Document:

PLACEMENT WARRANT PURCHASE AGREEMENT

 

PLACEMENT WARRANT PURCHASE AGREEMENT
(this “Agreement”) made as of this 7th day of November, 2011 among Selway Capital Acquisition Corporation,
a Delaware corporation (the “Company”), and Selway Capital Holdings LLC (the “Purchaser”).

 

WHEREAS, the Company has filed with
the Securities and Exchange Commission (“SEC”) a registration statement on Form S-1, as amended (File No. 333-172714)
(the “Registration Statement”), in connection with the Company’s initial public offering (the “IPO”)
of up to 2,000,000 units, each unit (“Unit”) consisting of one (1) Series A Share of common stock of the Company,
$0.0001 par value (the “Series A Shares”), and (ii) one (1) warrant (the “Warrants”) to purchase one share
of common stock; and

 

WHEREAS, the Company desires to sell
in a private placement to the Purchaser (the “Placement”) an aggregate of 2,333,333 Warrants (the “Placement
Warrants”) substantially identical to the Warrants being issued in the IPO pursuant to the terms and conditions hereof and
as set forth in the Registration Statement, except that the Placement Warrants to be issued in the Placement shall not be registered
under the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS, the Placement Warrants shall
be governed by the Warrant Agreement filed as an exhibit to the Registration Statement (the “Warrant Agreement”); and

 

WHEREAS, the Purchaser is entitled
to registration rights with respect to the Placement Warrants and the shares of common stock underlying such Placement Warrants
(collectively, the “Registrable Securities”) on the terms set forth in the Registration Rights Agreement filed as an
exhibit to the Registration Statement.

 

NOW, THEREFORE, for and in consideration
of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

 

1.          Purchase
of Placement Warrants. The Purchaser hereby agrees, directly or through nominees, to purchase an aggregate of 2,333,333
Placement Warrants at a purchase price of $0.75 per Placement Warrant, or an aggregate of approximately $1,750,000 (the “Purchase
Price”).

 

2.          Closing.
The closing of the purchase and sale of the Placement Warrants (the “Closing”) will take place at such time and place
as the parties may agree (the “Closing Date”), but in no event later than immediately prior to the closing of the IPO.
At least 24 hours prior to the date on which the SEC declares the Registration Statement effective (the “Effective Date”),
the Purchaser shall pay the Purchase Price by wire transfer of funds to an account maintained by Loeb & Loeb LLP (“Loeb”),
counsel for the Company. Prior to the closing of the IPO, Loeb shall deposit the Purchase Price into the trust account described
in the Registration Statement (the “Trust Account”). The certificate for the Warrants comprising the Placement Warrants
shall be delivered to the Purchaser promptly after the closing of the IPO.

 

3.          Redemption.
The Placement Warrants shall not be redeemable.

 

4.          Cashless
Exercise. The Placement Warrants may be exercised on a cashless basis any time while they are exercisable and prior to their
expiration in accordance with the terms set out in the Warrant Agreement.

 

5.          Escrow
of Placement Warrants. From the Effective Date until the earlier of the consummation by the Company of an Acquisition Transaction or,
if the Acquisition Transaction is completed without granting the Company’s shareholders redemption rights in connection
with such Acquisition Transaction, the consummation of a post-acquisition tender offer or post-acquisition automatic trust liquidation
(the “Escrow Period”), the Placement Warrants shall be placed in escrow.  The terms and conditions of the
escrow of the Placement Warrants and their release therefrom shall be set forth in the Securities Escrow Agreement, dated as of
November 7, 2011, among the Company and the Purchaser.  Any terms not herein defined shall have the meanings assigned to them
in such Securities Escrow Agreement.

 

    	 

    	 	

    
 

6.          Waiver
of Liquidation Distributions. In connection with the Placement Warrants purchased pursuant to this Agreement, the Purchaser
hereby waives any and all right, title, interest or claim of any kind in or to any liquidating distributions by the Company in
the event of a liquidation of the Company upon the Company’s failure to timely complete a Business Combination. For purposes
of clarity, any shares of common stock purchased in the IPO or the aftermarket by the Purchaser shall be eligible to receive any
liquidating distributions by the Company.

 

7.          Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants on behalf of itself to the Company that:

 

7.1     The
Purchaser is an “accredited investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities
Act.

 

7.2     The
Placement Warrants are being acquired by the Purchaser for its own account, only for investment purposes and not with a view to,
or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act.

 

7.3     The
Purchaser has the full right, power and authority to enter into this Agreement and this Agreement is a valid and legally binding
obligation of the Purchaser enforceable against the Purchaser in accordance with its terms.

 

8.          Waiver
and Indemnification. The Purchaser hereby waives any and all rights to assert any present or future claims, including any right
of rescission, against the Company with respect to its purchase of the Placement Warrants, and the Purchaser agrees to indemnify
and hold the Company harmless from all losses, damages or expenses that relate to claims or proceedings brought against the Company
by the Purchaser of the Placement Warrants or its transferees, heirs, assigns or any subsequent holders of the Placement Warrants.

 

9.          Counterparts;
Facsimile. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same instrument. This Agreement or any counterpart
may be executed via facsimile transmission, and any such executed facsimile copy shall be treated as an original.

 

10.          Governing
Law. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of
the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of any other jurisdiction. Each of the parties hereby agrees that any action, proceeding or claim against it arising out of
or relating in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States
District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be
exclusive. Each of the parties hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum.

 

[Signature Page Follows]

 

    	 

    	 	

    
 

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

 

	 	
        SELWAY CAPITAL ACQUISITION

        CORPORATION

	 	 
	 	By:	/s/ Yaron Eitan
	 	Name:	Yaron Eitan
	 	Title:	Chief Executive Officer

 

	 	Purchaser:
	 	SELWAY CAPITAL HOLDINGS LLC
	 	 
	 	By:	/s/ Yaron Eitan
	 	Name:	Yaron Eitan
	 	Title:	Board Manager

 

 

 

 

Placement Warrant Purchase AgreementExhibit 10.6

 

 

THIRD AMENDMENT 

TO

NOTE AND WARRANT PURCHASE AGREEMENT

 

Third
Amendment to Note and Warrant Purchase Agreement (this “Amendment”), dated as of November 24, 2011, by and
between Lapis Technologies Inc., a Delaware corporation (the “Company”), and UTA Capital LLC, a Delaware limited
liability company (the “Purchaser”).

 

W I T N E S S E T H :

 

WHEREAS, the Company and the Purchaser entered
into a Note and Warrant Purchase Agreement, dated as of July 12, 2011, as amended on August 16, 2011 and as further amended on
August 31, 2011 (the “Agreement”), pursuant to which, among other things, the Company agreed to issue to the
Purchaser secured promissory notes and warrants, on the terms and subject to the conditions set forth in the Agreement; and

 

WHEREAS, pursuant to Section 14.4 of the Agreement, the Company and the Purchaser desire to amend the Agreement as provided
herein.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements hereinafter set forth herein and for other good and valuable consideration, the receipt and sufficiency
of which are hereby mutually acknowledged, the parties agree as follows:

 

Section 1.1.Amendment to the
Agreement.

 

(a)Amendment to Section 6.2(a)(i).
Section 6.2(a)(i) of the Agreement is hereby deleted in its entirety and restated to read as follows:

 

“(i)have or incur,
or permit any of its Subsidiaries to have or incur any additional Indebtedness, other than (a) the Indebtedness represented by
the Notes, (b) Indebtedness disclosed on Schedule 4.29, (c) from and after the Initial Closing until such time, if any,
as the Second Closing occurs, (x) Indebtedness secured by subordinated liens for money borrowed by the Company or the Subsidiaries
of not more than $6,500,000 (the “Sub Debt Limit”), and (y) guarantees which do not exceed the sum of (I) $2,500,000
plus (II) an amount equal to the Sub Debt Limit less the aggregate principal amount of all Indebtedness (other than
unsecured loans issued by the government of Israel to the Company or the Subsidiaries) secured by subordinated liens for money
borrowed by the Company or the Subsidiaries outstanding at any time, and (d) from and after the Second Closing, if any, (x) Indebtedness
secured by subordinated liens for money borrowed by the Company or the Subsidiaries of not more than $11,000,000 and (y) guarantees
which do not exceed $4,500,000; provided, however, that the aggregate additional Indebtedness that the Company and
its Subsidiaries are permitted to incur in accordance with this Section 6.2(a) shall be increased by an amount equal to
50% of the amount of principal on the Notes repaid by the Company to the Purchaser;”

 

Section 1.2Miscellaneous.

 

(a)Reference to and Effect on
the Agreement. This Amendment modifies the Agreement to the extent set forth herein, is hereby incorporated by reference into
the Agreement and is made a part thereof. Except as specifically amended by this Amendment, the Agreement shall remain in full
force and effect in accordance with its terms and is hereby ratified and confirmed.

 

(b)Execution. This Amendment
may be executed in counterparts, all of which when taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties
need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or email attachment,
such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile or email-attached signature page were an original thereof.

 

    	 

    	 

    
 

(c)Entire Agreement. This
Amendment and the Transaction Documents (as defined in the Agreement), together with the exhibits and schedules hereto and thereto,
contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

 

(d)Governing Law; Venue; Waiver
of Jury Trial. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AMENDMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS
OF LAWS THEREOF TO THE EXTENT THAT THE GENERAL APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. THE COMPANY
AND PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW
YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR PURCHASER HEREUNDER, ARISING FROM OR IN
CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN, AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT
TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR PURCHASER, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO
THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL
SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED
OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER
THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING
CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY AND
PURCHASER HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

[SIGNATURE PAGE
FOLLOWS]

 

    	 

    	 

    

IN WITNESS WHEREOF, the parties hereto have
executed this Amendment on the date first above written.

 

	 	THE COMPANY:
	 	 
	 	LAPIS TECHNOLOGIES, INC.
	 	 
	 	 
	 	By:	
        /s/ David Lucatz

	 	 	Name:	David Lucatz
	 	 	Title:	President and Chief Executive Officer
	 	 	 
	 	Address:
	 	70 Kinderkamack Road
	 	Emerson, New Jersey
	 	07630
	 	Email Address: david@dl-capital.com
	 	Facsimile Number: 9723-533-5129

 

 

	 	PURCHASER:
	 	 
	 	UTA CAPITAL LLC
	 	By:	YZT Management LLC, its Managing Member
	 	 
	 	 
	 	By:	
        /s/ Udi Toledano

	 	 	Name:	Udi Toledano
	 	 	Title:	Managing Member
	 	 	 
	 	Address:
	 	100 Executive Drive
	 	Suite 330
	 	West Orange, NJ 07052
	 	Email Address: udi@aatcap.com
	 	Facsimile Number: 973-736-0201

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