Document:

Exhibit 10.3

 

MANAGEMENT
AGREEMENT

 

This
Management Agreement (this "Management Agreement") is entered into as of the 31st day of December,
2012, by and between CompuLab Ltd., a company incorporated under the laws of the State of Israel, having its offices at
17 Ha'yetzira st., Yokneam Illit, Israel (hereinafter referred to as the “Company”); and TechnoPlus Ventures
Ltd., a company incorporated under the laws of the State of Israel, having its offices at 132 Menahem Begin St., Tel Aviv,
Israel (hereinafter referred to as “TechnoPlus”).

 

Each
of the Company and TechnoPlus may be hereinafter referred to individually as a “Party” and collectively as
the “Parties”.

 

		WHEREAS	the
                                         Company wishes to engage TechnoPlus for the rendering of certain management services,
                                         and TechnoPlus agrees to render such services to the Company; and

 

		WHEREAS	the
                                         Parties wish to regulate and establish the terms of the said services in accordance with
                                         the Shareholders Agreement dated as of December 31, 2012 (the "Shareholders Agreement")
                                         and the terms and conditions set forth in this Management Agreement;

 

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

 

		1.	Interpretation

 

		1.1.	The
                                         paragraph headings are for the sake of convenience only and shall not affect the interpretation
                                         of this Management Agreement. The recitals and Appendixes hereto form an integral part
                                         of this Management Agreement.

 

		1.2.	Capitalized
                                         terms used but not defined herein shall have the respective meanings given them in the
                                         Shareholders Agreement.

 

		2.	Services

 

		2.1.	TechnoPlus
                                         agrees to provide the Company, and the Company agrees to receive from TechnoPlus management
                                         services, including but not limited to, involvement in the ongoing business management
                                         of the Company, involvement and consultation with respect to significant business issues
                                         and development of the Company's business and business relationships, introducing to
                                         the Company potential partners and any other services as may be agreed between the Parties
                                         from time to time (the "Services").

 

		2.2.	TechnoPlus
                                         shall provide the Services by its qualified and experienced personnel, as may be determined
                                         by TechnoPlus from time to time.

 

     

     

    

 

		2.3.	The
                                         Parties will coordinate the manner of providing the Services, including by weekly meeting
                                         between the Parties' representatives, or otherwise as may be agreed between the Parties.

 

		3.	Management
                                         Fee

 

		3.1.	As
                                         full and complete consideration for the Services to be rendered hereunder, TechnoPlus
                                         shall be entitled to a monthly payment to be calculated as follows: a varying amount
                                         of NIS 17,500 which will be updated once a year according to changes of the Company's
                                         sales, as published in the Company's annual financial statements (relatively to the Company's
                                         sales in the fiscal year 2011, which were NIS 78M) plus a fixed amount of NIS 5000, excluded
                                         VAT (the "Management Fee").

 

For
example, if according to Company's annual financial statements of the fiscal year 2012, the Company's sales would be NIS 83M,
the Management Fee will be: 17,500 * (83/78) = NIS 18,621, excluded VAT.

 

		3.2.	The
                                         Management Fee will be paid on or before the 9 (ninth) business day of each calendar
                                         month to TechnoPlus, against the issuance of tax invoice by TechnoPlus.

 

		3.3.	In
                                         addition, the Company shall reimburse TechnoPlus for any reasonable costs and expenses
                                         related to the provision of the Services to the Company. No payment shall be made, unless
                                         it is documented adequately with a duly issued invoice or receipt.

 

		3.4.	TechnoPlus
                                         shall bear and pay any and all taxes and/or other payments required by law in connection
                                         with any payment received by it pursuant to this Management Agreement (the “Taxes”).
                                         If required under applicable law, the Company shall make any deductions and/or payments
                                         to the applicable government authorities, such as the Income Tax Authority.

 

		3.5.	TechnoPlus
                                         expressly agrees that Company shall not be responsible in any way for any state benefits,
                                         including, without limitation, contributions or deductions with respect to National Insurance,
                                         unemployment insurance and governmental withholding taxes and the Company shall not make
                                         any withholdings from TechnoPlus’s compensation with respect to such.

 

		4.	Representations
                                         Warranties and Undertakings

 

TechnoPlus
hereby represents, warrants and undertakes as follows:

 

		4.1.	TechnoPlus
                                         is entitled to enter into this Management Agreement and to perform all of its obligations
                                         hereunder, and there are no undertakings, impediments, or agreements preventing it from
                                         entering into this Agreement and/or performing any of its obligations and undertakings
                                         herein.

 

    2 

     

    

 

		4.2.	The
                                         fulfillment of the undertakings pursuant to this Management Agreement does not breach,
                                         and will not breach, any other agreement or undertaking for the preservation of confidentiality
                                         and non-competition to which TechnoPlus is a party or bound to.

 

		5.	Term
                                         and Termination of Agreement

 

This
Management Agreement shall enter into force and effect upon the date hereinabove and shall be terminated upon the earlier of (i)
TechnoPlus ceased to hold any part of the Company's share capital, and (ii) dissolution, liquidation or other winding up of the
Company.

 

		6.	No
                                         Employer-Employee Relationship

 

		6.1.	TechnoPlus
                                         and anyone on its behalf shall at all times remain independent contractor to, and not
                                         agents or employees of the Company and anyone on its behalf.

 

		6.2.	In
                                         case the Company shall be required to make any additional payments to TechnoPlus pursuant
                                         to any law, deriving from an employment relationship, or in any case the Company shall
                                         incur expenses, including legal fees and court fees, as a result of a legal dispute regarding
                                         the existence of an employment relationship between the Parties and/or anyone on their
                                         behalf, TechnoPlus shall fully indemnify the Company for any such payments and expenses
                                         incurred by the Company.

 

		7.	Miscellaneous

 

		7.1.	Any
                                         modification or deletion of any clause in this Management Agreement or its exhibits shall
                                         be done only by way of written instrument executed by both parties hereto.

 

		7.2.	This
                                         Management Agreement shall be governed by and construed under the laws of the State of
                                         Israel, without regard to the conflict of law provisions thereof. Any dispute arising
                                         under or in relation to this Agreement shall be resolved exclusively in the competent
                                         court for Tel Aviv-Jaffa district, and each of the parties hereby irrevocably submits
                                         to the exclusive jurisdiction of such court.

 

		7.3.	No
                                         waiver by either party hereto of any rights granted to them under this Management Agreement
                                         shall serve as a precedent for identical cases; such waiver shall not be applied by way
                                         of analogy to similar cases; and such waiver shall not preclude the ability of the Company
                                         or TechnoPlus to exercise any rights which they have waived.

 

		7.4.	This
                                         Management Agreement is in accordance with the Shareholders Agreement and in addition
                                         to its terms and conditions, and does not derogate from its force and effect. This Management
                                         Agreement supersedes all other prior understandings, agreements, and memoranda, whether
                                         oral or written, which were made prior to the signing of this Agreement, and they are
                                         hereby annulled.

 

    3 

     

    

 

		7.5.	In
                                         the event that one or more of the provisions of this Management Agreement should be held
                                         unenforceable and/or invalid for any reason, this shall not affect the enforceability
                                         or validity of the remaining provisions, and both parties shall endeavor to carry out
                                         the provisions of this Agreement according to its spirit and its language, including
                                         by way of replacing such unenforceable and/or invalid provisions with alternate provisions
                                         whose results are identical in their essence.

 

		7.6.	All
                                         notices, requests, demands, instructions or other communications required or permitted
                                         to be given under this Management Agreement shall be in writing and shall be deemed to
                                         have been duly given upon delivery, if delivered personally on the same business day;
                                         or, mailed first-class, postage prepaid, registered or certified mail, return receipt
                                         requested, shall be deemed to have been given 3 business days after such delivery, to
                                         the address set forth on the first page of this Agreement; or, if by facsimile transmission
                                         which gives the sender proof of delivery, within 1 business day after the facsimile is
                                         sent. Either Party hereto may change the address to which such communications are to
                                         be directed by giving written notice to the other Party of such change in the manner
                                         above provided.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

 

	TechnoPlus
    Ventures Ltd.	 	CompuLab
    Ltd.
	 	 	 	 	 
	By:	Chen
    Katz, Yanir Farmber	 	By:	/s/
    Gideon Yampolsky
	Title:	Chief
                                         Executive Officer,

                                                                                Executive
                                         Chairman
	 	Title:	Chairman
                                         of the Board of Directors and

                                                                                Chief
                                         Executive Officer

	Signature:	/s/
    Chen Katz, /s/ Yanir Farber	 	Signature:	/s/
    Gideon Yampolsky

 

 

4Exhibit 10.4

 

	To:	Date:
    July 27, 2014

 

Bank
Leumi Le-Israel B.M.

 

Whereas          you
have and/or will make available, if you see fit, to the undersigned, CompuLab Ltd. (hereinafter: the “Company”),
loans, credits and/or other banking services, under such terms and conditions and in such amounts as agreed or will be agreed
upon between us from time to time; and

 

Whereas          you have received and/or will receive from us various undertakings and guarantees in your favor or towards you; and

 

Whereas          as one of the conditions for the providing of such loans and/or credits and/or other banking services and for receiving such
various undertakings and guarantees, you demanded that we sign this Letter and we agreed to do so;

 

Therefore,
we hereby declare and undertake as follows: -

 

		A.	Undertaking
                                         for Retention of Tangible Equity

 

We
hereby undertake that the Company’s Tangible Equity, as defined below, will at no time be less than the rate of 30% of the
total balance sheet on a company-alone basis.

 

In
addition, the Company’s Tangible Equity will at no time be less than the amount of NIS 30 million, with such amount linked
to the Consumer Price Index, starting from the index know on the date of signing this Letter.

 

All
the above data as reflected in the Company’s quarterly and annual financial statements as set forth below, on a company-alone
basis.

 

“Tangible
Equity” - means, the equity as reflected in the financial statements, including paid-up share capital, undistributed surplus,
funds, plus the balance of the shareholders’ loans principal amounts with respect to which subordination letters were signed
by the Company and its shareholders in favor of the Bank, less deferred expenses, intangible assets, such as: Goodwill, patents,
trademarks, trade names, copyrights etc., and less debtors of the Company, who are the interested parties and/or subsidiaries
and/or affiliates of the Company (as such terms are defined in the Securities Law, 5728-1968) and less guarantees given by the
Company to secure the debts of the Company’s interested parties and/or subsidiaries and/or affiliates. 

Regarding
financial statements prepared in accordance with International Financial Reporting Standards (IFRS), the definition of equity
will change in the manner set forth below:

 

		a.	Exclude
                                         minority interests which appear as part of the equity (for consolidated financial statements).
	 	 	 

		b.	The
                                         equity will also include warrants for which the surplus exercise money is linked (will
                                         appear as part of the liabilities).
	 	 	 

		c.	The
                                         equity will also include a conversion component for convertible bonds the exercise price
                                         of which is linked (if such appear separately in the liabilities item of the balance
                                         sheet).
	 	 	 

		d.	The
                                         revaluation fund for fixed assets, which was created after the adoption of the revaluation
                                         model for the period following the conclusion of the financial covenants, will not be
                                         included.

 

     

     

    

 

Regarding
financial statements prepared in accordance with US GAAP, the definition of equity (for consolidated financial statements) will
not include the minority interests which appear as part of the equity.

 

“Financial
Statements”, mean - the Company’s annual and quarterly financial statements on a consolidated/Company alone basis*,
published by the Company in accordance with generally accepted accounting, including, inter alia, a balance sheet, profit
and loss statement, cash flow statement, changes in shareholders’ equity statement and any other statements or notes required
under the accounting standards and/or by any competent authorities.

 

The
Financial Criteria set forth in section 1 above (hereinafter: the “Criteria”) are based on accounting standards,
accounting principles, estimates and accounting policy (hereinafter: the “Accounting Treatment”), as applied
in the Company’s last financial statements, as of the date of this Letter (hereinafter: the “Last Financial Statements”).

 

Any
Accounting Treatment which differs from the one on the basis of which the Last Financial Statements were prepared, including,
without limitation, due to the application of International Financial Reporting Standards (IFRS), any / new /other Israeli or
foreign accounting standards, change of estimates and/or change of Accounting Policy (all the above, hereinafter, jointly and
severally - the “New Accounting Treatment”), may bring about changes which may affect the Criteria.

 

The
Company therefore agrees as follows:

 

Whenever
it transpires to the Bank, at its exclusive discretion, that changes have and/or may occur to the Company’s financial statements,
as a result of a New Accounting Treatment, the Bank may, following consultation with the Company, but without the need to obtain
the Company’s consent, inform the Company which changes are required by it to be made in the Criteria (hereinafter: the
“Amended Criteria”), so as to adjust such Criteria to the above changes, in order to adapt the Criteria to the original
economic purpose underlying the Criteria.

 

Once
the Bank informs the Company of the Amended Criteria, such shall obligate the Company, starting from the delivery of the Bank’s
notice and this Letter shall be deemed as incorporating, as of the delivery date of the Bank’s notice, the Amended Criteria.

 

 

 

 

 

 

* Delete
the irrelevant 

 

    2 

     

    

 

		B.	Undertaking
                                         for ‘No Change’ of Control in the Company

 

We
hereby undertake that no change of control in the Company would be made in comparison with the situation at the date of signing
this Letter, unless with the prior written consent of the Bank.

 

“Control”
- for the purposes of the above, as such term is defined in the Securities Law, 5728-1968.

 

	C.	‘No Merger’
Undertaking

 

		a.	We
                                         hereby commit not to effect, or undertake to effect, or make any acts to effect, a merger
                                         with another/other corporation/s, without obtaining the Bank’s prior written consent.
                                         For this purpose, we undertake to immediately deliver to the Bank at its request any
                                         information and documents required by the Bank, at its discretion, for determining its
                                         position regarding the merger.
	 	 	 

		b.	The
                                         Company’s undertakings as set forth in this section above shall apply both with
                                         regard to a merger under the provisions of PART EIGHT or PART NINE of the Companies Law,
                                         5759-1999 and with regard to any act which results in the purchase of all or substantially
                                         all of the Company’s assets by any other person or corporation, or any other act
                                         as a result of which shares of the Company are purchased and confer upon the purchaser
                                         control of the company, or any act as a result of which the Company, directly or indirectly,
                                         acquires all or substantially all of the assets of another corporation, or shares of
                                         another corporation, that confer upon the Company control of such other corporation.
                                         

                                         

                                         For the purposes of this section, the term “control’ - as defined in the
                                         securities law 5728-1968.

					  

		D.	Undertaking
                                         to Deliver Financial Statements

 

We
hereby undertake to deliver to you, by no later than the 30th day of April each year, financial statements of the Company,
both on a consolidated and on a company-alone basis, that include, inter alia, a balance sheet, profit and loss statement,
cash flow statement and any other statements required by the competent authorities (hereinafter: the “Financial Statements”),
annual, audited by an external certified accountant that refer to December 31 of the previous year.

 

We
also undertake to deliver to you, by no later than 45 days after the end of each quarter, a quarterly balance sheet and profit
and loss statement of the Company, that refer to the quarter ending shortly prior to such date.

 

	E.	Undertaking to Deliver Additional
Reports

 

We
undertake to deliver to you a copy of any certificate, notice, report or other document which we are obligated to provide under
any law to the Companies Registrar and/or the Securities Authority, concurrently with the delivery of such documents to the Companies
Registrar and/or the Securities Authority.

 

	F.	‘No Issuance’ of
Bearer Securities Undertaking

 

We
undertake to refrain from issuing any bearer securities, without the Bank’s prior written consent.

 

We
hereby declare that as of the date of signing this Letter no bearer securities were issued by the Company.

 

    3 

     

    

 

	G.	Undertakings Towards Third
Parties

 

		a.	We
                                         hereby undertake to notify the Bank in writing, a reasonable time in advance, of our
                                         intention to make any commitments vis-à-vis third parties, including, without
                                         limitation, in the framework of an issuance/offering, which may or are likely to restrict
                                         in any manner our right to create any collaterals in favor of the Bank which are required
                                         and/or may be required for securing existing and/or future credits and/or banking services
                                         and to provide the Bank with the draft of any such undertaking prior to the final drafting
                                         thereof. We acknowledge that any commitment towards such third parties may bring about
                                         the cancellation and/or decrease of the credit facilities prior to the date of expiry
                                         thereof and/or annul your undertaking to provide credit and/or banking services, if such
                                         were or are provided, and we agree to the above. It is hereby clarified that the provisions
                                         of this section only are excluded and will not apply to assets of any type whatsoever
                                         the financing of which is provided by third parties and would be charged in favor of
                                         such third parties to secure their financing.
	 	 	 

		b.	We
                                         hereby undertake to notify the Bank in writing, a reasonable time in advance, of our
                                         intention to assume any commitments vis-à-vis any third parties, including,
                                         without limitation, in the framework of an issuance/offering, the entering into any financial
                                         Criteria the breach of which would or may confer upon such third parties the right to
                                         make our debts immediately due and payable.

 

	8.	Additional Undertakings

 

The
quotient obtained by dividing the aggregate amount of the balance of liabilities to banks, financial institutions, securities’
holders and other lenders, by the Tangible Equity, will not exceed at any time 1.6.

 

	9.	Effect of the Undertakings

 

Our
undertakings as set forth above shall remain in effect as long as any sums are due or shall become due to you from us on account
of loans, credits and/or other banking services, which were and/or will be made available to us in the future and/or as long as
the undertakings and guarantees made towards you or in your favor are in effect.

 

In
any case where you inform us that any of our aforementioned undertakings is fully or partially breached, then - in addition to
any other relief available to you under any law or under any other obligation of us to you, which is included or will be included
in any documents whatsoever - you will be entitled to accelerate and immediately make due and payable all or any of our undertakings
and debts towards you, and to collect the same from us, plus any amounts which the Bank will see fit to cover the losses and/or
expenses incurred by the Bank due to such acceleration.

 

Notwithstanding
the above, in the event of a breach of sections 1 and/or 8 above, you will become entitled to immediately make due and payable
part of our undertakings and debts to you as aforesaid, only after a prior warning of 60 days.

 

For
the avoidance of doubt, nothing in the above shall derogate from any of our undertakings towards you pursuant to any document
and/or any law, or derogate from any cause for immediately making due and payable which is currently available and/or which will
become available to you under any document and/or any law.

 

	 	Sincerely
    Yours,
	 	 
	 	/s/
    Gideon Yampolsky
	 	CompuLab
    Ltd.

 

    4 

     

    

 

To

 

Bank
Leumi Le-Israel B.M.

 

We
the undersigned, shareholders of CompuLab Ltd., hereby agree and undertake, each severally, to the undertakings set forth in section
2 above.

 

The
above stated shall bind all the undersigned shareholders, even though part of the Company’s shareholders did not sign this
Letter.

 

	/s/
    TechnoPlus Ventures Ltd.	 	/s/
E.F.G. Investments Ltd.	 	/s/
Gideon Yampolski	 	/s/
    Itamar Patishi
	TechnoPlus
    Ventures Ltd.		E.F.G. Investments Ltd.	 	Gideon
    Yampolski	 	Itamar
Patishi

 

	/s/
    H.S.T     Industrial Building (1995) Ltd. 	 	/s/
Amir Gal-Or 	 	/s/
    Avishay Silberschatz
	 	 
	H.S.T
    Industrial Building (1995) Ltd. 		Amir
    Gal-Or	 	Avishay
    Silberschatz
	 	 

 

    5 

     

    

 

The
name of the Company: CompuLab Ltd. Company No. 511683351

Address:
17 HaYetsira Street, Yokneam Illit

 

	To:	Date:
    July 27, 2014

 

Bank
Leumi Le-Israel B.M.

 

Re:
The Company’s Resolution to

  Sign a Letter of Covenants in favor of the Bank

 

We
hereby notify you that at the meeting of the board of directors of CompuLab Ltd. (hereinafter: the “Company”),
held on July 27, 2014, the following resolution was adopted:

		1.	The
                                         Company will sign a letter of undertaking towards Bank Leumi Le-Israel B.M., according
                                         to which, inter alia, the Company makes various undertakings in connection with
                                         the retention of Tangible Equity, refraining from making any change of control, merger,
                                         or issuance of bearer securities, delivery of financial statements and additional reports
                                         to the Bank and other undertakings towards third parties.

 

		2.	To
                                         empower Mr. Gideon Yampolski to sign the above letter of undertaking in the name of the
                                         Company, under such terms and conditions and in the form agreed upon between the Bank
                                         and the Company.

 

		3.	To
                                         notify the Bank of the above resolution.

 

	 	Sincerely
    Yours,
	 	 
	 	Gideon
    Yampolsky
	 	Chairman
    of the Meeting

 

I
the undersigned, Adv. Chen Katz, hereby confirm that the Company’s board of directors meeting was duly convened, that the
above resolution was duly adopted at the meeting in accordance with the Company’s incorporation documents and signed by
the Chairman.

 

Furthermore,
I hereby confirm that the composition of signatures set forth in the above resolution binds the Company.

 

	July
    27, 2014	 	/s/
    Chen Katz
	Date	 	Signature
    and Stamp of Attorney

 

 

6

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