Document:

Exhibit 10.18

 

SHARE PURCHASE AGREEMENT

 

This Share
Purchase Agreement (this “Agreement”)
is entered into as of April 4, 2006, by and among Radview Software Ltd.,
an Israeli corporation, corporate registration number 511627952, with its
principal offices in Israel located at 2 Habarzel Street, Tel Aviv 69710,
Israel and its principal offices in the U.S.A. located at 7 New England
Executive Park, Burlington, MA 01803 (the “Company”)
and Fortissimo Capital Fund GP, LP on behalf of the several parallel partnerships
for which it serves as the General Partner, whose principal offices are located
at 14 Hamelacha Street, Park Afek, Rosh Haayin 48091, Israel (the “Lead  Investor”),
Shem Basum Ltd., an Israeli company, having its address at 8 Hanna Senesh St.,
Kfar Saba, Israel (“Beilis”); Mr. Yehuda
Zisapel, an individual having his address at 24 Raoul Wallenberg Street, Tel
Aviv 69719, Israel (“Zisapel”) and
Michael Chill, an individual having his address at 210 West 89th
Street Apt. 4-N, New York, NY 10024, U.S.A. (“Chill”).
Each of the Lead Investor, Zisapel, Beilis and Chill being referred to
individually as an “Investor”, and
collectively, as the “Investors”.

 

	WHEREAS
	Lead Investor and the Company have entered into a term sheet dated January 12, 2006, with respect to several transactions with the Company including an equity investment, convertible loan and bridge loan (the “Term Sheet”);

 

	WHEREAS
	pursuant to the Term Sheet, the Lead Investor shall following the date hereof or has prior to the date hereof, (i) in the framework of this Agreement, invest, together with the Investors, up to US$3,000,000 in the Company, each Investor investing the amounts set forth opposite such Investor’s name on Schedule A attached hereto (the “Equity Investment”); and (ii) in the framework of the convertible loan, lend the Company, together with the Investors, US$250,000 at the First Closing (defined herein), subject to the approval of the Company’s shareholders of the transactions contemplated herein, which loan shall bear interest at the annual rate of 8% and be convertible together, at the election of the lenders, with all interest accrued thereon into Preferred Shares of the Company on the terms and conditions set forth therein, each Investor advancing the amounts set forth opposite such Investor’s name on Schedule A hereto (the “Convertible Loan” and “Convertible Loan Agreement”, respectively); and (iii) in the framework of a Bridge Loan Agreement, the Lead Investor made available to the Company a bridge loan of up to US$500,000, all under the terms and conditions set forth in a certain Bridge Loan Agreement, dated January 26, 2006 (the “Bridge Loan” and “Bridge Loan Agreement”, respectively); and

 
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:
 

1.             INTERPRETATION; DEFINITIONS

 

1.1.          The
headings of the sections and subsections of this Agreement are for convenience
of reference only and are not to be considered in construing this Agreement.

 

1.2.          In
this Agreement, the following capitalized terms shall have the meanings set
forth below and all terms defined in the recitals to this Agreement and below
are incorporated herein by reference:

 

1.2.1.       “Board” means the Company’s board of
directors.

 

1.2.2.       “Convertible Securities” means options to
purchase and/or rights to subscribe for Ordinary Shares, and/or securities by
their terms convertible into and/or exchangeable for Ordinary Shares and/or
options or warrants to purchase and/or rights to subscribe for such convertible
and/or exchangeable securities of the Company.

 

1.2.3.       “Director(s)” means a member(s) of the
Board.

 

1.2.4.       “Fully Diluted Basis” means all issued
Shares, and all outstanding options, warrants or any other securities issued by
the Company, which are convertible or exchangeable into Shares.

 

1.2.5.       “Management Agreement” means that certain
Management Agreement referred to in Section 11 below, in the form attached
hereto as Schedule 11.2.

 

1.2.6.       “Ordinary Shares” means ordinary shares of the
Company, nominal value NIS 0.01 per share.

 

1.2.7.       “Original Issue Price” with respect to a
share means, for each Series A Preferred Share, US$0.03; and for each Series B
Preferred Share, US$0.04.

 

 

1.2.8.       “Preferred Directors” means, those Directors
designated for appointment to the Board by the Lead Investor.

 

1.2.9.       “Preferred Shares” means Series A
Preferred Shares and Series B Preferred Shares.

 

1.2.10.     “Recapitalization Event” means any share
split, share subdivision or combination, distribution of a share dividend or
recapitalization relating to the Company’s share capital.

 

1.2.11.     “Registration Rights Agreement” means that
certain Registration Rights Agreement referred in Section 10 below, in the
form attached hereto as Schedule 10.

 

1.2.12.     “Series A Preferred Shares” means
Preferred A Shares of the Company, nominal value NIS 0.01 each.

 

1.2.13.     “Series B Preferred Shares” means
Preferred B of the Company, nominal value NIS 0.01 each.

 

1.2.14.     “Subsidiary” means with respect to any
entity, the possession directly or indirectly of at least 25% (twenty five
percent) of the voting power, the right to appoint at least 50.1% of the
members of the board of directors or the right to receive at least 50.1% of the
distributed profits of such entity.

 

2.             FIRST CLOSING - INVESTMENT;
ACQUIRED SHARES; GRANT OF WARRANTS

 

2.1.          At
the First Closing (as defined below), the Company shall issue and the Investors
shall acquire 25,000,000 newly issued Series A Preferred Shares (the “Acquired Shares”) in accordance with the
terms of this Section 2, free and clear of any lien, encumbrance, debt, or
any other third party right whatsoever at a price per share of US$0.03 (the “Price Per Share”) and for an aggregate
purchase price of US $750,000 for all the Acquired Shares (the “Purchase Price”). Actual issuances and
purchase of the Acquired Shares shall be in accordance with the terms and
conditions set forth in the sub-sections below of this Section 2
(including Section 2.5).

 

2.2.          Each
Investor shall pay its respective portion of the Purchase Price to the Company
at the Closing in immediately available funds against issuance to each Investor
of its respective portion of the Acquired Shares, all as set forth opposite
each Investor’s name appearing in Schedule A
attached hereto. The Acquired Shares, when issued in accordance with
this Agreement, will be duly authorized, validly issued, fully paid,
non-assessable, and free of any preemptive rights or any third party rights,
and will have the rights, preferences, privileges, and restrictions set forth
in the Amended Articles, and will be free and clear of any liens, claims,
encumbrances or third party rights whatsoever (collectively, “Encumbrances”).

 

2.3.          At
the First Closing, the Company shall issue to the Investors 18,750,000 warrants
in accordance with the terms of this Section 2 (the “Warrants”) exercisable into 18,750,000
newly issued Series B Preferred Shares (the “Warrant Shares”) for an exercise price of US$0.04 per Warrant
Share (the “Exercise Price”). Upon
issuance, the Warrant Shares, will be duly authorized, validly issued, fully
paid, non-assessable, and free of any preemptive rights, third party rights and
Encumbrances. A form of the Warrants to be issued to the Investors is
attached hereto as Schedule 5.2.1(c).
Actual grants of the Warrants shall be in accordance with the terms and
conditions set forth in the sub-sections below of this Section 2.

 

2.4.          The
Warrants shall be issued to the Investors at the First Closing for no
additional payment or consideration. The Warrants may be exercised by the
holders thereof in whole or in part, on a cashless basis or against payment of
the applicable Exercise Price per Warrant Share, at any time, from time to
time, from the First Closing and until the fifth (5th) anniversary thereof
(the “Exercise Period”). All
unexercised Warrants shall expire immediately after the end of the Exercise
Period.

 

2.5.          On
and subject to the terms and conditions of this Agreement, at the First
Closing, the Company shall sell, issue and allot to each Investor, the number
of Acquired Shares and Warrants set forth against its name on Schedule A; provided however, that
the obligation to issue Acquired Shares and Warrants to Beilis is contingent
upon obtaining the required approvals pursuant to Israeli law and that any
failure to obtain such approvals and effect such issuance shall not mitigate
from the Company’s obligations to the Investors (other than Beilis) or the
Investors’ (other than Beilis) obligations under this Agreement.

 

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3.             ADDITIONAL CLOSINGS - INVESTMENT;
ADDITIONAL ACQUIRED SHARES; GRANT OF ADDITIONAL WARRANTS 

 

3.1.          Following
the First Closing and until the date, which is eighteen (18) months following
the First Closing (the “Investment Period”),
each Investor may, at its sole discretion, invest, in one or more investment
transactions (each such transaction consisting of at least $250,000), an
additional amount of up to US$2,250,000. Each Investor shall be entitled to
participate in each such additional investment up to the maximum amounts set
forth opposite such Investor’s name on Schedule B
hereto; provided however, that the obligation to allow Beilis’ participation is
contingent upon obtaining the required approvals pursuant to Israeli law. Each
such additional investment shall be effected in a separate closing, at which
time the Company shall issue and the Investors shall acquire such number of
additional Acquired Shares as is obtained by dividing the applicable amount to
be invested according to the determination of the Lead Investor (each such
amount being referred to as an “Additional
Purchase Price”), by the Price Per Share (each such additional
closing being referred to as an “Additional
Closing” and any additional Acquired Shares to be issued shall be
referred to as “Additional Acquired Shares”,
respectively). The total number of Additional Acquired Shares to be issued at
all Additional Closings taken together shall not exceed 75,000,000. Any
Additional Acquired Shares issued at any of the Additional Closings, when
issued in accordance with the terms of this Section 3, will be duly
authorized, validly issued, fully paid, non-assessable, and free of any
preemptive rights, third party rights and Encumbrances. Actual issuances and
purchase of any Additional Acquired Shares shall be in accordance with the
terms and conditions set forth in the sub-sections below of this Section 3.
If either one of Beilis, Zisapel or Chill elects not to participate in one or
more of the Additional Closings, then the Lead Investor shall have the right to
invest, in addition to the amount set forth opposite the Lead Investor’s name
on Schedule B, all or part of
the amounts not invested by any one of Beilis, Zisapel or Chill.

 

3.2.          Each
Investor investing at any Additional Closing shall pay its respective pro-rata
portion of the Additional Purchase Price to the Company at the applicable
Additional Closing against issuance to each Investor of its respective pro-rata
portion of the Additional Acquired Shares, all as shall be set forth, at each
Additional Closing, opposite each Investor’s name in an amended Schedule A to be attached hereto
at the time of each such Additional Closing.

 

3.3.          At
each Additional Closing, the Company shall issue to the Investors additional
Warrants, to purchase additional Warrant Shares, at the Exercise Price (the “Additional Warrants”, and “Additional Warrant Shares”, respectively)
in accordance with the terms set forth in this Section 3. The total number
of Warrants issuable at each Additional Closing shall be determined by dividing
the Additional Purchase Price by the Exercise Price, each Investor receiving
its respective number of Warrants according to its respective portion out of
the applicable Additional Purchase Price. The total number of Additional
Warrants to be issued at all Additional Closings taken together shall not
exceed 56,250,000 that are exercisable into 56,250,000 Warrant Shares at the
Exercise Price. Upon issuance, the Additional Warrant Shares, will be duly
authorized, validly issued, fully paid, non-assessable, and free of any
preemptive rights, third party rights and Encumbrances. The Additional Warrants
shall be in the form attached hereto as Schedule 5.2.1(c). Actual grants of the Warrants
shall be in accordance with the terms and conditions set forth in the
sub-Sections below of this Section 3.

 

3.4.          At
each Additional Closing, the Additional Warrants shall be issued to the
Investors that participated at each such Additional Closing for no additional
payment or consideration. The Additional Warrants may be exercised by the
holders thereof in whole or in part, on a cashless basis or against payment of
the applicable Exercise Price per Additional Warrant Share, at any time, from
time to time, from the time of the Additional Closing at which such Additional
Warrants were issued and until the fifth (5th) anniversary thereof
(the “Additional Warrant Exercise Period”).
All unexercised Additional Warrants shall expire immediately after the end of
the Exercise Period.

 

4.             TERMS OF ACQUIRED SHARES AND
WARRANT SHARES

 

The
Acquired Shares, Additional Acquired Shares, Warrant Shares and Additional
Warrant Shares, shall, when issued to the Investors, have such rights,
preferences and obligations as are set forth in the Company’s Amended and
Restated Articles of Association, in the form attached hereto as Schedule 4 (the “Amended Articles”).

 

5.             CLOSINGS

 

5.1.          First Closing. The transactions
contemplated hereby in Section 2 above, shall take place at a first
closing (the “First Closing”) to
be held at the offices of Amit, Pollak, Matalon & Co., NYP Tower 19th
Floor 17 Yitzhak Sade Street, Tel Aviv, Israel, within fourteen (14) days
following the date of the Company’s shareholders meeting convened to approve
this Agreement, or at such other date, time and place as the Company and the
Lead Investor shall have mutually agreed to.

 

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5.2.          At
the First Closing, the following transactions shall occur simultaneously:

 

5.2.1.       The
following documents shall have been provided to the Lead Investor and each of
the Investors:

 

(a)   A
resolution of the Board in the form reasonably satisfactory to the Lead
Investor: (i) authorizing the execution, performance and delivery of this
Agreement and all related documents hereunder, (ii) approving the
Management Agreement, and (iii) approving the issuance of all the Acquired
Shares, Additional Acquired Shares, Warrants, Warrant Shares, Additional
Warrants and Additional Warrant Shares, on the date of the First Closing and
the applicable Additional Closings, at all times, conditional upon payment of
Purchase Price and/or the Additional Purchase Price and/or in the case of the
Warrant Shares and Additional Warrant Shares, the Exercise Price, as applicable
for each Closing;

 

(b)   Minutes
of the general meeting of the Company’s shareholders signed by the chairman of
the meeting in a form reasonably satisfactory to the Lead Investor: (i) approving
the terms of this Agreement and the transactions contemplated hereunder, including
but not limited to the Registration Rights Agreement, (ii) approving the
Amended Articles, including an increase of the Company’s authorized share
capital and the creation of the Preferred Shares, (iii) approving the
terms of the Management Agreement; (iv) appointing the Preferred
Directors; and (v) if the required corporate approvals were previously
obtained, approving  the terms of new
indemnification agreements to be entered into with the Company’s officers and
Directors as contemplated by this Agreement;

 

(c)   The
Warrants in the form attached hereto as Schedule 5.2.1(c) duly executed by the Company
and issued to each Investor, in the amounts set forth in Schedule A;

 

(d)   Validly
issued share certificates in the names of each Investor representing the
Acquired Shares, together with signed notices to the Registrar of Companies
regarding the Acquired Shares to be issued in the names of the Investors at the
First Closing;

 

(e)   A
compliance certificate, in the form attached hereto as Schedule 5.2.1(e) duly
executed by the Chief Executive Officer of the Company, dated as of the date of
the First Closing, confirming and certifying that the representations and
warranties set forth in Section 8 of this Agreement are true and correct
in all material respects as of and through the date of First Closing, that the
Company has performed and complied in all material respects with all its
covenants, agreements, and undertakings as set forth herein;

 

(f)    Duly
executed opinion of Sharir, Shiv, Friedman & Co., counsel to the
Company, in the form attached hereto as Schedule 5.2.1(f), dated as of the date of the First
Closing

 

(g)   Copy
of a termination agreement or termination letter of the Investor Rights
Agreement, dated December 13, 1999, as contemplated by Section 12.7
of this Agreement;

 

(h)   Copies
of termination letters of the existing indemnification agreements to be
terminated in accordance with the provisions of Section 12.8 below;

 

(i)    If
required corporate approvals are previously obtained, duly executed new indemnification
agreements as contemplated by Section 12.9 of this Agreement.

 

5.2.2.       The
Company and the Investors shall execute and deliver the Registration Rights
Agreement attached hereto as Schedule 10.

 

5.2.3.       The
Company and the Lead Investor shall execute and deliver the Management
Agreement attached hereto as Schedule 11.2.

 

5.2.4.       Each
of the Investors shall pay to the Company its proportional share of the
Purchase Price as set next to its name on Schedule A,
by way of instructing a bank transfer to the Company’s account, pursuant to
wiring instructions given in writing by the Company prior to the First Closing.

 

5.3.          Additional Closings.  The transactions contemplated hereby in Section 3
above, shall take place in Additional Closing(s), at such time(s) as determined
by the Lead Investor, each such Additional Closing to be held at the offices of
Amit, Pollak, Matalon & Co., NYP Tower 19th Floor 17
Yitzhak Sade Street, Tel Aviv, Israel, within fourteen (14) days following
receipt by the Company of written notice by the Lead Investor of its intention
to effect an Additional Closing, provided however, that no

 

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Additional
Closing takes place after the date, which is eighteen (18) months following the
First Closing.

 

5.4.          At
each Additional Closing, the following transactions shall occur simultaneously:

 

5.4.1.       The
following documents shall have been provided to the Lead Investor and each of
the Investors:

 

(a)   The
Additional Warrants in the form attached hereto as Schedule 5.2.1(c) duly
executed by the Company and issued to each Investor, in the amounts set forth
in the amended Schedule A
reflecting the amounts being invested in each such Additional Closing; and

 

(b)   Validly
issued share certificates for the Additional Acquired Shares, together with
signed notices to the Registrar of Companies regarding the Additional Acquired
Shares to be issued in the names of the Investors at each Additional Closing.

 

5.4.2.       Each
of the Investors shall pay to the Company its proportional share of the
Purchase Price as set next to its name on the amended Schedule A reflecting the amounts
being invested in each such Additional Closing, by way of instructing a bank
transfer to the Company’s account, pursuant to wiring instructions given in
writing by the Company prior to the applicable Additional Closing.

 

6.             CLOSING CONDITIONS FOR FIRST
CLOSING

 

6.1.          The
Closing of the transactions contemplated hereunder and the obligations of the
Investors at the First Closing are subject to the following conditions
precedent, any one or more of which may be waived in whole or in part by
the Lead Investor:

 

6.1.1.       Receipt
by the Company of the approval of any required regulatory or governmental
authority, if any;

 

6.1.2.       The
Company’s obtaining all required corporate approvals, including the approval of
the Company’s shareholders for the terms of this Agreement and the transactions
contemplated hereunder and any other related transaction;

 

6.1.3.       All
representations and warranties of the Company contained herein shall be true
and correct in all material respects at the time of the First Closing as though
made again at that time;

 

6.1.4.       The
Company shall have performed and complied with all obligations and covenants
required to be performed or complied with by the Company prior to the First
Closing in all material respects;

 

6.1.5.       No
action, proceeding, investigation, regulation or legislation shall have been
instituted, threatened or proposed before any court, governmental agency or
legislative body to enjoin, restrain, prohibit or obtain substantial damages in
respect of, or which is related to, or arises out of, this Agreement or the
consummation of the transactions contemplated hereby.

 

6.2.          The
Closing and the obligations of the Company to issue, at the First Closing, the
Acquired Shares and the Warrants to the Investors are subject to the payment by
each Investor of its respective portion of the Purchase Price at the First
Closing; and

 

7.             CAPITALIZATION

 

7.1.          [INTENTIONALLY OMITTED]

 

7.2.          The
Company agrees and undertakes that until the First Closing it will not sell
issue, allot, grant or transfer in any other way any shares and/or any
Convertible Securities (collectively, the “Securities”)
to any person or entity, except for (a) issuances of Ordinary Shares to
holders of Securities which are outstanding on the date hereof pursuant to the
respective terms and conditions of those Securities, (b) grants of options
to purchase Ordinary Shares to employees, officers and directors under the Company’s
existing approved plans and obligations, provided, however, that in the
aggregate, the Company will not grant more than 500,000 options, or (c) as
approved in advance and in writing by the Lead Investor.

 

8.             REPRESENTATIONS AND WARRANTIES OF
THE COMPANY 

 

The
Company hereby represents and warrants to the Investors, and acknowledges that
the Investors are entering into this Agreement in reliance thereon, as follows:

 

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8.1.          Organization.
 The Company is a corporation duly incorporated and validly existing under
the laws of the State of Israel and has the legal capacity and authority to
conduct business in each jurisdiction in which its business is conducted or its
properties are located, except where the failure to be so would not reasonably
be expected to constitute: (a) a material adverse change in, or have a
material adverse effect upon, the operations, business, properties, or
condition (financial or otherwise) of the Company; (b) a material
impairment of the ability of the Company to perform under this Agreement
and any agreements ancillary and attached hereto as schedules; or (c) a
material adverse effect upon the legality, validity, binding effect or
enforceability against the Company of this Agreement and any ancillary
agreement hereto (the occurrence of either of (a), (b), or (c) would
constitute a “Material Adverse Effect”).

 

8.2.          Authorization,
Validity, Conflict and Enforceability.  The Company has all franchises, permits and
licenses necessary for the conduct of its business as now being conducted, and,
to the best of the Company’s knowledge, as proposed to be conducted by it, the
lack of which would reasonably be expected to have a Material Adverse Effect.
The Company has not received any notices of default relating to any such
franchises, permits and licenses. Neither the execution, delivery and
performance of this Agreement and any and all ancillary agreements hereto, nor
compliance by the Company with the terms thereof, will conflict with or result
in a breach or violation of, any of the terms, conditions and provisions of: (i) the
Company’s articles of association or other charter or organizational document
of the Company in effect prior to and as at the date hereof (the “Existing Organizational Documents”); (ii) any
judgment, order, injunction, decree, or ruling of any court or governmental
authority (except as set forth in Section 8.23), domestic or foreign; (iii) any
agreement, contract, lease, license or commitment to which the Company is a
party or to which it is subject; (iv) any applicable law the incompliance
therewith shall constitute a Material Adverse Effect. Except as set forth in
the Schedule 8.2 hereto, such execution, delivery and compliance will not (a) give
to others any rights, including rights of termination, cancellation or
acceleration, in or with respect to any agreement, contract, or commitment
referred to in this Section 8.2, or to any of the properties of the
Company, or (b) except as set forth in Section 8.23, otherwise require
the consent or approval of any person, which consent or approval has not
heretofore been obtained. This Agreement and any ancillary agreement hereto,
when executed and delivered by or on behalf of the Company, shall constitute
valid and legally binding obligations of the Company, legally enforceable in
accordance with their terms (except as may be limited by bankruptcy,
insolvency and similar laws affecting the enforcement of creditors’ rights in
general, and subject to general principles of equity).

 

8.3.          Records.
 The Company has delivered to the
Investors true and accurate copies of the Company’s incorporation documents as
of the date of this Agreement, including the Company’s Existing Articles. The
Company maintains all corporate, shareholder or other records and registers
required by law and such records are complete and accurate in all material
respects and are being maintained in compliance with applicable laws. True and
correct copies of such records have been delivered to the Investors.

 

8.4.          Public
Listing.  Between August 2000
and September 2004 the Ordinary Shares of the Company were registered for
trading on the Nasdaq. On September 20, 2004, the Company’s Ordinary
Shares were de-listed from trade on Nasdaq.

 

8.5.          Share
Capital.  As of the date of this
Agreement, the registered and authorized share capital of the Company is NIS
400,000 divided into 40,000,000 Ordinary Shares, of which no more than
20,525,682 Ordinary Shares are issued and outstanding as of March 15,
2006. In addition, as of March 15, 2006, the Company had issued and
outstanding Convertible Securities exercisable into no more than 5,447,596
Ordinary Shares. Immediately prior to the First Closing, the Company’s
registered and authorized share capital shall be NIS 5,000,000, divided into;
300,000,000 Ordinary Shares, of which no more than 20,525,682 shall be issued
and outstanding; 125,000,000 Series A Preferred Shares and 75,000,000 Series B
Preferred Shares. Since March 15, 2006, there has been no change in the
Company’s share capital, except for issuances and grants of Securities in
accordance with Section 7.2 above. Other than as listed in Schedule 8.5, there are no
outstanding or authorized subscriptions, options, warrants, calls, rights,
commitments, or any other agreements of any character, directly or indirectly
obligating the Company to issue any Securities.

 

8.6.          Employee
Plans.  Except as set forth in Schedule 8.6, the Company has not
adopted any plan for the benefit of its officers, employees, directors,
consultants and/or service providers, which require or permit the issuance,
sale, purchase or grant of any Securities.

 

8.7.          Subsidiaries.
 Schedule 8.7
lists all of the Subsidiaries of the Company, specifying with respect to each
such Subsidiary, the percentage of ownership of the Company in such Subsidiary.
Each Subsidiary of the Company is a corporation duly incorporated (or
organized) and validly existing

 

6

 

under the laws
of the jurisdiction under which it was incorporated and has the legal capacity
and authority to conduct business in each jurisdiction in which its business is
conducted or its properties are located, except where the failure to be so
would not reasonably be expected to constitute a Material Adverse Effect. 

 

8.8.          Shareholders
Agreements.  Other than as set forth
in Schedule 8.8 hereto
and the Registration Rights Agreement contemplated by this Agreement to be
executed as at the First Closing, there are no shareholders, voting,
registration rights agreements or any other agreements or undertakings relating
to the share capital of the Company.

 

8.9.          Dividends
and Redemption.  Other than as set
forth in Schedule 8.9
hereto, the Company has not declared or paid any dividends, nor has the Company
distributed any of its assets, except for the grant of licenses to the Company’s
products and sales in the ordinary course of business. Other than as set forth
in Schedule 8.9
hereto, the Company has not redeemed any of the Company’s Securities nor has it
undertaken to redeem any of its Securities.

 

8.10.        Full
Disclosure.  None of the
representations or warranties made by the Company in this Agreement (including
any exhibits and schedules) as of the date such representations and warranties
are made, when taken together, contains any untrue statement of a material
fact, or omits any material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances under which
they are made, not misleading as of the time when made or delivered.

 

8.11.        Financial
Statements.  The Company’s audited
balance sheet as at December 31, 2004, and the related financial
statements for the period then ending (including the notes thereto) included in
its Annual Report on Form 10-K filed on March 31, 2005 (the “Annual Report”), and the Company’s
un-audited balance sheet at September 30, 2005 and related un-audited
financial statements for the period then ending (including the notes thereto)
included in its form 10-Q filed on November 18, 2005 (collectively,
the “Financial Statements”), which
have been delivered to the Lead Investor, have been prepared in accordance with
United States generally accepted accounting principles consistently applied,
present fairly the Company’s financial condition as of such date and the
results of operations of the Company for such period, are correct and complete
and are consistent with the books and records of the Company. The Annual Report
and all reports the Company has filed with the U.S. Securities and Exchange Commission
(the “SEC”) thereafter, when
filed, were free of material errors and omissions, and as of the date hereof
continue to be free of material errors and omissions, except to the extent
modified or superceded by disclosures made in this Agreement, including the
Schedules hereto, or by subsequent filings with the SEC.

 

8.12.        Reports.
 The Company has timely filed, or caused
to be filed, with the appropriate authorities or got extension for, all
filings, reports and returns required to be filed by it, or with respect to it,
its business, operations or assets, including without limitation, all tax
returns, and as of the time of filing, such filings, reports and returns were
true and complete in all material respects.

 

8.13.        Due
Authorization.  The Acquired Shares, Warrants, Warrant Shares, when
issued, at the Closing or upon exercise of the Warrants, as applicable, shall
all be duly authorized, validly issued, and upon payment of applicable Price
Per Share and/or the Exercise Price thereof - fully paid, non-assessable and
clear and free from any lien, encumbrance, or any other third party right
whatsoever.

 

8.14.        Approvals. 
The execution and delivery of this Agreement and the full performance of all
other obligations and undertakings of the Company contemplated hereunder
including the issuance of the Acquired Shares, Additional Acquired Shares,
grant and issuance of the Warrants and Additional Warrants and the issuance of
the Warrant Shares and Additional Warrant Shares, shall have been duly approved
by the Board. The Company shall seek shareholder approval under applicable law
prior to the First Closing. Subject to such shareholder approval and except as
otherwise set forth on Schedule 8.14,
all acts required to be taken by the Company to authorize the execution and
delivery of this Agreement, the performance of each of its obligations
hereunder and the consummation of the transaction contemplated hereunder have
been duly taken and are legally valid and in full force and effect.

 

8.15.        Compliance
with Laws.  The Company (i) has
complied with all domestic and foreign laws, rules, regulations and orders
applicable to its business and operations and (ii) except as set forth in
the Schedule 8.15
hereto, has further complied with all licensing, permits and requirements
necessary to lawfully conduct the business in which it is engaged, in each of (i) and
(ii) above where noncompliance with would have a Material Adverse Effect.

 

8.16.        No
Integrated Offering.  Neither the
Company, nor any person acting on its behalf, has directly or indirectly made
any offers or sales of any security or solicited any offers to buy any security
under

 

7

 

circumstances
that would cause the offering of the Acquired Shares, the Warrants and the
Warrant Shares pursuant to this Agreement to be integrated with prior offerings
by the Company for purposes of the Securities Act of 1933, as amended (the “Securities Act”) such that would subject
the offering, issuance and sale of the Acquired Shares, the Warrants and the
Warrant Shares hereunder to the registration requirements of Section 5 of
the Securities Act, nor will the Company take any action or steps that would
cause the offering of the Securities to be integrated with other offerings

 

8.17.        Binding
Obligation.  This Agreement, when
executed and delivered by or on behalf of the Company, shall, subject to the
shareholders’ approval and other consents to be obtained by the Company on or
before the date of Closing under any applicable law, constitute the valid and
legally binding obligation of the Company, legally enforceable against the
Company in accordance with its terms. There is no consent, approval, order,
license, permit, action by, or authorization of, or filing with any
governmental authority (including any notifications) or any person that is
required to be obtained or made on the part of the Company prior to the
Closing that has not been, or will not have been, obtained by the Company prior
to the Closing in connection with the valid execution, delivery, and
performance of this Agreement.

 

8.18.        Brokers’
or Finders’ Fees.  Other than as set
forth in Schedule 8.18
hereto, no agent, finder or broker acting on behalf of or under the authority
of the Company, is or will be entitled to any broker’s or finder’s fee or any
other similar commission or fee in connection with the transactions
contemplated hereby. Notwithstanding anything herein to the contrary, in the
event of any breach of the provisions of this Section, the Company shall fully
indemnify and compensate the Investors for any damage or loss, which they
actually incur due to such breach.

 

8.19.        Effectiveness. 
Each representation and warranty herein is deemed to be made on the date of
this Agreement (unless specifically stated otherwise) and as of the date of the
First Closing.

 

8.20.        Intellectual
Property.  In this Agreement, “Intellectual Property” means all
intellectual property rights, whether or not patentable, including without
limitation, patents, trademarks, service marks, trade names, internet domain
names and copyrights, applications, licenses, and rights with respect to the
foregoing, an all trade secrets, know-how, inventions, designs, processes,
works of authorship, computer programs and technical data and information. To
the best of the Company’s knowledge, the Company has the right to use all of
the Intellectual Property required for its business as currently conducted and
as proposed to be conducted. To the best of the Company’s knowledge (i) no
Intellectual Property used or proposed to be used in the business of the
Company as currently conducted has infringed or infringes upon any Intellectual
Property rights of others; (ii) the use of such Intellectual Property in
the business of the Company as currently conducted will not constitute an
infringement, misappropriation or misuse of any Intellectual Property rights of
any third party; and (iii) no third party has the right to assert any
claim regarding the use of, or challenging or questioning the Company’s right
or title in, any of such Intellectual Property. The Company has taken and will
continue to take all measures reasonable and customary in the field of the
Company’s business and the Company’s resources, including but not limited to
measures against unauthorized disclosure, to protect the secrecy,
confidentiality and value of its Intellectual Property. Except for intellectual
property developed by the Company for Ixia in connection with a binary release of Security Builder v3.2 for
IXIA’s PPC750 processor (which intellectual property is not used by the
Company), all Intellectual Property that has been developed or is being
developed on behalf of the Company by any employee or third party is or shall
be the sole property of the Company. The Company has not received any written
or oral communications alleging that the Company and/or its products have
violated or by conducting its business as currently being conducted, would
violate, any of the Intellectual Property of third parties.

 

8.21.        Legal
Proceedings.  There are no outstanding
legal proceedings against or initiated by the Company in connection with the
Company or its business, and except as set forth in Schedule 8.21 hereto, the Company
is not aware of any legal proceedings that any third parties intend or threaten
to initiate against the Company in connection with the Company or its business

 

8.22.        Loans
and Charges.  Except as set forth in Schedule 8.22 hereto, the Company
does not have any outstanding loans to any person, not made in the Company’s
ordinary course of business, and is not obligated to make any such loans or
advances. Other than the fixed and floating charges made by the Company in
favor of the Lead Investor in the framework of the Bridge Loan Agreement, the
Company has no other charges on its assets.

 

8.23.        Government
Approvals.  Except in connection with
the Israeli Investment Center of the Ministry of Industry, Trade and Labor, the
Company is not required to give notice or obtain any permit, authorization,
license, approval, order, action, designation, declaration or filing with any

 

8

 

governmental
authority or consent from any person in connection with the valid execution,
delivery and performance of this Agreement including any ancillary agreements
hereto and the transactions contemplated herein.

 

9.             REPRESENTATIONS REGARDING THE
INVESTORS, ACQUIRED SHARES AND ADDITIONAL ACQUIRED SHARES

 

Each
Investor hereby represents and warrants to the Company, and acknowledges that
the Company is entering into this Agreement in reliance thereon, as follows:

 

9.1.          Organization.
 Each Investor that is an entity has been
duly organized and validly exists under the laws of the jurisdiction of its
formation. Each Investor has all requisite power and authority to execute and deliver
this Agreement and other agreements contemplated hereby or which are ancillary
hereto and to consummate the transactions contemplated hereby.

 

9.2.          Enforceability.
 This Agreement, when executed and
delivered by the Investor, will constitute a valid, binding, and enforceable
obligation of the Investor.

 

9.3.          Authorization.
 The execution and delivery of this
Agreement and the performance of the obligations of such Investor has been duly
authorized by all necessary corporate action, if applicable, and the
fulfillment of and compliance with the respective terms and provisions hereof
and thereof, and the consummation by such Investor of this Agreement do not and
will not conflict with, or violate any provision of, any law having
applicability to such Investor or any of its respective assets; or result in
any breach of, or constitute a default under any agreement to which such
Investor is a party, except as would not have a material adverse effect on the
Investor or  would not prevent in any way
such Investor from performing its obligations and undertakings under this
Agreement.

 

9.4.          Accredited
Investor.  Each Investor represents
that it is an “accredited investor”, as that term is defined in Rule 501
of Regulation D under Securities Act, and has such business and financial
experience as is required to protect its own interests in connection with its
decision to enter this Agreement and to purchase the Acquired Shares,
Additional Acquired Shares, Warrants, Additional Warrants, Warrant Shares and
Additional Warrant Shares.

 

9.5.          Absence
of Registration.  Each Investor
understands, acknowledges and agrees that the Acquired Shares, Additional
Acquired Shares, Warrants, Additional Warrants, Warrant Shares and Additional
Warrant Shares have not been registered under the Securities Act and may not
be offered or sold in the United States or to US persons unless such shares are
registered under the Securities Act and applicable state securities laws, or an
exemption from the registration requirements of the Securities Act and such
state securities laws is available. The Investors understand that the
certificates evidencing the Acquired Shares, Additional Acquired Shares,
Warrant and the Additional Warrant Shares will be imprinted with a legend in
substantially the following form:

 

“THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). THE SHARES HAVE BEEN
ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE
SECURITIES ACT, OR AN OPINION OF COUNSEL FOR THE HOLDER OF THE SHARES
SATISFACTORY TO RADVIEW SOFTWARE LTD., THAT REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT.”

 

9.6.          Investment
Purpose.  Each Investor represents
and agrees that the Acquired Shares, Additional Acquired Shares, Warrants,
Additional Warrants, Warrant Shares and the Additional Warrant Shares are
purchased and issued for investment purposes, for its own account, and without
present intention to sell or distribute them other than under applicable
securities laws and the terms of this Agreement.

 

9.7.          Receipt
of Information.  Without derogating
from the Company’s undertakings under this Agreement, including the accuracy of
all representations and warranties made by it, at the First Closing, each
Investor will be deemed to have confirmed that it has reviewed the previous
public filings of the Company and it received such information and has
conducted such independent examinations as it deemed necessary.

 

9.8.          Brokers’
or Finders’ Fees.  No agent, finder
or broker acting on behalf of or under the authority of such Investor, is or
will be entitled to any broker’s or finder’s fee or any other similar
commission or fee in connection with the transactions contemplated hereby.
Notwithstanding anything herein to the contrary, in the event of any breach of
the provisions of this Section, such Investor shall fully

 

9

 

indemnify and
compensate the Company for any damage or loss, which they actually incur due to
such breach.

 

9.9.          Effectiveness.
 Each representation and warranty herein
is deemed to be made on the date of this Agreement (unless specifically stated
otherwise) and as of the date of the First Closing. In addition, with respect
to any Investor participating at any Additional Closing, the representations
and warranties made by the Investors herein, except for the representation
contained in Section 9.7 above, are deemed as well to be made as of the
date of any Additional Closing.

 

10.           REGISTRATION RIGHTS

 

The Investors shall be granted
with certain registration rights with respect to the Acquired Shares,
Additional Acquired Shares, Warrant Shares and the Additional Warrant Shares as
set forth in the Registration Rights Agreement attached hereto as Schedule 10 (the “Registration Rights”).

 

11.       ACTIONS PRIOR TO FIRST CLOSING

 

11.1.        General
Meeting of Shareholders.  The Company
will use reasonable efforts to convene a general meeting of its shareholders as
soon as possible and in any event not later than sixty (60) days following the
date of this Agreement (and ninety (90) days if the SEC elects to review the
Company’s proxy materials), to approve, among other things, the terms of this
Agreement (the “Shareholders Meeting”).
The proxy statement materials will be provided to the Lead Investor and the
other Investors for their review.

 

11.2.        Management
Agreement.  The Company and the Lead
Investor shall enter on or before the First Closing into a Management Agreement
in the form attached hereto as Schedule 11.2,
pursuant to which the Lead Investor shall provide management services to the
Company in consideration for: (i) an annual management fee of US $50,000,
payable quarterly, i.e., US$12,500 each quarter (the “Annual Management Fees”); and (ii) an
additional payment of US$70,000 payable at the end of the fiscal year (starting
from 2006) in the event that the Company is profitable in such fiscal year (the
“Additional Fees”), and provided
however, that any payment of such Additional Fees shall be payable only out of
profits of the Company. For the avoidance of doubt, if the Company’s profits
shall not suffice for payment of the Additional Fees, payment shall be made on
the account of such fees up to the then available profits. The Management
Agreement shall be subject to the approval of the Company’s Shareholders
Meeting.

 

11.3.        Board
of Directors.  The Company will use
commercially reasonable efforts to appoint the Preferred Directors at the
Shareholders Meeting, so that following the First Closing the Lead Investor’s
nominees shall have been appointed to fill a majority of the Board, regardless
of the number of members composing the Board. Currently, the number of
Directors the Lead Investor shall be entitled to nominate is four (4) out
of seven (7) Directors constituting the Board. If the Lead Investor
provides to the Company in a timely manner the information required for
inclusion in the Company’s proxy materials for the Shareholders Meeting
relating to the identity and background of the Lead Investor’s board nominees,
the proxy materials will include a proposal to elect those nominees proposed by
the Lead Investor to serve, as members of the Board effective immediately after
the First Closing.

 

11.4.        Adverse
Events.  If at any time prior to the First Closing,
the Lead Investor becomes aware of a particular event or circumstances not in
the Company’s ordinary course of business that are unknown to the Company or
are known to the Company and not reported to the Investors, which have, in the
aggregate, an adverse effect on the Company of US$500,000 (the “Adverse Event”), then, the Lead Investor may decide
not to proceed with the investment hereunder. It is agreed that a loss of a
customer or potential customer, partner or potential partner shall be
considered in the ordinary course of business and shall not constitute an
Adverse Event. It is agreed that “Adverse Event” shall also include
circumstances that prevent the Company from holding the Shareholders Meeting
for approval of this Agreement on or before the date set for the First Closing.

 

11.5.        Ordinary
Course.  As of the date hereof and until the
First Closing, the Company: (i) shall conduct its business solely
in the ordinary course of business as is conducted on the date hereof; and (ii) shall
not declare or pay any dividends or make any other distributions or payments
with respect to its share capital.

 

12.       COVENANTS

 

12.1.        D&O
Insurance.  Subject to any other
provisions in law, the Investors will act and exercise their voting rights as
shareholders in the Company in any required way so that the Company will
acquire a new directors and officers liability policy (the “Policy”) in an amount and for a period that
is reasonable

 

10

 

considering
the Company’s size, potential exposure and other relevant factors, and in any
event in an amount not exceeding US$5,000,000. The Policy will apply to
obligations and liabilities of the Company’s directors and officers who serve
in office in the Company and/or in the Subsidiaries, before the date of the
First Closing for any wrongful act, omission, or event that preceded such date,
all this being subject to the conditions of the Policy and its exclusions. The
Company’s Directors and Officers as of the date of this Agreement are third
party beneficiaries of this covenant of the Investors and are entitled to
enforce such obligation of the Investors.

 

12.2.        Use
of Proceeds.  The proceeds of the
investments contemplated by this Agreement shall be used by the Company to fund
its ongoing ordinary course of business working capital needs.

 

12.3.        Expenses.
 The Company and the Investors will each
bear their own legal and other expenses with respect to the transaction contemplated
herein; except that, upon consummation of the First Closing, the Company will
pay legal, accounting and due diligence expenses incurred by the Lead Investor
in the amount of up to seventy-five thousand United States dollars (US$75,000)
plus VAT.

 

12.4.        Services
Fee.  Recognizing the time, effort
and resources dedicated by the Lead Investor (since the execution of Term Sheet
entered into between the parties on January 12, 2006), in the provision to
Company of consultation and assistance in devising a strategy for enhancing its
operations, if the Shareholders Meeting does not approve the Equity Investment,
then the Company shall pay the Lead Investor for such services a fee of
US$250,000.

 

12.5.        Right
of First Refusal on Investments.  In
addition to the break-up fee set forth in Section 12.4 above, if within
twelve (12) months following the rejection of the Shareholders’ Meeting of the
Equity Investment, the Company accepts another investment proposal (the “Alternative Investment”), the Company shall
promptly advise the Lead Investor of such Alternative Investment and the Lead
Investor shall have a right of first refusal to make the Alternative Investment
on the terms thereof, by giving written notice to the Company within twenty-one
(21) days of its receipt of the Company’s notice that an offer for an
Alternative Investment has been made to the Company. Failure of the Lead
Investor to respond in writing to a notice from the Company with respect to an
Alternative Investment within the time-frame stated above shall be deemed a
waiver by the Lead Investor of this right of first refusal.

 

12.6.        Finder
Fees.  Except as set forth on Schedule 8.18,
the Company shall not pay any finder fees or commissions in connection with the
transactions contemplated by this Agreement without the prior written approval
of the Lead Investor.

 

12.7.        Termination
of Investor Rights Agreement.  As at
the date of the First Closing, the Company shall have obtained the parties
consent to the termination of that certain Investor Rights Agreement dated as
of December 13, 1999.

 

12.8.        Termination
of Indemnification Agreements.  As at
the date of the First Closing, the Company shall have effected the termination
of all Indemnification Agreements with existing officers and directors (the “Terminated Agreements”). The Directors and
officers who are parties to the Terminated Agreements shall be covered by the
Policy described in Section 12.1 above.

 

12.9.        New
Indemnification Agreements.  No later
than the First Closing, the Company shall have entered into new indemnification
agreements with those of its officers and Directors who were parties to the
Terminated Agreements and those of its officers and Directors holding office
following the First Closing, providing for indemnification by the Company in an
aggregate amount of US$1,500,000 for all indemnifiable events and for all
indemnified persons (the “New Indemnification
Agreements”). The terms and conditions for indemnification shall be
set forth in the New Indemnification Agreements, which shall include, among
other matters, a provision requiring the indemnified person to comply with the
requirements of the insurance company underwriting the Policy (defined in Section 12.1
above) to the extent that the indemnifiable event is covered by the Policy. In the event that all necessary corporate
approvals, as required by applicable law for the New Indemnification
Agreements, are not obtained prior to the First Closing, then as soon as such
approvals are obtained the Company will enter into the New Indemnification
Agreements with those of its officers and Directors who were parties to the
Terminated Agreements and those of its officers and Directors holding office
following the First Closing. The Company’s Directors and officers as of the
date of this Agreement and its officers and Directors holding office following
the First Closing are third party beneficiaries of this covenant and are
entitled to enforce such obligations.

 

13.           RIGHTS OF PREFERRED SHARES 

[INTENTIONALLY OMITTED]

 

11

 

14.           PUBLIC RELEASE

 

Subject to any duty imposed by
any applicable law, the parties agree to coordinate among themselves any
release or report to the public and/or to any authority of information relating
to the transaction hereof.

 

15.           NO SHOP

 

15.1.        During
a period ending on the date of the Shareholders Meeting but no later than September 1,
2006, the Company or any person acting on its behalf, shall not solicit,
initiate, encourage, participate in, respond to or assist in the submission of
any proposal, negotiation or offer from any person or entity other than the
Investors, relating to the sale or issuance of any securities of the Company
(including without limitation, debt, convertible debt, or the acquisition,
sale, lease, license, or other disposition of the Company or any material part of
the shares or assets of the Company, and shall notify the Investors promptly of
any inquiries by any third parties in regards to the foregoing; and (ii) declare
or make any distribution to shareholders or enter into any new transaction with
any “Interested Party”, as defined in the Israeli Securities Act, 1968, as
amended .

 

15.2.        In
the event that the Company breaches the provisions of Section 15.1 above,
then upon the Closing of any of the transactions described in Section 15.1
above, the Company shall pay the Investors, a total amount of US$500,000 as
liquidated damages, and the Bridge Loan under the Bridge Loan Agreement shall
become immediately due and payable.

 

16.           INDEMNIFICATION 

 

16.1.        The
Company agrees that to the fullest extent permitted by applicable law, it will
indemnify and hold the other parties to this Agreement harmless against and in
respect of any and all loss, liability, deficiency or damage, or actions in
respect thereof (including reasonable legal fees and expenses), occasioned by: (i) any
breach of this Agreement; (ii) any falsity of any representations or
warranties of such party or any certificate or other instrument furnished by
that party hereunder; or (iii) any liability that is derived from an act
or omission that has been committed prior to the date hereof, but that becomes
known hereafter.

 

16.2.        Notwithstanding
the foregoing, no claims shall be asserted against the Company unless the
cumulative amounts claimed for is in excess of US$375,000, and (ii) more
than seven (7) years after the date of this Agreement; and under no
circumstances shall a party be entitled to indemnification hereunder in an
amount greater than its respective portion of the Purchase Price.

 

16.3.        The
remedies specified in this Section 16 shall be the sole and exclusive
remedy to which the Investors are entitled with regard to any losses or damages
caused to them under this Agreement or the transactions contemplated hereby.

 

17.           MISCELLANEOUS

 

17.1.        Governing
Law and Jurisdiction.  This Agreement
and the transactions contemplated hereunder shall be governed by and construed
in accordance with the laws of the State of Israel, without giving effect to rules respecting
conflict of law that would cause the laws of any jurisdiction other than the
State of Israel to be applied. The competent courts of Tel Aviv-Jaffa shall
have sole and exclusive jurisdiction to hear and resolve any disputes among the
parties related to this Agreement.

 

17.2.        Notices

 

17.2.1.     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 sent by facsimile or
mailed by registered or certified mail, postage prepaid, or otherwise delivered
by hand or by messenger, addressed to such party’s address as set forth below:

 

If to the
Investors:                to such address
and by facsimile as set forth in Schedule A.

 

If to the
Company:                Radview Software
Ltd.

Attn: Ilan Kinreich, President

2 Habarzel
Street

Tel Aviv
69710Israel

Facsimile:
+972-3-647-1406

and

7 New England
Executive Park

Burlington

MA 01803

U.S.A.

Facsimile:
+1-781-238-8875

 

12

 

or such other
address with respect to a party as such party shall notify each other party in
writing as above provided.

 

17.2.2.     Any
notice sent in accordance with this Section 17.2 shall be effective (i) if
mailed, five (5) business days after mailing, (ii) if sent by
messenger, upon delivery, and (iii) if send via facsimile, upon
transmission and telephonic confirmation of receipt (provided that if
transmitted on a day that is not a business day, on the next business day).

 

17.3.        Entire
Agreement; Amendment and Waiver.  This
Agreement and the Schedules hereto constitute the full and entire understanding
and agreement between the parties with regard to the subject matters hereof and
thereof. All prior representations, understandings and agreements relating to
the subject matter hereof among the parties are void and have no further
effect. Any term of this Agreement may be amended, waived, or discharged,
either prospectively or retroactively, and either generally or in a particular
instance, by written consent of Company and Lead Investor, other than the
Registration Rights Agreement and Management Agreement, which may only be
amended as set forth therein. Notwithstanding the foregoing, in the event that
any proposed amendment to this Agreement increases and/or imposes additional
financial obligations on any of the Investors (other than the Lead Investor) or
disproportionately adversely affects the rights of any of the Investors (other
than the Lead Investor), then the written consent of such Investor shall be
required for such amendment.

 

17.4.        Survival.
 All representations and warranties set
forth in this Agreement as well as the indemnification provisions shall survive
for a period of five (5) years following the date of this Agreement.

 

17.5.        Rights;
Severability.  In case any provision
of this Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby. The parties hereto shall be obliged to draw up an
arrangement in accordance with the meaning and the object of the invalid
provision.

 

17.6.        Titles
and Subtitles.  The titles of the
sections and subsections of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

 

17.7.        Duties
and Expenses.  All stamp duties (if
any) incurred in connection with the execution and performance of this
Agreement shall be borne by the Company, unless specifically stated otherwise.

 

17.8.        Assignment.
 The rights and obligations pursuant to
this Agreement, or any part thereof, may be assigned or otherwise
conveyed by the Investors or any subsequent transferee, both prior to and/or
after the First Closing and each Additional Closing, as applicable, provided
that such transferee agrees in writing to be bound by this Agreement. The Company
may not assign, delegate or otherwise convey any of its rights and/or
obligations pursuant to this Agreement.

 

17.9.        Counterparts.
 This Agreement may be executed in
one or more counterparts, each of which shall be deemed to be a duplicate
original, but all of which taken together shall constitute one and the same
agreement.

 

17.10.      Conflict
and Incorporation by Reference.  It
is hereby agreed and understood that any amendment to the Amended Articles
adopted pursuant to the terms thereof, that is effected following the date of
the First Closing, and which amendment has the effect of altering the
provisions relating to the Company’s Board, the anti-dilution provisions and
the rights of the holders of Preferred Shares, shall be deemed to,
automatically and with no need for further action, amend the applicable
provisions of this Agreement as well. It is further agreed and understood, that
in the event of any conflict between the provisions of this Agreement and the
Amended Articles, as same shall be in effect from time to time, the provisions
of the Amended Articles shall prevail and take precedence over the provisions
of this Agreement.

 

[SIGNATURE PAGE TO FOLLOW]

 

13

 

[SIGNATURE PAGE]

 

IN
WITNESS WHEREOF, the parties have signed this
Agreement as of the date first written hereinabove.

 

 

	
  RADVIEW SOFTWARE LTD.

  	
  FORTISSIMO CAPITAL FUND GP LP.

  
	
   

  	
   

  
	
  /s/ ILAN
  KINREICH

  	
   

  	
  /s/ YUVAL
  COHEN

  	
   

  
	
  Name:

  	
    Ilan
  Kinreich

  	
   

  	
  By: 

  	
    Fortissimo
  Capital (GP)

    Management Ltd., general partner

  	
   

  
	
  Title: 

  	
    President
  and CEO

  	
   

  	
  Name: 

  	
    Yuval
  Cohen

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
  /s/
  CHRISTOPHER DINEEN

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
    Christopher
  Dineen

  	
   

  	
   

  	
   

  
	
  Title: 

  	
    Chief
  Financial Officer

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  YEHUDA ZISAPEL

  	
  SHEM BASUM LTD.

  
	
   

  	
   

  
	
  /s/ YEHUDA
  ZISAPEL

  	
   

  	
  /s/ SHAI
  BEILIS

  	
   

  
	
  Name:     
  Yehuda Zisapel

  	
  Name: 

  	
    Shai
  Beilis

  	
   

  
	
   

  	
  Title:

  	
   

  
	
  MICHAEL CHILL

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  /s/ MICHAEL
  CHILL

  	
   

  	
   

  
	
  Name:     Michael
  Chill

  	
   

  
															

 

14

 

Schedule A

 

List of Investors

 

	
  Name of Investor

  	
   

  	
  Address

  	
   

  	
  Portion of Purchase

  Price in US$

  	
   

  	
  Number of Acquired

  Shares

  	
   

  	
  Number of

  Warrants

  	
   

  
	
  Fortissimo
  Capital Fund, LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  20,063.18

  	
   

  	
  668,773

  	
   

  	
  501,580

  	
   

  
	
  Fortissimo Capital Fund (Israel), LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  506,090.49

  	
   

  	
  16,869,681

  	
   

  	
  12,652,261

  	
   

  
	
  Fortissimo Capital Fund (Israel-DP), LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  36,346.34

  	
   

  	
  1,211,545

  	
   

  	
  908,659

  	
   

  
	
  Yehuda
  Zisapel

  	
   

  	
  24 Raoul Wallnberg Street

  Tel-Aviv 69719, Israel

  Fax: +972-3-6440639

  

  Cc: Yael Langer, Adv.

  RAD Bynet Group Legal Department

  24 Raoul Wallenberg St.

  Tel-Aviv 69719, Israel

  Fax: +972-3-6498248

  	
   

  	
  125,000

  	
   

  	
  4,166,667

  	
   

  	
  3,125,000

  	
   

  
	
  Shem Basum
  Ltd.

  	
   

  	
  C/o Shai Beilis
8 Hanna Senesh St.

  Kfar Saba

  Fax: +972-9-960-1818

  E-mail: shai@FormulaVentures.com

  	
   

  	
  50,000

  	
   

  	
  1,666,667

  	
   

  	
  1,250,000

  	
   

  
	
  Michael
  Chill

  	
   

  	
  210 West 89th Street

  Apt. 4-N, New York NY 10024

  Email: mchill@paramountbio.com

  Phone: 212-554-4211

  Cell: 646-245-2457

  	
   

  	
  12,500

  	
   

  	
  416,667

  	
   

  	
  312,500

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  750,000

  	
   

  	
  25,000,000

  	
   

  	
  18,750,000

  	
   

  

 

 

Schedule B

List of
Investors

 

	
  Name of Investor

  	
   

  	
  Address

  	
   

  	
  Maximum Portion of

  Purchase Price at all

  Additional Closings in

  US$

  	
   

  	
  Maximum Number of

  Additional Acquired

  Shares

  	
   

  	
  Maximum Number

  of Additional

  Warrants

  	
   

  
	
  Fortissimo Capital Fund, LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  60,189.53

  	
   

  	
  2,006,318

  	
   

  	
  1,504,738

  	
   

  
	
  Fortissimo Capital Fund (Israel), LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  1,518,271.46

  	
   

  	
  50,609,048

  	
   

  	
  37,956,787

  	
   

  
	
  Fortissimo Capital Fund (Israel-DP), LP

  	
   

  	
  c/o Marc Lesnick

  Fortissimo Capital Management Ltd.

  14 Hamelacha Street

  Park Afek, Rosh Haayin 48091

  Fax: +972-3-9157411

  	
   

  	
  109,039.01

  	
   

  	
  3,634,634

  	
   

  	
  2,725,975

  	
   

  
	
  Yehuda
  Zisapel

  	
   

  	
  24 Raoul Wallnberg Street

  Tel-Aviv 69719, Israel

  Fax: +972-3-6440639

  

  Cc: Yael Langer, Adv.

  RAD Bynet Group Legal Department

  24 Raoul Wallenberg St.

  Tel-Aviv 69719, Israel

  Fax: +972-3-6498248

  	
   

  	
  375,000

  	
   

  	
  12,500,000

  	
   

  	
  9,375,000

  	
   

  
	
  Shem Basum
  Ltd.

  	
   

  	
  C/o Shai Beilis
8 Hanna Senesh St.

  Kfar Saba

  Fax: +972-9-960-1818

  E-mail: shai@FormulaVentures.com

  	
   

  	
  150,000

  	
   

  	
  5,000,000

  	
   

  	
  3,750,000

  	
   

  
	
  Michael
  Chill

  	
   

  	
  210 West 89th Street

  Apt. 4-N, New York NY 10024

  Email: mchill@paramountbio.com

  Phone: 212-554-4211

  Cell: 646-245-2457

  	
   

  	
  37,500

  	
   

  	
  1,250,000

  	
   

  	
  937,500

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
  2,250,000

  	
   

  	
  75,000,000

  	
   

  	
  56,250,000Exhibit 10.19

 

CONVERTIBLE LOAN AGREEMENT
 
This Convertible Loan Agreement (this “Agreement”) is entered into as of April 4, 2006 by and among Fortissimo Capital Fund GP, L.P., on behalf of the several parallel partnerships in which it serves as the General Partner (the “Lead Lender”), whose principal offices are located at 14 Hamelacha Street, Park Afek, Rosh Haayin 48091, Israel, Shem Basum Ltd., an Israeli company, having its address at 8 Hanna Senesh St., Kfar Saba, Israel (“Beilis”); Mr. Yehuda Zisapel, an individual having his address at 24 Raoul Wallenberg Street, Tel Aviv 69719, Israel (“Zisapel”) and Michael Chill, an individual having his address at 210 West 89th Street Apt. 4-N, New York, NY 10024, U.S.A. (“Chill”); each of Beilis, Zisapel and Chill a “Lender”, and together with the Lead Lender, the “Lenders”), and Radview Software Ltd., an Israeli corporation, corporate registration number 511627952, with its principal offices in Israel located at 2 Habarzel Street, Tel Aviv 69710, Israel and its principal offices in the U.S.A. located at 7 New England Executive Park, Burlington, MA 01803 (the “Company”, or the “Borrower”).
 
RECITALS
 
WHEREAS, Lenders and Borrower have entered into a Share Purchase Agreement, of even date hereof, pursuant to which the Lenders shall make an equity investment of up to US$3,000,000 in the Company (the “SPA”) and which also contemplates the extension by the Lenders to the Company, concurrently with the Closing of the SPA (the “SPA Closing”) of a convertible loan (the “Convertible Loan”) in the amount of US$250,000 (in addition to the Bridge Loan Amount referred to below); and
 
WHEREAS, on January 26, 2006, the Lead Lender and the Company entered into a Bridge Loan Agreement (the “Bridge Loan Agreement”), pursuant to which the Lead Lender has agreed to advance to the Company a bridge loan in the amount of up to $500,000, of which, as of the date hereof, an amount of $200,000 has already been advanced and additional funds may be advanced by the Lean Lender during the period starting from the date hereof and ending on the SPA Closing (the total amounts lent under the Bridge Loan Agreement prior to the SPA Closing and any interest accrued thereon are termed the “Bridge Loan Amount”); and
 
WHEREAS, pursuant to Section 1.2(b) of the Bridge Loan Agreement, at the SPA Closing, the Bridge Loan Amount shall automatically become subject to all of the terms and conditions of the this Agreement, as if the Bridge Loan Amount has been borrowed pursuant hereunder; and
 
WHEREAS, Beilis, who is the Company’s Chairman of the Board, Zisapel, who is an existing shareholder of the Company, and Chill wish to participate in the Convertible Loan.
 
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:
 
ARTICLE 1 - THE CONVERTIBLE LOAN
 
1.1                     The Convertible Loan.
 
(a)                      Subject to the terms and conditions of this Agreement, each of the Lenders, severally and not jointly, agrees to provide to the Borrower with a loan in the amount set forth opposite the name of such Lender in Schedule 1.1 hereto, amounting in the aggregate to a total of up to $550,000, which amount is comprised of $250,000, plus the balance available for borrowing by the Company under the Bridge Loan Agreement, which as of the date hereof is $300,000  (the “Principal Amount”).
 
(b)                     The Principal Amount shall bear interest at the rate of 8% per annum (the “Interest”), starting from the Loan Date (as defined below) and until the conversion of the Loan Amount   or the repayment thereof according to the provisions of Section 1.2 below. The Principal Amount, together with accrued Interest thereon, is referred to as the “Loan Amount”. To any Interest payment (including by way of conversion) there shall be added Value Added Tax (“VAT”) at the rate prescribed by the law.

 

 

(c)                      The Principal Amount shall be paid to the Company concurrently with the SPA Closing (the “Loan Date”).
 
1.2                     Repayment or Conversion.
 
(a)                      Unless earlier converted in accordance with the terms of Sub-section (b) below, the Loan Amount shall become immediately repayable in full upon the earlier to occur of: (a) the date which is thirty (30) days after the third anniversary of the Loan Date; or (b) at the option of a Lender with respect to such Lender’s portion of the Loan Amount, upon the occurrence of an Event of Default (as defined herein).
 
(b)                     At any time and from time to time after the Loan Date and up to the third anniversary of the Loan Date, a Lender may (a “Converting Lender”), at its sole discretion and as set forth in a prior written notice provided to the Company (the “Conversion Notice”), elect to convert all or part of its respective outstanding Principal Amount and interest accrued thereon (excluding income tax that is to be withheld with respect to such interest, if any) into the Company’s Series A Preferred Shares nominal value NIS 0.01 per share, at a price equal to Three Cent ($0.03) per Preferred Share (the “Conversion Price”). Any accrued interest not converted together with the principal amount on which it has accrued shall be paid to the Converting Lender in cash at the time of the applicable conversion. Payment of Interest by Borrower (either by way of conversion or repayment), shall be made against receipt of a VAT invoice issued by the Lender receiving such Interest, unless Borrower shall be permitted, under applicable law, to issue with respect to such payment a “self issued” VAT invoice (Heshbonit Atsmit). The Conversion Price shall be subject to adjustment for any bonus share issues, share splits, combinations and similar events and pursuant to the anti–dilution provisions applicable to the conversion of the Preferred Shares as set forth in the Company’s Articles of Association adopted in connection with the SPA Closing.

 

2

 

(c)                      Conversion of any portion of the Loan Amount shall be deemed as full repayment of such portion.
 
1.3                     Default Interest.
 
Without derogating from any rights or remedies afforded by law, any delay of more than ten (10) days in the payment of any amount due to a Lender from Borrower on account of the Loan Amount or otherwise due pursuant to this Agreement shall subject such overdue amounts to additional interest which shall accrue at an annual rate of four percent (4%) from the date such payment has become due and payable and until actual payment thereof. Such default interest shall be compounded daily.
 
1.4                     Payments.
 
All payments by Borrower to Lenders made under this Agreement shall be:
 
(a)                      Free and clear of and without deduction for all taxes, levies, imposts, deductions, assessments, charges or withholdings, and all liabilities with respect thereto of any nature whatsoever, provided the respective Lender has provided to Borrower in advance all documented exemptions and approvals required to implement the foregoing, to Borrower’s reasonable satisfaction, including an Israeli Tax Authority exemption from tax withholding at the source. For the avoidance of doubt in the event that a Converting Lender has failed to provide the Company with an exemption as aforesaid, in connection with the conversion of any interest accrued in connection with such Lender’s full or partial conversion of its respective Principal Amount, the Company shall be eligible to withhold tax at the source in connection with such conversion.
 
(b)                     Made on a Business Day. For the purposes of this Agreement, the term “Business Day” means any day on which banks in Israel are open and execute foreign exchange transactions. For the avoidance of doubt, in the event any payment due to a Lender hereunder is to occur on a non Business Day, the obligation of Borrower to make such payment shall be deferred to the very next Business Day occurring thereafter.
 
(c)                      Made in lawful money of the United States of America or New Israeli Shekels, at the election of the applicable Lender, by wire transfer of immediately available funds to the Lender’s bank account the details of which will be provided by separate written notice by the Lender to Borrower at least seven (7) days prior to any required payment by Borrower hereunder.
 

1.5                     Deliverables by Borrower.

 

On or prior to the Loan Date, Borrower shall
deliver to the Lenders the following:

 

(a)                      A copy of a resolution of
Borrower’s audit committee, Board of Directors (the “Board”) and Shareholders, approving the execution and
performance by Borrower of this Agreement and its annexes and the Charge
Debentures (all, as defined below) in the forms attached as Exhibit A hereto,
provided however, that absent approval by the Borrower’s audit committee,
Beilis shall not participate in the Convertible Loan and each of the other
Lenders shall have the right (but not the obligation) to lend to the Borrower
its pro-rata portion of the Loan Amount that was to be extended by Beilis under
Schedule 1.1 hereto. It is hereby clarified that the non-participation of
Beilis in the Convertible Loan, as aforesaid, shall not effect the several
obligation of each of the other Lenders to extend such Lender’s portion of the
Principal Loan Amount in accordance with the terms hereof.

 

(b)                     Duly
executed Charge Debentures (as defined below) with respect to the Charged
Assets (as defined and set forth below) together with duly executed notices of
Charges ready for filings with the applicable Israeli authorities in the forms
provided for such purpose by applicable law that are attached as Exhibit B1
and Exhibit B2 hereto.

 

(c)                      Duly
executed notice of Charges ready for filings with the applicable US authorities
in the form or forms provided for such purpose by applicable law that is
attached as Exhibit C hereto.

 

(d)                     A
copy of the approval of the Israeli Investment Center of the Ministry of
Industry, Trade and Labor to the transactions contemplated hereby.

 

3

 

1.7                     Lender’s Records.
 
Any amounts owed under this Agreement and any ancillary documents hereunder, including but not limited to Advancement of Installment Form/s entered into pursuant to the Bridge Loan Agreement, the Charge Debentures and all other contracts, instruments, addenda and documents executed in connection with this Agreement or the extensions of credit which are the subject of this Agreement (collectively, the “Loan Documents”), shall be evidenced by the respective entries in records maintained by the respective Lender for such purpose. Each payment on account of, and any other credits with respect to the Loan Amount and all other sums outstanding under any Loan Document shall be evidenced by the respective entries in such records. Absent manifest error, the applicable Lender’s records shall be prima-facie evidence thereof.
 
1.8                     Security.
 
(a)                      Borrower shall secure the repayment of all amounts due or which may become due to the Lenders from Borrower in accordance with the provisions of the Loan Documents (including the Bridge Loan Amount) by creating the following charges:
 
(i)             A floating charge on all of Borrower’s present and future tangible and intangible assets and rights of any kind, whether contingent or absolute as more fully set forth in the Floating Charge Debenture attached hereto as Schedule 1.8(a) (the “Floating Charge” and “Floating Charge Debenture”, respectively); and
 
(ii)          A fixed charge on the Company’s (i) intellectual property rights, and (ii) accounts receivable, all as more fully set forth in the Fixed Charge Debenture attached hereto as Schedule 1.8(b) (the “Fixed Charge” and “Fixed Charge Debenture”, respectively).
 
(b)                     In this Agreement, (1) the Floating Charge and Fixed Charge shall collectively be referred to as the “Charges”, (2) the assets forming the subject matter of the Charges shall be referred to as the “Charged Assets”; and (3) the Floating Charge Debenture and Fixed Charge Debenture shall collectively be referred to as the “Charge Debentures”.
 
(c)                      As soon as practicable following the Loan Date, Borrower shall file with the applicable foreign governmental agencies the documents necessary to reflect the Charges with respect to Borrower’s Intellectual Property, more specifically referred to in the Charge Debentures as ‘Pledgor’s IP’ (the “Foreign Charges”). Borrower shall bear all costs and expenses in connection with such filings. It is expressly agreed that the filing of the Foreign Charges hereunder shall be deemed to satisfy Borrower’s undertaking to file such Foreign Charges pursuant to the last paragraph of Section 1.8 of the Bridge Loan Agreement.
 
(d)                     Each of Beilis, Zisapel and Chill (the “Co-Lenders”) expressly and irrevocably agree that they shall not take any action to realize their security interest under the Charge Debentures unless (i) the outstanding Loan Amount owed to such Co-Lender(s) exceeds $100,000;  (ii) at least 7 days prior notice of the contemplated action was delivered to the Lead Lender, and (iii) such action received the Lead Lender’s prior written consent, which consent can be withheld for any reason or for no reason, except that no such consent from the Lead Lender shall be required subsequent to the settlement, by the Company, of the entire portion of the Loan Amount owing thereby to the Lead Lender (whether by way of repayment or conversion pursuant to Section 1.2 hereof)
 
(e)                      For the avoidance of doubt, by execution of this Agreement Lead Lender hereby provides its consent, pursuant to Section 4.7 (f) of the Bridge Loan Agreement and Section 5 of each of the Fixed and Floating Charge Debentures (as defined under the Bridge Loan Agreement) for the Borrower to enter into the Charge Debentures (as defined herein) and the creation the Charges hereunder.
 
1.9                     Priority.
 
Except as provided below, all amounts borrowed hereunder, under the Bridge Loan Agreement as well as all other amounts due to the Lenders pursuant to the provisions of this Agreement, shall rank senior to any other Security Interest (as defined below) on the assets and rights of the Borrower and to any other indebtedness to banks, financial and lending institutions, creditors, shareholders or others.
 
The Charges created hereunder and under the Charge Debentures (as defined in Section 1.8) shall be subordinate only to the Charges created under the Bridge Loan Agreement and the Charge Debentures as defined under the Bridge Loan Agreement.

 

4

 

For the purposes of this Agreement a “Security
Interest” shall mean any lien, pledge, encumbrance, security
interests, charge or transfer, assignment over or in any person’s or entity’s
property.

 

ARTICLE 2
- REPRESENTATIONS AND WARRANTIES OF BORROWER

 

Borrower’s representations and warranties set forth in the SPA are incorporated herein by reference, are deemed to be made to each of the Lenders on the date hereof and shall have the same force and effect as if explicitly set forth herein.
 
ARTICLE 3 - CONDITIONS PRECEDENT
 
3.1                     Conditions To Loan.
 
The obligation of each Lender to advance any or all of the Principal Amount is subject to the receipt by the Lender of the documents listed in Section 1.5 above together with a counterpart signature page of this Agreement and the Charge Debentures and the occurrence of the SPA Closing.
 
ARTICLE 4 – BORROWER COVENANTS
 
During the term of this Agreement and until the performance of all of Borrower’s obligations towards the Lenders (including repayment or conversion pursuant to Section 1.2 hereof), Borrower covenants and agrees with the Lender as follows:
 

4.1                     Use of Funds.

 

Borrower agrees that it will use the
Principal Amount for general working capital purposes, only in accordance with
the budget attached as Schedule 4.1 hereto.

 

4.2                     Access to Facilities.

 

Borrower and any of its subsidiaries will
permit any representatives designated by the Lead Lender, upon reasonable
notice and during normal business hours and at reasonable intervals, at Lead
Lender’s expense and accompanied by a representative of Borrower, to: (a) visit
and inspect any of the properties of the Borrower and its subsidiaries; (b) examine
the corporate and financial records of the Borrower and of its subsidiaries
(unless such examination is not permitted by federal, state or local law or by
contract) and make copies thereof or extracts therefrom; and (c) discuss
the affairs, finances and accounts of the Borrower and of its subsidiaries with
the directors, officers and independent accountants of the Borrower and/or  its subsidiaries.

 

4.3                     Taxes.

 

Borrower will promptly pay and discharge, or
cause to be paid and discharged, when due and payable, all lawful taxes,
assessments and governmental charges or levies imposed upon the income,
profits, property or business of Borrower; provided, however, that any such
tax, assessment, charge or levy need not be paid if the validity thereof shall
currently be contested in good faith by appropriate proceedings (such non
payment to include those instances set in the Schedule of Exception and
Disclosures attached to the SPA), and provided, further, that the Borrower will
pay all such taxes, assessments, charges or levies forthwith upon the
commencement of proceedings to foreclose any lien which may have attached
as security therefore.

 

5

 

4.4                     Insurance.

 

Borrower will keep its assets which are of an
insurable character insured by financially sound and reputable insurers against
(a) loss or damage by fire, explosion and other risks customarily insured
against by companies in similar business similarly situated as the Borrower; (b) other
hazards and risks and liability to persons and property to the extent and in
the manner which the Borrower believes is customary for companies in similar
business similarly situated as the Borrower and to the extent available on
commercially reasonable terms.

 

4.5                     Intellectual
Property.

 

Borrower shall maintain in full force and
effect its existence, rights and franchises and all licenses and other rights
to use Intellectual Property owned or possessed by it and reasonably deemed to
be necessary to the conduct of its business.

 

4.6                     Required Approvals.

 

Borrower shall obtain the prior written
approval of the Lead Lender before taking any of the below listed actions:

 

(a)                      Directly or
indirectly declare or pay any dividends;

 

(b)                     Liquidate, dissolve
or effect a creditors’ arrangement;

 

(c)                      Become subject to
(including, without limitation, by way of amendment to or modification of) any
agreement or instrument which by its terms would (under any circumstances)
restrict Borrower’s right to perform the provisions of this Agreement or
any other Loan Document;

 

(d)                     Create or acquire
any subsidiary after the date hereof;

 

(e)                      Make or undertake
to make, any disposition or transfer of any interest, in the Charged Assets,
which under any of the Charge Debentures requires the prior written approval of
the Lender;

 

(f)                        Conduct it
business other than in the ordinary course of business.

 

ARTICLE 5 - EVENTS OF DEFAULT
 
5.1       Events Of Default.  The occurrence of any of the following shall, at the option of the applicable Lender: (1) make the entire Loan Amount and any other amounts owing under any Loan Documents to such Lender immediately due and payable without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor or any other notices or demands, and (2) subject to section 1.8(d) above, give the Lender the right to exercise any other right or remedy provided by contract or applicable law:
 
(A)                  Borrower shall fail to pay to the Lender any of the Principal Amount or Interest under this Agreement in a timely manner, or fail to pay any fees or other charges when due and such failure continues for ten (10) Business Days or more after the same first becomes due; or an event of default as defined in any other Loan Document shall have occurred.
 
(B)                    Any representation or warranty made, or financial statement, certificate or other document provided, by Borrower under any Loan Document shall prove to have been false or misleading in any material respect when made or deemed made herein.
 
(C)                    Borrower shall be unable to generally pay its debts as they become due or commence any insolvency proceeding with respect to itself; an involuntary insolvency proceeding shall be filed against Borrower, or a custodian, receiver, trustee, assignee for the benefit of creditors, or other similar official, shall be appointed to take possession, custody or control of the properties of Borrower, and such involuntary insolvency proceeding, petition or appointment is acquiesced to by Borrower or is not dismissed within sixty (60) days; or the dissolution or termination of the business of Borrower.
 
(D)                   Borrower shall be in default beyond any applicable period of grace or cure under any other agreement involving the borrowing of an amount exceeding $40,000, from any person, which results in the acceleration of payment of such obligation.

 

6

 

(E)                     Any governmental or regulatory authority shall take any judicial or administrative action, that would have a Material Adverse Effect, and which cannot be cured by Borrower within sixty (60) days of such action.
 
(F)                     Any sale, transfer or other disposition of all or a substantial or material part of the assets of Borrower, including without limitation to any trust or similar entity, shall occur where such sale, transfer, lease or other disposition of assets would constitute a Material Adverse Change.
 
(G)                    Any judgment shall be entered against Borrower, which remains unsatisfied or un-stayed pending appeal for sixty (60) or more days after entry thereof; and/or any lien is granted by a competent court, or by any authorized execution office over all or a major part of the Borrower’s assets or bank accounts and such lien is not removed within sixty (60) days of its issuance.
 
(H)                   Borrower shall fail to perform or observe any covenant contained in this Agreement or any other Loan Document (including but not limited to any of the covenants contained in Article 4 above) and the breach of such covenant is not cured within thirty (30) days after the sooner to occur of Borrower’s receipt of notice of such breach from the Lender or the date on which such breach first becomes known to any officer of Borrower; provided, however, that if such breach is not capable of being cured within such 30-day period and Borrower timely notifies the Lender of such fact and Borrower diligently pursues such cure, then the cure period shall be extended to the date requested in Borrower’s notice but in no event more than ninety (90) days from the initial breach, and to the extent that such breach is not capable of cure regardless of any extension of time, then breach shall be deemed to have occurred for the purposes of this Article 5.
 
ARTICLE 6 – BRIDGE LOAN PROVISIONS
 
Upon closing of this Agreement, the Bridge Loan Agreement shall be deemed amended such that the Bridge Loan Amount (as defined above) shall be deemed part of the Principal Amount hereunder and the provisions of this Agreement shall govern the parties rights and liabilities with  respect to the Bridge Loan Amount. Nothing in the above shall be deemed to derogate from Borrowers’ liabilities and Lead Lender’s rights and remedies as provided in the Bridge Loan Agreement, with respect to any Event of Default occurring prior to the SPA Closing.
 
ARTICLE 7 - GENERAL PROVISIONS
 
7.1       Notices.  Any notice given by any party under any Loan Document shall be in writing and personally delivered, sent by overnight courier, or mail, postage prepaid, or sent by facsimile, to be promptly confirmed in writing, or other authenticated message, charges prepaid, to the other party’s or parties’ addresses shown on the cover page to this Agreement. Each party may change the address or facsimile number to which notices, requests and other communications are to be sent by giving written notice of such change to each other party. Notice given by hand delivery shall be deemed received on the date delivered; if sent by overnight courier, on the next Business Day after delivery to the courier service; if by first class mail, on the third Business Day after deposit in the Mail; and if by telecopy, on the date of transmission.
 
7.2       Binding Effect.  The Loan Documents shall be binding upon and inure to the benefit of Borrower and the Lenders and their respective successors and assigns; provided, however, that Borrower may not assign or transfer Borrower’s rights or obligations under any Loan Document without the Lender’s prior written consent except in connection with a consolidation, merger or other transaction in compliance with the provisions of this Agreement. Each of the Lenders reserves the right, to sell, assign, transfer, negotiate or grant participation in all or any part of, or any interest in, such Lenders rights and obligations under the Loan Documents, provided that any transferee or assignee hereunder agrees in writing to be bound by this Agreement. In connection with any of the foregoing, Lender may disclose all documents and information which Lender now or hereafter may have relating to the Convertible Loan, the Borrower, or its business; provided that any person who receives such information shall have agreed in writing in advance to maintain the confidentiality of such information.
 
7.3       No Waiver.  Any waiver, consent or approval by Lender of any event of default or breach of any provision, condition, or covenant of any Loan Document must be in writing and shall be effective only to the extent set forth in writing. No waiver of any breach or default shall be deemed a waiver of any later breach or default of the same or any other provision of any Loan Document. No failure or delay on the part of Lender in exercising any power, right, or privilege under any Loan Document shall operate as a waiver thereof, and no single or partial exercise of any such power, right, or privilege shall preclude any further exercise thereof or the

 

7

 

exercise of any other power, right or privilege. Lender has the right at its sole option to continue to accept Interest and/or Principal Amount payments due under the Loan Documents after default, and such acceptance shall not constitute a waiver of said default or an extension of the maturity date unless Lender agrees otherwise in writing.
 
7.4       Rights Cumulative.  All rights and remedies existing under the Loan Documents are cumulative to, and not exclusive of, any other rights or remedies available under contract or applicable law.
 
7.5       Unenforceable Provisions.  Any provision of any Loan Document executed by Borrower which is prohibited or unenforceable in any jurisdiction, shall be so only as to such jurisdiction and only to the extent of such prohibition or unenforceability, but all the remaining provisions of any such Loan Document shall remain valid and enforceable.
 
7.6       Indemnification; Exculpation.  Borrower shall, upon a Lender’s first written demand, pay and protect, defend and indemnify such Lender and Lender’s employees, officers, directors, shareholders, affiliates, correspondents, agents and representatives (other than Lender, collectively “Agents”) against, and hold the Lender and each such Agent harmless from, all claims, actions, proceedings, liabilities, damages, losses, expenses (including, without limitation, attorneys’ fees and costs) and other amounts incurred by Lender and each such Agent, arising from (i) any breach by the Borrower of an undertaking by the Borrower under this Agreement, (ii) any breach by the Borrower of any representations and warranties in Section 4 above, or (iii) any action to enforce the Lender’s rights hereunder, including by realization of the Charges, provided, however, that this indemnification shall not apply to any of the foregoing incurred solely as the result of Lender’s or any Agent’s gross negligence or willful misconduct and, further provided, that indemnification pursuant to subsection 7.6.(iii) above shall be contingent upon the enforcement action referred to therein not being contested by the Borrower or, if contested, such enforcement action has been confirmed by a ruling of a competent court. This indemnification shall survive for period of two (2) years from the payment and satisfaction of all of Borrower’s obligations to the Lender.
 
7.7       Execution In Counterparts.  This Agreement may be executed in any number of counterparts which, when taken together, shall constitute but one agreement.
 
7.8       Entire Agreement.  The Loan Documents and the Bridge Loan Agreement are intended by the parties as the final expression of their agreement with respect to the subject matter hereof and therefore contain the entire agreement between the parties and supersede all prior understandings or agreements concerning the subject matter hereof. The term “this Agreement” shall be deemed to include all schedules thereof and the Schedule of Exceptions and Disclosures to the SPA as well. This Agreement may be amended only in a writing signed by Borrower and the Lead Lender.
 
7.9       Governing Law And Jurisdiction.  This Agreement and any and all of the Loan Documents shall be deemed to have been executed and delivered in the State of Israel, and the validity, enforcement and construction hereof shall be governed in all respects by the internal laws (without regard to principles of conflicts of law) of the State of Israel. Any legal action or proceeding arising under or in relation to this Agreement and any of the Loan Documents shall be filed exclusively in a court of competent jurisdiction within the State of Israel. In addition, each of the undersigned parties consents and agrees that any competent court in which such legal action or proceeding is commenced may exercise jurisdiction over his, her or its person for purposes of enforcing the terms of this Agreement and any of the Loan Documents and agrees not to assert that venue in Israel is inappropriate or inconvenient.
 
7.10     Interpretation.  The headings of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. The preamble to this Agreement shall be deemed an integral part hereof.
 
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK – SIGNATURE PAGE TO FOLLOW]

 

8

 

SIGNATURE PAGE OF CONVERTIBLE LOAN AGREEMENT
 
IN WITNESS WHEREOF, Borrower and Lenders have executed this Agreement as of the date set forth in the preamble.
 
 

	BORROWER
	LEAD LENDER

	 
	 

	RADVIEW SOFTWARE LTD.
	FORTISSIMO CAPITAL FUND GP, L.P.

  BY: FORTISSIMO CAPITAL (GP) MANAGEMENT

LTD., ITS GENERAL PARTNER

	 
	 

	/s/ ILAN KINREICH
	 
	/s/ YUVAL COHEN
	 

	Name:
	  Ilan Kinreich
	 
	Name:
	  Yuval Cohen
	 

	Title: 
	  President and CEO
	 
	Title:
	 
	 

	 
	 

	/s/ CHRISTOPHER DINEEN
	 
	 

	Name:
	  Christopher Dineen
	 
	 

	Title: 
	  Chief Financial Officer
	 
	 

	 
	 

	 
	 

	SHEM BASUM LTD.
	 

	 
	 

	/s/ SHAI BEILIS
	 
	 

	Name: Shai Beilis
	 

	Title:
	 

	 
	 

	 
	 
	 

	 
	 

	YEHUDA ZISAPEL
	 

	 
	 

	 
	 

	/s/ YEHUDA ZISAPEL
	 
	 

	Name: Yehuda Zisapel
	 

	 
	 

	MICHAEL CHILL
	 

	 
	 

	/s/ MICHAEL CHILL
	 
	 

	Name: Michael Chill
	 

														

 

9

 

Schedule 1.1
 

	
  Name of Lender

  	
   

  	
  Principal Amount

  	
   

  
	
  Fortissimo Capital Fund GP, L.P. (Lead
  Lender)

  	
   

  	
  $

  	
  62,500

  	
   

  
	
  Shem Basum Ltd. / Shai Beilis

  	
   

  	
  50,000

  	
   

  
	
  Yehuda Zisapel

  	
   

  	
  125,000

  	
   

  
	
  Michael Chill

  	
   

  	
  12,500

  	
   

  
	
  Sub-total

  	
   

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fortissimo Capital Fund GP, L.P. - balance
  of Bridge Loan*

  	
   

  	
  300,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  550,000

  	
   

  

 

*                 Fortissimo Capital Fund GP, L.P. has already provided $200,000 under the Bridge Loan. This $300,000 amount shall be reduced by any additional funds lent by Fortissimo to the Company between the signing of this Agreement and the SPA Closing.

 

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