Document:

Exhibit 10.6

 

PARTNERSHIP
AGREEMENT – FUNCTIONAL FLUIDS 

INK
DEVELOPMENT COLLABORATION

 

THIS
AGREEMENT is made on 21th day of May 2014 (“Commencement Date”) BETWEEN:

 

	(1)	XAARJET
                                         LIMITED (company number 03375961) a company incorporated and registered in England
                                         and Wales, whose registered office is at Science Park, Milton Road, Cambridge
                                         CB4 0XR (“Xaar”);
	 	 
	(2)	P.V.
                                         Nano Cell Ltd. a company whose business address is 8 Hamasger st., P.O.Box 236, Migdal
                                         Ha’Emek, 23100 Israel (“Partner”).

 

RECITALS:

 

	(A)	Xaar
                                         has the expertise, knowledge and ability to undertake certain Services (defined below)
                                         with the objective of issuing a Fluid Approval Certificate for each Product in respect
                                         of which the Service is provided.
	 	 
	(B)	The
                                         Partner wants Xaar to provide, and Xaar agrees to provide the Services to the Partner
                                         upon the terms and conditions of this Agreement.

 

OPERATIVE
TERMS:

 

	1	Definitions

In
this Agreement, unless the context otherwise requires, the following expressions have the following meanings: 

 

	 	“Commencement
                                         Date”	meaning
                the date on which both parties have signed this Agreement;
	 	 	 
		“Complex
                                         Rheology Analysis”	meaning
                                         the rheological characterisation of the Products used to predict jetting performance
                                         and to provide information allowing the Partner to adjust its Products;
	 	 	 
	 	“Confidential
    Information”	meaning
    any Report/s including all information contained within said Report/s as well as any information disclosed by a party to the
    other party (whether in writing, oral, graphic, electronic, by delivery of any samples or in any other form) (including, without
    limitation, samples of materials and products, information relating to inventions, processes, systems, methods, formulae,
    devices, instruments, materials, products, patterns, compilations, programs, techniques, sequences, designs, research or development
    activities and plans or other data, specifications, computer programs, costs of production, prices or other financial data,
    volume of sales, promotional methods, marketing plans, lists of names or classes of customers or personnel, lists of suppliers,
    business plans, business opportunities, or financial statements), that is marked as confidential or proprietary, or if disclosed
    orally or in other intangible form or in any form that is not easily markable, that is reduced to writing and transmitted
    to the other party within thirty (30) days of such oral, intangible or unmarkable disclosure.

 

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		“Fees”	means
                                         the fees payable to Xaar by the Partner under this Agreement as set out in Schedule 2;
	 	 	 
	 	“Fluid
    Approval Process”	means
    the process whereby Xaar tests the Product to check whether the Printhead Warranty in respect of a Printhead can be extended
    to include the use of such Printhead with a Product (as illustrated in Part 1 of Schedule 1);
	 	 	 
	 	“Fluid
    Approval Certificate”	means
    the certificate issued by Xaar to the Partner in respect of a particular Product to confirm that the Product is approved for
    use with a particular Printhead and that the Printhead Warranty in respect of such Printhead has been extended to include
    use with the Product;
	 	 	 
	 	“Force
    Majeure”	means
    any cause preventing any party from performing any or all of its obligations which arises from or is attributable to the acts,
    events, omissions or accidents beyond the reasonable control of the party so prevented, including without limitation any strike,
    lock-out or other form of industrial action, war, riot, civil commotion, terrorism, malicious damage, compliance with law
    or governmental order, rule, regulation or direction, accident, breakdown of plant or machinery, fire, flood, storm or act
    of God;
	 	 	 
	 	“Initial
    Term”	means
    a period of 5 years from the Commencement Date;
	 	 	 
		“Intellectual Property
         Rights”	means
                                         all intellectual property rights throughout the world for the full term of the rights
                                         concerned including any extension, renewal or revalidation, whether or not registered
                                         and whether or not registrable, including without limitation, copyright, database rights,
                                         patents, rights in inventions, know how and confidential and technical information (including
                                         in all materials, products, methods, processes and apparatus), rights in designs, registered
                                         designs, unregistered and registered trademarks (including business and brand names,
                                         domain names, devices and logos) and the right to apply for any of the foregoing anywhere
                                         in the world;
	 	 	 
		“Printhead”	meaning
                                         any Printhead that incorporates Xaar Technology;

 

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	 	“Printhead
    Warranty”	meaning
    the manufacturer’s warranty provided by Xaar in respect of Printheads which are manufactured by or for Xaar, are sold
    as Xaar products and which bear a unique serial number;
	 	 	 
		“Product”	meaning
                                         the Partner’s products as set out in Schedule 2 developed or adjusted pursuant
                                         to this Agreement and intended for use with Printheads utilising and/or looking to utilise
                                         the Xaar Technology;
	 	 	 
		“Report”	meaning
                                         a report provided by Xaar as part of the Service which sets out general recommendations
                                         for adjustments in respect of a particular Product and/or waveform and operating instructions,
                                         where relevant;
	 	 	 
	 	“Sample”	meaning
    a specimen of the completed saleable ink of 50ml in quantity to be provided by partner to Xaar for analysis purposes and/or
    1000ml. of base fluid for material compatibility testing;
	 	 	 
		“Service”	meaning
                                         the service to be provided by Xaar pursuant to this Agreement as described in Part 2
                                         of Schedule 1;
	 	 	 
	 	“Trade
    Mark”	meaning
    the trade mark specified by Xaar and owned by Xaar or one of the Xaar Group Companies;
	 	 	 
	 	“Working
    Hours”	meaning
    9 am to 5 pm GMT time;

 

		“Xaar
                             Group of Companies”	meaning
                                         every company whether a subsidiary and/or a holding company of Xaar or a subsidiary of
                                         any such holding company. For the purpose of this Agreement “subsidiary”
                                         and “holding company” shall have the meanings ascribed to them by section
                                         1159 Companies Act 2006 as amended.

 

	2	Provision
                                         of the Services
	 	 
	2.1	The
                                         Partner may request that Xaar provide the Service in respect of a particular Product
                                         by written notice to Xaar;
	 	 
	2.2	Xaar
                                         will respond to a request from the Partner under clause 2.1 within a reasonable time
                                         confirming the information, which it requires from the Partner and details of the samples
                                         of the Product it requires in order to make a decision as to whether or not it will provide
                                         the Service in respect of a particular Product;
	 	 
	2.3	Once
                                         Xaar has received all of the information and the Sample it requested under clause 2.2
                                         and undertaken an initial fluid screening, the parties will discuss the results of the
                                         screening and Xaar will confirm whether or not it will provide the rest of the Service
                                         in respect of the particular Product;
	 	 
	2.4	If
                                         Xaar is willing to provide the rest of the Service in respect of a particular Product
                                         following the initial fluid screening referred to in clause 2.3 and Partner is willing
                                         to make the required adjustments to the Product, a project plan will be prepared jointly
                                         and the Partner will promptly comply with Xaar’s instructions and supply any further
                                         information and/or Samples as required by Xaar.

 

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	2.5	For
                                         the avoidance of doubt, Partner decides not to change the Product and/or Xaar decides
                                         not to continue with the Services, either Party shall notify the other in writing as
                                         soon as reasonably possible and that shall be taken as notice to terminate. Any other
                                         work commissioned under the terms herein, if any, shall continue as normal and will not
                                         be affected by potential refusal of additional requests. If the Partner makes changes
                                         to its Product and wants Xaar to carry out a repeat Service in respect of the modified
                                         Product, the Partner will make a request to Xaar in writing for a repeat Service, and
                                         Xaar will confirm to the Partner within a reasonable time whether or not it considers
                                         that it is worthwhile providing a repeat Service. For the avoidance of doubt, it will
                                         be in Xaar’s discretion whether or not to provide the Service more than once in
                                         respect of a particular Product, but Xaar will not unreasonably refuse to provide the
                                         Service. In any event, if requested by Partner, Xaar will provide the repeated Services
                                         subject to agreement on the applicable service fee and if the repeated Services are made
                                         for such a fee, no Fees shall be due with respect to said Products.
	 	 
	2.6	Xaar
                                         will use reasonable efforts to provide the Service to the Partner in accordance with
                                         timeframes notified to the Partner; however Xaar will not be liable to the Partner for
                                         failing to meet any timeframes.
	 	 
	2.7	In
                                         providing the Services, Xaar shall not certify the Product to a Printhead which is nearing
                                         its end of life or to a printhead which is not popular for printers used in the field
                                         for the Product. If Xaar notifies an end of life with respect to the Printhead to which
                                         the Product was certified, it shall provide Partner with one year prior notice and will
                                         provide Services without charge in order to certify the Product to a new Printhead.The
                                         Partner shall notify Xaar as soon as is reasonable in the event that the formulation
                                         of a particular Product (including but not limited to the components or portions of the
                                         components of the Product) changes from what it was at the time when a Fluid Approval
                                         Certificate was issued.
	 	 
	2.8	Once
                                         a Fluid Approval Certificate is provided, Xaar will include the Product in its website
                                         and its other documentation, in the same manner it includes other inks sold with its
                                         Printhead.
	 	 
	2.9	Any
                                         Fluid Approval Certificate issued in respect of a particular Product shall only be valid
                                         to the extent that the formulation of the Product (including but not limited to the components
                                         or portions of the components of the Product) does not change from what it was at the
                                         time when the Fluid Approval Certificate was issued. In the event that such a change
                                         occurs, the Fluid Approval Certificate shall immediately and automatically cease to be
                                         effective and shall be revoked by Xaar immediately. Xaar will endeavour to provide Partner
                                         with a written statement where possible within 15 working days from the date of said
                                         revocation. Xaar shall be further entitled to remove reference to the Product as being
                                         approved on the Xaar website/s and in Xaar documentation, unless such modified Product
                                         is approved by Xaar separately and a Fluid Approval Certificate is issued in respect
                                         thereof.
	 	 
	3	Partner
                                         obligations
	 	 
	3.1	The
                                         Partner will:

 

		(a)	co-operate
                                         with Xaar insofar as reasonably possible and in accordance to the terms of this agreement
                                         in all matters relating to provision of the Service;

 

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		(b)	provide
                                         to Xaar all materials, information and a Sample (in the agreed quantity) which are necessary
                                         for Xaar to provide the Service free of charge;
	 	 	 
		(c)	ensure that its
                     employees and any consultants or subcontractors fully co-operate fully with Xaar in relation to the provision
                     of the Service; and
	 	 	 
		(d)	provide any information
                     relating to safe handling of the Products.

 

	4	Payment

 

	4.1	The
                                         Partner shall pay the Fees in accordance with Schedule 2.

 

	4.2	The
                                         Partner shall provide to Xaar within 30 days of the end of each calendar quarter (31
                                         March, 30 June, 30 September and 31 December) a written report setting out the amount
                                         of Fees which are due in respect of the last quarter and details per customer concerning
                                         the total number of units sold in that quarter, and the total consideration received
                                         from such Customer during the reported quarter.

 

	4.3	Unless
                                         otherwise provided all sums set out in Schedule 2 are exclusive of VAT, and the Partner
                                         will pay any applicable VAT in addition to the specified sums.

 

	4.4	Xaar
                                         may charge interest on a daily basis on all outstanding amounts from the relevant due
                                         date, both before and after judgment, until such time as these sums and any interest
                                         accrued are paid in full at the annual rate of three percent (3%) above Barclays Bank
                                         base rate but not exceeding in the aggregate 30% of the delayed amount.

 

	5	Records
                                         and Audit

 

	5.1	The
                                         Partner shall keep current, complete and accurate written records regarding all the Fees
                                         incurred by it under this Agreement for as long as such Fees are payable and for 1 year
                                         thereafter.

 

		5.2	Upon
                                         15 days’ prior written notice, Xaar and/or its appointed representatives may appoint
                                         a single firm of external auditors to inspect, and audit, such records of the Partner
                                         at any time during Working Hours. Xaar agrees to, and shall ensure that any representatives,
                                         abide by any reasonable security procedures imposed by the Partner in conducting the
                                         audit, and will use, and shall ensure that any representatives will use, information
                                         collected in connection with the audit only for the purpose of verifying the information
                                         supplied and the sums payable under this Agreement. For the avoidance of doubt, all information
                                         obtained by Xaar and/or its appointed representatives shall be subject to the provisions
                                         of clause 6 of this Agreement. Xaar shall pay the costs of the audit, unless the audit
                                         reveals material (which for the purpose of this clause shall be taken to mean a figure
                                         of greater than five percent (5%)) underpayment of Fees owed to Xaar under this Agreement,
                                         in which case the Partner will pay the full costs of the auditors. Xaar may exercise
                                         such audit rights no more than once during any 12 month period. In the event of any underpayment
                                         of the Fees due to Xaar, the Partner shall promptly pay the Fees that are shown to be
                                         due. Xaar’s acceptance of any payment shall be without prejudice to any other rights
                                         or remedies of Xaar under this Agreement or applicable law. This right shall expire after
                                         the period stated in clause 5.1. Xaar’s acceptance of any payment shall be without
                                         prejudice to any other rights or remedies of Xaar under this Agreement or applicable
                                         law.

 

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	5.3	The
                                         Partner shall, at its own expense, once in every twelve months at Xaar's reasonable request,
                                         supply free of charge to Xaar one Sample of each Product in respect of which there is
                                         a valid Fluid Approval Certificate in place and Xaar shall be permitted to analyse such
                                         samples solely in order to determine whether there have been any changes in the formulation
                                         of such Products.

 

		(a)	at
                                         any time at Xaar’s request, supply to Xaar, one Sample of any other fluid products
                                         manufactured and/or supplied by the Partner and Xaar shall be permitted to analyse such
                                         samples to determine whether the Partner is in breach of the terms of this Agreement.

 

	6	Confidentiality

 

	6.1	Except
                                         as expressly provided in this Agreement, neither party will at any time with respect
                                         to any Confidential Information which one of them (a "Recipient") receives
                                         from the other (a "Discloser”), without the express prior written consent
                                         of the Discloser, disclose or otherwise make known or available to any person other than
                                         the Discloser or such of the Recipient’s employees as is or becomes necessary for
                                         the purposes of this Agreement or for exercising rights granted under this Agreement,
                                         (or where Xaar is the Recipient, to Xaar Group Companies), any of the Discloser's Confidential
                                         Information. The Recipient will use all reasonable procedures and take all reasonable
                                         steps to safeguard the Discloser's Confidential Information and will ensure that its
                                         officers and employees comply with this clause 6.

 

	6.2	The
                                         obligations of confidentiality in clause 6.1 will not apply to any Confidential Information
                                         which the Recipient can prove by written records:

 

		(a)	was
                                         lawfully disclosed to it without restriction by a third party who did not obtain the
                                         same (whether directly or indirectly) from the Discloser;

 

		(b)	was
                                         lawfully known to the Recipient without restriction on disclosure before the Confidential
                                         Information was imparted by the Discloser;

 

		(c)	is
                                         or becomes public knowledge (through no fault on the Discloser’s part); or

 

		(d)	is
                                         required to be disclosed by legislation, stock exchange rules or regulation or by a court
                                         order of a court of competent jurisdiction.

 

	6.3	Neither
                                         party will disclose to third parties (except to their legal advisers under obligations
                                         of confidentiality) the terms of this Agreement without the consent of the other party
                                         unless such disclosure is required according to any reporting rules applicable or than
                                         shall become applicable to a Party. This agreement maybe part of due diligence review
                                         albeit always subject to confidentiality undertakings by the recipient;

 

	6.4	All
                                         materials, information, apparatus, methods or processes supplied by Xaar to the Partner
                                         will, at all times, be and remain the exclusive property of Xaar, but will be held by
                                         the Partner in safe custody at its own risk and maintained and kept in good condition
                                         by the Partner until returned to Xaar. The aforementioned will not be disposed of or
                                         used other than in accordance with Xaar's written instructions or authorisation and will
                                         be returned to Xaar immediately on request and in any event, on termination or expiry
                                         of this Agreement;

 

	6.5	All
                                         materials, information, methods or processes supplied by the Partner to Xaar will, at
                                         all times, be and remain the exclusive property of the Partner, but will be held by Xaar
                                         in safe custody at its own risk;

 

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Xaar
will not analyse or reverse engineer the chemical composition of any Product.

 

	7	Intellectual
                                         Property Rights and use of the Report

 

	7.1	All
                                         Intellectual Property Rights in any Report provided to the Partner will remain the property
                                         of Xaar.

 

	7.2	The
                                         Report is prepared for the benefit of the Partner and as such the parties agree that
                                         said report should not be disclosed to anyone else other than Partner. Partner shall
                                         have the right to receive a copy thereof and to use said report for the purpose of adjusting
                                         the properties of the Product.

 

	7.3	As
                                         between the Parties, all Intellectual Property Rights in the Products and any modifications
                                         or derivatives thereof are and will remain the property of Partner including modifications
                                         made pursuant to the Report.

 

	7.4	Once
                                         Xaar has issued a Fluid Approval Certificate to the Partner in respect of a Product,
                                         the Partner will (for as long as the Fluid Approval Certificate is valid) apply the Trade
                                         Mark to that Product’s packaging, in addition to the Partner’s trademarks,
                                         before selling or transferring such Product on to any third party. For the avoidance
                                         of doubt, the Partner shall have no Intellectual Property Rights in the Trade Mark or
                                         any goodwill associated with such Intellectual Property Rights and the Partner agrees
                                         and will ensure that any reputation in the Trade Mark accrues to the sole benefit of
                                         Xaar and Xaar Group Companies.

 

	7.5	The
                                         Partner hereby agrees that, once a Fluid Approval Certificate is provided in respect
                                         of a Product, Xaar will include the Product in its website and its other documentation,
                                         in the same manner as it includes other approved inks.

 

	7.6	The
                                         Partner shall only use the Trade Mark in accordance with Xaar’s written instructions
                                         and shall not use (other than where expressly permitted) or seek to register any trade
                                         mark or trade name (including any company name) which is identical to or confusingly
                                         similar with or incorporates the Trade Mark or any other trade name in which Xaar claims
                                         priority rights anywhere in the world.

 

	7.7	The
                                         Partner shall immediately notify Xaar in writing of any improper or wrongful use of the
                                         Trade Mark of which it becomes aware and shall assist Xaar at Xaar’s expense in
                                         taking all necessary steps to protect and defend such rights (without thereby implying
                                         any obligation on the part of Xaar to take such steps).

 

	8	Warranties

 

	8.1	Each
                                         of the parties warrants that it has full power and authority to enter into and carry
                                         out the actions contemplated under this Agreement.

 

	8.2	Xaar
                                         warrants that it will perform the Services with reasonable skill and care.

 

	8.3	Each
                                         Xaar Printhead is warranted to be free from defects in materials and workmanship for
                                         a period no less than 12 months from the date of purchase. Use of a Certified Product
                                         in conjunction with Xaar Printheads shall not adversely impact the warranty on said Printheads.
                                         For the avoidance of doubt, the warranty period shall remain of 12 months commencing
                                         from the date of purchase of the Xaar Printhead and not from the date of purchase and/or
                                         use of a Certified Product.All other conditions or warranties, express or implied, statutory
                                         or otherwise are excluded to the fullest extent permissible by law.

 

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	8.4	Xaar
                                         does not warrant that recommendations contained in any Report provided by it to the Partner,
                                         if followed, will result in improvement to any Product.

 

	8.5	In
                                         respect of materials, information, apparatus, methods or processes supplied by one party
                                         to another under this Agreement, the supplying party will be under no obligation or liability
                                         in respect of, and no warranty condition or representation of any kind is made, given
                                         or to be implied as to, the sufficiency, accuracy or fitness for purpose of such materials,
                                         information, apparatus, methods or processes and the recipient party will in any case
                                         be entirely responsible for the use to which it puts such materials, information, apparatus,
                                         methods or processes.

 

	9	Limitation
                                         of liability

 

	9.1	Nothing
                                         in this Agreement will exclude or restrict the liability of either party to the other
                                         for death or personal injury resulting from the negligent act of one party or for liability
                                         for any fraudulent misrepresentation by a party to this Agreement.

 

	9.2	Subject
                                         to the provisions of clauses 9.1 and 9.3 the total liability of a Party to the other
                                         Party for direct loss in contract, tort or otherwise arising out of or in connection
                                         with this Agreement or the provision of the Services or use of a Report will be limited
                                         to the greater of £50,000 and 100% of the sums paid under this Agreement to Xaar
                                         by the Partner in the preceding 12 months in respect of such Product.

 

	9.3	Subject
                                         to the provisions of clause 9.1, in no circumstances will a Party be liable to the other
                                         Party whether in contract, tort, negligence, breach of statutory duty or otherwise in
                                         respect of loss of profits, revenue, goodwill, business opportunity, loss of or cost
                                         of restoration of data or for use of the Products or any results obtained by use of the
                                         Report or for any loss or damage suffered by a party as a result of a claim brought by
                                         a third party or any indirect, consequential, financial or economic loss or damage, costs
                                         or expenses whatever or however arising out of or in connection with this Agreement or
                                         the Partner’s use of the Report or the provision of the Services.

 

	10	Force
                                         Majeure

 

	10.1	If
                                         any party is affected by Force Majeure it will forthwith notify the other party of the
                                         nature and extent thereof.

 

	10.2	No
                                         party will be deemed to be in breach of this Agreement by reason of any delay in performance,
                                         or non-performance, of any of its obligations hereunder, to the extent that such delay
                                         or non-performance is due to any Force Majeure of which it has notified the other party
                                         within 7 calendar days of its knowledge of such Force Majeure (unless prevented from
                                         doing so). The time for performance of these obligations will be extended accordingly
                                         as may be fair and reasonable in all circumstances, provided always that if the duration
                                         of any such delay or impediment exceeds sixty (60) days, then any party may give thirty
                                         (30) days’ notice to terminate this Agreement.

 

	11	Term
                                         and Termination

 

	11.1	This
                                         Agreement shall commence on the Commencement Date and shall continue for the Initial
                                         Term and thereafter unless or until terminated in accordance with this clause 11.

 

	11.2	either
                                         party may terminate this Agreement, on a minimum of 3 months’ written notice to
                                         the other, to expire on or after the end of the Initial Term; however this Agreement
                                         will continue in force solely in respect of those Products where the Service had already
                                         commenced at the time the written notice was given and had not completed by the end of
                                         the 3 months’ written notice, until the Service has completed.

 

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	11.3	If
                                         Partner decides not to change the Product and/or Xaar decides not to continue with the
                                         Services, either Party shall notify the other and, if no other work carried out under,
                                         the Agreement shall terminate upon written notice of either Party, without further liability
                                         as per provision 11.2. In any event of Termination, the parties shall make full restitution
                                         of all Confidential Information already received from the other party.

 

	11.4	This
                                         Agreement may be terminated immediately on written notice by one party (“the
                                         Terminating Party”) to the other party (the “Defaulting Party”):

 

		(a)	upon
                                         a material or persistent breach of this Agreement by the Defaulting Party and which (in
                                         the case of a breach capable of being remedied) has not been remedied within 30 days
                                         of a written request to remedy the same;

 

		(b)	if
                                         an order is made or a resolution is passed for the winding-up of the Defaulting Party
                                         or an order is made for the appointment of an administrator to manage the affairs, business
                                         and property of the Defaulting Party or a receiver and/or manager or administrative receiver
                                         is validly appointed in respect of all or any of the Defaulting Party’s assets
                                         or undertaking or circumstances arise which entitle the Court or a creditor to appoint
                                         a receiver and/or manager or administrative receiver or which entitle the Court to make
                                         a winding-up or bankruptcy order or the Defaulting Party takes or suffers any similar
                                         or analogous action in consequence of debt;

 

		(c)	upon
                                         a material breach by the Defaulting Party of its confidentiality obligations under clause
                                         6.

 

	12	Effects
                                         of termination

 

	12.1	Any
                                         termination of this Agreement will be without prejudice to any other rights or remedies
                                         either party may be entitled to under this Agreement or at law.

 

	12.2	The
                                         following clauses will survive termination or expiry of this Agreement howsoever caused:
                                         clauses 4 (with respect to Products approved and for as long as the Fluid Approval certificate
                                         is still in effect), 5 (for the period set out in Section 5.1), 6, 7, 8, 9, 12, and 13.

 

	13	General

 

	13.1	The
                                         parties are independent contractors and nothing contained in this Agreement will be construed
                                         to imply a partnership, employer/employee, or principal/agent relationship between Xaar
                                         and the Partner or any of the other’s staff or contractors. The Partner will not
                                         have any right, power or authority to create any obligations, express or implied on behalf
                                         of Xaar either jointly or severally.

 

	13.2	The
                                         terms of this Agreement including the Schedules contain the entire agreement between
                                         the parties with respect to their subject matter, and supersede all previous agreements
                                         and understandings between the parties with respect to it. This Agreement may not be
                                         varied except in writing and signed by a duly authorised representative of each party.

 

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	13.3	The
                                         Contracts (Rights of Third Parties) Act 1999 will not apply to this Agreement, and nothing
                                         in this Agreement will confer or purport to confer on any third party any benefit or
                                         any right to enforce any term of this Agreement or operate to give any third party the
                                         right to enforce any term of this Agreement.

 

	13.4	The
                                         failure to exercise or delay in exercising a right or remedy provided by this Agreement
                                         or by law does not constitute a waiver of the right or remedy or a waiver of other rights
                                         or remedies.

 

	13.5	If
                                         any provision of this Agreement will be held to be unlawful, invalid or unenforceable,
                                         in whole or in part, under any enactment or rule of law, such provision or part will
                                         to that extent be severed from this Agreement and rendered ineffective as far as possible
                                         without modifying or affecting the legality, validity or enforceability of the remaining
                                         provisions of this Agreement which will remain in full force and effect.

 

	13.6	Neither
                                         Party shall be entitled to assign or sub-contract this Agreement nor any of its rights
                                         or obligations hereunder nor to grant sub-licences of any Intellectual Property Rights
                                         such Party is permitted to use under this Agreement, except to its Affiliates, for which
                                         prior notice shall be provided to the other party.

 

	13.7	This
                                         Agreement may be executed in two counterparts, each of which shall be deemed an original,
                                         and both of which taken together shall constitute one and the same instrument.

 

	13.8	Any
                                         notice to be given under this Agreement will be in writing and will be delivered by hand,
                                         sent by first class post or sent by facsimile to the address of the other party set out
                                         in this Agreement or sent by e-mail to the email address of the other party (or such
                                         other address or email address as may have been notified) provided that in the case of
                                         notice served by facsimile or by e-mail, such notice is confirmed by letter posted within
                                         12 hours to the address of the other party. Any such notice or other document will be
                                         deemed to have been served: if delivered by hand - at the time of delivery; if sent by
                                         post - upon the expiration of 48 hours after posting; and if sent by facsimile or by
                                         e-mail - at 9.00 am on the next business day after the facsimile or email was dispatched.

 

	13.9	The
                                         terms within this agreement and any dispute or claim arising out of or in connection
                                         with them or its subject matter or formation (including non-contractual disputes or claims)
                                         shall be governed by and construed in accordance with the laws of England and Wales.

 

In
the event of a dispute of a matter pertaining to these terms, the parties agree to negotiate in good faith to reach a mutually
acceptable settlement. The parties shall attempt to resolve amicably all disputes, controversies or differences which may arise
including at least one face to face meeting between representatives of the parties who are authorized to resolve the matter. If
an amicable settlement cannot be reached, any controversy or claim between or among the parties shall be determined by arbitration.
The arbitration shall be held in London, United Kingdom. The award of the arbitrators shall be final and binding upon the parties
and shall be enforceable in any court of competent jurisdiction. All disputes arising under or in relation to this Agreement shall
be submitted to arbitration under the rules of the London Court of International Arbitration (“LCIA”) in the United
Kingdom in force as from the effective date in which these terms were agreed upon the parties. The matter will be resolved by
one arbitrator appointed in accordance with the LCIA regulations. Notwithstanding the foregoing statement, either party may seek
or obtain a temporary restraining order or preliminary or other injunction in any court of competent jurisdiction in the event
of improper use, disclosure or threatened use or disclosure by the other party of its Confidential Information.

 

    	10

    	 

    

 

AS
WITNESS whereof this Agreement has been entered into by the above parties on the date and year first above written. 

 

	SIGNED
    for and on behalf of

    XAARJET Limited	SIGNED
    for and on behalf of 

    THE PARTNER
	 	 
	Name:
    Alex Bevis	Name:
    Dr. Fernando de la Vega
	 	 
	Position:
    Finance Director	Position:
    CEO
	 	 
	Signature:
    /S/ Alex Bevis             	Signature:
    /S/ Dr. Fernando de la Vega            

 

    	11

    	 

    

 

Schedule
1

 

Part
1 – Fluid Approval Process

 

The
following chart illustrates the Fluid Approval Process:

 

 

    	12

    	 

    

 

Part
2 - Service

 

The
Service consists of the following steps:

 

		●	Xaar
                                         receives a Product and all necessary documentation from the Partner.

 

		●	Xaar
                                         carries out an initial Complex Rheology Analysis of the Product to ascertain suitability.

 

		●	Xaar
                                         carries out the full data measurements required for the Complex Rheology Analysis.

 

		●	Xaar
                                         carries out and reports on the analysis of the relevant data.

 

		●	Where
                                         necessary, Xaar advises the Partner on the nature and scale of changes recommended to
                                         the Product, in which case the Partner may at its discretion make such changes and submit
                                         further samples for Complex Rheology Analysis in accordance with this Agreement.

 

		●	In
                                         the event that the Product satisfies the initial review, the Product enters the Fluid
                                         Approval Process.

 

		●	At
                                         the conclusion of the Fluid Approval Process, a report, and, where appropriate, a waveform
                                         file, and Fluid Approval Certificate are issued and the Product will be listed as approved
                                         on the Xaar website and in Xaar documentation (unless specifically requested not).

 

		●	Following
                                         issuance of a Fluid Approval Certificate from Xaar to the Partner in respect of a Product,
                                         the Partner may then sell and/or use such Product in accordance with the terms of this
                                         Agreement. 

 

    	13

    	 

    

 

Schedule
2

 

Products

 

Nano-metal
particle conductive inks to be used with Xaar Printheads following issuance of Fluid Approval Certificate. 

 

Fees

 

The
Fee shall be agreed on the basis of each ink type submitted. No Fee shall be due with respect to Products sold with non-Xaar Technology
Printheads or if the Fluid Approval Certificate is no longer valid. 

 

1.
Silver Nano-Particle Ink (Reference No):

 

The
Partner shall pay Xaar the Fee detailed below, of the Price of Products sold by the Partner or its Affiliates, as set forth below:
The Fee shall be 2% of the Price per Product received from the date Xaar has issued a Fluid Approval Certificate in respect of
such Product until the cumulative value of the fees received by Xaar exceeds £50,000.

 

Once
the cumulative value of the fees received by Xaar exceeds £50,000 the Fee shall become 1% of the Price per Product sold
where Xaar has issued a Fluid Approval Certificate.

 

Once
the cumulative value of the Fees received by Xaar with respect to all Products exceeds £1,000,000 both parties agree to
review the percentage payable in the light of the prevailing business conditions. 

 

“Price”
shall mean the invoice price for the Product in question in an arm’s length transaction less the following:

 

(a)
customary trade, quantity, or cash discounts to the extent actually allowed and taken; (a) amounts repaid or credited by reason
of accepted and justifiable rejection or return; and (b) transport, freight and value added tax and other duties and taxes assessed
directly on sales to the extent identified on the invoice;

 

(c)
sales tax or other value added tax invoiced;

 

(d)
any cost or expense after the ex-works point

 

(e)
bad or doubtful debt, being amounts due for outstanding invoices not paid within 6 months of their due date.

 

Excluded
Customers

 

No
Fees shall be paid with respect to Products sold to Schmidt. For the avoidance of doubt said exclusion should be limited to
inks sold for the Schmid Nanojet printer.

 

The
Partner shall pay the Fees quarterly in arrears. Xaar shall issue an invoice in respect of the relevant Fees to the Partner quarterly,
based on the Fee report received from Partner.

 

The
Partner shall pay the Fees within 30 days of the date of Xaar’s invoice.

 

 

14Exhibit 10.7

SIDE AGREEMENT

This Side Agreement (“Letter”)
is entered into as of July 20, 2014, by and between P.V. Nanocell Ltd., an Israeli company (“Company”),
and IP Bank International (Suzhou) Co., Ltd. (“IPB”).

Background: The Parties desire
to set forth their understanding regarding IPB’s consent to convert its authorized and outstanding Preferred Shares of the
Company into Ordinary Shares (at a conversion rate of 1:1), at the Initial Closing of the Offering (as defined below) and contingent
thereon, as further detailed in the Written Resolution of the Shareholders dated July 20, 2014 and the Termination Agreement of
even date, attached hereto as Annex A (“Termination Documents”).

Capitalized terms used but not
otherwise defined in this Agreement, shall have the meanings ascribed to them in the Termination Documents.

	1.	This Letter shall become effective at the Initial Closing of the Offering and contingent thereon.
The term “Offering” shall mean a private placement of Ordinary Shares of the Company, which include an investment
of a minimum aggregate amount of US $3,000,000 and a maximum of US $4,000,000, excluding certain amounts raised by the Company
under the Series 2 Convertible Notes, in consideration for Ordinary Shares of the Company and warrants to purchase Ordinary Shares
of the Company, where the exercise price of the warrants and the purchase price of the Ordinary Shares sold in the Offering, reflects
a pre money valuation of at least US $18,000,000 (the “Pre-Approved Expected Terms”). If the Initial Closing
is not consummated by December 31, 2014, this Letter shall expire.
	 	 
	2.	Concurrently with or Immediately prior to the Initial Closing of the Offering on terms not less
favorable to the Company and IPB than the Pre-Approved Expected Terms and contingent thereon, 161,660 Preferred B-2 Shares held
by IPB, shall automatically convert into 161,660 Ordinary Shares, in accordance with the Transaction Documents.
	 	 
	3.	Following the above conversion and contingent thereon, the Company will issue to IPB a capital
note at the amount of US $100,000, entitling IPB to receive from the Company the face value of the note against its redemption,
upon the occurrence of a Trigger Event.

 

    	1

    	 

    

 

For this purpose, a "Trigger
Event" shall mean – (i) an initial public offering of the Company's Ordinary Shares in a public offering pursuant
to a registration statement under the United States Securities Act of 1933 (the “Securities Act”), as amended,
or any equivalent law of another jurisdiction, in any locality, with a fully diluted pre-offering valuation of the Company of no
less than US$70,000,000 and with net proceeds to the Company of no less than US$10,000,000 (“Qualified IPO”);
(ii) an equity funding of USD 6,000,000 or more in one transaction or series of related transactions (excluding the funding to
be raised in the Offering and the conversion of any amounts under the Company’s Series 2 Convertible Notes); or (iii) M&A
Event. The term “M&A Event” shall mean (i) any event of consolidation, merger or reorganization of the Company,
in one transaction or series of related transactions, following which holders of the majority of the Company’s Ordinary Shares
outstanding immediately prior to such transaction or series of related transactions, hold less than 50% of the issued and outstanding
shares of the entity surviving such transaction or series of related transactions or an entity controlling such surviving entity,
provided that in connection with a consolidation or merger with another entity where shareholders of the Company are also members
or holders of securities of such other entity, the securities of such other entity and/or the securities of the Company and/or
the merged entity, issued in consideration or exchange for the securities of such other entity which are issued to or held by a
shareholder of the Company, shall be deemed, for the purposes of this Subsection (i), not to be held by a shareholder of the Company;
or (ii) the sale or transfer by the Company of all or substantially all of its assets for cash or other consideration, or licensing
(excluding business licenses granted in the ordinary course of business) of all or substantially all of the intellectual property
of the Company or sale of all or substantially all of the Company's issued and outstanding share capital, to any other entity or
person, other than a wholly-owned subsidiary of the Company.

 

		4.	In addition, at the Initial Closing of the Offering, the Company shall issue to IPB, a warrant
to purchase 16,166 Ordinary Shares of the Company, in the form attached hereto as Annex B (the "IPB Warrant"),
at an exercise price per share of USD 6.804. If the price per share paid by the new investors participating in the Offering shall
be lower than USD 10.70, the exercise price of the IPB Warrant shall be proportionally down-adjusted (e.g. – if the Offering
price is USD 9.00 per share, the exercise price of the IPB Warrant will be USD 5.72 per share). The exercise price of the IPB Warrant
will be further adjusted in the event of recapitalization - share splits, share dividends etc. The IPB Warrant shall include a
cashless exercise option.

 

The IPB Warrant shall be exercisable
until the earlier of: (i) Qualified IPO; or (ii) an M&A Event, and shall expire if not so exercised, subject to prior notice
from the Company to IPB concerning such imminent expiration. IPB will be allowed a conditional exercise, conditioned upon the closing
of the M&A Event.

 

		5.	As part of the Offering terms, the Company expects to be required to file a registration statement
on F-1 under the Securities Act with respect to the resale of the Ordinary Shares acquired in the Offering, and to use its commercially
reasonable efforts to have such registration statement declared effective.

 

In the event that the Company
does not file the registration statement or if such registration statement is not declared effective within 12 months of the final
Closing of the Offering, the Company will issue to IPB additional warrants to purchase Ordinary Shares in a number equal to 2%
of IBP Warrant Shares, for each 30 day period that the registration statement is not declared effective following the expiration
of such 12 month period, up to a maximum number equal to 10% of IPB Warrant Shares. Such warrants shall have the same terms and
exercise price as the IPB Warrant.

 

    	2

    	 

    

 

		6.	Until such time as both the Company’s registration statement pursuant to the Securities Act
is declared effective and the Company’s Ordinary Shares are approved for quotation or listing on a stock exchange or market
quotation system in the United States (or foreign equivalent), in the event that the Company raises equity investments, IPB shall
have a pre-emptive right to participate in such new issuance of equity securities of the Company, so as to maintain its pro rata
share in the Company as it were prior to the new issuance (the “IPB Preemptive Right”). For this purposes, the
pro rata share of IPB will be the ratio between the number of equity securities owned by IPB immediately prior to the issuance
of the said equity securities (on an as converted basis) and the total number of outstanding shares of the Company immediately
prior to the issuance of the said equity securities (on an as converted basis).

 

In order to enable
IPB to exercise its Preemptive Right, the Company shall give IPB a written notice describing the type of equity securities, their
rights and their price and the terms upon which the Company offered the same (the

“Notice”). IPB shall have 21 days following the Notice, by giving an irrevocable written notice to the Company,
stating the quantity of equity securities to be purchased by IPB – up to its pro rata share - at the price and upon the
terms specified in the Notice. For the avoidance of doubt, upon amendment in the terms, the Company shall issue to IPB a new Notice,
unless such amendment is insignificant. IPB shall have no right to over-allotment participation. Foe the avoidance of doubt the
Company may provide the Notice to IPB after such issuance of new securities.

IPB Preemptive Right shall
not be applicable to: (i) the issuance or sale of securities (or options therefore) to employees, directors, consultants and
finders pursuant to a stock incentive program, agreement or arrangement approved by the Board where the primary purpose is not
to raise additional equity capital for the Company; (ii) the sale of equity securities in any public offering; (iii) the issuance
of securities in connection with an M&A Event; (iv) the issuance of securities to a Strategic Partner, provided that such issuance
does not exceed 5% of the share holdings in the Company on a fully diluted basis. A "Strategic Partner" means any entity
that the Company expects to have a substantial business relationship with, through cooperation in research and development, manufacturing
or distribution of products and/or other enhancement of business activities; provided that the Board determines, by a majority
vote, prior to the issuance, that such an entity is a Strategic Partner.

IPB Preemptive Right shall
expire immediately prior to the consummation of an initial public offering of the Company's shares in a public offering pursuant
to a registration statement under the Securities Act, as amended, or any equivalent law of another jurisdiction in any locality
(“IPO”) or an M&A Event. There shall be no Pre-emption right on the IPO or the M&A Event itself.

 

    	3

    	 

    

	7.	The Company shall not give better terms with respect to the conversion of the preferred shares,
to its other existing shareholders, without offering them to IPB.
	 	 
	8.	This Letter constitutes valid and binding agreement of the Company and IPB, enforceable against
them in accordance with its terms.  This Letter may be executed in counterparts which, when taken together, constitute one
and the same agreement.  This Letter shall be governed under the laws of the State of Israel without regard to the
principles of conflict of laws and any dispute arising hereunder shall be subject to the exclusive jurisdiction of the courts of
the Tel Aviv – Jaffa District. This Letter replaces any prior versions hereof.

 

IN WITNESS WHEREOF and
intending to be legally bound hereby, the parties have duly executed this Agreement as of July 20, 2014.

 

	/S/ Dr. Fernando de la Vega	 	/S/ Amit Gal-Or
	P.V. Nanocell Ltd.	 	IP Bank International (Suzhou) Co., Ltd.

  

    	4

    	 

    

 

Annex A

CAPITAL NOTE

	 	 	Date of Issuance
	USD 100,000	 	 ________ __, 201_

 

P.V.
Nano Cell Ltd., an Israeli company (the “Company”), hereby promises to pay to the order of IP Bank International
(Suzhou) Co., Ltd. (“IPB”), the sum of one hundred thousand US dollars ($100,000) (the “Note Amount”),
in connection with the Side Agreement by and between the Company and IPB, dated as of July 20, 2014 (the “Side Agreement”),
all pursuant to the terms and conditions of this general unsecured capital note (this “Note”).

 

Capitalized terms used but not
otherwise defined in this Note, shall have the meanings ascribed to them in the Side Agreement.

 

1.                 
Payment. the Note Amount shall be paid by the Company to IPB, within 14 days following the consummation of
the closing of a Trigger Event (as such term is defined in Section 3 to the Side Agreement), upon surrender of this Note to the
Company. Payment of the Note Amount shall be made in lawful money of the United States of America, at the principal office of the
Company or at such place as may be designated in writing by IPB. The Note Amount shall not bear interest.

 

2.                 
Miscellaneous. This Note, and the obligations and rights of the Company hereunder, shall be binding on and
inure to the benefit of the Company, IPB, and their respective heirs, successors, and assigns. This Note shall be governed by,
and construed in accordance with the laws of the State of Israel, without regard to its conflict of law rules. Any dispute arising
under or in relation to this Note shall be resolved in the competent court in Tel-Aviv, and each of the parties hereby submits
irrevocably to the jurisdiction of such court. This Note embodies the entire agreement and understanding of the parties hereto
with respect to the subject matter hereof, and it supersedes all prior agreements, arrangements, understandings and undertakings,
written or oral, relating to the subject matter hereof, if any. This Note may not be modified or amended except with the written
consent of the Company and IPB. This Note may be executed in two counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 

 

	Agreed and Accepted:	 	P.V. Nano Cell Ltd.
	 	 	 
	 	 	 
	IP Bank International (Suzhou) Co., Ltd. (“IPB”)	 	
	 	 	 
	By:____________________________	 	By:____________________________
	 	 	 
	Title:__________________________	 	Title:__________________________

  

    	5

    	 

    

 

Annex B

 

P.V. NANO CELL LTD.

 

(the “Company”)

 

WARRANT TO PURCHASE ORDINARY
SHARES

 

P.V. Nano Cell Ltd.,
an Israeli Company (the “Company”) hereby grants to IP Bank International (Suzhou) Co., Ltd. (the
“Holder”), the right to purchase from the Company the number of Ordinary Shares of the Company, nominal value
NIS 0.01 (the “Ordinary Shares”) specified below (the “Warrant”), subject to the terms and
conditions set forth below, effective as of ___________ __, 201_ (the “Effective Date”).

 

Capitalized terms used but not
otherwise defined in this Warrant, shall have the meanings ascribed to them in the Side Agreement by and between the Company and
the Holder, dated as of July 20, 2014 (the “Side Agreement”).

 

		1.	Number of Ordinary Shares Available for Purchase

This Warrant
may be exercised to purchase 120,000 Ordinary Shares of the Company, at an exercise price per each Ordinary Share as set
forth in Section 2 below (the “Warrant Shares”).

 

		2.	Exercise Price

The exercise
price for each Warrant Share purchasable hereunder shall be equal to USD 0.917 If the price per share paid by the new investors
participating in the Offering shall be lower than USD 1.443, the exercise price of the IPB Warrant shall be proportionally down-adjusted
(e.g. – if the Offering price is USD 1.212 per share, the exercise price of the IPB Warrant will be USD 0.771 per share)
(the “Exercise Price”). The Exercise Price shall be subject to adjustments under Section 5 of this Warrant.

 

		3.	Term

This Warrant
may be exercised, until the earlier of: (i) Qualified IPO; or (ii) an M&A Event (as such terms are defined in the Side
Agreement), and shall expire if not so exercised, subject to 30 day prior notice from the Company to IPB concerning such imminent
expiration (the “Expiry Date”). IPB will be allowed a conditional exercise, conditioned upon the closing of
the M&A Event, in accordance with Section 4(c) below.

 

		4.	Exercise of Warrant

This Warrant may
be exercised in whole or in part on one or more occasions prior to the Expiry Date. The Warrant may be exercised by the surrender
of the Warrant to the Company at its principal office together with the Notice of Exercise annexed hereto duly completed and executed
on behalf of the Holder. 

 

    	6

    	 

    

 

If this Warrant
is exercised in part, this Warrant must be exercised for a number of whole Warrant Shares, and the Holder is entitled to receive
a new Warrant covering the number of Warrant Shares in respect of which this Warrant that has not been exercised. Should this Warrant
or any part of it not be exercised in accordance with the aforementioned terms prior to the Expiry Date, the Warrant or the un-exercised
part of it (as the case may be) shall expire and be of no force or effect. Up to one week following the exercise of this Warrant,
the Company will issue a certificate or certificates in the name of the Holder for the Warrant Shares to which the Holder shall
be entitled.

 

a.            
Payment of Exercise Price. The Notice of Exercise must be accompanied by payment in full of the amount of the aggregate
Exercise Price of the Warrant Shares being purchased upon such exercise in immediately available funds. The Exercise Price may
be paid by cash, bank check or wire transfer.

 

b.             Net Exercise Election. In lieu of exercise as provided in Subsection (a) above, the Holder may elect to convert all
or a portion of this Warrant, without the payment by the Holder of any additional consideration, by surrendering this Warrant to
the Company, into up to the number of Warrant Shares that is obtained under the following formula:

 

X = Y (A-B)

         A

 

	 	Where: 	X =	the number of Warrant Shares to be issued to the Holder pursuant to this Subsection (b).
	 	 	 	 
	 	 	Y =	the number of Warrant Shares the Holder elects to exercise on net exercise basis, pursuant to this Subsection b.
	 	 	 	 
	 	 	A =	the Fair Market Value (as defined below) of one Warrant Share at the time the net exercise election is made pursuant to this Subsection
(b).
	 	 	 	 
	 	 	B =	the Exercise Price.

 

The term Fair Market Value
shall be defined as follows:

 

		i.	If the Company’s shares are listed on a national securities exchange or are quoted on the
National Association of Securities Dealers, Inc., Automated Quotation or National Market System (Nasdaq/ NMS), or similar quoting
system on which shares of the Company are registered, then the average of the closing or last sale price, respectively, reported
for the 5 (five) trading days prior to the exercise date;

 

		ii.	If the Company’s shares are not listed on a national securities exchange or are not quoted
on Nasdaq/NMS or similar quoting system on which shares of the Company are registered, but are traded in the over-the-counter market,
then the average of the mean of the bid and ask prices as reported for the 5 (five) trading days prior to the exercise date;

 

    	7

    	 

    

 

		iii.	If the exercise date is the date of the closing of an IPO, then the public offering price (before
deduction of underwriter’s discounts or commissions) in such offering;

 

		iv.	If the exercise date is an M&A Event, Liquidity in which shareholders of the Company receive
payment for the transfer of shares held by them, then the highest price at which shares of the same class as the Warrant Shares
are purchased within the framework of the M&A Event;

 

		v.	In any other event, as determined in good faith in a reasoned written resolution of the Board of
Directors of the Company.

 

c.                  
Conditional Exercise. In any connection with an M&A Event or a Qualified IPO (as such terms are defined in the
Side Agreement), such exercise may be made conditional upon the completion of such transaction.

 

		5.	Adjustment of Exercise Price and Number of Warrant Shares

The number and kind of
shares 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:

 

a.          Adjustment for Shares Splits and Combinations. If the Company at any time or from time to time effects a subdivision
of its outstanding Shares, the number of Warrant Shares issuable upon exercise of this Warrant immediately before the subdivision
shall be proportionately increased, and conversely, if the Company at any time or from time to time combines the outstanding Shares,
the number of Warrant Shares issuable upon exercise of this Warrant immediately before the combination shall be proportionately
decreased. Any adjustment under this Subsection (a) shall become effective at the close of business on the date the subdivision
or combination becomes effective.

 

b.          Adjustment for Certain Dividends and Distributions. 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 Shares, then and in each such event the number of Warrant 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 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 issued and outstanding immediately prior to the time of such issuance or the close of business
on such record date; provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution
is not fully made on the date fixed thereof, the number of Warrant Shares issuable upon exercise of this Warrant shall be recomputed
accordingly as of the close of business on such record date and thereafter the number of shares of Shares issuable upon exercise
of this Warrant shall be adjusted pursuant to this Subsection (b) as of the time of actual payment of such dividends or distributions.

 

    	8

    	 

    

 

c.          Adjustment
for Reclassification, Exchange and Substitution. If the Warrant Shares issuable upon the exercise of this Warrant are
changed into the same or a different number of shares of any class or classes of shares, whether by recapitalization, reclassification
or otherwise (other than a subdivision or combination of shares or shares dividend or a reorganization, merger, consolidation
or sale of assets, provided for elsewhere in this Section), then and in any such event the Holder shall have the right thereafter
to exercise this Warrant into the kind and amount of shares and other securities receivable upon such recapitalization, reclassification
or other change, by holders of the number of shares of Shares for which this Warrant might have been exercised immediately prior
to such recapitalization, reclassification or change, all subject to further adjustment as provided herein and under the Company’s
Articles of Association.

 

d.          Reorganization,
Mergers, Consolidations or Sales of Assets. If at any time from time to time there is a capital reorganization of the
Company’s Shares (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided
for elsewhere in this Subsection) or a merger or consolidation of the Company with or into another corporation, or the sale of
all or substantially all of the Company’s properties and assets to any other person, then, as a part of such reorganization,
merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to receive upon exercise
of this Warrant, the number of shares or other securities or property of the Company, or of the successor corporation resulting
from such merger or consolidation or sale, to which a holder of Shares deliverable upon conversion would have been entitled on
such capital reorganization, merger, consolidation or sale. In any such case (except to the extent any cash or property is received
in such transaction), appropriate adjustment shall be made in the application of the provisions of this Subsection and the Company’s
Articles of Association with respect to the rights of the Holder after the reorganization, merger, consolidation or sale to the
end that the provisions of this Subsection and the Company’s Articles of Association (including adjustment of the number
of shares of Shares issuable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent to
the provisions hereof as may be practicable.

 

e.          Other
Transactions. If at any time the Company shall issue shares to its shareholders as a result of a split-off, spin-off or
the like, then the Company shall give the Holder written notice by registered or certified mail, postage prepaid, of the date
of which such split-off, spin-off or the like shall take place. Such notice shall be given at least 14 (fourteen) days prior to
the action in question and not less than 14 (fourteen) days prior to the record date in respect thereto.

 

f.          
Adjustment of Warrant Exercise Price. Upon each adjustment in the number of Warrant Shares purchasable hereunder,
the Warrant 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.

 

g.          Adjustment Certificate. When any adjustment is required to be made in the Warrant Shares or the Purchase
Price pursuant to this Section 5, the Company shall promptly mail to the Holder a certificate setting forth (i) a brief statement
of the facts requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of shares
or other securities or property into which this Warrant shall be exercisable after such adjustment.

 

    	9

    	 

    

 

		6.	Reservation of Shares

The Company
will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such Warrant
Shares and other shares, securities and property, as from time to time shall be issuable upon the exercise of this Warrant.

 

		7.	Mailing of Notices

Any notice
required or permitted pursuant to this Warrant shall be in writing and shall be deemed sufficient upon receipt, when delivered
personally or sent by courier, overnight delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited
in the regular mail, as certified or registered mail (airmail if sent internationally), with postage prepaid, addressed (a) if
to the Holder, to the address of the Holder most recently furnished in writing to the Company and (b) if to the Company, to
the address set forth below or subsequently modified by written notice to the Holder.

 

		8.	General

This Warrant
certifies that, at any time from the date hereof and until the Expiry Date, the Holder is entitled to subscribe for and purchase
any part of the Warrant Shares for the price set above, at the Exercise Price. This Warrant may not be assigned or transferred
by the Holder except for: (i) in the event of sale by the Holder of all of the Holder’s shares in the Company, in which case
the Holder may transfer this Warrant to the purchaser of the Holder’s Shares by providing the Company with a written notice.
Upon receiving such written notice, if so requested, the Company, as promptly as practicable, shall deliver to the Holder one or
more replacement Warrant certificates on the same terms and conditions as this Warrant for delivery to the transferees (ii) an
assignment or transfer to the Holder’s affiliates.

 

Until this
Warrant is exercised (or any part thereof), the Warrant and the Warrant Shares represented hereunder do not entitle the Holder
hereof to any rights as shareholder of the Company.

 

Any taxes,
charges, expenses or fees relating to the exercise of this Warrant and/or the sale of the Warrant Shares shall be payable by the
Holder and the provision for such taxes shall be made to the satisfaction of the Company prior to any exercise, sale or other disposition
made with respect to the Warrant and/or the Warrant Shares.

 

The Warrant Shares which
may be purchased hereunder may be acquired for investment purposes only and will not be registered under the securities laws of
any country. This Warrant may not be exercised and the Warrant Shares may not be resold or offered for sale in the absence of
such registration or an opinion of counsel satisfactory to the Company and its counsel that such registration is not required
under applicable laws. The Warrant Shares which may be purchased hereunder will be subject to certain rights of first refusal
and other provisions as set forth in the Company’s Articles of Association.

 

    	10

    	 

    

 

Given in Israel, this __________
__, 2014

_______________________________

P.V. Nano Cell Ltd.

 

Confirmed and Accepted:

 

_____________________________

 

IP Bank International (Suzhou) Co.,
Ltd.

 

By:_______________________

 

Title:_____________________

    	11

    	 

    

 

NOTICE OF EXERCISE

 

To:

 

	1.	The undersigned hereby:

		a.	____ elects to purchase _________ shares of Ordinary Shares of P.V. Nanocell
Ltd., pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price for such shares in full.
	 	 	 
		b.	____ elects to convert such Warrant with respect to ________ shares of Ordinary
Shares subject to the Warrant in accordance with Section 4(b) of the Warrant.

	2.	In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of
Ordinary 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 of Ordinary Shares except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws.

 

	3.	Please issue a certificate representing said shares of Ordinary Shares in the name of the undersigned.

 

		4.	Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of the
undersigned.

 

	 	 	 
	 	 	
	(Date)	 	(Print Name)
	 	 	 
	 	 	 
	 	 	(Signature)

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