Document:

Exhibit 4.2

 

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERTO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

WARRANT TO PURCHASE ORDINARY SHARES

 

P.V. Nano Cell Ltd., an Israeli
Company (the “Company”) hereby grants to GTRIMG Investments 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”)
calculated as described below, subject to the terms and conditions set forth below, at any time on or before the expiration of
the Term (as defined below). This Warrant is one of a series of warrants (collectively with this Warrant, the “Warrants”)
issued or to be issued by the Company pursuant to that certain Convertible Loan Agreement (the “CLA”), dated
October 10, 2018, among the Company and the Holder.

 

Definitions. Capitalized terms used and
not otherwise defined herein shall have the meanings set forth in the CLA.

 

		1.	Number of Ordinary Shares Available for Purchase. 

 

This Warrant
may be exercised to purchase such number of Company’s Ordinary Shares not to exceed a number that is equal to US$5 million (assuming
provision of the entire Additional Principal under the CLA, and pro rata share in the event not all of the Additional Principal
was provided) divided by the exercise price per each Ordinary Share is as set forth in Section 2 below (the “Warrant
Shares”) (i.e. upon delivery to the Company of US$1 million out of the total Additional Principal amount, the Warrant
Shares total exercise amount shall be US$ 2.5 million). This Warrant will enter into effect only following and conditioned
upon the transfer to the Company by the Holder of the Additional Principal amount, or part thereof, pursuant to the terms of the
CLA, during the Additional Principal Period as defined in the CLA (“Effective Date”).

 

		2.	Exercise Price

 

The exercise
price for each Warrant Share purchasable hereunder shall be calculated as follows, but in no event shall fall below US$0.17 (the
“Exercise Price”):

 

“EP”
– shall mean the Exercise Price

 

“EPR”
– shall mean the Exercise Price Ratio

 

“Closing
NAV” – shall mean the Total Shareholders’ Equity, as recorded in the most recent audited financial statements of
the Company reported by the Company prior to the Closing Date (as defined in the CLA), i.e. [USD $, 2,802,720 as per the 2017 audited
financial statements].

 

     

     

    

 

“Exercise
NAV” – shall mean the Total Shareholders’ Equity, as recorded in the most recent audited financial statements of
the Company reported by the Company prior to the notice of exercise.

 

It is agreed that the funds transferred
pursuant to the CLA and the exercise of this Warrant shall not have any effect on the Exercise NAV and any such effect shall be
disregarded.

 

“NI”
– additional cash equity invested in the Company after the Closing Date (as defined in the CLA) and prior to the Exercise
Date which was included in the most recent audited financial statements of the Company reported by the Company prior to the Notice
of Exercise, provided that any changes in the Shareholders Equity due to other transactions which are not cash investments, i.e.
changes due to merger, share swap, sale of assets etc. shall not be deducted under the NI.

 

EPR
= (Exercise NAV – NI) / Closing NAV

 

And

 

EP=
$0.27 X EPR (but not less than US$0.17)

 

It is hereby
clarified that the Exercise Price may be reduced in the event of an Event of Default Special Penalty as described in the CLA.

 

		3.	Term

This Warrant
may be exercised, in whole or in part, during the period beginning on the Effective Date hereof and ending on the earlier of:
(i) the Warrant Exercise Period; or (ii) an IPO (as such terms are defined in the CLA) (the “Warrant Term”).
If the Additional Principal is not provided to the Company during the Additional Principal Period, this Warrant shall expire and
become null and void.

 

		4.	Exercise of Warrant

This Warrant
may be exercised in whole or in part on one or more occasions during the Warrant Term. The Warrant may be exercised by delivery
to the Company of a duly executed copy of the Notice of Exercise Form enclosed hereto as Annex A,
with exercise date which shall be no earlier than 7 days from the date of receipt of notice by the Company. No fractions
of shares will be issued. The number of Ordinary Shares issued shall be rounded to the nearest whole number.

 

Notwithstanding
anything herein to the contrary (although the Holder may surrender the Warrant to, and receive a replacement Warrant from, the
Company), 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 three (3) business 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
three (3) business days of delivery of such notice.

 

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		a.	Exercise for Cash. This warrant may only be exercised for cash. To exercise for cash, 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 (check or wire transfer).

 

		b.	Issuance of Shares on Exercise. The Company agrees that the Warrant Shares so purchased
shall be issued as soon as practicable thereafter, and that the Holder shall be deemed the record owner of such Warrant Shares
as of and from the close of business on the date on which this Warrant shall be surrendered, together with payment in full as required
above.

 

		c.	Conditional Exercise.In connection with a sale of all or substantially all of the Company’s
assets or shares to, or the merger or consolidation of the Company with or into, another person or entity or the initial public
offering of the Company’s shares, such exercise may be made conditional upon the completion of such transaction. The
Company undertakes to provide prior written notice to the Holder of any such event detailing all relevant information at least
thirty (30) days prior to such event subject to execution of a non-disclosure agreement with respect to any nonpublic information.

 

		d.	Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or
in part, the Company shall, as soon as practicable thereafter instruct its transfer agent to issue and deliver to the Holder, a
certificate or certificates (physical or electronic as requested by the Holder) for the number of Warrant Shares to which the Holder
is entitled upon such exercise subject to the required legends, if any, relating to the securities laws and any restrictions thereunder
or any legends required by agreement.

 

 

		5.	Warrant Confers No Rights of Shareholder

Except as otherwise
set forth in this Warrant, the Holder shall not have any rights as a shareholder of the Company with regard to the Warrant Shares
prior to actual exercise resulting in the purchase of any Warrant Shares.

 

		6.	Adjustment of Warrant Price and Number of Warrant
Shares

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:

 

		a.	Adjustment for Shares Splits and Combinations If the Company at any time or from
time to time effects a subdivision of the outstanding Ordinary Shares, the number of Ordinary 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 Ordinary Shares, the number of Ordinary Shares issuable upon exercise of this Warrant
immediately before the combination shall be proportionately decreased. Any adjustment under this Section 6(a) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

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		b.	Reorganization, Mergers, Consolidations or Sales of Assets If at any time from time
to time 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 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 Ordinary 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 Ordinary 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.	General Protection. The Company will not, by amendment of its Articles of Association
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
hereunder, or impair the economic interest of the Holder, but will at all times in good faith assist in the carrying out of all
the provisions hereof and in taking of all such actions and making all such adjustments as may be necessary or appropriate in order
to protect the rights and the economic interests of the Holder against impairment.

 

		g.	Notice of Capital Changes. If at any time the Company shall offer for subscription
pro rata to the holders of Ordinary Shares any additional shares of any class, other rights or any equity security of any
kind, or there shall be 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 company or there shall be a voluntary
or involuntary dissolution, liquidation or winding up of the Company, or other transaction described in this Section 6, then, in
any one or more of said cases, the Company shall give the Holder written notice, by registered or certified mail, postage prepaid,
of the date on which (i) a record shall be taken for such subscription rights or (ii) such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up shall take place, as the case may be. Such notice shall also specify the date
as of which the holders of record of Ordinary Shares shall participate in such subscription rights, or shall be entitled to exchange
their Ordinary Shares for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, as the case may be. Such written notice shall be given at least thirty (30) days
prior to the action in question and not less than thirty (30) days prior to the record date in respect thereto.

 

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		h.	Adjustment of Exercise Price. Upon each adjustment in the number of Ordinary 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 Ordinary Shares purchasable hereunder shall be adjusted.

 

		i.	Notice of Adjustments. Whenever the Exercise Price or the number of Ordinary Shares
purchasable hereunder shall be adjusted pursuant to Section 6 hereof, the Company shall prepare a certificate signed by the chief
executive officer or the chief financial officer of the Company setting forth, in reasonable detail, the event requiring the adjustment,
the amount of the adjustment, the method by which such adjustment was calculated, and the Warrant Price and the number of Ordinary
Shares purchasable hereunder after giving effect to such adjustment, and shall cause copies of such certificate to be sent to the
Holder.

 

		7.	Transferability.

This Warrant
may be sold, transferred, assigned or hypothecated by the Holder in accordance with all applicable securities laws. The Holder
shall provide written notice of any such transfer to the Company.

  

		8.	Unregistered Security.

Each holder
of this series of Warrants acknowledges that this Warrant and the Warrant Shares have not been registered under the Securities
Act, and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant and any Warrant
Shares issued upon its exercise in the absence of (i) an effective registration statement under the Securities Act as to this Warrant
and such Warrant Shares and registration or qualification of this Warrant and such Warrant Shares under any applicable U.S. federal
or state securities law then in effect, or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration
and qualification are not required.

 

		9.	Shares Fully Paid.

The Company
covenants and agrees that all Warrant Shares the Ordinary Shares which may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive
rights of any stockholder and free of all liens and charges with respect to the issue thereof. The Company will assure that such
Warrant Shares and the Ordinary Shares to be issued as provided herein shall be issued without violation of any applicable law
or regulation. The Company shall register under U.S. securities laws the shares issuable upon exercise hereof as set forth in the
CLA;

 

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		10.	Replacement of Warrants.

Upon receipt
of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case
of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue,
in lieu thereof, a new Warrant of like tenor.

 

		11.	Mailing of Notices.

Any notice
required or permitted pursuant hereto shall be made in accordance with the terms of the CLA.

 

		12.	Tax Withholding.

If the Company
is required to withhold tax at source in connection with the issuance of Warrant Shares upon exercise of the Warrant, then as a
condition to the issuance of the Warrant Shares the Holder shall provide the Company with an appropriate tax withholding exemption
or applicable tax payment.

 

		13.	Applicable Law; Jurisdiction

This Warrant
shall be governed by and construed in accordance with the laws of the State of Israel as applicable to contracts between two residents
of the State of Israel entered into and to be performed entirely within the State of Israel. Any dispute arising under or in relation
to this Warrant shall be resolved exclusively in the competent court for Haifa district, and each of the parties hereby submits
irrevocably to the exclusive jurisdiction of such court.

 

		14.	Headings

The heading
of this Warrant have been inserted as a matter of convenience only and shall not have any other effect thereon.

 

	 	Dated:	October 10, 2018	 
	 	 	 	 
	 	By:	P.V. Nano Cell Ltd.	 
	 	Name: 	Fernando de la Vega	 
	 	Title:	CEO	 

  

	Confirmed and accepted:	 
	 	 

 

	GTRIMG Investments Ltd.	 
	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Date:	 	 
	 	 	 
	Address:	 	 

 

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Exhibit A

NOTICE OF EXERCISE

 

To: P.V. NANO
CELL LTD.

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant,
and tenders herewith payment of an exercise price equal to USD__________, together with all applicable transfer taxes, if
any.

 

(2) Payment
shall take the form in lawful money of the United States;

 

(3) Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned.

 

(4) 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.

 

The Warrant Shares shall be delivered to the following DWAC
Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ___________________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:
_________________________________________________

 

Name of Authorized Signatory: ___________________________________________________________________

 

Title of Authorized Signatory: ____________________________________________________________________

 

Date: _______________________________________________________________Exhibit
10.1

 

THIS
CONVERTIBLE LOAN AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITES ACT OF 1933,
AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.
NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERTO OR AN OPINION OF COUNSEL
IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

CONVERTIBLE
LOAN AGREEMENT

 

This
CONVERTIBLE LOAN AGREEMENT (this “Agreement”) is made and entered into as of October 10, 2018 (the “Effective
Date”), by and among PV Nano Cell Ltd., an Israeli company (the “Company”), and GTRIMG Investments
Ltd. an Israeli Company (the “Lender”).

 

R
E C I T A L S

 

WHEREAS,
the Company requires an infusion of additional funds in order to conduct its business activities; and

 

WHEREAS,
the Lender, is willing to make available to the Company a convertible loan (the “Loan”) in amounts set
forth below, on the terms and conditions set forth in this Agreement;

 

NOW,
THEREFORE, the parties hereto hereby agree as follows:

 

		1.	Loan.

 

1.1 Principal
Loan Amount. The Lender hereby agrees to loan the Company at the Closing an amount equal to US $1,000,000, under the terms and
conditions provided herein (the “Principal Loan Amount”).

 

1.2 The
Lender shall have an option to lend the Company an additional amount of up to US $2,000,000 (“Additional Principal”),
under the terms and conditions provided herein, in effect until the earlier of: (i) repayment in full of the Loan Amount, (ii)
the Conversion Date (as defined below), or (iii) an initial public offering of the Company’s shares (“IPO” and
”Additional Principal Period” respectively).

 

1.3 Interest.
The Principal Loan Amount shall bear an accumulated interest at the rate of Israeli Prime plus 4% per annum (the “Interest”
and together with the Principal Loan Amount, the “Loan Amount”) calculated on the 10th of each calendar
quarter for the immediately preceding 3 months period. Interest shall be paid on the Maturity Date when all amounts outstanding
in connection with this Agreement shall be due and payable (“Interest Payment Date”), unless converted earlier
as set out below.

 

1.4 Maturity
Date. Unless earlier converted pursuant to Section 3 below, the Loan shall mature and become due and payable upon the
earlier of (i) 24 months as of the Closing; or (ii) immediately prior to an Event of Default, as defined below, unless waived
by the Lender at its sole discretion (the “Maturity Date”).

 

An
Event of Default means (i) the filing by or against the Company of any petition in bankruptcy or liquidation proceedings
of the Company or any petition for relief under the provisions of any law for the relief of debtors, and the continuation of such
petition without dismissal for a period of 45 days or more; (ii) the appointment of a receiver, a trustee or a special manager
to take possession of property or assets of the Company and the continuation of such appointment without dismissal for a period
of 45 days or more; (iii) the commencement by the Company of any liquidation proceedings, or the adoption of a winding up resolution
by the Company, or the calling by the Company of a meeting of creditors for the purpose of entering into a scheme or arrangement
with them or any resolution in favor of any of the foregoing by the board of directors of the Company or shareholders of the Company;
(iv) the cessation of conduct of substantially all of the Company’s business affairs as now being conducted for a period of more
than 45 days, or (v) a material breach of the warranties, representations, or other statements which were made by the Company
under this Agreement which is not cured, if curable, within 14 business days following receipt by the Company of a written notice
of such breach. The Company undertakes to notify the Lender immediately following occurrence of any of the events detailed in
clauses (i) to (v) above.

  

    
 

    

    

 

It
is agreed that failure by the Company to approve the amendment of the Articles of Association as stated in Section 4.6 below and/or
failure to file on the Filing Date or have the registration statement effective on the Effectivness Date (as defined below), shall
constitute an Event of Default that shall entitle the Lender to elect to either (i) to have the Loan be repaid within 14 days;
or (ii) entitle the Lender to a discount of 25% on the Conversion Price of the Loan and the Warrants (it being clarified that
in such case the minimum conversion price shall not apply) (the “Event of Default Special Penalty”). The Company
undertakes to notify the Lender immediately following occurrence of any of such events.

 

1.5 Warrants.
At the Closing, the Company shall deliver to the Lender a Warrant Certificate in the form attached hereto as Exhibit 1.5(a)
according to which the Lender shall have the right, prior to the date which is the later of (i) 24 months as of the date
the Registration Statement, as noted in Section ‎4.8 below, becomes effective or (ii) Maturity Date (should it be extended
by the Parties) (the “Warrant Exercise Period”) or an IPO (if earlier), to purchase Ordinary Shares of the Company
up to an aggregate exercise price of USD 5 Million . The exercise price per Ordinary share of the Company (“Share”)
shall be adjusted according to the relevant conversion price as set out in the Warrant Certificate.

 

At
the Closing, the Company shall deliver to the Lender a Warrant Certificate in the form attached hereto as Exhibit 1.5(b)
in respect of the Additional Principal according to which, effective as of and subject to the provision of all or part
of the Additional Principal, the Lender shall have the right, prior to the Warrant Exercise Period or an IPO (if earlier), to
purchase Ordinary Shares of the Company up to an aggregate exercise price of USD 5 Million, assuming provision of the entire Additional
Principal, and pro rata share in the event not all of the Additional Principal was provided.

 

The
Warrant under Exhibit 1.5(a) and Exhibit 1.5(b) together the “Warrants”.

 

		2.	Closing.

  

2.1 Subject
to receipt by the Company of all the corporate approvals required to approve the transactions contemplated in this Agreement (except
as stated below with respect to the approval of the shareholders) (the “Company Approvals”), and any third
party approvals (the “Third Party Approvals”) the Closing shall take place on October 14, 2018 (the “Closing”,
the “Closing Date”, respectively), and all of the following shall be deemed to have occurred simultaneously:

 

2.2 The
Company shall provide the Lender with copies of all Company Approvals, and Third Party Approvals;

 

2.3 The
Company shall provide the Lender with executed Warrant Certificates in the forms attached as Exhibit 1.5(a) and
Exhibit 1.5(b);

 

2.4 The
Company shall provide the Lender with a copy of the Proxy Statement to be sent to all shareholders immediately following the Closing,
with respect to the approval of the amendment to the Articles of Associations of the Company, as further detailed in Section ‎4.6
below, together with irrevocable proxies executed by shareholders of the Company, holding 60% of the issued share capital of the
Company, authorizing the Chairman of the Shareholders Meeting to vote FOR all resolutions set forth in the Proxy Statement.

  

    2

    

    

 

2.5 The
Company shall provide the Lender with an executed undertaking of Dr. Fernando de la Vega, CEO of the Company, to continue his
employment in the Company for a period which shall be the shorter of: (i) at least 12 months following the actual repayment of
the Loan Amount or conversion thereof; (ii) or three (3) years.

 

2.6 At
the Closing, the Lender shall deliver the Principal Loan Amount by way of a bank transfer to the Company’s account, pursuant to
the Company’s wiring instructions.

 

		3	Voluntary
                                         Conversion; Repayment.

 

3.1 Voluntary
Conversion.

 

At
any time after the Closing Date until the Loan Amount is no longer outstanding, the Loan Amount shall be convertible, in whole
or in part, into Ordinary Shares (or any senior class of shares authorized and issued by the Company prior to the conversion,
if applicable) at the option of the Lender, at any time and from time to time. The Lender shall effect conversions by delivering
to Company a Notice of Conversion, the form of which is attached hereto as Exhibit 3.1 (each, a “Notice
of Conversion”), specifying therein the Loan Amount to be converted at the election of the Lender and the date on which
such conversion shall be effected, which shall be no earlier than 7 days from the date of receipt of notice by the Company (such
date, the “Conversion Date”). Conversions hereunder shall have the effect of lowering the outstanding Loan
Amount in an amount equal to the applicable conversion. Upon conversion of any accrued interest, the Lender shall provide the
Company with a withholding exemption or shall pay to the Company the respective withholding amount the Company is obligated to
withhold, the Company shall pay such amount to the tax authorities, within the timeframe prescribed by law, and shall provide
the Lender with a certificate of payment.

 

Conversion
Price. The conversion price for the Loan Amount in connection with voluntary conversions by the Lender, shall be as calculated
as set forth below but shall not fall below $0.17 per share (except in the case of an Event of Default Special Penalty) (“Conversion
Price”).

 

Whereas

 

“CP”
– shall mean the Conversion Price

 

“CPR”
– shall mean the Conversion Price Ratio

  

    3

    

    

 

“Closing
NAV” – shall mean the Total Shareholders’ Equity, as recorded in the most recent audited financial statements of
the Company reported by the Company prior to the Closing Date, i.e. [USD $, 2,802,720 as per the 2017 audited financial statements]

 

“Conversion
NAV” – shall mean the Total Shareholders’ Equity, as recorded in the most recent audited financial statements of
the Company reported by the Company prior to the Notice of Conversion.

 

“NI”
– additional cash equity invested in the Company after the Closing Date and prior to the Conversion Date which was included
in the most recent audited financial statements of the Company reported by the Company prior to the Notice of Conversion, provided
that any changes in the Shareholders Equity due to other transactions which are not cash investments, i.e. changes due to merger,
share swap, sale of assets etc. shall not be deducted under the NI. The CP shall not be affected by the transactions contemplated
hereunder (i.e. by the Loan Amounts or the Warrants)

 

Accordingly,

 

CPR
= (Conversion NAV – NI) / Closing NAV

 

And
 CP= $0.27 X CPR, but not less than $0.17 

  

3.2
No fractional shares shall be issued upon conversion of the outstanding Loan Amount, and the number of shares to be issued
shall be rounded to the nearest whole number.

 

3.3 Repayment
at Maturity Date. In the event the Loan Amount has not been converted pursuant to this Agreement prior to the Maturity
Date, upon such maturity the Company shall make full cash repayment of the outstanding Loan Amount.

 

3.4
Upon conversion of the Loan Amount into shares of the Company pursuant to Section 3.1 above, the Company shall, as soon as
practicable thereafter instruct its transfer agent to issue and deliver to the Lender, a certificate or certificates
(physical or electronic as requested by the Lender) for the number of shares to which the Lender is entitled upon such
conversion (subject to the prevailing legends as customary for the Company).

 

3.5
Upon conversion of any part of the Loan Amount pursuant to the terms herein, the Company shall, be forever released, with no
further action to be taken, from its obligations and liabilities under this Agreement to pay such portion of the Loan Amount
converted. This Agreement shall be deemed fully fulfilled and automatically expire upon the conversion or repayment of the
Loan Amount in full, pursuant to the terms of this Agreement, with no further obligations on the Company pursuant hereto. The
Lender shall execute any documents reasonably requested by the Company in order to confirm such fulfillment.

 

		4	Representations
and Covenants of the Company. The Company hereby represents and warrants to the Lender as of the date hereof and as of
the Closing that:

 

4.1 The
Company is a company duly formed and validly existing under the laws of the State of Israel, with full corporate power and authority
to enter into and perform its obligations under this Agreement.

 

4.2 The
execution and delivery of this Agreement by the Company, and performance of the Company’s obligations hereunder, have been duly
and validly authorized by all necessary corporate action, except the amendment of the Articles of Association as specifically
stated herein.

 

4.3 The
shares to be issued upon conversion of the Loan Amount and the Additional Principal if converted, and of the Warrants to be granted
hereunder if exercised, will be, duly authorized and upon issuance in accordance with this Agreement, as the case may be, will
be, validly issued, fully paid, and non-assessable.

 

4.4 The
most recent 20F report filed by the Company is true and accurate in all material respects as of the dates set out therein and
the information provided therein, including the financial statements, shall be deemed for all intents and purposes as representations
and/or warranties provided hereunder. The Company represents that no material adverse event has occurred since the dates set out
therein except deterioration of the Company’s cash. The Company has no liabilities or obligations, contingent or otherwise, other
than liabilities incurred in the ordinary course of business subsequent to December 31, 2017, which, individually and in the aggregate,
do not exceed US$200,000. 

 

4.5 The
Company shall use the Principal Loan Amount solely in accordance with the Budget attached hereto as Exhibit 4.5(a).
Until the conversion or the repayment of the Principal Loan Amount, any repayment obligation of the Company to its shareholders,
as detailed in Exhibit 4.5(b) will be subordinated to the Lender’s Loan, including Additional Principal if provided,
and shall not be repaid without the Lender’s prior written consent, other than payment to such shareholders of salaries or fees
for services rendered or to be rendered. The Company shall be entitled to repay existing loans only to the lenders detailed in
Exhibit 4.5(c), under the terms set forth therein.

  

    4

    

    

 

4.6 No
later than 7 days following the Closing the Company shall convene a shareholders meeting, to be held no later than November 29,
2018, which shall include on its agenda the amendment of the Articles of Association of the Company to provide (i) for an increase
of the registered share capital of the Company; and (ii) that in the event the Lender shall convert at least US $2 Million of
the Loan and/or invests an equity amount of US $2 Million, it shall be entitled for as long as it holds at least 5% of the outstanding
share capital of the Company, to elect one director to the Board of Directors of the Company who shall serve as the Chairman of
the Board of Directors, provided that such nominee has the required qualifications under applicable laws including the stock exchange
rules then applicable. As of the Closing the Lender shall be entitled to appoint an observer to the Board of Directors who will
be invited by the Company to all board meetings and who will be provided by the Company with all written materials provided to
the directors of the Company and will receive prior notice of all actions taken by the Board of Directors in writing. Such observer
shall not have any voting rights and shall sign a customary confidentiality and non-conflict undertaking. A copy of the Company’s
capitalization table, on a fully diluted basis, as of the date hereof, is attached hereto as Exhibit ‎4.6. It
is understood that the capitalization table does not reflect the actual holdings as they may vary with respect to shareholders
who own unrestricted shares but does represent the issued share capital of the Company on a fully diluted basis. The Company does
not have updated information with respect to holders of shares that were released by Vstock.

 

4.7
The Company declares that except for the Third Party Approvals set forth in Exhibit ‎4.7 no other approvals
are required in order for the Company to consummate this Agreement without breach of any law, regulation or contractual
agreement.

 

4.8
No later than 45 days following the filing by the Company of the 20F report for December 31, 2018, to be filed within the
timeframe set by law (“Filing Date”), the Company shall file with the SEC a registration statement registering
with the United States Securities and Exchange Commission all securities which may be issued to the Lender upon conversion of
any Loan and the exercise of any Warrants, and shall make best efforts to have such registration statement effective as soon as
possible but no later than 120 days if the statement is reviewed by the SEC and 45 days if the statement is not reviewed, from
the filing date of the registration statement (“Effectiveness Date”). In the event of a failure to file on the
Filing Date of have the registration statement effective by the Effective Date , as a result of which the Lender is unable to
sell registrable securities without restriction under Rule 144 then, the Company shall pay to the Lender an amount in cash
equal to two and a half (2.5%) of the aggregate amounts actually paid to the Company by the Lender (Loan Amount, Additional Loan
Amount and Warrant Exercise Price) to be included in such registration statement on each of the following dates: (1) on the date
of failure to file, either on the Filing Date or the Effectiveness Date, as applicable, and (2) on every ninety (90) day anniversary
of (I) the failure to file on the Filing Date until such failure is cured; or (II) the failure to file on the Effectiveness Date
until such failure is cured. Payments for any failure to file during any interim 90 day period shall be made pro rata. The payments
to which a holder of Registrable Securities shall be entitled pursuant to this Section ‎4.8 are referred to herein
as “Registration Delay Payments.” Notwithstanding the foregoing, (i) in no event shall the aggregate amount
of Registration Delay Payments payable by the Company to the Lender exceed ten percent (10%) of the aggregate Loan Amount, Additional
Loan Amount and Warrant Exercise Price actually paid to the Company by the Lender. Notwithstanding the foregoing, no Registration
Delay Payments shall be owed to a Lender with respect to any period during which the Lender’s registrable securities may
be sold by the Lender without restriction under Rule 144 (including, without limitation, volume restrictions).

  

    5

    

    

 

		5	Representations
and Warranties of the Lender. The Lender, hereby represents and warrants to the Company as of the date hereof and as of the
Closing that:

 

5.1 The
Lender confirms that it has full power and authority and has taken all required action necessary to permit it to execute and deliver
and to carry out the terms of this Agreement and all other documents or instruments required hereby.

 

5.2 The
Lender has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks
of this investment and that it is able to bear the economic risk of this investment. During the course of this transaction and
prior to the execution of this Agreement, such Lender acknowledges that it had the opportunity to ask questions of, and receive
answers from, management of the Company concerning the terms and conditions of this transaction and to obtain any additional information
of the same kind that is specified in Rule 502 of Regulation D of the Securities Act of 1933, as amended (the “Securities
Act”), or that is necessary to verify the accuracy of the other information obtained. The Lender further acknowledges that
it has received such information, as it deems necessary to enable it to make its investment decision. Such Lender further represents
and warrants to the Company that it is either (i) an “accredited investor” as such terms is defined in Regulation
D of the Securities Act; or (ii) a non-U.S. person as that term is defined in Regulation S of the Securities Act of 1933, as amended.

 

5.3 The
Lender understands that until the filing of the registration statement as undertaken by the Company above, the shares issuable
upon conversion of the Loan Amount are characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws
and applicable regulations, such securities may be resold without registration under the Securities Act, only in certain limited
circumstances.

 

		6.	Adjustments

 

The
number and kind of shares purchasable initially upon the conversion of the convertible amounts under this Agreement and/or the
exercise of this Warrant and the relevant CP and warrants exercise price shall be subject to adjustment from time to time upon
the occurrence of certain events, as follows:

  

6.1 Adjustment
for Shares Splits and Combinations. If the Company at any time or from time to time effects a subdivision of the outstanding
Ordinary Shares, the number of Ordinary Shares issuable before the subdivision shall be proportionately increased, and conversely,
if the Company at any time or from time to time combines the outstanding Ordinary Shares, the number of Ordinary Shares issuable
immediately before the combination shall be proportionately decreased. Any adjustment under this Section 6.1 shall become effective
at the close of business on the date the subdivision or combination becomes effective.

  

6.2 Reorganization,
Mergers, Consolidations or Sales of Assets. If at any time and from time to time 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 Agreement) 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 Lender shall thereafter be entitled to receive upon, 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 Ordinary 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 Lender 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 Ordinary Shares
issuable upon exercise of instrument hereunder) shall be applicable after that event and be as nearly equivalent to the provisions
hereof as may be practicable. The Company undertakes to provide prior written notice to the Lender of any such event detailing
all relevant information at least thirty (30) days prior to such event.

  

    6

    

    

 

		7.	Miscellaneous.

 

7.1 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 reflected thereby.

 

7.2 This
Agreement 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 Agreement shall be resolved in the competent court in Haifa, and
each of the parties hereby submits irrevocably to the jurisdiction of such court.

 

7.3 Except
as otherwise expressly limited herein, the provisions hereof shall insure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors, and administrators of the Parties hereto.

 

7.4 The
rights, privileges, or obligations set forth in, arising under or created by this Agreement may not be assigned or transferred
by any Party, except for any assignment or transfer by the Company in connection with a merger transaction, change of control,
sale of all or substantially all of its assets, or any similar transaction involving the Company, and except for any assignment
or transfer by a Lender; to any entity in which such Lender owns directly or indirectly or has the right and power to direct
the policy and management of such company, or is controlled by, controlling or under common control with the Lender.

 

7.5 This
Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to
the subject matters hereof and thereof. The preamble hereto constitutes an integral part hereof.

 

7.6 Any
term of this Agreement (including but not limited to, with respect to the Maturity Date and prepayment of the Loan Amount) may
be amended and the observance of any term hereof may be waived (either prospectively or retroactively and either generally or
in a particular instance) only with the written consent of the Company and the Lender.

 

7.7 All
notices and other communications required or permitted hereunder to be given to a party to this Agreement shall be in writing
and shall be telecopied, e-mailed or mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand or
by messenger, if to the Company then to the Company’s registered address, and if to the Lender then to the address set forth on
the signature page of this Agreement, or such other address with respect to a party as such party shall notify each other party
in writing as above provided. Any notice sent in accordance with this Section 7 shall be effective: (i) if mailed, seven
(7) business days after mailing with registered mail, (ii) if sent by messenger, upon receipt, and (iii) if sent via telecopier
or e-mail, 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.

 

7.8 In
no event shall any shareholder, officer, or director of the Company be liable for any amounts due or payable pursuant to this
Agreement, subject to any law.

 

7.9 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.

 

7.10 All
remedies, either under this Agreement or by law or otherwise afforded to any of the Parties, shall be cumulative and not alternative.

 

7.11 If
any provision of this Agreement is held by a court of competent jurisdiction unenforceable under applicable law, than such provision
shall be excluded from this Agreement and the remainder of this 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 an 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.

 

7.12 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.

 

[Remainder
of Page Left Intentionally Blank]

  

    7

    

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the Effective Date set forth above.

  

	COMPANY:	 
	 	 
	By:	 	 
	Name: 	Dr. Fernando De La Vega	 
	Title:	 CEO	 
	 	 
	LENDER:	 
	 	 
	GTRIMG Investments Ltd.	 
	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 
	Address:	 	 

 

[Signature
Page - 2018 Convertible Loan Agreement]

  

    8

    

    

 

Exhibit
1.5(A) – Warrants

 

 

 

    9

    

    

  

Exhibit
1.5(b) – Additional Principal Warrant

  

 

 

    10

    

    

 

Exhibit
3.1

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert an amount of US $ ___________ under the Convertible Loan Agreement dated October 10, 2018
(the “CLA”), of P.V. Nano Cell Ltd., a company formed under the laws of the State of Israel (the “Company”),
into Ordinary Shares (the “Ordinary Shares”), of the Company according to the conditions set forth in the CLA,
as of the date written below.

 

	Conversion
    calculations:	 
	 	 
	 	Date
    to Effect Conversion:____________________________________________
	 	 
	 	Principal
Loan Amount to be Converted:__________________________________
	 	 
	 	Interest
to be Converted:______________________________________________
	 	 
	 	Number
of Ordinary Shares to be issued:__________________________________
	 	 
	 	Signature:__________________________________________________________
	 	 
	 	Name:_____________________________________________________________
	 	 
	 	Address
for Delivery of Ordinary Shares Certificates:_________________________
	 	 
	 	Or
	 	 
	 	DWAC
Instructions:_________________________________________________
	 	 
	 	Broker
No:_________________________________________________________
	 	 
	 	Account
No:_______________________________________________________

  

    11

    

    

 

Exhibit
4.5 (a) – Budget

 

 

    12

    

    

 

Exhibit
4.5(b) – Subordinated Loans of Existing Shareholders

  

 

    13

    

    

 

Exhibit
4.5(c) – Loans which may be repaid

  

 

    14

    

    

 

Exhibit
4.6 – Capitalization Table

  

 

    15

    

    

 

Exhibit
4.7 – Third Party Consent

 

Consent
of the Lenders’ detailed in Exhibit 4.5(b).

 

Consent
of the Lenders detailed in Exhibit 4.5(c) Section (A).

  

    16

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