove such Chairperson from office and choose another in its place. If at any time the Board shall consist of one Director, such Director shall at such time have the powers of the Chairperson of the Board.

67.2. The Chairperson of the Board shall preside at every meeting of the Board, but if there is no such Chairperson, or if at any meeting he is not present within 30 minutes of the time fixed for the meeting, or if he is unwilling to take the chair, the Board shall appoint one of the Directors present to preside at the meeting.

67.3. The Chairperson of the Board shall sign the minutes of the meetings of the Board.

67.4. The Chairperson will not have any additional or casting vote. The Chairperson of the Board is entitled, at all times, at his initiative or pursuant to a resolution of the Board, to require reports from the General Manager in matters pertaining to the business affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68.  **<u>Validity of Acts Despite Defects</u>** 

Subject to the provisions of the Companies Law, all acts done bona fide at any meeting of the Board, or of a committee of the Board, or by any person(s) acting as Director(s), shall, notwithstanding that it may afterwards be discovered that there was some defect in the appointment of the participants in such meetings or any of them or any person(s) acting as aforesaid, or that they or any of them were disqualified, be as valid as if there was no such defect or disqualification. For the avoidance of any doubt, the intention of this provision is not to validate any resolution adopted without the required majority as set forth in these Articles.

**<u>OFFICERS; AUDITOR</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69.  **<u>The General Manager</u>** 

The Board may appoint a General Manager, and may appoint more than one General Manager. Such appointment(s) may be either for a fixed term or without any limitation of time, and the Board may from time to time (subject to the provisions of the Companies Law and of any contract between any such person and the Company) fix his or their salaries and emoluments, remove or dismiss him or them from office and appoint another or others in his or their place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70.  **<u>The Authority of the General Manager</u>** 

70.1. The General Manager is responsible for the day-to-day management of the affairs of the Company within the framework of the policies set by the Board and subject to its instructions.

70.2. The General Manager shall have all managerial and operational authorities, which were not conferred by Law or pursuant to these Articles to any other organ of the Company, and he shall be under the supervision of the Board.

70.3. In the event the Board appoints more than one General Manager, the Board may determine the respective positions and functions of the General Managers and allocate their authorities as the Board may deem appropriate.

70.4. The Board may assume the authority granted to the General Manager, either with respect to a certain issue or for a certain period of time.

70.5. The Board may instruct the General Manager how to act in a particular matter; if the General Manager does not obey the instruction, the Board may exercise the power required to implement the instruction in his stead.

70.6. In the event that the General Manager is unable or refuses to exercise his authority, the Board may exercise such authority in his stead, or authorize another to exercise such authority.

70.7. The General Manager, with the prior approval of the Board, may delegate to his subordinates any of his authorities.

70.8. Subject to the provisions of the Companies Law, the Board, may delegate to the General Manager powers which the Board has pursuant to these Articles, as it deems fit, and it may delegate these powers, or any of them, for such period and objects, on such conditions and with such restrictions as it deems fit. The Board may alter or cancel any delegation of powers as aforesaid.

70.9. In the event that the Company did not appoint a General Manager, the Board shall have all the authorities of the General Manager as detailed in this Article ‎70.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;71.  **<u>The General Manager's Reporting Duties</u>** 

71.1. The General Manager must notify the Chairperson of the Board of any exceptional matter which is material to the Company or of any material deviation of the Company from the policy prescribed by the Board. If the Company does not have a Chairperson of the Board, for any reason, the General Manager shall notify all the Board members as aforesaid.

71.2. The General Manager shall submit reports to the Board on the matters, at the times and on the scale prescribed by the Board.

71.3. The General Manager shall report to the Chairperson of the Board, on his demand, on matters relating to the Company's business and the proper management thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72.  **<u>Corporate Secretary</u>** 

72.1. The Board may appoint a corporate secretary for the Company, on such terms as it deems fit, and may appoint a deputy secretary and determine their duties and powers.

72.2. If a corporate secretary is not appointed for the Company, the General Manager, or someone authorized by him for such purpose and in the absence of a General Manager someone authorized for such purpose by the Board, shall perform the duties prescribed for the corporate secretary pursuant to the Law, these Articles and the Board's resolution.

72.3. The Company's corporate secretary shall be liable for all the documents kept at the Company's registered office and shall keep the registers kept by the Company pursuant to the Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73.  **<u>Other Officers of the Company</u>** 

The Board may appoint, in addition to the General Manager, other officers, define their positions and authorities, and set their compensation and terms of employment. The Board may authorize the General Manager to exercise any or all of its authorities stated in this Article ‎73.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74.  **<u>The Auditor</u>** 

74.1. The Shareholders at the Annual Meeting shall appoint an Auditor for a period until the completion of the performance of one audit, or for a longer period not to extend beyond the completion of the performance of three audits. Where the Auditor is appointed for such a period, the Annual Meeting shall not discuss the appointment of an Auditor during the said period, unless a resolution is passed to terminate his office. Subject to the provisions of the Companies Law, the General Meeting is entitled at any time to terminate the service of the Auditor.

74.2. The Board shall fix the compensation of the Auditor of the Company for his auditing activities, and shall also fix the compensation of the Auditor for additional services, if any, which are not auditing activities, and, in each case, shall report thereon to the Annual Meeting.

**<u>DISTRIBUTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75.  **<u>Permitted Distribution</u>** 

The Company may effect a distribution of Dividends to its Shareholders to the extent permitted by the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76.  **<u>Right to Dividend or Bonus Shares; Dividend Preference</u>** 

76.1. A Shareholder shall be entitled to receive Dividends or bonus shares, upon the resolution of the Company in accordance with Article ‎77 below, consistent with the rights attached to the shares held by such Shareholder.

76.2. Subject to the provisions of Article ‎16.6 above, the Shareholders entitled to receive Dividends or bonus shares shall be those who are registered in the Shareholder Register on the date of the resolution approving the distribution or allotment, or on such later date, as may be determined in such resolution.

76.3. In the event the Company pays a Dividend or distributes bonus shares, then, in each such case, all Shareholders shall be entitled to receive such distribution, in respect of their holdings on an as-converted basis as of the record date for such distribution, subject however to the Dividend preference rights of the Preferred Shares set forth below.

76.4. For the avoidance of doubt any distribution of Dividends (whether made in connection with a Liquidation Event or otherwise) shall be paid to the Shareholders, subject exclusively to the provisions of Article 93 and the preference rights of the Preferred Shares set forth thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77.  **<u>Resolution of the Company with Respect to a Dividend or Bonus Shares</u>** 

Subject to the requirements of Articles 76 and 93, the distribution of Dividends and the issuance of bonus shares shall be within the authority of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78.  **<u>Specific Dividend</u>** 

A Dividend may be paid, in whole or in part, by the distribution of specific assets of the Company or by distribution of paid up shares, debentures or other Securities of the Company or of any other companies, or in any combination thereof. For the purposes of Articles 76 and 93, determination of the value of such specific Dividend shall be determined in good faith by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79.  **<u>Deductions from Dividends</u>** 

The Board may deduct from any distribution or other moneys payable to any Shareholder in respect of a share any and all sums of money then payable by him to the Company on account of calls or otherwise in respect of shares of the Company and/or on account of any other debt permitted to be setoff in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80.  **<u>Retention of Dividends</u>** 

80.1. The Board may retain any Dividend, bonus shares or other moneys payable or property distributable in respect of a share on which the Company has a lien, and may apply the same in or toward satisfaction of the debts, liabilities, or engagements in respect of which the lien exists.

80.2. The Board may retain any Dividend, bonus shares or other moneys payable or property distributable in respect of a share in respect of which any person is, under Article ‎22.6, entitled to become a Shareholder, or which any person is, under said Article, entitled to transfer, until such person shall become a Shareholder in respect of such share or shall transfer the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81.  **<u>Mechanics of Payment</u>** 

Any Dividend or other moneys payable in cash in respect of a share, less the tax required pursuant to the Law, may be paid by cheque sent by registered mail to, or left at, the registered address of the person entitled thereto or by transfer to a bank account specified by such person (or, if two or more persons are registered as joint holders of such share or are entitled jointly thereto as a result of the death or bankruptcy of the holder or otherwise, to any one of such persons or to his bank account), or to such person and at such address as the person entitled thereto may direct in writing. Every such cheque shall be made payable to the order of the person to whom it is sent, or to such person as the person entitled thereto as aforesaid may direct, and payment of the cheque by the banker upon whom it is drawn shall be a good discharge to the Company. Every such cheque shall be sent at the risk of the person entitled to the money represented thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82.  **<u>An Unclaimed Dividend</u>** 

All unclaimed Dividends or other moneys payable in respect of a share may be invested or otherwise made use of by the Board for the benefit of the Company until claimed. The payment by the Board of any unclaimed Dividend or such other moneys into a separate account shall not constitute the Company a trustee in respect thereof, and any Dividend unclaimed after a period of seven (7) years from the date of declaration of such Dividend, and any such other moneys unclaimed after a like period from the date the same were payable, shall be forfeited and shall revert to the Company; *<u>provided</u>*, *<u>however</u>*, that the Board may, at its discretion, cause the Company to pay any such Dividend or such other moneys, or any part thereof, to a person who would have been entitled thereto had the same not reverted to the Company. The Company shall not be liable to pay interest or linkage for unclaimed Dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83.  **<u>Receipt from a Joint Holder</u>** 

If two or more persons are registered as joint holders of any share, or are entitled jointly thereto as a result of the death or bankruptcy of the holder or otherwise, any one of them may give effectual receipts for any Dividend, bonus shares or other moneys payable or property distributable in respect of such share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84.  **<u>Funds</u>** 

The Board may, in its discretion, make provisions to special funds of any amount from the Company's profits, or from a revaluation of its assets, or its proportional part in the revaluation of the assets of its affiliates, and determine the purpose of these funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85.  **<u>Manner of Capitalization of Profits and the Distribution of Bonus Shares</u>** 

Upon the resolution of the Board, the Company may cause any moneys, investments, or other assets forming part of the undivided profits of the Company, standing to the credit of a reserve fund, or to the credit of a reserve fund for the redemption of capital, or in the hands of the Company and available for distribution, or representing premiums received on the issuance of shares and standing to the credit of the share premium account, to be capitalized and distributed as capital among such of the Shareholders as would be entitled to receive the same if distributed by way of Dividend and in the same proportion, or may cause any part of such capitalized fund to be applied on behalf of such Shareholders in paying up in full, either at par or at such premium as the resolution may provide, any unissued shares or debentures or other Securities of the Company which shall be distributed accordingly, in payment, in full or in part, of the uncalled liability on any issued shares or debentures or other Securities, and may cause such distribution or payment to be accepted by such Shareholders in full satisfaction of their interest in such capitalized sum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86.  **<u>Settlement by the Board</u>** 

The Board may settle, as it deems fit, any difficulty arising with regard to any distribution, and in particular, to issue certificates for fractions of shares and sell such fractions of shares in order to pay their consideration to those entitled thereto, to set the value for the distribution of certain assets and to determine that cash payments shall be paid to the Shareholders on the basis of such value, or that fractions whose value is less than NIS 1.00 shall not be taken into account. The Board may pay cash or convey these certain assets to a trustee in favor of those people, who are entitled to a Dividend or to a capitalized fund, as the Board shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87.  **<u>Allotment for a consideration lower than the nominal value</u>** 

Where the Company resolves to allot shares, which have a nominal value for a consideration lower than their nominal value, including bonus shares, it must convert into share capital part of its profits, from premium on shares or from any other source included in its equity, which are mentioned in its last financial statements, in an amount equal to the difference between the nominal value and the consideration. Notwithstanding the foregoing, the Company may, with the court's approval, allot shares for a consideration lower than their nominal value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88.  **<u>Acquisition of Shares</u>** 

88.1. The Company is entitled to acquire or to finance an acquisition, directly or indirectly, of shares of the Company or Securities convertible or exercisable into shares of the Company, including incurring an obligation to take any of these actions, subject to the provisions of the Companies Law. In the event that the Company so acquired any of its shares, any such share shall become a dormant share, and shall not confer any rights, so long as it is held by the Company.

88.2. A subsidiary or another company controlled by the Company is entitled to acquire or finance an acquisition, directly or indirectly, of shares of the Company or Securities convertible or exercisable into shares of the Company, or incur an obligation with respect thereto, to the same extent that the Company may make a distribution, subject to the terms of, and in accordance with the Companies Law. In the event a subsidiary or such controlled company so acquired any of the Company's shares, any such share shall not confer any voting rights, so long as it is held by such subsidiary or controlled company.

**<u>INSURANCE, INDEMNIFICATION AND RELEASE OF OFFICE HOLDERS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89.  **<u>Insurance of Office Holders</u>** 

The Company may, to the extent permitted by the Companies Law, enter into a contract for the insurance of the liability of an Office Holder, in respect of a liability imposed on him as a result of an act done by him in his capacity as an Office Holder, in any of the following:

89.1. a breach of his duty of care to the Company or to another person;

89.2. a breach of his duty of loyalty to the Company, provided that the Office Holder acted in good faith and had reasonable grounds to assume that such act would not harm the Company; or

89.3. a financial liability imposed on him in favor of another person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90.  **<u>Indemnification of Office Holders</u>** 

90.1. <u>Authority to Indemnify</u>. The Company may, to the extent permitted by the Companies Law, indemnify an Office Holder for liability or expense he incurs as a result of an act done by him in his capacity as an Office Holder, as follows:

(a) a financial liability imposed on him in favor of another person by a court judgment, including a settlement judgment or an arbitrator's award approved by a court;

(b) reasonable litigation expenses, including attorneys' fees, which the Office Holder incurred due to an investigation or a proceeding brought against the Office Holder by an authority authorized to conduct an investigation or a proceeding, where such investigation or proceeding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ended with no indictment (as such term is defined under Section 260 to the Companies Law, "**No Indictment**"), and without financial penalty imposed in lieu of criminal prosecution (as such term is defined under Section 260 to the Companies Law, "**Financial Penalty**"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of an offence that does not require a finding of criminal thought (*mens rea*) – ended with No Indictment but with a Financial Penalty imposed on such Office Holder; and/or

(c) reasonable litigation expenses, including attorneys' fees, which an Office Holder incurred or expended, or which were charged to him by a court,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in a proceeding filed against him by the Company or on its behalf or by another person, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in a criminal charge from which he was acquitted, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in a criminal charge of which he was convicted of an offence which does not require a finding of criminal thought (*mens rea*).

90.2. <u>Authority to Undertake to Indemnify</u>. The Company may, to the extent permitted by the Companies Law, undertake in advance to indemnify an Office Holder for liability or expense he may incur as a result of an act done by him in his capacity as an Office Holder, as follows:

(a) as detailed in Article ‎90.1(a) above, provided the undertaking is limited to events of a kind which the Board believes can be anticipated at the time of such undertaking, and in an amount (or criterion) that the Board determines is reasonable under the circumstances, or

(b) as detailed in Articles ‎90.1(b) or ‎90.1(c) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91.  **<u>Release of Office Holders</u>** 

The Company may, to the maximum extent permitted by the Companies Law, release an Office Holder, in advance, from his liability, in whole or in part, for damages resulting from the breach of his duty of care to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92.  **<u>General</u>** 

The provisions of Articles ‎89, ‎90 and ‎91 above are not intended, and shall not be interpreted, to restrict the Company in any manner in respect of the procurement of insurance and/or in respect of indemnification and/or release from liability in connection with any person who is not an Office Holder, including any employee, agent, consultant or contractor of the Company who is not an Office Holder, or in connection with any Office Holder to the extent that such insurance and/or indemnification and/or release from liability is permitted under the Law.

**<u>LIQUIDATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93.  **<u>Liquidation Distribution; Liquidation Preference</u>** 

93.1. <u>Liquidation Event</u>. Upon the occurrence of a Liquidation Event, the provisions of this Article 93 shall apply. A "**Liquidation Event**" shall mean:

(a) any liquidation, dissolution, bankruptcy or winding up of the Company, whether voluntary or involuntary, commenced by or against the Company; or

(b) a merger, consolidation, reorganization or similar transaction or series of related transactions to which the Company is a party, *<u>provided</u>*, *<u>however</u>*, that in each case, as a result of such transaction the shareholders of the Company immediately prior to such transaction do not hold more than 50% of the voting securities of the Company (or the surviving or resulting entity) after giving effect to such transaction; or

(c) the sale, lease, transfer or other disposition of all or substantially all of the assets of the Company and its subsidiaries, in a single transaction or series of related transactions taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, or the sale, lease or exclusive license of all or substantially all of the Company's intellectual property, or the sale, transfer or other disposition of all or substantially all of the Company's issued and outstanding share capital to any other entity or person, other than to a wholly owned subsidiary of the Company (Articles ‎93.1(b) and ‎93.1(c), collectively: an "**M&A Transaction**");

(d) a distribution of Dividends to the Shareholders

unless the holders of a majority of the Preferred Shares determine that a transaction is not a Liquidation Event.

93.2. <u>Preference</u>

(a) <u>Series C Preference.</u> First, upon a Liquidation Event, the holders of the Preferred C Shares then outstanding shall be entitled to be paid on a pro rata basis among themselves, an amount per Preferred C Share, equal to the Series C Original Issue Price, before and in preference to any distribution of any Assets to holders of the Preferred B Shares, Preferred A Shares and the Ordinary Shares. For the purpose herein, "**Assets**" means funds, assets or proceeds of the Company distributed or available for distribution to its shareholders, or to which shareholders are entitled to receive pursuant to any Liquidation Event (whether cash, capital, surplus, earnings, securities or assets or any property of any kind.

If the Assets to be distributed to the holders of the Preferred C Shares shall be insufficient to permit the payment to such shareholders of the amount set forth above in Article 93.2(a) in full, then all Assets shall be distributed ratably among the Preferred C Shareholders, in proportion to the respective amounts such holders would otherwise be entitled to receive in respect of the Preferred C Shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

(b) <u>Class B Preference.</u> Second: after the payment in full of the amounts required by Article ‎93.2(a), the holders of the Preferred B-1 Shares and the Preferred B-2 Shares then outstanding shall be entitled to be paid on a pro rata basis among themselves: (x) with respect to each Preferred B-1 Shares - an amount per Preferred B-1 Share equal to the Series B-1 Original Issue Price before and in preference to any distribution of any Assets to holders of the Preferred A Shares and the Ordinary Shares; (y) with respect to each Preferred B-2 Share, an amount per Preferred B-2 Share equal to the Series B-2 Original Issue Price before and in preference to any distribution of any Assets to holders of the Preferred A Shares and the Ordinary Shares.

If the remaining Assets to be distributed to the holders of the Preferred B-1 Shares and the Preferred B-2 Shares shall be insufficient to permit the payment to such shareholders of the amounts set forth above in Article 93.2(b) in full, then after the payments required by Article ‎93.2(a), the remaining Assets shall be distributed ratably among the Preferred B-1 Shareholders and the Preferred B-2 Shareholders, in proportion to the respective amounts such holders would otherwise be entitled to receive in respect of the Preferred B-1 Shares and the Preferred B-2 Shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

(c) <u>Pre-Carve-Out A Shares Preference</u>. Third, after the payments in full of the amounts required by Articles ‎93.2(a) and ‎93.2(b), the holders of the Preferred Pre-Carve-Out A Shares then outstanding shall be entitled to be paid on a pro rata basis among themselves, an amount per Pre-Carve-Out A Share equal to the applicable Series A Original Issue Price, before and in preference to any distribution of any Assets to holders of the Ordinary Shares.

If the remaining Assets to be distributed to the holders of the Pre-Carve-Out A Shares shall be insufficient to permit the payment to such shareholders of their full amount required under this subsection 93.2(c), then after the payments required by Article ‎93.2(a) and 93.2(b), the remaining Assets shall be distributed ratably among the Pre-Carve-Out A shareholders in proportion to the respective amount such holders would otherwise be entitled to receive in respect of the Pre-Carve-Out A Shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

(d) <u>Carve-Out Plan</u>. Fourth, after payments in full of the amounts required by Articles ‎93.2(a), ‎93.2(b) and 93.2(c), the Carve-out (to the extent payable as per the provisions of the Management Agreement) shall be paid to the Founder in full (as such Carve-out plan has been and may be amended)(the "**Carve-out Payment**").

93.3. <u>Distribution to Ordinary Shares</u>. Sixth, after payment in full of the respective amounts required by Articles ‎93.2(a), ‎93.2(b), 93.2(c), 93.2(d), the remaining Assets shall be distributed as follows:

The remaining Assets shall be distributed among the holders of Ordinary Shares, the Preferred C Shareholders and the Preferred B-1 Shareholders, on a pari-passu basis, based on the number of shares held by each such holder.

93.4. For avoidance of doubt, any shareholder may at any time prior to any distribution of Assets due to a Liquidation Event convert any of its Preferred Shares into Ordinary Shares.

93.5. In the event of a Liquidation Event, if any portion of the consideration payable to the Shareholders is placed into escrow and/or is subject to a holdback and/or is payable only upon satisfaction of contingencies, other than consideration placed into escrow or retained as holdback to be available for satisfaction of indemnification in connection with such Liquidation Event (collectively, the "**Contingent Consideration Mechanism**"), and pro rata participation by the Preferred Shares in the Contingent Consideration Mechanism would result in the holders of Preferred Shares receiving less than the preference amount in accordance with this Article 93 at the closing of such Liquidation Event, then the agreement relating to the Liquidation Event (e.g. a merger, share purchase or similar agreement) shall provide that (a) the portion of such consideration that is not placed in escrow and not subject to a holdback or any contingencies, other than consideration placed into escrow or retained as holdback to be available for satisfaction of indemnification in connection with such Liquidation Event (the "**Initial Consideration**") shall be allocated among the Shareholders in accordance with this Article 93 as if the Initial Consideration were the only consideration payable in connection with such Liquidation Event and (b) any additional consideration which becomes payable to the Shareholders pursuant to the Contingent Consideration Mechanism shall be allocated among the Shareholders in accordance with this Article 93 after taking into account the previous payment of the Initial Consideration as part of the same transaction.

93.6. If the amount deemed paid or distributed under this Article 93, or any part thereof, is made in property other than in cash, then the value of such distribution shall be the fair market value of such property, determined as follows, unless otherwise agreed by the holders of a majority of the outstanding Preferred Shares:

(a) For securities not subject to restrictions on free marketability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If traded on a securities exchange or the NASDAQ Stock Market, the value shall be deemed to be the average of the closing prices of the securities on such exchange or market over the twenty (20) trading day period ending three (3) trading days prior to the date of distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If actively traded over-the-counter, the value shall be deemed to be the average of the closing bid prices over the twenty (20) trading day period ending three (3) trading days prior to the date of distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board.

(b) The valuation of securities subject to restrictions on free marketability shall be determined in good faith by the Board.

**<u>MISCELLANEOUS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94.  **<u>Minutes</u>** 

94.1. Minutes of each General Meeting and of each meeting of the Board shall be recorded in English (or in Hebrew with an English translation, if needs to be filed in Hebrew with any authority in Israel) and duly entered in books provided for that purpose. Such minutes shall set forth all resolutions adopted at the meeting and, with respect to minutes of a meeting of the Board, the names of the persons present at the meeting.

94.2. Any minutes as aforesaid, if purporting to be signed by the Chairperson of the meeting or by the Chairperson of the next succeeding meeting (or, in the case of Board meetings where there is only one Director on the Board, by such Director), shall constitute *prima facie* evidence of the matters recorded therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95.  **<u>Books of Account</u>** 

The Board shall cause accurate books of account to be kept in accordance with the provisions of the Companies Law and of any other applicable Law. Such books of account shall be kept at the registered office of the Company or at such other place or places as the Board may deem appropriate, and they shall always be open to inspection by all Directors. Any Shareholder shall be entitled to receive a copy of the audited financial statements of any fiscal year with the opinion of the Company's Auditor with respect to such financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;96.  **<u>Audit</u>** 

Without derogating from the requirements of any applicable Law, at least once in every fiscal year the accounts of the Company shall be audited and the accuracy of the profit and loss account and balance sheet certified by one or more duly qualified auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97.  **<u>Rights of Signature, Stamp and Seal</u>** 

97.1. The Board shall be entitled to authorize any person or persons (who need not be Directors) to act and sign on behalf of the Company, and the acts and signature of such person(s) on behalf of the Company shall bind the Company insofar as such person(s) acted and signed within the scope of his or their authority. The Board may determine separate signatory rights in respect of different matters of the Company and in respect of the amounts in respect of which such persons are authorized to sign.

97.2. The Board may provide for an official stamp and/or seal. If the Board provides for a seal, it shall also provide for the safe custody thereof. Such seal shall not be used except by the authority of the Board and in the presence of the person(s) authorized to sign on behalf of the Company, who shall sign every instrument to which such seal is affixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98.  **<u>Notices</u>** 

98.1. <u>General</u>

(a) Any written notice or other document may be served by the Company upon any Shareholder either personally or by sending it by prepaid registered mail (airmail if sent to a place outside Israel) addressed to such Shareholder at his address as described in the Shareholder Register or such other address as he may have designated in writing for the receipt of notices and other documents.

(b) Any written notice or other document may be served by any Shareholder upon the Company by tendering the same in person to the corporate secretary or the General Manager of the Company at the principal office of the Company or by sending it by prepaid registered mail (airmail if posted outside Israel) to the Company at its registered office.

(c) Any such notice or other document described in paragraphs ‎(a) or ‎(b) shall be deemed to have been served two (2) Business Days after it has been posted (seven (7) Business Days if sent to a place, or posted at a place, outside Israel), or when actually received by the addressee if sooner than two days or seven days, as the case may be, after it has been posted, or when actually tendered in person, to such Shareholder (or to the corporate secretary or the General Manager);

(d) Notwithstanding the foregoing, any notice may be sent by e-mail, and such notice shall be deemed to have been given at the first Business Day after such communication has been sent or when actually received by such Shareholder (or by the Company), whichever is earlier; *<u>provided</u>*, *<u>however</u>*, that notice sent in such manner from any Shareholder to the Company shall be confirmed by registered mail as aforesaid.

(e) If a notice is, in fact, received by the addressee, it shall be deemed to have been duly served, when received, notwithstanding that it was defectively addressed or failed, in some respect, to comply with the provisions of this Article ‎98.1.

(f) Unless otherwise provided in these Articles, the provisions of this Article ‎98.1 shall also apply to written notices permitted or required to be given by the Company to any Director or by any Director to the Company

(g) Notices and reports to Shareholders shall be delivered in English (or in Hebrew with an English translation, if needs to be filed with any authority in Israel).

98.2. <u>Notice to Joint Holders.</u> All notices to be given to the Shareholders shall, with respect to any share held by persons jointly, be given to whichever of such persons is named first in the Shareholder Register, and any notice so given shall be sufficient notice to the holders of such share.

98.3. <u>Shareholders without Address.</u> Any Shareholder whose address is not described in the Shareholder Register, and who shall not have designated in writing an address for the receipt of notices, shall not be entitled to receive any notice from the Company.

98.4. <u>Waiver of Notice.</u> Any Shareholder and any Director may waive his right to receive notices generally or during a specific time period and he may consent that a General Meeting of the Company or a meeting of the Board, as the case may be, shall be convened and held notwithstanding the fact that he did not receive a notice with respect thereto, or notwithstanding the fact that the notice was not received by him within the required time, in each case subject to the provisions of any Law prohibiting any such waiver or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.  **<u>Waivers</u>** 

99.1. <u>General</u>. With the written consent of the holders of a majority of the outstanding shares of any class, the obligations of the Company to, and the rights of, the holders of such class under any provision of these Articles may be waived (either generally or in a particular instance, either retroactively or prospectively and either for a specified period of time or indefinitely).

99.2. <u>Special Instances</u>

(a) Any such waiver that would similarly adversely affect more than one class of shares shall require only the consent of the holders of a majority of the outstanding shares of the classes similarly affected acting together as a single class on an as-converted basis.

(b) In the event any waiver, by its nature, does not affect all the holders of shares of a particular class in a substantially identical manner (relative to the respective stakes of the holders of such class within such class), each group within such class who is affected by such waiver in a manner which is not substantially identical as aforesaid shall be deemed to be a separate class for purposes of this Article ‎99.

99.3. Any waiver affected in accordance with this Article ‎99 shall be binding upon all of the holders of the applicable class or classes of shares, each transferee of such shares and each future holder of such class of shares.

99.4. Upon the effectuation of each such waiver, the Company shall promptly give written notice thereof to the holders of the shares of such class who have not previously consented thereto in writing.

\* \* \*

## Exhibit 3.2

**Exhibit 3.2**

THE COMPANIES LAW, 1999

A LIMITED LIABILITY COMPANY

**AMENDED AND RESTATED**

**ARTICLES OF ASSOCIATION**

**OF**

**SILENTIUM LTD.**

**Preliminary**

1. **<u>Definitions; Interpretation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In these Articles, the following terms (whether or not capitalized) shall bear the meanings set forth opposite to them respectively, unless inconsistent with the subject or context.

"Articles" shall mean these Articles of Association, as amended from time to time.

"Board of Directors" shall mean the Board of Directors of the Company.

"Chairperson" shall mean the Chairperson of the Board of Directors, or the Chairperson of the General Meeting, as the context provides;

"Company" shall mean Silentium Ltd.

"Companies Law" shall mean the Israeli Companies Law, 5759-1999 and the regulations promulgated thereunder. The Companies Law shall include reference to the Companies Ordinance (New Version), 5743-1983, of the State of Israel, to the extent in effect according to the provisions thereof.

"Director(s)" shall mean the member(s) of the Board of Directors holding office at any given time.

"External Director(s)" shall mean as defined in the Companies Law.

"General Meeting" shall mean an Annual General Meeting or Special General Meeting of the Shareholders, as the case may be.

"NIS" shall mean New Israeli Shekels.

"Office" shall mean the registered office of the Company at any given time.

"Office Holder" or "Officer" shall mean as defined in the Companies Law.

"RTP Law" shall mean the Israeli Restrictive Trade Practices Law, 5758-1988 and the regulations promulgated thereunder. <br>"SEC" shall mean the U.S. Securities and Exchange Commission.

"Securities Law" shall mean the Israeli Securities Law, 5728-1968 and the regulations promulgated thereunder.

"Shareholder(s)" shall mean the shareholder(s) of the Company, at any given time.

"in writing" or "writing" shall mean written, printed, photocopied, photographic, typed, sent via email, facsimile or produced by any visible substitute for writing, or partly one and partly another, and signed shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise defined in these Articles or required by the context, terms used herein shall have the meaning provided therefor under the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless the context shall otherwise require: words in the singular shall also include the plural, and vice versa; any pronoun shall include the corresponding masculine, feminine and neuter forms; the words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation"; the words "herein", "hereof" and "hereunder" and words of similar import refer to these Articles in its entirety and not to any part hereof; all references herein to Articles, Sections or clauses shall be deemed references to Articles, Sections or clauses of these Articles; any references to any agreement or other instrument or law, statute or regulation are to it as amended, supplemented or restated, from time to time (and, in the case of any law, to any successor provisions or re-enactment or modification thereof being in force at the time); any reference to "law" shall include any supranational, national, federal, state, local, or foreign statute or law and all rules and regulations promulgated thereunder (including, any rules, regulations or forms prescribed by any governmental authority or securities exchange commission or authority, if and to the extent applicable); any reference to a "day" or a number of "days" (without any explicit reference otherwise, such as to business days) shall be interpreted as a reference to a calendar day or number of calendar days; reference to month or year means according to the Gregorian calendar; any reference to a "company", "corporate body" or "entity" shall include a, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof, and reference to a "person" shall mean any of the foregoing or an individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The captions in these Articles are for convenience only and shall not be deemed a part hereof or affect the construction or interpretation of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The specific provisions of these Articles shall supersede the provisions of the Companies Law to the extent
permitted thereunder.

**Limited Liability**

2. The Company is a limited liability company and therefore each shareholder's obligations to the Company shall be limited to the payment of the nominal value of the shares held by such shareholder (and which have not been paid), subject to the provisions of the Companies Law.

**Public Company; Company's Objectives**

3. **<u>Public Company; Objectives</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a Public Company as such term is defined in and as long as it so qualifies under the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company's objectives are to carry on any business, and do any act, which is not prohibited by law.

4. **<u>Donations</u>**.

The Company may donate a reasonable amount of money (in cash or in kind, including the Company's securities) for any purpose that the Board of Directors finds appropriate.

**Share Capital**

5. **<u>Authorized Share Capital</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized share capital of the Company shall consist of 100,000,000 Ordinary Shares, no par value (the "**Shares**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Shares shall rank *pari passu* in all respects.

6. **<u>Increase of Authorized Share Capital</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may, from time to time, by a Shareholders' resolution, whether or not all the shares then authorized have been issued, and whether or not all the shares theretofore issued have been called up for payment, increase its authorized share capital by the creation of new shares. Any such increase shall be in such amount and shall be divided into shares of such nominal amounts, and such shares shall confer such rights and preferences, and shall be subject to such restrictions, as such resolution shall provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except to the extent otherwise provided in such resolution, any new shares included in the authorized share capital increased as aforesaid shall be subject to all the provisions of these Articles which are applicable to shares of such class included in the existing share capital without regard to class (and, if such new shares are of the same class as a class of shares included in the existing share capital, to all of the provisions which are applicable to shares of such class included in the existing share capital).

7. **<u>Special or Class Rights; Modification of Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time the share capital of the Company is divided into different classes of shares, the rights attached to any class, unless otherwise provided by the Companies Law or these Articles, may be modified or cancelled by the Company by a resolution of the General Meeting of the holders of all shares as one class, without any required separate resolution of any class of shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of these Articles relating to General Meetings shall, mutatis mutandis, apply to any separate General Meeting of the holders of the shares of a particular class, it being clarified that the requisite quorum at any such separate General Meeting shall be two or more shareholders present in person or by proxy and holding not less than twenty-five percent (25%) of the issued shares of such class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise provided by these Articles, an increase in the authorized share capital, the creation of a new class of shares, an increase in the authorized share capital of a class of shares, or the issuance of additional shares thereof out of the authorized and unissued share capital, shall not be deemed, for purposes of this Article 7, to modify or derogate or cancel the rights attached to previously issued shares of such class or of any other class.

8. **<u>Consolidation, Division, Cancellation and Reduction of Share Capital</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may, from time to time, by or pursuant to an authorization of a Shareholders' resolution, and subject to applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) consolidate all or any part of its issued or unissued authorized share capital into shares of a per share nominal value which is larger, equal to or smaller than the per share nominal value of its existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) divide or sub-divide its shares (issued or unissued) or any of them, into shares of smaller or the same nominal value (subject, however, to the provisions of the Companies Law), and the resolution whereby any share is divided may determine that, as among the holders of the shares resulting from such subdivision, one or more of the shares may, in contrast to others, have any such preferred or deferred rights or rights of redemption or other special rights, or be subject to any such restrictions, as the Company may attach to unissued or new shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) cancel any shares which, at the date of the adoption of such resolution, have not been issued (or agreed to be issued) to any person, and reduce the amount of its share capital by the amount of the shares so canceled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reduce its share capital in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any consolidation of issued shares and with respect to any other action which may result in fractional shares, the Board of Directors may settle any difficulty which may arise with regard thereto, as it deems fit, and, in connection with any such consolidation or other action which could result in fractional shares, may, without limiting its aforesaid power:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determine, as to the holder of shares so consolidated, which issued shares shall be consolidated into a share of a larger, equal or smaller nominal value per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) determine that fractions of shares that do not entitle their owners to a whole share, will be sold by the Company and that the consideration for the sale be paid to the beneficiaries, on terms the Board may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) issue, in contemplation of or subsequent to such consolidation or other action, shares sufficient to preclude or remove fractional share holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) redeem such shares or fractional shares sufficient to preclude or remove fractional share holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) round up, round down or round to the nearest whole number, any fractional shares resulting from the consolidation or from any other action which may result in fractional shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) determine the manner for paying the amounts to be paid for shares allotted in accordance with subsection (v) above, including on account of bonus shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) cause the transfer of fractional shares by certain shareholders of the Company to other shareholders thereof so as to most expediently preclude or remove any fractional shareholdings, and cause the transferees of such fractional shares to pay the transferors thereof the fair value thereof, and the Board of Directors is hereby authorized to act in connection with such transfer, as agent for the transferors and transferees of any such fractional shares, with full power of substitution, for the purposes of implementing the provisions of this sub-Article 8(b)(vii).

9. **<u>Issuance of Share Certificates, Replacement of Lost Certificates</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Board of Directors determines that all shares shall be certificated or, if the Board of Directors does not so determine, to the extent that any shareholder requests a share certificate, share certificates shall be issued under the corporate seal of the Company or its written, typed or stamped name and may bear the signature of one Director, the Company's CEO or of any other person or persons authorized therefor by the Board of Directors. Signatures may be affixed in any mechanical or electronic form, as the Board of Directors may prescribe. For the avoidance of doubt, any transfer agent designated by the Company may issue share certificates on behalf of the Company even if the signatories on the share certificate no longer serve in the relevant capacities at the time of such issuance. For the avoidance of doubt, unless otherwise determined by the Board of Directors, any transfer agent designated by the Company may issue share certificates on behalf of the Company even if the signatories on the share certificate no longer serve in the relevant capacities at the time of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Article 9(a), each Shareholder shall be entitled to one numbered certificate for all the shares of any class registered in his name. Each certificate may also specify the amount paid up thereon. The Company (as determined by an officer of the Company to be designated by the Chief Executive Officer) shall not refuse a request by a Shareholder to obtain several certificates in place of one certificate, unless such request is, in the opinion of such officer, unreasonable. Where a Shareholder has sold or transferred some of such Shareholder's shares, such Shareholder shall be entitled to receive a certificate in respect of such Shareholder's remaining shares, provided that the previous certificate is delivered to the Company before the issuance of a new certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A share certificate registered in the names of two or more persons shall be delivered to the person first named in the Register of Shareholders in respect of such co-ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A share certificate which has been defaced, lost or destroyed, may be replaced, and the Company shall issue a new certificate to replace such defaced, lost or destroyed certificate upon payment of such fee, and upon the furnishing of such evidence of ownership and such indemnity, as the Board of Directors in its discretion deems fit.

10. **<u>Registered Holder</u>**.

Except as otherwise provided in these Articles or the Companies Law, the Company shall be entitled to treat the registered holder of each share as the absolute owner thereof, and accordingly, shall not, except as ordered by a court of competent jurisdiction, or as required by the Companies Law, be obligated to recognize any equitable or other claim to, or interest in, such share on the part of any other person.

11. **<u>Issuance and Repurchase of Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The unissued shares from time to time shall be under the control of the Board of Directors (and to the full extent permitted by law any Committee thereof), which shall have the power to issue or otherwise dispose of shares and of securities convertible or exercisable into or other rights to acquire from the Company to such persons, on such terms and conditions (including inter alia terms relating to calls set forth in Article 13(f) hereof), and either at par or at a premium, or subject to the provisions of the Companies Law, at a discount and/or with payment of commission, and at such times, as the Board of Directors (or the Committee, as the case may be) deems fit, and the power to give to any person the option to acquire from the Company any shares or securities convertible or exercisable into or other rights to acquire from the Company, either at par or at a premium, or, subject as aforesaid, at a discount and/or with payment of commission, during such time and for such consideration as the Board of Directors (or the Committee, as the case may be) deems fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may at any time and from time to time, subject to the Companies Law, repurchase or finance the purchase of any shares or other securities issued by the Company, in such manner and under such terms as the Board of Directors shall determine, whether from any one or more shareholders. Such purchase shall not be deemed as payment of dividends and no shareholder will have the right to require the Company to purchase his shares or offer to purchase shares from any other shareholders.

12. **<u>Payment in Installment</u>**.

If pursuant to the terms of issuance of any share, all or any portion of the price thereof shall be payable in installments, every such installment shall be paid to the Company on the due date thereof by the then registered holder(s) of the share or the person(s) then entitled thereto.

13. **<u>Calls on Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may, from time to time, as it, in its discretion, deems fit, make calls for payment upon shareholders in respect of any sum (including premium) which has not been paid up in respect of shares held by such shareholders and which is not, pursuant to the terms of issuance of such shares or otherwise, payable at a fixed time, and each shareholder shall pay the amount of every call so made upon him (and of each installment thereof if the same is payable in installments), to the person(s) and at the time(s) and place(s) designated by the Board of Directors, as any such times may be thereafter extended and/or such person(s) or place(s) changed. Unless otherwise stipulated in the resolution of the Board of Directors (and in the notice hereafter referred to), each payment in response to a call shall be deemed to constitute a pro rata payment on account of all the shares in respect of which such call was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notice of any call for payment by a shareholder shall be given in writing to such shareholder not less than fourteen (14) days prior to the time of payment fixed in such notice, and shall specify the time and place of payment, and the person to whom such payment is to be made. Prior to the time for any such payment fixed in a notice of a call given to a shareholder, the Board of Directors may in its absolute discretion, by notice in writing to such shareholder, revoke such call in whole or in part, extend the time fixed for payment thereof, or designate a different place of payment or person to whom payment is to be made. In the event of a call payable in installments, only one notice thereof need be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If pursuant to the terms of issuance of a share or otherwise, an amount is made payable at a fixed time (whether on account of such nominal value of such share or by way of premium), such amount shall be payable at such time as if it were payable by virtue of a call made by the Board of Directors and for which notice was given in accordance with paragraphs (a) and (b) of this Article 13, and the provision of these Articles with regard to calls (and the non-payment thereof) shall be applicable to such amount or such installment (and the non-payment thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Joint holders of a share shall be jointly and severally liable to pay all calls for payment in respect of such share and all interest payable thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any amount called for payment which is not paid when due shall bear interest from the date fixed for payment until actual payment thereof, at such rate (not exceeding the then prevailing debitory rate charged by leading commercial banks in Israel), and payable at such time(s) as the Board of Directors may prescribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) A shareholder shall not be entitled to his rights as shareholder, including the right to dividends, unless such shareholder has fully paid all the notices of call delivered to him, or which according to these Articles are deemed to have been delivered to him, together with interest, linkage and expenses, if any, unless otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon the issuance of shares, the Board of Directors may provide for differences among the holders of such shares as to the amounts and times for payment of calls for payment in respect of such shares.

14. **<u>Prepayment</u>**.

With the approval of the Board of Directors, any shareholder may pay to the Company any amount not yet payable in respect of such shareholder's shares, and the Board of Directors may approve the payment by the Company of interest on any such amount until the same would be payable if it had not been paid in advance, at such rate and time(s) as may be approved by the Board of Directors. The Board of Directors may at any time cause the Company to repay all or any part of the money so advanced, without premium or penalty. Nothing in this Article 14 shall derogate from the right of the Board of Directors to make any call for payment before or after receipt by the Company of any such advance.

15. **<u>Forfeiture and Surrender</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any shareholder fails to pay an amount payable by virtue of a call, installment or interest thereon as provided for in accordance herewith, on or before the day fixed for payment of the same, the Board of Directors, may at any time after the day fixed for such payment, so long as such amount (or any portion thereof) or interest thereon (or any portion thereof) remains unpaid, forfeit all or any of the shares in respect of which such payment was called for. All expenses incurred by the Company in attempting to collect any such amount or interest thereon, including, without limitation, attorneys' fees and costs of legal proceedings, shall be added to, and shall, for all purposes (including the accrual of interest thereon) constitute a part of, the amount payable to the Company in respect of such call.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the adoption of a resolution as to the forfeiture of a shareholder's share, the Board of Directors shall cause notice thereof to be given to such shareholder, which notice shall state that, in the event of the failure to pay the entire amount so payable by a date specified in the notice (which date shall be not less than fourteen (14) days after the date such notice is given and which may be extended by the Board of Directors), such shares shall be ipso facto forfeited, provided, however, that, prior to such date, the Board of Directors may cancel such resolution of forfeiture, but no such cancellation shall stop the Board of Directors from adopting a further resolution of forfeiture in respect of the non-payment of the same amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without derogating from Articles 51 and 55 hereof, whenever shares are forfeited as herein provided, all dividends, if any, theretofore declared in respect thereof and not actually paid shall be deemed to have been forfeited at the same time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company, by resolution of the Board of Directors, may accept the voluntary surrender of any share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any share forfeited or surrendered as provided herein, shall become the property of the Company as a dormant share, and the same, subject to the provisions of these Articles, may be sold, re-issued or otherwise disposed of as the Board of Directors deems fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any person whose shares have been forfeited or surrendered shall cease to be a shareholder in respect of the forfeited or surrendered shares, but shall, notwithstanding, be liable to pay, and shall forthwith pay, to the Company, all calls, interest and expenses owing upon or in respect of such shares at the time of forfeiture or surrender, together with interest thereon from the time of forfeiture or surrender until actual payment, at the rate prescribed in Article 13(e) above, and the Board of Directors, in its discretion, may, but shall not be obligated to, enforce or collect the payment of such amounts, or any part thereof, as it shall deem fit. In the event of such forfeiture or surrender, the Company, by resolution of the Board of Directors, may accelerate the date(s) of payment of any or all amounts then owing to the Company by the person in question (but not yet due) in respect of all shares owned by such shareholder, solely or jointly with another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Board of Directors may at any time, before any share so forfeited or surrendered shall have been sold, re-issued or otherwise disposed of, nullify the forfeiture or surrender on such conditions as it deems fit, but no such nullification shall stop the Board of Directors from re-exercising its powers of forfeiture pursuant to this Article 15.

16. **<u>Lien</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except to the extent the same may be waived or subordinated in writing, the Company shall have a first and paramount lien upon all the shares registered in the name of each shareholder (without regard to any equitable or other claim or interest in such shares on the part of any other person), and upon the proceeds of the sale thereof, for his debts, liabilities and engagements to the Company arising from any amount payable by such shareholder in respect of any unpaid or partly paid share, whether or not such debt, liability or engagement has matured. Such lien shall extend to all dividends from time to time declared or paid in respect of such share. Unless otherwise provided, the registration by the Company of a transfer of shares shall be deemed to be a waiver on the part of the Company of the lien (if any) existing on such shares immediately prior to such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors may cause the Company to sell a share subject to such a lien when the debt, liability or engagement giving rise to such lien has matured, in such manner as the Board of Directors deems fit, but no such sale shall be made unless such debt, liability or engagement has not been satisfied within fourteen (14) days after written notice of the intention to sell shall have been served on such shareholder, his executors or administrators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The net proceeds of any such sale, after payment of the costs and expenses thereof or ancillary thereto, shall be applied in or toward satisfaction of the debts, liabilities or engagements of such shareholder in respect of such share (whether or not the same have matured), and the remaining proceeds (if any) shall be paid to the shareholder, his executors, administrators or assigns.

17. **<u>Sale After Forfeiture of Surrender or in Enforcement of Lien</u>**.

Upon any sale of a share after forfeiture or surrender or for enforcing a lien, the Board of Directors may appoint any person to execute an instrument of transfer of the share so sold and cause the purchaser's name to be entered in the Register of Shareholders in respect of such share. The purchaser shall be registered as the shareholder and shall not be bound to see to the regularity of the sale proceedings, or to the application of the proceeds of such sale, and after his name has been entered in the Register of Shareholders in respect of such share, the validity of the sale shall not be impeached by any person, and person, and the remedy of any person aggrieved by the sale shall be in damages only and against the Company exclusively.

18. **<u>Redeemable Shares</u>**.

The Company may, subject to applicable law, issue redeemable shares or other securities and redeem the same upon terms and conditions to be set forth in a written agreement between the Company and the holder of such shares or in their terms of issuance.

**Transfer of Shares**

19. **<u>Registration of Transfer</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No transfer of shares shall be registered unless a proper writing or instrument of transfer (in any customary form or any other form satisfactory to the Board of Directors or an authorized officer) has been submitted to the Company (or its transfer agent), together with any share certificate(s) and such other evidence of title as the Board of Directors or an authorized officer may reasonably require. Until the transferee has been registered in the Register of Shareholders in respect of the shares so transferred, the Company may continue to regard the transferor as the owner thereof. The Board of Directors, may, from time to time, prescribe a fee for the registration of a transfer and may approve other methods of recognizing the transfer of shares in order to facilitate the trading of the Company's shares on any applicable stock exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary herein, shares registered in the name of The Depository Trust Company or its nominee shall be transferrable in accordance with the policies and procedures of The Depository Trust Company.

20. **<u>Suspension of Registration</u>**.

The Board of Directors may, in its discretion to the extent it deems necessary, close the Register of Shareholders of registration of transfers of shares for a period determined by the Board of Directors, and no registrations of transfers of shares shall be made by the Company during any such period during which the Register of Shareholders is so closed.

**Transmission of Shares**

21. **<u>Decedents' Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of a share registered in the names of two or more holders, the Company may recognize the survivor(s) as the sole owner(s) thereof unless and until the provisions of Article 21(b) have been effectively invoked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any person becoming entitled to a share in consequence of the death of any person, upon producing evidence of the grant of probate or letters of administration or declaration of succession (or such other evidence as the Board of Directors or an authorized officer of the Company may reasonably deem sufficient), shall be registered as a shareholder in respect of such share, or may, subject to the provisions as to transfer contained herein, transfer such share.

22. **<u>Receivers and Liquidators</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may recognize any receiver, liquidator or similar official appointed to wind-up, dissolve or otherwise liquidate a corporate shareholder, and a trustee, manager, receiver, liquidator or similar official appointed in bankruptcy or in connection with the reorganization of, or similar proceeding with respect to a shareholder or its properties, as being entitled to the shares registered in the name of such shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such receiver, liquidator or similar official appointed to wind-up, dissolve or otherwise liquidate a corporate shareholder and such trustee, manager, receiver, liquidator or similar official appointed in bankruptcy or in connection with the reorganization of, or similar proceedings with respect to a shareholder or its properties, upon producing such evidence as the Board of Directors (or an officer of the Company to be designated by the Chief Executive Officer) may deem sufficient as to his authority to act in such capacity or under this Article, shall with the consent of the Board of Directors (which the Board of Directors may grant or refuse in its absolute discretion), be registered as a shareholder in respect of such shares, or may, subject to the regulations as to transfer herein contained, transfer such shares.

**General Meetings**

23. **<u>General Meetings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An annual General Meeting ("**Annual General Meeting**") shall be held at such time and at such place, either within or out of the State of Israel, as may be determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All General Meetings other than Annual General Meetings shall be called "**Special General Meetings**".

24. **<u>Record Date for General Meeting</u>**.

Notwithstanding any provision of these Articles to the contrary, and to allow the Company to determine the shareholders entitled to notice of or to vote at any General Meeting or any adjournment thereof, or entitled to receive payment of any dividend or other distribution or grant of any rights, or entitled to exercise any rights in respect of or to take or be the subject of any other action, the Board of Directors may fix a record date, which shall not be more than the maximum period and not less than the minimum period permitted by law. A determination of shareholders of record entitled to notice of or to vote at a meeting shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

25. **<u>Shareholder Proposal Request</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Shareholder or Shareholders of the Company that have the right under the Companies Law and under applicable stock exchange rules and regulations to propose a matter to be included in the agenda of a General Meeting of the Company (the "**Proposing Shareholder(s)**") may request, subject to the Companies Law, that the Board of Directors include a matter on the agenda of a General Meeting to be held in the future, provided that the Board determines that the matter is appropriate to be considered in a General Meeting (a "**Proposal Request**"). In order for the Board of Directors to consider a Proposal Request and whether to include the matter stated therein in the agenda of a General Meeting, notice of the Proposal Request must be timely delivered in accordance with applicable laws and these Articles, and the Proposal Request must comply with the requirement of these Articles (including this Article 25) and any applicable law and stock exchange rules and regulations. The Proposal Request must be in English and in writing, signed by all of the Proposing Shareholder(s) making such request, delivered, either in person or by certified mail, postage prepaid, and received by the Secretary (or, in the absence thereof by the Chief Executive Officer of the Company). To be considered timely, a Proposal Request must be received within the time periods prescribed by applicable law. The announcement of an adjournment or postponement of a General Meeting shall not commence a new time period (or extend any time period) for the delivery of a Proposal Request as described above. In addition to any information required to be included in accordance with applicable law, the Proposal Request must include the following: (i) the name, address, telephone number, fax number and email address of the Proposing Shareholder (or each Proposing Shareholder, as the case may be) and, if an entity, the name(s) of the person(s) that controls or manages such entity; (ii) the number of Shares held by the Proposing Shareholder(s), directly or indirectly (and, if any of such Shares are held indirectly, an explanation of how they are held and by whom), which shall be in such number no less than as is required to qualify as a Proposing Shareholder, accompanied by evidence satisfactory to the Company of the record holding of such Shares by the Proposing Shareholder(s) as of the date of the Proposal Request, and a representation that the Proposing Shareholder(s) intends to appear in person or by proxy at the meeting; (iii) the matter requested to be included on the agenda of a General Meeting, all information related to such matter, the reason that such matter is proposed to be brought before the General Meeting, the complete text of the resolution that the Proposing Shareholder proposes to be voted upon at the General Meeting and, if the Proposing Shareholder wishes to have a position statement in support of the Proposal Request, a copy of such position statement that complies with the requirement of any applicable law (if any), (iv) a description of all arrangements or understandings between the Proposing Shareholders and any other Person(s) (naming such Person or Persons) in connection with the matter that is requested to be included on the agenda and a declaration signed by all Proposing Shareholder(s) of whether any of them has a personal interest in the matter and, if so, a description in reasonable detail of such personal interest; (v) a description of all Derivative Transactions (as defined below) by each Proposing Shareholder(s) during the previous twelve (12) month period, including the date of the transactions and the class, series and number of securities involved in, and the material economic terms of, such Derivative Transactions; (vi) if the proposal of the Proposing Shareholder is to nominate a candidate for election to the Board of Directors (i.e., at an Annual General Meeting), a questionnaire and declaration, in form and substance reasonably requested by the Company, signed by the nominee with respect to matters relating to, among others, his or her identity, address, background, credentials, expertise etc., and his or her consent to be named as a candidate and, if elected, to serve on the Board of Directors; and (vii) a declaration that all of the information that is required under the Companies Law and any other applicable law and stock exchange rules and regulations to be provided to the Company in connection with such matter, if any, has been provided to the Company. The Board of Directors, may, in its discretion, to the extent it deems necessary, request that the Proposing Shareholder(s) provide additional information necessary so as to include a matter in the agenda of a General Meeting, as the Board of Directors may reasonably require.

A "**Derivative Transaction**" means any agreement, arrangement, interest or understanding entered into by, or on behalf or for the benefit of, any Proposing Shareholder or any of its affiliates or associates, whether of record or beneficial: (1) the value of which is derived in whole or in part from the value of any class or series of shares or other securities of the Company, (2) which otherwise provides any direct or indirect opportunity to gain or share in any gain derived from a change in the value of securities of the Company, (3) the effect or intent of which is to mitigate loss, manage risk or benefit of security value or price changes, or (4) which provides the right to vote or increase or decrease the voting power of, such Proposing Shareholder, or any of its affiliates or associates, with respect to any shares or other securities of the Company, which agreement, arrangement, interest or understanding may include, without limitation, any option, warrant, debt position, note, bond, convertible security, swap, stock appreciation right, short position, profit interest, hedge, right to dividends, voting agreement, performance-related fee or arrangement to borrow or lend shares (whether or not subject to payment, settlement, exercise or conversion in any such class or series), and any proportionate interest of such Proposing Shareholder in the securities of the Company held by any general or limited partnership, or any limited liability company, of which such Proposing Shareholder is, directly or indirectly, a general partner or managing member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The information required pursuant to this Article shall be updated as of (i) the record date of the General Meeting, (ii) five business days before the General Meeting, and (iii) as of the General Meeting, and any adjournment or postponement thereof. The Company shall be entitled to publish information provided by a Proposing Shareholder pursuant to this Article 25, and the Proposing Shareholder shall be responsible for the accuracy thereof. In addition, a Proposal Requests must otherwise comply with applicable law and these Articles and the Company may disregard Proposal Requests that are not timely and validly submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of this Article 25 shall apply, *mutatis mutandis*, on any matter to be included on the agenda of a Special General Meeting which is convened pursuant to a request of a Shareholder duly delivered to the Company in accordance with the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to applicable law, the Board shall determine the agenda of any General Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) An amendment to Article 25 shall require a majority of 66% of the voting power represented at the General Meeting in person or by proxy and voting thereon, disregarding abstentions from the count of the voting power present and voting.

26. **<u>Notice of General Meetings; Omission to Give Notice</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is not required to give notice of a General Meeting, subject to any mandatory provision of the Companies Law, and any other requirements applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The accidental omission to give notice of a General Meeting to any Shareholder, or the non-receipt of notice sent to such Shareholder, shall not invalidate the proceedings at such meeting or any resolution adopted thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Shareholder present, in person or by proxy, at any time during a General Meeting shall be entitled to seek the cancellation or invalidation of any proceedings or resolutions adopted at such General Meeting on account of any defect in the notice of such meeting relating to the time or the place thereof, or any item acted upon at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company may add additional places for Shareholders to review the full text of the proposed resolutions to be adopted at a General Meeting, including an internet site.

**Proceedings at General Meetings**

27. **<u>Quorum</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No business shall be transacted at a General Meeting, or at any adjournment thereof, unless the quorum required under these Articles for such General Meeting or such adjourned meeting, as the case may be, is present when the meeting proceeds to business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the absence of contrary provisions in these Articles, two or more shareholders (not in default in payment of any sum referred to in Article 13 hereof), present in person or by proxy and holding shares conferring in the aggregate twenty-five percent (25%) of the voting power of the Company, shall constitute a quorum of General Meetings. For this purpose, abstaining shareholders shall be deemed present at the General Meeting. A proxy may be deemed to be two (2) or more Shareholders pursuant to the number of Shareholders represented by the proxy holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If within half an hour from the time appointed for the meeting a quorum is not present, then without any further notice the meeting shall be adjourned either (i) to the same day in the next week, at the same time and place, (ii) to such day and at such time and place as indicated in the notice to such meeting, or (iii) to such day and at such time and place as the Chairperson of the General Meeting shall determine (which may be earlier or later than the date pursuant to clause (i) above). No business shall be transacted at any adjourned meeting except business which might lawfully have been transacted at the meeting as originally called. At such adjourned meeting, one or more shareholders, present in person or by proxy, shall constitute a quorum; provided however, that if the original meeting was convened upon requisition under Section 63 of the Companies Law, the quorum of the adjourned meeting shall be as set forth in Article 27(b).

28. **<u>Chairperson of General Meeting</u>**.

The Chairperson of the Board of Directors shall preside as Chairperson of every General Meeting of the Company. If at any meeting the Chairperson is not present within fifteen (15) minutes after the time fixed for holding the meeting or is unwilling or unable to act as Chairperson, any of the following may preside as Chairperson of the meeting (and in the following order): Director, Chief Executive Officer, Chief Financial Officer, Secretary or any person designated by any of the foregoing. If at any such meeting none of the foregoing persons is present or all are unwilling or unable to act as Chairperson, the Shareholders present (in person or by proxy) shall choose a Shareholder or its proxy present at the meeting to be Chairperson. The office of Chairperson shall not, by itself, entitle the holder thereof to vote at any General Meeting nor shall it entitle such holder to a second or casting vote (without derogating, however, from the rights of such Chairperson to vote as a shareholder or proxy of a shareholder if, in fact, he is also a shareholder or such proxy).

29. **<u>Adoption of Resolutions at General Meetings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as required by the Companies Law or these Articles, including, without limitation, Article 39 below, a resolution of the Shareholders shall be adopted if approved by the holders of a simple majority of the voting power represented at the General Meeting in person or by proxy and voting thereon, as one class, and disregarding abstentions from the count of the voting power present and voting. Without limiting the generality of the foregoing, a resolution with respect to a matter or action for which the Companies Law prescribes a higher majority or pursuant to which a provision requiring a higher majority would have been deemed to have been incorporated into these Articles, but resolutions with respect to which the Companies Law allows the Company's Articles to provide otherwise, shall be adopted by a simple majority of the voting power represented at the General Meeting in person or by proxy and voting thereon, as one class, and disregarding abstentions from the count of the voting power present and voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Every question submitted to a General Meeting shall be decided by a show of hands, but the Chairperson of the General Meeting may determine that a resolution shall be decided by a written ballot. A written ballot may be implemented before the proposed resolution is voted upon or immediately after the declaration by the Chairperson of the results of the vote by a show of hands. If a vote by written ballot is taken after such declaration, the results of the vote by a show of hands shall be of no effect, and the proposed resolution shall be decided by such written ballot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A declaration by the Chairperson of the General Meeting that a resolution has been carried unanimously, or carried by a particular majority, or rejected, and an entry to that effect in the minute book of the Company, shall be prima facie evidence of the fact without proof of the number or proportion of the votes recorded in favor of or against such resolution.

30. **<u>Power to Adjourn</u>**.

A General Meeting, the consideration of any matter on its agenda or the resolution on any matter on its agenda, may be postponed or adjourned, from time to time and from place to place: (i) by the Chairperson of a General Meeting at which a quorum is present (and he shall if so directed by the meeting, with the consent of the holders of a majority of the voting power represented in person or by proxy and voting on the question of adjournment), but no business shall be transacted at any such adjourned meeting except business which might lawfully have been transacted at the meeting as originally called, or a matter on its agenda with respect to which no resolution was adopted at the meeting originally called; or (ii) by the Board (whether prior to or at the General Meeting).

31. **<u>Voting Power</u>**.

Subject to the provisions of Article 32(a) and to any provision hereof conferring special rights as to voting, or restricting the right to vote, every Shareholder shall have one vote for each share held by him of record, on every resolution, without regard to whether the vote thereon is conducted by a show of hands, by written ballot or by any other means.

32. **<u>Voting Rights.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No shareholder shall be entitled to vote at any General Meeting (or be counted as a part of the quorum thereat), unless all calls then payable by him in respect of his shares in the Company have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A company or other corporate body being a Shareholder of the Company may duly authorize any person to be its representative at any meeting of the Company or to execute or deliver a proxy on its behalf. Any person so authorized shall be entitled to exercise on behalf of such Shareholder all the power which the Shareholder could have exercised if it were an individual. Upon the request of the Chairperson of the General Meeting, written evidence of such authorization (in form acceptable to the Chairperson) shall be delivered to him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Shareholder entitled to vote may vote either in person or by proxy (who need not be Shareholder of the Company), or, if the Shareholder is a company or other corporate body, by representative authorized pursuant to Article 32(b) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If two or more persons are registered as joint holders of any share, the vote of the senior who tenders a vote, in person or by proxy, shall be accepted to the exclusion of the vote(s) of the other joint holder(s). For the purpose of this Article 32(d), seniority shall be determined by the order of registration of the joint holders in the Register of Shareholder.

**Proxies**

33. **<u>Instrument of Appointment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An instrument appointing a proxy shall be in writing and shall be substantially in the following form:

---

| | | | |
|:---|:---|:---|:---|
| "I | | of | |
|  | *(Name of Shareholder)* |  | *(Address of Shareholder)* |
| Being a shareholder of BONUS BIOGROUP LTD. hereby appoints | Being a shareholder of BONUS BIOGROUP LTD. hereby appoints | Being a shareholder of BONUS BIOGROUP LTD. hereby appoints | Being a shareholder of BONUS BIOGROUP LTD. hereby appoints |
|  | | of | |
|  | *(Name of Proxy)* |  | *(Address of Proxy)* |
| as my proxy to vote for me and on my behalf at the General Meeting of the Company to be held on the ___ day of _______, _______ and at any adjournment(s) thereof. | as my proxy to vote for me and on my behalf at the General Meeting of the Company to be held on the ___ day of _______, _______ and at any adjournment(s) thereof. | as my proxy to vote for me and on my behalf at the General Meeting of the Company to be held on the ___ day of _______, _______ and at any adjournment(s) thereof. | as my proxy to vote for me and on my behalf at the General Meeting of the Company to be held on the ___ day of _______, _______ and at any adjournment(s) thereof. |
| Signed this ____ day of ___________, ______. | Signed this ____ day of ___________, ______. | Signed this ____ day of ___________, ______. | Signed this ____ day of ___________, ______. |
| (Signature of Appointor)" | (Signature of Appointor)" | (Signature of Appointor)" | (Signature of Appointor)" |

---

or in any such form as may be approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the Companies Law, the original instrument appointing a proxy or a copy thereof (and the power of attorney or other authority, if any, under which such instrument has been signed) shall be delivered to the Company (at its Office, at its principal place of business, or at the offices of its registrar or transfer agent, or at such place as notice of the meeting may specify) not less than forty eight (48) hours (or such shorter period as the notice shall specify) before the time fixed for such meeting. Notwithstanding the above, the Chairperson shall have the right to waive the time requirement provided above with respect to all instruments of proxies and to accept any and all instruments of proxy until the beginning of a General Meeting. A document appointing a proxy shall be valid for every adjourned meeting of the General Meeting to which the document relates.

34. **<u>Effect of Death of Appointor of Transfer of Share and or Revocation of Appointment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A vote cast in accordance with an instrument appointing a proxy shall be valid notwithstanding the prior death or bankruptcy of the appointing shareholder (or of his attorney-in-fact, if any, who signed such instrument), or the transfer of the share in respect of which the vote is cast, unless written notice of such matters shall have been received by the Company or by the Chairperson of such meeting prior to such vote being cast.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the Companies Law, an instrument appointing a proxy shall be deemed revoked (i) upon receipt by the Company or the Chairperson, subsequent to receipt by the Company of such instrument, of written notice signed by the person signing such instrument or by the Shareholder appointing such proxy canceling the appointment thereunder (or the authority pursuant to which such instrument was signed) or of an instrument appointing a different proxy (and such other documents, if any, required under Article 33(b) for such new appointment), provided such notice of cancellation or instrument appointing a different proxy were so received at the place and within the time for delivery of the instrument revoked thereby as referred to in Article 33(b) hereof, or (ii) if the appointing shareholder is present in person at the meeting for which such instrument of proxy was delivered, upon receipt by the Chairperson of such meeting of written notice from such shareholder of the revocation of such appointment, or if and when such shareholder votes at such meeting. A vote cast in accordance with an instrument appointing a proxy shall be valid notwithstanding the revocation or purported cancellation of the appointment, or the presence in person or vote of the appointing shareholder at a meeting for which it was rendered, unless such instrument of appointment was deemed revoked in accordance with the foregoing provisions of this Article 34(b) at or prior to the time such vote was cast.

**Board of Directors**

35. **<u>Powers of Board of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may exercise all such powers and do all such acts and things as the Board of Directors is authorized by law or as the Company is authorized to exercise and do and are not hereby or by law required to be exercised or done by the General Meeting. The authority conferred on the Board of Directors by this Article 35 shall be subject to the provisions of the Companies Law, these Articles and any regulation or resolution consistent with these Articles adopted from time to time at a General Meeting, provided, however, that no such regulation or resolution shall invalidate any prior act done by or pursuant to a decision of the Board of Directors which would have been valid if such regulation or resolution had not been adopted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the generality of the foregoing, the Board of Directors may, from time to time, set aside any amount(s) out of the profits of the Company as a reserve or reserves for any purpose(s) which the Board of Directors, in its absolute discretion, shall deem fit, including without limitation, capitalization and distribution of bonus shares, and may invest any sum so set aside in any manner and from time to time deal with and vary such investments and dispose of all or any part thereof, and employ any such reserve or any part thereof in the business of the Company without being bound to keep the same separate from other assets of the Company, and may subdivide or re-designate any reserve or cancel the same or apply the funds therein for another purpose, all as the Board of Directors may from time to time think fit.

36. **<u>Exercise of Powers of Board of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A meeting of the Board of Directors at which a quorum is present shall be competent to exercise all the authorities, powers and discretion vested in or exercisable by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A resolution proposed at any meeting of the Board of Directors shall be deemed adopted if approved by a majority of the Directors present, entitled to vote and voting thereon when such resolution is put to a vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors may adopt resolutions, without convening a meeting of the Board of Directors, in writing or in any other manner permitted by the Companies Law.

37. **<u>Delegation of Powers</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may, subject to the provisions of the Companies Law, delegate any or all of its powers to committees (in these Articles referred to as a "**Committee of the Board of Directors**", or "**Committee**"), each consisting of one or more persons (who may or may not be Directors), and it may from time to time revoke such delegation or alter the composition of any such Committee. No regulation imposed by the Board of Directors on any Committee and no resolution of the Board of Directors shall invalidate any prior act done pursuant to a resolution by the Committee which would have been valid if such regulation or resolution of the Board had not been adopted. The meeting and proceedings of any such Committee of the Board of Directors shall, *mutatis mutandis*, be governed by the provisions herein contained for regulating the meetings of the Board of Directors, so far as not superseded by any regulations adopted by the Board of Directors or by the Companies Law. Unless otherwise expressly prohibited by the Board of Directors in delegating powers to a Committee of the Board of Directors, such Committee shall be empowered to further delegate such powers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without derogating from the provisions of Article 48, the Board of Directors may from time to time appoint a Secretary to the Company, as well as officers, agents, employees and independent contractors, as the Board of Directors deems fit, and may terminate the service of any such person. The Board of Directors may, subject to the provisions of the Companies Law, determine the powers and duties, as well as the salaries and compensation, of all such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors may from time to time, by power of attorney or otherwise, appoint any person, company, firm or body of persons to be the attorney or attorneys of the Company at law or in fact for such purposes(s) and with such powers, authorities and discretions, and for such period and subject to such conditions, as it deems fit, and any such power of attorney or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorney as the Board of Directors deems fit, and may also authorize any such attorney to delegate all or any of the powers, authorities and discretions vested in him.

38. **<u>Number of Directors</u>** **.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall consist of such number of Directors, not less than four (4) nor more than nine (9), including the External Directors, which will be elected if and as required under the Companies Law, as may be fixed from time to time by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary herein, this Article 38 may only be amended or replaced by a resolution adopted at a General Meeting by a majority of 66% of the voting power represented at the General Meeting in person or by proxy and voting thereon, disregarding abstentions from the count of the voting power present and voting.

39. **<u>Election and Removal of Directors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Directors, excluding the External Directors if any (who shall be elected and serve in office in strict accordance with the provisions of Israeli law), shall be classified, with respect to the term for which they each severally hold office, into three classes, as nearly equal in number as practicable, hereby designated as Class I, Class II and Class III. The Board of Directors may assign members of the Board of Directors already in office to such classes at the time such classification becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The term of office of the initial Class I directors shall expire at the first Annual General Meeting to be held in 2027 and when their successors are elected and qualified,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The term of office of the initial Class II directors shall expire at the first Annual General Meeting following the Annual General Meeting referred to in clause (i) above and when their successors are elected and qualified, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The term of office of the initial Class III directors shall expire at the first Annual General Meeting following the Annual General Meeting referred to in clause (ii) above and when their successors are elected and qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Directors (other than External Directors) may be elected only in Annual General Meetings. At each Annual General Meeting, commencing with the Annual General Meeting to be held in 2027, each of the successors elected to replace the Directors of a Class whose term shall have expired at such Annual General Meeting shall be elected to hold office until the third Annual General Meeting next succeeding his or her election and until his or her respective successor shall have been elected and qualified. Notwithstanding anything to the contrary, each Director shall serve until his or her successor is elected and qualified or until such earlier time as such Director's office is vacated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the number of Directors (excluding External Directors, if any) that constitutes the Board of Directors is hereafter changed, the then-serving Directors shall be redesignated to other Classes and/or any newly created directorships or decrease in directorships shall be apportioned by the Board of Directors among the classes so as to make all classes as nearly equal in number as is practicable, provided that no decrease in the number of Directors constituting the Board of Directors shall shorten the term of any incumbent Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to every Annual General Meeting of the Company at which Directors are to be elected, and subject to clauses (a) and (h) of this Article, the Board of Directors (or a Committee thereof) shall select, by a resolution adopted by a majority of the Board of Directors (or such Committee), a number of Persons to be proposed to the Shareholders for election as Directors at such Annual General Meeting (the "**Nominees**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Proposing Shareholder requesting to include on the agenda of an Annual General Meeting a nomination of a Person to be proposed to the Shareholders for election as Director (such person, an "**Alternate Nominee**"), may so request provided that it complies (and, for the sake of clarity, the Proposal Request complies) with this Article 39(e) and Article 25 and applicable law. Unless otherwise determined by the Board, a Proposal Request relating to Alternate Nominee is deemed to be a matter that is appropriate to be considered only in an Annual General Meeting. In addition to any information required to be included in accordance with applicable law, such a Proposal Request shall include information required pursuant to Article 25, and shall also set forth: (i) the name, address, telephone number, fax number and email address of the Alternate Nominee and all citizenships and residencies of the Alternate Nominee; (ii) a description of all arrangements, relations or understandings between the Proposing Shareholder(s) or any of its affiliates and each Alternate Nominee; (iii) a declaration signed by the Alternate Nominee that he consents to be named in the Company's notices and proxy materials relating to the Annual General Meeting, if provided or published, and, if elected, to serve on the Board of Directors and to be named in the Company's disclosures and filings, (iv) a declaration signed by each Alternate Nominee as required under the Companies Law and any other applicable law and stock exchange rules and regulations for the appointment of such an Alternate Nominee and an undertaking that all of the information that is required under law and stock exchange rules and regulations to be provided to the Company in connection with such an appointment has been provided (including, information in respect of the Alternate Nominee as would be provided in response to the applicable disclosure requirements under Form 20-F or any other applicable form prescribed by the SEC); (v) a declaration made by the Alternate Nominee of whether he or she meets the criteria for an independent director and/or External Director of the Company under the Companies Law and/or under any applicable law, regulation or stock exchange rules, and if not, then an explanation of why not; and (vi) any other information required at the time of submission of the Proposal Request by applicable law, regulations or stock exchange rules. In addition, the Proposing Shareholder and each Alternate Nominee shall promptly provide any other information reasonably requested by the Company, including a duly completed director and officer questionnaire, in such form as may be provided by the Company, with respect to each Alternate Nominee. The Board of Directors may refuse to acknowledge the nomination of any person not made in compliance with the foregoing. The Company shall be entitled to publish any information provided by a Proposing Shareholder and Alternate Nominee pursuant to this Article 39(e) and Article 25, and the Proposing Shareholder shall be responsible for the accuracy and completeness thereof. The Nominees or Alternate Nominees shall be elected by a resolution adopted at the General Meeting at which they are subject for election. Notwithstanding Article **‎**25, in the event of a Contested Election (as defined below), the method of calculation of the votes and the manner in which the resolutions will be presented to the General Meeting shall be determined by the Board in its discretion. In the event that the Board does not or is unable to make a determination on such matter, then the method described in clause (ii) below shall apply. The Board may consider, among other things, the following methods: (i) election of competing slates of director nominees (determined in a manner approved by the Board) by a majority of the voting power represented at the General Meeting in person or by proxy and voting on such competing slates, (ii) election of individual directors by a plurality of the voting power represented at the General Meeting in person or by proxy and voting on the election of directors (which shall mean that the nominees receiving the largest number of "for" votes will be elected in such Contested Election), (iii) election of each nominee by a majority of the voting power represented at the General Meeting in person or by proxy and voting on the election of directors, provided that if the number of such nominees exceeds the number of directors to be elected, then as among such nominees the election shall be by plurality of the voting power as described above, and (iv) such other method of voting as the Board deems appropriate, including use of a "universal proxy card" listing all Nominees and Alternate Nominees by the Company. For the purposes of these Articles, election of directors at a General Meeting shall be considered a "**Contested Election**" if the aggregate number of Nominees and Alternate Nominees at such meeting exceeds the total number of Directors to be elected at such meeting, with the determination thereof being made by the Secretary (or, in the absence thereof, by the CEO of the Company) as of the close of the applicable notice of nomination period under Article **‎**25 or under applicable law, based on whether one or more notice(s) of nomination were timely filed in accordance with this Article and applicable law; provided, however, that the determination that an election is a Contested Election shall not be determinative as to the validity of any such notice of nomination; and provided further, that, if, prior to the time of such meeting, one or more notices of nomination of an Alternate Nominee are withdrawn such that the number of candidates for election as director no longer exceeds the number of directors to be elected, the election shall not be considered a Contested Election. At any General Meeting at which Directors are to be elected, each shareholder shall be entitled to cast a number of votes with respect to nominees for election to the Board up to the total number of Directors to be elected at such meeting. Shareholders shall not be entitled to cumulative voting in the election of Directors, except to the extent specifically set forth in this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Nominees or Alternate Nominees shall be elected by a resolution adopted at the Annual General Meeting at which they are subject to election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary herein, this Article 39 and Article 42(e) may only be amended, replaced or suspended by a resolution adopted at a General Meeting by a majority of 66% of the voting power represented at the General Meeting in person or by proxy and voting thereon, disregarding abstentions from the count of the voting power present and voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary in these Articles, the election, qualification, removal or dismissal of External Directors (if any) shall be only in accordance with the applicable provisions set forth in the Companies Law.

40. **<u>Commencement of Directorship</u>**.

Without derogating from Article 39, the term of office of a Director shall commence as of the date of his appointment or election, or on a later date if so specified in his appointment or election.

41. **<u>Continuing Directors in the Event of Vacancies</u>**.

The Board may at any time and from time to time appoint any person as a Director, whether to fill a vacancy (whether such vacancy is due to a Director no longer serving or due to the number of Directors serving being less than the maximum number stated in Article 38 hereof) or otherwise. In the event of one or more such vacancies in the Board of Directors, the continuing Directors may continue to act in every matter, provided, however, that if they number less than the minimum number provided for pursuant to Article 38 hereof, they may only act in an emergency or to fill the office of director which has become vacant up to a number equal to the minimum number provided for pursuant to Article 38 hereof. The office of a Director that was appointed by the Board of Directors (i) to fill any vacancy shall only be for the remaining period of time during which the Director whose service has ended was filled would have held office, or in case of a vacancy due to the number of Directors serving being less than the maximum number stated in Article 38 hereof, the Board shall determine at the time of appointment the class pursuant to Article 39 to which the additional Director shall be assigned and (ii) not to fill a vacancy, shall be until the first Annual General Meeting convened after such appointment and he shall be eligible for re-election at such Annual General Meeting.

42. **<u>Vacation of Office</u>**.

The office of a Director shall be vacated and he or she shall be dismissed or removed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *ipso facto*, upon his or her death;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if he or she is prevented by applicable law from serving as a Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Board determines that due to his or her mental or physical state he or she is unable to serve as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if his or her directorship expires pursuant to these Articles and/or applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by a resolution adopted at a General Meeting by a majority of 66% of the voting power represented at the General Meeting in person or by proxy and voting thereon, disregarding abstentions from the count of the voting power present and voting. Such removal shall become effective on the date fixed in such resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) by his or her written resignation, such resignation becoming effective on the date fixed therein, or upon the delivery thereof to the Company, whichever is later; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) with respect to an External Director, and notwithstanding anything to the contrary herein, only pursuant to applicable law.

43. **<u>Conflict of Interests; Approval of Related Party Transactions</u>**.

Subject to the provisions of the Companies Law and these Articles, no Director shall be disqualified by virtue of his office from holding any office or place of profit in the Company or in any company in which the Company shall be a shareholder or otherwise interested, or from contracting with the Company as vendor, purchaser or otherwise, nor shall any such contract, or any contract or arrangement entered into by or on behalf of the Company in which any Director shall be in any way interested, be avoided, nor, other than as required under the Companies Law, shall any Director be liable to account to the Company for any profit arising from any such office or place of profit or realized by any such contract or arrangement by reason only of such Director's holding that office or of the fiduciary relations thereby established, but the nature of his interest, as well as any material fact or document, must be disclosed by him at the meeting of the Board of Directors at which the contract or arrangement is first considered, if his interest then exists, or, in any other case, at no later than the first meeting of the Board of Directors after the acquisition of his interest.

**Proceedings of the Board of Directors**

44. **<u>Meetings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may meet and adjourn its meetings and otherwise regulate such meetings and proceedings as the Directors think fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A meeting of the Board of Directors shall be convened by the Secretary upon instruction of the Chairperson or upon a request of at least two Directors which is submitted to the Chairperson or in any event that such meeting is required by the provisions of the Companies Law. Any meeting of the Board of Directors shall be convened upon not less than 48 hours notice, unless such notice is waived in writing by all of the Directors as to a particular meeting or by their attendance at such meeting or unless the matters to be discussed at such meeting are of such urgency and importance that notice is reasonably determined by the Chairperson as ought to be waived or shortened under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notice of any such meeting shall be given in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary herein, failure to deliver notice to a director of any such meeting in the manner required hereby may be waived by such Director, and a meeting shall be deemed to have been duly convened notwithstanding such defective notice if such failure or defect is waived prior to action being taken at such meeting, by all Directors entitled to participate at such meeting to whom notice was not duly given as aforesaid. Without derogating from the foregoing, no Director present at any time during a meeting of the Board of Directors shall be entitled to seek the cancellation or invalidation of any proceedings or resolutions adopted at such meeting on account of any defect in the notice of such meeting relating to the date, time or the place thereof or the convening of the meeting.

45. **<u>Quorum</u>**.

Until otherwise unanimously decided by the Board of Directors, a quorum at a meeting of the Board of Directors shall be constituted by the presence in person or by any means of communication of a majority of the Directors then in office who are lawfully entitled to participate and vote in the meeting. No business shall be transacted at a meeting of the Board of Directors unless the requisite quorum is present (in person or by any means of communication) when the meeting proceeds to business.

46. **<u>Chairperson of the Board of Directors</u>**.

The Board of Directors shall, from time to time, elect one of its members to be the Chairperson of the Board of Directors, remove such Chairperson from office and appoint in his place. The Chairperson of the Board of Directors shall preside at every meeting of the Board of Directors, but if there is no such Chairperson, or if at any meeting he is not present within fifteen (15) minutes of the time fixed for the meeting or if he is unwilling to take the chair, the Directors present shall choose one of the Directors present at the meeting to be the Chairperson of such meeting. The office of Chairperson of the Board of Directors shall not, by itself, entitle the holder to a second or casting vote.

47. **<u>Validity of Acts Despite Defects</u>**.

All acts done or transacted at any meeting of the Board of Directors, or of a Committee of the Board of Directors, or by any person(s) acting as Director(s), shall, notwithstanding that it may afterwards be discovered that there was some defect in the appointment of the participants in such meeting or any of them or any person(s) acting as aforesaid, or that they or any of them were disqualified, be as valid as if there were no such defect or disqualification.

**Chief Executive Officer**

48. **<u>Chief Executive Officer</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors shall from time to time appoint one or more persons, whether or not Directors, as Chief Executive Officer of the Company and may confer upon such person(s), and from time to time modify or revoke, such titles and such duties and authorities of the Board of Directors as the Board of Directors may deem fit, subject to such limitations and restrictions as the Board of Directors may from time to time prescribe. Such appointment(s) may be either for a fixed term or without any limitation of time, and the Board of Directors may from time to time (subject to any additional approvals required under, and the provisions of, the Companies Law and of any contract between any such person and the Company) fix their salaries and compensation, remove or dismiss them from office and appoint another or others in his or their place or places.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise determined by the Board of Directors, the Chief Executive Officer shall have authority with respect to the management and operations of the Company in the ordinary course of business.

**Minutes**

49. **<u>Minutes</u>**<u>.</u>

Any minutes of the General Meeting or the Board of Directors or any committee thereof, if purporting to be signed by the Chairperson of the General Meeting, the Board or a committee thereof, as the case may be, or by the Chairperson of the next succeeding General Meeting, meeting of the Board or meeting of a committee thereof, as the case may be, shall constitute prima facie evidence of the matters recorded therein.

**Dividends**

50. **<u>Declaration of Dividends</u>**.

The Board of Directors may from time to time declare, and cause the Company to pay, such dividend as permitted by the Companies Law. The Board of Directors shall determine the time for payment of such dividends and the record date for determining the shareholders entitled thereto.

51. **<u>Amount Payable by Way of Dividends</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of these Articles and subject to the rights or conditions attached at that time to any share in the capital of the Company granting preferential, special or deferred rights or not granting any rights with respect to dividends, any dividend paid by the Company shall be allocated among the shareholders (not in default in payment of any sum referred to in Article 13 hereof) entitled thereto in proportion to their respective holdings of the shares in respect of which such dividends are being paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the rights attached to any shares or the terms of issue of the shares do not provide otherwise, shares which are fully paid up or which are credited as fully or partly paid within any period which in respect thereof dividends are paid shall entitle the holders thereof to a dividend in proportion to the amount paid up or credited as paid up in respect of the nominal value of such shares and to the date of payment thereof (*pro rata temporis*).

52. **<u>Interest</u>**.

No dividend shall carry interest as against the Company.

53. **<u>Capitalization of Profits, Reserves, etc</u>**.

The Board of Directors may determine that the Company (i) may cause any moneys, investments, or other assets forming part of the undivided profits of the Company, standing to the credit of a reserve fund, or to the credit of a reserve fund for the redemption of capital, or in the hands of the Company and available for dividends, or representing premiums received on the issuance of shares and standing to the credit of the share premium account, to be capitalized and distributed among such of the shareholders as would be entitled to receive the same if distributed by way of dividend and in the same proportion, on the footing that they become entitled thereto as capital, or may cause any part of such capitalized fund to be applied on behalf of such shareholders in paying up in full, either at par or at such premium as the resolution may provide, any unissued shares or debentures or debenture stock of the Company which shall be distributed accordingly, in payment, in full or in part, of the uncalled liability on any issued shares or debentures or debenture stock; and (ii) may cause such distribution or payment to be accepted by such shareholders in full satisfaction of their interest in the said capitalized sum.

54. **<u>Implementation of Powers</u>**.

For the purpose of giving full effect to any resolution under Article 53, and without derogating from the provisions of Article 55 hereof, the Board of Directors may settle any difficulty which may arise in regard to the distribution as it thinks expedient, and, in particular, may fix the value for distribution of any specific assets and may determine that cash payments shall be made to any shareholders upon the footing of the value so fixed, or that fractions of less value than a certain determined value may be disregarded in order to adjust the rights of all parties, and may vest any such cash, shares, debentures, debenture stock or specific assets in trustees upon such trusts for the persons entitled to the dividend or capitalized fund as may seem expedient to the Board of Directors. Where requisite, a proper contract shall be filed in accordance with Section 291 of the Companies Law, and the Board of Directors may appoint any person to sign such contract on behalf of the persons entitled to the dividend or capitalized fund.

55. **<u>Deductions from Dividends</u>**.

The Board of Directors may deduct from any dividend or other moneys payable to any Shareholder in respect of a share any and all sums of money then payable by such Shareholder to the Company on account of calls or otherwise in respect of shares of the Company and/or on account of any other matter of transaction whatsoever.

56. **<u>Retention of Dividends</u>**<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board of Directors may retain any dividend or other moneys payable or property distributable in respect of a share on which the Company has a lien, and may apply the same in or toward satisfaction of the debts, liabilities, or engagements in respect of which the lien exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board of Directors may retain any dividend or other moneys payable or property distributable in respect of a share in respect of which any person is, under Articles 21 or 22, entitled to become a Shareholder, or which any person is, under said Articles, entitled to transfer, until such person shall become a Shareholder in respect of such share or shall transfer the same.

57. **<u>Unclaimed Dividends</u>**.

All unclaimed dividends or other moneys payable in respect of a share may be invested or otherwise made use of by the Board of Directors for the benefit of the Company until claimed. The payment by the Directors of any unclaimed dividend or such other moneys into a separate account shall not constitute the Company a trustee in respect thereof, and any dividend unclaimed after a period of seven years from the date of declaration of such dividend, and any such other moneys unclaimed after a like period from the date the same were payable, shall be forfeited and shall revert to the Company, provided, however, that the Board of Directors may, at its discretion, cause the Company to pay any such dividend or such other moneys, or any part thereof, to a person who would have been entitled thereto had the same not reverted to the Company. The principal (and only the principal) of any unclaimed dividend of such other moneys shall be, if claimed, paid to a person entitled thereto.

58. **<u>Mechanics of Payment</u>**.

Any dividend or other moneys payable in cash in respect of a share may be paid by check or warrant sent through the post to, or left at, the registered address of the person entitled thereto or by transfer to a bank account specified by such person (or, if two or more persons are registered as joint holders of such share or are entitled jointly thereto in consequence of the death or bankruptcy of the holder or otherwise, to the joint holder whose name is registered first in the Register of Shareholders or his bank account or the person who the Company may then recognize as the owner thereof or entitled thereto under Article 21 or 22 hereof, as applicable, or such person's bank account), or to such person and at such other address as the person entitled thereto may by writing direct, or in any other manner the Board deems appropriate. Every such check or warrant or other method of payment shall be made payable to the order of the person to whom it is sent, or to such person as the person entitled thereto as aforesaid may direct, and payment of the check or warrant by the banker upon whom it is drawn shall be a good discharge to the Company.

59. **<u>Receipt from a Joint Holder</u>**.

If two or more persons are registered as joint holders of any share, or are entitled jointly thereto in consequence of the death or bankruptcy of the holder or otherwise, any one of them may give effectual receipts for any dividend or other moneys payable or property distributable in respect of such share.

**Accounts**

60. **<u>Books of Account</u>**.

The Company's books of account shall be kept at the Office of the Company, or at such other place or places as the Board of Directors may think fit, and they shall always be open to inspection by all Directors. No shareholder, not being a Director, shall have any right to inspect any account or book or other similar document of the Company, except as conferred by law or authorized by the Board of Directors. The Company shall make copies of its annual financial statements available for inspection by the Shareholders at the principal offices of the Company. The Company shall not be required to send copies of its annual financial statements to the Shareholders.

61. **<u>Auditors</u>**.

The appointment, authorities, rights and duties of the auditor(s) of the Company, shall be regulated by applicable law, provided, however, that in exercising its authority to fix the remuneration of the auditor(s), the shareholders in General Meeting may act (and in the absence of any action in connection therewith shall be deemed to have so acted) to authorize the Board of Directors (with right of delegation to committee thereof or to management) to fix such remuneration subject to such criteria or standards, and if no such criteria or standards are so provided, such remuneration shall be fixed in an amount commensurate with the volume and nature of the services rendered by such auditor(s). The General Meeting may, if so recommended by the Board of Directors, appoint the auditors for a period that may extend until the third Annual General Meeting after the Annual General Meeting in which the auditors were appointed.

**Supplementary Registers**

62. **<u>Supplementary Registers</u>**.

Subject to and in accordance with the provisions of Sections 138 and 139 of the Companies Law, the Company may cause supplementary registers to be kept in any place outside Israel as the Board of Directors may think fit, and, subject to all applicable requirements of law, the Board of Directors may from time to time adopt such rules and procedures as it may think fit in connection with the keeping of such branch registers.

**Exemption, Indemnity and Insurance**

63. **<u>Insurance</u>**.

Subject to the provisions of the Companies Law with regard to such matters, the Company may enter into a contract for the insurance of the liability, in whole or in part, of any of its Office Holders imposed on such Office Holder due to an act performed by or an omission of the Office Holder in the Office Holder's capacity as an Office Holder of the Company arising from any matter permitted by law, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a breach of duty of care to the Company or to any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a breach of duty of loyalty to the Company, provided that the Office Holder acted in good faith and had reasonable grounds to assume that the act that resulted in such breach would not prejudice the interests of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a financial liability imposed on such Office Holder in favor of any other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other event, occurrence, matter or circumstance under any law with respect to which the Company may, or will be able to, insure an Office Holder, and to the extent such law requires the inclusion of a provision permitting such insurance in these Articles, then such provision is deemed to be included and incorporated herein by reference (including, without limitation, in accordance with Section 56h(b)(1) of the Securities Law, if and to the extent applicable, and Section 50P of the RTP Law).

64. **<u>Indemnity</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of the Companies Law, the Company may retroactively indemnify an Office Holder of the Company to the maximum extent permitted under applicable law, including with respect to the following liabilities and expenses, provided that such liabilities or expenses were imposed on such Office Holder or incurred by such Office Holder due to an act performed by or an omission of the Office Holder in such Office Holder's capacity as an Office Holder of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a financial liability imposed on an Office Holder in favor of another person by any court judgment, including a judgment given as a result of a settlement or an arbitrator's award which has been confirmed by a court in respect of an act performed by the Office Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reasonable litigation expenses, including attorneys' fees, expended by the Office Holder as a result of an investigation or proceeding instituted against him or her by an authority authorized to conduct such investigation or proceeding, or in connection with a financial sanction, provided that (1) no indictment (as defined in the Companies Law) was filed against such office holder as a result of such investigation or proceeding; and (2) no financial liability in lieu of a criminal proceeding (as defined in the Companies Law) was imposed upon him or her as a result of such investigation or proceeding or if such financial liability was imposed, it was imposed with respect to an offence that does not require proof of criminal intent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reasonable litigation costs, including attorney's fees, expended by an Office Holder or which were imposed on an Office Holder by a court in proceedings filed against the Office Holder by the Company or in its name or by any other person or in a criminal charge in respect of which the Office Holder was acquitted or in a criminal charge in respect of which the Office Holder was convicted for an offence which did not require proof of criminal intent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other event, occurrence, matter or circumstance under any law with respect to which the Company may, or will be able to, indemnify an Office Holder, and to the extent such law requires the inclusion of a provision permitting such indemnity in these Articles, then such provision is deemed to be included and incorporated herein by reference (including, without limitation, in accordance with Section 56h(b)(1) of the Securities Law, if and to the extent applicable, and Section 50P(b)(1) of the RTP Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions of the Companies Law, the Company may undertake to indemnify an Office Holder, in advance, with respect to those liabilities and expenses described in the following Articles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Sub-Article 64(a)(ii) to 64(a)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Sub-Article 64(a)(i), provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the undertaking to indemnify is limited to such events which the Board of Directors shall deem to be likely to occur in light of the operations of the Company at the time that the undertaking to indemnify is made and for such amounts or criterion which the Directors may, at the time of the giving of such undertaking to indemnify, deem to be reasonable under the circumstances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the undertaking to indemnify shall set forth such events which the Directors shall deem to be likely to occur in light of the operations of the Company at the time that the undertaking to indemnify is made, and the amounts and/or criterion which the Directors may, at the time of the giving of such undertaking to indemnify, deem to be reasonable under the circumstances.

65. **<u>Exemption</u>**.

Subject to the provisions of the Companies Law and the Securities Law, the Company hereby exempts and releases, in advance, any Office Holder from any liability to the Company for damages arising out of a breach of the Office Holder's duty of care towards the Company.

66. **<u>General</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any amendment to the Companies Law adversely affecting the right of any Office Holder to be indemnified or insured pursuant to Articles 63 to 65 and any amendments to Articles 63 to 65 shall be prospective in effect, and shall not affect the Company's obligation or ability to indemnify or insure an Office Holder for any act or omission occurring prior to such amendment, unless otherwise provided by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of Articles 63 to 65(i) shall apply to the maximum extent permitted by law (including, the Companies Law, the Securities Law and the RTP Law); and (ii) are not intended, and shall not be interpreted so as to restrict the Company, in any manner, in respect of the procurement of insurance and/or in respect of indemnification (whether in advance or retroactively) and/or exemption, in favor of any person who is not an Office Holder, including, without limitation, any employee, agent, consultant or contractor of the Company who is not an Office Holder; and/or any Office Holder to the extent that such insurance and/or indemnification is not specifically prohibited under law.

**Winding Up**

67. **<u>Winding Up</u>**.

If the Company is wound up, then, subject to applicable law and to the rights of the holders of shares with special rights upon winding up, the assets of the Company available for distribution among the shareholders shall be distributed to them in proportion to the nominal value of their respective holdings of the shares in respect of which such distribution is being made.

**Notices**

68. **<u>Notices</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any written notice or other document may be served by the Company upon any shareholder either personally, by facsimile, email or other electronic transmission, or by sending it by prepaid mail (airmail if sent internationally) addressed to such shareholder at his address as described in the Register of Shareholders or such other address as he may have designated in writing for the receipt of notices and other documents. The Company shall not be required to give notice to its registered shareholders pursuant to the Companies Law, unless otherwise required by the Companies Law, the Securities Law and all applicable laws and regulations applicable in any relevant jurisdiction (including without limitation U.S. federal laws and regulations), and rules of any stock market in which the Company's shares are registered for trading as shall be in force from time to time. Subject thereto, the Company shall not be required to send notices to any shareholder who is not registered in the Register or has not provided the Company with accurate and sufficient mailing details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any written notice or other document may be served by any shareholder upon the Company by tendering the same in person to the Secretary or the Chief Executive Officer of the Company at the principal office of the Company, by facsimile transmission, or by sending it by prepaid registered mail (airmail if posted outside Israel) to the Company at its Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any such notice or other document shall be deemed to have been served:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of mailing, forty-eight (48) hours after it has been posted, or when actually received by the addressee if sooner than forty-eight hours after it has been posted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of overnight air courier, on the next business day following the day sent, with receipt confirmed by the courier, or when actually received by the addressee if sooner than three business days after it has been sent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of personal delivery, when actually tendered in person, to such addressee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of facsimile, email or other electronic transmission, on the first business day (during normal business hours in place of addressee) on which the sender receives automatic electronic confirmation by the addressee's facsimile machine that such notice was received by the addressee or delivery confirmation from the addressee's email or other communication server.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a notice is, in fact, received by the addressee, it shall be deemed to have been duly served, when received, notwithstanding that it was defectively addressed or failed, in some other respect, to comply with the provisions of this Article 68.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All notices to be given to the shareholders shall, with respect to any share to which persons are jointly entitled, be given to whichever of such persons is named first in the Register of Shareholders, and any notice so given shall be sufficient notice to the holders of such share. Should it be required to prove delivery, it shall be sufficient to prove that the notice or document sent contains the correct mailing or e-mail details as registered in the Register or any other address which the shareholder submitted in writing to the Company as the address and fax or e-mail details for the submission of notices or other documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any shareholder whose address is not described in the Register of Shareholders, and who shall not have designated in writing an address for the receipt of notices, shall not be entitled to receive any notice from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary contained herein, notice by the Company of a General Meeting, containing the information required by applicable law and these Articles to be set forth therein, which is published, within the time otherwise required for giving notice of such meeting, in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at least two daily newspapers in the State of Israel or on the Company's website shall be deemed to be notice of such meeting duly given, for the purposes of these Articles, to any shareholder whose address as registered in the Register of Shareholders (or as designated in writing for the receipt of notices and other documents) is located in the State of Israel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) one daily newspaper in the City of New York or in one international wire service (or, if the Company's shares are then listed for trading on a national securities exchange in the United States or quoted in an over-the-counter market in the United States, in a report or a schedule filed with, or furnished to, the SEC pursuant to the Securities Exchange Act of 1934, as amended) shall be deemed to be notice of such meeting duly given, for the purposes of these Articles, to any shareholder whose address as registered in the Register of Shareholders (or as designated in writing for the receipt of notices and other documents) is located outside the State of Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The mailing or publication date and the date of the meeting shall be counted as part of the days comprising any notice period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) The accidental omission to give notice to any shareholder or the non-receipt of any such notice shall not cancel or annul any action made in reliance on the notice.

BUSINESS COMBINATIONS WITH INTERESTED SHAREHOLDERS

69. <u>Business Combinations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of these Articles and subject to the provisions of applicable law, the Company shall not engage in any Business Combination (as defined below) with any Interested Shareholder (as defined below) for a period of three (3) years following the time that such shareholder became an Interested Shareholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prior to the time that such shareholder become an Interested Shareholder, the Board approved either the Business Combination or the transaction which resulted in the shareholder becoming an Interested Shareholder, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon consummation of the transaction which resulted in the shareholder becoming an Interested Shareholder, the Interested Shareholder owned at least 85% of the Voting Shares (as defined below) of the Company outstanding at the time the transaction commenced excluding for purposes of determining the Voting Shares outstanding (but not the outstanding Voting Shares owned by the Interested Shareholder) those shares owned by persons who are directors and also officers, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at the time that such shareholder became an Interested Shareholder, or subsequent to such time, the Business Combination is approved by the Board and authorized at a General Meeting of shareholders by the affirmative vote of at least 66 2/3% of the Voting Shares outstanding that are not owned by the Interested Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The restrictions set forth in this Article shall not apply if shareholder becomes an Interested Shareholder inadvertently and (i) as soon as practicable divests itself of ownership of sufficient shares so that the shareholders cease to be an interested shareholder; and (ii) would not, at any time within the 3-year period immediately prior to a Business Combination between the Company and such shareholder, have been an Interested Shareholder but for the inadvertent acquisition of ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As used in this Article only, the term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Affiliate" means a Person (as defined below) that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Associate" when used to indicate a relationship with any Person, means (A) any corporation, partnership, unincorporated association or other entity of which such Person is a director, officer or partner or is, directly or indirectly, the owner of twenty percent (20%) or more of any class of Voting Shares, (B) any trust or other estate in which such Person has at least a twenty percent (20%) beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity, and (C) any relative or spouse of such Person, or any relative of such spouse, who has the same residence as such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Business Combination" when used in reference to the Company and any Interested Shareholder of the Company, means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any merger or consolidation of the Company or any direct or indirect majority owned subsidiary of the
Company with (1) the Interested Shareholder, or (2) with any other corporation, partnership, unincorporated association, or
other entity if the merger or consolidation is caused by the Interested Shareholder and as a result of such merger or consolidation subsection
(a) of this Article is not applicable to the surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series
of transactions), except proportionately as a shareholder of such Company, to or with the Interested Shareholder, whether as part of a
dissolution or otherwise, of assets of the Company or of any direct or indirect majority owned subsidiary of the Company, which assets
have an aggregate market value equal to ten percent (10%) or more of either the aggregate market value of all of the assets of the Company
determined on a consolidated basis or the aggregate market value of all of the outstanding shares of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any transaction which results in the issuance or transfer by the Company or by any direct or indirect
majority-owned subsidiary of the Company of any shares of the Company or of such subsidiary to the Interested Shareholder, except (1) pursuant
to the exercise, exchange or conversion of securities exercisable for or convertible into shares of the Company or any such subsidiary,
which securities were outstanding prior to the time that the Interested Shareholder became such; (2) pursuant to Section 337(a) or
Section 337(a1) of the Companies Law, (3) pursuant to a dividend or distribution paid or made, or the exercise, exchange or
conversion of securities exercisable for, exchangeable for or convertible into shares of the Company or any such subsidiary, which security
is distributed pro-rata to all holders of shares of the Company subsequent to the time the Interested Shareholder became such; (4) pursuant
to an exchange offer by the Company to purchase shares made on the same terms to all holders of said shares; or (5) any issuance
or transfer of shares by the Company; provided, that in no case under (2) through (5) above shall there be an increase in the
Interested Shareholder's proportionate share of the shares or of the voting shares of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any transaction involving the Company or any direct or indirect majority-owned subsidiary of the Company
which has the effect directly or indirectly of increasing the proportionate share of the shares of any class or series or securities convertible
into the shares of any class or series of the Company or of any such subsidiary which is owned by the Interested Shareholder except as
a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any shares not caused,
directly or indirectly, by the Interested Shareholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any receipt by the Interested Shareholder of the benefit, directly or indirectly (except proportionately
as a shareholder of such company), of any loans, advances, guarantees, pledges, or any other financial benefits (other than those expressly
permitted in subparagraphs (1) through (4) above) provided by or through the Company or any direct or indirect majority owned
subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Control" including the term "Controlling", "Controlled by" and "under common control with" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of Voting Shares, by contract or otherwise. A Person who is the owner of twenty percent (20%) or more of the outstanding Voting Shares of any corporation, partnership, unincorporated association or other entity shall be presumed to have control of such entity. Notwithstanding the foregoing, a presumption of control shall not apply where such Person holds Voting Shares in good faith and not for the purpose of circumventing this Article as an agent, bank, broker, nominee, custodian, or trustee for one or more owners who do not individually or as a group have control of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Interested Shareholder" means any person (other than the Company and any direct or indirect majority-owned subsidiary of the Company) that (A) is the Owner of fifteen percent (15%) or more of the outstanding Voting Shares of the Company, or (B) is an Affiliate or Associate of the Company and was the Owner of fifteen percent (15%) or more of the outstanding Voting Shares of the Company at any time within the 3-year period immediately prior to the date on which it is sought to be determined whether such person is an Interested Shareholder, and the Affiliates and Associates of such person. Notwithstanding the foregoing, the term Interested Shareholder shall not include any Person whose ownership of outstanding Voting Shares in excess of the fifteen percent (15%) limitation set forth herein is the result of action taken solely by the Company; provided that such Person shall be an Interested Shareholder if thereafter such person acquires, without prior approval of the Board, additional Voting Shares of the Company, except as a result of further corporate action not caused, directly or indirectly, by such Person. For the purpose of determining whether a person is an Interested Shareholder, the Voting Shares of the Company deemed to be outstanding shall include shares deemed to be owned by the person through application of paragraph (ix) of this subsection but shall not include any other unissued shares of the Company which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Person" means any individual, corporation, partnership, unincorporated association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Share" means with respect to any corporation shares of its capital and with respect to any other entity or equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Voting Shares" mean with respect to any corporation Shares of any class or series entitled to vote generally in the election of directors and, with respect to any entity that is not a corporation, any equity interest entitled to vote generally in the election of the governing body of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Owner" including the terms "own" and "owned", when used with respect to any Share, means a Person that individually or with or through any of its Affiliates or Associates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beneficially owns such share, directly or indirectly: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has (1) the right to acquire such share (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding or upon the exercise of conversion rights, warrants or options, or otherwise; provided however, that a Person shall not be deemed the owner of share tendered pursuant to a tender or exchange; or (2) the right to vote such share pursuant to any agreement, arrangement or understanding; provided however, that a person shall not be deemed the owner of any share because of such person's right to vote such share if the agreement, arrangement, or understanding to vote such share arises solely from a recoverable proxy or consent given in response to a proxy or consent solicitation made to ten (10) or more Persons: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in item (2) of clause (ii) of this paragraph) or disposing of such Share with any other Person that beneficially owns or whose Affiliates or Associates beneficially own, directly or indirectly, such share.

Any change to this Article 69 shall only be adopted by a resolution of the shareholders of the Company, adopted by the holders of securities representing at least 85% of the Voting Shares of the Company then outstanding.

**Forum**

70. **<u>Forum For Adjudication of Disputes.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the Company consents in writing to the selection of an alternative forum, with respect to any causes
of action arising under the U.S. Securities Act of 1933, as amended, the federal district courts of the United States of America shall
be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the U.S. Securities Act of 1933,
as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the Company consents in writing to the selection of an alternative forum, the competent courts
in Tel Aviv, Israel shall be the exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company,
(ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to
the Company or the Company's shareholders, or (iii) any action asserting a claim arising pursuant to any provision of the Companies
Law or the Securities Law. Any person or entity purchasing or otherwise acquiring or holding any interest in shares of the Company shall
be deemed to have notice of and consented to these provisions.

\* \* \*

## Exhibit 5.1

**Exhibit 5.1**

![](tm266724d10_ex5-1img001.jpg)

June 8, 2026

Silentium Ltd.

5 Golda Meir Street

Ness Ziona, 7403649, Israel

Re: **<u>Registration Statement on Form F-1</u>**

Ladies and Gentlemen,

We have acted as Israeli counsel for Silentium Ltd. (the "Company"), a company organized under the laws of the State of Israel, in connection with the preparation and filing of the Registration Statement on Form F-1 (as amended, the "Registration Statement") filed with the Securities and Exchange Commission (the "Commission"), on or about the date hereof, under the Securities Act of 1933, as amended (the "Act"), by the Company relating to the offering (the "Offering") by the Company of up to 2,472,500 ordinary shares, no par value per share, of the Company , including 332,500 Ordinary Shares that are subject to an option granted by the Company to the underwriters of the offering to purchase additional shares ("Ordinary Shares", and the Ordinary Shares being registered under the Registration Statement are referred to herein as the "Offering Shares").

This opinion is being furnished in connection with the requirements of Items 601(b)(5) and (b)(23) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or the prospectus that is a part of the Registration Statement other than as expressly stated herein with respect to the issuance of the Offering Shares.

In connection with this opinion, we have examined and relied without investigation as to matters of fact upon (i) the Registration Statement and exhibits thereto, (ii) the prospectus that is a part of the Registration Statement, (iii) the Amended and Restated Articles of Association of the Company currently in effect, (iv) the Amended and Restated Articles of Association of the Company to be in effect immediately prior to the closing of the Offering, (v) resolutions of the board of directors and shareholders of the Company provided to us by the Company (such resolutions, the "Resolutions") that relate to the Registration Statement and other actions to be taken in connection with the Offering, (vi) the form of Underwriting Agreement between the Company and ThinkEquity LLC as representative of the several underwriters (the "Underwriters") and (vii) such originals or copies, certified or otherwise identified to our satisfaction, of such other documents, corporate records, certificates and statements of public officials and officers and representatives of the Company and instruments as we have deemed necessary or appropriate to enable us to render the opinions expressed herein. In such examination, we have assumed the genuineness of all signatures on all documents examined by us, the legal competence and capacity of natural persons, the authenticity of documents submitted to us as originals, the conformity with authentic original documents of all documents submitted to us as copies and the authenticity of the originals of such copies and the truth, accuracy and completeness of the information, representations and warranties contained in the corporate records, documents, certificates and instruments we have reviewed. As to any facts material to such opinion, to the extent that we did not independently establish relevant facts, we have relied on certificates of public officials and certificates of officers or other representatives of the Company. We have also assumed that until such time as the Offering Shares are issued, the Resolutions will not be rescinded, cancelled, amended or modified in any way**.**

Upon the basis of such examination and subject to the assumptions and qualifications stated herein, we are of the opinion that the Offered Shares to be sold to the Underwriters as described in the Registration Statement have been duly authorized, and upon issuance and delivery of the Offered Shares, as described in the Registration Statement against payment to the Company of the consideration for the Offering Shares in such amount and form as shall be determined by the Company's board of directors or an authorized committee thereof, the Offering Shares will be duly validly issued, fully paid and non-assessable.

![](tm266724d10_ex5-1img003.jpg)

![](tm266724d10_ex5-1img002.jpg)

We are members of the Israel Bar and we express no opinion as to any matter relating to the laws of any jurisdiction other than the laws of Israel.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the references to this firm in the section of the Registration Statement entitled "Legal Matters." This consent is not to be construed as an admission that we are a party whose consent is required to be filed as part of the Registration Statement under the provisions of the Act.

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| |
|:---|
| Very truly yours, |
| /s/ Goldfarb Gross Seligman & Co. |

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## Exhibit 5.2

**Exhibit 5.2**

![](tm266724d10_ex5-2img001.jpg)

June 8, 2026

Silentium Ltd.

5 Golda Meir Street

Ness Ziona, 7403649, Israel

Re: <u>Registration Statement on Form F-1</u>

Ladies and Gentlemen:

This opinion is furnished to you in connection with the Registration Statement on Form F-1 (as amended to date, the "Registration Statement") filed by Silentium Ltd., an Israeli company (the "Company"), with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Securities Act"), for the registration (including in connection with an overallotment option granted to the Underwriter (as defined below)) and proposed maximum aggregate offering price by the Company of up to $21,016,250 of: (A) ordinary shares, no par value, of the Company (the "Ordinary Shares"); (B) warrants (the "Underwriter Warrants") to purchase Ordinary Shares issued to the Underwriter; and (C) the Ordinary Shares underlying the Underwriter Warrants (together with the Ordinary Shares and Underwriter Warrants, the "Securities"). The Securities are being registered by the Company, which has engaged ThinkEquity LLC (the "Underwriter") to act as the underwriter in connection with a public offering of the Company's Ordinary Shares (the "Offering").

We are acting as U.S. securities counsel for the Company in connection with the Registration Statement. We have examined signed copies of the Registration Statement and have also examined and relied upon minutes of meetings of the Board of Directors of the Company as provided to us by the Company and such other documents as we have deemed necessary for purposes of rendering the opinion hereinafter set forth.

In our examination of the foregoing documents, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as copies, the authenticity of the originals of such latter documents and the legal competence of all signatories to such documents. Other than our examination of the documents indicated above, we have made no other examination in connection with this opinion. Because the Underwriter Warrants contain provisions stating that they are to be governed by the laws of the State of New York, we are rendering this opinion as to New York law. We are admitted to practice in the State of New York, and we express no opinion as to any matters governed by any law other than the law of the State of New York. In particular, we do not purport to pass on any matter governed by the laws of Israel. You are separately reviewing an opinion from Goldfarb Gross Seligman & Co. filed as Exhibit 5.1 to the Registration Statement with respect to the corporate proceedings and due authorization relating to the issuance of the Ordinary Shares and the Ordinary Shares underlying the Underwriter Warrants under the laws of Israel. With respect to the Securities being duly and validly issued, fully paid and non-assessable, and the due authorization of the Underwriter Warrants, we have relied on the opinion of Goldfarb Gross Seligman & Co. filed as an exhibit to the Registration Statement as filed with the Commission.

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| |
|:---|
| **Greenberg Traurig, P.A. \| Attorneys at Law** |
| Azrieli Center, Round Tower \| 132 Menachem Begin Road, 30th Floor \| Tel Aviv, Israel 6701101 \| T +1 +972 (0) 3 636 6000 \| F +1 +972 (0) 3 636 6010 |
| www.gtlaw.com |

---

Based upon and subject to the foregoing, we are of the opinion that, when the Registration Statement has become effective under the Securities Act, assuming the due authorization, execution and delivery of the Underwriter Warrants, the Underwriter Warrants, if and when issued and paid for in accordance with the terms of the Offering, will be valid and binding obligations of the Company enforceable against the Company in accordance with their terms.

The opinion set forth herein is rendered as of the date hereof, and we assume no obligation to update such opinion to reflect any facts or circumstances which may hereafter come to our attention or any changes in the law which may hereafter occur (which may have retroactive effect). In addition, the foregoing opinion is qualified to the extent that (a) enforceability may be limited by and be subject to general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law (including, without limitation, concepts of notice and materiality), and by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' and debtors' rights generally (including, without limitation, any state or federal law in respect of fraudulent transfers); and (b) no opinion is expressed herein as to compliance with or the effect of federal or state securities or blue sky laws.

We hereby consent to the filing of this opinion as Exhibit 5.2 to the Registration Statement and to the reference to this firm under the caption "Legal Matters" in the Registration Statement and in any Registration Statement pursuant to Rule 462(b) under the Securities Act. In giving such consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission.

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| |
|:---|
| Very truly yours, |
| /s/ Greenberg Traurig, P.A.<u> </u> |
| **Greenberg Traurig, P.A.** |

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---

| |
|:---|
| **Greenberg Traurig, P.A. \| Attorneys at Law** |
| Azrieli Center, Round Tower \| 132 Menachem Begin Road, 30th Floor \| Tel Aviv, Israel 6701101 \| T +1 +972 (0) 3 636 6000 \| F +1 +972 (0) 3 636 6010 |
| www.gtlaw.com |

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## Exhibit 10.1

**Exhibit 10.1**

**SILENTIUM LTD.**

**<u>INDEMNIFICATION UNDERTAKING</u>**

Date: [●]

Dear [Mr. / Ms.] [●●]:

WHEREAS, at the request of Silentium Ltd. ("**Silentium**"), you served in the past, are currently serving or will serve in the future as an "Office Holder" ("*nosse misra*") of Silentium, as such term is defined in Section 1 of the Israeli Companies Law, 5759-1999 (including the regulations thereunder, the "**Companies Law**");

WHEREAS**,** both Silentium and you recognize the increased risk of litigation and other claims being asserted against Office Holders of companies and that highly competent persons have become more reluctant to serve corporations as directors and officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to, and activities on behalf of, companies;

WHEREAS, Silentium has determined that (i) the increased difficulty in attracting and retaining competent persons is detrimental to the best interests of Silentium's shareholders and that Silentium should act to assure such persons that there will be increased certainty of such protection in the future, and (ii) it is reasonable, prudent and necessary for Silentium to contractually obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, so that they will serve or continue to serve Silentium free from undue concern that they will not be so indemnified;

WHEREAS, Silentium's Articles of Association provide that it may indemnify and exculpate its Office Holders to the maximum extent permitted by applicable law;

WHEREAS, in recognition of your need for substantial protection against personal liability in order to assure your continued service to Silentium in an effective manner and, in part, in order to provide you with specific contractual assurance that the indemnification, insurance and exculpation afforded by Silentium's Articles of Association will be available to you, Silentium wishes to undertake in this Indemnification Undertaking (this "**Undertaking**") to indemnify you and to advance expenses to you to the maximum extent permitted by applicable law and as set forth in this Undertaking and provide for insurance and exculpation of you as set forth in this Undertaking; and

WHEREAS, this Undertaking is being issued to you in accordance with the approval of the shareholders of Silentium at the general meeting held on [●], 2026;

NOW THEREFORE, Silentium hereby confirms and undertakes to you as follows:

 **I. Indemnification**

1. ***Undertaking to Indemnify****.* Silentium hereby undertakes to indemnify you to the maximum extent permitted by applicable law for any liability and expense specified in subsections (a) through (f) below (each, an "**Indemnifiable Event**"), imposed on you due to or in connection with an act performed by you, either prior to or after the date hereof, in your capacity as an Office Holder, including as a director, officer, employee, observer, agent or fiduciary of Silentium, any subsidiary thereof or any another corporation, collaboration, partnership, joint venture, trust or other enterprise, in which you serve at any time at the request of Silentium (a "**Corporate Capacity**"):

&nbsp;&nbsp;&nbsp;&nbsp;a. Financial liability imposed on you in favor of any person pursuant to a judgment, including a judgment
rendered in the context of a settlement or an arbitration award confirmed by a court. For purposes of Section 1 of this Undertaking, the
term "person" shall include a natural person, firm, partnership, joint venture, trust, company, corporation, limited liability
entity, unincorporated organization, estate, government, municipality, or any political, governmental, regulatory or similar agency or
body.

&nbsp;&nbsp;&nbsp;&nbsp;b. Reasonable litigation expenses, including attorneys' fees, incurred by you as a result of an investigation
or any proceeding instituted against you by an authority that is authorized to conduct an investigation or proceeding, and that was concluded
without the filing of an indictment against you in a matter in which a criminal investigation has been instigated and without there being
imposed on you a financial obligation in lieu of a criminal proceeding, or that was concluded without the filing of an indictment against
you in a matter in which a criminal investigation has been instigated but with the imposition of a financial obligation in lieu of a criminal
proceeding with respect to an offense that does not require proof of *mens rea*, or in connection with a financial sanction. In this
paragraph:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. "conclusion of a proceeding without the filing of an indictment in a matter in which a criminal
investigation has been instigated" **–** shall have the meaning specified in Section 260(a)(1A) of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. "financial obligation in lieu of a criminal proceeding" – a financial liability imposed
by applicable law in lieu of a criminal proceeding, including an administrative fine under the Administrative Offenses Law, 5746-1985,
a fine for an offense categorized as a fine-bearing offense under the provisions of the Criminal Procedure Law, a financial sanction or
a penalty;

&nbsp;&nbsp;&nbsp;&nbsp;c. Reasonable litigation expenses, including attorneys' fees, incurred by you, or assessed against
you by a court, in a proceeding instituted against you by Silentium or on its behalf or by another person, or in a criminal charge from
which you are acquitted or in which you are convicted of an offense that does not require proof of *mens rea*.

&nbsp;&nbsp;&nbsp;&nbsp;d. Expenses incurred by you in connection with a proceeding pursuant to Article D of Chapter Four of Part
Nine of the Companies Law, as amended from time to time, including reasonable litigation expenses, and including attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;e. Expenses incurred by you in connection with a proceeding under the Israeli Economic Competition Law, 5748-1988,
which is conducted with respect to you, including reasonable litigation expenses, and including attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;f. Any other liability or other expense for which it is permitted or will be permitted by applicable law
to indemnify you, including in accordance with Section 56h(b)(1) of the Israeli Securities Law, 5728-1968.

For the purpose of this Undertaking, (i) the term "act performed in your capacity as an Office Holder" shall include any act, omission and failure to act and any other circumstances relating to or arising from your service in a Corporate Capacity and (ii) "expenses" shall include attorneys' fees and all other costs, expenses and obligations paid or incurred by you in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in any claim relating to any matter for which indemnification hereunder may be provided. Expenses shall be considered paid or incurred by you at such time as you are required to pay or incur such cost or expenses, including upon receipt of an invoice or payment demand.

If you so request in writing, and subject to Silentium's repayment and reimbursement rights set forth below and to any limitation imposed by applicable law, Silentium shall pay amounts to cover expenses with respect to which you are entitled to be indemnified under Section 1 above, as and when incurred. The payments of such amounts shall be made promptly by Silentium directly to your legal and other advisors, and any such payment shall be deemed to constitute indemnification hereunder. As part of such undertaking, Silentium will make available to you any security or guarantee that you may be required to post in accordance with an interim decision given by a court, governmental or administrative body, or an arbitrator, including for the purpose of substituting for liens imposed on your assets.

2. ***Scope of Coverage****.* Silentium's undertaking to indemnify you pursuant to <u>Section 1(a)</u> above and advance expenses thereunder is limited to liabilities and expenses deriving from your actions in the cases detailed in <u>Exhibit A</u> hereto. At the time of approval, the Board of Directors of Silentium (the "**Board**") determined, based on the then current activity of Silentium, that the events listed in Exhibit A hereto are reasonably anticipated and that the amount stated in Section 4 in connection therewith is reasonable. The indemnification provided under Section 1(a) shall not be subject to the limitations imposed by this Section 2, Section 4 and <u>Exhibit A</u> if and to the extent such limits are no longer required by the Companies Law.

3. ***Exclusions****.* Silentium shall not indemnify you for any financial liability imposed upon you for any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. breach of the duty of loyalty, unless you acted in good faith and had a reasonable basis to assume that
such action would not prejudice the best interests of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. intentional or reckless breach of the duty of care, but specifically excluding negligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. an action taken with the intention to unlawfully gain personal profit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. any fine, civil fine, financial sanction or penalty imposed on you.

4. ***Amount of indemnification***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The maximum aggregate amount of indemnification to be paid by Silentium to all Office Holders who are
entitled to indemnification, whether in advance or retroactively, according to all the indemnification undertakings that Silentium will
grant to the Office Holders (including indemnification undertakings granted to Office Holders of its direct and indirect subsidiaries),
if and to the extent it will grant the same, shall not exceed, in the aggregate, the greater of (i) 25% of shareholders' equity
(as reported in Silentium's last published consolidated financial statements prior to the event giving rise to the indemnification),
(ii) US$25.0 million or (iii) in connection with or arising out of a public offering of Silentium's securities, the aggregate gross
amount of proceeds from the sale of, or value exchanged in relation to, such securities by Silentium and/or any shareholder in such offering
(the "**Maximum Indemnification Amount** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If the total of the amounts for which all Office Holders are entitled to indemnification exceeds the Maximum
Indemnification Amount, each relevant Office Holder, including you, will receive indemnification based on the ratio between the amount
for which such Office Holder is liable and the aggregate amount for which all Office Holders are liable with respect to such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Silentium shall not be liable under this Undertaking to make any payment in connection with any Indemnifiable
Event to the extent you have otherwise actually received payment under any insurance policy or otherwise (without any obligation of you
to repay any such amount) of the amounts otherwise indemnifiable hereunder. Any amounts paid to you under such insurance policy or otherwise
after Silentium has indemnified you for such liability or expense shall be repaid by you to Silentium as soon as practical upon receipt
by you, in accordance with the terms set forth in Section 7.

5. ***Conditions for granting indemnification***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. You shall notify Silentium of any judicial or administrative proceeding ()"**Legal Proceeding** ")
that may be initiated against you, and of any suspicion or threat that any such Legal Proceeding may be initiated against you, promptly
after you first become aware of it, and you shall forward to Silentium or to whomever is designated by Silentium, without delay, any document
you receive in connection with such proceeding. The failure to so notify Silentium shall not relieve Silentium of any obligation which
it may have to the you under this Undertaking, or otherwise, unless and only to the extent that such failure or delay materially prejudices
Silentium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Silentium shall be entitled to assume your legal defense of such Legal Proceeding or to turn over such
defense to any counsel selected by Silentium for this purpose and reasonably acceptable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Silentium or such counsel shall be exclusively entitled to conduct your legal defense and to conclude
such proceeding as they deem fit. At the request of Silentium, you shall sign any document authorizing Silentium or such counsel to handle
your defense in such proceeding and to represent you in all matters related thereto, in accordance with the above. Silentium shall not
be liable to indemnify you under this Undertaking for any amounts or expenses paid in connection with a settlement of any action, claim
or otherwise, effected by you without Silentium's prior written consent (not to be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If Silentium acts in accordance with the provisions of subsection (c) above and you enable it to do so,
Silentium will cover all the other expenses and payments that are involved so that you will not be required to pay or finance them yourself,
without this detracting from the indemnification to which you are entitled pursuant to this Undertaking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. You shall fully cooperate with Silentium or any such counsel as may be required of you by any of them
as part of their dealing with such Legal Proceeding, provided that Silentium will cover all expenses involved so that you will not be
required to pay or finance them yourself.

6. ***Legal Proceeding Involving Silentium.*** Silentium may, from time to time, ask you to participate in or otherwise assist in a Legal Proceeding brought by, against or otherwise involving Silentium. In such case, Silentium will advance or promptly reimburse your reasonable expenses incurred in connection with your participation or assistance in such Legal Proceeding, subject to such guidelines and procedures as may be established by Silentium from time to time. Silentium's obligations under this Section 6 shall not be subject to the provisions or limitations of Sections ‎1 through ‎‎5 above.

7. ***Reimbursement of Expenses***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event that Silentium provides or is required to provide indemnification with respect to expenses
hereunder and at any time thereafter Silentium determines, based on advice from its legal counsel, that you were not entitled to such
payments, the amounts so indemnified by Silentium will be promptly repaid by you, unless you dispute Silentium's determination,
in which case your obligation to repay Silentium shall be postponed until such dispute is resolved by a court of competent jurisdiction
in a final and non-appealable order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Your obligation to repay Silentium for any expenses or other sums paid hereunder shall be deemed as a
loan given to you by Silentium subject to the minimum interest rate prescribed by Section 3(9) of the Income Tax Ordinance (New Version),
1961, or any other legislation replacing it, which is not considered a taxable benefit.

 **II. Insurance**

8. Silentium undertakes that, subject to the mandatory limitations under applicable law, as long as it may be obligated to provide indemnification and advance expenses under this Undertaking, Silentium will purchase and maintain in effect directors and officers liability insurance, which will include coverage for your benefit to the maximum extent of the coverage available for any director or officer under such policy or policies, providing coverage in amounts as reasonably determined by the Board; *provided* that Silentium shall have no obligation to obtain or maintain directors and officers insurance policy if Silentium determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions that it provides an insufficient benefit. Silentium hereby undertakes to notify you at least 30 days prior to the expiration or termination of the directors and officers insurance policy.

9. Silentium undertakes to give prompt written notice of the commencement of any claim hereunder to the insurers in accordance with the procedures set forth in each of the policies. Silentium shall thereafter diligently take all actions reasonably necessary under the circumstances to cause such insurers to pay, on your behalf, all amounts payable as a result of such action, suit, proceeding, inquiry or investigation in accordance with the terms of such policies. The above shall not derogate from Silentium's authority to freely negotiate or reach any compromise with the insurer which is reasonable in Silentium's sole discretion, provided that Silentium shall act in good faith and in a diligent manner.

10. Silentium hereby acknowledges that from time to time you may have certain rights to indemnification, advancement of expenses or insurance provided by third parties (collectively, the "**Secondary Indemnitors**"). Subject to the terms and conditions of this Undertaking, Silentium hereby agrees that (i) Silentium is the indemnitor of first resort (*i.e.* its obligations to you are primary and any obligation of the Secondary Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by you is secondary); (ii) Silentium shall be required to advance the full amount of expenses incurred by you and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Undertaking (or any other agreement between Silentium and you), without regard to any rights you may have against the Secondary Indemnitors; and (iii) Silentium irrevocably waives, relinquishes and releases the Secondary Indemnitors from any and all claims Silentium may have against the Secondary Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. Without altering or expanding any of Silentium's indemnification obligations hereunder, Silentium further agrees that no advancement or payment by the Secondary Indemnitors on behalf of you with respect to any claim for which you have sought indemnification from Silentium shall affect the foregoing and the Secondary Indemnitors shall have a right of contribution and be subrogated to the extent of such advancement or payment to all of the rights of recovery of you against Silentium. Silentium agrees that the Secondary Indemnitors are express third party beneficiaries of the terms of this section.

11. ***Partial Indemnification***. If you are entitled under any provision of this Undertaking to indemnification by Silentium for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred by you in connection with any proceedings, but not, however, for the total amount thereof, Silentium shall nevertheless indemnify you for the portion of such expenses, judgments, fines or penalties to which you are entitled under any provision of this Undertaking. Subject to the provisions of Section ‎5 above any amount received by you (under any insurance policy or otherwise) shall not reduce the Maximum Indemnification Amount hereunder and shall not derogate from Silentium's obligation to indemnify you in accordance with the provisions of this Undertaking up to the Maximum Indemnification Amount, as set forth in Section ‎4.

 **III. Exculpation**

12. To the maximum extent permitted by applicable law, Silentium hereby exculpates and releases you in advance and retrospectively from your responsibility, in whole or in part, to Silentium with respect to damages related to any breach of the duty of care to Silentium, except in those instances where Silentium cannot exculpate you in advance from your responsibility to Silentium, including with respect to the breach of the duty of care in connection with a "distribution" as such term is defined in the Companies Law.

 **IV. Validity of the Undertaking**

13. This Undertaking relates to your performance as an Office Holder of Silentium, or a director or officer, employee, observer, agent or fiduciary in the entities specified in the first paragraph of Section 1, and will be valid both with respect to proceedings taken against you during your term as an Office Holder, or director or officer, employee, observer, agent or fiduciary as above, and with respect to proceedings against you following the end of your term. This Undertaking shall also inure to the benefit of your heirs and other legal substitutes.

14. This Undertaking supersedes any prior undertaking for indemnification, if given to you in the past; however, this Undertaking does not derogate from or waive any other indemnification or exculpation to which you are entitled from any other source by applicable law or by any other undertaking.

15. This Undertaking shall not restrict Silentium or prevent it from granting additional or special indemnification or exculpation, provided that this does not prejudice the indemnification and exculpation that are the subject of this Undertaking.

16. Your rights hereunder shall not be deemed exclusive of any other rights that you may have under Silentium's Articles of Association, applicable law or otherwise, and to the extent that during the indemnification period the indemnification rights of the then-serving Office Holders are more favorable to such Office Holders than the indemnification rights provided hereunder to you, you shall be entitled to the full benefits of such more favorable indemnification rights to the extent permitted by law. To the extent that a change in the law, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under Silentium's Articles of Association of Silentium and this Undertaking, then you shall enjoy by this Undertaking the greater benefits so afforded by such change.

 **V. Miscellaneous**

17. ***Duration of Undertaking***. All agreements and obligations of Silentium contained herein shall continue during the period you are an Office Holder of Silentium (or are or were serving at the request of Silentium as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as you may be subject to any proceeding by reason of your Corporate Capacity, whether or not you are acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Undertaking. This Undertaking shall continue in effect regardless of whether you continue to serve as an Office Holder of Silentium or any affiliated company at Silentium's request.

18. ***Amendments and Waivers***. This Undertaking shall constitute a binding undertaking by Silentium enforceable in accordance with its terms. Any amendment, addition or omission will be valid only upon execution of a written agreement signed by the parties hereto. No amendment, alteration or repeal of this Undertaking or of any provision hereof shall limit or restrict any of your rights under this Undertaking in respect of any action taken or omitted by you prior to such amendment, alteration or repeal, unless caused by a change to the law that cannot be altered contractually. No waiver of any of the provisions of this Undertaking shall be deemed to or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. Any waiver shall be in writing.

19. ***Notices***. All notices and other communications given or made pursuant to this Undertaking shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified or (b), if sent by electronic mail or facsimile (with electronic confirmation of receipt) on the recipient's next business day.

20. ***Successors and Assigns***. This Undertaking shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of Silentium), assigns, spouses, heirs, executors and personal and legal representatives. If in connection with a purchase, merger, consolidation or otherwise to all or substantially all of the Silentium's business or assets, Silentium purchases a directors and officers' "tail" or "run-off" policy for the benefit of its then serving Office Holders, then such policy shall cover you and such coverage shall be deemed to be in satisfaction of the insurance requirements under this Agreement. This Undertaking shall continue in effect during the indemnification period regardless of whether you continue to serve in a Corporate Capacity.

21. ***Governing Law***. This Undertaking shall be governed by the laws of the State of Israel. The competent courts of the State of Israel located in Tel Aviv shall have exclusive jurisdiction over all matters in connection with this Undertaking, including its validity, construction, extent or cancellation. Each party irrevocably submits to the exclusive jurisdiction of such courts, and no other forum shall have any jurisdiction.

22. ***Enforcement***. Silentium expressly confirms and agrees that it has entered into this Undertaking and assumed the obligations imposed on it hereby in order to induce you to serve as an Office Holder of Silentium, and Silentium acknowledges that you are relying upon this Undertaking in serving as an Office Holder of Silentium.

23. ***Counterparts; Facsimile***. This Undertaking may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

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| Sincerely, |
| **Silentium Ltd.** |
| By: |
| Name: |
| Title: |

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| I hereby agree to the conditions of the above Indemnification Undertaking: |
| By: |
| Name: |

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EXHIBIT A

<u>INDEMNITY EVENTS</u>\*

&nbsp;&nbsp;&nbsp;&nbsp;a. actions or omissions deriving from Silentium being public or traded on a stock exchange, or relating to
an offer to the public or the public or private issuance of securities of Silentium by Silentium or by a shareholder, whether such liabilities
and expenses relate to the securities laws of the United States, of Israel or of any other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;b. any claims that matters that were required to be included in public disclosures were not disclosed as
required by applicable law, whether such liabilities and expenses relate to the securities laws of the United States, of Israel or of
any other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;c. your actions or omissions in a Corporate Capacity relating to the operations and management of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;d. actions or omissions in connection with investments Silentium makes in other entities, whether before
or after the investment is made, for the purpose of entering into, effecting, developing, monitoring and supervising the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;e. actions or omissions relating to the purchase or sale of companies, legal entities or their assets, their
splitting or merging;

&nbsp;&nbsp;&nbsp;&nbsp;f. any sale, purchase or holding of marketable securities, or other investments for or on behalf of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;g. actions or omissions relating to patents, trademarks, copyrights and other intellectual property of Silentium,
including their protection, including by registration or assertion of rights to intellectual property and the defense of claims relating
thereof;

&nbsp;&nbsp;&nbsp;&nbsp;h. actions or omissions relating to Silentium's labor relations or Silentium's commercial relationships,
including with employees, independent contractors, customers, suppliers and other service providers;

&nbsp;&nbsp;&nbsp;&nbsp;i. any "Transaction" as defined in Section 1 of the Companies Law, including without limitation
actions concerning the approval of transactions with Office Holders or shareholders, including controlling persons ;

&nbsp;&nbsp;&nbsp;&nbsp;j. actions or omissions relating to the distribution of dividends or repurchase of shares or returns of capital
or loans of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;k. actions or omissions relating to tender offers, including actions relating to delivery of opinions in
relation thereto, of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;l. actions or omissions relating to a merger or restructuring of Silentium, including events in connection
with change in ownership or in the structure of Silentium, its reorganization, dissolution, winding up, any other arrangements concerning
creditors rights or any decision concerning any of the foregoing, including but not limited to, merger, sale or acquisition of assets,
division, spin off, divestiture, change in capital;

&nbsp;&nbsp;&nbsp;&nbsp;m. actions or omissions relating to environmental matters;

&nbsp;&nbsp;&nbsp;&nbsp;n. actions or omissions in connection with any restrictive trade practice or monopolies of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;o. actions or omissions in connection with an affiliated company;

&nbsp;&nbsp;&nbsp;&nbsp;p. actions or omissions in connection with the testing of products and services developed by Silentium or
in connection with the distribution, sale, license and use of such products and services, including clinical studies;

&nbsp;&nbsp;&nbsp;&nbsp;q. actions or omissions in connection with the preparation and approval of financial or tax statements of
Silentium, including any action, consent or approval related to or arising from the foregoing, including engagement of or execution of
certificates for the benefit of third parties related to the financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;r. management of Silentium's bank accounts, including money management, foreign currency deposits,
securities, loans and credit facilities, credit cards, bank guarantees, letters of credit, consultation agreements concerning investments
including with portfolio managers, hedging transactions, options, futures, and the like;

&nbsp;&nbsp;&nbsp;&nbsp;s. actions or omissions taken pursuant to or in accordance with the policies and procedures of Silentium,
whether such policies and procedures are published or not;

&nbsp;&nbsp;&nbsp;&nbsp;t. representations and warranties made in good faith in connection with the business of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;u. any claim or demand made by any lenders or other creditors or for monies borrowed by, or other indebtedness
of Silentium;

&nbsp;&nbsp;&nbsp;&nbsp;v. any claim or demand made directly or indirectly in connection with complete or partial failure by Silentium,
or its respective directors, officers and employees, to pay, report, keep applicable records or otherwise, any state, municipal or foreign
taxes or other mandatory payments of any nature whatsoever, including income, sales, use, transfer, excise, value added, registration,
severance, stamp, occupation, customs, duties, real property, personal property, capital stock, social security, unemployment, disability,
payroll or employee withholding or other withholding, including any interest, penalty or addition thereto, whether disputed or not;

&nbsp;&nbsp;&nbsp;&nbsp;w. claims in connection with laws and regulations, including violations of laws and regulations requiring
Silentium to obtain regulatory and governmental licenses, permits and authorizations, laws related to any governmental grants in any jurisdiction
and laws regarding invasion of privacy, including with respect to databases, and AI and laws and regulations in regard of slander;

&nbsp;&nbsp;&nbsp;&nbsp;x. Any administrative, regulatory, judicial, civil or criminal, actions orders, decrees, suits, demands,
demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance, violation or breaches alleging potential
responsibility, liability, loss or damage (including potential responsibility or liability for costs of enforcement, investigation, cleanup,
governmental response, removal or remediation, property damage or penalties, or for contribution, indemnification, cost recovery, compensation
or injunctive relief), whether alleged or claimed by customers, consumers, regulators, shareholders or others, arising out of, based on
or related to: (a) cyber security, cyber-attacks, data loss or breaches, unauthorized access to databases and use or disclosure of
information contained therein, not preventing or detecting the breach or failing to otherwise disclose or respond to the breach; (b) circumstances
forming the basis of any violation of any law, permit, license, registration or other authorization required under applicable law governing
data security, data protection, network security, information systems, privacy or any cyber environment (including, users, networks, devices,
software, processes, information systems, databases, information in storage or transit, applications, services, and systems that can be
connected directly or indirectly to networks); (c) failure to implement a reporting system or control, or failure to monitor or oversee
the operation of such a system; (d) data destruction, extortion, theft, hacking, and denial of service attacks; losses or liabilities
to others caused by errors and omissions, failure to safeguard data or defamation; or (e) security-audit, post-incident public relations
and investigative expenses, criminal reward funds, data breach/privacy crisis management (including, management of an incident, investigation,
remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory
fines), extortion liability (including, losses due to a threat of extortion, professional fees related to dealing with the extortion),
or network security liability (including, losses as a result of denial of access, costs related to data on third-parties and costs related
to the theft of data on third-party systems);

&nbsp;&nbsp;&nbsp;&nbsp;y. claims by any third party suffering any personal injury or any property damage to business or personal
property through any act or omission attributed to Silentium or its products or services, or its employees, agents or other persons acting
or allegedly acting on their behalf, including failure to make proper safety arrangements for Silentium or its employees and liabilities
arising from any accidental or continuous damage or harm to Silentium's employees, its contractors, its guests and visitors as a
result of an accidental or continuous event, or employment conditions, permanent or temporary, in Silentium's offices;

&nbsp;&nbsp;&nbsp;&nbsp;z. claims relating to participation or non-participation at Board (including committees of the Board) meetings,
or bona fide expression of opinion or voting or abstention from voting at such Board meetings including, in each case, any committee thereof,
as well as expression of any opinion publicly in connection with service as an Office Holder and including claims of failure to exercise
business judgment and a reasonable level of proficiency, expertise and care or any other applicable standard with respect to the Company's
business;

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|:---|:---|
| aa. | violations of or failure to comply with securities laws, and any regulations or other rules promulgated thereunder, of any jurisdiction, including claims under the U.S. Securities Act of 1933, as amended, or the U.S. Securities Exchange Act of 1934, as amended, or under the Israeli Securities Law, 5728-1968, fraudulent disclosure claims, failure to comply with any securities authority or any stock exchange disclosure or other rules and any other claims relating to relationships with investors, debt holders, shareholders, optionholders, holders of any other equity or debt instrument of Silentium, and otherwise with the investment community (including any such claims relating to merger, change in control, issuances of securities, restructuring, spin out, spin off, divestiture, recapitalization or any other transaction relating to the corporate structure or organization of Silentium); claims relating to or arising out of financing arrangements, any breach of financial covenants or other obligations towards investors, lenders or debt holders, class actions, violations of laws requiring Silentium to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction, including in connection with disclosure, offering or other transaction related documents; actions taken in connection with the issuance, purchase, holding or disposition of any type of securities of Silentium, including the grant of options, warrants or other rights to purchase any of the same or any offering of Silentium's securities (whether on behalf of Silentium or on behalf of any holders of securities of Silentium) to private investors, underwriters, resellers or to the public, and listing of such securities, or the offer by Silentium to purchase securities from the public or from private investors or other holders, and any undertakings, representations, warranties and other obligations related to any of the foregoing or to Silentium's status as a public company or as an issuer of securities; |

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| bb. | any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental or regulatory entity or authority or any other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental entity applicable to Silentium or any of its businesses, assets or operations, or the terms and conditions of any operating certificate or licensing agreement; |

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&nbsp;&nbsp;&nbsp;&nbsp;cc. Liabilities arising in connection with development of any products or services developed, distributed,
rendered, sold, provided, licensed or marketed by Silentium, and any actions or omission in connection with the distribution, provision,
sale, marketing, license or use of such products or services, including without limitation in connection with professional liability and
product liability claims;

&nbsp;&nbsp;&nbsp;&nbsp;dd. Liabilities arising in connection with the conduct of testing, development or manufacturing of any products
or services developed, distributed, rendered, sold, provided, licensed or marketed by Silentium, and any actions in connection with the
distribution, provision, sale, marketing, license or use of such products or services, including without limitation in connection with
professional liability and product liability claims; and

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| | |
|:---|:---|
| ee. | Any claim or demand not expressly covered by any of the categories of events described above, which, pursuant to any applicable law, an office holder of Silentium may reasonably be held liable to any government or agency thereof, or any person or entity, in connection with actions taken by such office holder in such capacity. |

---

*\* For the sake of clarity, in the subsections detailed in this Exhibit A, Silentium shall mean to include subsidiaries and affiliated companies in which you serve as an Office Holder in matters related thereto.*

## Exhibit 10.2

**Exhibit 10.2**

**Silentium Ltd.**

**Compensation Policy**

**2026**

&nbsp;&nbsp;&nbsp;&nbsp;**A.**  **<u>Overview and Objectives</u>** 

---

| | |
|:---|:---|
| **1** | **Introduction** |

---

This document sets forth the Compensation Policy for Executive Officers and Directors (this "**Compensation Policy**" or "**Policy**") of Silentium Ltd. ("**Silentium**" or the "**Company**"), in accordance with the requirements of the Companies Law, 5759-1999 and the regulations promulgated thereunder (the "**Companies Law**").

Compensation is a key component of Silentium's overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals that will enhance Silentium's value and otherwise assist Silentium to reach its business and financial long-term goals. Accordingly, the structure of this Policy is established to tie the compensation of each officer to Silentium's goals and performance.

For purposes of this Policy, "Executive Officers" shall mean "Office Holders" as such term is defined in Section 1 of the Companies Law, excluding, unless otherwise expressly indicated herein, Silentium's directors.

This Policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law to the extent not permitted.

This Policy shall apply to compensation agreements and arrangements which will be approved after the date on which this Policy is adopted and shall serve as Silentium's Compensation Policy for five (5) years, commencing as of its adoption, unless amended earlier.

The Compensation Committee and the Board of Directors of Silentium (the "**Compensation Committee**" and the "**Board**", respectively) shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law.

Any deviation from any cap set forth in this Policy by up to 10% shall not be deemed to be a deviation and the compensation shall be viewed as compensation in compliance with this Policy and its provisions.

---

| | |
|:---|:---|
| **2** | **Objectives** |

---

Silentium's objectives and goals in setting this Policy are to attract, motivate and retain experienced and talented leaders who will contribute to Silentium's success and enhance shareholder value, while demonstrating professionalism in an achievement-oriented and merit-based culture that rewards long-term excellence, and embedding and modeling Silentium's core values as part of a motivated behavior. To that end, this Policy is designed, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 To closely
 align the interests of the Executive Officers with those of Silentium's shareholders
 in order to enhance shareholder value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 To align
 a significant portion of the Executive Officers' compensation with Silentium's
 short and long-term goals and performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 To provide
 the Executive Officers with a structured compensation package, including competitive salaries,
 performance-motivating cash and equity incentive programs and benefits, and to be able to
 present to each Executive Officer an opportunity to advance in a growing organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 To strengthen
 the retention and the motivation of Executive Officers in the long-term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 To provide
 appropriate awards in order to incentivize superior individual excellence and corporate performance;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 To maintain
 consistency in the way Executive Officers are compensated.

---

| | |
|:---|:---|
| **3** | **Compensation Instruments** |

---

Compensation instruments under this Policy may include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Base
 salary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Cash
 bonuses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Equity
 based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Change
 of control provisions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Retirement
 and termination terms.

---

| | |
|:---|:---|
| **4** | **Overall Compensation - Ratio Between Fixed and Variable Compensation** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 This
 Policy aims to balance the mix of "Fixed Compensation" (comprised of base salary
 and benefits) and "Variable Compensation" (comprised of cash bonuses and equity-based
 compensation) in order to, among other things, appropriately incentivize Executive Officers
 to meet Silentium 's short and long-term goals
 while taking into consideration the Company's need to manage a variety of business
 risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The
 total annual target bonus and equity-based compensation per vesting annum (based on the fair
 market value at the time of grant calculated on a linear basis) of each Executive Officer
 shall not exceed 95% of such Executive Officer's total compensation package for such
 year.

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| | |
|:---|:---|
| **5** | **Inter-Company Compensation Ratio** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 In
 the process of drafting this Policy, the Board and
 Compensation Committee have examined the ratio between employer cost associated with the
 engagement of the Executive Officers, including directors, and the average and median employer
 cost associated with the engagement of Silentium 's
 other employees (including contractor employees as defined in the Companies Law) (the "**Ratio** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The
 possible ramifications of the Ratio on the daily working environment in Silentium were examined and will continue to be examined by Silentium from time to time in order to ensure that levels of executive compensation, as compared to
 the overall workforce will not have a negative impact on work relations in Silentium.

&nbsp;&nbsp;&nbsp;&nbsp;**B.**  **<u>Base Salary and Benefits</u>** 

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| | |
|:---|:---|
| **6** | **Base Salary** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 A base
 salary provides stable compensation to Executive Officers and allows Silentium to attract
 and retain competent executive talent and maintain a stable management team. The base salary
 varies among Executive Officers, and is individually determined according to the educational
 background, prior vocational experience, qualifications, corporate role, business responsibilities
 and past performance of each Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Since
 a competitive base salary is essential to Silentium's ability to attract and retain
 highly skilled professionals, Silentium will seek to establish a base salary that is competitive
 with base salaries paid to Executive Officers in a peer group of other companies operating
 in sectors that are as much as possible similar in their characteristics to Silentium. To
 that end, Silentium shall aim to have a comparative market data and practices as a reference,
 including a survey comparing and analyzing the level of the overall compensation package
 offered to an Executive Officer with compensation packages for persons serving in similar
 positions (to that of the relevant officer) in the peer group. Such compensation survey may
 be conducted internally or through an external independent consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The
 Compensation Committee and the Board may periodically consider and approve base salary adjustments
 for Executive Officers. The main considerations for salary adjustment will be similar to
 those used in initially determining the base salary, but may also include change of role
 or responsibilities, recognition for professional achievements, regulatory or contractual
 requirements, budgetary constraints or market trends. The Compensation Committee and the
 Board will also consider the previous and existing compensation arrangements of the Executive
 Officer whose base salary is being considered for adjustment. Any limitation herein based
 on the annual base salary shall be calculated based on the monthly base salary applicable
 at the time of consideration of the respective grant or benefit.

---

| | |
|:---|:---|
| **7** | **Benefits** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 The
 following benefits may be granted to the Executive Officers in order, among other things,
 to comply with legal requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 Vacation
 days in accordance with market practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 Sick
 days in accordance with market practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3 Convalescence
 pay according to applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.4 Monthly
 remuneration for a study fund, as allowed by applicable law and with reference to Silentium 's
 practice and the practice in peer group companies (including contributions on bonus payments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.5 Silentium shall contribute on behalf of the Executive Officer to an insurance
 policy or a pension fund, as allowed by applicable law and with reference to Silentium 's
 policies and procedures and the practice in peer group companies (including contributions
 on bonus payments); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.6 Silentium shall contribute on behalf of the Executive Officer towards
 work disability insurance, as allowed by applicable law and with reference to Silentium 's
 policies and procedures and to the practice in peer group companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Non-Israeli
 Executive Officers may receive other similar, comparable or customary benefits as applicable
 in the relevant jurisdiction in which they are employed. Such customary benefits shall be
 determined based on the principles otherwise set forth in this Policy (with the necessary
 changes and adjustments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 In the
 events of relocation and/or repatriation of an Executive Officer to another geography, such
 Executive Officer may receive other similar, comparable or customary benefits as applicable
 in the relevant jurisdiction in which he or she is employed or additional payments to reflect
 adjustments in the cost of living. Such benefits may include reimbursement for out-of-pocket
 one-time payments and other ongoing expenses, such as a housing allowance, a car allowance,
 home leave visit, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Silentium
 may offer additional benefits to its Executive Officers, which will be comparable to customary
 market practices, such as, but not limited to: cellular and land line phone benefits, company
 car and travel benefits, reimbursement of business travel including a daily stipend when
 traveling and other business related expenses, insurances, other benefits (such as newspaper
 subscriptions, academic and professional studies), etc., provided, however, that such additional
 benefits shall be determined in accordance with Silentium's policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;**C.**  **<u>Cash Bonuses</u>** 

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| | |
|:---|:---|
| **8** | **Annual Cash Bonuses - The Objective** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Compensation
 in the form of an annual cash bonus is an important element in aligning the Executive Officers'
 compensation with Silentium's objectives and business goals. Therefore, annual cash
 bonuses will reflect a pay-for-performance element, with payout eligibility and levels determined
 based on actual financial and operational results, in addition to other factors the Compensation
 Committee may determine, including individual performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 An annual
 cash bonus may be awarded to Executive Officers upon the attainment of pre-set periodical
 objectives and individual targets determined by the Compensation Committee (and, if required
 by law, by the Board) for each fiscal year, or in connection with such officer's engagement,
 in case of newly hired Executive Officers, taking into account Silentium's short and
 long-term goals, as well as its compliance and risk management policies. The Compensation
 Committee and the Board may also determine applicable minimum thresholds that must be met
 for entitlement to the annual cash bonus (all or any portion thereof) and the formula for
 calculating any annual cash bonus payout, with respect to each fiscal year, for each Executive
 Officer. In special circumstances, as determined by the Compensation Committee and the Board
 (e.g., regulatory changes, significant changes in Silentium's business environment,
 a significant organizational change, significant merger and acquisition events, etc.), the
 Compensation Committee and the Board may modify the objectives and/or their relative weight
 during the fiscal year or may modify payouts following the conclusion of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 In the
 event that the employment of an Executive Officer is terminated prior to the end of a fiscal
 year, the Company may (but shall not be obligated to) pay such Executive Officer an annual
 cash bonus (which may or may not be pro-rated) assuming the Executive Officer is otherwise
 entitled to an annual cash bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 The
 actual annual cash bonus to be paid to Executive Officers shall be approved by the Compensation
 Committee and the Board.

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| | |
|:---|:---|
| **9** | **Annual Cash Bonuses - The Formula** |

---

<u>Executive Officers other than the CEO</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 The
 performance objectives for the annual cash bonus of Executive Officers, other than Silentium's
 chief executive officer (the "CEO"), shall be approved by the Board of Directors
 after recommendation of the Compensation Committee and the CEO and may be based on company,
 division/departmental/business unit and individual objectives. Measurable performance objectives,
 which include the objectives and the weight to be assigned to each achievement in the overall
 evaluation, which will be based on actual financial and operational results, such as (by
 way of example and not by way of limitation) revenues, operating income and cash flows and
 may further include, divisional or personal objectives which may include operational objectives,
 such as (by way of example and not by way of limitation) market share, initiation of new
 markets and operational efficiency, customer focused objectives, project milestones objectives
 and investment in human capital objectives, such as (by way of example and not by way of
 limitation) employee satisfaction, employee retention and employee training and leadership
 programs. The Company may also grant annual cash bonuses to the Executive Officers, other
 than the CEO, on a discretionary basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 The
 target annual cash bonus (not including any commissions in the case of Commission Based Executive
 Officers (as defined below)) that an Executive Officer, other than the CEO, will be entitled
 to receive for any given fiscal year, will not exceed 100% of such Executive Officer's
 annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 The
 maximum annual cash bonus (not including any commissions in the case of Commission Based
 Executive Officers), including for overachievement performance, that an Executive Officer,
 other than the CEO, will be entitled to receive for any given fiscal year, will not exceed
 150% of such Executive Officer's annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 The
 annual commissions that any Executive Officer in a role with the Company which the Compensation
 Committee and the Board determine should be compensated in the form of commissions (collectively,
 the "**Commission Based Executive Officers**") will not exceed 3% of the Company's
 revenue for such given fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 All
 or part pf the Annual Cash Bonuses may be paid in cash or in equity (whether fully vested
 on the date of grant or not).

<u>CEO</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 The
 annual cash bonus of the CEO will be mainly based on measurable performance objectives and
 may be subject to minimum thresholds as provided in Section 8.2 above. Such measurable performance
 objectives will be determined annually by the Compensation Committee (and, if required by
 law, by the Board) and will be based on company and personal objectives. These measurable
 performance objectives, which include the objectives and the weight to be assigned to each
 achievement in the overall evaluation, will be based on overall company performance measures,
 which are based on actual financial and operational results, such as (by way of example and
 not by way of limitation) revenues, sales, operating income, EBITDA, cash flow or the Company's
 annual operating plan and long-term plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 The
 less significant part of the annual cash bonus granted to the CEO, and in any event not more
 than 30% of the annual cash bonus (or 3 base salaries, whichever is higher), may be based
 on a discretionary evaluation of the CEO's overall performance by the Compensation
 Committee and the Board based on quantitative and qualitative criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 The
 target annual cash bonus that the CEO will be entitled to receive for any given fiscal year,
 will not exceed 200% of the CEO's annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 The
 maximum annual cash bonus including for overachievement performance that the CEO will be
 entitled to receive for any given fiscal year, will not exceed 250% of the CEO's annual
 base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 All
 or part pf the Annual Cash Bonuses of the CEO may be paid in cash or in equity (whether fully
 vested on the date of grant or not).

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| | |
|:---|:---|
| **10** | **Other Bonuses** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Special Bonus</u>. Silentium may grant its Executive Officers a special bonus as an award for special
 achievements (such as in connection with mergers and acquisitions, offerings, or special
 recognition in case of retirement or any other special achievement) or as a retention award
 at the CEO's discretion for Executive Officers other than the CEO (and in the CEO's
 case, at the Compensation Committee's and the Board's discretion), subject to
 any additional approval as may be required by the Companies Law and to the limitations set
 by the Companies Law (the "**Special Bonus** "). Any such Special Bonus will
 not exceed 200% of the Executive Officer's annual base salary. A Special Bonus can
 be paid, in whole or in part, in equity (whether fully vested on the date of grant or not)
 in lieu of cash and the value of any such equity component of a Special Bonus shall be determined
 in accordance with Section **‎** 13.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Signing Bonus</u>. Silentium may grant a newly recruited Executive Officer a signing bonus. Any such
 signing bonus shall be granted and determined at the CEO's discretion for Executive
 Officers other than the CEO (and in the CEO's case, at the Compensation Committee's
 and the Board's discretion), subject to any additional approval as may be required
 by the Companies Law (the "**Signing Bonus** "). Any such Signing Bonus will
 not exceed 100% of the Executive Officer's annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Relocation/ Repatriation Bonus</u>. Silentium may grant its Executive Officers a special bonus in the
 event of relocation or repatriation of an Executive Officer to another geography (the "**Relocation Bonus** "). Any such Relocation Bonus will include customary benefits associated with
 such relocation and its monetary value will not exceed 100% of the Executive Officer's
 annual base salary.

---

| | |
|:---|:---|
| **11** | **Policy for Recovery of Erroneously Awarded Compensation** |

---

The Policy for Recovery of Erroneously Awarded Compensation attached hereto as an <u>Appendix A</u> to Policy shall be incorporated into, and be deemed an integral part of, this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;**D.**  **<u>Equity Based Compensation</u>** 

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| | |
|:---|:---|
| **12** | **The Objective** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 The
 equity-based compensation for the Executive Officers will be designed in a manner consistent
 with the underlying objectives of the Company in determining the base salary and the annual
 cash bonus, with its main objectives being to enhance the alignment between the Executive
 Officers' interests with the long-term interests of Silentium and its shareholders,
 and to strengthen the retention and the motivation of Executive Officers in the long term.
 In addition, since equity-based awards are structured to vest over multiple years, their
 incentive value to recipients is aligned with longer-term strategic plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 The
 equity-based compensation offered by Silentium is intended to be in the form of share options
 and/or other equity-based awards, such as restricted shares, restricted stock units or performance
 stock units, in accordance with the Company's equity incentive plan in place as may
 be updated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 All
 equity-based incentives granted to Executive Officers (other than bonuses paid in equity
 in lieu of cash) shall normally be subject to vesting periods in order to promote long-term
 retention of the awarded Executive Officers. Unless determined otherwise in a specific award
 agreement or in a specific compensation plan approved by the Compensation Committee and the
 Board, grants to Executive Officers other than non-employee directors shall vest based on
 time, in one or more installments, gradually over a period of at least two (2) to four (4)
 years, or based on performance. The vesting schedule may be accelerated upon special circumstances
 as shall be determined by the Board. The exercise price of options (if granted) shall not
 be less than the closing price per share of the Company's ordinary shares on the primary
 stock exchange (or OTC market, if the ordinary shares are not then listed on a stock exchange)
 on the trading day immediately preceding the date of the Board approval of such grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 All
 other terms of the equity awards shall be in accordance with Silentium's incentive
 plans and other related practices and policies. Accordingly, the Board may, following approval
 by the Compensation Committee, make modifications to such awards consistent with the terms
 of such incentive plans, subject to any additional approval as may be required by the Companies
 Law.

---

| | |
|:---|:---|
| **13** | **General Guidelines for the Grant of Awards** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 The
 equity-based compensation shall be granted from time to time and be individually determined
 and awarded according to the performance, educational background, prior business experience,
 qualifications, corporate role and the personal responsibilities of the Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 In
 determining the equity-based compensation granted to each Executive Officer, the Compensation
 Committee and the Board shall consider the factors specified in Section 13.1 above, and in
 any event, the total fair market value of an annual equity-based compensation award at the
 time of grant <sup>1</sup> (not including bonuses paid
 in equity in lieu of cash) shall not exceed: (i) with respect to the CEO – 300% of
 his or her annual base salary; and (ii) with respect to each of the other Executive
 Officers - 300% of his or her annual base salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 The
 fair market value of the equity-based compensation for the Executive Officers will be determined
 by multiplying the number of shares underlying the grant by the market price of Silentium's
 ordinary shares on or around the time of the grant or according to other acceptable valuation
 practices at the time of grant, in each case, as determined by the Compensation Committee
 and the Board.

<sup>1</sup> For the purpose of this Policy, the time of grant shall mean the date of the board approval of the equity grant.

&nbsp;&nbsp;&nbsp;&nbsp;**E.**  **<u>Retirement and Termination of Service Arrangements</u>** 

---

| | |
|:---|:---|
| **14** | **Advanced Notice Period** |

---

Silentium may provide an Executive Officer, on the basis of the Executive Officer's seniority in the Company, the Executive Officer's contribution to the Company's goals and achievements and the circumstances of the Executive Officer's retirement prior notice of termination of up to twelve (12) months in the case of the CEO and six (6) months in the case of other Executive Officers, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of the Executive Officer's equity-based compensation. Such advance notice may or may not be provided in addition to severance, provided, however, that the Compensation Committee shall take into consideration the Executive Officer's entitlement to advance notice in establishing any entitlement to severance and vice versa. Silentium shall be entitled to waive the employment or service of an Executive Officer (including the CEO) during the course of the prior notice period, in whole or in part, provided that it continues to make all of the payments and provide all benefits s/he is due under his/her employment agreement and applicable law. Alternatively, Silentium shall be entitled to terminate the Executive Officer's (including Silentium CEO) service without prior notice provided that the Company pays the officer (including Silentium CEO), on the date of the termination of his employment, payments that shall not be less than the payments he is owed in lieu of the prior notice period (and, without limitation salary, vacation days and all payments and benefits he is due under this employment agreement and applicable law)

---

| | |
|:---|:---|
| **15** | **Adjustment Period** |

---

Silentium may provide an additional adjustment period of up to six (6) months to the CEO or to any other Executive Officer according to the Executive Officer's seniority in the Company, his/her contribution to the Company's goals and achievements and the circumstances of retirement, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of the Executive Officer's equity-based compensation.

---

| | |
|:---|:---|
| **16** | **Additional Retirement and Termination Benefits** |

---

Silentium may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory severance pay under Israeli labor laws), or which will be comparable to customary market practices.

---

| | |
|:---|:---|
| **17** | **Non-Compete Grant** |

---

Upon termination of employment and subject to applicable law, Silentium may grant to its Executive Officers a non-compete grant as an incentive to refrain from competing with Silentium for a defined period of time. The terms and conditions of the non-compete grant shall be decided by the Board and shall not exceed such Executive Officer's monthly base salary multiplied by twelve (12). The Board shall consider the existing entitlements of the Executive Officer in connection with the consideration of any non-compete grant.

---

| | |
|:---|:---|
| **18** | **Limitation Retirement and Termination of Service Arrangements** |

---

The total non-statutory payments under Section 14-17 above for a given Executive Officer shall not exceed the Executive Officer's monthly base salary multiplied by twenty-four (24). The limitation under this Section 18 does not apply to benefits and payments provided under other chapters of this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;**F.**  **<u>Exculpation, Indemnification and Insurance</u>** 

---

| | |
|:---|:---|
| **19** | **Exculpation** |

---

Each and every director and Executive Officer may be exempted in advance for all or any of his/her liability for damage in consequence of a breach of the duty of care, to the fullest extent permitted by applicable law.

---

| | |
|:---|:---|
| **20** | **Insurance and Indemnification** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 Silentium may indemnify its directors and Executive Officers to the fullest
 extent permitted by applicable law, for any liability and expense that may be imposed on
 the director or the Executive Officer, as provided in the indemnity agreement between such
 individuals and Silentium all subject to applicable
 law and the Company's articles of association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 Silentium will provide directors' and officers' liability
 insurance (the "**Insurance Policy**") for its directors and Executive Officers as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.1 The
 limit of liability of the insurer shall not exceed the greater of $100 million or 50% of
 the Company's shareholders equity based on the most recent financial statements of
 the Company at the time of approval of the Insurance Policy by the Compensation Committee;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.2 The
 Insurance Policy, as well as the limit of liability and the premium for each extension or
 renewal shall be approved by the Compensation Committee (and, if required by law, by the
 Board) which shall determine that the sums are reasonable considering Silentium's exposures,
 the scope of coverage and the market conditions and that the Insurance Policy reflects the
 current market conditions and that it shall not materially affect the Company's profitability,
 assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 Upon circumstances to be
 approved by the Compensation Committee (and, if required by law, by the Board), Silentium
 shall be entitled to enter into a "run off" Insurance Policy (the "**Run-Off Policy**") of up to seven (7) years, with the same
 insurer or any other insurance, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.1 The
 limit of liability of the insurer shall not exceed the greater of $100 million or 50% of
 the Company's shareholders equity based on the most recent financial statements of
 the Company at the time of approval by the Compensation Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.2 The
 Run-Off Policy, as well as the limit of liability and the premium for each extension or renewal
 shall be approved by the Compensation Committee (and, if required by law, by the Board) which
 shall determine that the sums are reasonable considering the Company's exposures covered
 under such policy, the scope of coverage and the market conditions and that the Run-Off Policy
 reflects the current market conditions and that it shall not materially affect the Company's
 profitability, assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 Silentium may extend an Insurance Policy in effect to include coverage
 for liability pursuant to a future public offering of securities as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4.1 The
 Insurance Policy, as well as the additional premium shall be approved by the Compensation
 Committee (and if required by law, by the Board) which shall determine that the sums are
 reasonable considering the exposures pursuant to such public offering of securities, the
 scope of coverage and the market conditions and that the Insurance Policy reflects the current
 market conditions, and that it does not materially affect the Company's profitability,
 assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;**G.**  **<u>Arrangements upon Change of Control</u>** 

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| | |
|:---|:---|
| 21 | The following benefits may be granted to the Executive Officers (in addition to, or in lieu of, the benefits applicable in the case of any retirement or termination of service) upon or in connection with a "Change of Control" or, where applicable, in the event of a Change of Control following which the employment of the Executive Officer is terminated or adversely adjusted in a material way: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 Acceleration
 of vesting of outstanding options or other equity-based awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2 Extension
 of the exercise period of equity-based grants for the Executive Officers for a period of
 up to one (1) year, following the date of termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.3 Up
 to an additional six (6) months of continued base salary and benefits following the date
 of termination of employment (the "**Additional Adjustment Period** "). For avoidance of doubt,
 such additional Adjustment Period may be in addition to the advance notice and adjustment
 periods pursuant to Sections 14 and ‎15 of this Policy, but subject to the limitation
 set forth in Section 18 of this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.4 A
 cash bonus not to exceed 100% of the Executive Officer's annual base salary in case
 of an Executive Officer other than the CEO and 150% in case of the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;**H.**  **<u>Board of Directors Compensation</u>** 

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| | |
|:---|:---|
| 22 | All of Silentium's Board members, excluding the chairman of the Board, may be entitled to an annual cash fee retainer of up to US$50,000, committee membership annual cash fee retainer of up to US$15,000 and committee chairperson annual cash fee retainer of up to US$25,000. The chairperson of Silentium's Board may be entitled to an annual cash fee retainer of up to US$150,000. |

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| | |
|:---|:---|
| 23 | The compensation of the Company's external directors, if any are required and elected, shall be in accordance with the Companies Regulations (Rules Regarding the Compensation and Expenses of an External Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock Exchange Outside of Israel), 5760-2000, as such regulations may be amended from time to time. |

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| | |
|:---|:---|
| 24 | Notwithstanding the provisions of Section 22 above, in special circumstances, such as in the case of a professional director, an expert director or a director who makes a unique contribution to the Company, such director's compensation may be different than the compensation of all other directors and may be greater than the maximum amount allowed under Section 22. |

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| | |
|:---|:---|
| **25** | Each non-employee director and the chairperson of the Board may be granted equity-based compensation. |

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| | |
|:---|:---|
| **26** | Each non-employee member of Silentium's Board (excluding the chairman of the Board) may be granted an annual equity-based award in a total market value at the time of grant of up to US$250,000. The equity-based awards shall vest annually over a period of between one (1) to four (4) years. The chairperson of Silentium's Board may be granted an annual equity-based award in a total market value at the time of grant of up to US$300,000. The equity-based awards shall vest annually over a period of between one (1) to four (4) years. |

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| | |
|:---|:---|
| 27 | All other terms of the equity awards shall be in accordance with Silentium's incentive plans and other related practices and policies. Accordingly, the Board may, following approval by the Compensation Committee, make modifications to such awards consistent with the terms of such incentive plans, subject to any additional approval as may be required by the Companies Law. |

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28 In addition, members of the Board may be entitled to reimbursement of expenses in connection with the performance of their duties.

29 The compensation (and limitations) stated under Section H will not apply to directors who serve as Executive Officers.

&nbsp;&nbsp;&nbsp;&nbsp;**I.**  **<u>Miscellaneous</u>** 

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| | |
|:---|:---|
| 30 | Nothing in this Policy shall be deemed to grant to any of the Executive Officers, employees, directors, or any third party any right or privilege in connection with their employment by or service to the Company, nor deemed to require Silentium to provide any compensation or benefits to any person. Such rights and privileges shall be governed by applicable personal employment agreements or other separate compensation arrangements entered into between Silentium and the recipient of such compensation or benefits. The Board may determine that none or only part of the payments, benefits and perquisites detailed in this Policy shall be granted, and is authorized to cancel or suspend a compensation package or any part of it. |

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| | |
|:---|:---|
| 31 | An Immaterial Change in the Terms of Employment of an Executive Officer other than the CEO may be approved by the CEO, provided that the amended terms of employment are in accordance with this Policy. An "Immaterial Change in the Terms of Employment" means a change in the terms of employment of an Executive Officer with an annual total cost to the Company not exceeding an amount equal to three (3) monthly base salaries of such employee. |

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| | |
|:---|:---|
| 32 | In the event that new regulations or law amendment in connection with Executive Officers' and directors' compensation will be enacted following the adoption of this Policy, Silentium may follow such new regulations or law amendments, even if such new regulations are in contradiction to the compensation terms set forth herein. |

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| | |
|:---|:---|
| 33 | For the purposes of this Policy, any and all limitations relating to the payment to any Executive Officer (including the CEO), will apply only to the payments made to such Executive Officer and not with respect to any payment to a relative thereof as a result of any engagement or employment relations between the Company and such relative. |

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\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

This Policy is designed solely for the benefit of Silentium and none of the provisions thereof are intended to provide any rights or remedies to any person other than Silentium.

<u>Appendix A</u>

Policy for Recovery of Erroneously Awarded Compensation

(See attached)

**SILENTIUM LTD.**

**EXECUTIVE OFFICER CLAWBACK POLICY**

**I.**  **<u>Purpose</u>** 

This Executive Officer Clawback Policy describes the circumstances under which Covered Persons of Silentium Ltd. and any of its direct or indirect subsidiaries (the "Company") will be required to repay or return Erroneously-Awarded Compensation to the Company.

This Policy and any terms used in this Policy shall be construed in accordance with any SEC regulations promulgated to comply with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, including without limitation Rule 10D-1 promulgated under the Securities Exchange Act of 1934, as amended, and the rules adopted by the NYSE, as well as the provisions of the Israeli Companies Law of 1999 (the "Companies Law").

Each Covered Person of the Company shall sign an Acknowledgement and Agreement to the Clawback Policy in the form attached hereto as <u>Exhibit A</u> as a condition to his or her participation in any of the Company's incentive-based compensation programs; provided that this Policy shall apply to each Covered Person irrespective of whether such Covered Person shall have failed, for any reason, to have executed such Acknowledgement and Agreement.

**II.**  **<u>Definitions</u>** 

For purposes of this Policy, the following capitalized terms shall have the respective meanings set forth below:

(a) "  **<u>Accounting Restatement</u>**" shall mean an accounting restatement (i) due to the
material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting
restatement to correct an error in previously issued financial restatements that is material to the previously issued financial statements
(a "Big R" restatement), or (ii) that corrects an error that is not material to previously issued financial statements, but
would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period (a
 "little r" restatement). Notwithstanding the foregoing, none of the following changes to the Company's financial statements
represent error corrections and shall not be deemed an Accounting Restatement: (a) retrospective application of a change in accounting
principle; (b) retrospective revision to reportable segment information due to a change in the structure of the Company's internal
organization; (c) retrospective reclassification due to a discontinued operation; (d) retrospective application of a change in reporting
entity, such as from a reorganization of entities under common control; and (e) retrospective revision for share splits, reverse share
splits, share dividends or other changes in capital structure.

(b) "  **<u>Board</u>**" shall mean the Board of Directors of the Company.

(c) "  **<u>Clawback-Eligible Incentive Compensation</u>**" shall mean, in connection with an
Accounting Restatement, any Incentive-Based Compensation Received by a Covered Person (regardless of whether such Covered Person was serving
at the time that Erroneously-Awarded Compensation is required to be repaid) (i) on or after the NYSE Effective Date, (ii) after beginning
service as a Covered Person, (iii) while the Company has a class of securities listed on a national securities exchange or national securities
association and (iv) during the Clawback Period.

(d) "  **<u>Clawback Period</u>**" shall mean, with respect to any Accounting Restatement, the
three completed fiscal years immediately preceding the Restatement Date and any transition period (that results from a change in the Company's
fiscal year) of less than nine months within or immediately following those three completed fiscal years.

(e) "  **<u>Committee</u>**" shall mean the Compensation Committee of the Board.

(f) "  **<u>Covered Person</u>**" shall mean any person who is, or was at any time, during the
Clawback Period, an Executive Officer of the Company. For the avoidance of doubt, Covered Person may include a former Executive Officer
that left the Company, retired or transitioned to an employee non-Executive Officer role (including after serving as an Executive Officer
in an interim capacity) during the Clawback Period, and this Policy applies regardless of whether the Covered Person was at fault for
an accounting error or other action that resulted in, or contributed to, the Accounting Restatement.

(g) "  **<u>Erroneously-Awarded Compensation</u>**" shall mean the amount of Clawback-Eligible
Incentive Compensation that exceeds the amount of Incentive-Based Compensation that otherwise would have been Received had it been determined
based on the restated amounts. This amount must be computed without regard to any taxes paid.

(h) "  **<u>Executive Officer</u>**" shall mean (i) the Company's president, principal
financial officer, principal accounting officer (or if there is no such accounting officer, the controller), any vice-president in charge
of a principal business unit, division, or function (such as sales, administration, or finance), any other officer who performs a policy-making
function, (ii) any other person (including an officer of the Company's parent(s) or subsidiaries) who performs similar policy-making
functions for the Company, or (iii) an "Officer" within the meaning set forth in the Companies Law. For the sake of clarity,
at a minimum, all persons who would be executive officers pursuant to Rule 401(b) under Regulation S-K shall be deemed "Executive
Officers".

(i) "  **<u>Financial Reporting Measures</u>**" shall mean measures that are determined and presented
in accordance with the accounting principles used in preparing the Company's financial statements, and all other measures that are
derived wholly or in part from such measures, including, without limitation, measures that are "non-GAAP financial measures"
for purposes of Exchange Act Regulation G and Item 10(e) of Regulation S-K, as well other measures, metrics and ratios that are not non-
GAAP measures. For purposes of this Policy, Financial Reporting Measures shall include stock price and total shareholder return (and any
measures that are derived wholly or in part from stock price or total shareholder return). A Financial Reporting Measure need not be presented
within the Company's financial statements or included in a Company filing with the SEC.

(j) "  **<u>Incentive-Based Compensation</u>**" shall have the meaning set forth in Section III
below.

(k) "  **<u>NYSE</u>**" shall mean The New York Stock Exchange.

(l) "  **<u>NYSE Effective Date</u>**" shall mean [____] [__], 2026.

(m) "  **<u>Policy</u>**" shall mean this Executive Officer Clawback Policy, as the same may
be amended and/or restated from time to time.

(n) "  **<u>Received</u>**" shall mean Incentive-Based Compensation received, or deemed to be
received, in the Company's fiscal period during which the Financial Reporting Measure specified in the Incentive-Based Compensation
is attained, even if the payment or grant occurs after the fiscal period.

(o) "  **<u>Repayment Agreement</u>**" shall have the meaning set forth in Section V below.

(p) "  **<u>Restatement Date</u>**" shall mean the earlier of (i) the date the Board, a committee
of the Board or the officers of the Company authorized to take such action if Board action is not required, concludes, or reasonably should
have concluded, that the Company is required to prepare an Accounting Restatement, or (ii) the date that a court, regulator or other legally
authorized body directs the Company to prepare an Accounting Restatement.

(q) "  **<u>SARs</u>**" shall mean stock appreciation rights.

(r) "  **<u>SEC</u>**" shall mean the U.S. Securities and Exchange Commission.

**III.**  **<u>Incentive-Based Compensation</u>** 

"Incentive-Based Compensation" shall mean any compensation that is granted, earned or vested wholly or in part upon the attainment of a Financial Reporting Measure.

For purposes of this Policy, specific examples of Incentive-Based Compensation include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· Non-equity incentive plan awards that are earned
based, wholly or in part, based on satisfaction of a Financial Reporting Measure performance goal;

&nbsp;&nbsp;&nbsp;&nbsp;· Bonuses paid from a "bonus pool,"
the size of which is determined, wholly or in part, based on satisfaction of a Financial Reporting Measure performance goal;

&nbsp;&nbsp;&nbsp;&nbsp;· Other cash awards based on satisfaction of a
Financial Reporting Measure performance goal;

&nbsp;&nbsp;&nbsp;&nbsp;· Restricted stock, restricted stock units, performance
share units, stock options and SARs that are granted or become vested, wholly or in part, on satisfaction of a Financial Reporting Measure
performance goal; and

&nbsp;&nbsp;&nbsp;&nbsp;· Proceeds received upon the sale of shares acquired
through an incentive plan that were granted or vested based, wholly or in part, on satisfaction of a Financial Reporting Measure performance
goal.

For purposes of this Policy, Incentive-Based Compensation excludes:

&nbsp;&nbsp;&nbsp;&nbsp;· Any base salaries (except with respect to any
salary increases earned, wholly or in part, based on satisfaction of a Financial Reporting Measure performance goal);

&nbsp;&nbsp;&nbsp;&nbsp;· Bonuses paid solely at the discretion of the
Committee or Board that are not paid from a "bonus pool" that is determined by satisfying a Financial Reporting Measure performance
goal;

&nbsp;&nbsp;&nbsp;&nbsp;· Bonuses paid solely upon satisfying one or more
subjective standards and/or completion of a specified employment period;

&nbsp;&nbsp;&nbsp;&nbsp;· Non-equity incentive plan awards earned solely
upon satisfying one or more strategic measures or operational measures; and

&nbsp;&nbsp;&nbsp;&nbsp;· Equity awards that vest solely based on the passage
of time and/or satisfaction of one or more non-Financial Reporting Measures.

**IV.**  **<u>Determination and Calculation of Erroneously-Awarded Compensation</u>** 

In the event of an Accounting Restatement, the Committee shall promptly determine the amount of any Erroneously-Awarded Compensation for each Executive Officer in connection with such Accounting Restatement and shall promptly thereafter provide each Executive Officer with a written notice containing the amount of Erroneously-Awarded Compensation and a demand for repayment, forfeiture or return thereof, as applicable.

(a)  **<u>Cash Awards</u>** . With respect to cash awards, the Erroneously-Awarded Compensation is the difference
between the amount of the cash award (whether payable as a lump sum or over time) that was Received and the amount that should have been
Received applying the restated Financial Reporting Measure.

(b)  **<u>Cash Awards Paid From Bonus Pools</u>** . With respect to cash awards paid from bonus pools, the
Erroneously-Awarded Compensation is the pro rata portion of any deficiency that results from the aggregate bonus pool that is reduced
based on applying the restated Financial Reporting Measure.

(c)  **<u>Equity Awards</u>** . With respect to equity awards, if the shares, options, SARs or other equity
awards are still held at the time of recovery, the Erroneously-Awarded Compensation is the number of such securities Received in excess
of the number that should have been received applying the restated Financial Reporting Measure (or the value in excess of that number).
If the options, SARs or other equity awards have been exercised, vested, settled or otherwise converted into underlying shares, but the
underlying shares have not been sold, the Erroneously-Awarded Compensation is the number of shares underlying the excess options or SARs
(or the value thereof). If the underlying shares have already been sold, the Erroneously-Awarded Compensation is the higher of the value
of the stock upon vesting, exercise or sale.

(d)  **<u>Compensation Based on Stock Price or Total Shareholder Return</u>** . For Incentive-Based Compensation
based on (or derived from) stock price or total shareholder return, where the amount of Erroneously-Awarded Compensation is not subject
to mathematical recalculation directly from the information in the applicable Accounting Restatement, the amount shall be determined by
the Committee based on a reasonable estimate of the effect of the Accounting Restatement on the stock price or total shareholder return
upon which the Incentive-Based Compensation was Received (in which case, the Committee shall maintain documentation of such determination
of that reasonable estimate and provide such documentation to the NYSE in accordance with applicable listing standards).

**V.**  **<u>Recovery of Erroneously-Awarded Compensation</u>** 

Once the Committee has determined the amount of Erroneously-Awarded Compensation recoverable from the applicable Covered Person, the Committee shall take all necessary actions to recover the Erroneously-Awarded Compensation. Unless otherwise determined by the Committee, the Committee shall pursue the recovery of Erroneously-Awarded Compensation in accordance with the below:

(a)  **<u>Cash Awards</u>** . With respect to cash awards, the Committee shall either (i) require the Covered
Person to repay the Erroneously-Awarded Compensation in a lump sum in cash (or such property as the Committee agrees to accept with a
value equal to such Erroneously-Awarded Compensation) reasonably promptly following the Restatement Date or (ii) if approved by the Committee,
offer to enter into a Repayment Agreement. If the Covered Person accepts such offer and signs the Repayment Agreement within a reasonable
time as determined by the Committee, the Company shall countersign such Repayment Agreement.

(b)  **<u>Unvested Equity Awards</u>** . With respect to those equity awards that have not yet vested, the
Committee shall take all necessary action to cancel, or otherwise cause to be forfeited, the awards in the amount of the Erroneously-Awarded
Compensation.

(c)  **<u>Vested Equity Awards</u>** . With respect to those equity awards that have vested and the underlying
shares have not been sold, the Committee shall take all necessary action to cause the Covered Person to deliver and surrender the underlying
shares in the amount of the Erroneously-Awarded Compensation.

In the event that the Covered Person has sold the underlying shares, the Committee shall either (i) require the Covered Person to repay the Erroneously-Awarded Compensation in a lump sum in cash (or such property as the Committee agrees to accept with a value equal to such Erroneously-Awarded Compensation) reasonably promptly following the Restatement Date or (ii) if approved by the Committee, offer to enter into a Repayment Agreement. If the Covered Person accepts such offer and signs the Repayment Agreement within a reasonable time as determined by the Committee, the Company shall countersign such Repayment Agreement.

(d)  **<u>Repayment Agreement</u>** . "Repayment Agreement" shall mean an agreement (in a form
reasonably acceptable to the Committee) with the Covered Person for the repayment of the Erroneously-Awarded Compensation as promptly
as possible without unreasonable economic hardship to the Covered Person.

(e)  **<u>Effect of Non-Repayment</u>** . To the extent that a Covered Person fails to repay all Erroneously-Awarded
Compensation to the Company when due (as determined in accordance with this Policy), the Company shall, or shall cause one or more other
members of the Company to, take all actions reasonable and appropriate to recover such Erroneously-Awarded Compensation from the applicable
Covered Person. Unless otherwise determined by the Committee in its discretion, the applicable Covered Person shall be required to reimburse
the Company for any and all expenses reasonably incurred (including legal fees) by the Company in recovering such Erroneously-Awarded
Compensation in accordance with the immediately preceding sentence.

The Committee shall have broad discretion to determine the appropriate means of recovery of Erroneously-Awarded Compensation based on all applicable facts and circumstances and taking into account the time value of money and the cost to shareholders of delaying recovery. However, in no event may the Company accept an amount that is less than the amount of Erroneously-Awarded Compensation in satisfaction of a Covered Person's obligations hereunder.

**VI.**  **<u>Discretionary Recovery</u>** 

Notwithstanding anything herein to the contrary, the Company shall not be required to take action to recover Erroneously-Awarded Compensation if any one of the following conditions are met and the Committee determines that recovery would be impracticable:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The direct expenses paid to a third party to assist in enforcing this Policy against a Covered Person
would exceed the amount to be recovered, after the Company has made a reasonable attempt to recover the applicable Erroneously-Awarded
Compensation, documented such attempts and provided such documentation to the NYSE;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Recovery would violate home country law where that law was adopted prior to November 28, 2022, provided
that, before determining that it would be impracticable to recover any amount of Erroneously-Awarded Compensation based on violation of
home country law, the Company has obtained an opinion of home country counsel, acceptable to the NYSE, that recovery would result in such
a violation and a copy of the opinion is provided to the NYSE; or

&nbsp;&nbsp;&nbsp;&nbsp;(iii) Recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly
available to employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and regulations thereunder.

**VII.**  **<u>Reporting and Disclosure Requirements</u>** 

The Company shall file all disclosures with respect to this Policy in accordance with the requirements of the federal securities laws, including the disclosure required by the applicable filings required to be made with the SEC.

**VIII.**  **<u>Effective Date</u>** 

This Policy shall apply to any Incentive-Based Compensation Received on or after the NYSE Effective Date.

**IX.**  **<u>No Indemnification</u>** 

The Company shall not indemnify any Covered Person against the loss of Erroneously-Awarded Compensation and shall not pay, or reimburse any Covered Persons for premiums, for any insurance policy to fund such Covered Person's potential recovery obligations.

**X.**  **<u>Administration</u>** 

The Committee has the sole discretion to administer this Policy and ensure compliance with the NYSE Rules and any other applicable law, regulation, rule or interpretation of the SEC or the NYSE promulgated or issued in connection therewith. Actions of the Committee pursuant to this Policy shall be taken by the vote of a majority of its members. The Committee shall, subject to the provisions of this Policy, make such determinations and interpretations and take such actions as it deems necessary, appropriate or advisable. All determinations and interpretations made by the Committee shall be final, binding and conclusive.

**XI.**  **<u>Amendment; Termination</u>** 

The Committee may amend this Policy from time to time in its discretion and shall amend this Policy as it deems necessary, including as and when it determines that it is legally required by any federal securities laws, SEC rule, the Companies Law or the rules of any national securities exchange or national securities association on which the Company's securities are then listed. The Committee may terminate this Policy at any time. Notwithstanding anything in this Section XI to the contrary, no amendment or termination of this Policy shall be effective if such amendment or termination would (after taking into account any actions taken by the Company contemporaneously with such amendment or termination) cause the Company to violate any federal securities laws, SEC rule, the Companies Law or the rules of any national securities exchange or national securities association on which the Company's securities are then listed.

**XII.**  **<u>Other Recoupment Rights; No Additional Payments</u>** 

The Committee intends that this Policy will be applied to the fullest extent of the law. The Committee may require that any employment agreement, equity award agreement or any other agreement entered into on or after the Adoption Date shall, as a condition to the grant of any benefit thereunder, require a Covered Person to agree to abide by the terms of this Policy. Any right of recoupment under this Policy is in addition to, and not in lieu of, any other rights under applicable law, regulation or rule or pursuant to any similar policy in any employment agreement, equity plan, compensation policy, equity award agreement or similar arrangement and any other legal remedies available to the Company. However, this Policy shall not provide for recovery of Incentive-Based Compensation that the Company has already recovered pursuant to Section 304 of the Sarbanes-Oxley Act or other recovery obligations.

**XIII.**  **<u>Successors</u>** 

This Policy shall be binding and enforceable against all Covered Persons and their beneficiaries, heirs, executors, administrators or other legal representatives.

**Exhibit A**

**ACKNOWLEDGEMENT AND AGREEMENT**

**TO THE**

**EXECUTIVE OFFICER CLAWBACK POLICY**

**OF**

**SILENTIUM LTD.**

By signing below, the undersigned acknowledges and confirms that the undersigned has received and reviewed a copy of Silentium Ltd. Executive Officer Clawback Policy (the "Policy"). Capitalized terms used but not otherwise defined in this Acknowledgement Form (this "Acknowledgement Form") shall have the meanings ascribed to such terms in the Policy.

By signing this Acknowledgement Form, the undersigned acknowledges and agrees that the undersigned is and will continue to be subject to the Policy and that the Policy will apply both during and after the undersigned's employment with the Company. Further, by signing below, the undersigned agrees to abide by the terms of the Policy, including, without limitation, by returning any Erroneously-Awarded Compensation (as defined in the Policy) to the Company to the extent required by, and in a manner permitted by, the Policy.

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| |
|:---|
| Signature |
| Name |
| Date |

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## Exhibit 10.3

**Exhibit 10.3**

**INVESTORS' RIGHTS AGREEMENT**

THIS INVESTORS' RIGHTS AGREEMENT (this "**Agreement**") is made as of the 5 day of September, 2024 by and among Silentium Ltd., an Israeli company (the "**Company**"), those certain holders of Series Preferred A SharesB-1 Preferred Shares, Series B-2 Preferred Shares, and Series C Preferred Shares, listed in <u>Schedule A</u> hereto (the "**Investors**"), [and those certain holders of the Ordinary Shares of the Company listed in <u>Schedule B</u> hereto ("**Ordinary Shareholders**").

<u>RECITALS</u>

**W I T N E S S E T H :**

WHEREAS, the Company and certain of the Investors are parties to the Preferred C Share Purchase and Recapitalization Agreement of even date herewith (the "**Purchase Agreement**");

WHEREAS, the Company and certain of the Investors are parties to an Amended and Restated Investor Rights Agreement dated May 25, 2021 (the "**Prior Agreement**");

WHEREAS, in order to induce the Investors to invest funds in the Company pursuant to the Purchase Agreement, the Investors and the Company hereby agree that this Agreement shall govern the rights of the Investors to cause the Company to register Ordinary Shares issued or issuable to such Investors and certain other matters as set forth herein; and

WHEREAS, the Company and the Investors agree to restate the Prior Agreement as set forth below and to cancel and supersede the Prior Agreement.

**NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:**

1. <u>Registration Rights</u>. The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Definitions</u>. For purposes of this Section 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "**Affiliate**" means, with respect to any specified Person, any other Person
who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any
general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company
now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the
same management company or investment adviser with, such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "**Act**" means the Securities Act of 1933, as amended, and any similar or successor
federal statue, and the rules and regulations of the SEC thereunder, all as the same shall be in effect from time to time and their
equivalent in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "**Form F-3**" means such form (or Form S-3, as the case may be) under
the Act as in effect on the date hereof or any registration form under the Act subsequently adopted by the SEC that permits forward incorporation
of substantial information by reference to other documents filed by the Company with the SEC.

f

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "**Holder**" means any Person owning Registrable Securities or securities convertible
or exercisable into Registrable Securities or any assignee thereof in accordance with Section 1.11 hereof, who is a party to this
Agreement and who acquired such Registrable Securities or securities convertible into Registrable Securities in a transaction or series
of transactions not involving any registered public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The term "**Immediate Family Member**" means a child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including,
adoptive relationships, of a natural person referred to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The term "**Initial Offering**" means the Company's first underwritten public offering
of its Ordinary Shares under the Act or the
equivalent law of another jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The term "**1934 Act**" means the Securities Exchange Act of 1934, as amended, and any
similar or successor federal statue, and the rules and regulations of the SEC thereunder, all at the same shall be in effect from
time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The term "**Permitted Transferees**" has the meaning contained in the Company's Articles
of Association, as amended (the "**Articles** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The term "**Person**" means any individual, corporation, partnership, trust, limited liability
company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The term "**Preferred A Shares**" shall mean the Company's Series A Preferred Shares,
of no par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The term "**Preferred B-1 Shares**" shall mean the Company's Series B-1 Preferred
Shares, of no par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The term "**Preferred B-2 Shares**" shall mean the Company's Series B-2 Preferred
Shares, of no par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The term "**Preferred C Shares**" shall mean the Company's Series C Preferred Shares,
of no par value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The term "**Preferred Shares**" shall mean the Preferred B-1 Shares, the Preferred B-2
Shares, and the Preferred C Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The term "**register**," "**registered**," and "**registration** "
refer to a registration effected by filing a registration statement or similar document in compliance with the Act, and the declaration
or ordering by the SEC of effectiveness of such registration statement or document, or the equivalent actions under the laws of another
jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The term "**Registrable Securities**" means (i) the Ordinary Shares issuable or issued
upon conversion of the Preferred Shares of the Company, (ii) all Ordinary Shares or other securities convertible into Ordinary Shares
that the Investors may hereafter purchase pursuant to their preemptive rights, rights of first offer or otherwise, or shares of Ordinary
Shares issued on conversion or exercise of other securities so purchased by the Investors, (iii) any Ordinary Shares of the Company issued
to an Investor as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or
other distribution with respect to, or in exchange for, or in replacement of, the shares referenced in (i), and (ii) above, respectively,
upon any share split, share dividend or the like, or into which such shares or other securities have been or may be converted to or exchanged
into in connection with any merger, consolidation, reclassification, recapitalization or similar event, excluding in all cases, however,
any Registrable Securities sold in a transaction in which rights under this Section 1 are not assigned. The number of shares of "Registrable
Securities" outstanding shall be determined by the number of Ordinary Shares outstanding and/or issuable pursuant to then exercisable
or convertible securities, that are, Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The term "**SEC**" means the U.S. Securities and Exchange Commission and any successor
agency of the federal government administering the Act and the 1934 Act.

&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Request for Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the conditions of this Section 1.2, if the Company shall receive at any time that is six
(6) months after the effective date of the Initial Offering a written request from the Holders holding at least 30% of the Registrable
Securities then outstanding (the "**Initiating Holders**") that the Company file a registration statement under the Act
covering all or part of the Registrable Securities then outstanding on any securities exchange on which the Company's shares are traded,
then the Company shall, within twenty (20). days of the receipt thereof, give written notice of such request to all Holders, and subject
to the limitations of this Section 1.2, use best efforts to effect, as soon as practicable, the registration under the Act of all
Registrable Securities that the Holders request to be registered in a written request received by the Company within twenty (20) days
of the mailing of the Company's notice pursuant to this Section 1.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Initiating Holders intend to distribute the Registrable Securities covered by their request by
means of an underwritten public offering, they shall so advise the Company as a part of their request made pursuant to this Section 1.2
and the Company shall include such information in the written notice referred to in Section 1.2(a). In such event the right of any
Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder's participation in such
underwritten public offering and the inclusion of such Holder's Registrable Securities in the underwritten public offering (unless
otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders
proposing to distribute their securities through such underwritten offering shall enter into an underwriting agreement in customary form
with the underwriter or underwriters selected for such underwriting by a majority in interest of the Initiating Holders (which underwriter
or underwriters shall be reasonably acceptable to the Company). Notwithstanding any other provision of this Section 1.2, if the underwriter
advises the Company that marketing factors require a limitation of the number of securities underwritten (including Registrable Securities),
then the Company shall so advise all Holders of Registrable Securities that would otherwise be registered and underwritten pursuant hereto,
and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable
Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by
each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; <u>provided, however</u>, that the
Company shall include in such registration and provide priority to the Registrable Securities in the following manner: (i) <u>first</u>,
the Registrable Securities requested to be included therein by the Holders holding Preferred C Shares (the securities so included to be
allocated between such Holders on a pro rata basis according to the total amount of securities that were Preferred C Shares and entitled
to be included therein owned by each such Holder), (ii) <u>second</u>, the Registrable Securities requested to be included therein
by the Holders holding Preferred B-1 Shares and Preferred B-2 Shares (the securities so included to be allocated between such Holders
on a pro rata basis according to the total amount of securities that were Preferred B-1 Shares and Preferred B-2 Shares and entitled to
be included therein owned by each such Holder), (iii) <u>third</u>, the Registrable Securities requested to be included therein by
the Holders holding Preferred A Share (the securities so included to be allocated between such Holders on a pro rata basis according to
the total amount of securities that were Preferred A Shares and entitled to be included therein owned by each such Holder) and (iv) fourth,
other securities requested and entitled to be included in such registration, provided, however, that the number of Registrable Securities
held by the Holders to be included in such underwriting shall not be reduced unless all other securities are first entirely excluded from
the underwriting and registration. Any Registrable Securities excluded or withdrawn from such underwritten public offering shall be withdrawn
from the registration. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters
may round the number of shares allocated to any Holder to the nearest one hundred (100) shares. For purposes of the provision in this <u>Subsection 1.2(b) and in Subsection 1.3(c) below</u> concerning apportionment, for any selling Holder that is a partnership,
limited liability company, or corporation, the partners, members, retired partners, retired members, shareholders, and Affiliates of such
Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts
for the benefit of any of the foregoing Persons, shall be deemed to be a single "selling Holder," and any pro rata reduction
with respect to such "selling Holder" shall be based upon the aggregate number of Registrable Securities owned by all Persons
included in such "selling Holder," as defined in this sentence. For purposes of the provision in this <u>Subsection 1.2(b) and in Subsection 1.3(c) below</u> concerning apportionment, the holdings of a selling Holder shall be aggregated together with the holdings
of all of its Permitted Transferees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not be required to effect a registration pursuant
to this Section 1.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in any particular jurisdiction in which the Company would be required to execute a general consent to
service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as
may be required under the Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) after the Company has affected two (2) registrations pursuant to this Section 1.2, and such
registrations have been declared or ordered effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Initiating Holders, together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the
public (net of any underwriters' discounts or commissions) of less than $5,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) during the period starting with the date which is thirty (30) days prior to the Company's good faith
estimate of the date of the filing of a registration statement for firmly underwritten registered public offering, and ending on a date
which is (A) one hundred eighty (180) days following the effective date of the Initial Offering; or (B) ninety (90) days following
the effective date of each other Company-initiated registration subject to Section 1.3 below (but other than registration relating
solely to employee benefit plans on Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely
to a SEC Rule 145 transaction on Form F-4 or similar forms that may be promulgated in the future), provided that the Company
is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 1.2,
an officer's a certificate signed by the Chief Executive Officer or the Chairman of the Board of the Company stating that in the
good faith judgment of the Board, it would be seriously detrimental to the Company and its shareholders for such registration statement
to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety
(90) days after receipt of the request of the Initiating Holders; provided that such right to delay a request shall be exercised by the
Company not more than once in any twelve (12) month period.

&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Company Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If (but without any obligation to do so) the Company proposes to register (including for this purpose
a registration effected by the Company for shareholders other than the Holders) any of its shares or other securities under the Act in
connection with the public offering of such securities (including, but not limited to, registration statements relating to the initial
offering or secondary offerings of securities of the Company, but other than a registration relating solely to the sale of securities
to participants in a Company share option plan, a registration relating solely to an SEC Rule 145 transaction or a registration on
any form that does not include substantially the same information as would be required to be included in a registration statement covering
the sale of the Registrable Securities or a registration under Sections 1.2 or 1.4 hereof), the Company shall, at such time, promptly
give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after delivery
of such notice by the Company in accordance with Section 4.5, the Company shall, subject to the provisions of Section 1.3(c),
use all reasonable efforts to cause to be registered under the Act all of the Registrable Securities that each such Holder has requested
to be registered. If a Holder decides not to include all of its Registrable Securities in any registration statement thereafter filed
by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration
statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and
conditions set forth herein. The number of occurrences of the registration pursuant to this <u>Section 1.3</u> shall be unlimited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Terminate Registration</u>. The Company shall have the right to terminate or withdraw any
registration initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has
elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in accordance
with Section 1.7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Underwriting Requirements</u>. In connection with any underwritten public offering of shares of the
Company's share capital pursuant to this Section 1.3, the Company shall not be required under this Section 1.3 to include
any of the Holders' securities in such offering unless they accept the terms of the underwriting as agreed upon between the Company
and the underwriters selected by it (or by other Persons entitled to select the underwriters) (which underwriter or underwriters shall
be reasonable acceptable to the participating Holders) and enter into an underwriting agreement in customary form with an underwriter
or underwriters selected by the Company, and then only in such quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If any Holder disapproves of the terms of any such underwriting, such Holder may
elect to withdraw therefrom by written notice to the Company and the underwriter. If the total amount of securities, including Registrable
Securities, requested by shareholders to be included in such offering exceeds the amount of securities to be sold (other than by the Company)
that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their
sole discretion will not jeopardize the success of the offering and the Company shall include in such registration, (i) <u>first</u>,
shares requested to be registered by the Company (<u>ii</u>) <u>second</u>, the Registrable Securities requested to be included therein
by the Holders holding Preferred C Shares (the securities so included to be allocated between such Holders on a pro rata basis according
to the total amount of securities that were Preferred C Shares and entitled to be included therein owned by each such Holder); (iii) <u>third</u>,
the Registrable Securities requested to be included therein by the Holders holding Preferred B-1 Shares and Preferred B-2 Shares (the
securities so included to be allocated between such Holders on a pro rata basis according to the total amount of securities that were
Preferred B-1 Shares and Preferred B-2 Shares and entitled to be included therein owned by each such Holder), (iv) <u>fourth,</u> the Registrable Securities requested to be included therein by the Holders holding Preferred A Shares (the securities so included to be
allocated between such Holders on a pro rata basis according to the total amount of securities that were Preferred A Shares and entitled
to be included therein owned by each such Holder) and (v) <u>fifth,</u> other securities requested to be included in such registration.
Notwithstanding the foregoing, in no event shall the amount of securities of the selling Holders included in the offering be reduced below
thirty percent (30%) of the total amount of securities included in such offering, unless such offering is the Initial Offering, in which
case the selling Holders may be excluded if the underwriters make the determination described above and no other shareholder's securities
are included.

&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Form F-3 Registration</u>. In case the Company shall receive from Initiating Holders a written
request or requests that the Company effect a registration on Form F-3 (or the equivalent shelf registration statement) and any related
qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) within ten (10) days after receipt of any such request, give written notice of the proposed registration,
and any related qualification or compliance, to all other Holders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use its best efforts to effect, as soon as practicable, such registration and all such qualifications
and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders'
Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other
Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice
from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance,
pursuant to this Section 1.4:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Form F-3 (or the equivalent shelf registration statement) is not available for such offering by the Holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters' discounts or commissions) of less than $3,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Company has, within the twelve (12) month period preceding the date of such request, already effected two registrations on Form F-3 for the Holders pursuant to this Section 1.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) if the Company shall furnish to Holders requesting a registration statement pursuant to Section 1.4, an officer's a certificate signed by the Chief Executive Officer or the Chairman of the Board of the Company stating that in the good faith judgment of the Board, it would be seriously detrimental to the Company and its shareholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety days after receipt of the request of the Initiating Holders; provided that such right to delay a request shall be exercised by the Company not more than once in any twelve (12) month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities
and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations
effected pursuant to this Section 1.4 shall not be counted as requests for registration effected pursuant to Section 1.2.

&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Obligations of the Company</u>. Whenever required under this Section 1 to effect the registration
of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare and file with the SEC a registration statement with respect to such Registrable Securities and
use its best efforts to cause such registration statement to become effective, and of the Registrable Securities registered thereunder,
keep such registration statement effective until the distribution contemplated in the Registration Statement has been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition
of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition
of Registrable Securities owned by them in such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use its best efforts to register and qualify the securities covered by such registration statement under
such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company
shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service
of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may
be required by the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting
shall also enter into and perform its obligations under such an agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notify each Holder of Registrable Securities covered by such registration statement at any time when a
prospectus relating thereto is required to be delivered under the Act or the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) use its commercially reasonable efforts to cause all such Registrable Securities registered pursuant hereunder
to be listed on each securities exchange on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and
a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cause senior representatives of the Company to participate in any "road show" or "road
shows" reasonably requested by any underwriter of an underwritten or "best efforts" offering of Registrable Securities,
with all out-of-pocket costs and expenses incurred by the Company or such officers in connection with such attendance to be paid by the
Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Company shall prepare and furnish to each such seller a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities,
such prospectus shall not include any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the circumstances then existing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this
Agreement, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant
to this Agreement, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters,
on the date that the registration statement with respect to such securities becomes effective, (i) an opinion, dated such date, of
the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters
in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities
(it being understood that such counsel need not express any opinion as to financial statements contained therein), and (ii) a letter
dated such date, from the independent certified public accountants of the Company, addressed to the underwriters and to such seller, in
form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>Information from Holder</u>. It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall
furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition
of such securities as shall be reasonably required to effect the registration of such Holder's Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;1.7 <u>Expenses of Registration</u>. All expenses other than underwriting discounts and commissions incurred
in connection with registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1.4 or pursuant to any other future registration,
filing or qualifications, including (without limitation) all registration, filing and qualification fees, printers' and accounting
fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for the selling Holders
shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;1.8 <u>Delay of Registration</u>. No Holder shall have any right to obtain or seek an injunction restraining
or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation
of this Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;1.9 <u>Indemnification</u>. In the event any Registrable Securities are included in a registration statement
under this Section 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by law, the Company will indemnify and hold harmless each Holder, its Affiliates,
the partners, members or officers, directors and shareholders of each Holder, legal counsel and accountants for each Holder, any underwriter
(as defined in the Act) for such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of the Act
or the 1934 Act (a "**Holder Indemnitee** "), against any losses, claims, damages or liabilities (joint or several) to which
they may become subject under the Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively
a "**Violation** "): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or any
disclosure package filed with the SEC, (ii) the omission or alleged omission to state therein a material fact required to be stated
therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of
the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities
laws; and the Company will reimburse each such Holder Indemnitee promptly upon demand for any legal or other expenses reasonably incurred
by them in connection with investigating, preparing to defend or defending against or appearing as a third-party witness in connection
with such loss, claim, damage, liability, or action or proceeding; provided, however, that the indemnity agreement contained in this subsection
1.9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action, cost or expense if such
settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be
liable in any such case to a Holder Indemnitee for any such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration by such Holder Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent permitted by law, each selling Holder will, if Registrable Securities held by such Holder
are included in the securities as to which such registration qualifications or compliance is being effected, severally, and not jointly,
indemnify and hold harmless the Company and each Person, if any, who controls the Company within the meaning of the Act, any underwriter,
any other Holder selling securities under such registration statement and any controlling Person of any such underwriter or other Holder,
against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer, controlling
Person, underwriter or other such Holder or controlling Person of such other Holder may become subject, under the Act, the 1934 Act or
any state securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity
with written information furnished by such Holder under an instrument duly executed by such Holder and stated expressly to be specifically
for use in connection with such registration statement; and each such Holder will reimburse any Person intended to be indemnified pursuant
to this subsection 1.8(b), in connection with investigating, preparing to defend or defending against or appearing as a third-party witness
in connection with such loss, claim, damage, liability, action or proceeding; provided, however, that this indemnity shall not be deemed
to relieve any underwriter of any of its due diligence obligations; provided further, that the indemnity agreement contained in this subsection
1.8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder (which consent shall not be unreasonably withheld); provided further that in no event shall any indemnity
under this subsection 1.8(b) exceed the net proceeds from the offering received by such Holder. The foregoing indemnity is also subject
to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement) or omission (or alleged omission)
made in the preliminary prospectus but eliminated or remedied in the amended prospectus at the time the registration statement becomes
effective or in the final prospectus, such indemnity agreement shall not inure to the benefit of (i) the Company, (ii) any underwriter
and any Person, if any, controlling the Company or the underwriter, if a copy of the final prospectus was furnished to the Person asserting
the loss, liability, claim or damage at or prior to the time such furnishing is required by the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under this Section 1.9
of notice of the commencement of any action (including any governmental action) involving the subject matter of the foregoing indemnity
provisions, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.9,
deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate
in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the
defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other
indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with
the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying
party of any liability to the indemnified party under this Section 1.9 but the omission so to deliver written notice to the indemnifying
party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.9. After
notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party
will not be liable to such indemnified party pursuant to the provisions of this Section 1.9 for any legal or other expense subsequently
incurred by such indemnified party in connection with the defense thereof, unless (i) the indemnified party shall have employed
counsel in accordance with the provision of the preceding sentence, (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after the notice of the
commencement of the action and within 15 days after written notice of the indemnified party's intention to employ separate counsel pursuant
to the previous sentence, or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at
the expense of the indemnifying party. No indemnifying party will consent to entry of any judgment or enter into any settlement, which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this Section 1.8 is held by
a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense
referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall, subject to the limitation
set forth in this Section 1.8(d), contribute to the amount paid or payable by such indemnified party as a result of such loss, liability,
claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand
and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim,
damage or expense, as well as any other relevant equitable considerations. Notwithstanding anything to the contrary contained herein,
in no event shall the contribution obligation of any Holder set forth in this Section 1.8(d) exceed the net proceeds from the
offering received by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates
to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access
to information, and opportunity to correct or prevent such statement or omission, provided, that in no event shall any contribution by
a Holder hereunder exceed the net proceeds from the offering received by such Holder, other than in the event of fraud or willful misconduct
of such Holder; and provided further, that no party will be liable for contribution with respect to the settlement of any claim or action
effected without its written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained
in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions,
the provisions in the underwriting agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The obligations of the Company and Holders under this Section 1.8 shall survive the completion of
any offering of Registrable Securities in a registration statement under this Section 1 and the termination of this Agreement. No
indemnifying party, in the defense of any such claim or litigation, shall, except with the consent of each indemnified party, consent
to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to the indemnified party of a release from all liability in respect to such claim or litigation. The indemnification provisions
of this <u>Section 1.9</u> shall not be in limitation of any other indemnification provisions included in any other agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.10 <u>Reports Under Securities Exchange Act of 1934</u>. With a view to making available to the Holders the
benefits of Rule 144 promulgated under the Act ()"**SEC Rule 144**") and any other rule or regulation of
the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration
on Form F-3, the Company agrees (at any time after it has become subject to such reporting requirements) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make and keep public information available, as those terms are understood and defined in SEC Rule 144,
at all times after the effective date of the Initial Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) file with the SEC in a timely manner all reports and other documents required of the Company under the
Act and the 1934 Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a
written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90)
days after the effective date of the first registration statement filed by the Company), the Act and the 1934 Act (at any time after it
has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3
(at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports
and documents so filed by the Company with the SEC, and (iii) such other information as may be reasonably requested in availing any
Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to such
form.

&nbsp;&nbsp;&nbsp;&nbsp;1.11 <u>Assignment of Registration Rights</u>. The rights to cause the Company to register Registrable Securities
pursuant to this Section 1 may be assigned (but only with all related obligations and together with the transfer of the Registrable
Securities to which such rights apply) by a Holder to a transferee or assignee of such securities; provided that such transfer of Registrable
Securities is made in accordance with the Articles, and provided further, that prior to such assignments and transfer of such Registrable
Securities (a) the Company is furnished with written notice of the name and address of such transferee or assignee and the securities
with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing, in a form reasonably
satisfactory to the Company, to be bound by and subject to the terms and conditions of this Agreement, including without limitation the
provisions of Section 1.12 below; and (c) such assignment shall be effective only if immediately following such transfer the
further disposition of such securities by the transferee or assignee is restricted under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;1.12 <u>Limitations on Subsequent Registration Rights</u> From and after the date of this Agreement, the Company
shall not, without the prior written consent of the Holders holding a majority of the Registrable Securities, enter into any agreement
with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder (a) to
include such securities in any registration filed under Section 1.3 hereof, unless under the terms of such agreement, such holder
or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will
not reduce the amount of the Registrable Securities of the Holders that are included or (b) to demand registration of their securities.

&nbsp;&nbsp;&nbsp;&nbsp;1.13 " <u>Market Stand-Off" Agreement</u>. Each Holder and each Ordinary Shareholder hereby agrees
that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final
prospectus relating to the Company's Initial Offering and ending on the date specified by the Company and the managing underwriter
(such period not to exceed one hundred eighty (180) days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract
to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose
of, directly or indirectly, any Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares
(whether such shares or any such securities are then owned by the Holder or the Ordinary Shareholder, as the case may be, or are thereafter
acquired by the Holder or the Ordinary Shareholder), or (ii) enter into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of the Ordinary Shares, whether any such transaction described in clause
(i) or (ii) above is to be settled by delivery of Ordinary Shares or such other securities, in cash or otherwise. The foregoing
provisions of this Section 1.12 shall apply only to the Company's Initial Offering, shall not apply to the sale of any shares
to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Holders if all officers and directors and
greater than one percent (1%) shareholders of the Company enter into similar agreements. The underwriters in connection with the Company's
Initial Offering are intended third party beneficiaries of this Section 1.12 and shall have the right, power and authority to enforce
the provisions hereof as though they were a party hereto. Each Holder and Ordinary Shareholder further agrees to execute such agreements
as may be reasonably requested by the underwriters in the Company's Initial Offering that are consistent with this Section 1.12
or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such
agreements by the Company or the underwriters shall apply first to all Holders subject to such agreements pro rata based on the number
of shares subject to such agreements.

In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder (and the shares or securities of every other Person subject to the foregoing restriction) until the end of such period.

&nbsp;&nbsp;&nbsp;&nbsp;1.14 <u>Foreign Offerings</u>. The registration rights provisions of this Agreement shall apply, mutatis mutandis,
to any registration of the Company's securities outside of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Covenants of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Delivery of Financial Statements</u>. The Company shall deliver to each Investor (for as long as such
Investor holds over 4.5% of the Company's shares on an issued and outstanding basis), upon such Investor's request:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as practicable, but in any event within one hundred and eighty (180) days after the end of each
fiscal year of the Company, an income statement for such fiscal year, a consolidated balance sheet of the Company and statement of shareholder's
equity as of the end of such year, and a statement of cash flows for such year, in English denominated in United States Dollars, such
year-end financial reports to be in reasonable detail, on consolidated and stand alone basis, prepared in accordance with U.S. generally
accepted accounting principles ()"**GAAP** "), and audited and certified by independent public accountants of nationally
recognized standing selected by the Company, and accompanied by an opinion of such accounting firm which opinion shall state that such
balance sheet and income statement and statement of cash flow have been prepared in accordance with GAAP applied on a basis consistent
with that of the preceding fiscal year, and present fairly and accurately the financial position of the Company as of their date, and
that the audit by such accountants in connection with such financial statements has been made in accordance with generally accepted auditing
standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as practicable, but in any event within forty five (45) days after the end of each of the first
three (3) quarters of each fiscal year of the Company, an unaudited, consolidated and stand alone income statement, statement of
cash flows, for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter, and in the case of the first,
second and third quarterly periods, for the period from the beginning of the current fiscal year to the end of such quarterly period,
setting forth in each case in comparative form the figures for the corresponding period of the previous fiscal year, all in reasonable
detail, in English, and United States dollar-denominated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a monthly report (in a form agreed by the Board and the majority in interest of the Investors) which shall
include a business and a financial summary of the Company's status, in reasonable detail, in English, and United States dollar-denominated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as soon as practicable, but in any event at least thirty (30) days prior to the end of each fiscal year,
a budget and business plan (with detailed financial projections) approved by the Board for the next fiscal year, prepared on a monthly
basis, including balance sheets, income statements and statements of cash flows for such months and, as soon as prepared, any other budgets
or revised budgets prepared by the Company, in English and United States dollar-denominated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as soon as practicable, but in any event within thirty (30) days after the end of each calendar month
an unaudited unreviewed consolidated and stand alone statement of cash flows as of the end of such calendar month in reasonable detail,
in English, and United States dollar-denominated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) with respect to the financial statements called for in subsections (b) and (c) of this Section 2.1,
an instrument executed by the Chief Financial Officer or President or Chief Executive Officer of the Company certifying that such financials
were prepared in accordance with GAAP consistently applied with prior practice for earlier periods (with the exception of footnotes that
may be required by GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified,
subject to year-end audit adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) without derogating from the other provisions of this section, unaudited consolidated profit and loss accounts,
balance sheets and statements of cash flow of the Company within 2 months after the end of each financial year, all prepared in accordance
with GAAP, in English, and United States dollar-denominated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) such other information relating to the financial condition, business, prospects or corporate affairs of
the Company as the Investors or any transferee of the Investors (provided that such transferee holds at least four percent (4.5%) of the
issued and outstanding share capital of the Company) (an "**Investor Transferee**") may from time to time reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all reports and information provided under this Section 2, as well as the Company's General Ledger,
shall be in English, unless required otherwise by law or by a governmental authority.

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Inspection</u>. The Company shall permit the authorized representatives of an Investor (provided such
Investor holds at least four percent (4.5%) of the outstanding share capital of the Company (on an as -converted basis) or any Investor
Transferee, at the Investor's or Investor Transferee's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such reasonable
times and upon reasonable notice; provided, however, that the Company shall not be obligated pursuant to this Subsection 2.2 to provide
access to any information that it reasonably and in good faith considers to be a confidential information (unless covered by an enforceable
confidentiality agreement, in a standard form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Directors and Officers Insurance</u>. The Company will maintain directors and officer's insurance
in an amount to be determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Termination of Information and Inspection and Insurance Covenants</u>. The covenants set forth in Section 2.1
shall terminate as to the Investor and its transferees and be of no further force or effect upon the closing of the Initial Offering or
when the Company first becomes subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the 1934 Act (or
the equivalent thereof), whichever event shall first occur.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Investors agree that, other than as required to comply with any applicable law or authority (in which
case, disclosure shall be limited as possible and notice shall be provided to the Company as promptly as possible), any information obtained
from the Company, including without limitation, information obtained pursuant to Section 2.1 above, will not be disclosed without
the prior written consent of the Company; unless such information (a) is known or becomes known to the public in general (other than
as a result of a breach of the confidentiality obligation owed to the Company by such party), or (b) is or has been made known or
disclosed to such party by a third party without a confidentiality obligation to the Company, or (c) is required to be disclosed
or made known by applicable law, rule or regulation or is required or requested to be disclosed or made known by any regulatory authority,
provided that such party promptly notifies the Company of such requirement or request and takes commercially reasonable steps to minimize
the extent of any such required disclosure and to obtain confidential treatment for any information so disclosed. Notwithstanding the
foregoing, an Investor may disclose confidential or proprietary information to its attorneys, accountants and financial and tax advisors
to the extent necessary to obtain their services in connection with either monitoring its investment in the Company and/or enforcing its
rights under any agreement with the Company. In connection with periodic reports to their shareholders, Affiliate, member, wholly owned
subsidiary or partners, the Investors may, without first obtaining such written consent, make general statements, not containing technical
or other confidential information, regarding the nature and progress of the Company's business; and the Investors may provide summary
information regarding the Company's financial information in their reports to their respective shareholders or partners; and that in the
event that an Investor is required to annex financial information obtained pursuant
to Section 2.1(a) to such reports, such Investor shall be entitled to annex such financial information to such reports. The
Investors' right to provide any of the aforementioned information to any shareholder, Affiliate, member, wholly owned subsidiary
or partner shall be subject to the Investor informing such shareholder, Affiliate, member, wholly owned subsidiary or partner that such
information is confidential and directing them to maintain the confidentiality of such information.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Successors and Assigns; Assignment</u>. Except as otherwise provided herein, the terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the respective the successors, assigns, heirs, executors, and administrators
of the parties hereto (including transferees of any shares of Registrable Securities in accordance with Section 1.11 above). Nothing
in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors
and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement. Subject to the provisions of Section 1.11, none of the rights, privileges, or obligations set forth in, arising under,

the exception of: (i) assignment by an Investor to its Permitted Transferee, or (ii) assignment by an Investor to a transferee
of shares of such Investor (which shall be governed by the provisions of Section 1.11); it being acknowledged and understood that
any such assignment or transfer shall confer upon the transferee or assignee all of the applicable Investor's rights and remedies,
and shall impose upon such transferee or assignee all of the applicable Investor's obligations and liabilities, with respect to
the Company's shares being transferred and such transferee shall agree in writing to be bound by the provisions and restrictions
set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Governing Law</u>. This Agreement shall be governed by and construed under the laws of the State of
Israel as applied to agreements among Israeli residents entered into and to be performed entirely within the State of Israel.
Any dispute arising under or in relation to this Agreement shall be resolved by the competent court in Tel Aviv –Yafo, Israel,
and each of the parties hereby submits exclusively and irrevocably to the jurisdiction of such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Counterparts; Further Assurances</u>. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each of the parties hereto
shall perform such further acts and execute such further documents as may reasonably be necessary to carry out and give full effect to
the provisions of this Agreement and the intentions of the parties as reflected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Notices</u>. Any notice required or permitted by any provision of this Agreement shall be given in
writing and shall be delivered personally, by courier, by facsimile, electronic mail or by registered or certified mail, postage prepaid,
addressed (i) in the case of the Company, to its principal office; (ii) in the case of any Investor or Ordinary Shareholder
which is an original party to this Agreement at the address of such Investor or Ordinary Shareholder as set forth in the records of the
Company or such other address for such Investor or Ordinary Shareholder as shall be designated in writing from time to time to such Investor
or Ordinary Shareholder; and, (iii) in the case of any Permitted Transferee of a party to this Agreement or its transferee, to such transferee
at its address as designated in writing by such transferee to the Company from time to time, and if no address was provided – to
the last known address for the original transferor of such shares. Notices that are mailed shall be deemed received five (5) days
after deposit in registered or certified mail, return receipt requested. Notices sent by courier or overnight delivery shall be deemed
received two (2) days after they have been so sent. Notices sent by facsimile or by electronic mail, shall be deemed received when
sent, if during the recipient's normal business hours, and if not sent during normal business hours, then at the beginning of the
recipient's next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Expenses</u>. If any action at law or in equity is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to
any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Entire Agreement; Amendments and Waivers</u>. This Agreement (including the schedules hereto, if any)
constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof and thereof
and supersede any prior understanding or agreement with respect to its subject matter, including without limitation the Prior Agreement.
Any term of this Agreement may be amended, terminated or modified and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the
Holders of a majority of the Preferred Shares, so long as any such amendment or waiver is applied to all Holders in the same manner and
to the same extent and provided however, that any amendment or waiver adversely affecting a specific shareholder in a different manner
compared to other holders of same securities as those held by such specific shareholder, shall also require the consent of such shareholder
and provided that any provision hereof may be waived by any waiving party on such party's own behalf, without the consent of any
other party. Any amendment or waiver affected in accordance with this paragraph shall be binding upon the Investors, the Ordinary Shareholders,
their future transferees and the Company. The Company shall give prompt notice of any amendment, modification or termination hereof or
waiver hereunder (collectively "**Change**") to any party hereto that did not consent in writing to such Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Severability</u>. If one or more provisions of this Agreement are held by a court of competent jurisdiction
to be unenforceable under applicable law, then such provision shall be excluded from this Agreement and the balance of the Agreement shall
be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms; provided, however, that in
such event this Agreement shall be interpreted so as to give effect, to the greatest extent consistent with and permitted by applicable
law, to the meaning and intention of the excluded provision as determined by such court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Aggregation of Shares</u>. All shares of Registrable Securities held or acquired by Affiliates (including
Permitted Transferees) or Persons shall be aggregated together for the purpose of determining the availability of any rights under this
Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Additional Parties</u>. The parties hereto agree that additional parties may be added as parties to
this Agreement as Holders and Investors with respect to any or all of the securities of the Company purchased by them, and shall thereupon
be deemed for all purposes an Investor and a Holder hereunder, including without limitation, as a result of shares issued in accordance
with the Purchase Agreement (as may be amended) at the closing and deferred closing(s) and including as a result of shares transferred
to a Permitted Transferee. Any such additional party shall execute a counterpart of this Agreement, and upon execution by such additional
party and by the Company, shall be considered a Holder and Investor for purposes of this Agreement. The parties agree that the schedules
hereto shall be updated automatically without any formal amendment to reflect the addition of any such additional party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any
party upon any breach or default under this Agreement, shall be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective
only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to
any of the parties, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>United States Tax</u>.

&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Investors shall reasonably cooperate with the Company to provide information about the Investors in
order to enable the Company's tax advisors to determine the status of the Investors and/or any of the Investors' Partners
as a "United States Shareholder" within the meaning of Section 951(b) of the U.S. Internal Revenue Code of 1986,
as amended (the "**Code** "). No later than two (2) months following the end of each Company taxable year, for so long
as they are shareholders of the Company, the Company shall provide the following information to the Investors who are United States Shareholders
(" **US Investors** "): (i) the Company's capitalization table as of the end of the last day of such taxable year,
(ii) unless the Company has a taxable loss for the taxable year: (x) a report regarding the Company's status as a "Controlled
Foreign Corporation" ()"**CFC**") as defined in the Code, and (y) whether any portion of the Company's
income is "subpart F income" (as defined in Section 952 of the Code) ()"**Subpart F Income** "). For purposes
of this Section 5, the term "**Partners**" shall mean each of the US Shareholder's respective partners and any
direct or indirect equity owners of such partners.

&nbsp;&nbsp;&nbsp;&nbsp;5.2 In the event that the Company is determined by the Company's tax advisors or by counsel or accountants
for any US Investor or any of its Affiliates to be a CFC, the Company agrees to use commercially reasonable efforts to avoid generating
Subpart F Income.

&nbsp;&nbsp;&nbsp;&nbsp;5.3 The Company shall use its commercially reasonable efforts to avoid being a "passive foreign investment
company" within the meaning of Section 1297 of the Code (a "**PFIC** "), without causing any damage to the Company
as determined by the CEO in his/her sole discretion. In connection with a "Qualified Electing Fund" election made by the Investors'
Partners pursuant to Section 1295 of the Code or a "Protective Statement" filed by the Investors' Partners pursuant
to Treasury Regulation Section 1.1295-3, as amended (or any successor thereto), the Company shall provide annual financial information
to the US Investors in the form provided in the PFIC Exhibit attached hereto as <u>Exhibit A</u> (or in such other form as may
be required to reflect changes in applicable law) as soon as reasonably practicable following the end of each taxable year of the Company
(but in no event later than 60 days following the end of each such taxable year), and shall provide the US Investors with access to such
other Company information as may reasonably be required and available in the possession of the Company for purposes of filing U.S. federal
income tax returns of the Investors' Partners in connection with any such Qualified Electing Fund election or Protective Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The Company shall take such actions, including making an election to be treated as a corporation or refraining
from making an election to be treated as a partnership, as may be required to ensure that at all times the company is classified as corporation
for United States federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;5.5 The Company shall cooperate with the US Investors' tax advisors at least on an annual basis regarding
whether the US Investors or any of their respective Partners' direct or indirect interest in the Company is subject to the reporting
requirements of either or both of Sections 6038 and 6038B of the Code, and in the event that any US Investor or any of the Investor's
Partner's direct or indirect interest in Company is determined by the US Investor's tax advisors to be subject to the reporting
requirements of either or both of Sections 6038 and 6038B Company agrees, upon a request from such US Investor, to use commercially reasonable
efforts to provide access to such information (at such Investor's expense) to such Investor as may be necessary to fulfill such US Investor's
or such Investor's Partner's obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;5.6 All costs payable to outside consultants in order to prepare any of the reports mentioned above shall
be borne by the US Investors including without limitation, (i) the reports or information to be supplied per sub-section 5.1; (ii) the
annual PFIC Exhibit; and (iii) the annual check required in Section 5.4.

[signature pages to follow]

**In Witness Whereof**, the parties hereto have caused this Investor Rights Agreement to be duly executed on the day and year first above written:

---

| |
|:---|
| **The Company:** |
| **Silentium Ltd.** |
| /s/ Yoel Naor |
| By: Yoel Naor |
| Title: CEO |

---

*[Silentium Ltd. **–** Rights Agreement **–** Company Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Black Inc. | Black Inc. |
| By: | /s/ Larry Krauss |
| Name: | Larry Krauss |
| Title: | aso |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Terra Venture Partners SCA (in liquidation) | Terra Venture Partners SCA (in liquidation) |
| By: | /s/ Astorre Modena |
| Name: | Astorre Modena |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Terra Venture Partners | Terra Venture Partners |
| By: | /s/ Astorre Modena |
| Name: |  |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| [Name of Investor] | [Name of Investor] |
| By: | /s/ Astorre and Luisa Modena |
| Name: | Astorre and Luisa Modena |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| [Name of Investor] | [Name of Investor] |
| By: | /s/ Maria Mayer Modena |
| Name: | Maria Mayer Modena |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| [Name of Investor] | [Name of Investor] |
| By: | /s/ Sarah Louise Nathan |
| Name: | Sarah Louise Nathan |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| [Name of Investor] | [Name of Investor] |
| By: | /s/ Jacques Spijer |
| Name: | Jacques Spijer |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Simon Haggiag | Simon Haggiag |
| By: | /s/ Simon Haggiag |
| Name: | Simon Haggiag |
| Title: | Principal |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Hallfield Holdings Limited | Hallfield Holdings Limited |
| By: | /s/ Nicholas Pell |
| Name: | Nicholas Pell |
| Title: | Authorised signatory of Mehi River, corporate director |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **Investor** | **Investor** | **Investor** |
| Batten Trustee Ltd as trustee for Arrow Trust | Batten Trustee Ltd as trustee for Arrow Trust | Batten Trustee Ltd as trustee for Arrow Trust |
| By: | /s/ Richard Taylor | /s/ Pravir Tesiram |
| Name: | Richard Taylor | Pravir Tesiram |
| Title: | Director | Director |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Alan Franco | Alan Franco |
| By: | /s/ Alan Franco |
| Name: | Alan Franco |
| Title: | individual investor |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| iVentures Asia Ltd, Heliant Ventures Ltd, Heliant Ventures II Ltd., Heliant Investment Management Limited | iVentures Asia Ltd, Heliant Ventures Ltd, Heliant Ventures II Ltd., Heliant Investment Management Limited |
| By: | /s/ Benjamin Eli Weiss |
| Name: | Benjamin Eli Weiss |
| Title: | Director |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Manikandan Natarajan | Manikandan Natarajan |
| By: | /s/ MANIKANDAN NATARAJAN |
| Name: | MANIKANDAN NATARAJAN |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

 

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Haihong China Co., Limited | Haihong China Co., Limited |
| By: | /s/ Kim Young Jun |
| Name: | Kim Young Jun |
| Title: | Director |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| [Name of Investor] | [Name of Investor] |
| By: | /s/ Peng Jian Hu |
| Name: |  |
| Title: |  |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Anna (Yue Lei Shen Shen) | Anna (Yue Lei Shen Shen) |
| By: | /s/ Anna (Yue Lei Shen Shen) |
| Name: | Anna (Yue Lei Shen Shen) |
| Title: | Miss |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Palisades Capital LLC | Palisades Capital LLC |
| By: | /s/ Zev Safran |
| Name: | Zev Safran |
| Title: | Manager |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| Sigang Qin | Sigang Qin |
| By: | /s/ Qin Sigang |
| Name: | Qin Sigang |
| Title: | Dr. |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Ordinary Shareholder:** | **Ordinary Shareholder:** |
| By: | /s/ Larry Krauss |
| Name: | Larry Krauss |
| Title: | aso |

---

*[Silentium Ltd. **–** Rights Agreement **–** Ordinary Shareholder Signature Page]*

**In Witness Whereof**, the parties hereto have caused this Amended and Restated Investor Rights Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| **Investor** | **Investor** |
| ALPHA Beteiligungs und Verwaltungsgesellscaft.m.b.H | ALPHA Beteiligungs und Verwaltungsgesellscaft.m.b.H |
| By: | /s/ Clemente Corsini |
| Name: | Clemente Corsini |
| Title: | Managing Director |

---

*[Silentium Ltd. **–** Rights Agreement **–** Investor Signature Page]*

**<u>SCHEDULE A</u>**

**INVESTORS**

**Naor Group, Black Inc.**

[\*\*\*]

Attn: Larry Kraus

Email: [\*\*\*]

**Terra Venture Partners S.C.A. SICAR**

**Terra Venture Partners, L.P.**

**Astorre Modena**

**Simone Haggiag**

[\*\*\*]

Attn: Simone Haggiag

Email: [\*\*\*]

**Hallfield Holdings**

[\*\*\*]

Attn: Nicholas Pell

Email: [\*\*\*]

**Batten Trustee Ltd as trustee of the Arrow Trust**

[\*\*\*]

Attn: Richard Taylor

Email: [\*\*\*]

Attn: Pravir Tesiram

Email: [\*\*\*]

**Alan Franco**

[\*\*\*]

Attn: Alan Franco

Email: [\*\*\*]

**ALPHA Beteiligungs- und Verwaltugsgesellschaft m.b.H**

[\*\*\*]

Attn: Clemente Corsini

Email: [\*\*\*]

**Ben Weiss**

**Manikandan Natarajan**

[\*\*\*]

Attn: Manikandan Natarajan

Email: [\*\*\*]

**Dr. Sigang Qin**

[\*\*\*]

Attn: Dr.Sigang Qin

Email: [\*\*\*]

**Haihong China Co., Ltd.**

**Jian Hu Peng**

[\*\*\*]

Attn: Peng Jianhu

Email: [\*\*\*]

**Yue Li Shen**

Email: [\*\*\*]

**Palisides Capital LLC**

[\*\*\*]

Attn: Zev Safran

Email: [\*\*\*]

**<u>SCHEDULE B</u>**

**ORDINARY SHAREHOLDERS**

**Larry Kraus**

[\*\*\*]

**Ben Weiss**

<u>EXHIBIT A</u>

<u>PFIC Exhibit</u>

Annual Information Statement

**(1)** ____ **This questionnaire applies to the taxable year of [_____________] (the "** <u>Company</u> **")** beginning on January 1, 20__, and ending on December 31, 20__.

---

| | | |
|:---|:---|:---|
| **(2)** | ____ | PLEASE CHECK HERE IF 75% OR MORE OF THE COMPANY**'**S GROSS INCOME CONSTITUTES PASSIVE INCOME. |
|  |  | <u>Passive income</u>: For purposes of this test, passive income includes: |

---

▪ Dividends,
 interests, royalties, rents and annuities,  ***excluding*** , however, rents and royalties
 which are received from an unrelated party in connection with the active conduct of a trade
 or business.

▪ Net
 gains from the sale or exchange of property **—** 

O which gives
 rise to dividends, interest, rents or annuities ( ***excluding*** , however, property
 used in the conduct of a banking, finance or similar business, or in the conduct of an insurance
 business);

O which is
 an interest in a trust, partnership, or REMIC; or

O which does
 not give rise to income.

▪ Net
 gains from transactions in commodities.

▪ Net
 foreign currency gains.

▪ Any
 income equivalent to interest.

<u>Look-through rule</u>: if the Company owns, directly or indirectly, 25% of the stock by value of another corporation, the Company must take into account its proportionate share of the income received by such other corporation.

**(3)** ____ PLEASE CHECK HERE IF THE AVERAGE FAIR MARKET VALUE DURING THE TAXABLE YEAR OF PASSIVE ASSETS HELD BY THE
COMPANY EQUALS 50% OR MORE OF THE AVERAGE FAIR MARKET VALUE OF ALL OF THE COMPANY **'** S ASSETS.

*Note*: This test is applied on a gross basis; no liabilities are taken into account.

<u>Passive Assets</u>**: For purposes of this test, "passive assets" are those assets which generate** (or are reasonably expected to generate) passive income (as defined above). Assets which generate partly passive and partly non-passive income are considered passive assets to the extent of the relative proportion of passive income (compared to non-passive income) generated in a particular taxable year by such assets. Please note the following:

▪ A
 trade or service receivable is non-passive if it results from sales or services provided
 in the ordinary course of business.

▪ Intangible
 assets that produce identifiable items of income, such as patents or licenses, are characterized
 in terms of the type of income produced.

▪ Goodwill
 and going concern value must be identified to a specific income producing activity and are
 characterized in accordance with the nature of that activity.

▪ Cash
 and other assets easily convertible into cash are passive assets, even when used as working
 capital.

▪ Stock
 and securities (including tax-exempt securities) are passive assets, unless held by a dealer
 as inventory.

---

| |
|:---|
| <u>Average value:</u> For purposes of this test, "average fair market value" equals the average quarterly fair market value of the assets for the relevant taxable year. |
| <u>Look-through rule</u>: if the Company owns, directly or indirectly, 25% of the stock by value of another corporation, the Company must take into account its proportionate share of the passive assets of such other corporation. |

---

**(4)** **____** PLEASE CHECK HERE IF (A) MORE THAN 50% OF THE COMPANY **'** S STOCK (BY VOTING POWER
OR BY VALUE) IS OWNED BY FIVE OR FEWER U.S. PERSONS OR ENTITIES AND (B) THE AVERAGE AGGREGATE ADJUSTED
TAX BASES (AS DETERMINED UNDER U.S. TAX PRINCIPLES) DURING THE TAXABLE YEAR OF THE PASSIVE ASSETS HELD BY THE COMPANY EQUALS 50% OR MORE
OF THE AVERAGE AGGREGATE ADJUSTED TAX BASES OF ALL OF THE COMPANY **'** S ASSETS.

---

| |
|:---|
| <u>Average value</u>**: For purposes of this test, "average aggregate adjusted tax bases" equals the** average quarterly aggregate adjusted tax bases of the assets for the relevant taxable year. |
| <u>Look-through rule</u>: if the Company owns, directly or indirectly, 25% of the stock by value of another corporation, the Company must take into account its proportionate share of the passive assets of such other corporation |

---

---

| | |
|:---|:---|
| **(5)** | [INVESTOR] HAS THE FOLLOWING PRO-RATA SHARE OF THE ORDINARY EARNINGS AND NET CAPITAL GAIN OF THE COMPANY AS DETERMINED UNDER U.S. INCOME TAX PRINCIPLES FOR THE TAXABLE YEAR OF THE COMPANY: |
|  | Ordinary Earnings: __________________ (as determined under U.S. income tax principles)<br>Net Capital Gain: ____________________ (as determined under U.S income tax principles) |
|  | <u>Pro Rata Share</u>: For purposes of the foregoing, the shareholder's pro rata share equals the amount that would have been distributed with respect to the shareholder's stock if, on each day during the taxable year of the Company, the Company had distributed to each shareholder its pro rata share of that day's ratable share (determined by allocating to each day of the year, an equal amount of the Company's aggregate ordinary earnings and aggregate net capital gain for such year) of the Company's ordinary earnings and net capital gain for such year. Determination of a shareholder's pro rata share will require reference to the Company's charter, certificate of incorporation, articles of association or other comparable governing document. |

---

**(6)** The amount
 of cash and fair market value of other property distributed or deemed distributed by Company
 to [Investor] during the taxable year specified in paragraph 1. is as follows:

Cash: _________________

Fair Market Value of Property: ____________________

**(7)** Company
 will permit [Investor] to inspect and copy Company's permanent books of account, records,
 and such other documents as may be maintained by Company that are necessary to establish
 that PFIC ordinary earnings and net capital gain, as provided in Section 1293(e) of
 the U.S. Internal Revenue Code of 1986, as amended (or any successor provision thereto),
 are computed in accordance with U.S. income tax principles.

## Exhibit 10.4

**Exhibit 10.4**

**ISRAELI SHARE OPTION PLAN**

**Silentium Ltd.**

**THE 2013 ISRAELI SHARE OPTION PLAN**

**(\*In compliance with Amendment No. 132 of the Israeli Tax Ordinance, 2002)**

**ISRAELI SHARE OPTION PLAN**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **1. PURPOSE OF THE ISOP** | 3.0 |
| **2. DEFINITIONS** | 3.0 |
| **3. ADMINISTRATION OF THE ISOP** | 6.0 |
| **4. DESIGNATION OF PARTICIPANTS** | 7.0 |
| **5. DESIGNATION OF OPTIONS PURSUANT TO SECTION 102** | 8.0 |
| **6. TRUSTEE** | 9.0 |
| **7. SHARES RESERVED FOR THE ISOP** | 10.0 |
| **8. PURCHASE PRICE** | 10.0 |
| **9. ADJUSTMENTS** | 11.0 |
| **10. TERM AND EXERCISE OF OPTIONS** | 12.0 |
| **11. VESTING OF OPTIONS** | 14.0 |
| **12. SHARES SUBJECT TO RIGHT OF FIRST REFUSAL** | 14.0 |
| **13. DIVIDENDS** | 15.0 |
| **14. RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS** | 15.0 |
| **15. EFFECTIVE DATE AND DURATION OF THE ISOP** | 16.0 |
| **16. AMENDMENTS OR TERMINATION** | 16.0 |
| **17. GOVERNMENT REGULATIONS** | 16.0 |
| **18. CONTINUANCE OF EMPLOYMENT** | 17.0 |
| **19. GOVERNING LAW & JURISDICTION** | 17.0 |
| **20. TAX CONSEQUENCES** | 17.0 |
| **21. NON-EXCLUSIVITY OF THE ISOP** | 17.0 |
| **22. MULTIPLE AGREEMENTS** | 18.0 |

---

**ISRAELI SHARE OPTION PLAN**

This plan, as amended from time to time, shall be known as Silentium Ltd 2013 Israeli Share Option Plan (the **"ISOP").**

**1.** **PURPOSE OF THE ISOP** 

The ISOP is intended to provide an incentive to retain, in the employ of the Company and its Affiliates (as defined below), persons of training, experience, and ability, to attract new employees, directors, consultants, service providers and any other entity winch the Board shall decide their services are considered valuable to the Company, to encourage the sense of proprietorship of such persons, and to stimulate the active interest of such persons in the development and financial success of the Company by providing them with opportunities to purchase shares in the Company, pursuant to the ISOP.

**2.** **DEFINITIONS** 

For purposes of the ISOP and related documents, including the Option Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **"Affiliate"** means any "employing company" within the meaning of Section 102(a) of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **"Approved 102 Option"** means an Option granted pursuant to Section 102(b) of the Ordinance and held in trust by a Trustee
for the benefit of the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **"Board"** means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 **"Capital Gain Option (CGO)"** as defined in Section 5.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 **"Cause"** means, (i) conviction of any felony involving moral turpitude or affecting the Company; (ii) any refusal to carry
out a reasonable directive of the chief executive officer, the Board or the Optionee's direct supervisor, which involves the business
of the Company or its Affiliates and was capable of being lawfully performed; (iii) embezzlement of funds of the Company or its
Affiliates; (iv) any breach of the Optionee's fiduciary duties or duties of care of the Company; including without limitation
disclosure of confidential information of the Company; and (v) any conduct (other than conduct in good faith) reasonably determined
by the Board to be materially detrimental to the Company.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 **"Chairman"** means the chairman of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 **"Committee"** means a share option compensation committee appointed by the Board, which
shall consist of no fewer than two members of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 **"Company"** means Silentium Ltd, an Israeli company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 **"Companies Law"** means the Israeli Companies Law 5759-1999.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 **"Controlling Shareholder"** shall have the meaning ascribed to it in Section 32(9) of
the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 **"Date of Grant"** means, the date of grant of an Option, as determined by the Board and
set forth in the Optionee's Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 **Employee"** means a person who is employed by the Company or its Affiliates, including an individual
who is serving as a director or an office holder, but excluding Controlling Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 **"Expiration date"** means the date upon which an Option shall expire, as set forth in
Section 10.2 of the ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 **"Fair Market Value"** means as of any date, the value of a Share determined as follows:

(i) If the Shares are listed on any established stock exchange or a national market system, including without limitation the NASDAQ National Market system, or the NASDAQ SmallCap Market of the NASDAQ Stock Market, the Fair Market Value shall be the closing sales price for such Shares (or the closing bid, if no sales were reported), as quoted on such exchange or system for the last market trading day prior to time of determination, as reported in the Wall Street Journal, or such other source as the Board deems reliable. Without derogating from the above, solely for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if at the Date of Grant the Company's shares are listed on any established stock exchange or a national market system or if the Company's shares will be registered for trading within ninety (90) days following the Date of Grant, the Fair Market Value of a Share at the Date of Grant shall be determined in accordance with the average value of the Company's shares on the thirty (30) trading days preceding the Date of Grant or on the thirty (30) trading days following the date of registration for trading, as the case may be;

(ii) If the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for the Shares on the last market trading day prior to the day of determination, or;

(iii) In the absence of an established market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Board.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 **"IPO"** means the initial public offering of the Company's shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 **"ISOP"** means this 2013 Israeli Share Option Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 **"ITA"** means the Israeli Tax Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 **"Non-Employee"** means a consultant, adviser, service provider, Controlling Shareholder
or any other person who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 **"Ordinary Income Option (OIO)"** as defined in Section 5.5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 **"Option"** means an option to purchase one or more Shares of the Company pursuant to
the ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 **"102 Option"** means any Option granted to Employees pursuant to Section 102 of
the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 **"3(i) Option"** means an Option granted pursuant to Section 3(i) of the
Ordinance to any person who is Non- Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 **"Optionee"** means a person who receives or holds an Option under the ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 **"Option Agreement"** means the share option agreement between the Company and an Optionee
that sets out the terms and conditions of an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 **"Ordinance"** means the 1961 Israeli Income Tax Ordinance [New Version] 1961 as now in
effect or as hereafter amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 **"Purchase Price"** means the price for each Share subject to an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 **"Section 102"** means section 102 of the Ordinance as now in effect or as hereafter
amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 **"Share"** means the ordinary shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 **"Successor Company"** means any entity the Company is merged to or is acquired by, in
which the Company is not the surviving entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 **"Transaction"** means (i) merger, acquisition or reorganization of the Company with
one or more other entities in which the Company is not the surviving entity, (ii) a sale of all or substantially all of the assets
of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 **"Trustee"** means any individual appointed by the Company to serve as a trustee and approved
by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 **"Unapproved 102 Option"** means an Option granted pursuant to Section 102(c) of
the Ordinance and not held in trust by a Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 **"Vested Option"** means any Option, which has already been vested according to the Vesting
Dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 **"Vesting Dates"** means, as determined by the Board or by the Committee, the date as
of which the Optionee shall be entitled to exercise the Options or part of the Options, as set forth in section 11 of the ISOP.

**3.** **ADMINISTRATION OF THE ISOP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Board shall have the power to administer the ISOP either directly or upon the recommendation of the
Committee, all as provided by applicable law and in the Company's Articles of Association. Notwithstanding the above, the Board
shall automatically have residual authority if no Committee shall be constituted or if such Committee shall cease to operate for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Committee shall select one of its members as its Chairman and shall hold its meetings at such times
and places as the Chairman shall determine. The Committee shall keep records of its meetings and shall make such rules and regulations
for the conduct of its business as it shall deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The Committee shall have the power to recommend to the Board and the Board shall have the full power and
authority to: (i) designate participants; (ii) determine the terms and provisions of the respective Option Agreements, including,
but not limited to, the number of Options to be granted to each Optionee, the number of Shares to be covered by each Option, provisions
concerning the time and the extent to which the Options may be exercised and the nature and duration of restrictions as to the transferability
or restrictions constituting substantial risk of forfeiture and to cancel or suspend awards, as necessary; (iii) determine the Fair
Market Value of the Shares covered by each Option; (iv) make an election as to the type of Approved 102 Option; and (v) designate
the type of Options.

The Committee shall have full power and authority to :(i) alter any restrictions and conditions of any Options or Shares subject to any Options (ii) interpret the provisions and supervise the administration of the ISOP; (iii) accelerate the right of an Optionee to exercise in whole or in part, any previously granted Option; (iv) determine the Purchase Price of the Option; (v) prescribe, amend and rescind rules and regulations relating to the ISOP; and (vi) make all other determinations deemed necessary or advisable for the administration of the ISOP.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Notwithstanding the above, the Committee shall not be entitled to grant Options to the Optionees, however,
it will be authorized to issue Shares underlying Options which have been granted by the Board and duly exercised pursuant to the provisions
herein in accordance with section 112(a)(5) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The Board shall have the authority to grant, at its discretion, to the holder of an outstanding Option,
in exchange for the surrender and cancellation of such Option, a new Option having a purchase price equal to, lower than or higher than
the Purchase Price of the original Option so surrendered and canceled and containing such other terms and conditions as the Committee
may prescribe in accordance with the provisions of the ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Subject to the Company's Articles of Association, all decisions and selections made by the Board
or the Committee pursuant to the provisions of the ISOP shall be made by a majority of its members except that no member of the Board
or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed action of the Board or the Committee relating
to any Option to be granted to that member. Any decision reduced to writing shall be executed in accordance with the provisions of the
Company's Articles of Association, as the same may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The interpretation and construction by the Committee of any provision of the ISOP or of any Option Agreement
thereunder shall be final and conclusive unless otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 Subject to the Company's Articles of Association and the Company's decision, and to all approvals
legally required, including, but not limited to the provisions of the Companies Law, each member of the Board or the Committee shall be
indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him, or any liability
(including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection
with the ISOP unless arising out of such member's own fraud or bad faith, to the extent permitted by applicable law. Such indemnification
shall be in addition to any rights of indemnification the member may have as a director or otherwise under the Company's Articles of Association,
any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise.

**4.** **DESIGNATION OF PARTICIPANTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The persons eligible for participation in the ISOP as Optionees
shall include any Employees and/or Non-Employees of the Company or of any Affiliate; provided, however, that (i) Employees may only
be granted 102 Options; (ii) Non-Employees may only be granted 3(i) Options; and (iii) Controlling Shareholders may only
be granted 3(i) Options.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The grant of an Option hereunder shall neither entitle the Optionee to participate nor disqualify the
Optionee from participating in, any other grant of Options pursuant to the ISOP or any other option or share plan of the Company or any
of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Anything in the ISOP to the contrary notwithstanding, all grants of Options to directors and office holders
shall be authorized and implemented in accordance with the provisions of the Companies Law or any successor act or regulation, as in effect
from time to time.

**5.** **DESIGNATION OF OPTIONS PURSUANT TO SECTION 102** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Company may designate Options granted to Employees pursuant to Section 102 as Unapproved 102
Options or Approved 102 Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 The grant of Approved 102 Options shall be made under this ISOP adopted by the Board as described in Section 15
below, and shall be conditioned upon the approval of this ISOP by the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Approved 102 Option may either be classified as Capital Gain Option **("CGO")** or Ordinary
Income Option **("OIO").** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Approved 102 Option elected and designated by the Company to qualify under the capital gain tax treatment
in accordance with the provisions of Section 102(b)(2) shall be referred to herein as **CGO.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 Approved 102 Option elected and designated by the Company to qualify under the ordinary income tax treatment
in accordance with the provisions of Section 102(b)(1) shall be referred to herein as **OIO.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 The Company's election of the type of Approved 102 Options as CGO or OIO granted to Employees (the **"Election"),** shall be appropriately filed with the ITA before the Date of Grant of an Approved 102 Option. Such Election
shall become effective beginning the first Date of Grant of an Approved 102 Option under this ISOP and shall remain in effect at least
until the end of the year following the year during which the Company first granted Approved 102 Options. The Election shall obligate
the Company to grant *only* the type of Approved 102 Option it has elected, and shall apply to all Optionees who were granted Approved
102 Options during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance. For
the avoidance of doubt, such Election shall not prevent the Company from granting Unapproved 102 Options simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 All Approved 102 Options must be held in trust by a Trustee, as described in Section 6 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 For the avoidance of doubt, the designation of Unapproved 102 Options and Approved 102 Options shall be
subject to the terms and conditions set forth in Section 102 of the Ordinance and the regulations promulgated thereunder.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 With regards to Approved 102 Options, the provisions of the ISOP and/or the Option Agreement shall be
subject to the provisions of Section 102 and the Tax Assessing Officer's permit, and the said provisions and permit shall be
deemed an integral part of the ISOP and of the Option Agreement. Any provision of Section 102 and/or the said permit which is necessary
in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the ISOP or the Option
Agreement, shall be considered binding upon the Company and the Optionees.

**6.** **TRUSTEE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Approved 102 Options which shall be granted under the ISOP and/or any Shares allocated or issued upon
exercise of such Approved 102 Options and/or other shares received subsequently following any realization of rights, including without
limitation bonus shares, shall be allocated or issued to the Trustee and held for the benefit of the Optionees for such period of time
as required by Section 102 or any regulations, rules or orders or procedures promulgated thereunder (the **"Holding Period").** In the case the requirements for Approved 102 Options are not met, then the Approved 102 Options may be treated as Unapproved 102 Options,
all in accordance with the provisions of Section 102 and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Notwithstanding anything to the contrary, the Trustee shall not release any Shares allocated or issued
upon exercise of Approved 102 Options prior to the full payment of the Optionee's tax liabilities arising from Approved 102 Options
which were granted to him and/or any Shares allocated or issued upon exercise of such Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 With respect to any Approved 102 Option, subject to the provisions of Section 102 and any rules or
regulation or orders or procedures promulgated thereunder, an Optionee shall not sell or release from trust any Share received upon the
exercise of an Approved 102 Option and/or any share received subsequently following any realization of rights, including without limitation,
bonus shares, until the lapse of the Holding Period required under Section 102 of the Ordinance. Notwithstanding the above, if any
such sale or release occurs during the Holding Period, the sanctions under Section 102 of the Ordinance and under any rules or
regulation or orders or procedures promulgated thereunder shall apply to and shall be borne by such Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Upon receipt of Approved 102 Option, the Optionee will sign an undertaking to release the Trustee from
any liability in respect of any action or decision duly taken and bona fide executed in relation with the ISOP, or any Approved 102 Option
or Share granted to him thereunder.

**ISRAELI SHARE OPTION PLAN**

**7.** **SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 The
Company has reserved _____________authorized but unissued Shares, for the purposes of the ISOP
and for the purposes of any other share option plans which may be adopted by the Company in the future, subject to adjustment as set
forth in Section 9 below. Any Shares which remain unissued and which are not subject to the outstanding Options at the termination
of the ISOP shall cease to be reserved for the purpose of the ISOP, but until termination of the ISOP the Company shall at all times
reserve sufficient number of Shares to meet the requirements of the ISOP. Should any Option for any reason expire or be canceled prior
to its exercise or relinquishment in full, the Shares subject to such Option may again be subjected to an Option under the ISOP or under
the Company's other share option plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Each Option granted pursuant to the ISOP, shall be evidenced by a written Option Agreement between the
Company and the Optionee, in such form as the Board or the Committee shall from time to time approve. Each Option Agreement shall state,
among other matters, the number of Shares to which the Option relates, the type of Option granted thereunder (whether a CGO, OIO, Unapproved
102 Option or a 3(i) Option), the Vesting Dates, the Purchase Price per share, the Expiration Date and such other terms and conditions
as the Committee or the Board in its discretion may prescribe, provided that they are consistent with this ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Until the consummation of an IPO, such Shares shall be voted by an irrevocable proxy (the **''Proxy")** pursuant to the directions of the Board, such Proxy to be assigned to the person or persons designated by the Board. Such person or persons
designated by the Board shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably
incurred by him/her, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of
any act or omission to act in connection with the voting of such Proxy unless arising out of such member's own fraud or bad faith, to
the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the person(s) may
have as a director or otherwise under the Company's Articles of Association, any agreement, any vote of shareholders or disinterested
directors, insurance policy or otherwise. Without derogating from the above, with respect to Approved 102 Options, such shares shall be
voted in accordance with the provisions of Section 102 and any rules, regulations or orders promulgated thereunder.

**8.** **PURCHASE PRICE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The Purchase Price of each Share subject to an Option shall be determined by the Committee in its sole
and absolute discretion in accordance with applicable law, subject to any guidelines as may be determined by the Board from time to time.
Each Option Agreement will contain the Purchase Price determined for each Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 The Purchase Price shall be payable upon the exercise of the Option in a form satisfactory to the Committee, including without limitation,
by cash or check. The Committee shall have the authority to postpone the date of payment on such terms as it may determine.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 The Purchase Price shall be denominated in the currency of the
primary economic environment of, either the Company or the Optionee (that is the functional currency of the Company or the currency in
which the Optionee is paid) as determined by the Company.

**9.** **ADJUSTMENTS** 

Upon the occurrence of any of the following described events, Optionee's rights to purchase Shares under the ISOP shall be adjusted as hereafter provided:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 In the event of Transaction, the unexercised Options then outstanding under the ISOP shall be assumed
or substituted for an appropriate number of shares of each class of shares or other securities of the Successor Company (or a parent or
subsidiary of the Successor Company) as were distributed to the shareholders of the Company in connection and with respect to the Transaction,
hi the case of such assumption and/or substitution of Options, appropriate adjustments shall be made to the Purchase Price so as to reflect
such action and all other terms and conditions of the Option Agreements shall remain unchanged, including but not limited to the vesting
schedule, all subject to the determination of the Committee or the Board, which determination shall be in their sole discretion and final.
The Company shall notify the Optionee of the Transaction in such form and method as it deems applicable at least ten (10) days prior
to the effective date of such Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Notwithstanding the above and subject to any applicable law, the Board or the Committee shall have full
power and authority to determine that in certain Option Agreements there shall be a clause instructing that, if in any such Transaction
as described in section 9.1 above, the Successor Company (or parent or subsidiary of the Successor Company) does not agree to assume or
substitute for the Options, the Vesting Dates shall be accelerated so that any unvested Option or any portion thereof shall be immediately
vested as of the date which is ten (10) days prior to the effective date of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 For the purposes of section 9.1 above, an Option shall be considered assumed or substituted if, following
the Transaction, the Option confers the right to purchase or receive, for each Share underlying an Option immediately prior to the Transaction,
the consideration (whether shares, options, cash, or other securities or property) received in the Transaction by holders of shares held
on the effective date of the Transaction (and if such holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the Transaction is
not solely ordinary shares (or their equivalent) of the Successor Company or its parent or subsidiary, the Committee may, with the consent
of the Successor Company, provide for the consideration to be received upon the exercise of the Option to be solely ordinary shares (or
their equivalent) of the Successor Company or its parent or subsidiary equal in Fair Market Value to the per Share consideration
received by holders of a majority of the outstanding shares in the Transaction; and provided further that the Committee may determine,
in its discretion, that in lieu of such assumption or substitution of Options for options of the Successor Company or its parent or subsidiary,
such Options will be substituted for any other type of asset or property including cash which is fair under the circumstances.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 If the Company is voluntarily liquidated or dissolved while unexercised Options remain outstanding under
the ISOP, the Company shall immediately notify all unexercised Option holders of such liquidation, and the Option holders shall then have
ten (10) days to exercise any unexercised Vested Option held by them at that time, in accordance with the exercise procedure set
forth herein. Upon the expiration of such ten-days period, all remaining outstanding Options will terminate immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 If the outstanding shares of the Company shall at any time be changed or exchanged by declaration of a
share dividend (bonus shares), share split, combination or exchange of shares, recapitalization, or any other like event by or of the
Company, and as often as the same shall occur, then the number, class and kind of the Shares subject to the ISOP or subject to any Options
therefore granted, and the Purchase Prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of
Shares without changing the aggregate Purchase Price, provided, however, that no adjustment shall be made by reason of the distribution
of subscription rights (rights offering) on outstanding shares. Upon happening of any of the foregoing, the class and aggregate number
of Shares issuable pursuant to the ISOP (as set forth in Section 7 hereof), in respect of which Options have not yet been exercised,
shall be appropriately adjusted, all as will be determined by the Board whose determination shall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Anything herein to the contrary notwithstanding, if prior to the completion of the IPO all or substantially
all of the shares of the Company are to be sold, or in case of a Transaction, all or substantially all of the shares of the Company are
to be exchanged for securities of another Company, then each Optionee shall be obliged to sell or exchange, as the case may be, any Shares
such Optionee purchased under the ISOP, in accordance with the instructions issued by the Board in connection with the Transaction, whose
determination shall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 The Optionee acknowledges that in the event that the Company's shares shall be registered for trading
in any public market, Optionee's rights to sell the Shares may be subject to certain limitations (including a lock-up period), as
will be requested by the Company or its underwriters, and the Optionee unconditionally agrees and accepts any such limitations.

**10.** **TERM AND EXERCISE OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Options shall be exercised by the Optionee by giving written notice to the Company and/or to any third
party designated by the Company (the **"Representative"),** in such form and method as may be determined by the Company
and when applicable, by the Trustee in accordance with the requirements
of Section 102, which exercise shall be effective upon receipt of such notice by the Company and/or the Representative and the payment
of the Purchase Price at the Company's or the Representative's principal office. The notice shall specify the number of Shares
with respect to which the Option is being exercised.

**ISRAELI SHARE OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Options, to the extent not previously exercised, shall terminate forthwith upon the earlier of: (i) the
date set forth in the Option Agreement; and (ii) the expiration of any extended period in any of the events set forth in section
10.5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 The Options may be exercised by the Optionee in whole at any time or in part from time to time, to the
extent that the Options become vested and exercisable, prior to the Expiration Date, and provided that, subject to the provisions of section
10.5 below, the Optionee is employed by or providing services to the Company or any of its Affiliates, at all times during the period
beginning with the granting of the Option and ending upon the date of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Subject to the provisions of section 10.5 below, in the event of termination of Optionee's employment
or services, with the Company or any of its Affiliates, all Options granted to such Optionee will immediately expire. A notice of termination
of employment or service shall be deemed to constitute termination of employment or service. For the avoidance of doubt, in case of such
termination of employment or service, the unvested portion of the Optionee's Option shall not vest and shall not become exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 Notwithstanding anything to the contrary hereinabove and unless otherwise determined in the Optionee's
Option Agreement, an Option may be exercised after the date of termination of Optionee's employment or service with the Company or any
Affiliates during an additional period of time beyond the date of such termination, but only with respect to the number of Vested Options
at the time of such termination according to the Vesting Dates, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) termination is without Cause, in which event any Vested Option still in force and unexpired may be exercised
within a period of ninety (90) days after the date of such termination; or-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) termination is the result of death or disability of the Optionee, in which event any Vested Option still
in force and unexpired may be exercised within a period of twelve (12) months after the date of such termination; or -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prior to the date of such termination, the Committee shall authorize an extension of the terms of all
or part of the Vested Options beyond the date of such termination for a period not to exceed the period during which the Options by their
terms would otherwise have been exercisable.

**ISRAELI SHARE OPTION PLAN**

For avoidance of any doubt, if termination of employment or service is for Cause, any outstanding unexercised Option (whether vested or non-vested), will immediately expire and terminate, and the Optionee shall not have any right in connection to such outstanding Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 To avoid doubt, the Optionees shall not have any of the rights
or privileges of shareholders of the Company in respect of any Shares purchasable upon the exercise of any Option, nor shall they be
deemed to be a class of shareholders or creditors of the Company for purpose of the operation of sections 350 and 351 of the Companies
Law or any successor to such section, until registration of the Optionee as holder of such Shares in the Company's register of
shareholders upon exercise of the Option in accordance with the provisions of the ISOP, but in case of Options and Shares held by the
Trustee, subject to the provisions of Section 6 of the ISOP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 Any form of Option Agreement authorized by the ISOP may contain
such other provisions as the Committee may, from time to time, deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 With respect to Unapproved 102 Option, if the Optionee ceases to be employed by the Company or any Affiliate,
the Optionee shall extend to the Company and/or its Affiliate a security or guarantee for the payment of tax due at the time of sale of
Shares, all in accordance with the provisions of Section 102 and the rules, regulation or orders promulgated thereunder.

**11.** **VESTING OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Subject to the provisions of the ISOP, each Option shall vest following the Vesting Dates and for the
number of Shares as shall be provided in the Option Agreement. However, no Option shall be exercisable after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 An Option may be subject to such other terms and conditions on the time or times when it may be exercised,
as the Committee may deem appropriate. The vesting provisions of individual Options may vary.

**12.** **SHARES SUBJECT TO RIGHT OF FIRST REFUSAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. 1 Notwithstanding anything to the contrary in the Articles of
Association of the Company, none of the Optionees shall have a right of first refusal in relation with any sale of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Unless otherwise determined by the Committee, until such time
as the Company shall complete an IPO, an Optionee shall not have the right to sell Shares issued upon the exercise of an Option within
six (6) months and one day of the date of exercise of such Option or issuance of such Shares. Unless otherwise determined by the
Committee, until such time as the Company shall complete an
IPO, the sale of Shares issuable upon the exercise of an Option shall be subject to a right of first refusal on the part of the Repurchaser(s).

**ISRAELI SHARE OPTION PLAN**

Repurchaser(s) means (i) the Company, if permitted by applicable law, (ii) if the Company is not permitted by applicable law , then any affiliate of the Company designated by the Committee; or (iii) if no decision is reached by the Committee, then the Company's existing shareholders (save, for avoidance of doubt, for other Optionees who already exercised their Options), pro rata in accordance with their shareholding. The Optionee shall give a notice of sale (hereinafter the **"Notice")** to the Company in order to offer the Shares to the Repurchaser(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 The Notice shall specify the name of each proposed purchaser
or other transferee (hereinafter the **"Proposed Transferee"),** the number of Shares offered for sale, the price per
Share and the payment terms. The Repurchaser(s) will be entitled for thirty (30) days from the day of receipt of the Notice (hereinafter
the **"Notice Period"),** to purchase all or part of the offered Shares on a pro rata basis based upon their respective
holdings in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 If by the end of the Notice Period not all of the offered Shares have been purchased by the Repurchaser(s),
the Optionee shall be entitled to sell such Shares at any time during the ninety (90) days following the end of the Notice Period on terms
not more favorable than those set out in the Notice, provided that the Proposed Transferee agrees in writing that the provisions of this
section shall continue to apply to the Shares in the hands of such Proposed Transferee. Any sale of Shares issued under the ISOP by the
Optionee that is not made in accordance with the ISOP or the Option Agreement shall be null and void.

**13.** **DIVIDENDS** 

With respect to all Shares (but excluding, for avoidance of any doubt, any unexercised Options) allocated or issued upon the exercise of Options purchased by the Optionee and held by the Optionee or by the Trustee, as the case may be, the Optionee shall be entitled to receive dividends in accordance with the quantity of such Shares, subject to the provisions of the Company's Articles of Association (and all amendments thereto) and subject to any applicable taxation on distribution of dividends, and when applicable subject to the provisions of Section 102 and the rules, regulations or orders promulgated thereunder.

**14.** **RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 No Option or any right with respect thereto, purchasable hereunder, whether fully paid or not, shall be
assignable, transferable or given as collateral or any right with respect to it given to any third party whatsoever, except as specifically
allowed under the ISOP, and during the lifetime of the Optionee each and all of such Optionee's rights to purchase Shares hereunder shall
be exercisable only by the Optionee.

**ISRAELI SHARE OPTION PLAN**

Any such action made directly or indirectly, for an immediate validation or for a future one, shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 As long as Options and/or Shares are held by the Trustee on behalf of the Optionee, all rights of the
Optionee over the Shares are personal, can not be transferred, assigned, pledged or mortgaged, other than by will or pursuant to the laws
of descent and distribution.

**15.** **EFFECTIVE DATE AND DURATION OF THE ISOP** 

The ISOP shall be effective as of the day it was adopted by the Board and shall terminate at the end of ten (10) years from such day of adoption.

The Company shall obtain the approval of the Company's shareholders for the adoption of this ISOP or for any amendment to this ISOP, if shareholders' approval is necessary or desirable to comply with any applicable law including without limitation the US securities law or the securities laws of other jurisdiction applicable to Options granted to Optionees under this ISOP, or if shareholders' approval is required by any authority or by any governmental agencies or national securities exchanges including without limitation the US Securities and Exchange Commission.

**16.** **AMENDMENTS OR TERMINATION** 

The Board may at any time, but when applicable, after consultation with the Trustee, amend, alter, suspend or terminate the ISOP. No amendment, alteration, suspension or termination of the ISOP shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Company, which agreement must be in writing and signed by the Optionee and the Company. Termination of the ISOP shall not affect the Committee's ability to exercise the powers granted to it hereunder with respect to Options granted under the ISOP prior to the date of such termination.

**17.** **GOVERNMENT REGULATIONS** 

The ISOP, and the granting and exercise of Options hereunder, and the obligation of the Company to sell and deliver Shares under such Options, shall be subject to all applicable laws, rules, and regulations, whether of the State of Israel or of the United States or any other State having jurisdiction over the Company and the Optionee, including the registration of the Shares under the United States Securities Act of 1933, and the Ordinance and to such approvals by any governmental agencies or national securities exchanges as may be required. Nothing herein shall be deemed to require the Company to register the Shares under the securities laws of any jurisdiction.

**ISRAELI SHARE OPTION PLAN**

**18.** **CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES** 

Neither the ISOP nor the Option Agreement with the Optionee shall impose any obligation on the Company or an Affiliate thereof, to continue any Optionee in its employ or service, and nothing in the ISOP or in any Option granted pursuant thereto shall confer upon any Optionee any right to continue in the employ or service of the Company or an Affiliate thereof or restrict the right of the Company or an Affiliate thereof to terminate such employment or service at any time.

**19.** **GOVERNING LAW & JURISDICTION** 

The ISOP shall be governed by and construed and enforced in accordance with the laws of the State of Israel applicable to contracts made and to be performed therein, without giving effect to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to the ISOP.

**20.** **TAX CONSEQUENCES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 Any tax consequences arising from the grant or exercise of any Option, from the payment for Shares covered
thereby or from any other event or act (of the Company and/or its Affiliates, the Trustee or the Optionee), hereunder, shall be borne
solely by the Optionee. The Company and/or its Affiliates and/or the Trustee shall withhold taxes according to the requirements under
the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Optionee shall agree to indemnify
the Company and/or its Affiliates and/or the Trustee and hold them harmless against and from any and all liability for any such tax or
interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any
such tax from any payment made to the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 The Company and/or, when applicable, the Trustee shall not be required to release any Share certificate
to an Optionee until all required payments have been fully made.

**21.** **NON-EXCLUSIVITY OF THE ISOP** 

The adoption of the ISOP by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangements or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of Options otherwise than under the ISOP, and such arrangements may be either applicable generally or only in specific cases.

For the avoidance of doubt, prior grant of options to Optionees of the Company under their employment agreements, and not in the framework of any previous option plan, shall not be deemed an approved incentive arrangement for the purpose of this Section.

**ISRAELI SHARE OPTION PLAN**

**22.** **MULTIPLE AGREEMENTS** 

The terms of each Option may differ from other Options granted under the ISOP at the same time, or at any other time. The Board may also grant more than one Option to a given Optionee during the term of the ISOP, either in addition to, or in substitution for, one or more Options previously granted to that Optionee.

\* \* \*

## Exhibit 10.5

**Exhibit 10.5**

**Certain confidential information contained in this document, marked by brackets and asterisk ([\*\*\*]), has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K, because the Company customarily and actually treats such information as private or confidential and the omitted information is not material.**

Date: October 20, 2022

---

| | |
|:---|:---|
| **Client Name:** | **Silentium Ltd.** (hereinafter: **"the Borrower**" or **"the Company**") |
|  | **Company No. 512491143** |
| **Address:** | **5 Golda Meir St., Ness Ziona** |
| **Account No.:** | [\*\*\*] **at the Rehovot Science Park Branch (132)** (hereinafter: **"the Borrower's Account**") |

---

To: **<u>Mizrahi Tefahot Bank Ltd. (hereinafter: "the Bank")</u>**

Dear Sir/Madam,

**Re: <u>Loan Agreement</u>**

We hereby set forth in writing the terms agreed upon between us regarding the long-term loans that you will make available to the Company in accordance with the provisions of this Agreement. In addition to the provisions of this Agreement, the terms of the long-term loans (hereinafter collectively: **"the Credit**" or **"the Loans"**) shall be in accordance with and subject to the "Application for Opening an Account" and/or "Account Changes" as well as the "Account Management Booklet" and the "Business Borrower Credit Booklet," including all their appendices and amendments, which we have entered into with the Bank, and subject to any specific credit/loan agreement that we have entered into and/or will enter into with the Bank (hereinafter collectively: "**Credit Documents**") and all provisions set forth in the Credit Documents, with all their terms, shall apply and be binding with respect to the credit line and the credit.

1. <u>The Credit:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. Loan Amount: **US$4,000,000** 

The disbursement of the loans is conditional upon the fulfillment of all the conditions precedent set forth in Sections 1.2 and 4 below (hereinafter: **"Additional Conditions**"**)** and subject to the Bank's execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>The Loans:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1. The first loan in the amount of US$2,000,000 (hereinafter: "**the First Loan**") shall
be available for drawdown until November 15, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2. A second loan in the amount of US$1,000,000 (hereinafter: **"the Second Loan**") shall
be available for drawdown until March 31, 2023.

**Conditions for the Second Loan** (in addition to the fulfillment of the Additional Conditions, as defined above) - Vehicles from one of the following brands: [\*\*\*], [\*\*\*], equipped with the system developed by the Borrower (hereinafter: "**the Second Manufacturing Agreement**"), have been sold as of November 15, 2022.

The borrower shall provide the bank with satisfactory evidence regarding the fulfillment of this condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3. A third loan in the amount of US$1,000,000 (hereinafter: **"the Third Loan**") shall be
available for drawdown until June 30, 2023.

**Conditions for the Third Loan** (in addition to the fulfillment of the Additional Conditions, as defined above) - Vehicles—both [\*\*\*] and [\*\*\*]—equipped with the system developed by the Borrower have been sold.

The borrower shall provide the bank with satisfactory evidence regarding the fulfillment of this condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.4. <u>Repayment of the principal of each loan</u> - The principal of each long-term loan shall be repaid
in 30 consecutive and equal monthly installments beginning 180 days from the date the loan was disbursed (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.5. <u>Interest</u> - Each long-term loan will bear annual interest at a rate equal to the monthly Term SOFR
plus 7.5% and will be paid monthly, beginning at the end of the month following the date on which each loan is disbursed.

**"SOFR"** - the interest rate known at 8:00 a.m. Israel time, on each day (and on a non-business day in Israel: at 8:00 a.m. Israel time on the preceding business day), which is paid for a one-day loan backed by a U.S. Treasury bill, as published by the New York Fed, as defined from time to time by the ISDA (International Swaps and Derivatives Association) and available at the following link:

<u>https://www.isda.org/2020/05/11/benchmark-reform-and-transition-from-libor/#consultations</u>

**"TERM-SOFR**" – The interest rate for the interest period, as published two banking business days prior to the start of each interest period, based on the SOFR rate for periods of one month, three months, six months, and one year, as published by the CME Group at the following link:

<u>https://www.cmegroup.com/market-data/cme-group-benchmark-administration/term-sofr.html</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.6. The borrower shall notify the Bank in writing of its intention to draw down any loan no later than three
(3) business days prior to the date of execution of any loan. The Bank shall prepare for the borrower's signature the relevant
loan agreement, which includes all loan details and the other documents customary at the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Fees</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1. <u>Commitment Fee</u> – The borrower shall pay a commitment fee at a rate of 1% per annum for the
second and third loans. The fee shall be calculated as the product of the relevant loan amount and the above rate, from the date of this
agreement's execution by the Bank until the date of drawdown of the relevant loan. If a relevant loan is not disbursed for any reason
by the final date for disbursement of that loan (hereinafter: **"the final drawdown date")**, the fee will be calculated
up to the final drawdown date of that loan. The commitment fee shall be paid on the date the relevant loan is disbursed or on the latest
date for disbursement of said loan, if it has not been drawn down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2. Early repayment of the loans will be subject to early repayment fees (whether initiated by the borrower
or by the bank). It is clarified that the borrower is entitled to repay the loans in full or in part through early repayment, subject
to the payment of early repayment fees, in accordance with the bank's standard practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.3. The above fees do not replace the bank's standard fees.

2. <u>Pre-conditions and General Terms</u>:

All loan disbursements are subject to the fulfillment of <u>all the</u> following <u>conditions</u> (in addition to those specified in Section 1.2 above):

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The borrower has signed the Bank's standard credit documents and the relevant documents required
for the requested activity and/or credit, and has provided all minutes and attorney's certifications as customary at the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. To secure all of its debts and obligations to the Bank, the Borrower has created and provided the Bank
with all of the following collateral, has signed a promissory note and a pledge agreement in the form customary at the Bank for this purpose,
and has provided all documents, protocols, and attorney's certifications as customary at the Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. First-priority fixed liens on the following
assets: the Company's goodwill, fixed assets, intellectual property, the Company's rights to receive funds from its subsidiaries,
from the following companies: [\*\*\*], [\*\*\*], [\*\*\*], and from its customers, its holdings in the subsidiaries, all bills of lading and certificates,
securities, documents, and notes, and the borrower's account;

All as detailed in the promissory note in the form attached as **Appendix 2.2.1** to this Agreement.

It is clarified that prior to the signing of this Agreement, the Borrower applied to the National Authority for Technological Innovation (hereinafter: **"the Innovation Authority**") for approval regarding the encumbrance of the Borrower's intellectual property and know-how developed with the support of the Innovation Authority, in accordance with the provisions of the Law for the Encouragement of Research, Development, and Technological Innovation in Industry, 5744-1984, including the regulations thereunder, the provisions and rules of the Innovation Authority, and the terms of the Innovation Authority's programs.

It is agreed that if, within 90 days from the date of signing this agreement, the Innovation Authority's approval for the encumbrance in a form acceptable to the Bank is not received, the Bank shall be entitled to demand immediate repayment of the credit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. The borrower's subsidiaries have signed a letter of undertaking regarding a negative pledge and
a leverage restriction, in the form attached as **Appendix 2.2.2** to this agreement. It is agreed that this undertaking shall apply
to the subsidiaries existing as of the date of execution of this agreement and to any future subsidiary that the borrower may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. The Borrower, and any person who has provided and/or will provide an owner's loan to the Borrower,
shall sign (as a condition for providing the owner's loan) a letter of commitment regarding the subordination of owner's loans,
in the form attached as **Appendix 2.2.3** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. The Borrower undertakes that a total of US$500,000 shall be deposited at all times in an escrow account
held by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Borrower has signed the following documents: 1. A document extending the deadline for exercising the
options received by the Bank from the Borrower under the options agreement dated April 1, 2020 (until December 31, 2027) 2.
Agreement granting options to the Bank—all in terms to be agreed upon by the parties (hereinafter: **"the Options Agreement"**).
The Borrower has provided, for the purposes of this section, all certifications required by the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;2.5. No Event of Default, as defined in Section 4.4 below, has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;2.6. There shall be no legal impediment to the granting of the credit, and the granting of the credit shall
not conflict with the provisions of the law and/or the provisions of the Banking Supervisor (including Proper Banking Practice Directive
No. 311 "Minimum Capital Ratio" and Directive No. 313 "Limits on the Liabilities of a Borrower and a Group
of Borrowers" and/or any other directive that may replace them and/or supersede them), including the fact that it will result in
an excess of the liability limits of a borrower and/or a group of borrowers.

If this precondition is not met, and as a result it is not possible to extend the full amount of credit from the credit facility, the terms of the credit facility will be adjusted by mutual agreement between the Bank and us.

**3.** **Additional Obligations** 

The borrower undertakes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. All payments made to it by the subsidiaries, as well as payments from the borrower's customers,
shall be made exclusively to the borrower's account, and this account shall be specified on all invoices issued by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. 80% of the borrower's cash balance shall be deposited into the borrower's account, without
prejudice to the provisions of Section 3.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. The cash balances held in the borrower's account shall not fall below an amount equivalent to three
months of its operations and, in any event, shall not be less than the amount specified in Section 2.3 above.

It is clarified that nothing in this Agreement or its appendices shall prevent the Company from transferring funds to the Subsidiary for the purpose of financing its ongoing operations as required, provided that the funds transferred do not exceed the funds reasonably required to ensure the Subsidiary's ongoing operations.

4.  **<u>Reports</u>** 

The Borrower undertakes to provide the Bank with the following reports and statements:

&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>No later than June 30 of each calendar year</u> —the Borrower's annual financial statements
immediately upon their signing. If the Borrower publishes additional consolidated or other financial reports in Israel or abroad, whether
audited or unaudited, the Borrower shall provide the Bank with copies thereof as soon as possible after their publication

&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Borrower shall provide the Bank, at the end of each calendar month, with an expense forecast for the
three months following the end of that month.

&nbsp;&nbsp;&nbsp;&nbsp;4.3. In addition, the borrower shall provide the Bank, from time to time as requested by the Bank, with additional
information regarding the borrower's business data and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;4.4. The Borrower shall notify the Bank in writing within ten (10) business days after it becomes aware:
(a) that a material adverse change has occurred in the Borrower's condition, resulting from a change in its business, operations,
or financial condition; (b) any information that may indicate that the financial statements submitted pursuant to this Agreement
are inaccurate or incorrect, and that the information provided to the Bank by the Borrower is no longer accurate in any material respect;
(c) any material matter relating to the collateral provided and/or to be provided by the Borrower to secure its obligations to the
Bank.

The Borrower undertakes to report to the Bank in writing immediately upon becoming aware of the occurrence of any event of default.

**"Annual Financial Statements"** – the Borrower's annual financial statements (consolidated and standalone) prepared in accordance with applicable law and generally accepted accounting principles, including the balance sheet, income statement, cash flow statement, and statement of changes in equity, together with the notes thereto; The annual reports shall be audited by an external auditor in accordance with generally accepted accounting principles, reporting rules, and regulations established and/or to be established from time to time by the Institute of Certified Public Accountants and/or as required by law.

**"Event of Default"**—any of the events upon the occurrence of which the Bank is entitled to demand immediate repayment of the credit or any portion thereof. For the avoidance of doubt, the granting of a cure period, if granted in relation to an Event of Default, does not postpone the date or occurrence of the Event of Default, and the Event of Default shall be deemed to have occurred as of the occurrence of the circumstances constituting it prior to the expiration of the cure period and regardless of the passage of any other time**.**

**5.** **Representations** 

The Borrower hereby declares and undertakes to the Bank that:

&nbsp;&nbsp;&nbsp;&nbsp;5.1. All of the Borrower's obligations under this Agreement are valid, binding, and enforceable against
the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower's execution of this Agreement and performance thereof by the Borrower: (1) do
not and will not result in a breach by the Borrower of any agreement to which the Borrower is a party and/or confer upon any person or
entity a right and/or cause of action to demand immediate repayment of the Borrower's debts and obligations; and/or (2) do
not constitute and will not constitute a breach of and/or a violation of any provision of law; and/or (3) do not cause and will not
cause a breach of any license and/or permit held by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;5.3. As of the date of execution of this Agreement, no event of default or any event has occurred which, upon
the passage of a period of time or upon the giving of notice, or both, would constitute an event of default.

&nbsp;&nbsp;&nbsp;&nbsp;5.4. As of the date of execution of this Agreement: (a) there are no legal proceedings, claims, arbitrations,
disputes, or administrative proceedings pending against the Borrower, and to the best of the Borrower's knowledge, no such proceedings
are anticipated against it; (b) no petition for the appointment of a receiver and/or liquidator has been filed against it, and no
order has been issued against it in this regard, and to the best of its knowledge, no such petition or order is expected to be filed or
issued against it; and (c) it has not received a resolution regarding voluntary liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;5.5. The borrower's audited financial statements as of December 31, 2021 (hereinafter in this section:
 "**the Financial Statements** "), were prepared in accordance with generally accepted accounting principles and give a true,
fair, complete, and accurate view of the Borrower's financial position, assets, liabilities, and obligations for the period to which
they relate.

From the date to which the financial statements relate until the date of execution of this Agreement, the Borrower's business has been conducted in the ordinary course of business, and no event has occurred that would materially adversely affect the Borrower's business and/or financial condition and/or its assets and/or liabilities and/or obligations and/or the borrower's equity.

&nbsp;&nbsp;&nbsp;&nbsp;5.6. The Borrower has not taken out any credit and/or issued any guarantees of any kind or type signed by it
to any third party, except for commercial guarantees in the ordinary course of business and except as detailed  **<u>in Appendix 5.6</u>** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;5.7. The Borrower has timely filed with all relevant tax authorities all reports it is required to file by
law, has timely paid all taxes and other payments it is required to pay, or has made an adequate provision in its books in connection
therewith in accordance with generally accepted accounting principles. To the best of the Borrower's knowledge, the Borrower is
not expected to have any tax liability other than taxes for which a provision, if any, has been made in accordance with the law in the
Borrower's most recent financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;5.8. Except as set forth  **<u>in Schedule 5.8</u>** to this Agreement, the Borrower has not entered into
and is not a party to any agreement with any of its interested parties, and there is no agreement, commitment, understanding, oral or
written, on any matter between the Borrower and its interested parties and/or entities related to the Borrower and/or its interested parties;
no loans of any kind have been extended to them by the Borrower, and no benefit of any kind has been granted to them.

&nbsp;&nbsp;&nbsp;&nbsp;5.9. All information provided by the Borrower to the Bank is accurate and faithfully reflects the Borrower's
financial condition as of the date of this Agreement. Furthermore, the Borrower is not in possession of any information regarding the
Borrower that has not been brought to the Bank's attention, and which, had it been brought to the Bank's attention, would
have caused the Bank to refrain from extending credit to the Borrower and/or would have caused the Bank not to agree to rely on the collateral
to secure the repayment of the credit, or that would in any way limit the ability to realize the collateral, in whole or in part.

6. Any breach of the obligations set forth in this Agreement shall constitute grounds for calling in the
credit, in whole or in part, immediately, and shall preclude the granting of any additional credit. For the avoidance of doubt, the foregoing
is in addition to the grounds for immediate repayment of the credit as detailed in the other documents signed and/or to be signed by the
borrower.

7. It is hereby clarified that to ensure the full and accurate discharge of all the Borrower's debts
and obligations to the Bank (including the credit), the Bank shall be entitled to all collateral and guarantees of any kind and type that
have been and/or will be provided to the Bank by the Borrower and/or by any third party on its behalf.

8. This Agreement does not create any obligation on the part of the Bank toward any third party. The Borrower's
rights under this Agreement are not assignable or transferable in any manner.

9. All appendices to this document constitute an integral part thereof, and all provisions in the appendices
are intended to supplement and add to the provisions of this document.

10. This Agreement shall enter into force subject to its execution by the Borrower and its return to the Bank
no later than October 20, 2022, and subject to the Bank's execution.

11. In the event of any conflict between the provisions of this Agreement and the provisions of the credit
documents, the provisions of this Agreement shall prevail. In all other cases, the provisions of this Agreement and the provisions of
the credit documents shall be deemed to be complementary to one another.

12. The Borrower shall pay the Bank, upon signing this Agreement, a total of US$15,000 for the preparation
of the documents. This fee is in addition to the fees applicable to the account.

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| **Silentium Ltd.** | **Silentium Ltd.** |
| **By:** | **/s/ Yoel Naor** |

---

---

| | |
|:---|:---|
| **We confirm the foregoing** | **We confirm the foregoing** |
| **Bank Mizrahi-Tfahot Ltd.** | **Bank Mizrahi-Tfahot Ltd.** |
| **By:** | **/s/ Danny Maor** |
| **By:** | **/s/ Shalom Atias** |

---

## Exhibit 10.6

**Exhibit 10.6**

**Certain confidential information contained in this document, marked by brackets and asterisk ([\*\*\*]), has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K, because the Company customarily and actually treats such information as private or confidential and the omitted information is not material.**

Date: December 23, 2024

---

| | |
|:---|:---|
| **Client Name:** | **Silentium Ltd.** (hereinafter: **"the Borrower**" or **"the Company**") |
|  | **Company No. 512491143** |
| **Address:** | **5 Golda Meir St., Ness Ziona** |
| **Account No.:** | [\*\*\*] **at the Rehovot Science Park Branch (132)** (hereinafter: **"the Borrower's Account**") |

---

To: **<u>Mizrahi Tefahot Bank Ltd. (hereinafter: "the Bank")</u>**

Dear Sir/Madam,

**Re: <u>Loan Agreement</u>**

We hereby set forth in writing the terms agreed upon between us regarding the long-term loan that you will make available to the Company in accordance with the provisions of this Agreement. In addition to the provisions of this Agreement, the terms of the loan (hereinafter collectively: **"the Credit**" or **"the Loan"**) shall be in accordance with and subject to the "Application for Opening an Account" and/or "Account Changes" as well as the "Account Management Booklet" and the "Business Borrower Credit Booklet," including all their appendices and amendments, which we have entered into with the Bank, and subject to any specific credit/loan agreement that we have entered into and/or will enter into with the Bank (hereinafter collectively: "**Credit Documents**") and all provisions set forth in the Credit Documents, with all their terms, shall apply and be binding with respect to the Loan.

1. <u>The Loan:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. Loan Amount: **US$1,000,000**.

The disbursement of the loan is conditional upon the fulfillment of all the conditions precedent set forth in Section 3 below (hereinafter: and subject to the Bank's signature on this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. The loan shall be available for drawdown until December 31, 2024, and shall be made available for
a period of 36 months.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. Principal: The principal of the loan shall be repaid in 24 consecutive monthly installments beginning
12 months after the date the loan is made available, such that the final repayment date shall be December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;1.4. The loan will bear annual interest at a rate of monthly Term SOFR +7.5% and will be repaid monthly, beginning
at the end of the month following the date each loan is disbursed.

The terms "**SOFR**" and **"TERM SOFR**" shall have the meanings assigned to them in the credit documents.

&nbsp;&nbsp;&nbsp;&nbsp;1.5. The borrower shall notify the bank in writing of its intention to draw down the loan no later than three
(3) business days prior to the loan drawdown date. The bank shall prepare for the borrower's signature the relevant loan agreement,
which includes all loan details, and the other documents customary at the bank.

&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>Fees</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6.1. Transaction Fee – The Borrower shall pay the Bank a transaction fee in the amount of 10,000 U.S.
dollars. The fee will be charged to the account on January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6.2. Early repayment of the loans will be subject to early repayment fees (whether initiated by the borrower
or by the bank). It is clarified that the borrower is entitled to repay the loans in full or in part through early repayment, subject
to the payment of early repayment fees, in accordance with the bank's standard practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6.3. The above fees do not replace the bank's standard fees.

2. <u>Reduction of principal payments on existing loans</u> 

With respect to each of the existing loans in the account, namely—loan number 230475 and loan number 303775 (hereinafter: **"the existing loans**"), it is agreed that the amortization schedule for the aforementioned loans shall be amended such that the principal payments for the months of January 2025 through June 2025 (only) will be reduced by 50% and that the final repayment date for each of the loans will be postponed by 6 months, as detailed in an updated amortization schedule to be provided by the Bank to the Borrower.

It is agreed that the foregoing constitutes an amendment to the loan agreement dated October 20, 2022 (hereinafter: **"the Loan Agreement**").

3. <u>Conditions Precedent and General Terms</u>:

The granting of the loan is subject to the fulfillment of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;3.1. The borrower has signed the bank's standard credit documents and the relevant documents required
for the requested activity and/or credit, and has provided all the minutes and attorney's approvals as customary at the bank.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. To secure all of its debts and obligations to the Bank, the Borrower has created and provided the Bank
with all of the following collateral, has signed for this purpose a promissory note and a pledge in the form customary at the Bank, and
has provided all documents, protocols, and attorney's approvals as customary at the Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.1. First-ranking fixed liens on the following
assets: the Company's goodwill, fixed assets, intellectual property, and the Company's rights to receive funds from its subsidiaries,
from the following companies: [\*\*\*], [\*\*\*], and from its customers, its holdings in the subsidiaries, all bills of lading and certificates,
securities, documents, and notes, and the borrower's account, registered **as Lien No. 9 in the Companies Registrar's records** pursuant to a debenture dated October 20, 2022;

Upon signing this Agreement, the Borrower shall sign an amendment to the debenture in the form attached as **Appendix 2.2.1** and shall provide the Bank with a list of customers to be attached as an appendix to this Agreement (which shall replace Appendix C to the debenture as stated in the amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.2. SILENTIUM (ASIA) LIMITED and SILENTIUM Acoustic Technology (Shanghai) Co., Ltd. (hereinafter collectively: **"the Subsidiaries**") signed on September 21, 2022, a letter of undertaking regarding a negative pledge and leverage
restriction .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.3. The deposit amount, as defined below, is held in the borrower's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2.4. The Borrower has signed a letter of commitment to the Bank (Upside) in the form attached as an appendix
 ‎3.2.4 .

&nbsp;&nbsp;&nbsp;&nbsp;3.3. No breach has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. There shall be no legal impediment to the granting of the credit, and the granting of the credit shall
not conflict with the provisions of the law and/or the provisions of the Banking Supervisor (including Proper Banking Practice Directive
No. 311 "Minimum Capital Ratio" and Directive No. 313 "Limits on the Liabilities of a Borrower and a Group
of Borrowers" and/or any other directive that may replace them and/or supersede them), including the fact that it will result in
an excess of the liability limits of a borrower and/or a group of borrowers.

If this precondition is not met, and as a result it is not possible to extend the full amount of credit from the credit facility, the terms of the credit facility will be adjusted by mutual agreement between the Bank and us.

**4.** **Additional Obligations** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. A deposit equal to the (cumulative) amount reflecting three months of the customer's activity (*"cash burn rate"*) and, in any event, not less than US$500,000 (**"the Deposit**") shall be maintained in the borrower's
account at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The Borrower, in its capacity as the entity exercising full control over each of the subsidiaries, undertakes
that each of the aforementioned companies shall transfer to the Account the funds received from the subsidiary's operations, net
of the funds required by the subsidiary for its ordinary operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. For the avoidance of doubt, all other obligations of the Borrower under the Loan Agreement shall continue
to apply and bind the Borrower.

5.  **<u>Reports</u>** 

The Borrower undertakes to provide the Bank with the following reports and statements:

&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>No later than June 30 of each calendar year</u> —the Borrower's annual financial statements
immediately upon their signing. If the Borrower publishes additional consolidated or other financial reports in Israel or abroad, whether
audited or unaudited, the Borrower shall provide the Bank with copies thereof as soon as possible after their publication

&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Borrower shall provide the Bank, at the end of each calendar month, with an expense forecast for the
three months following the end of that month.

&nbsp;&nbsp;&nbsp;&nbsp;5.3. In addition, the Borrower shall provide the Bank from time to time, upon the Bank's request, with
additional information regarding the Borrower's business data and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;5.4. The borrower shall notify the bank in writing within ten (10) business days after becoming aware:
(a) that a material adverse change has occurred in the borrower's condition, resulting from a change in its business, operations,
or financial condition; (b) any information that may indicate that the financial statements submitted pursuant to this agreement
are inaccurate or incorrect, and that the information provided to the Bank by the borrower is no longer accurate in any material respect;
(c) any material matter relating to the collateral provided and/or to be provided by the borrower to secure its obligations to the
Bank.

The Borrower undertakes to notify the Bank in writing immediately upon becoming aware of any breach.

**"Annual Financial Statements"** – the Borrower's annual financial statements (consolidated and standalone) prepared in accordance with applicable law and generally accepted accounting principles, including the balance sheet, income statement, cash flow statement, and statement of changes in equity, together with the notes thereto; The annual reports shall be audited by an external auditor in accordance with generally accepted accounting principles, reporting rules, and regulations established and/or to be established from time to time by the Institute of Certified Public Accountants and/or as required by law.

**"Event of Default"**—any of the events upon the occurrence of which the Bank is entitled to demand immediate repayment of the credit or any portion thereof. For the avoidance of doubt, the granting of a cure period, if granted in relation to an Event of Default, does not postpone the date or occurrence of the Event of Default, and the Event of Default shall be deemed to have occurred as of the occurrence of the circumstances constituting it prior to the expiration of the cure period and regardless of the passage of any other time**.**

**6.** **Representations** 

The Borrower hereby declares and undertakes to the Bank that:

&nbsp;&nbsp;&nbsp;&nbsp;6.1. All of the Borrower's obligations under this Agreement are valid, binding, and enforceable against
the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Borrower's execution of this Agreement and performance thereof by the Borrower: (1) do
not and will not result in a breach by the Borrower of any agreement to which the Borrower is a party and/or confer upon any person or
entity a right and/or cause of action to demand immediate repayment of the Borrower's debts and obligations; and/or (2) do
not constitute and will not constitute a breach of and/or a violation of any provision of law; and/or (3) do not cause and will not
cause a breach of any license and/or permit held by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;6.3. As of the date of execution of this Agreement, no event of default or any event has occurred which, upon
the passage of a period of time or upon the giving of notice, or both, would constitute an event of default.

&nbsp;&nbsp;&nbsp;&nbsp;6.4. As of the date of execution of this Agreement: (a) there are no legal proceedings, claims, arbitrations,
disputes, or administrative proceedings pending against the Borrower, and to the best of the Borrower's knowledge, no such proceedings
are anticipated against it; (b) no petition for the appointment of a receiver and/or liquidator has been filed against it, and no
order has been issued against it in this regard, and to the best of its knowledge, no such petition or order is expected to be filed or
issued against it; and (c) it has not adopted a resolution for voluntary liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;6.5. The borrower's audited financial statements as of December 31, 2023 (hereinafter in this subsection:
 "**the Financial Statements** "), have been prepared in accordance with generally accepted accounting principles and give
a true, fair, complete, and accurate view of the Borrower's financial position, assets, liabilities, and obligations for the period
to which they relate.

From the date to which the financial statements refer until the date of execution of this Agreement, the Borrower's business has been conducted in the ordinary course of business, and no event has occurred that could materially adversely affect the Borrower's business and/or financial condition and/or its assets and/or liabilities and/or obligations and/or the Borrower's equity.

&nbsp;&nbsp;&nbsp;&nbsp;6.6. The Borrower has not taken out any credit and/or issued any guarantees of any kind or type signed by it
to any third party, except for commercial guarantees in the ordinary course of business and except as detailed in  **<u>Schedule 6.6</u>** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;6.7. The Borrower has timely filed with all relevant tax authorities all reports it is required to file under
any law, has timely paid all taxes and other payments it is required to pay, or has made an adequate provision in its books in connection
therewith in accordance with generally accepted accounting principles. To the best of the Borrower's knowledge, the Borrower does
not anticipate any tax liability, except for taxes for which a provision has been made, if any, in accordance with the law in the Borrower's
most recent financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;6.8. Except as set forth in  **<u>Schedule 6.8</u>** to this Agreement, the Borrower has not entered into
and is not a party to any agreement with any of its interested parties, and there is no agreement, commitment, understanding, oral or
written, on any matter between the Borrower and its interested parties and/or entities related to the Borrower and/or its interested parties;
no loans of any kind have been extended to them by the Borrower, and no benefit of any kind has been granted to them .

&nbsp;&nbsp;&nbsp;&nbsp;6.9. All information provided by the Borrower to the Bank is accurate and faithfully reflects the Borrower's
financial condition as of the date of this Agreement. Furthermore, the Borrower is not in possession of any information regarding the
Borrower that has not been brought to the Bank's attention, and which, had it been brought to the Bank's attention, would
have caused the Bank to refrain from extending credit to the Borrower and/or would have caused the Bank not to agree to rely on the collateral
to secure the repayment of the credit, or that would in any way limit the ability to realize the collateral, in whole or in part.

7. Any breach of the obligations set forth in this Agreement shall constitute grounds for calling in the
credit, in whole or in part, immediately, and shall preclude the granting of any additional credit. For the avoidance of doubt, the foregoing
is in addition to the grounds for immediate repayment of the credit as detailed in the other documents signed and/or to be signed by the
borrower.

8. It is hereby clarified that, to ensure the full and accurate discharge of all the Borrower's debts
and obligations to the Bank (including the credit), the Bank shall be entitled to all collateral and guarantees of any kind and type that
have been and/or will be provided to the Bank by the Borrower and/or by any third party on its behalf.

9. This Agreement does not create any obligation on the part of the Bank toward any third party. The Borrower's
rights under this Agreement are not assignable or transferable in any manner.

10. All appendices to this document constitute an integral part thereof, and all provisions in the appendices
are intended to supplement and add to the provisions of this document.

11. This Agreement shall enter into force subject to its execution by the Borrower and its return to the Bank
no later than December 31, 2024, and subject to the Bank's execution.

12. The provisions of this Agreement supplement and/or add to any other document signed by the Borrower with
respect to the Bank, including the Loan Agreement. In the event of any conflict between the provisions of this Agreement and the provisions
of the credit documents, the provisions of this Agreement shall prevail. In all other cases, the provisions of this Agreement and the
provisions of the credit documents shall be deemed to be complementary to one another.

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| Silentium Ltd. | Silentium Ltd. |
| By: | /s/ Yoel Naor |
| By: | /s/ Nirdit Grinberg |

---

I, the undersigned, Adv. Noma Floom, acting as counsel for Silentium Ltd., Company No. 512491143 (hereinafter: **"the Company**"), hereby certify to Mizrahi Tefahot Bank Ltd. (hereinafter: **"the Bank**") that the aforementioned document was signed on behalf of the Company by Mr. Yoel Naor, ID No.: [\*\*\*], and Ms. Nirdit Grinberg, ID No.: [\*\*\*], who are authorized by their signatures to bind the Company to the Bank, in accordance with the decisions of the Company's authorized bodies duly adopted.

---

| | |
|:---|:---|
| Date: December 23, 2024 | Adv. Noma Floom |
|  | /s/ Adv. Noma Floom |
| ***We confirm the above*** |  |
| **Mizrahi Tefahot Bank Ltd.** |  |

---

Date: December 23, 2024

To: Mizrahi Tefahot Bank Ltd.

Dear Sirs/Madams,

**<u>Irrevocable Undertaking</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. We, the undersigned, Silentium Ltd. (the "**Company**") hereby irrevocably undertake to
pay you one-time payment in the manner set forth herein, subject to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;2. In connection with a liquidity event (EXIT), the first payment will be made after signing this letter.
We hereby undertake to pay you, from the proceeds of the first closing of the EXIT event, the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event that the EXIT transaction is completed on or before **December 31, 2026** –
an amount of **USD 150,000.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In the event that the EXIT transaction is completed after **December 31, 2026** – an amount
of **USD 225,000.** 

&nbsp;&nbsp;&nbsp;&nbsp;3. EXIT Transaction is any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the assignment, sale or other disposition of fifty percent (50%) or more of the Company's shares, property and/or assets (including, without limitation, by way of share swap or the grant of an exclusive license to all or substantially all of the technology of the Company or the grant of a license to a core technology of the Company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the merger, consolidation of the Company with or into another person (following which more than fifty percent (50%) of the Company's shares are held by persons who, prior to the said transaction, held, in the aggregate, less than fifty percent (50%) of the Company's shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the acquisition or sale of a controlling interest in the shareholding of the Company except in connection with an equity financing of the Company in which shareholders of the Company do not receive consideration (except for equity awards granted to employees or service providers of the Company and shares and other securities issued to participants in such equity financing). A controlling interest shall mean 50% (fifty percent) or more of the issued and outstanding share capital of the Company, and / or the right to appoint a majority of the members of the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) an initial underwritten public offering of the Company's shares pursuant to an effective registration statement on any stock exchange, including a public offering without an underwriter in a procedure known as "direct listing" ("IPO"), or any other legal act resulting in the public trading of the Company's shares (including, without limitation, the public trading of the shares of any successor of the Company in the framework of a SPAC merger, or any reverse merger with a publicly-traded entity) in any trade market (other than a registration statement effected solely to implement an employee benefit plan or any other form or type of registration in which the Warrant Shares cannot be included pursuant to the rules of practice of the applicable securities and exchange commission).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) any event in which the liquidation preferences of the Company shall be triggered, due to a deemed liquidation, M&A event, etc. (as such terms may be defined in the Company's Articles of Association, as may be in effect from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) the distribution of dividends, whether in cash or in securities (other than bonus shares of the Company), by the Company.

4. We undertake to notify you immediately in the event of an EXIT, and you shall be entitled to receive the Consideration Amount, as stated in Section 2 above, subject to the initial closure of the EXIT event.

5. For the avoidance of doubt, payment of the Consideration Amount is (i) one-time and (ii) in addition to the full repayment of all the credit extended by you to the Company (including interest, linkage, costs, etc., if any). For the avoidance of doubt, you will be entitled to the Consideration Amount even if, prior to the EXIT event (whether before or after), you have received all repayment amounts.

6. The Bank's obligation under this letter shall be unconditional and irrevocable, and shall prevail over any other obligation of the Bank in connection with any transaction whereby you owe or will owe any amount to the Bank or to any of its entities.

7. If credit has been extended to us, you shall be entitled, for all the periods granted to them, to offset us in respect of any amount due, against any Credit Account, in your books or in the books of any of the Bank's entities, up to the amount of the Consideration. The Bank shall not be obligated to require such offset or demand any such action from you and/or from your employees, for the purpose of collecting the Consideration, provided that it has been determined, according to the Bank's sole discretion and/or according to its judgment, that you have not executed such offset for any reason.

8. We confirm that this undertaking shall apply to each agreement signed or to be signed between you and us, including the credit agreement signed on October 20, 2022, and the loan agreement signed on April 1, 2020.

---

| | |
|:---|:---|
| Respectfully, | Respectfully, |
| Silentium Ltd. | Silentium Ltd. |
| By: | /s/ Yoel Naor |
| By: | /s/ Nirdit Grinberg |

---

I, the undersigned, Adv. Noma Floom, acting as counsel for Silentium Ltd., Company No. 512491143 (hereinafter: **"the Company**"), hereby certify to Mizrahi Tefahot Bank Ltd. (hereinafter: **"the Bank**") that the aforementioned document was signed on behalf of the Company by Mr. Yoel Naor, ID No.: [\*\*\*], and Ms. Nirdit Grinberg, ID No.: [\*\*\*], who are authorized by their signatures to bind the Company to the Bank, in accordance with the decisions of the Company's authorized bodies duly adopted.

/s/ Adv. Noma Floom

Date: December 23, 2024

**Bank Mizrahi Tefahot Ltd.<br> Legal Amendment to Charge Deed**

&nbsp;&nbsp;&nbsp;&nbsp;· **Company Number:** 512491143

&nbsp;&nbsp;&nbsp;&nbsp;· **Charge No.:** 9

&nbsp;&nbsp;&nbsp;&nbsp;· **Company / Borrower Name:** Silentium Ltd.

**Amendment Code:** 40<br> Replacement of Appendices A, B2 and C with the attached appendices.

**List of Codes**

&nbsp;&nbsp;&nbsp;&nbsp;· 01 – Transfer of rights to another

&nbsp;&nbsp;&nbsp;&nbsp;· 02 – Change in loan amount

&nbsp;&nbsp;&nbsp;&nbsp;· 03 – Reduction of secured amount

&nbsp;&nbsp;&nbsp;&nbsp;· 04 – Change in special conditions

&nbsp;&nbsp;&nbsp;&nbsp;· 05 – Change in charge ranking

&nbsp;&nbsp;&nbsp;&nbsp;· 11 – Addition of collateral

&nbsp;&nbsp;&nbsp;&nbsp;· 12 – Changes in collateral

&nbsp;&nbsp;&nbsp;&nbsp;· 13 – Release of security

&nbsp;&nbsp;&nbsp;&nbsp;· 14 – Addition of identification details
to collateral

&nbsp;&nbsp;&nbsp;&nbsp;· 21 – Partial discharge

&nbsp;&nbsp;&nbsp;&nbsp;· 40 – Other changes

**Date:** December 23, 2024

---

| | |
|:---|:---|
| Silentium Ltd. | Silentium Ltd. |
| By: | /s/ Yoel Naor |
| By: | /s/ Nirdit Grinberg |
| Mizrahi Tefahot Bank Ltd. | Mizrahi Tefahot Bank Ltd. |

---

**<u>Amendment to Debenture dated October 20, 2022</u>**

Whereas, on **October 20, 2022**, Silentium Ltd. (the "**Company**") executed a debenture in favor of Bank Mizrahi Tefahot Ltd. (the "**Bank**"), under which the Company created a first-ranking floating charge over its plant and all present and future assets and rights, and first-ranking fixed charges over its unissued/uncalled/unpaid share capital, goodwill, fixed assets (as detailed in Appendix A), intellectual property (Appendix B2), rights to receive funds (Appendix C), bills of lading, documents, securities, instruments, and the Company's bank account, and the debenture was registered with the Companies Registrar on October 25, 2022, under certificate no. 9; and

Whereas, the Company and the Bank have agreed to amend the debenture as set out herein, while all other provisions remain unchanged;

It is agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Appendix A (list of fixed assets) is replaced with the attached Appendix A;

Appendix B-2 (IP list) is replaced with the attached Appendix B-2.

&nbsp;&nbsp;&nbsp;&nbsp;2. Section 5e of the debenture is replaced with the following:

"A first-ranking fixed charge over all of the Company's rights to receive funds from subsidiaries and other listed entities, as provided in a list delivered to the Bank and attached to the loan agreement signed together with this amendment."

&nbsp;&nbsp;&nbsp;&nbsp;3. All other provisions of the debenture remain unchanged.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Registrar is requested to record the amendment accordingly.

Date: December 23, 2024

---

| | |
|:---|:---|
| Silentium Ltd. | Silentium Ltd. |
| By: | /s/ Yoel Naor |
| By: | /s/ Nirdit Grinberg |
| Mizrahi Tefahot Bank Ltd. | Mizrahi Tefahot Bank Ltd. |

---

I, the undersigned, Adv. Noma Floom, acting as counsel for Silentium Ltd., Company No. 512491143 (hereinafter: **"the Company**"), hereby certify to Mizrahi Tefahot Bank Ltd. (hereinafter: **"the Bank**") that the aforementioned document was signed on behalf of the Company by Mr. Yoel Naor, ID No.: [\*\*\*], and Ms. Nirdit Grinberg, ID No.: [\*\*\*], who are authorized by their signatures to bind the Company to the Bank, in accordance with the decisions of the Company's authorized bodies duly adopted.

/s/ Adv. Noma Floom

Date: December 23, 2024

**<u>Appendix A – Equipment List</u>**

[\*\*\*]

**<u>Appendix B-2 – Intellectual Property List</u>**

[\*\*\*]

**<u>Appendix C – Clients List</u>**

[\*\*\*]

## Exhibit 10.7

**Exhibit 10.7**

Effective Date: Date of First Drawdown of Credit Line by the Company

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE **"SECURITIES ACT")** OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED IF AT THAT TIME ANY SECURITIES OF THE CORPORATION HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR PROSPECTUS FILING THEREUNDER OR EXEMPTIONS FROM SUCH REGISTRATION AND PROSPECTUS REQUIREMENTS. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF HOLDER'S COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

To:

Mizrahi Tefahot Bank Ltd.

**WARRANT**

To Purchase Preferred D Shares

OF

**SILENTIUM LTD.**

VOID AFTER 5:00 P.M. (prevailing Israel time)

on the last day of the Warrant Period (defined below)

Silentium Ltd., a company registered in Israel (the **"Company"),** hereby grants to Mizrahi Tefahot Bank Ltd. (the **"Holder"),** the right to purchase from the Company the number of fully paid and non-assessable Preferred D Shares of the Company (the **"Warrant Shares")** specified below, subject to the terms and conditions set forth below.

The Warrant Shares shall have the same rights, protections, preferences and privileges attached to the Preferred D Shares of the Company, as such rights, protections, preferences and privileges shall be set forth in the Articles of Association of the Company (in effect as of the Exercise Date) and in any relevant Shareholders Rights Agreement, Share Purchase Agreement, Investors' Rights Agreement, or any similar agreement, concerning the rights of the Preferred D Shareholders who participated in the SPA (as defined below) (including, without limitation, registration rights, preemptive rights, and anti-dilution rights).

Notwithstanding the preceding paragraphs, if the Company issues shares other than Preferred D Shares in the framework of the first Qualified Financing (as defined below) to occur following the Effective Date (as defined below), then the Holder shall be entitled to have the Warrant Shares be of the same class of shares as the most senior class of shares issued in the Qualified Financing, and shall have the same rights, preferences and privileges as will be attached to such class of shares (the **"Qualified Financing Shares").** In the event that as part of the Qualified Financing, the Company issues options or warrants to an investor together with the issuance of shares, the Holder shall receive a pro rata right to receive and exercise such options or warrants at the most favorable exercise price granted to any investor in such Qualified Financing.

---

| |
|:---|
| **SILENTIUM LTD** |
| **512491143** |

---

Silentium – Warrant - 250220

Confidential

1.  **<u>DEFINITIONS</u>** 

For the purpose of this Warrant:

1.1 **"Alternative Payment"** shall mean an amount that the Holder shall be entitled to receive
from the Company in consideration of the
waiver by the Holder of all or any portion of its outstanding rights hereunder in accordance with the provisions of Section 15 below.

1.2 **"Articles of Association"** the Amended and Restated Articles of Association of the
 Company, as currently in effect and binding on the Company and its shareholders and as may be amended.

1.3 **"Benefit''** shall mean the right to any compensation, benefit, indemnification, reimbursement
or adjustment in any form, including, without limitation, by payment of cash or distribution of any assets
(including, without limitation, of shares of any kind) as a result of any issuance by the Company of Company's securities.

1.4 **"Business Day"** shall mean any day which is a business day in Bank Mizrahi in Israel (not
including Fridays Erev Hag, and Chol HaMoed).

1.5 **"Dollar"** and "**$** "
 shall mean the United States Dollar.

1.6 **"Exercise Price"** shall mean the exercise price payable for each Warrant Share
 purchasable hereunder, which shall be the Qualified Financing Price
(subject to any retroactive amendments and/or adjustments) (subject to modification pursuant to Section <u>9</u>).

Notwithstanding the above, in the event that a Qualified Financing does not close within six (6) months of Effective Date, then the Holder shall be entitled to an exercise price payable for each Warrant Share purchasable hereunder, equal to the lowest price per share at which Preferred D Shares of the Company have been and/or will be issued in the framework of the Last Financing, such price being US$0.08888627558 per share, or any lower price per share as may be applicable based on retroactive amendments and/or adjustments to the Last Financing documents.

---

| | |
|:---|:---|
| I.7 | **"Effective Date"** shall mean the date first set forth above. |

---

1.8 **"Exit Transaction"** shall mean an IPO (as
defined below) ·or a Triggering Event (as defined below).

1.9 **"Financial Statements''** shall mean the Company's audited balance sheets and statements
 of income as of December 31<sup>st</sup>, 2018, certified by the Company's independent
 certified public accountants and the unaudited balance sheets and statements of income as
 of December 31<sup>st</sup>,
 2019.

1.10 **"IPO"** shall mean the closing of the first underwritten public offering of the Company's
shares, pursuant to an effective registration statement under the Securities Act of 1933, as amended, (the **"Securities Act")** or pursuant to the corresponding securities laws of any other jurisdiction, or any other legal act resulting in the public trading of
the Company's shares in any trade market (other than a registration
statement effected solely to implement an employee benefit plan or any other form or type of registration in which the Warrant Shares
cannot be included pursuant to the rules of practice of the applicable securities and exchange commission).

1.11 **" Last Financing"** shall mean the last equity investment
 entered into or consummated prior to the Effective Date, i.e. the Preferred D Share Purchase
 Agreement entered into by and between the Company and Initial Success Investment Limited,
 dated September 6<sup>th</sup> 2017 (the "**SPA**") including the Joinder
 to the SPA signed November l, 2017.

Silentium Ltd. - Warrant Page 2 of 17

Confidential

1.12 **"Qualified Financing"** shall mean the first equity financing by the Company after
 the Effective Date, of at least Five Million US Dollars ($5,000,000.00) (gross), in one or a series of related transactions,
 invested by third parties who are not currently shareholders of the Company (or affiliates thereof). In the event that the Company
 consummates an equity financing that does not reach such threshold, or which is done by Company's current shareholders, then
 Holder shall be entitled (but not obligated), at its sole discretion, to determine that such round is a Qualified Financing for the
 purpose of this Warrant.

1.13 **"Qualified Financing Price"** shall mean the lowest purchase price of any share issued
or issuable pursuant to the Qualified Financing (including, for avoidance of doubt, any discounts provided to any lenders and/or investors
for providing convertible loan, advance investment or any other form of financing).

1.14 **"SRA"** shall mean that certain Investors'
Rights Agreement, by and among the Company and certain Investors, dated September 6, 2017 and as may
be amended from time to time.

---

| | |
|:---|:---|
| l.l5 | **"Triggering Event"** shall mean (a) the assignment, sale or other disposition of fifty percent (50%) or more of the Company's shares, property and/or assets, (including, without limitation, by way of share swap or the grant of an exclusive license to a core technology of the Company); (b) the merger, consolidation of the Company with or into another person (following which more than fifty percent (50%) of the Company's shares are held by persons who, prior to the said transaction, held, in the aggregate, less than fifty percent (50%) of the Company's shares), or (c) the acquisition or sale of a controlling interest in the shareholding of the Company. A controlling interest shall mean 50% (fifty percent) or more of the issued and outstanding share capital of the Company, and/ or the right to appoint a majority of the members of the board of directors of the Company. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 **"Warrant Amount"** shall mean $400,000 (Four
Hundred Thousand US Dollars).

---

| | |
|:---|:---|
| l.17 | **"Warrant Period"** shall mean the period for exercise of this Warrant, as determined pursuant to Section 3. |

---

**2.**  **<u>NUMBER OF SHARES AVAILABLE FOR PURCHASE</u>** 

This Warrant may be exercised to purchase that number of Warrant Shares determined by dividing the outstanding Warrant Amount by the applicable Exercise Price.

**3.**  **<u>WARRANT PERIOD</u>** 

The Warrant may be exercised, in whole or in part, and on one or more occasions, during the period commencing from the Effective Date and ending six (6) years following the Effective Date; provided, however, that if the underwriter in an IPO, or the buying party(ies) in an M&A Transaction require that all outstanding warrants of the Company, including this Warrant, be exercised and all advanced investments, convertible loans or debentures be converted or repaid, prior to or as part of the IPO or the M&A Transaction, as the case may be, then the period for exercise of the Warrant shall terminate upon the consummation of the £PO or the M&A Transaction, subject to compliance by the Company with the provisions of Section 4.1 hereof.

For the purpose hereof, an "<u>M&A Transaction</u>" shall mean: (a) the assignment, sale or other disposition of all or substantially all of the Company's property and/or assets (including, without limitation, by way of grant of an exclusive license to a core technology of the Company); or (b) the assignment, sale or other disposition of all of the Company's shares (including, without limitation, by way of a share swap); or (c) the merger or consolidation of the Company with or into another person or entity, following which all of the Company's shares are held by persons who, prior to the said transaction, held, in the aggregate, less than fifty percent (50%) of the Company's shares.

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**4.**  **<u>NOTICE OF EVENTS</u>** 

4.1 In the event that the Company (i) files a registration statement {including confidential
 registration) for an IPO, or (ii) signs an agreement for a Triggering Event, (iii) intends to distribute any dividends,
 (iv) intends to enter into any Qualified Financing, or (v) intends to enter into any other financing or investment
 agreement, the Company shall, within 30 (thirty) days thereof and at least 21 (twenty one) days prior to such event, provide
 detailed written notice of such filing or offer to the Holder (the **"Company Notice")** unless the giving of such
 notice is barred by applicable law or by a non-disclosure agreement governing such offer. If the giving of such notice is barred,
 and during the period in which the giving of such notice is barred the Warrant would otherwise have expired, then the Warrant will
 remain in full force and effect for a further period of 21 (twenty one) days after the date when such notice may be given.

4.2 Without derogating from the provisions of Section 4.1 and in addition thereto, if at any time the
Company shall offer for subscription pro rata to the holders of its shares any additional shares of any class, or there shall be any change
in the share capital of the Company, including any issuance or undertaking to
issue any securities of the Company or any action reserving securities of the Company for issuance to any person (not including
options issued to employees and consultants), or any capital reorganization or reclassification of the capital shares of the
Company, or consolidation or merger of the Company with, or sale of all or substantially all of its assets to another person or
there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Company, or other event described in
Section 9 of this Warrant, then, in any one or more of said cases, the Company shall give the Holder a written notice of the
date on which such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up shall take
place. Such notice shall also specify the date as of which the holders of record of shares shall be entitled to exchange their
shares for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation or winding-up, as the case may be. Unless prohibited under the law or by a non-disclosure agreement
governing such transaction, such written notice shall be given by not later than 30 (thirty) days prior to the action in question
and by not later than 30 (thirty) days prior to the record date in respect thereto. If the giving of such notice is prohibited under
the law or by a non-disclosure agreement governing such transaction, and during the period in which the giving of such notice is
prohibited the Warrant would otherwise have expired, the Warrant will remain in full force and effect for a further period of 30
(thirty) days after the date when such notice may be given.

4.3 In the event that the Articles of Association or any agreement to which the Company is a party provides
any shareholders of the Company any preemptive, co-sale or tag-along rights upon the sale of shares by any other shareholder,
and the Holder, if it held Warrant Shares would be entitled to participate in such sale, the provisions of Section 4.1 shall apply, *mutates mutandis,* and the Company will give all necessary notices to the Holder to enable it to exercise the Warrant in a timely
manner so as to be able to participate in the sale.

**5.**  **<u>EXERCISE OF WARRANT</u>** 

5.1  **<u>Exercise</u>** **.** Subject to the provisions hereof, this Warrant may be exercised in whole or in part,
 on one or more occasions at any time during the Warrant Period. This Warrant shall be exercised
 by presentation and surrender hereof to the Company at the principal office of the Company
 or at such other office or agency as the Company may designate in writing, accompanied by
 a written notice of exercise in the form attached hereto as  **<u>Exhibit</u>**  **<u>5.1</u>** and for the purpose of determining the relevant Exercise Price, the Warrant shall
 be deemed to have been exercised at the date of submitting the written notice of exercise
 to the Company.

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5.2  **<u>Exercise for Cash</u>** **.** If the Holder, at its sole discretion, elects to make a cash
 payment for the Warrant Shares it shall make such payment by not later than 10 (ten) days
 from giving the Exercise Notice to the Company in an amount equal to the Exercise Price multiplied
 by the number of Warrant Shares specified in such notice. The Exercise Price for the number
 of Warrant Shares specified in the notice shall be payable in immediately available funds,
 in U.S. dollars. If at such time, the Company has an outstanding loan from, or line of credit
 with, the Holder, but only if the portion of the Warrant being exercised is then held by
 the Holder and has not been assigned or transferred to any other party, such payment may,
 at the Holder's sole discretion, be made by way of conversion of all or any part of
 the Company's debt to the Holder, including any accrued interest (whether then payable
 or not) and in such case, such debt owed by the Company to the Holder being converted, whether
 due or not, shall be declared due and converted.

**5.3**  **<u>E xercise on Net Issuance</u>** 

In lieu of payment to the Company as set forth in Section 5.2 above, and without the payment of any Exercise Price, the Holder may convert this Warrant in whole or in part, into the number of Warrant Shares calculated pursuant to the following formula, by surrendering this Warrant to the Company at the principal office of the Company, accompanied by a written notice of exercise, specifying the number of Warrant Shares into which the Holder desires to convert this Warrant:

![](tm266724d10_ex10-7sp1img01.jpg)

Where: X = the number of Warrant Shares to be issued to the Holder;

Y = the number of Warrant Shares to which the Holder is otherwise entitled upon exercise of this Warrant (excluding Warrant Shares already issued under this Warrant);

A = the Fair Market Value (as defined below) of one Warrant Share at the time of exercise; and

B = the Exercise Price in effect at the time of exercise.

Upon completion of the calculation, if X is a negative number, then X shall be deemed to be 0 (zero).

As used herein, the Fair Market Value of a Warrant Share shall mean one of the following, in descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the exercise date is a Triggering Event in which shareholders of the Company receive payment for the
transfer of shares held by them, then the highest price at which any such shares are purchased within
the framework of the Triggering Event

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the exercise date is the date of the closing of a public offering of the Company's shares
 pursuant to an effective registration statement under the Securities Act, or any similar law of any other jurisdiction, then the
 public offering price (before deduction of underwriters' discounts or commissions) in such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the exercise date is within 90 (ninety) days of any issuance of shares by the Company pursuant to any
Qualified Financing, then the highest price at which any such shares are issued within the framework of such equity raising.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company's shares that are of the same class as the Warrant Shares are listed on a
 securities exchange or are quoted on the quoting system on which shares of the Company are registered, then the average of the high
 and low reported sales prices on the 5 (five) trading days immediately prior to the exercise date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the securities into which this Warrant may be exercised are listed on a securities exchange or
 are quoted on the quoting system and item (d) does not apply, then the product of (i) the average of the high and low
 reported sales prices on the trading day immediately prior to the exercise date of the securities, and (ii) the number of shares of such security into
which one Warrant Share is convertible at the date of calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Company's shares are not listed on a securities exchange or are not quoted on the quoting system on which shares
of the Company are registered, but are traded in the over-the-counter market, then the average mean of the bid and asked prices on the *5* (five) trading day immediately prior to the exercise date.

If the Fair Market Value cannot be determined pursuant to Sub-sections (a)-(f) above, the Fair Market Value shall be as determined in good faith by the Board of Directors of the Company, provided, however, that the Holder shall be entitled to demand that the valuation be established by mutually agreed upon independent auditors who are an internationally recognized auditing firm, at the shared expense of the Company and Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4  **<u>Partial Exercise, Etc</u>** **.** If this Warrant should be exercised in part only, the
 Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new
 Warrant evidencing the rights of the Holder to purchase the balance of the shares purchasable
 hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5  **<u>Issuance Of the Warrant Shares</u>** . Upon presentation and surrender of the notice of exercise
 and after the payment of the Exercise Price pursuant to Section *5*.2, or upon
 presentation and surrender of the notice of exercise pursuant to Section 5.3, as the
 case may be, the Company shall issue within 3 business days to the Holder the shares to which
 the Holder is entitled.

As of and from the close of business on the date of receipt by the Company of the notice of exercise (and, if applicable, the payment of the Exercise Price multiplied by the number of Warrant Shares mentioned in the written notice of exercise from the Holder to the Company), the Holder shall be deemed to be the holder of the Warrant Shares issuable upon such exercise, notwithstanding that the share transfer books of the Company shall then be closed and that certificates representing such shares shall not then be actually delivered to the Holder. The Company shall pay all duties, commission, taxes and other charges that may be payable in connection with the issuance of such Warrant Shares and the preparation and delivery of share certificates pursuant to this Section *5* in the name of the Holder. No fractions of shares shall be issued in connection with the exercise of this Warrant and the number of shares shall be rounded to the nearest whole number.

All Warrant Shares issued shall be fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6  **<u>Automatic Exercise</u>**  **<u>.</u>** Without derogating from Section 4.1, if at the
 time of expiry of the Warrant Period
for any portion of the Warrant, any portion of the Warrant has not been exercised, the Warrant (solely with respect to the amount for
which the Warrant Period shall then expire)
will be deemed to have been exercised in accordance with the provisions of Section *5*.3 at the date of expiry of the Warrant
Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7  **<u>Conditional Exercise.</u>** Any (i) purchase of Warrant Shares or (ii) exercise of
 the right to Alternative Payment pursuant to Section 15 below, by the Holder in connection
 with the receipt of a notice of an anticipated Exit Transaction or equity-raising
event may be made conditional upon the consummation and closing of such Exit Transaction or equity-raising event of the Company.

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**6.**  **<u>RESERVATION OF SHARES AND PRESERVATION OF RIGHTS OF HOLDER</u>** 

The Company hereby agrees that at all times it will maintain and reserve, free from preemptive rights, lien or other third party rights, such number of authorized but un-issued shares in its capital, so that this Warrant may be exercised without additional authorization of Warrant Shares after giving effect to all other options, warrants, convertible securities and other rights to acquire shares of the Company. The Company further agrees that it will not, by charter amendment of its organization documents or through reorganization, voluntary liquidation, consolidation, merger, dissolution, winding up or sale of assets, or by any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations or conditions to be observed or performed hereunder by the Company.

**7.**  **<u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>** 

The Company hereby represents, warrants and undertakes to Holder as follows:

7.1 This Warrant has been duly authorized and executed by the Company and
 is a valid and binding obligation of the Company enforceable in accordance with its terms. The grant of this Warrant
 and the issuance of the Warrant Shares in accordance herewith shall not entitle any third party, including any shareholders of the
 Company, to any pre-emptive rights, anti-dilution rights, or other Benefits.

7.2 The Warrant
 Shares, when paid for and issued in accordance with the terms hereof, shall be duly authorized,
 will be validly issued, fully paid and non-assessable, not subject to any preemptive rights
 (other than preemptive rights waived prior to the issue of this Warrant) and issued
free and clear of all debts,, liens, encumbrances, taxes, charges, equities, claims, any rights of third parties and any other liabilities,

7.3 The execution
 and delivery of this Warrant do not, and the issuance of the Warrant Shares upon exercise
 of this Warrant in accordance with the terms hereof will not, conflict with the Articles
 of Association and/or the Last Financing and/or the SRA, and do not and will not contravene
 any law, governmental rule or regulation, judgment or order applicable to the Company,
and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage,
contract or other instrument of which the Company is a party or by which it is bound or, except for consents and waivers that have
already been obtained by the Company, require any waiver or the consent or approval of, the giving of notice to, the
registration with or the taking of any action in respect of or by, any government authority or agency or other person known to the
Company other than the Registrar of Companies.

Without derogating from the generality of the aforesaid, (i) the Company has fulfilled all requirements of the Articles of Association, the Last Financing, the SRA and any other agreement and/or document by which the Company is bound in respect of pre-emptive rights, veto rights or any other limitations on the issuance of this Warrant or the right of the Holder to exercise the Warrant and purchase the Warrant Shares, and every shareholder or other holder of pre-emptive rights or any other rights has waived or failed to exercise such rights within the time periods specified, after receiving due notice of this transaction and its terms, if applicable. and (ii) this Warrant has been duly approved in accordance with any special voting rights specified in the Last Financing, the SRA, the Articles of Association and/or in any other agreement and/or document by which the Company is bound.

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7.4 Without derogating
 from the Holder's rights, the Company warrants and undertakes, that no holder of the
 Company's shares (or related party thereto), is or shall be entitled (including, without
limitation, in any of the following events: conversion, split, consolidation, reorganization, reclassification, merger, combination
or subdivision of shares, distribution of share dividend or disposition of assets) to any bonus, compensation, grant or any fiscal
or monetary rights from the Company to which the Holder, subject to the exercise of the Warrant, is not entitled, other than
bona fide payment to shareholders who are employees or who provide services to the Company, which payment is made to such
shareholders not in their capacity as shareholders.

7.5 Without
 derogating from the above, the Company warrants and undertakes, that it has received all
 required waivers, approvals and consents from all shareholders and investors, to enable the
 Holder to become a party to the SRA, and to be entitled to all rights that the holders of
 Preferred D Shares are entitled to.

7.6 The
 share capital of the Company on a fully diluted and as converted basis is as set forth in  **<u>Exhibit 7.6</u>** attached hereto.
 Except as set forth in Exhibit 7.6, there are no outstanding options, warrants, convertible
 instruments, rights or agreements or commitments or understandings, or ongoing negotiations
 for any of the above, of any kind, for the purchase or acquisition from the Company of any
 of its securities.

7.7 The Financial
 Statements, as were provided to *the* Holder prior to the date hereof, (a) were
 prepared in accordance with the books and records of the Company; in accordance with US/lL generally
accepted accounting principles (GAAP) consistently applied; (b) fairly present the Company's financial condition and the
results of its operations as of the relevant dates thereof and for the periods covered thereby (subject to year-end adjustments);
and (c) contain and reflect all necessary adjustments, accruals and reserves for a fair presentation of the Company's
financial condition and the results of its operations for the periods covered by said Financial Statements (subject to year-end
adjustments), provided however that any unaudited Financial Statements may be subject to amendments upon audit.

7.8 There has
 been no claim or proceeding against the Company seeking bankruptcy, reorganization or other
 relief with respect to it or its debts under any foreign or domestic, federal, state or local bankruptcy,
insolvency or other similar law, or any petition filed against any part of the property of the Company.

7.9 The
 Articles of Association of the Company, as in force at the date hereof, are attached hereto
 as  **<u>Exhibit 7.9</u>** .

7.10 The Last
 Financing was effected in accordance with the SPA and the documents referenced therein, and
 no amendments to such documents have been made thereafter. No financing has been received
 by the Company since the Last Financing.

**8.**  **<u>INVESTMENT REPRESENTATION</u>** 

Neither this Warrant nor the Warrant Shares issuable upon the exercise of this Warrant have been registered under the Securities Act, or any other securities laws. The Holder acknowledges by acceptance of this Warrant that: (a) it has acquired this Warrant for investment for the Holder's own account, not as a nominee or agent, and not with a view to the resale or distribution; (b) it has either a pre-existing personal or business relationship with the Company, or its executive officers, or by reason of its business or financial experience, it has the capacity to protect its own interests in connection with the transaction and can bear the economic risk of this transaction; and (c) it is an accredited investor as that term is defined in Regulation D promulgated under the Securities Act. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant will be acquired for investment and not with a view to distribution, that such Warrant Shares will not be registered under the Securities Act and applicable state securities laws or any other securities laws and that such Warrant Shares may have to be held indefinitely unless they are subsequently registered or qualified under the Securities Act and applicable state securities laws, or an exemption from such registration and qualification is available. The Holder, by acceptance hereof, consents to the placement of legend(s) on all securities hereunder as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

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**9.**  **<u>ADJUSTMENT</u>** 

The number and kind of securities purchasable initially upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1  **<u>Adjustment for Shares Splits and Combinations</u>** **.** If the Company at any time or from time to time effects a subdivision of the outstanding
 shares, the number of shares issuable upon exercise of this Warrant immediately before the
 subdivision shall be proportionately increased, to reflect the increase in the number of
 outstanding shares, and conversely, if the Company at any time or from time to time combines
 the outstanding shares, the number of shares issuable upon exercise of this Warrant immediately
 before the combination shall be proportionately decreased, to reflect the decrease in the
 number of outstanding shares. Any adjustment under this Section 9.1 shall become effective
 at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2  **<u>Adjustment for Certain Dividends and Distributions</u>** **.** ln the event the Company at any time, or from time
 to time makes, or fixes a record date for the determination of holders of shares entitled
 to receive a dividend or other distribution payable in additional shares of the Company,
 then and in each such event the number of shares issuable upon exercise of this Warrant shall
 be increased as of the time of such issuance or, in the event such a record date is
 fixed, as of the close of business on such record date, by multiplying the number of shares
 issuable upon exercise of this Warrant by a fraction: (i) the numerator of which shall
 be the total number of shares of the Company issued and outstanding immediately prior to
 the time of such issuance or the close of business on such record date plus the number of
 shares issuable in payment of such dividend or distribution, and (ii) the denominator
 of which is the total number of shares of the Company issued and outstanding immediately
 prior to the time of such issuance or the close of business on such record date. The Exercise
 Price will be reduced by the same proportion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3  **<u>Adjustments for Other Dividends and Distributions</u>** **.** In
 the event the Company at any time or from time to time makes, or fixes a record date for
 the determination of holders of shares entitled to receive a dividend or other distribution
 payable in securities of the Company other than shares, then in each such event provision
 shall be made so that the Holder shall receive upon exercise of this Warrant, in addition
 to the number of shares receivable thereupon, the amount of securities of the Company
 that the Holder would have received had this Warrant been exercised for Warrant Shares immediately
 prior to such event (or the record date for such event} and had the Holder thereafter, during
 the period from the date of such event to and including the date of exercise, retained such
 securities receivable by it as aforesaid during such period. subject to all other adjustments
 called for during such period under this Section 9 and the Articles of Association with
 respect to the rights of the Holder. In the event the Company, at any time or from time to
 time, distributes dividends (in cash or in any other form, including, without limitation,
 assets of the Company, but other than in securities) the Exercise
 Price will be reduced by the per Warrant Share amount of the distribution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4  **<u>Other Transactions</u>** **.** In
 the event that the Company shall issue shares to its shareholders as a result of a split-off,
 spin-off or the like, then the Company shall only complete such issuance or other action
 if, as part thereof, allowance is made to protect the economic interest of the Holder either
 by increasing the number of Warrant Shares, adjusting the Exercise Price, and/or by procuring
 that the Holder shall be entitled, on economically proportionate terms, determined
 in good faith by the Company's Board of Directors, to acquire additional shares of
 the spun-off or split-off entities, in the event of an exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5  **<u>Other Dilutive Events</u>** **.** In
 case any event shall occur as to which the preceding Sections 9.1 through 9.4 are not strictly
 applicable but as to which the failure to make any adjustment would not fairly protect the
 Holder's rights to receive shares represented by this Warrant in accordance with the
 essential intent and principles hereof, then, in each such case, the Company's Board
 of Directors shall, in good faith, determine what adjustments are necessary to preserve the
 rights of the Holder to receive shares represented by this Warrant and take all necessary
 steps to implement such preservation of rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6  **<u>Pay to Play</u>** **.** lf Pay to Play Provisions are at any time during the term of this Warrant applied to the
 outstanding shares of the class of the Warrant Shares, then from and after such application,
 the class of shares into which this Warrant may be exercised shall mean that class and series
 of the Company's securities that a holder of outstanding shares of the Warrant Shares
 as of immediately prior to such application would have received or retained had such holder
 participated in the manner necessary to receive or retain the class and series of the Company's
 securities having the relative rights, powers, privileges and preferences more favorable
 to the holder. As used herein, " <u>Pay to Play Provisions</u> " means provisions
 set forth in the Company's Articles, or in a shareholders agreement or for an *ad-hoc* reason for particular investment, that require holders of the outstanding shares of the class
 of the Warrant Shares to participate in a subsequent round of equity financing of the Company
 or lose all or a portion of the benefit of anti-dilution protection or any other right, power,
 privilege or preference applicable to such shares or have such shares automatically convert
 to ordinary shares or another class or series of the Company's share capital, other
 than the mere dilutive effect of a shareholder electing not to participate in such round
 of equity financing, whether in accordance with his/her/its preemptive rights or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7  **<u>Anti-Dilution Adjustment</u>** **.** Without
 duplication of any adjustment otherwise provided for in this Section 9, if, while this
 Warrant, or any portion hereof, remains outstanding and unexpired, the Company issues or
 sells any class or series of securities or any instrument convertible into securities of
 the Company at a price per share such that the class of Warrant Shares into which this Warrant
 is exercisable are entitled to an anti-dilution adjustment pursuant to the Articles, or if
 the conversion price of the class of Warrant Shares into which this Warrant is exercisable
 is otherwise reduced, then such reduction shall be deemed to apply automatically to the Warrant
 Shares purchasable by exercising this Warrant, such that upon such exercise, the conversion
 price of the Warrant Shares shall be that reduced conversion price determined for the class
 of shares constituting the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8  **<u>Adjustment of Exercise Price</u>** **.** Upon
 each adjustment in the number of Warrant Shares purchasable hereunder, the Exercise Price
 shall be proportionately increased or decreased, as the case may be, in a manner that is
 the inverse of the manner in which the number of Warrant Shares purchasable hereunder shall
 be adjusted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.**  **<u>SHARE SWAP</u>** 

Subject to the provisions of Section 4, the Company undertakes not to enter into any share swap agreement or arrangement (such as a merger, reorganization, or sale of all, or substantially all, of the Company's shares) (a **"Share Swap"),** unless the other company to such Share Swap agreement undertakes to allot to the Holder, upon, and subject to, the exercise of this Warrant, such securities as were swapped for the shares of the Company, as though the Holder had held the Warrant Shares on the record date of the Share Swap. In the event of a Share Swap, the securities issuable upon exercise of this Warrant shall be the swapped securities of such other company (not the Company's shares). Nothing herein shall derogate from the notice requirements of Section 4. For the removal of doubt, a Share Swap may be deemed an Exit Transaction.

**11.**  **<u>HOLDER'S RIGHTS</u>** 

11.1 Upon exercise of the Warrant, in whole or in part, the Holder shall
 be entitled to become a party to the SRA (or to any amendment to such agreements), or to any future Shareholders' /
 Investors' Rights Agreement and/or any other similar type of agreement that may be entered into by the investors in the
 Qualified Financing (in the event the Holder has elected, pursuant to the terms of this Warrant, that the Warrant Shares to be
 issued with respect to any unexercised portion of the Warrant shall be Qualified Financing Shares), and shall be deemed as an
 investor for all purposes thereunder. For the avoidance of doubt, if any fiscal or monetary rights are granted to investors in the
 next Qualified Financing and the Warrant Shares are of the same class of shares issued in such Qualified Financing, then the Holder
 shall be entitled to such fiscal or monetary rights, protections, preferences and privileges attached to the Warrant
 Shares.

11.2 Notwithstanding
 anything herein to the contrary, for as long as this Warrant is outstanding, in connection
 with any rights offering that Company may from time to time propose to offer or sell
which is consummated after the Effective Date (excluding an IPO and excluding issuances excluded from the definition of New
Securities, as such term is defined in the Articles), Company hereby grants to Holder the right to invest up to such amount
of cash as is required to enable Holder to purchase that number of shares as will enable Holder to own or acquire immediately after
completion of such offering the same percentage of the securities of Company (on a fully diluted basis) as Holder owned and/or had
the right to purchase under this Warrant. It is hereby explicitly agreed that such right of Holder shall not be conditioned upon
exercise of its rights under this Warrant. Holder agrees that if Holder intends to exercise the right granted to it herein then
Holder shall so notify Company no later than the date which is 14 days after the date that Company notified Holder of the
corresponding securities offering.

11.3 It is acknowledged and agreed
that for the purpose of determining the Company holdings of the Holder for the purpose of Section 11.2, the designation of the Warrant
Shares shall be determined as follows: (i) if at the time of calculation the Qualified Financing has not yet occurred or was not
deemed to occur, the Warrant shall be deemed to be exercisable into Preferred D Shares, and (ii) if at the time of calculation the
Qualified Financing has occurred or was deemed to occur, the Warrant shall be deemed to be exercisable into Qualified Financing Shares
immediately prior to commencement of such offering.

**12.**  **<u>COVENANTS</u>** 

12.1  **<u>Good Faith</u>** **.** The Company represents and warrants that it will not intentionally take any action which
 may deprive the Holder of its rights, or may harm Holder's rights hereunder; and the
 Company shall fulfill its commitments as set forth in this Warrant in good faith; and Company
 shall protect Holder from any unfair actions by other shareholders.

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12.2  **<u>No Action</u>** **.** The Company shall not take any action which would render unavailable the exemption from the
 registration provisions of the Securities Act afforded by Section 4(2) thereof
 and/or Regulation D promulgated thereunder.

**13.**  **<u>NOTICE OF CHANGES AND EXCHANGE OR LOSS OF WARRANT</u>** 

13.1 Whenever the number of Warrant
Shares for which this Warrant is exercisable is adjusted as provided in Section 9, the Company shall promptly compute such adjustment
and deliver to the Holder a certificate, signed by an authorized principal financial officer of the Company, setting forth the number
of Warrant Shares for which this Warrant is exercisable and the Exercise Price as a result of such adjustment, a brief statement of the
facts requiring such adjustment and the computation thereof and when such adjustment has or will become effective.

13.2 Upon receipt
 by the Company of a declaration by an officer of the Holder of the loss; theft, destruction
 or mutilation of this Warrant, and (in the case of loss, theft or destruction) of a declaration
 that the Holder will provide indemnification, and reimbursement to the Company of
all reasonable expenses incidental thereto and surrender and cancellation of this Warrant, if mutilated, the Company will execute and
deliver a new Warrant of like tenor and date.

**14.**  **<u>ASSIGNMENT</u>** 

The Holder may, at any time, offer, sell, assign, transfer or otherwise dispose of this Warrant, in whole or in part and on one or more occasions, to any entity in which the Holder has an equity interest of at least *5%* or to any other financial institution, bank or venture capital fund, provided such assignee does not directly compete with the Company, subject to any rights of first refusal of any other shareholders in the Company, by notification to the Company in the form of assignment attached here as **<u>Exhibit 14</u>,** duly completed and signed. Approval by the Board of Directors of this Warrant shall constitute approval of such assignment.

For avoidance of doubt, a venture capital fund which has holdings in a competitor of Company shall not be deemed a competitor, for the purpose hereof.

**15.**  **<u>ALTERNATIVE PAYMENT</u>** 

Upon or immediately prior to the consummation of an Exit Transaction, and/or in any event in which the Holder is required by the underwriter or by the buying party(ies) pursuant to Section 3 above to exercise this Warrant, the Holder may elect to waive all or any portion of the rights it may then have under this Warrant in consideration for the payment by the Company of the Alternative Payment. Such waiver shall be made by written notice to the Company, after the Company shall have provided notice of an Exit Transaction to the Holder, which includes the material terms of the Exit Transaction, in accordance with the procedure specified in Section 4. The Holder shall be entitled, within 21 days of receipt of such notice, to advise the Company in writing of its election to waive its rights as aforesaid (provided that any such notice may be made conditional upon the consummation and closing of the transaction).

In the event the Company receives from the Holder a notice of waiver as described above, the Company will pay to the Holder the Alternative Payment within two (2) Business Days after the date of the closing of an Exit Transaction.

The Alternative Payment payable in consideration of the waiver of all the rights of the Holder to purchase Warrant Shares under this Warrant shall be equal to $300,000 (Three hundred Thousand U.S. dollars). If the Holder waives its rights to purchase only a portion of the Warrant Shares, or, in the event the Warrant was partially exercised prior thereto, the Alternative Payment payable by the Company in connection with such waiver, shall be proportionally reduced.

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Any waiver of the Holder's rights under this Warrant in consideration of the Alternative Payment shall be conditional upon the consummation and closing of the relevant Exit Transaction as specified in the waiver notice.

Payment of the Alternative Payment according to this Section 15 shall be prior to any distribution preferences set forth in the Articles of Association or any other profit sharing or preferred liquidation preference payable to any other security holder of the Company. The Company shall attain any necessary consents and waivers to guarantee such commitment.

**16.**  **<u>MINIMAL PROTECTION OF HOLDER UPON SALE OF SHARES</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 Any future
 sale of the Holder's Warrant Shares (and any additional shares issued in connection
 therewith) in the framework of a merger or acquisition of the Company **("Sale"),** shall be subject (at least) to the following protections of the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1 any
 representations and warranties to be made by Holder in connection with the sale of its shares
 shall be limited to representations and warranties related to authority, ownership and the
 ability to convey title to the securities held by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.2 the Holder
 shall not be liable for the inaccuracy of any representation or warranty made by the Company
 and/or by any other person in connection with the proposed Sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.3 the liability
 for indemnification, if any, of Holder, in the proposed Sale, and for the inaccuracy
of any representations and warranties made by the Company in connection with such proposed Sale, is several and not joint with any
other person, and is *pro rata* in proportion to the amount of consideration paid to Holder in connection with such proposed
Sale (determined based on the respective proceeds payable to each security holder in connection with such proposed Sale); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.4 Holder's maximum liability
and indemnification amount shall in no event exceed the amount of consideration payable to Holder in connection with such proposed Sale
(except with respect to claims related to fraud by Holder, the liability for which need not be limited as to Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 This Section 16 shall survive
the exercise of this Warrant, and shall remain in full force and effect with respect to any shares purchased as a result of the exercise
of this Warrant.

17.  **<u>EXPENSES</u>** 

The Company shall pay to the Holder, on the Holder's demand, all reasonable expenses incurred by the Holder in connection with any amendment, supplement to, or waiver and/or consent in connection with, this Warrant, or any proposal for such an amendment to be made, initiated. or requested by the Company and the preparation and delivery of share certificates in the name of the Holder.

**18.**  **<u>GOVERNING LAW</u>** 

This Warrant shall be governed by, and interpreted in accordance with, the laws of the State of Israel, without giving effect to the conflict of law rules thereof; and the parties hereto irrevocably submit to the exclusive jurisdiction of the competent courts of Tel Aviv in respect of any dispute or matter arising out of or connected with this Warrant.

19.  **<u>NOTICES</u>** 

Any notice or other communication hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered, or 3 (three) Business Days after deposit if deposited in the mail for mailing by certified mail, postage prepaid, or one Business Day after having been sent if sent by facsimile or email, and addressed as follows:

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---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Holder: | Mizrahi Tefahot Bank Ltd. |
|  | 7 Jabotinsky Street. |
|  | Ramat Gan, Israel |
|  | E-mail: <u>Dani_maor@umtb.co.il</u> |
|  | Attn: Dani Maor |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shaJI not constitute a notice): |  |
|  | Shlomo Farkas, Adv. |
|  | Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co., Law |
|  | Offices One Azrieli Center, Circular Tower |
|  | Tel Aviv 6701101, Israel |
|  | Email: ![](tm266724d10_ex10-7img01.jpg) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to Company: | Silentium Ltd. |
|  | 5 Golda Meir St. Ness-Ziona |
|  | 7403659, Israel, |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to (which shall not constitute a notice): |  |
|  | Yoel Naor<u> </u> |
|  | <u>Yoel@silentium.com</u> |

---

Each of the above addressees may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance with this paragraph.

**20.**  **<u>ENTIRE AGREEMENT</u>** 

This Warrant constitutes the entire agreement between the parties hereto with regard to the subject matters hereof, and supersedes any prior communications, agreements and/or understandings between the parties hereto with regard to the subject matters hereof

**21.**  **<u>INTERPRETATION</u>** 

The headings hereof are for the sake of convenience alone, and shall not be relied upon in the interpretation hereof. Where the context requires, words importing the singular shall also import the plural, and vice versa, and words importing the whole shall also import any part thereof, and vice versa. Expressions importing persons shall also include corporate entities. Words of inclusion shall not be construed as terms of limitation herein, so that references to "included" matters shall be regarded as non-exclusive, non-characterizing illustrations. The use of the word "or" shall not, necessarily, be exclusive. The term "Dol1ar", "$", "US$", or USO shall refer to the currency of the United States of America. "Writing",. or any term of like import, shall include words typewritten, printed, painted, photographed or represented or reproduced by any mode of reproducing words in a visible form, including email, facsimile, or other form of writing produced by electronic communication. Any agreement or law defined or referred to herein shall mean such agreement or law as from time to time may be amended, modified or supplemented. Any drafts and changes made in this Warrant during the negotiation thereof shall not be used for any purpose, and shall not be considered in construing or interpreting this Warrant. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Warrant.

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**22.**  **<u>AMENDMENT; WAIVER</u>** 

Any term or condition hereof may be amended and the observance of any term or condition hereof may be waived (either generally or particularly, and either retroactively or prospectively), only with the prior written consent oft he Company and the Holder. No waivers of or exceptions to any term or condition hereof, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term or condition.

**23.**  **<u>DELAYS OR OMISSIONS</u>** 

No delay or omission to exercise any right, power or remedy accruing hereunder to any party hereto upon any breach or default of this Warrant by the other party shall impair any such right, power or remedy of such non-breaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence in any such breach or default or any similar breach or default thereafter occurring.

**24.**  **<u>CUMULATIVEREMEDIBS</u>** 

All remedies provided in this Warrant are cumulative and not exclusive of any other remedies that may be available to a party hereto, whether provided by Jaw or otherwise.

**25.**  **<u>COUNTERPARTS</u>** 

This Warrant may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument. Executed counterparts delivered via any means of electronic transmission shall be deemed as originals.

**26.**  **<u>TERMINATION</u>** 

This Warrant and the rights conferred hereby shall terminate on the last day of the Warrant Period.

**IN WITNESS HEREOF,** the parties have executed this Warrant as of 1 day of April 2020.

/s/ Yoel Naor

---

| | |
|:---|:---|
| **Silentium Ltd.** | SILENTIUM LTD |
| By: Yoel Naor | 512491143 |
| Title: CEO |  |

---

Silentium Ltd. - Warrant Page 15 of 17

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**<u>EXHIBIT 5.1</u>**

**NOTICE OF EXERCISE**

To: **Silentium Ltd.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The undersigned hereby elects to purchase ______ *[number]* Series <u> </u> Preferred Shares of Silentium Ltd. (the **Company")** (the "Shares"),
 pursuant to the terms of the attached Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment:

◻ Enclosed is payment of $<u> </u> in cash / by a cashier's check payable to the order of the Company.

◻ Cashless exercise pursuant to Section 5.3 (Exercise of Net Issuance) of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In exercising this Warrant, the undersigned hereby confirms and acknowledges that the Shares are
 being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the
 undersigned will not offer, sell or otherwise dispose of any such Shares except under circumstances that will not result in a
 violation of the Securities Act of 1933, as amended, or any other securities laws.

4. Please issue a certificate representing said Shares in the name ofthe undersigned, at the following address:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Please issue a new Warrant for the unexercised
 portion of the Warrant (if any) in the name of the undersigned.

---

| | |
|:---|:---|
| (Date) | Print Name of Holder) |
|  | (Signature) |
|  | Name: |
|  | Title: |
|  | Telephone: |

---

Silentium Ltd. - Warrant Page 16 of 17

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**<u>EXHIBIT 13</u>**

**FORM OF ASSIGNMENT**

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto<u> </u> the right represented by the Warrant to purchase<u> </u> [number]<u> </u> [class] Preferred Shares of STARTAPP Inc. to which the Warrant relates.

The provisions of the Warrant shall be binding upon the Transferee.

---

| | | |
|:---|:---|:---|
| Dated: | <u> </u>,<u> </u> |  |
| | | (Signature must conform in all respects to name of holder as specified on the face of the Warrant) |
| | | Address of Transferee |
| In the presence of: | In the presence of: | Signature of Transferee |

---

Silentium Ltd. - Warrant Page 17 of 17

## Exhibit 10.8

**Exhibit 10.8**

Effective Date: October 20, 2022

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "**SECURITIES ACT**") OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED IF AT THAT TIME ANY SECURITIES OF THE CORPORATION HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR PROSPECTUS FILING THEREUNDER OR EXEMPTIONS FROM SUCH REGISTRATION AND PROSPECTUS REQUIREMENTS. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF HOLDER'S COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

To:

Mizrahi Tefahot Bank Ltd.

**WARRANT**

To Purchase Preferred D-2 Shares

of

**SILENTIUM LTD.**

VOID AFTER 5:00 p.m. (prevailing Israel time)

on the last day of the Warrant Period (defined below)

Silentium Ltd., a company registered in Israel (the "**Company**"), hereby grants to Mizrahi Tefahot Bank Ltd. (the "**Holder**"), the right to purchase from the Company the number of fully paid and non-assessable Preferred D-2 Shares of the Company (the "**Warrant Shares**") specified below, subject to the terms and conditions set forth below.

The Warrant Shares shall have the same rights, protections, preferences and privileges attached to the Preferred D-2 Shares of the Company, as such rights, protections, preferences and privileges shall be set forth in the Articles of Association of the Company (in effect as of the Exercise Date) and in any relevant Shareholders Rights Agreement, Share Purchase Agreement, Investors' Rights Agreement, or any similar agreement, concerning the rights of the Preferred D-2 Shareholders who participated in the SPA (as defined below) (including, without limitation, registration rights, preemptive rights, right of first refusal, right of first offer, and anti-dilution rights).

Notwithstanding the preceding paragraphs, if the Company issues shares other than Preferred D-2 Shares in the framework of the first Qualified Financing (as defined below) to occur following the Effective Date (as defined below), then the Holder shall be entitled to have the Warrant Shares be of the same class of shares as the most senior class of shares issued in the Qualified Financing, and shall have the same rights, preferences and privileges as will be attached to such class of shares (the "**Qualified Financing Shares**"). In the event that as part of the Qualified Financing, the Company issues options or warrants to an investor together with the issuance of shares, the Holder shall receive a pro rata right to receive and exercise such options or warrants at the most favorable exercise price granted to any investor in such Qualified Financing.

Silentium – Warrant –2022

Confidential

Notwithstanding anything herein to the contrary, in the event that this Warrant is exercised upon the completion of the Warrant Period, or exercised due to an Exit Transaction — and at such time: (i) a Qualified Financing has not yet occurred, and (ii) the Company has outstanding convertibles (e.g., SAFEs, CLAs) that have not yet converted into shares - then the Holder shall be entitled, at its sole discretion, to enter into an identical convertible agreement to any one of the outstanding convertibles, in an amount equal to the Warrant Amount in lieu of exercising this Warrant.

**1.**  **<u>DEFINITIONS</u>** 

For the purpose of this Warrant:

1.1 "**Alternative Payment**" shall mean an amount that the Holder shall be entitled to receive
from the Company in consideration of the waiver by the Holder of all or any portion of its outstanding rights hereunder in accordance
with the provisions of Section 15 below.

1.2 "**Articles of Association**" the Amended and Restated Articles of Association of the Company,
as currently in effect and binding on the Company and its shareholders and as may be amended.

1.3 "**Benefit**" shall mean the right to any compensation, benefit, indemnification, reimbursement
or adjustment in any form, including, without limitation, by payment of cash or distribution of any assets (including, without limitation,
of shares of any kind) as a result of any issuance by the Company of Company's securities.

1.4 "**Business Day**" shall mean any day which is a business day in Bank Mizrahi in Israel (not
including Fridays Erev Hag, and Chol HaMoed).

1.5 "**Dollar**" and "$" shall mean the
United States Dollar.

1.6 "**Exercise Price**" shall mean the exercise price payable for each Warrant Share purchasable
hereunder, which shall be the Qualified Financing Price. Notwithstanding the above, in the event that a Qualified Financing does not close
within six (6) months of Effective Date, then the Holder shall be entitled to an exercise price payable for each Warrant Share purchasable
hereunder, equal to the lowest price per share at which Preferred D-2 Shares of the Company have been and/or will be issued in the framework
of the Last Financing, such price being US$0.08888627558 per share, or any lower price per share as may be applicable based on retroactive
amendments and/or adjustments to the Last Financing documents(subject to any retroactive amendments and/or adjustments) (subject to modification
pursuant to Section 9).

1.7 "**Effective Date**" shall mean the date first
set forth above.

1.8 "**Exit Transaction**" shall mean an IPO (as defined below) or a Triggering Event (as defined
below).

1.9 "**Financial Statements** "
 shall mean the Company's audited balance sheets and statements of income as of December 31<sup>st</sup>,
 2021, certified by the Company's independent certified public accountants.

1.10 "**IPO**" shall mean the closing of the first
underwritten public offering of the Company's shares, pursuant to an effective registration statement, including a public offering
without an underwriter in a procedure known as "direct listing", in either case, under the Securities Act of 1933, as amended,
(the "**Securities Act**") or pursuant to the corresponding securities laws of any other jurisdiction, or any other legal
act resulting in the public trading of the Company's shares in any trade market (other than a registration statement effected solely
to implement an employee benefit plan or any other form or type of registration in which the Warrant Shares cannot be included pursuant
to the rules of practice of the applicable securities and exchange commission).

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1.11 "**Last Financing**" shall mean the last equity investment entered into or consummated prior to the Effective Date, i.e. the Series D-2 Extension
to Preferred D-1 Share Purchase Agreement dated May 24<sup>th</sup> 2021 (the "**SPA** ").

1.12 "**Qualified Financing**" shall mean the first
equity financing by the Company after the Effective Date, of at least Five Million US Dollars ($5,000,000.00) (gross), in one or a series
of related transactions, invested by third parties who are not currently shareholders of the Company (or affiliates thereof). In the
event that the Company consummates an equity financing that does not reach such threshold, or which is done by Company's current
shareholders, then Holder shall be entitled (but not obligated), at its sole discretion, to determine that such round is a Qualified
Financing for the purpose of this Warrant.

1.13 "**Qualified Financing Price**" shall mean the
lowest purchase price of any share issued or issuable pursuant to the Qualified Financing (including, for avoidance of doubt, any discounts
provided to any lenders and/or investors for providing convertible loan, SAFE investment, advance investment or any other form of financing).

1.14 "**SRA** "
 shall mean that certain Amended and Restated Investors' Rights Agreement, by and among
 the Company, the Investors (as defined therein) and the Ordinary Shareholders, dated May 25,
 2021 and as may be amended from time to time.

1.15 "**Triggering Event**" shall mean (a) the
assignment, sale or other disposition of fifty percent (50%) or more of the Company's shares, property and/or assets, (including,
without limitation, by way of share swap or the grant of an exclusive license to a core technology of the Company); (b) the merger,
consolidation of the Company with or into another person (following which more than fifty percent (50%) of the Company's shares
are held by persons who, prior to the said transaction, held, in the aggregate, less than fifty percent (50%) of the Company's
shares), or (c) the acquisition or sale of a controlling interest in the shareholding of the Company. A controlling interest shall
mean 50% (fifty percent) or more of the issued and outstanding share capital of the Company, and / or the right to appoint a majority
of the members of the board of directors of the Company.

1.16 "**Warrant Amount**" shall mean up to an aggregate
of $400,000 (Four Hundred Thousand US Dollars) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16.1 $200,000 upon the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16.2 An additional amount of $100,000 shall vest upon any withdrawal
of the Second Loan ![](tm266724d10_ex10-7img005.jpg) of the Loan Agreement between the Holder and the
Company, dated ______________ , 2022 (the "**Loan Agreement** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16.3 An additional amount of $100,000 shall vest upon any withdrawal
of the Third Loan ![](tm266724d10_ex10-7img006.jpg) of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16.4 To clarify: until the Company has drawn down any portion of
the Second Loan, then the portion of the Warrant Amount set forth in Section 1.16.2 (i.e., an additional amount of $100,000) shall
not be vested or exercisable; and until the Company has drawn down any portion of the Third Loan, then the portion of the Warrant Amount
set forth in Section 1.16.3 (i.e., an additional amount of $100,000) shall not be vested or exercisable. And to further clarify,
to the extent that the Company has not drawn down any portion of the Second Loan or the Third Loan by the termination dates set forth
in the Loan Agreement (i.e., 31.3.2023 and 30.6.2022 as applicable, and as such may be amended on mutual agreement of the Holder and
the Company), it is hereby clarified that the portions of the Warrant Amounts set forth in Sections 1.16.2 and 1.16.3 shall immediately
lapse and not become exercisable.

Silentium Ltd. - Warrant Page 3 of 18

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For the avoidance of doubt, repayment of any part of the loan(s) shall not deprive Holder of any rights accumulated by it prior to such repayment.

1.17 "**Warrant Period**" shall mean the period for
exercise of this Warrant, as determined pursuant to Section 3.

**2.**  **<u>NUMBER OF SHARES AVAILABLE FOR PURCHASE</u>** 

This Warrant may be exercised to purchase that number of Warrant Shares determined by dividing the outstanding Warrant Amount by the applicable Exercise Price.

**3.**  **<u>WARRANT PERIOD</u>** 

The Warrant may be exercised, in whole or in part, and on one or more occasions, during the period commencing from the Effective Date and ending eight (8) years following the Effective Date; provided, however, that if the underwriter in an IPO, or the buying party(ies) in an M&A Transaction require that all outstanding warrants of the Company, including this Warrant, be exercised and all advanced investments, convertible loans or debentures be converted or repaid, prior to or as part of the IPO or the M&A Transaction, as the case may be, then the period for exercise of the Warrant shall terminate upon the consummation of the IPO or the M&A Transaction, subject to compliance by the Company with the provisions of Section 4.1 hereof.

For the purpose hereof, an "<u>M&A Transaction</u>" shall mean: (a) the assignment, sale or other disposition of all or substantially all of the Company's property and/or assets (including, without limitation, by way of grant of an exclusive license to a core technology of the Company); or (b) the assignment, sale or other disposition of all of the Company's shares (including, without limitation, by way of a share swap); or (c) the merger or consolidation of the Company with or into another person or entity, following which all of the Company's shares are held by persons who, prior to the said transaction, held, in the aggregate, less than fifty percent (50%) of the Company's shares.

**4.**  **<u>NOTICE OF EVENTS</u>** 

4.1 In the event that the Company (i) files a registration statement (including confidential registration)
for an IPO, or (ii) signs an agreement for a Triggering Event, (iii) intends to distribute any dividends, (iv) intends
to enter into any Qualified Financing, or (v) intends to enter into any other financing or investment agreement, the Company shall,
within 30 (thirty) days thereof and at least 21 (twenty one) days prior to such event, provide detailed written notice of such filing
or offer to the Holder (the "**Company Notice**") unless the giving of such notice is barred by applicable law or by a non-disclosure
agreement governing such offer. If the giving of such notice is barred, and during the period in which the giving of such notice is barred
the Warrant would otherwise have expired, then the Warrant will remain in full force and effect for a further period of 21 (twenty one)
days after the date when such notice may be given.

Silentium Ltd. - Warrant Page 4 of 18

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4.2 Without derogating from the provisions of Section 4.1 and in addition thereto, if at any time the
Company shall offer for subscription pro rata to the holders of its shares any additional shares of any class, or there shall be any change
in the share capital of the Company, including any issuance or undertaking to issue
any securities of the Company or any action reserving securities of the Company for issuance to any person (not including options issued
to employees and consultants), or any capital reorganization or reclassification of the capital shares of the Company, or consolidation
or merger of the Company with, or sale of all or substantially all of its assets to another person or there shall be a voluntary or involuntary
dissolution, liquidation or winding-up of the Company, or other event described in Section 9 of this Warrant, then, in any one or
more of said cases, the Company shall give the Holder a written notice of the date on which such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding-up shall take place. Such notice shall also specify the date as of which the holders
of record of shares shall be entitled to exchange their shares for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, as the case may be. Unless prohibited under the
law or by a non-disclosure agreement governing such transaction, such written notice shall be given by not later than 30 (thirty) days
prior to the action in question and by not later than 30 (thirty) days prior to the record date in respect thereto. If the giving of such
notice is prohibited under the law or by a non-disclosure agreement governing such transaction, and during the period in which the giving
of such notice is prohibited the Warrant would otherwise have expired, the Warrant will remain in full force and effect for a further
period of 30 (thirty) days after the date when such notice may be given.

4.3 In the event that the Articles of Association or any agreement to which the Company is a party provides
any shareholders of the Company any preemptive, co-sale or tag-along rights upon the sale of shares by any other shareholder, and the
Holder, if it held Warrant Shares would be entitled to participate in such sale, the provisions of Section 4.1 shall apply, *mutates mutandis,* and the Company will give all necessary notices to the Holder to enable it to exercise the Warrant in a timely manner so
as to be able to participate in the sale.

**5.**  **<u>EXERCISE OF WARRANT</u>** 

5.1  **<u>Exercise</u>** .
 Subject to the provisions hereof, this Warrant may be exercised in whole or in part, on one
 or more occasions at any time during the Warrant Period. This Warrant shall be exercised
 by presentation and surrender hereof to the Company at the principal office of the Company
 or at such other office or agency as the Company may designate in writing, accompanied by
 a written notice of exercise in the form attached hereto as  **<u>Exhibit</u>**  **<u>5.1</u>** and for the purpose of determining the relevant Exercise Price, the Warrant shall be deemed
 to have been exercised at the date of submitting the written notice of exercise to the Company.

5.2  **<u>Exercise for</u>**  **<u>Cash</u>** .
 If the Holder, at its sole discretion, elects to make a cash payment for the Warrant Shares
 it shall make such payment by not later than 10 (ten) days from giving the Exercise Notice
 to the Company in an amount equal to the Exercise Price multiplied by the number of Warrant
 Shares specified in such notice. The Exercise Price for the number of Warrant Shares specified
 in the notice shall be payable in immediately available funds, in U.S. dollars. If at such
 time, the Company has an outstanding loan from, or line of credit with, the Holder, but only
 if the portion of the Warrant being exercised is then held by the Holder and has not been
 assigned or transferred to any other party, such payment may, at the Holder's sole
 discretion, be made by way of conversion of all or any part of the Company's debt to
 the Holder, including any accrued interest (whether then payable or not) and in such case,
 such debt owed by the Company to the Holder being converted, whether due or not, shall be
 declared due and converted.

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5.3  **<u>Exercise on Net</u>**  **<u>Issuance</u>** 

In lieu of payment to the Company as set forth in Section 5.2 above, and without the payment of any Exercise Price, the Holder may convert this Warrant in whole or in part, into the number of Warrant Shares calculated pursuant to the following formula, by surrendering this Warrant to the Company at the principal office of the Company, accompanied by a written notice of exercise, specifying the number of Warrant Shares into which the Holder desires to convert this Warrant:

![](tm266724d10_ex10-7img001.jpg)

Where: X = the number of Warrant Shares to be issued to the Holder;

Y = the number of Warrant Shares to which the Holder is otherwise entitled upon exercise of this Warrant (excluding Warrant Shares already issued under this Warrant);

A = the Fair Market Value (as defined below) of one Warrant Share at the time of exercise; and

B = the Exercise Price in effect at the time of exercise.

Upon completion of the calculation, if X is a negative number, then X shall be deemed to be 0 (zero).

As used herein, the Fair Market Value of a Warrant Share shall mean one of the following, in descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the exercise date is a Triggering Event in which shareholders of the Company receive payment for the
transfer of shares held by them, then the highest price at which any such shares are purchased within the framework of the Triggering
Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the exercise date is the date of the closing of a public offering of the Company's shares pursuant
to an effective registration statement under the Securities Act, or any similar law of any other jurisdiction, then the public offering
price (before deduction of underwriters' discounts or commissions) in such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the exercise date is within 90 (ninety) days of any issuance of shares by the Company pursuant to any
Qualified Financing, then the highest price at which any such shares are issued within the framework of such equity raising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company's shares that are of the same class as the Warrant Shares are listed on a securities exchange
or are quoted on the quoting system on which shares of the Company are registered, then the average of the high and low reported sales
prices on the 5 (five) trading days immediately prior to the exercise date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the securities into which this Warrant may be exercised are listed on a securities exchange or are
quoted on the quoting system and item (d) does not apply, then the product of (i) the average of the high and low reported sales
prices on the trading day immediately prior to the exercise date of the securities, and (ii) the number of shares of such security
into which one Warrant Share is convertible at the date of calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Company's shares are not listed on a securities exchange or are not quoted on the quoting system
on which shares of the Company are registered, but are traded in the over-the-counter market, then the average mean of the bid and asked
prices on the 5 (five) trading day immediately prior to the exercise date.

If the Fair Market Value cannot be determined pursuant to Sub-sections (a)-(f) above, the Fair Market Value shall be as determined in good faith by the Board of Directors of the Company, provided, however, that the Holder shall be entitled to demand that the valuation be established by mutually agreed upon independent auditors who are an internationally recognized auditing firm, at the shared expense of the Company and Holder.

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5.4  **<u>Partial Exercise</u>**  **<u>, Etc</u>** .
 If this Warrant should be exercised in part only, the Company shall, upon surrender of this
 Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the
 Holder to purchase the balance of the shares purchasable hereunder.

5.5  **<u>Issuance of the Warrant</u>**  **<u>Shares</u>** .
 Upon presentation and surrender of the notice of exercise and after the payment of the Exercise
 Price pursuant to Section 5.2, or upon presentation and surrender of the notice of exercise
 pursuant to Section 5.3, as the case may be, the Company shall issue within 3 business
 days to the Holder the shares to which the Holder is entitled.

As of and from the close of business on the date of receipt by the Company of the notice of exercise (and, if applicable, the payment of the Exercise Price multiplied by the number of Warrant Shares mentioned in the written notice of exercise from the Holder to the Company), the Holder shall be deemed to be the holder of the Warrant Shares issuable upon such exercise, notwithstanding that the share transfer books of the Company shall then be closed and that certificates representing such shares shall not then be actually delivered to the Holder. The Company shall pay all duties, commission, taxes and other charges that may be payable in connection with the issuance of such Warrant Shares and the preparation and delivery of share certificates pursuant to this Section 5 in the name of the Holder. No fractions of shares shall be issued in connection with the exercise of this Warrant and the number of shares shall be rounded to the nearest whole number.

All Warrant Shares issued shall be fully paid and non-assessable.

5.6  **<u>Automatic Exercise</u>** . Without derogating from Section 4.1, if at the
 time of expiry of the Warrant Period for any portion of the Warrant, any portion of the Warrant
 has not been exercised, the Warrant (solely with respect to the amount for which the Warrant
 Period shall then expire) will be deemed to have been exercised in accordance with the provisions
 of Section 5.3 at the date of expiry of the Warrant Period.

5.7  **<u>Conditional Exercise</u>** . Any (i) purchase of Warrant Shares or (ii) exercise
 of the right to Alternative Payment pursuant to Section 15 below, by the Holder in connection
 with the receipt of a notice of an anticipated Exit Transaction or equity-raising event may
 be made conditional upon the consummation and closing of such Exit Transaction or equity-raising
 event of the Company.

**6**.  **<u>RESERVATION OF SHARES AND PRESERVATION OF RIGHTS OF HOLDER</u>** 

The Company hereby agrees that at all times it will maintain and reserve, free from preemptive rights, lien or other third party rights, such number of authorized but un-issued shares in its capital, so that this Warrant may be exercised without additional authorization of Warrant Shares after giving effect to all other options, warrants, convertible securities and other rights to acquire shares of the Company. The Company further agrees that it will not, by charter amendment of its organization documents or through reorganization, voluntary liquidation, consolidation, merger, dissolution, winding up or sale of assets, or by any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations or conditions to be observed or performed hereunder by the Company.

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**7**.  **<u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>** 

The Company hereby represents, warrants and undertakes to Holder as follows:

7.1 This Warrant has been duly authorized and executed by the Company
and is a valid and binding obligation of the Company enforceable in accordance with its terms. The grant of this Warrant and the issuance
of the Warrant Shares in accordance herewith shall not entitle any third party, including any shareholders of the Company, to any pre-emptive
rights, anti-dilution rights, or other Benefits.

7.2 The Warrant Shares, when paid for and issued in accordance with
the terms hereof, shall be duly authorized, will be validly issued, fully paid and non-assessable, not subject to any preemptive rights
(other than preemptive rights waived prior to the issue of this Warrant) and issued free and clear of all debts, liens, encumbrances,

with respect to the Holder.

7.3 The execution and delivery of this Warrant do not, and the issuance
of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof will not, conflict with the Articles of Association
and/or the Last Financing and/or the SRA, and do not and will not contravene any law, governmental rule or regulation, judgment
or order applicable to the Company, and do not and will not conflict with or contravene any provision of, or constitute a default under,
any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound or, except for consents
and waivers that have already been obtained by the Company, require any waiver or the consent or approval of, the giving of notice to,
the registration with or the taking of any action in respect of or by, any government authority or agency or other person known to the
Company other than the Registrar of Companies.

Without derogating from the generality of the aforesaid, (i) the Company has fulfilled all requirements of the Articles of Association, the Last Financing, the SRA and any other agreement and/or document by which the Company is bound in respect of pre-emptive rights, veto rights or any other limitations on the issuance of this Warrant or the right of the Holder to exercise the Warrant and purchase the Warrant Shares, and every shareholder or other holder of pre-emptive rights or any other rights has waived or failed to exercise such rights within the time periods specified, after receiving due notice of this transaction and its terms, if applicable, and (ii) this Warrant has been duly approved in accordance with any special voting rights specified in the Last Financing, the SRA, the Articles of Association and/or in any other agreement and/or document by which the Company is bound.

7.4 Without derogating from the Holder's rights, the Company
warrants and undertakes, that no holder of the Company's shares (or related party thereto), is or shall be entitled (including,
without limitation, in any of the following events: conversion, split, consolidation, reorganization, reclassification, merger, combination
or subdivision of shares, distribution of share dividend or disposition of assets) to any bonus, compensation, grant or any fiscal or
monetary rights from the Company to which the Holder, subject to the exercise of the Warrant, is not entitled, other than bona fide payment
to shareholders who are employees or who provide services to the Company, which payment is made to such shareholders not in their capacity
as shareholders.

7.5 Without derogating from the above, the Company warrants and
undertakes, that it has received all required waivers, approvals and consents from all shareholders and investors, to enable the Holder
to become a party to the SRA, and to be entitled to all rights that the holders of Preferred D-2 Shares are entitled to.

7.6 The share capital of the Company
on a fully diluted and as converted basis is as set forth in  **<u>Exhibit</u>**  **<u>7.6</u>** attached hereto. Except as set forth in Exhibit 7.6, there are no outstanding options, warrants, convertible instruments, rights
or agreements or commitments or understandings, or ongoing negotiations for any of the above, of any kind, for the purchase or acquisition
from the Company of any of its securities.

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7.7 The Financial Statements, as were provided to the Holder prior to the date hereof, (a) were prepared
in accordance with the books and records of the Company; in accordance with US/IL generally accepted accounting principles (GAAP) consistently
applied; (b) fairly present the Company's financial condition and the results of its operations as of the relevant dates thereof
and for the periods covered thereby (subject to year-end adjustments); and (c) contain and reflect all necessary adjustments, accruals
and reserves for a fair presentation of the Company's financial condition and the results of its operations for the periods covered by
said Financial Statements (subject to year-end adjustments), provided however that any unaudited Financial Statements may be subject to
amendments upon audit.

7.8 There has been no claim or proceeding against the Company seeking bankruptcy, reorganization or other
relief with respect to it or its debts under any foreign or domestic, federal, state or local bankruptcy, insolvency or other similar
law, or any petition filed against any part of the property of the Company.

7.9 The Articles
 of Association of the Company, as in force at the date hereof, are attached hereto as  **<u>Exhibit</u>**  **<u>7.9</u>** .

7.10 The Last Financing was effected in accordance with the SPA and
the documents referenced therein, and no amendments to such documents have been made thereafter. No financing has been received by the
Company since the Last Financing.

**8.**  **<u>INVESTMENT REPRESENTATION</u>** 

Neither this Warrant nor the Warrant Shares issuable upon the exercise of this Warrant have been registered under the Securities Act, or any other securities laws. The Holder acknowledges by acceptance of this Warrant that: (a) it has acquired this Warrant for investment for the Holder's own account, not as a nominee or agent, and not with a view to the resale or distribution; (b) it has either a pre-existing personal or business relationship with the Company, or its executive officers, or by reason of its business or financial experience, it has the capacity to protect its own interests in connection with the transaction and can bear the economic risk of this transaction; and (c) it is an accredited investor as that term is defined in Regulation D promulgated under the Securities Act. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant will be acquired for investment and not with a view to distribution, that such Warrant Shares will not be registered under the Securities Act and applicable state securities laws or any other securities laws and that such Warrant Shares may have to be held indefinitely unless they are subsequently registered or qualified under the Securities Act and applicable state securities laws, or an exemption from such registration and qualification is available. The Holder, by acceptance hereof, consents to the placement of legend(s) on all securities hereunder as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

**9.**  **<u>ADJUSTMENT</u>** 

The number and kind of securities purchasable initially upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

9.1  **<u>Adjustment for Shares Splits and</u>**  **<u>Combinations</u>** .
 If the Company at any time or from time to time effects a subdivision of the outstanding
 shares, the number of shares issuable upon exercise of this Warrant immediately before the
 subdivision shall be proportionately increased, to reflect the increase in the number of
 outstanding shares, and conversely, if the Company at any time or from time to time combines
 the outstanding shares, the number of shares issuable upon exercise of this Warrant immediately
 before the combination shall be proportionately decreased, to reflect the decrease in the
 number of outstanding shares. Any adjustment under this Section 9.1 shall become effective
 at the close of business on the date the subdivision or combination becomes effective.

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9.2  **<u>Adjustment for Certain Dividends and Distributions</u>** .
 In the event the Company at any time, or from time to time makes, or fixes a record date
 for the determination of holders of shares entitled to receive a dividend or other distribution
 payable in additional shares of the Company, then and in each such event the number of shares
 issuable upon exercise of this Warrant shall be increased as of the time of such issuance
 or, in the event such a record date is fixed, as of the close of business on such record
 date, by multiplying the number of shares issuable upon exercise of this Warrant by a fraction:
 (i) the numerator of which shall be the total number of shares of the Company issued
 and outstanding immediately prior to the time of such issuance or the close of business on
 such record date plus the number of shares issuable in payment of such dividend or distribution,
 and (ii) the denominator of which is the total number of shares of the Company issued
 and outstanding immediately prior to the time of such issuance or the close of business on
 such record date. The Exercise Price will be reduced by the same proportion.

9.3  **<u>Adjustments for Other Dividends and Distributions</u>** .
 In the event the Company at any time or from time to time makes, or fixes a record date for
 the determination of holders of shares entitled to receive a dividend or other distribution
 payable in securities of the Company other than shares, then in each such event provision
 shall be made so that the Holder shall receive upon exercise of this Warrant, in addition
 to the number of shares receivable thereupon, the amount of securities of the Company that
 the Holder would have received had this Warrant been exercised for Warrant Shares immediately
 prior to such event (or the record date for such event) and had the Holder thereafter, during
 the period from the date of such event to and including the date of exercise, retained such
 securities receivable by it as aforesaid during such period, subject to all other adjustments
 called for during such period under this Section 9 and the Articles of Association with
 respect to the rights of the Holder. In the event the Company, at any time or from time to
 time, distributes dividends (in cash or in any other form, including, without limitation,
 assets of the Company, but other than in securities) the Exercise Price will be reduced by
 the per Warrant Share amount of the distribution.

9.4  **<u>Other Transactions</u>** . In the event
 that the Company shall issue shares to its shareholders as a result of a split-off, spin-off
 or the like, then the Company shall only complete such issuance or other action if, as part
 thereof, allowance is made to protect the economic interest of the Holder either by increasing
 the number of Warrant Shares, adjusting the Exercise Price, and/or by procuring that the
 Holder shall be entitled, on economically proportionate terms, determined in good faith by
 the Company's Board of Directors, to acquire additional shares of the spun-off or split-off
 entities, in the event of an exercise of this Warrant.

9.5  **<u>Other Dilutive Events</u>** . In case
 any event shall occur as to which the preceding Sections 9.1 through 9.4 are not strictly
 applicable but as to which the failure to make any adjustment would not fairly protect the
 Holder's rights to receive shares represented by this Warrant in accordance with the
 essential intent and principles hereof, then, in each such case, the Company's Board
 of Directors shall, in good faith, determine what adjustments are necessary to preserve the
 rights of the Holder to receive shares represented by this Warrant and take all necessary
 steps to implement such preservation of rights.

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9.6  **<u>Pay to Play</u>** . If Pay to Play Provisions are at any time during the term of this Warrant applied to the outstanding shares of
the class of the Warrant Shares, then from and after such application, the class of shares into which this Warrant may be exercised shall
mean that class and series of the Company's securities that a holder of outstanding shares of the Warrant Shares as of immediately
prior to such application would have received or retained had such holder participated in the manner necessary to receive or retain the
class and series of the Company's securities having the relative rights, powers, privileges and preferences more favorable to the
holder. As used herein, " <u>Pay to Play Provisions</u> " means provisions set forth in the Company's Articles, or in
a shareholders agreement or for an *ad-hoc* reason for particular investment, that require holders of the outstanding shares of
the class of the Warrant Shares to participate in a subsequent round of equity financing of the Company or lose all or a portion of the
benefit of anti-dilution protection or any other right, power, privilege or preference applicable to such shares or have such shares
automatically convert to ordinary shares or another class or series of the Company's share capital, other than the mere dilutive
effect of a shareholder electing not to participate in such round of equity financing, whether in accordance with his/her/its preemptive
rights or otherwise.

9.7  **<u>Anti-Dilution Adjustment</u>** . Without duplication
 of any adjustment otherwise provided for in this Section 9, if, while this Warrant,
 or any portion hereof, remains outstanding and unexpired, the Company issues or sells any
 class or series of securities or any instrument convertible into securities of the Company
 at a price per share such that the class of Warrant Shares into which this Warrant is exercisable
 are entitled to an anti-dilution adjustment pursuant to the Articles, or if the conversion
 price of the class of Warrant Shares into which this Warrant is exercisable is otherwise
 reduced, then such reduction shall be deemed to apply automatically to the Warrant Shares
 purchasable by exercising this Warrant, such that upon such exercise, the conversion price
 of the Warrant Shares shall be that reduced conversion price determined for the class of
 shares constituting the Warrant Shares.

9.8  **<u>Adjustment of Exercise Price</u>** . Upon
 each adjustment in the number of Warrant Shares purchasable hereunder, the Exercise Price
 shall be proportionately increased or decreased, as the case may be, in a manner that is
 the inverse of the manner in which the number of Warrant Shares purchasable hereunder shall
 be adjusted.

**10.**  **<u>SHARE SWAP</u>** 

Subject to the provisions of Section 4, the Company undertakes not to enter into any share swap agreement or arrangement (such as a merger, reorganization, or sale of all, or substantially all, of the Company's shares) (a "**Share Swap**"), unless the other company to such Share Swap agreement undertakes to allot to the Holder, upon, and subject to, the exercise of this Warrant, such securities as were swapped for the shares of the Company, as though the Holder had held the Warrant Shares on the record date of the Share Swap. In the event of a Share Swap, the securities issuable upon exercise of this Warrant shall be the swapped securities of such other company (not the Company's shares). Nothing herein shall derogate from the notice requirements of Section 4. For the removal of doubt, a Share Swap may be deemed an Exit Transaction.

**11.**  **<u>HOLDER'S RIGHTS</u>** 

11.1 Upon exercise of the Warrant, in whole or in part, the Holder
shall be entitled to become a party to the SRA (or to any amendment to such agreements), or to any future Shareholders' / Investors'
Rights Agreement and/or any other similar type of agreement that may be entered into by the investors in the Qualified Financing (in
the event the Holder has elected, pursuant to the terms of this Warrant, that the Warrant Shares to be issued with respect to any unexercised
portion of the Warrant shall be Qualified Financing Shares), and shall be deemed as an investor for all purposes thereunder. For the
avoidance of doubt, if any fiscal or monetary rights are granted to investors in the next Qualified Financing and the Warrant Shares
are of the same class of shares issued in such Qualified Financing, then the Holder shall be entitled to such fiscal or monetary rights,
protections, preferences and privileges attached to the Warrant Shares.

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11.2 Notwithstanding anything herein to the contrary, for as long
as this Warrant is outstanding, in connection with any rights offering that Company may from time to time propose to offer or sell which
is consummated after the Effective Date (excluding an IP0 and excluding issuances excluded from the definition of New Securities, as
such term is defined in the Articles), Company hereby grants to Holder the right to invest up to such amount of cash as is required to
enable Holder to purchase that number of shares as will enable Holder to own or acquire immediately after completion of such offering
the same percentage of the securities of Company (on a fully diluted basis) as Holder owned and/or had the right to purchase under this
Warrant. It is hereby explicitly agreed that such right of Holder shall not be conditioned upon exercise of its rights under this Warrant.
Holder agrees that if Holder intends to exercise the right granted to it herein then Holder shall so notify Company no later than the
date which is 14 days after the date that Company notified Holder of the corresponding securities offering.

11.3 It is acknowledged and agreed that for the purpose of determining
the Company holdings of the Holder for the purpose of Section 11.2, the designation of the Warrant Shares shall be determined as
follows: (i) if at the time of calculation the Qualified Financing has not yet occurred or was not deemed to occur, the Warrant
shall be deemed to be exercisable into Preferred D-2 Shares, and (ii) if at the time of calculation the Qualified Financing has
occurred or was deemed to occur, the Warrant shall be deemed to be exercisable into Qualified Financing Shares immediately prior to commencement
of such offering.

11.4 The Company undertakes that, in the event that Holder is required
to sell or transfer the Warrant or the Warrant Shares at the request of any governmental authority according to applicable law or regulation,
then, notwithstanding anything to the contrary in the Articles of Association and/or in any other agreement, such transfer/sale of this
Warrant and/or the Warrant Shares underlying this Warrant, shall in no event be subject to any co-sale right of other security holders
of the Company.

**12.**  **<u>COVENANTS</u>** 

12.1  **<u>Good Faith</u>** . The Company represents
 and warrants that it will not intentionally take any action which may deprive the Holder
 of its rights, or may harm Holder's rights hereunder; and the Company shall fulfill
 its commitments as set forth in this Warrant in good faith; and Company shall protect Holder
 from any unfair actions by other shareholders.

12.2  **<u>No Action</u>** . The Company shall not take any action which would render
 unavailable the exemption from the registration provisions of the Securities Act afforded
 by Section 4(2) thereof and/or Regulation D promulgated thereunder.

**13.**  **<u>NOTICE OF CHANGES AND EXCHANGE OR LOSS OF WARRANT</u>** 

13.1 Whenever the number of Warrant Shares for which this Warrant
is exercisable is adjusted as provided in Section 9, the Company shall promptly compute such adjustment and deliver to the Holder
a certificate, signed by an authorized principal financial officer of the Company, setting forth the number of Warrant Shares for which
this Warrant is exercisable and the Exercise Price as a result of such adjustment, a brief statement of the facts requiring such adjustment
and the computation thereof and when such adjustment has or will become effective.

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13.2 Upon receipt by the Company of a declaration by an officer of
the Holder of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of a declaration
that the Holder will provide indemnification, and reimbursement to the Company of all reasonable expenses incidental thereto and surrender
and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor and date.

**14.**  **<u>ASSIGNMENT</u>** 

The Holder may, at any time, offer, sell, assign, transfer or otherwise dispose of this Warrant, in whole or in part and on one or more occasions, to any entity in which the Holder has an equity interest of at least 5% or to any other financial institution, bank or venture capital fund, provided such assignee does not directly compete with the Company, subject to any rights of first refusal of any other shareholders in the Company, by notification to the Company in the form of assignment attached here as **<u>Exhibit</u>**  **<u>14,</u>** duly completed and signed. Approval by the Board of Directors of this Warrant shall constitute approval of such assignment.

For avoidance of doubt, a venture capital fund which has holdings in a competitor of Company shall not be deemed a competitor, for the purpose hereof.

**15.**  **<u>ALTERNATIVE PAYMENT</u>** 

Upon or immediately prior to the consummation of an Exit Transaction, and/or in any event in which the Holder is required by the underwriter or by the buying party(ies) pursuant to Section 3 above to exercise this Warrant, the Holder may elect to waive all or any portion of the rights it may then have under this Warrant in consideration for the payment by the Company of the Alternative Payment. Such waiver shall be made by written notice to the Company, after the Company shall have provided notice of an Exit Transaction to the Holder, which includes the material terms of the Exit Transaction, in accordance with the procedure specified in Section 4. The Holder shall be entitled, within 21 days of receipt of such notice, to advise the Company in writing of its election to waive its rights as aforesaid (provided that any such notice may be made conditional upon the consummation and closing of the transaction).

In the event the Company receives from the Holder a notice of waiver as described above, the Company will pay to the Holder the Alternative Payment within two (2) Business Days after the date of the closing of an Exit Transaction.

The Alternative Payment payable in consideration of the waiver of all the rights of the Holder to purchase Warrant Shares under this Warrant shall be equal to:

In the event that the aggregate Warrant Amount is $400,000 — The Alternative Payment shall be $500,000 (Five hundred Thousand U.S. dollars).

In the event that the aggregate Warrant Amount is $300,000 — The Alternative Payment shall be $375,000 (Three hundred Seventy-Five Thousand U.S. dollars).

In the event that the aggregate Warrant Amount is $200,000 — The Alternative Payment shall be $250,000 (Two hundred Fifty Thousand U.S. dollars).

If the Holder waives its rights to purchase only a portion of the Warrant Shares, or, in the event the Warrant was partially exercised prior thereto, the Alternative Payment payable by the Company in connection with such waiver, shall be proportionally reduced.

Any waiver of the Holder's rights under this Warrant in consideration of the Alternative Payment shall be conditional upon the consummation and closing of the relevant Exit Transaction as specified in the waiver notice.

Payment of the Alternative Payment according to this Section 15 shall be prior to any distribution preferences set forth in the Articles of Association or any other profit sharing or preferred liquidation preference payable to any other security holder of the Company. The Company shall attain any necessary consents and waivers to guarantee such commitment.

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**16.**  **<u>MINIMAL PROTECTION OF HOLDER UPON SALE OF SHARES</u>** 

16.1 Any future sale of the Holder's Warrant Shares (and any
additional shares issued in connection therewith) in the framework of a merger or acquisition of the Company **("Sale"),** shall be subject (at least) to the following protections of the Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1 any representations and warranties to be made by Holder in connection
with the sale of its shares shall be limited to representations and warranties related to authority, ownership and the ability to convey
title to the securities held by the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.2 the Holder shall not be liable for the inaccuracy of any representation
or warranty made by the Company and/or by any other person in connection with the proposed Sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.3 the liability for indemnification, if any, of Holder, in the
proposed Sale, and for the inaccuracy of any representations and warranties made by the Company in connection with such proposed Sale,
is several and not joint with any other person, and is *pro rata* in proportion to the amount of consideration paid to Holder in
connection with such proposed Sale (determined based on the respective proceeds payable to each security holder in connection with such
proposed Sale); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.4 Holder's maximum liability and indemnification amount
shall in no event exceed the amount of consideration payable to Holder in connection with such proposed Sale (except with respect to
claims related to fraud by Holder, the liability for which need not be limited as to Holder).

16.2 This Section 16 shall survive the exercise of this Warrant,
and shall remain in full force and effect with respect to any Shares purchased as a result of the exercise of this Warrant.

**17.**  **<u>EXPENSES</u>** 

The Company shall pay to the Holder, on the Holder's demand, all reasonable expenses incurred by the Holder in connection with any amendment, supplement to, or waiver and/or consent in connection with, this Warrant, or any proposal for such an amendment to be made, initiated or requested by the Company and the preparation and delivery of share certificates in the name of the Holder.

**18.**  **<u>GOVERNING LAW</u>** 

This Warrant shall be governed by, and interpreted in accordance with, the laws of the State of Israel, without giving effect to the conflict of law rules thereof; and the parties hereto irrevocably submit to the exclusive jurisdiction of the competent courts of Tel Aviv in respect of any dispute or matter arising out of or connected with this Warrant.

**19.**  **<u>NOTICES</u>** 

Any notice or other communication hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered, or 3 (three) Business Days after deposit if deposited in the mail for mailing by certified mail, postage prepaid, or one Business Day after having been sent if sent by facsimile or email, and addressed as follows:

---

| | |
|:---|:---|
| If to Holder: | Mizrahi Tefahot Bank Ltd. |
|  | 7 Jabotinsky Street. |
|  | Ramat Gan, Israel |
|  | E-mail: <u>dani_maor@umtb.co.il</u> |
|  | Attn: Dani Maor |

---

Silentium Ltd. - Warrant Page 14 of 18

Confidential

with a copy to (which shall not constitute a notice):

---

| | |
|:---|:---|
|  | Shlomo Farkas, Adv. |
|  | Gross Law Firm |
|  | One Azrieli Center, Circular Tower |
|  | Tel Aviv 6701101, Israel |
|  | Email: <u>shlomo@gkh-law.com</u> |
| If to Company: | Silentium Ltd. |
|  | <u> </u> |
|  | <u> </u> |
| with a copy to (which shall not constitute a notice): | with a copy to (which shall not constitute a notice): |
|  | <u> </u> |
|  | <u> </u> |
|  | <u> </u> |

---

Each of the above addressees may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance with this paragraph.

**20.**  **<u>ENTIRE AGREEMENT</u>** 

This Warrant constitutes the entire agreement between the parties hereto with regard to the subject matters hereof, and supersedes any prior communications, agreements and/or understandings between the parties hereto with regard to the subject matters hereof.

**21.** FOR AVOIDANCE OF DOUBT, NOTHING HEREIN SHALL IN ANY WAY DEROGATE FROM THE ADDITIONAL WARRANT GRANTED BY
THE COMPANY TO HOLDER, EXECUTED APRIL 1, 2020, WHICH SHALL REMAIN IN FULL FORCE AND EFFECT.

**22.**  **<u>INTERPRETATION</u>** 

The headings hereof are for the sake of convenience alone, and shall not be relied upon in the interpretation hereof. Where the context requires, words importing the singular shall also import the plural, and vice versa, and words importing the whole shall also import any part thereof, and vice versa. Expressions importing persons shall also include corporate entities. Words of inclusion shall not be construed as terms of limitation herein, so that references to "included" matters shall be regarded as non-exclusive, non-characterizing illustrations. The use of the word "or" shall not, necessarily, be exclusive. The term "Dollar", "$", "US$", or USD shall refer to the currency of the United States of America. "Writing", or any term of like import, shall include words typewritten, printed, painted, photographed or represented or reproduced by any mode of reproducing words in a visible form, including email, facsimile, or other form of writing produced by electronic communication. Any agreement or law defined or referred to herein shall mean such agreement or law as from time to time may be amended, modified or supplemented. Any drafts and changes made in this Warrant during the negotiation thereof shall not be used for any purpose, and shall not be considered in construing or interpreting this Warrant. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Warrant.

Silentium Ltd. - Warrant Page 15 of 18

Confidential

**23.**  **<u>AMENDMENT; WAIVER</u>** 

Any term or condition hereof may be amended and the observance of any term or condition hereof may be waived (either generally or particularly, and either retroactively or prospectively), only with the prior written consent of the Company and the Holder. No waivers of or exceptions to any term or condition hereof, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term or condition.

**24.**  **<u>DELAYS OR OMISSIONS</u>** 

No delay or omission to exercise any right, power or remedy accruing hereunder to any party hereto upon any breach or default of this Warrant by the other party shall impair any such right, power or remedy of such non-breaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence in any such breach or default or any similar breach or default thereafter occurring.

**25.**  **<u>CUMULATIVE REMEDIES</u>** 

All remedies provided in this Warrant are cumulative and not exclusive of any other remedies that may be available to a party hereto, whether provided by law or otherwise.

**26.**  **<u>COUNTERPARTS</u>** 

This Warrant may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument. Executed counterparts delivered via any means of electronic transmission shall be deemed as originals.

**27.**  **<u>TERMINATION</u>** 

This Warrant and the rights conferred hereby shall terminate on the last day of the Warrant Period.

**IN WITNESS HEREOF,** the Company has executed this Warrant as of 20 day of October 2022.

---

| | |
|:---|:---|
| /s/ Yoel Naor | /s/ Yoel Naor |
| **Silentium Ltd.** | **Silentium Ltd.** |
| By: | Yoel Naor |
| Title: | CEO |

---

Silentium Ltd. - Warrant Page 16 of 18

Confidential

**<u>EXHIBIT 5.1</u>**

**NOTICE OF EXERCISE**

To: **Silentium Ltd.**

1. The undersigned hereby elects to purchase ________________ *[number]* Series ___ Preferred Shares of Silentium Ltd. (the **Company**") (the "Shares"), pursuant to the terms of the attached Warrant.

2. Payment:

◻ Enclosed is payment of $_____________ in cash / by a cashier's check payable to the order of the Company.

◻ Cashless exercise pursuant to Section 5.3 (Exercise of Net Issuance) of the Warrant.

3. In exercising this Warrant, the undersigned hereby confirms and acknowledges that the Shares are being
acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned
will not offer, sell or otherwise dispose of any such Shares except under circumstances that will not result in a violation of the Securities
Act of 1933, as amended, or any other securities laws.

4. Please issue a certificate representing said Shares in the name of the undersigned, at the following address:

<u> </u>

<u> </u>

<u> </u>

5. Please
issue a new Warrant for the unexercised portion of the Warrant (if any) in the name of the undersigned.

---

| | |
|:---|:---|
| (Date) | (Print Name of Holder) |
|  | (Signature) |
|  | Name: |
|  | Title: |
|  | Telephone: |

---

Silentium Ltd. - Warrant Page 17 of 18

Confidential

**<u>EXHIBIT 13</u>**

**FORM OF ASSIGNMENT**

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto<u> </u> the right represented by the Warrant to purchase _______________________________ [number] _________________ [class] Preferred Shares of STARTAPP Inc. to which the Warrant relates.

The provisions of the Warrant shall be binding upon the Transferee.

Dated:<u> </u>,<u> </u>

---

| | |
|:---|:---|
|  | (Signature must conform in all respects to name of holder as specified on the face of the Warrant) |
|  | Address of Transferee |
| In the presence of: | Signature of Transferee |

---

Silentium Ltd. - Warrant Page 18 of 18

## Exhibit 10.9

**Exhibit 10.9**

**SILENTIUM LTD.**

**SERIES C PREFERRED SHARE PURCHASE AND RECAPITALIZATION**

**AGREEMENT**

This SERIES C PREFERRED SHARE PURCHASE AGREEMENT (this "**Agreement**") effective as of September 5, 2024 (the "**Effective Date**") by and between Silentium Ltd, a private company incorporated under the laws of the State of Israel (the "**Company**"), and the purchasers whose names are set forth in **<u>Exhibit A</u>** and **<u>Exhibit A-1</u>** attached hereto (each a "**Purchaser"** and together the "**Purchasers**").

**BACKGROUND**

<u>WHEREAS</u>, the Company desires to raise capital by means of issuance and sale of up to 1,538,461,538 shares of Series C Preferred Shares, of no par value, of the Company (the "**New Series C Shares**" or the "**Purchased Shares**"), at a purchase price of US$0.00325 per share (the "**Preferred C Price Per Share**") and an aggregate purchase price of up to US$3,625,000 (the "**Purchase Price**");

<u>WHEREAS</u>, each of the Purchasers listed on **<u>Exhibit A-1</u>** attached hereto (each also referred to hereunder as a "**SAFE Holder**" and collectively, the "**SAFE Holders**") is a holder of a simple agreement for future equity by and among the Company and the SAFE Holders, as amended herein, in the aggregate amount of US$2,675,000 (the "**SAFEs**"), and at the Closing (as defined below), the SAFEs shall be converted into 315,820,542 shares of a newly created class of Series B-1 Preferred Shares, of no par value, of the Company (the "**New Series B-1 Shares**"), at a price of US$0.00847 per each New Series B-1 Share (the "**SAFE Conversion Price**");

<u>WHEREAS</u>, each of the Purchasers listed on **<u>Exhibit A-1</u>** attached hereto (each also referred to hereunder as a "**SAFE Warrant Holder**" and collectively, the "**SAFE Warrant Holders**") is entitled to a warrant issued in connection with an Equity Financing (as defined therein) pursuant to the terms of the SAFE (the "**SAFE Warrants**"), and at the Closing (as defined below), the terms of SAFE Warrants shall be amended so that instead of being exercisable into Series D-2 Preferred Shares, they will be exercisable into 315,820,542 shares of a newly created class of Series B-2 Preferred Shares, of no par value, of the Company (the "**New Series B-2 Shares**"), at a price per share as set forth in this Agreement;

<u>WHEREAS</u>, prior to the Closing (as defined below), all currently existing (prior to the Closing) shares of Series A Preferred Shares, of no par value, of the Company **("Series A Preferred Shares**"), shares of Series B-1 Preferred Shares, of no par value, of the Company **("Series B-1 Preferred Shares**"), shares of Series B-2 Preferred Shares, of no par value each, of the Company **("Series B-2 Preferred Shares**"), shares of Series B-3 Preferred Shares, of no par value, of the Company **("Series B-3 Preferred Shares**"), shares of Series B-4 Preferred Shares, of no par value, of the Company **("Series B-4 Preferred Shares**"), shares of Series C-1 Preferred Shares, of no par value, of the Company **("Series C-1 Preferred Shares**"), shares of Series C-2 Preferred Shares, of no par value, of the Company **("Series C-2 Preferred Shares**"), shares of Series D Preferred Shares, of no par value, of the Company **("Series D Preferred Shares**"), shares of Series D-1 Preferred Shares, of no par value, of the Company **("Series D-1 Preferred Shares**"), and shares of Series D-2 Preferred Shares, of no par value, of the Company **("Series D-2 Preferred Shares**") then issued and outstanding, shall be converted, without consideration, on a 1:1 basis, into ordinary shares of no par value, of the Company (the "**Conversion Shares",** the "**Ordinary Shares**" respectively) (the "**Pre-Closing Conversion**"), and upon the Closing the Company shall effect the Purchasers Exchange (as defined below) with respect to the applicable Purchasers, as further detailed below; and

<u>WHEREAS</u>, prior to the Closing, all outstanding warrants (other than the second Warrant issued to Mizrahi Tefahot Bank Ltd. on October 20, 2022 ("**MTB Second Warrant**") which remains in full force under its terms) and options (which were not granted pursuant to the Company's option plan) issued to certain stakeholders of the Company (collectively, the "**Options**") shall be amended into warrants or options (as applicable) to purchase Ordinary Shares of the Company, at an exercise price as specified in each such warrant or option.

<u>WHEREAS</u>, the Purchasers, severally and not jointly, desire to purchase the Purchased Shares on the terms and subject to the conditions set forth in this Agreement.

<u>NOW, THEREFORE</u>, this Agreement is intended to set forth all of the terms and conditions upon which the parties hereto have agreed to effectuate the purchase and sale of the Purchased Shares.

**AGREEMENT**

**1.** **<u>Issuance and Purchase of the Purchased Shares</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Authorization</u>. The Company will, prior to the Closing (as defined below), authorize the sale and issuance of the Purchased Shares, having the rights, privileges and preferences set forth in the Company's Amended and Restated Articles of Association (the "**Restated Articles**") in the form attached hereto as **<u>Exhibit B</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Sale of Purchased Shares</u>. Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase and the Company agrees to sell and issue to each Purchaser, such number of New Series C Shares as set forth opposite the name of each Purchaser in **<u>Exhibit A</u>** attached hereto, at the Preferred C Price Per Share, which is based upon a Company's pre-money valuation of US$6,000,000 on a Fully-Diluted Basis, as reflected in the capitalization table of the Company attached hereto as **<u>Schedule 3.5</u>** (the "**Capitalization Table**").

In this Agreement, "**Fully-Diluted Basis**" shall mean all issued and outstanding shares of the Company, including but not limited to (i) all Ordinary Shares, and preferred shares (being deemed converted to Ordinary Shares), (ii) all securities convertible into Ordinary Shares being deemed so converted, (iii) all convertible loans and all accrued interest thereon, being deemed so converted (including the SAFEs), (iv) all options, warrants and other rights to acquire shares or exchangeable for shares deemed allocated and exercised, (v) adjustments of numbers of issued shares triggered by or in connection with this financing (if any), and (vi) all options promised, reserved for and/or allocated to employees, directors and consultants deemed converted and/or granted and/or exercised, but excluding the Option Pool Increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>SAFEs.</u> At the Closing, the SAFEs shall be converted into such number of New Series B-1 Shares as set forth opposite the name of such SAFE Holder in **<u>Exhibit A-1</u>** attached hereto, at the SAFE Conversion Price, and the Company shall issue to each SAFE Holder at the Closing, such number of New Series B-1 Shares, against the conversion of its respective SAFE. By virtue of executing this Agreement, and subject to subsection 1.4 below, the Company and each of the undersigned SAFE Holders agrees and confirms that the entire purchase amount evidenced by such SAFE is being tendered to the Company in exchange for the applicable New Series B-1 Shares as set forth in **<u>Exhibit A-1</u>** attached hereto and that the SAFE, and all rights thereunder (including, for avoidance of doubt, the 3x liquidation preference set forth in the SAFE), are automatically and irrevocably terminated upon the Closing, without the need for any further action by the Company, the SAFE Holders and/or any third party and shall have no further force or effect and all side letters or related agreements executed in connection therewith shall be immediately deemed satisfied in full and terminated in their entirety, including, but not limited to, any security interest effected therein. Each SAFE Holder, and\or any of its affiliates, shall have no further rights, claims or demands against the Company in connection with the SAFE. In the event of any conflict between the terms of the SAFEs and the terms of this Agreement, the terms of this Agreement shall prevail and for the avoidance of doubt, each of the undersigned SAFE Holders, hereby agrees that the SAFEs are hereby amended to give effect to the foregoing. Each SAFE Holder hereby waives such SAFE Holder's right to notices, if any, under the SAFE in connection with the conversion of the amounts evidenced by the SAFE as provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <u>SAFE Warrants</u>. At the Closing, the warrant underlying each SAFE (the "**SAFE Warrants**") shall survive, but be exercisable only into such number New Series B-2 Shares as set forth opposite the name of such SAFE Warrant Holder in **<u>Exhibit A-1</u>** attached hereto, at a price per share equal to the SAFE Conversion Price, provided however that if prior to the expiration of the SAFE Warrant, the Company is acquired for Fifty Million U.S Dollars ($50,000,000.00) or less, then the exercise price per share shall be reduced to Zero ($0.00), and upon exercise of the SAFE Warrants, the Company shall issue to each SAFE Warrant Holder at the Closing, such number of New Series B-2 Shares, against the exercise of its respective SAFE Warrant. In the event of any conflict between the terms of the SAFE Warrants and the terms of this Agreement, the terms of this Agreement shall prevail and for the avoidance of doubt, each of the undersigned SAFE Warrant Holders, hereby agrees that the SAFE Warrants are hereby amended to give effect to the foregoing. Each SAFE Warrant Holder hereby waives such SAFE Warrant Holder's right to notices, if any, under the SAFE Warrant in connection with the conversion of the amounts evidenced by the SAFE Warrant as provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <u>Use of Proceeds</u>. The Company shall use the Purchase Price received from the Purchasers for general working capital purposes pursuant to a budget approved from time to time by the board of directors of the Company (the "**Board**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>Pre-Closing Conversion; Purchasers Exchange</u>. Prior to the Closing, the Company shall affect the Pre-Closing Conversion. Upon the Closing, a Purchaser that, together with its Affiliates, invested under this Agreement and purchased New Series C Shares, shall have the right to convert a portion of its Conversion Shares (the shares deriving from the conversion of such shareholder's most senior shares (either of one class of shares, or of different classes of shares), into Ordinary Shares) into shares of newly created Series A Preferred Shares (the "**New Series A Shares**") in such number equal to the quotient obtained by dividing: (x) the Purchase Price paid by such Purchaser *by* (y) the original issue price of such Purchaser's preferred shares that were converted into Conversion Shares as detailed in **<u>Exhibit A-2</u>** attached hereto (the "**Purchasers Exchange").** The New Series A Shares shall be divided into sub-classes, with each sub-class representing the original issue price corresponding to the Purchaser's Exchange, such that: (i) shares exchanged in accordance with the Series D Preferred Shares original issue price, the Series D-1 Preferred Shares original issue price and the Series D-2 Preferred Shares original issue price shall be classified as Series A-1 Preferred Shares (the "**Preferred A-1 Shares**"), (ii) shares exchanged in accordance with the Series C-2 Preferred Shares original issue price shall be classified as Series A-2 Preferred Shares (the "**Preferred A-2 Shares**"), (iii) shares exchanged in accordance with the Series C-3 Preferred Shares original issue price shall be classified as Series A-3 Preferred Shares (the "**Preferred A-3 Shares**"), (iv) shares exchanged in accordance with the Series B-4 Preferred Shares original issue price shall be classified as Series A-4 Preferred Shares (the "**Preferred A-4 Shares**"), (v) shares exchanged in accordance with the Series B-3 Preferred Shares original issue price the Series B-2 Preferred Shares original issue price shall be classified as Series A-5 Preferred Shares (the "**Preferred A-5 Shares**"), (vi) shares exchanged in accordance with the Series B-1 Preferred Shares original issue price shall be classified as Series A-6 Preferred Shares (the "**Preferred A-6 Shares**"), and (vii) shares exchanged in accordance with the Series A Preferred Shares original issue price shall be classified as Series A-7 Preferred Shares (the "**Preferred A-7 Shares**").

"**Affiliate**" means with respect to any specified person or entity, any other person or entity who, directly or indirectly, controls, is controlled by, or is under common control with such person or entity, including without limitation any general partner, limited partner, managing member, officer, director or trustee of such Person, or any venture capital fund or investment company now or hereafter existing that is controlled by one or more general partners, managing members of, or shares the same management company with, such person or entity, including affiliated partnerships managed by the same managing partner or management company.

2. **<u>Closing</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The closing of the purchase, sale and issuance of the Purchased Shares hereunder to the Purchasers shall take place (the "**Closing**") on the date of this Agreement concurrently with the signing hereof (the "**Closing Date**"). The Closing shall be held remotely, via the exchange of documents and signatures or at such other manner, time or place upon which the Company and the Purchaser(s) purchasing the majority of New Series C Shares hereunder (the "**Majority Purchaser(s)**") shall agree. At the Closing, the following transactions shall occur, which transactions shall be deemed to take place simultaneously and no transaction shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required documents delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. At Closing, against payment of the Purchase Price to the Company, the Company shall deliver to each Purchaser the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. True and correct copies of resolutions of the Company's shareholders, by which, among others (i) the Restated Articles shall have been properly adopted as an amendment to and restatement of the Articles of Association of the Company and by which the authorized share capital of the Company was reclassified as described in the Restated Articles, and (ii) waivers of preemptive, anti-dilution (if any) and any other adjustment, participation or veto rights are made by the requisite shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. True and correct copies of amended Option (or written consents of the holders thereof) by which, the Options shall have been amended to reflect the shares underlying such Options are Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. True and correct copies of resolutions of the Board (i) authorizing the issuance and sale of the New Series C Shares to the Purchasers upon and subject to the payment of the Purchase Price, the issuance to the SAFE Holders of New Series B-1 Shares upon conversion of the SAFES, and issuance to the SAFE Warrant Holders on New Series B-2 Shares upon exercise of the SAFE Warrants (iii) reserving a sufficient number of Ordinary Shares to be issued upon conversion of the Purchased Shares and authorizing the issuance of such Ordinary Shares upon such conversion, (iv) reserving additional Ordinary Shares of the Company (following the Closing) for the purpose of granting to employees, officers and directors of the Company options to purchase Ordinary Shares (the "**Option Pool Increase**") such that the total reserved Ordinary Shares (allocated and un-allocated) for such purpose following the Closing shall represent 15% of the Company's share capital on a Fully Diluted Basis, and (iv) approving the execution, delivery and performance by the Company of this Agreement, including all of its exhibits and schedules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4. A duly executed compliance certificate as set forth in Section 5.8 hereof in the form attached hereto as **<u>Schedule 2.2.4</u>**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.5. True and correct copies of all waivers of third-party consents required in connection with the transaction contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Immediately prior to the Closing, the Company shall effect the Pre-Closing Conversion, as reflected in the Capitalization Table.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. The Company shall register the allotment of the Purchased Shares to the Purchasers, in the shareholder register of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Each Purchaser shall cause the transfer to the Company of the Purchase Price for the New Series C Shares purchased by it, as set forth in **<u>Exhibit A</u>** attached hereto, by wire transfer to the Company's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. <u>Rights Agreement</u>. At the Closing, the Company, each Purchaser and the requisite shareholders of the Company to amend the Rights Agreement (as defined below), shall execute and deliver the Amended and Restated Shareholders' Rights Agreement, a copy of which is attached hereto as **<u>Exhibit C</u>** (the "**Rights Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. <u>Share Certificates</u>. Following the Closing, the Company shall issue share certificates representing the applicable amount of Purchased Shares registered in the name of each Purchaser.

3. **<u>Representations and Warranties of the Company.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. As an inducement to the Purchasers to purchase the Purchased Shares, the Company hereby represents and warrants to the Purchasers as of the Closing Date, as follows, and acknowledges that the Purchasers are entering into this Agreement in reliance thereon, except as set forth in the Schedule of Exceptions attached hereto as **<u>Schedule 3</u> ("Schedule of Exceptions**") (which exceptions shall be deemed to be an integral part of the representations and warranties made hereunder. The Schedule of Exceptions shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 3, and the disclosures in any section or subsection of the Schedule of Exceptions shall qualify to the corresponding sections and subsections in this Section 3. Any matter disclosed pursuant to one section or subsection of the Schedule of Exceptions is deemed disclosed for all other sections or subsections of this Schedule of Exceptions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Organization and Standing</u>. The Company is a corporation duly organized and validly existing under, and by virtue of, the laws of the State of Israel and is in good standing under such laws. The Company has all requisite corporate power and authority to own and operate its properties and assets, and to carry on its business as presently conducted and as proposed to be conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Corporate Power</u>. The Company will have at the Closing Date all requisite legal and corporate power and authority (i) to execute and deliver this Agreement and the Rights Agreement, (ii) to sell and issue the Purchased Shares hereunder and to issue the Ordinary Shares issuable upon conversion of the Purchased Shares, and (iii) to carry out and perform its obligations under this Agreement and the Restated Articles (collectively, the "**Transaction Agreements**"). The Company has obtained all permits, licenses and other authorizations which are required to be maintained by it for the conduct of its business as now being conducted, and each of them is in compliance with the terms and conditions of all such permits, licenses and authorizations. The Company is duly qualified to do business and is in good standing as a foreign corporation in all jurisdictions in which it currently operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Subsidiaries.</u> Except as set forth in **<u>Schedule 3.4</u>**, the Company has no subsidiaries and does not otherwise own or control, directly or indirectly, any equity interest in any corporation, association or business entity. The Company is not a participant in any joint venture, partnership, or similar arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Capitalization.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The registered share capital of the Company consists, immediately prior to the Closing and prior to the Pre-Closing Conversion, of: (a) 1,500,000,000 Ordinary Shares, of which 7,371239 shares are issued and outstanding, and (b) 500,000 Preferred A shares of which 358,520 are issued and outstanding; (c) 42,000,000 Preferred B-1 Shares of which 35,610,402 are issued and outstanding; (d) 142,000,000 Preferred B-2 Shares of which 131,359,374 are issued and outstanding; (e) 130,000,000 Preferred B-3 Shares of which 84,179,815 are issued and outstanding; (f) 60,000,000 Preferred B-4 Shares of which 24,946,121 are issued and outstanding; (g) 26,000,000 Preferred C-1 Shares of which 25,810,914 are issued and outstanding; (h) 280,000,000 Preferred C-2 Shares of which 253,048,375 are issued and outstanding; (i) 300,000,000 Preferred D Shares of which 123,753,638 are issued and outstanding; (j) 64,000,000 Preferred D-1 Shares of which 59,110,363 are issued and outstanding; (k) 250,000,000 Preferred D-2 Shares of which 171,601,295 are issued and outstanding;. The outstanding shares of the Company have been duly authorized and validly issued in compliance with all applicable laws, and are fully paid and non-assessable. All of the Company's shares are held beneficially and on record as set forth in the capitalization table attached hereto as **<u>Schedule 3.5(i)</u>** prior to the Closing, and as of the Closing (including the beneficial and record ownership of any shareholder that is a limited liability company or partnership).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 92,116,632 Ordinary Shares allocated to employees, consultants and/or directors pursuant to the option plan of the Company (excluding options granted to Mashav Barath). The Ordinary Shares and the Preferred Shares shall have the rights, preferences, privileges and restrictions set forth in the Restated Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other than as specified in **<u>Schedule 3.5(ii)</u>**, except for shares and options noted in the Capitalization Table, there are no outstanding options, warrants or convertibles for the purchase from the Company of any of its shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. <u>Financial Statements and Liabilities; Absence of Changes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Financial Statements and Liabilities</u>. The Company has delivered to the Purchasers its audited financial statements as of and for the fiscal year ended on December 31, 2022 and its unaudited un-reviewed internally prepared balance sheet as of and for the period ended June 30, 2024 (the "**Financial Statement Date**") attached hereto as **<u>Schedule 3.7(i)</u>** (the "**Financial Statements**"). The Financial Statements are true and correct in all material respects. The Company has no material liabilities or obligations other than as detailed in the Financial Statements and/or in **<u>Schedule 3.7(ii)</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8. <u>Intellectual Property.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company owns and has developed, or has the right to use, free and clear of all liens, charges, claims and restrictions, to all Company all patents, trademarks, service marks, trade names, copyrights, licenses and rights, and all trade secrets, including know-how, inventions, designs, processes, works of authorship, computer programs and technical data and information used and sufficient for use in the conduct of its business as presently conducted (collectively herein "**Intellectual Property**"), without, to the Company's knowledge infringing upon or otherwise acting adversely to the right or claimed right of any other person or entity under or with respect to the foregoing, including without limitation the past and present employees and employers of the past and present employees and consultants of the Company. Neither the Company nor to the knowledge of the Company, any employee or consultant of the Company, has received, or is aware of, any communications alleging that the Company or an employee or a consultant of the Company has violated, or by conducting the Company's business as now conducted or as currently conducted, would violate, patents, trademarks, service marks, trade names, copyrights or trade secrets or other proprietary rights of other persons or entities, nor is the Company aware of any similar violation of its Intellectual Property by others, nor is the Company aware of any basis therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Schedule 3.8(ii)</u>** identifies each (i) funding from any government authority; (ii) facilities of a university, college, other educational institution or research center, which was used in the development of the Intellectual Property owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9. <u>Litigation</u>. There is no action, suit, proceeding or investigation pending or to the Company's knowledge currently threatened against the Company that questions the validity of the Transaction Agreements, or the right of the Company to enter into any such agreements, or to consummate the transactions contemplated hereby or thereby, or that might result, either individually or in the aggregate, in any material adverse changes in the assets, condition, affairs or prospects of the Company, financially or otherwise, or any change in the current equity ownership of the Company. The foregoing includes, without limitation, actions pending or to the Company's knowledge threatened involving the prior employment of any of the Company's employees or consultants, their use in connection with the Company's business of any information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements with prior employers. The Company is not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10. <u>Registration Rights</u>. Except as set forth in the Rights Agreement, the Company is not under any contractual obligation to register any of its presently outstanding securities or any of its securities that may hereafter be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11. <u>Governmental Consent</u>. Except as set forth in **<u>Schedule 3.11</u>**, no consent, approval authorization of or designation, declaration or filing with any governmental authority on the part of the Company is required in connection with the valid execution and delivery of the Transaction Agreements, or the offer, sale or issuance of the Purchased Shares and the Ordinary Shares issuable upon conversion of the Purchased Shares, or the consummation of any other transaction contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12. <u>No Third-Party Consents</u>. Except as set forth in **<u>Schedule 3.12</u>**, the execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, require any consent, approval, order or authorization of any individual, corporation, partnership, joint venture, trust, business association or other entity that has not been, or will not have been obtained by the Company prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13. <u>No Breach</u>. The Company is not in violation or default of any term of its Articles of Association as in affect prior to the Closing, or in any material violation or material default of any provision of any mortgage, indenture, contract, agreement, instrument or contract to which it is a party or by which it is bound or of any judgment, decree, order or writ except where such violation or default is not likely to result in material adverse effect on the Company's business ("**Material Adverse Effect**"). Neither the execution and delivery of the Transaction Agreements, nor compliance by the Company with the terms and provisions hereof and thereof, will result in, with or without the passage of time, a breach or violation of, any of the terms, conditions and provisions of: (a) the Company's Articles of Association as in affect prior to the Closing, or of the Restated Articles, (b) any judgment, order, injunction, decree, or ruling of any court or governmental authority, domestic or foreign, to which the Company is subject, (c) any material agreement, contract, lease, license or commitment to which the Company is a party or to which it is subject, or, to the Company's knowledge (d) applicable law, except where such violation or default is not likely to result in Material Adverse Effect.

Such execution, delivery and compliance will not, with or without the passage of time, (x) give to others any rights, including but not limited to rights of termination, cancellation or acceleration, in or with respect to any material agreement, contract or commitment referred to in this paragraph, or to any of the material properties of the Company, or (y) otherwise require the consent or approval of any person, which consent or approval has not heretofore been obtained, or (z) result in the creation of any lien, charge, or encumbrance upon any assets of the Company. Neither the execution nor delivery of the Transaction Agreements, nor the carrying on of the Company's business as presently conducted or as proposed to be conducted, will conflict with or result in a material breach of the terms, conditions or provisions of, or constitute a default under, any contract, covenant or instrument under which any of the Company's employees or consultants is obligated, which breach or conflict would likely have a Material Adverse Effect on the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14. <u>Interested Party Transaction</u>. Neither the Company nor any officer, director or shareholder thereof, or any affiliate of any such person or entity, has or has had, either directly or indirectly, an interest in any person or entity which (i) owns, directly or indirectly, any debt, more than one percent (1%) equity or other interest or investment in any corporation, association or other entity which is a competitor, lessor, lessee, customer, supplier or advertiser of the Company; (ii) has been involved in any business arrangement or relationship with the Company, which is material to the Company or its business. (iii) has any cause of action or other claim whatsoever against or owes any amount to, or is owed any amount by the Company; (iii) has any interest in or owns any property or right, including Intellectual Property, material to the Company in the conduct of its business as presently conducted and as currently proposed to be conducted; or (v) has lent or advanced any money to, or borrowed any money from, or guaranteed or otherwise become liable for any indebtedness or other obligations of the Company. Except as set forth in **<u>Schedule 3.14</u>**, there are no existing arrangements or proposed transactions between the Company and any officer, director, or holder of share capital of the Company, or any affiliate or associate of any such person. No employee, shareholder, officer, or director of the Company is indebted to the Company, nor is the Company indebted (or committed to making loans or extend or guarantee credit) to any of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15. <u>Regulatory Compliance; Permits</u>. The Company (i) is and at all times has been in material compliance with all laws, statutes, regulations, rules, judgments, ordinances or orders of any court or any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, to which it is subject or which are applicable to its business, operations, employees, assets or properties ("**Laws**"); (ii) holds, and is operating in compliance in all material respects with all franchises, grants, authorizations, licenses, permits, easements, consents, certificates and orders of any governmental authority or self-regulatory body required for the conduct of its business ("**Authorizations**"), and is not aware of and has not received any written notice of adverse finding, untitled letter or other correspondence or notice from any governmental authority alleging or asserting noncompliance with any Laws or Authorizations; (iii) has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority or third party alleging that any product operation or activity is in violation of any Laws or Authorizations, and has no knowledge that any such governmental authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding; (iv) has not received written notice that any governmental authority has taken, is taking, or intends to take action to limit, suspend, modify or revoke any Authorizations and it has no knowledge that any such governmental authority is considering such action; and (v) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct in all material respects on the date filed (or were corrected or supplemented by a subsequent submission). The Company is not in violation or default under any Authorization and\ or under any term or provision of any mortgage, indenture, contract, agreement or instrument to which the Company is a party or by which it or any of its property is bound or of any provision of any state or federal judgment, decree, order, statute, rule or regulation applicable to or binding upon the Company, that the violation of which would have a Material Adverse Effect. The Company is conducting its business in all material respects in accordance with all Laws. The Company is in compliance, in all material respects, with all the applicable filing requirements of the Registrar of Companies. The Company is not registered under the status and has not been declared by the Registrar as a "violating company" within the meaning of Section 362a of the Israeli Companies Law, and it has not received any notice or warning (in writing or otherwise) concerning any intention of the Registrar to register and/or declare the Company as a "violating Company".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16. <u>Grants; Government Incentives</u>. Except as set forth in **<u>Schedule 3.16</u>**, The Company has not received and has not applied for any grants, funds, incentives, benefits (including tax benefits) and subsidies from any governmental authority, regulatory authority or any agency thereof or other non-profit sources, including the National Authority for Technological Innovation of Israel's Ministry of Economy (formerly "Office of the Chief Scientist") ("**Innovation Authority**") and\or the Investment Center, nor were any facilities or resources of a university, college, other educational institution or research center or funding from third parties used in the development of any Intellectual Property owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17. <u>No Insolvency Proceedings</u>. No insolvency proceeding of any character, including, without limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, affecting the Company or any of its assets or properties, is pending or, to the knowledge of the Company, threatened. The Company has not knowingly taken any action in contemplation of, or that would constitute the basis for, the institution of any such insolvency proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18. <u>Anti-Bribery; Export</u>. Neither the Company nor or any director, officer employee, agent or representative of the Company has taken on behalf of the Company any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any government official (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to improperly influence official action or secure an improper advantage; and the Company has conducted its business in compliance with applicable anti-corruption laws, including, for the avoidance of doubt, the Bribery Act 2010 (if applicable). The Company further represents that, if applicable, it has not and does not engage in activities prohibited to persons subject to the jurisdiction of the United States by the United States Trading with the Enemy Act of 1917, as amended, or the United States International Emergency Economic Powers Act of 1977, as amended, or the regulations promulgated under either such Act, and that it neither has its principal place of business in Myanmar or Sudan or generates more than 50% of its revenue from either of these countries and has not and does not, directly or indirectly, engage in activities in or with any jurisdiction prohibited or otherwise restricted under the U.S. law (if applicable) or any applicable law that prohibit bribery, corrupt practices or money laundering, including, for the avoidance of doubt, the Bribery Act 2010 (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19. <u>Disclosure</u>. The Company has provided the Purchasers with all information requested by the Purchasers and reasonably available to the Company. Neither this Agreement (including all of the schedules and exhibits attached hereto), as qualified by the Schedule of Exceptions, contains any untrue statement of a material fact or to the Company's knowledge omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made. There is no material fact or information (individually or in the aggregate) relating to the business, prospects, condition (financial or otherwise), affairs, operations, or assets of the Company that have been requested by the Purchasers and not been set forth in the Transaction Agreements, the schedules and exhibits hereto and thereto.

4. **<u>Representations and Warranties of the Purchasers</u>**.

Each Purchaser hereby represents and warrants to the Company, severally and not jointly, as of the respective Closing, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Organization; Authorization</u>. The Purchaser is duly organized, validly existing and, if applicable, in good standing under the laws of the jurisdiction in which it has been incorporated and has full power and authority to enter into the Transaction Agreements. The Transaction Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable in accordance with their terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>No Conflict; Consents</u>. The execution, delivery and performance by the Purchaser of the Transaction Agreements to which it is a party and the consummation of the transactions contemplated by such Transaction Agreements do not and will not (a) result in any conflict with, or a breach or violation, with or without the passage of time and giving of notice, of any of the terms, conditions or provisions of, or give rise to rights to others (including rights of termination, cancellation or acceleration) under: (i) the governing documents of the Purchaser, if applicable; (ii) any judgment, injunction, order, writ, decree or ruling of any court or governmental authority, domestic or foreign, to which the Purchaser is subject; (iii) any material contract or agreement, lease, license or commitment to which the Purchaser is a party or by which it is bound; (iv) any applicable law; or (b) require the consent, approval or authorization of, registration, qualification or filing with, or notice to any person or any federal, state, local or foreign governmental authority or regulatory authority or agency, on the part of the Purchaser, which has not heretofore been obtained or made or will be obtained or made prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Investment Entirely for Own Account</u>. This Agreement is made with the Purchaser in reliance upon the Purchaser's representation to the Company, which by the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that the Purchased Shares will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not currently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Purchased Shares. The Purchaser has not been formed for the specific purpose of acquiring the Purchased Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Disclosure of Information</u>. The Purchaser has had an opportunity to discuss the Company's business, properties, prospects, technology, plans, management, financial affairs and the terms and conditions of the offering of the Purchased Shares with the Company's management. The Purchaser acknowledges that any projections provided (if any) by the Company are uncertain in nature, and that some or all of the assumptions underlying such projections may not materialize or will vary significantly from actual results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>Investment Experience; Accredited Investor; Non-U.S. Person</u>. The Purchaser is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating and understanding the merits and risks of the investment in the shares purchased hereunder. The Purchaser is either (i) an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act, or (ii) a Non U.S. Person as defined under Regulation S promulgated under the Securities Act. To the extent that the Purchaser is a non U.S. Person, such Purchaser (x) is not acquiring the shares purchased hereunder for the account or benefit of any U.S. Person, (y) is not, at the time of execution of this Agreement, and will not be, at the time of the applicable Closing, in the United States and (z) is not a "distributor" (as defined in Regulation S promulgated under the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <u>No Public Market</u>. The Purchaser understands that no public market now exists for the Purchased Shares, and that the Company has made no assurances that a public market will ever exist for the Purchased Shares. The Purchased Shares have not been and will not be registered under the U.S. Securities Act of 1933 (together with the rules and regulations promulgated thereunder, all as amended, the "**Securities Act**") or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. Purchaser is aware that, except as set forth in the Rights Agreement, the Company is under no obligation to effect any such registration or to file for or comply with any exemption from registration. The sale and issuance of the Purchased Shares have not been registered under the Securities Act by reason of a specific exemption from registration which depends upon, among other things, the accuracy of the Purchaser's representations as expressed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <u>Legends</u>. The Purchased Shares, and (if applicable) any securities issued in respect of or exchange for the foregoing may be notated with the following or a similar legend as well as other legends as may be required by applicable securities laws: "THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER OF SUCH SHARES MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <u>Exculpation among Purchasers</u>. The Purchaser is not relying upon any other Purchaser in making its investment or decision to invest in the Company. Neither of the other Purchasers nor the respective controlling persons, officers, directors, partners, agents, employees or legal or other advisors of any such other Purchasers shall be liable to the Purchaser for any action heretofore taken or omitted to be taken by any of them in connection with the purchase of the shares purchased hereunder.

5. **<u>Conditions of Closing of the Purchasers</u>**.

The Purchasers' obligations to transfer the Purchase Price and to purchase the Purchased Shares at the Closing are subject to the fulfillment of the following conditions, any one or more of which may be waived in whole or in part by the Majority Purchaser(s), at its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Representations and Warranties Correct</u>. The representations and warranties made by the Company in Section 3 hereof, and the representations and warranties made by the Purchasers in Section 4 hereof shall be true and correct when made and shall be true and correct as of the Closing Date, and the Purchasers shall have received a certificate dated as of the Closing and signed on behalf of the Company to that effect as specified in Section 5.8 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Covenants</u>. All covenants, agreements and conditions contained in the Transaction Agreements to be performed or complied with or delivered by the Company, on or prior to the Closing shall have been performed or complied with on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>Restated Articles</u>. The Restated Articles shall have been duly authorized and executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <u>Rights Agreement</u>. The Company, each Purchaser (other than the Purchaser relying upon this condition to excuse such Purchaser's performance hereunder), and the requisite shareholders of the Company to amend the Rights Agreement shall have executed and delivered the Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. <u>Corporate Proceedings</u>. All corporate and other proceedings in connection with the transactions contemplated by the Transaction Agreements and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to the Majority Purchaser(s), and the Majority Purchaser(s) shall have received all such counterpart originals or certified or other copies of such documents as the of the Majority Purchaser(s) may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. <u>Performance</u>. The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. <u>Qualifications</u>. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of any state that are required in connection with the consummation of the transactions contemplated by this Agreement and the Rights Agreement will have been obtained by the Company as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8. <u>Compliance Certificate</u>. The CEO of the Company shall execute on behalf of the Company and deliver to the Purchasers at the Closing a certificate stating that the conditions specified in Section 5.1, 5.2, 5.3, 5.5 and 5.6 have been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9. <u>Issuance of Purchased Shares;</u> The Company shall have taken all actions required for the issuance, at the Closing, of the Purchased Shares.

6. **<u>Conditions of Closing of the Company</u>**.

The Company's obligation to sell and issue the Purchased Shares at the Closing is subject to the fulfillment of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Representations</u>. The representations and warranties made by the Purchasers in Section 4 hereof shall be true and correct as of such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Covenants</u>. All covenants, agreements and conditions contained in the Transaction Agreements to be performed by the Purchasers on or prior to the Closing shall have been performed or complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Rights Agreement</u>. Each Purchaser shall have executed and delivered the Rights Agreement.

7. **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Each Purchaser shall have the right to rely fully upon all representations, warranties and covenants of the Company (the "**Indemnitor**") contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. The Indemnitor shall indemnify each Purchaser against, and hold each Purchaser (including for Losses incurred by its shareholders, limited and general partners, directors and effacers) harmless from all claims, actions, suits, deficiencies, judgments, settlements, damages, expenses, losses, costs, liabilities, and/or other reasonable expenses (collectively, "**Losses**") resulting from, or arising out of, a breach or misrepresentations of any Company's representations, warranties or covenants made in this Agreement, and all actions, suits, proceedings, judgments, costs and legal or other reasonable expenses (collectively, "**Expenses**") or the enforcement of the provisions hereof to the extent that the Purchaser is a prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. If any claim, suit, action or other proceeding to which the indemnity set forth herein applies is brought against a Purchaser, such Purchaser shall give the Company prompt notice of the same (a "**Claims Notice**"). Upon first becoming aware of the circumstances upon which such claim is based, which Claims Notice shall describe in reasonable detail the facts and circumstances upon which the asserted claim for indemnification is based and thereafter use commercially reasonable efforts to keep the Indemnitor duly informed with respect thereto. In the event that such Claims Notice results from a third party claim against the Purchaser, the Purchaser shall upon first becoming aware of the commencement of proceedings by such third party provide the Indemnitor with the Claims Notice and the Indemnitor shall, upon Purchaser's request, assume the defense thereof (at Indemnitor's expense), with counsel reasonably satisfactory to such Purchaser, and the fees and expenses of such counsel shall be at the sole cost and expense of the Indemnitor's. The Purchasers shall have the right to retain its own counsel, at the reasonable expense of the Indemnitor within the indemnification limitations herein, if representation of the Purchaser by the counsel retained by the Indemnitor would be inappropriate due to actual conflicting interests between the Indemnitor and any other party represented by such counsel in such proceeding. Failure of Purchaser to give the Indemnitor prompt notice or to keep it informed as provided herein shall not relieve the Indemnitor of any of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Notwithstanding anything to the contrary contained in this Agreement, other than in the case of fraud, intentional misrepresentation and willful misconduct (A) the Company's aggregate liability under this Section 7 shall be limited to an amount equal to the Purchase Price actually received by the Company, plus reimbursement of expenses (including reasonable legal fees and costs) actually incurred by the Purchasers as evidenced by invoices and receipts, in an amount not to exceed the lower of (i) 10% of the invested amount, and (ii) US$10,000 (the "**Expenses Cap**") and; (B) no claims for indemnification shall be brought unless the aggregate amount of such claim(s) shall exceed US$100,000 (at which point claims may be made for the full amount of any Loss from the "first Dollar"). Notwithstanding anything to the contrary, the representations and warranties of the Company shall survive the execution and delivery of this Agreement and remain in full force and effect until the lapse of nine (9) months from the date of the Closing (the "**Survival Period**"), whereupon such representations and warranties of and the liability of the Company shall expire and be of no further force and effect; and (ii) in no case shall the Company be liable for any incidental, indirect or consequential losses and damages.

8. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed according to the laws of the State of Israel, without regard to the conflict of laws provisions thereof. The parties hereby irrevocably and unconditionally submit to the exclusive jurisdiction of courts in the Tel-Aviv – Jaffa District in respect of any matter arising in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Successors and Assigns</u>. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto (including transferees of any Purchased Shares or Ordinary Shares into which any portion of Purchased Shares have been converted). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Entire Agreement; Amendment</u>. This Agreement and the other documents delivered pursuant hereto at the Closing constitute the full and entire understanding and agreement between the parties hereto with regard to the subjects hereof and thereof. Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Majority Purchaser(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <u>Notices</u>. All notices and other communications required or permitted hereunder shall be in writing and shall be telecopied or mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand or by messenger, addressed to such party's address as set forth below or at such other address as the parties hereto shall have furnished to each other in writing in accordance with this provision:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if to the Purchasers: | **to the address set forth in <u>Exhibit A</u> or <u>Exhibit A-1</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**If to the Company:** | Silentium Ltd. |
|  | 5 Golda Meir St. |
|  | Ness-Ziona, Israel 7403649 |
|  | Attn: Yoel Naor |
|  | E-mail: <u>Yoel@Silentium.com</u> |
|  | with a copy to (which shall not constitute a notice): |
|  | Goldfarb, Gross, Seligman & Co. |
|  | One Azrieli Center, Round Building. |
|  | Tel Aviv 6701101, Israel |
|  | Tel: +972-3- 6074547 |
|  | Fax:+972-3-6074566 |
|  | Attn: Shlomo Farkas, Adv. |
|  | E-mail: <u>Shlomo.Farkas@goldfarb.com</u> |

---

Any notice sent in accordance with this Section 8.4. shall be effective (i) if mailed, seven (7) business days after mailing, (ii) if sent by messenger, upon delivery, (iii) if sent via telecopier, upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business day following transmission and electronic confirmation of receipt (provided, however, that any notice of change of address shall only be valid upon receipt), and (iv) if sent by electronic mail, one day after transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. <u>Delays or Omissions</u>. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. <u>Severability</u>. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that no such severability shall be effective or binding on the parties if it materially changes the economic benefit of this Agreement to any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9. <u>Survival of Warranties</u>. The warranties, representations and covenants of the Company contained in or made pursuant to this Agreement shall survive the Closing and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf of the Purchaser or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10. <u>Expenses</u>. Each party hereto shall pay its own expenses in connection with the registration and preparation of this Agreement the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11. <u>Confidentiality</u>. Each party hereto agrees, that it shall at all times keep confidential and not divulge or make accessible or use any nonpublic material information concerning or relating to the business or financial affairs of the other parties to the Transaction Agreements, to which such party has been or will become privy by reasons relating to the Agreements, to anyone, except (i) to its employees and advisors in such capacity as required to perform its obligations hereunder, (ii) if required by law provided that prior written notice and an opportunity to oppose such disclosure is given, (iii) its limited partners or investors solely on a need to know basis and provided that no confidential information of the Company shall be included in such disclosure, or (iv) with the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12. <u>Waiver of Conflicts</u>. Each party to this Agreement acknowledges that Goldfarb Gross Seligman & Co. ("**Goldfarb**"), outside counsel to the Company, represents certain stakeholders of the Company. The applicable rules of professional conduct require that Goldfarb inform the parties hereunder of this representation and obtain their consent where a conflict of interest exists. The Company and each Purchaser hereby (a) acknowledge that they have had an opportunity to ask for and have obtained information relevant to such representation, including disclosure of the reasonably foreseeable adverse consequences of such representation; and (b) give their informed consent to such representation by Goldfarb in this transaction.

[*Signature pages follow*]

*[Signature page — Silentium - Series C SPA — Company]*

The foregoing Agreement is hereby executed as of the date first above written.

---

| |
|:---|
| **COMPANY:** |
| /s/ Yoel Naor |
| **SILENTIUM LTD.** |
| By: Yoel Naor |
| Title: Chief Executive Officer |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Black Inc. |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$260000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Larry Krauss | /s/ Larry Krauss |
| (signature) | (signature) |
| By: | Larry Krauss |
| Title: | aso |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Terra Venture Partners SCA (in liquidation) |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **233760** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Astorre Modena | /s/ Astorre Modena |
| (signature) | (signature) |
| By: | Astorre Modena |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Terra Venture Partners LP (in liquidation) |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **66240** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Astorre Modena | /s/ Astorre Modena |
| (signature) | (signature) |
| By: | Astorre Modena |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Astorre and Luisa Modena |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **100000** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Astorre and Luisa Modena | /s/ Astorre and Luisa Modena |
| (signature) | (signature) |
| By: | Astorre and Luisa Modena |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Maria Mayer Modena |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **100000** |

---

---

| |
|:---|
| **ID of the individuals / Registration Numbers of corporations** |
| /s/ Maria Mayer Modena |
| (signature) |
| By: |
| Title: |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Sarah Louise Nathan |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **50000** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ SLNathan | /s/ SLNathan |
| (signature) | (signature) |
| By: | SLNathan |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Jacques Spijer |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **50000** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Jacques Spijer | /s/ Jacques Spijer |
| (signature) | (signature) |
| By: | Jacques Spijer |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Simon Haggiag |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$300000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Simon Haggiag | /s/ Simon Haggiag |
| (signature) | (signature) |
| By: | Simon Haggiag |
| Title: | Principal |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Hallfield Holdings Limited |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$300000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Nicholas Pell | /s/ Nicholas Pell |
| (signature) | (signature) |
| By: | Nicholas Pell |
| Title: | Authorised signatory of Mehi River, corporate director |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Batten Trustee Ltd as trustee for Arrow Trust |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$150000.00** |

---

---

| | | |
|:---|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Richard Taylor | /s/ Richard Taylor | /s/ Pravir Tesiram |
| (signature) | (signature) | (signature) |
| By: | Richard Taylor | Pravir Tesiram |
| Title: | Director | Director |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Alan Franco |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$25000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Alan Franco | /s/ Alan Franco |
| (signature) | (signature) |
| By: | Alan Franco |
| Title: | individual investor |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

**PURCHASERS:**

**Terra Group**

ALPHA Beteiligungs and Verwaltungsgesellscaft.m.b.H

---

| | |
|:---|:---|
| By: | /s/ Clemente Corsini |
| Name: | Clemente Corsini |
| Title: | Managing Director |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

**PURCHASERS:**

**Heliant Investment Management Limited, iVentures Asia, Heliant Ventures Ltd, Heliant Ventures II Ltd**

/s/ Benjamin Eli Weiss

**Benjamin Eli Weiss<br> Director**

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Manikandan Natarajan |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **50000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Manikandan Natarajan | /s/ Manikandan Natarajan |
| (signature) | (signature) |
| By: | Manikandan Natarajan |
| Title: |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

**PURCHASERS:**

**Qin Sigang**

---

| |
|:---|
| /s/ Qin Sigang |
| Qin Sigang |
| **Dr. Sigang Qin** |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Haihong China Co., Limited |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **72000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Kim Young Jun | /s/ Kim Young Jun |
| (signature) | (signature) |
| By: | Kim Young Jun |
| Title: | Director |
|  | ![](tm266724d10_ex10-9img01.jpg) |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

**PURCHASERS:**

**Peng Jianhu**

/s/ Peng Jianhu

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| (Anna) Yue Lei Shen |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **870,000 USD** |

---

---

| | | |
|:---|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** | |
| /s/ (Anna) Yue Lei Shen | /s/ (Anna) Yue Lei Shen | &nbsp;&nbsp;&nbsp;Subject to being appointed as the board member for the expert seat position on the Company's board of Directors. |
| (signature) | (signature) |  |
| By: | (Anna) Yue Lei Shen |  |
| Title: | Miss |  |

---

[*Signature page — Silentium - Series C SPA — Purchasers*]

---

| |
|:---|
| **PURCHASERS:** |
| Palisades Capital LLC |
| **(print name of shareholder)** |

---

---

| | |
|:---|:---|
| **Purchase Amount ($)** | **$10000.00** |

---

---

| | |
|:---|:---|
| **ID of the individuals / Registration Numbers of corporations** | **ID of the individuals / Registration Numbers of corporations** |
| /s/ Zev Safran | /s/ Zev Safran |
| (signature) | (signature) |
| By: | Zev Safran |
| Title: | Manager |

---

[*Signature page — Silentium - Series C SPA — SAFE Holders*]

---

| | |
|:---|:---|
| **SAFE Holder:** | **SAFE Holder:** |
| Black Inc. | Black Inc. |
| **(Print Name)** | **(Print Name)** |
| /s/ Larry Krauss | /s/ Larry Krauss |
| (Signature) | (Signature) |
| By: | Larry Krauss |
| Title: | aso |

---

[*Signature page — Silentium - Series C SPA — SAFE Holders*]

---

| | |
|:---|:---|
| **SAFE Holder:** | **SAFE Holder:** |
| Sigang Qin | Sigang Qin |
| **(Print Name)** | **(Print Name)** |
| /s/ Qin Sigang | /s/ Qin Sigang |
| (Signature) | (Signature) |
| By: | Sigang Qin |
| Title: | Dr. |

---

[*Signature page — Silentium - Series C SPA — SAFE Holders*]

**SAFE Holder:** 

**Heliant Investment Management Limited, iVentures Asia, Heliant Ventures Ltd, Heliant Ventures II Ltd**

---

| |
|:---|
| **/s/ Benjamin Eli Weiss** |
| **Benjamin Eli Weiss<br> Director** |

---

## Exhibit 21.1

**Exhibit 21.1**

**<u>Subsidiaries of Silentium Ltd.</u>**

The following table sets forth the name and jurisdiction of incorporation of each of our subsidiaries:

---

| | | |
|:---|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation** | **Percentage of Beneficial Ownership** |
| Silentium (Asia) Limited | Hong Kong | 100% |
| Silentium Acoustic Technology (Shanghai) Co., Ltd. | PRC | 100% |
| Silentium USA Inc. | Delaware | 100% |

---

## Exhibit 23.1

**Exhibit 23.1**

![](tm266724d10_ex23-1img001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the use in this Registration Statement on Form F-1 of Silentium Ltd. of our report dated March 30, 2026, except for note 16, which is dated May 28, 2026, included in the Prospectus. Our report contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

We also consent to the reference to us under the caption "Experts" in the Registration Statement.

---

| | |
|:---|:---|
| Tel-Aviv, Israel | /s/ Ziv Haft |
|  | Certified Public Accountants (Isr.) |
| June 8, 2026 | BDO Member Firm |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Silentium Ltd.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Ordinary Shares, no par value | 457(o) | $19780000.00 | 0.0001381 | $2731.62 |
| Fees to be Paid | 2 | Other | Representative's Warrants | Other |  | 0.0001381 | $0.00 |
| Fees to be Paid | 3 | Equity | Ordinary Shares issuable upon exercise of Representative's Warrants | Other | $1236250.00 | 0.0001381 | $170.73 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $21016250.00  |  | $2902.35  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $2902.35  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Pursuant to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, the ordinary shares, no par value per share ("Ordinary Shares"), registered hereby also include an indeterminate number of additional Ordinary Shares as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions. The registration fee is calculated in accordance with Rule 457(o) under the Securities Act, based on an estimate of the proposed maximum aggregate offering price. Includes the offering price of additional Ordinary Shares that the underwriters have the option to purchase to cover over-allotments, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> In accordance with Rule 457(g) under the Securities Act, because the Ordinary Shares of the registrant underlying Representative's Warrants are registered hereby, no separate registration fee is required with respect to Representative's Warrants registered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> Representative's Warrants are exercisable at a per share exercise price equal to 125% of the public offering price. As estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act, the proposed maximum aggregate offering price of the Representative's Warrants is equal to 125% of $989,000 (which is equal to 5% of 19,780,000).

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|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

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