Document:

Exhibit
10.1

 

SHARE
PURCHASE AGREEMENT

 

THIS
SHARE PURCHASE AGREEMENT (this “Agreement”), is made as of the 3 day of May, 2021, by and among Dangot
computers ltd., (Registration Number 511398836) a company organized under the laws of the State of Israel (the “Company”),
Mr. Haim Dangot. I.D. 010791945 (the “Seller”) and OMNIQ TECHNOLOGIES
LTD (Registration Number 516294444), a company organized under the laws of the State of Israel (the “Purchaser”),
and OmniQ Corp., a company organized under the laws of the State of Delaware, USA or any fully owned subsidiary thereof (hereinafter,
jointly and severally: “OmniQ”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Seller owns of record and beneficially all (100%) of the issued and outstanding share capital of the Company on a Fully Diluted
Basis (as defined below) as of the date hereof and immediately prior to the Closing (as defined below);

 

WHEREAS,
the Purchaser desires to acquire from the Seller, and the Seller desires to sell to the Purchaser 51% of the Company Shares, and
the Seller is willing to grant the Purchaser an option to purchase the remaining 49% of the Company Shares, on the terms and conditions
set forth herein; and

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereby agree as follows:

 

	1.	Definitions.

 

		1.1.	Certain
                                         Definitions.

 

As
used in this Agreement, the following terms have the following meanings. Terms defined elsewhere in this Agreement shall have
the meaning set forth therein:

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control
with such Person, as well as any immediate family member of such Person (spouse, children, siblings and parents). For purposes
of this definition, “control”, when used with respect to any specified Person, means the power to direct or cause
the direction of the management and policies of such Person, directly or indirectly, whether through ownership of voting securities
or by contract or otherwise, and the terms “controlling” and “controlled by” have correlative meanings
to the foregoing.

 

“Applicable
Law” or “Law” means, with respect to any Person, any law (including common law), statutes, regulations,
written regulatory guidance, directives, constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction,
judgment, decree or ruling enacted, adopted, promulgated or applied by a governmental authority that is binding upon and applicable
to such Person.

 

“Business”
shall have the meaning ascribed to such term in Schedule A.

 

“Business
Day” means a day, other than Friday, Saturday, Sunday or other day on which commercial banks in Tel-Aviv and New York
are authorized or required by Applicable Law to close.

 

    	 

    	-2-

    

 

“Closing”
shall have the meaning ascribed to such term in Section 3.4 below.

 

“Closing
Date” shall have the meaning ascribed to such term in Section 3.4 below.

 

“Company
Shares” means issued and outstanding ordinary shares of the Company, par value NIS 1.00 per share.

 

“COVID-19”
means SARS-CoV-2 or COVID-19, and any evolutions thereof or any other epidemics, pandemics or disease outbreaks.

 

“COVID-19
Measures” means any quarantine, workforce reduction, social distancing, shut down, closure, sequester or any other law,
governmental order, action, directive, guidelines or recommendations by any governmental authority in connection with or in response
to COVID-19.

 

“Debt”
means any debt or indebtedness, other than debt or indebtedness that does not exceed $25,000 individually and $ 100,000 in
the aggregate, including, but not limited to: (a) all obligations (including interest) for borrowed money or which have been incurred
and remain outstanding; (b) all liabilities secured by any Lien upon property or assets owned by the Company, to the extent that
the Company has assumed or become liable for the payment of such liabilities; (c) all liabilities with respect to interest rate
or currency swaps, collars, caps and similar hedging obligations; (d) all liabilities in regard to guaranties or sureties by others
of such Company liabilities, regardless of whether by payment or performance, or whether such guaranties are in the form of, without
limitation, letters of credit, deposits, bonds or other forms of security, indemnity, surety or guaranty; (e) all Tax liabilities;
(f) all past due payables; (g) all liabilities, including Tax, for declared and unpaid dividends; (h) all liabilities to the Seller
and/or their Affiliates, including without limitation, any liabilities with respect to loans provided by the Company to the Seller
and/or their Affiliates or loans provided to the Company by the Seller and/or their Affiliates; (i) all liabilities with respect
to employees benefits; (j) all liabilities with respect to the termination of lease agreements; (k) all liabilities for accrued
but unpaid interest and breakage fees; (l) all liabilities which derive from forward contracts; (m) all liabilities related to
transaction expenses paid by the Company or the Seller in connection with the consummation of agreement; (n) all liabilities created
or arising under any framework arrangements for the purchase of inventory which are due and payable; (o) all lease obligations;
(p) all liabilities with respect to the Grants; in each case as of the Closing Date.

 

“Environmental,
Health and Safety Law” means: (a) any Law relating to pollution or protection of the environment, public health or safety,
worker health and safety or natural resources, including laws relating to the use, treatment, storage, cleanup, transportation
or handling of Hazardous Materials or the release, discharge, spill, emission, treatment, transportation or disposal of Hazardous
Materials; and (b) any Law relating to exposure to toxic, hazardous or other controlled, prohibited or regulated substances.

 

“Exchange
Rate” – the exchange rate of $ to NIS published by the Bank of Israel.

 

“Fully
Diluted Basis” means the number of the issued and outstanding share capital of the Company after giving effect to the
exercise, exchange or conversion of any outstanding securities, rights, options, warrants, calls, commitments or agreements of
any nature or character (whether debt or equity) that are, directly or indirectly, exercisable or exchangeable for, or convertible
into or otherwise represent the right to purchase or otherwise receive from such entity, directly or indirectly, any such shares
or other outstanding arrangement to acquire from such entity at any time or under any circumstance, shares of such entity or any
such other securities of such entity, including all Options and/or shares reserved by such entity for grant or issuance to officers,
directors, employees and consultants under all contracts theretofore approved by the Company.

 

    	 

    	-3-

    

 

“Grants”
shall have the meaning ascribed to such term in Section 4.22 below.

 

“Hazardous
Materials” means each and every element, compound, chemical mixture, contaminant, pollutant, material, waste or other
substance which is defined, determined or identified as hazardous or toxic under any Environmental, Health and Safety Law.

 

“Intellectual
Property” means all of the following and similar intangible property and related proprietary rights, interests and protections,
however arising, pursuant to the laws of any jurisdiction throughout the world, including such property that is owned by the Company
(“Company Intellectual Property”) and that in which the Company holds exclusive or nonexclusive rights or interests
granted by license from other Persons, including any of the Seller or Seller’ Affiliates (“Licensed Intellectual
Property”): (a) trademarks, service marks, trade names, brand names, logos, trade dress and other proprietary indicia
of goods and services, whether registered or unregistered, and all registrations and applications for registration of such trademarks,
including intent-to-use applications, all issuances, extensions and renewals of such registrations and applications and the goodwill
connected with the use of and symbolized by any of the foregoing; (b) internet domain names, whether or not trademarks, registered
in any top-level domain by any authorized private registrar or governmental authority; (c) original works of authorship in any
medium of expression, whether or not published, all copyrights (whether registered or unregistered), all registrations and applications
for registration of such copyrights, and all issuances, extensions and renewals of such registrations and applications; (d) confidential
information, recipes, formulae, designs, devices, technology, know-how, research and development, inventions, methods, processes,
compositions, customer relations and other trade secrets, whether or not patentable; and (e) patented and patentable designs and
inventions, all design, plant and utility patents, letters patent, utility models, pending patent applications and provisional
applications and all issuances, divisions, continuations, continuations-in-part, reissues, extensions, reexaminations and renewals
of such patents and applications.

 

“Intellectual
Property Agreements” means all contracts related to Intellectual Property, including all: (a) licenses of Intellectual
Property by the Company to any third party; or (b) licenses of Intellectual Property by any third party to the Company.

 

“Knowledge”
(and expressions of similar import) means with respect to the Seller, the knowledge of the Seller with the assumption that the
Seller shall have made reasonable and diligent inquiry of the matters presented.

 

“Lien”
shall have the meaning ascribed to such term in Section 3.1 below.

 

“Losses”
means any and all losses, liabilities, claims, damages, diminutions in value, fines, payments, Taxes, necessary costs and expenses,
whether or not arising from or in connection with any third-party claims including reasonable attorneys’ fees.

 

    	 

    	-4-

    

 

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that which, individually or in the aggregate,
is materially adverse to the Company’s Business, in each case other than to the extent caused by, arising out of or attributable
to any of the following: (i) changes in the economy or financial or securities markets (including credit markets) in general,
or changes in the economic, business, political, financial (including without limitation any changes to interest rates or exchange
rates) or regulatory environment generally, in any country or region in which any of the Company or its Subsidiaries conducts
a material portion of its business; (ii) changes in law or applicable accounting regulations or principles or interpretations
thereof; (iii) changes that arise out of the existence or announcement of this Agreement or out of any other actions required
by this Agreement or the Transactions or any action taken or not taken by the Company or any of its Subsidiaries pursuant to a
request of the Purchaser; (iv) any national or international political or social conditions, including the engagement by Israel
or any other country in acts of war or armed hostilities or the occurrence of any acts of terrorism or any escalation or worsening
of any acts of war, armed hostilities or the occurrence of terrorism; (v) the failure by the Company to meet its internal or published
projections, budgets, plans or forecasts of its revenues, earnings, or other financial performance or results of operations; and
(vi) changes related to COVID-19 and/or COVID-19 Measures.

 

“Material
Adverse Change” - any event, occurrence, fact, condition or change that is, or would reasonably be expected to become
a Material Adverse Effect.

 

“OmniQ
Closing Shares” shall have the meaning ascribed to such term in Section 3.2 below.

 

“OmniQ
Common Stock” means the common stock, par value $0.001 per share of OmniQ.

 

“Option
Period” - 12 months following the Closing Date.

 

“Options”
means any outstanding: (a) securities, instruments or obligations that are or may become convertible into or exchangeable for
shares of the Company or other securities of any Company; (b) subscriptions, options, calls, convertible notes, warrants or rights
(whether or not currently exercisable) to acquire any shares or other securities of the Company; and (c) contracts or other arrangement
under which the Company may become obligated to sell or otherwise issue any shares or any other securities of the Company or any
of its current or future Affiliates.

 

“Person”
means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization,
including a governmental authority.

 

“Purchased
Shares” shall have the meaning ascribed to such term in Section 3.1 below. 

 

“Share
Value” means the average closing price for OmniQ Common Stock on the OTC for the 30 days ending one trading day immediately
prior to (but not including) the signing date of this Agreement.

 

    	 

    	-5-

    

 

“Transaction
Documents” means this Agreement, its exhibits and schedules and any and all other contracts, certificates and documents
attached hereto.

 

“Transactions”
means the purchase of Company Shares by the Purchaser against the payment thereof, and all the other transactions contemplated
by this Agreement and the other Transaction Documents.

 

	2.	Definitional
                                         and Interpretative Provisions

 

(a)
the words “hereof”, “herein” and “hereunder” and words of like import used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement; (b) the captions herein are included
for convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections,
Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement, unless otherwise specified; (c) all
Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if
set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have
the meaning as defined in this Agreement; (d) any singular term in this Agreement shall be deemed to include the plural, and any
plural term the singular (unless the context requires otherwise); (e) whenever the words “include”, “includes”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”,
whether or not they are in fact followed by those words or words of like import; (f) all references to time shall refer to Israel
time. The word “extent” in the phrase “to the extent” means the degree to which a subject or other thing
extends, and such phrase shall not mean simply “if”; (g) the use of the word “or” shall not, necessarily,
be exclusive; (h) any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall
not be applied in the construction or interpretation of this Agreement; (i) any agreement or instrument defined or referred to
herein, or in any agreement or instrument that is referred to herein, means such agreement or instrument as from time to time
amended, modified or supplemented until the date hereof. Other terms may be defined elsewhere in the text of this Agreement and
shall have the meaning indicated throughout this Agreement; (j) the term “foreign” when used with respect to Applicable
Law or a governmental authority shall refer to all applicable jurisdictions other than Israel; (k) the term “Dollar”,
“$”, or US$ shall refer to the currency of the United States of America.

 

	3.	PURCHASE
                                         OF COMPANY SHARES 

 

		3.1.	Purchased
                                         Shares. Subject to the terms and conditions set forth in this Agreement, and in reliance
                                         on the representations, warranties and covenants of the Seller, at the Closing, the Seller
                                         shall sell, assign, transfer and deliver to the Purchaser 5,100 Company Shares, which
                                         constitute 51% of the Company Shares outstanding on a Fully Diluted Basis on the Closing
                                         Date (the “Purchased Shares”) and the Purchaser shall purchase, acquire
                                         and accept from the Seller the Purchased Shares, in each case, free and clear of any
                                         and all liens, mortgages, pledges, charges, security interests, encumbrances, hypothecations
                                         or third party rights except rights and restrictions set forth in the Articles (as defined
                                         below) or Applicable Law (collectively, “Liens”).

                                                                                 

                                                                                As
                                         a result of the foregoing, immediately after the Closing, the Purchaser shall be the
                                         owner, free and clear of any and all Liens, of the Purchased Shares.

                                                                                

 

 

    	 

    	-6-

    

 

		3.2.	Closing
                                         Consideration. In consideration of the sale, assignment, transfer and delivery of
                                         the Purchased Shares to the Purchaser at the Closing under the terms and conditions of
                                         this Agreement, the Seller shall be entitled to receive from the Purchaser, on the Closing
                                         Date, the amount of 23,740,500 NIS (the “Closing Consideration”).
                                         The Closing Consideration will be paid in the following manner: (a) OmniQ Common Stock
                                         that shall be issued by OmniQ to the Seller on the Closing Date, having a Share Value
                                         of $2,000,000 (“OmniQ Closing Shares”); and (b) the Closing Consideration
                                         minus an amount in NIS equivalent to $2,000,000 according to the Exchange Rate known
                                         on the Closing Date.

 

		3.3.	Option
                                         to purchase Additional Shares

 

		3.3.1.	Subject
                                         to the purchase of the Purchased Shares, the Seller hereby grants the Purchaser an irrevocable
                                         Option to purchase, during the Option Period, up to 4,900 additional Company Shares which
                                         constitute the remaining 49% of the Company Shares on a Fully Diluted Basis, at a share
                                         purchase price of 465,500 NIS per each 1% of the Company Shares on a Fully Diluted Basis
                                         (“Exercise Price”) all in accordance of the terms detailed here below
                                         (in this section “Option” and “Option Shares”).

 

		3.3.2.	The
                                         Option shall remain in force until the lapse of the Option Period, and may be extended
                                         prior to its expiration by a written agreement by the Parties. Unless extended as aforesaid,
                                         the Option shall immediately and automatically expire upon the lapse of the Option Period.

 

		3.3.3.	The
                                         Purchaser may only exercise the Option in whole or by an exercise pursuant to which the
                                         Purchaser shall purchase at least 26% of the Company Shares on a Fully Diluted Basis
                                         (the “Specific Partial Exercise”). Should the Purchaser exercise the
                                         Specific Partial Exercise he shall have the right to complete the purchase of the remaining
                                         up to 23% of the Company Shares on a Fully Diluted Basis in a single exercise until no
                                         later than the lapse of the Option Period. No other partial exercise shall be allowed.

 

		3.3.4.	In
                                         the event the Purchaser wishes to exercise the Option with respect to the Option Shares
                                         in accordance with the exercise alternatives set forth in Section ‎3.3.3 above, the
                                         Purchaser shall send the Seller a written notice (the date of which is herein referred
                                         to as the “Notice Date”) specifying the number of Option Shares that
                                         the Purchaser seek to purchase (in accordance with the available alternatives set forth
                                         in Section ‎3.3.3 above) and the date on which such Option Shares are to be purchased,
                                         which shall not be earlier than 4 business days nor later than twenty business days after
                                         the Notice Date (each such date herein referred to as the “Exercise Date”).

 

		3.3.5.	On
                                         each Exercise Date:

 

		3.3.5.1.	the
                                         Purchaser shall pay the Seller an amount equal to the Exercise Price multiplied by the
                                         percentage of Option Shares to be purchased on such Exercise Date (the “Option
                                         Consideration”);

 

		3.3.5.2.	The
                                         Purchaser shall deliver to the Seller true and correct copies of unanimous resolutions
                                         of the Purchaser’s shareholders and the Purchaser’s Board of Directors substantially
                                         in the form attached hereto as Schedule 3.3.5.2.

 

    	 

    	-7-

    

 

		3.3.5.3.	The
                                         Seller shall provide all required documents to consummate the transaction, including
                                         but not limited to, the share transfer deeds and share certificates and any additional
                                         document required for the transfer of the Option Shares to the Purchaser according to
                                         each such notice.

 

		3.3.5.4.	In
                                         case of Specific Partial Exercise by the Purchaser, The Seller and the Purchaser shall
                                         cause the declaration of distributable profits of the Company, as dividend to the parties
                                         in accordance with their respective holding percentage in the Company immediately prior
                                         to the Exercise Date, provided that the amount of divided that will be declared will
                                         not reduce the Company’s Shareholder Equity following such declaration, below the
                                         amount of the Company’s Minimum Shareholder Equity as stated in section 4.6 below
                                         (it being understood, however, that a shortage of up to 10% in the Company’s Minimum
                                         Shareholder Equity shall not affect the distributable profits calculation). Accrued dividends
                                         (declared but not yet paid) shall bear interest at the annual rate of 2% as of the respective
                                         declaration date and until actual distribution thereof. Dividend distribution shall rank
                                         senior and in priority to any other indebtedness, whether now existing or hereafter created.

 

		3.3.5.5.	In
                                         case of full exercise (i.e. purchase of all Option Shares) by the Purchaser, the Seller
                                         and the Purchaser shall cause the declaration and distribution of the distributable profits
                                         of the Company, as dividend to the parties in accordance with their respective holding
                                         percentage in the Company immediately prior to the Exercise Date.

 

		3.3.5.6.	In
                                         case of Specific Partial Exercise by the Purchaser, all personal guarantees provided
                                         by the Seller or any affiliate thereof for the benefit of the Company or any Subsidiary
                                         thereof (the “Personal Guarantees”) shall be replaced such that each
                                         party shall provide personal guarantees (severally and not jointly with the other party)
                                         or other satisfactory guarantees to the relevant lender, corresponding to such party’s
                                         respective holding percentage in the Company following the Specific Partial Exercise.

 

The
Seller will not require any personal guarantees from any individual officer, director or shareholder of Purchaser (it being understood,
however, that such requirement may be invoked by the applicable bank).

 

    	 

    	-8-

    

 

		3.3.5.7.	In
                                         case of full exercise (i.e. purchase of all Option Shares), the Purchaser shall release
                                         the Seller and any affiliate thereof from all Personal Guarantees and assume such Personal
                                         Guarantees or other satisfactory guarantees to the relevant lender and all obligations
                                         thereunder.

 

The
Seller will not require any personal guarantees from any individual officer, director or shareholder of Purchaser (it being understood,
however, that such requirement may be invoked by the applicable bank).

 

		3.3.5.8.	In
                                         case of full exercise (i.e. purchase of all Option Shares), the Company shall purchase
                                         and provide the Seller with a copy of a customary “Run Off” directors’
                                         and officers’ liability insurance policy from a reputable and financially sound
                                         insurance carrier that (a) covers claims arising from facts or events which occurred
                                         on or prior to the Closing Date arising from acts or omissions of any present or former
                                         employees, officers and directors of the Company and the Subsidiaries for a period of
                                         not less than seven (7) years after the Closing Date, (b) provides for terms and conditions
                                         no less favorable in the aggregate to the protection provided by the directors’
                                         and officers’ liability insurance policies maintained by the Purchaser which are
                                         in effect immediately prior to the Closing Date and (c) contains such other terms and
                                         conditions that are reasonably satisfactory to the Seller.

 

		3.3.6.	All
                                         Option Shares shall be and shall remain throughout the Option Period, free and clear
                                         of any Liens and shall be so transferred to the Purchaser upon exercise of its Option(s).
                                         Seller shall not sell, lease pledge or otherwise make any disposition in relation or
                                         upon the Option Shares, during the Option Period.

 

		3.3.7.	Notwithstanding
                                         the provision of Section ‎3.3.6 above, out of the Purchased Shares, Company shares
                                         which constitute 2% of the Company Shares on a Fully Diluted Basis will not be sold,
                                         leased or pledged and shall be deposited and held in escrow (the “Escrowed Shares”)
                                         together with all documents required to consummate its transfer to the Seller (including
                                         but not limited to, the share transfer deeds and share certificates) all in accordance
                                         with the Escrow Agreement attached as Schedule 3.3.7 (the “Escrow
                                         Agreement”). If, at any time during the Option Period, the Escrowed Shares
                                         represent less than 2% of the Company Shares on a Fully Diluted Basis, the Purchaser
                                         undertakes to immediately deposit in escrow an additional amount of Company Shares which
                                         would represent, together with the Escrowed Shares, 2% of the Company Shares on a Fully
                                         Diluted Basis and such additional Company shares shall be subject to the same Escrow
                                         Agreement as set forth under this Section 3.3.7 and the Purchaser shall exercise all
                                         documents required with respect thereto (including the share transfer deed to be deposited
                                         in escrow in accordance with Schedule 3.3.7).

 

    	 

    	-9-

    

 

		3.3.8.	If
                                         the Purchaser does not exercises the Option as to at least the Specific Partial Exercise
                                         during the Option Period in accordance with the provisions of this Section 3.3:

 

		3.3.8.1.	The
                                         Escrow Shares shall be transferred to the Seller, within 3 business days after the expiration
                                         of the Option Period, without any consideration

 

		3.3.8.2.	The
                                         parties shall perform all actions and sign all documents necessary to consummate the
                                         provisions of this Section ‎3.3.8.

 

The
Seller will not be entitled to any additional payment and/or compensation other than the transfer of the Escrow Shares according
to section ‎3.3.8.1 above, and shall not have any claim or demand against the Purchaser for not exercising the Option or not
exercising the Option in respect to all the Option Shares (without derogating from any other causes of action, rights or remedies
which the Seller may be entitled to with respect to any other act or omission of the Purchaser), it being understood that in any
case of Specific Partial Exercise, the Seller will not be entitled to the Escrow Shares according to this section 3.3.8.

 

		3.3.8.3.	The
                                         composition of the board shall be adjusted in accordance with the principles set forth
                                         in Section ‎3.6.3.1.

 

		3.3.8.4.	The
                                         voting rights granted pursuant to Section ‎3.6.1 shall immediately expire and terminate.

 

		3.3.8.5.	In
                                         case of transfer of the Escrow Shares to the Seller according to the provisions of this
                                         section 3.3.8, guarantees provided by the Seller and the Purchaser or any affiliate thereof
                                         for the benefit of the Company or any Subsidiary thereof shall be replaced corresponding
                                         to such party’s respective holding percentage in the Company following the transfer
                                         of the Escrow Shares.

 

		3.3.9.	Withholding
                                         Taxes. The Purchaser shall be entitled to deduct and withhold from the Closing Consideration
                                         and the Option Consideration (collectively “Consideration”) such amounts
                                         as it is required by Applicable Law to deduct and withhold from payment of the Consideration,
                                         unless the Seller provides the Purchaser with a certificate from the Israel Tax Authority
                                         (the “ITA”): (a) exempting the Purchaser from the duty to withhold
                                         Israeli taxes with respect to the applicable Consideration of the Seller; or (b) determining
                                         the applicable rate of Israeli tax to be withheld from the applicable Consideration of
                                         the Seller; or (c) providing any other instructions regarding the payment or withholding
                                         with respect to the applicable Consideration of the Seller, all in a form satisfactory
                                         to the Purchaser (a “Tax Withholding Certificate”), in which case
                                         the Purchaser shall act in accordance with the terms of such Tax Withholding Certificate.
                                         To the extent that amounts are so withheld by the Purchaser, the Purchaser shall promptly
                                         pay such amounts to the ITA and promptly provide the Seller with written confirmation
                                         as to the amount so withheld. Any withheld amounts shall be treated for all purposes
                                         of this Agreement as having been paid to the Seller as part of the applicable Closing
                                         Consideration and/or Option Consideration due to the Seller.

 

    	 

    	-10-

    

 

	 	3.4.	Closing.
                                         The closing of the Transaction (the “Closing”) shall take place within
                                         14 Business Days following the date on which all the Conditions to Closing have been
                                         met, it being understood that if such date falls prior to the end of a calendar month,
                                         the closing shall be postponed to the nearest end of the applicable calendar month (such
                                         date is hereinafter referred to as the “Closing Date”), and shall
                                         then be effective as of the Closing Date. The parties may, by mutual written consent,
                                         precede or postpone the Closing Date. In the event that the Conditions to Closing have
                                         not been met within 90 days as of the date hereof, each party shall have the right to
                                         terminate this Agreement and the parties shall be released of any of the obligations
                                         thereof. Nevertheless, In the event that any condition to Closing is in the process of
                                         being obtained, the Parties shall reasonably extend such period until the condition will
                                         be fulfilled.

 

At
the Closing, the following transactions shall occur, which transactions shall be deemed to take place simultaneously and no transaction
shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required
documents delivered:

 

		3.4.1.	The
                                         Company and the Seller shall deliver to the Purchaser the following documents:

 

		3.4.1.1.	True
                                         and correct copies of unanimous resolutions of the Company’s shareholders substantially
                                         in the form attached hereto as Schedule ‎3.4.1.1;

 

		3.4.1.2.	True
                                         and correct copies of unanimous resolutions of the Board of Directors of the Company
                                         (the “Board”) substantially in the form attached hereto as Schedule
                                         ‎3.4.1.2;

 

		3.4.1.3.	Validly
                                         executed share certificate covering the Purchased Shares, issued in the name of the Purchaser,
                                         in the form attached hereto as Schedule 3.4.1.3;

 

		3.4.1.4.	The
                                         shareholder register of the Company evidencing the transfer of ownership of the Purchased
                                         Shares as of the Closing Date to the Purchaser certified by an officer of the Company;

 

		3.4.1.5.	Duly
                                         executed share transfer deeds in the form attached hereto as Schedule ‎3.4.1.5,
                                         effecting the transfer of the Purchased Shares from the Seller to the Purchaser
                                         together, with either (a) the share certificates therefor or (b) affidavits of loss of
                                         certificates;

 

    	 

    	-11-

    

 

		3.4.1.6.	Cancelled;

 

		3.4.1.7.	Resolutions
                                         signed by the competent organs of the Company, ratifying and reapproving all of the Company’s
                                         engagements with Interested Parties in the last 7 years, substantially in the form attached
                                         hereto as Schedule ‎3.4.1.7;

 

		3.4.1.8.	Waivers
                                         signed by the Seller as to employer-employee relations with the Company and its termination,
                                         as a Director in the Company and any of its subsidiaries, any event or circumstance prior
                                         to Closing, in the form attached hereto as Schedule  ‎3.4.1.8;

 

		3.4.1.9.	Duly
                                         completed and executed notices to the Israeli Registrar of Companies in connection with
                                         this Agreement, including without limitation, notices regarding the transfer of the Purchased
                                         Shares to the Purchaser and the appointment of the Purchaser’s directors to the
                                         Company’s Board;

 

		3.4.1.10.	Such
                                         other documents or instruments as the parties deem reasonably required to effect the
                                         transactions contemplated by the Transaction Documents.

 

		3.4.1.11.	Executed
                                         extension addendums to the Leased Real Property agreements in the form attached hereto
                                         as Schedule 3.4.1.11.

 

		3.4.2.	The
                                         Purchaser shall:

 

		3.4.2.1.	transfer
                                         to the Seller of the Closing Consideration;

 

		3.4.2.2.	transfer
                                         to the Seller of the OmniQ Closing Shares and delivery to the Seller of a duly executed
                                         legal opinion by OmniQ US legal counsel in a form to be agreed between the parties, confirming,
                                         that OmniQ Closing Shares:

 

		3.4.2.2.1.	have
                                         been duly and validly authorized, are fully paid and were issued free of any Liens;

 

		3.4.2.2.2.	no
                                         consent, approval or authorization of, or filing with, any governmental or regulatory
                                         agency or authority is required for the issuance thereof and OmniQ has all requisite
                                         corporate power and authority to consummate such issuance;

 

		3.4.2.3.	deliver
                                         to the Seller true and correct copies of unanimous resolutions of the Purchaser’s
                                         shareholders and the Purchaser’s Board of Directors substantially in the form attached
                                         hereto as Schedule 3.4.2.3.

 

    	 

    	-12-

    

 

		3.4.2.4.	deliver
                                         to the Seller letters of consent signed by all the banks which have pledges over the
                                         Company’s assets, approving the control change contemplated under this Agreement
                                         without applying any unreasonable restrictions or conditions upon the Company and/or
                                         the Purchaser.

 

		3.4.3.	The
                                         Company shall enter into the Consulting Agreements in the forms attached hereto as Schedule
                                         3.4.3a and Schedule 3.4.3b (the “Dangot Consulting Agreement”
                                         and “OMNIQ Consulting Agreement”, accordingly and together the “Consultancy
                                         Agreements”), the main terms of which are as follows:

 

		3.4.3.1.	The
                                         Consultancy Agreements shall entitle the parties, in consideration of the services granted
                                         hereunder, to an annual aggregate compensation of NIS1,000,000 plus VAT, the allocation
                                         of which shall be distributed between the parties in accordance with their respective
                                         holding percentage in the Company. Accordingly, such allocation shall be updated each
                                         time the holding percentage of each party in the Company changes.

 

		3.4.3.2.	Termination
                                         of either Consultancy Agreement by the Company shall automatically cause the termination
                                         of the other Consultancy Agreement.

 

		3.4.4.	The
                                         Company shall enter into the Management Agreement with the Seller in the form attached
                                         hereto as Schedule ‎3.4.4, pursuant to which, inter alia, the Seller
                                         shall provide executive chairman services to the Company in consideration of a monthly
                                         compensation of NIS100,000 plus VAT.

 

		3.4.5.	The
                                         Purchaser hereby confirms and acknowledges that it is aware of Mr. Arie Rauch’s
                                         (“Rauch”) entitlement to compensation for the Transaction in accordance
                                         with the letter attached hereto as Schedule 3.4.5, which compensation,
                                         consists of the following amounts on top of and in addition to the consideration payable
                                         to the Seller herein (the: “Rauch Compensation”):

 

		3.4.5.1.	NIS
                                         1,249,500 payable on the Closing Date (it being understood that up to US$100,000 of the
                                         aforesaid amount payable at the Closing Date may be paid in OmniQ Common Stock, in which
                                         case all provisions, restrictions and rights applied to the Seller with respect to the
                                         OmniQ Closing Shares shall apply mutatis mutandis on the OmniQ Common Stock issued to
                                         Rauch and the value of such OmniQ Closing Shares issuable to the Seller as per Section
                                         ‎3.2 shall be reduced accordingly).

 

		3.4.5.2.	In
                                         case of full exercise by the Purchaser (i.e. purchase of all Option Shares) - NIS 1,200,500
                                         payable on the Exercise Date, or pro rata-portion thereof in case of Specific Partial
                                         Exercise.

 

    	 

    	-13-

    

 

		3.4.5.3.	Notwithstanding
                                         any contrary provision herein, it is hereby agreed and acknowledged that the Seller may
                                         instruct to increase the Rauch Compensation beyond the amounts set forth in Sections
                                         ‎3.4.5.1 and ‎3.4.5.2 above, it being understood, however, that such increase
                                         shall be deducted from the respective Consideration payable to the Seller (i.e. the aggregate
                                         Consideration payable under this Transaction shall not be affected by such increase).

 

		3.4.6.	The
                                         Rauch Compensation shall be fully borne and financed by the Seller. Between the signing
                                         date and the Closing Date, the parties shall negotiate in good faith:

 

		3.4.6.1.	The
                                         terms of distributing the Rauch Compensation (it being understood that such Rauch Compensation
                                         shall be granted against receipt of waiver signed by Rauch as to any entitlement to any
                                         further compensation from either party herein with respect to the Transaction, as to
                                         the Company Shares and any of the Company’s subsidiaries).

 

		3.4.6.2.	The
                                         continuance or termination of engagement of Rauch with the Company and terms thereof.

 

		3.4.7.	Notwithstanding
                                         any contrary provision herein, it is hereby agreed and acknowledged that any Schedule
                                         referenced in this Agreement which has not been prepared as of the signing date shall
                                         be prepared in a mutually satisfactory form, as determined by the parties in good faith,
                                         prior to the Closing Date.

 

		3.5.	Conditions
                                         to Closing

 

		3.5.1.	Mutual
                                         Conditions

 

The
respective obligations of each of the parties are subject to satisfaction or waiver, at or prior to the Closing Date, of each
of the following conditions:

 

		3.5.1.1.	at
                                         the Closing Date, there shall be in effect no preliminary or permanent injunction or
                                         other order issued by any governmental authority of competent jurisdiction which restrains,
                                         prohibits or otherwise makes illegal the consummation of the Transaction.

 

		3.5.1.2.	Receipt
                                         of a confirmation in writing from the Competition (Antitrust) Commissioner pursuant to
                                         which a merger notice is not required with respect to the consummation of the Transaction,
                                         in accordance with the request letter attached hereto as Schedule ‎3.5.1.2.

 

    	 

    	-14-

    

 

		3.5.2.	Purchaser’s
                                         Conditions

 

The
obligations of the Purchaser to consummate the Closing shall be further subject to the satisfaction or waiver by the Purchaser
at or prior to the Closing, of each of the following conditions:

 

		3.5.2.1.	Seller’s
                                         representations shall be true and correct in all material respects as of the date of
                                         this Agreement and as of the Closing Date as though made on and as of such date (unless
                                         any such representation or warranty is made only as of a specific date, in which event
                                         such representation or warranty shall be true and correct in all but de minimis respects
                                         only as of such specific date);

 

		3.5.2.2.	the
                                         Seller shall have performed in all material respects the obligations, and complied with
                                         the agreements and covenants and provided all documents and approvals according to the
                                         provisions of section 3.4.1 above at or prior to the Closing Date.

 

		3.5.2.3.	the
                                         Company’s articles of association shall be replaced by the version attached hereto
                                         as Schedule ‎3.5.2.3.

 

		3.5.2.4.	The
                                         approval of Seller’s Board of Directors shall have been obtained according to which
                                         since the date of this Agreement until the Closing Date (included), no Material Adverse
                                         Change shall have occurred.

 

		3.5.3.	Seller’s
                                         Conditions 

 

The
obligations of the Seller to consummate the Closing shall be further subject to the satisfaction or waiver by Seller at or prior
to the Closing of the following conditions:

 

		3.5.3.1.	the
                                         representations of the Purchaser shall be true and correct as of the date of this Agreement
                                         and as of the Closing Date as though made on and as of such date (unless any such representation
                                         or warranty is made only as of a specific date, in which event such representation or
                                         warranty shall be true and correct in all material respects only as of such specific
                                         date);

 

		3.5.3.2.	the
                                         Purchaser shall have performed in all material respects the obligations, and complied
                                         with the agreements and covenants, required to be performed by or complied with by it
                                         under this Agreement at or prior to the Closing Date.

 

		3.5.3.3.	all
                                         personal guarantees provided by the Seller or any affiliate thereof for the benefit of
                                         the Company or any Subsidiary thereof shall be replaced such that the Purchaser shall
                                         assume 51% of all such personal guarantees (severally and not jointly with the Seller).
                                         The Seller will not require any personal guarantees from any individual officer, director
                                         or shareholder of Purchaser (it being understood, however, that such requirement may
                                         be invoked by the applicable bank).

 

    	 

    	-15-

    

 

		3.5.4.	Waiver
                                         of Conditions

 

		3.5.4.1.	The
                                         conditions set forth in 3.5.1 may only be waived in writing by the Purchaser and Seller.

 

		3.5.4.2.	The
                                         conditions set forth in 3.5.2 may only be waived in a writing duly executed by the Purchaser.

 

		3.5.4.3.	The
                                         conditions set forth in 3.5.3 may only be waived in a writing duly executed by the Seller.

 

		3.6.	Post-Closing
                                         Obligations

 

		3.6.1.	The
                                         Seller shall grant the Purchaser’s CEO with full and irrevocable voting rights
                                         with respect to the OmniQ Closing Shares, which will not apply as to decisions regarding
                                         the Company, directly or indirectly (including any decisions regarding the Company’s
                                         share capital or any rights related thereto).

 

		3.6.2.	OmniQ
                                         Closing Shares Top-Up Right-Top-Up Mechanism. Following 18 months from the Closing
                                         Date (the “Examination Date”), and for a period of 2 months afterwards
                                         (the “Top-Up Right Period”) in the event that the value of OmniQ Closing
                                         Shares has not equaled at least $2 million according to the closing price for OmniQ Common
                                         Stock on the OTC, for at least 3 periods of 20 consecutive days during the final 12 months
                                         prior to the Examination Date (the “Examination Period”) and/or the
                                         aggregate volume of trading of the OmniQ Common Stock during the Examination Period,
                                         on all public stock exchange markets, was less than the amount of the OmniQ Closing Shares
                                         multiplied by 2, then the following mechanism shall apply:

 

		3.6.2.1.	The
                                         parties shall appoint an independent third-party broker (should the parties fail to agree
                                         on the identity of the broker within 14 days, the broker shall be IBI Investment House)
                                         who shall attempt to sell the OmniQ Closing Shares, in whole or in part, for a period
                                         of 60 days as of the lapse of the Examination Date (the “Sell-Off Period”),
                                         under such price as the broker deems appropriate, subject to its sole discretion;

 

		3.6.2.2.	Should
                                         the sale consideration thereof be less than $2 million, or the relative sum in case that
                                         Seller has already sold a portion of its OmniQ Closing Shares,(after deduction of broker
                                         and transaction costs which shall be borne by the Purchaser and subject to adjustment
                                         as per Section ‎3.4.5.1), for any reason (whether due to failure to sell the OmniQ
                                         Closing Shares, in whole or in part or due to receipt of a lower purchaser price or due
                                         to any other reason), then the Purchaser shall have the obligation to pay the Seller
                                         the difference between the actual price received for the OmniQ Closing Shares and $2
                                         million or the relative sum (subject to adjustment as per Section ‎3.4.5.1), which
                                         payment shall be made in a wire transaction within 7 days as of the lapse of the Sell-Off
                                         Period. Any unsold OmniQ Closing Shares will be transferred clean and clear of any Lien
                                         to the Purchaser upon such payment.

 

    	 

    	-16-

    

 

		3.6.3.	The
                                         Parties shall act according to the following principles:

 

		3.6.3.1.	Company’s
                                         board shall be comprised of up to four (4) directors. Each 25% of the Company Shares
                                         on a fully diluted basis, shall entitle its holder(s) the right to nominate one 1 director
                                         to the Company Board.

 

		3.6.3.2.	Company
                                         resolutions, including Company Board and general meeting resolutions, will be made by
                                         a majority vote (51%), except resolutions in the following matters, which shall require
                                         the consent of all shareholders / directors participating in the meeting, and unless
                                         such resolutions are according to this Agreement:

 

		3.6.3.2.1.	Changes
                                         in Company Share Capital;

 

		3.6.3.2.2.	Liquidation
                                         of the Company;

 

		3.6.3.2.3.	Change
                                         in Company’s articles of association which negatively affects shareholder’s
                                         rights attached to Company Shares;

 

		3.6.3.2.4.	Change
                                         in Company’s dividend distribution policy according to Company’s amended
                                         articles of association as formed according to section ‎3.5.2.3;

 

		3.6.3.2.5.	Material
                                         Change in the field and/or strategy and/or nature and/or area of Company’s Business;

 

		3.6.3.2.6.	Interested
                                         party transaction including, inter alia, with any shareholder, director or officer or
                                         any affiliate thereof other than according to this agreement;

 

		3.6.3.2.7.	Taking
                                         or providing guarantee to third parties, debts and liabilities and creation of any Lien
                                         over assets of the Company in excess of US$200,000.

 

		3.6.3.2.8.	Any
                                         decision in relation to the sale, disposal of all or substantially all of the assets
                                         of the Company;

 

		3.6.3.2.9.	Any
                                         resolution regarding Shareholder loans or other funding of the Company or providing guaranties
                                         in favor of the Company; or

 

    	 

    	-17-

    

 

		3.6.3.2.10.	Any
                                         additional issuance of capital stock or securities convertible into capital stock of
                                         the Company.

 

In
any case of contradiction between the provisions of this Agreement and the Articles of Association of the Company the provisions
of this Agreement shall govern.

 

		3.6.4.	Following
                                         the Closing, the Company shall examine and discuss the employment of key employees stated
                                         in Schedule 3.6.4, and upon mutual agreement with the Company’s CEO
                                         shall determine their employment terms including termination of their engagement with
                                         the Company.

 

		3.6.5.	The
                                         Parties will implement an option plan for key employees and executives of the Company,
                                         that will entitle them to receive options to acquire OmniQ Common Stock under the terms
                                         to be set by board and subject to the Capital Gain track under section 102 of the Tax
                                         Ordinance

 

		3.7.	2020
                                         Dividend declaration and distribution. Seller may declare, at any time prior
                                         to the Closing date, a dividend in an amount which shall not exceed $300,000 according
                                         to the Exchange Rate known on the declaration date with respect to the year of 2020 (the
                                         “Dividend”). The Company shall pay the Dividend after the Closing
                                         Date subject to maintaining sufficient net working capital as to be agreed by the Company’s
                                         and the Purchaser’s CFOs. Accrued dividends (declared but not yet paid) shall bear
                                         interest at the annual rate of 2% as of the respective declaration date and until actual
                                         distribution thereof. Dividend distribution shall rank senior and in priority to any
                                         other indebtedness, whether now existing or hereafter created.

 

		3.8.	2021
                                         Dividend (up to the Closing Date) declaration and distribution. the Company shall
                                         prepare an internal unaudited and unreviewed balance sheet for the period between January
                                         1st, 2021 and Closing Date (the “Interim Period”). The
                                         Company’s and the Purchaser’s CFOs will jointly discuss such report and reach
                                         mutual understandings as to the distributable profits accumulated during the Interim
                                         Period subject to maintaining the Minimum Shareholder Equity as stated in section 4.6A
                                         below, it being understood, however, that a shortage of up to 10% in the Company’s
                                         Minimum Shareholder Equity shall not affect the distributable profits calculation (the
                                         “Agreed Distributable Profit”). The Company shall be entitled to declare,
                                         prior to Closing, a dividend in an amount which shall not exceed the Agreed Distributable
                                         Profit and such declared dividend will be distributed by the Company. The Agreed Distributable
                                         Profit amount shall be adjusted thereafter, if necessary, in accordance with the Company’s
                                         audited financial statements (it being understood that the only parameter to be taken
                                         into consideration when deciding on whether or not the amount needs to be adjusted is
                                         the Company’s actual profits during the Interim Period as reflected in the audited
                                         financial statements as compared to the unaudited and unreviewed balance sheet).

 

Accrued
dividends (declared but not yet paid) shall bear interest at the annual rate of 2% as of the respective declaration date and until
actual distribution thereof. Dividend distribution shall rank senior and in priority to any other indebtedness, whether now existing
or hereafter created.

 

    	 

    	-18-

    

 

	4.	REPRESENTATIONS
                                         AND WARRANTIES OF THE SELLER The Seller hereby represents and warrants to the
                                         Purchaser that, except as set forth on the Disclosure Schedule attached as Exhibit
                                         B to this Agreement, which exceptions shall be deemed to be part of the representations
                                         and warranties made hereunder (the Disclosure Schedule shall be arranged in sections
                                         corresponding to the numbered and lettered sections contained in this Section 4,
                                         and the disclosures in any section of the Disclosure Schedule shall qualify other sections
                                         in this Section 4; and reference to a Schedule in this Section 4 shall mean a Schedule
                                         of the Disclosure Schedule), as of the date hereof (except to the extent such representations
                                         and warranties explicitly speak as of an earlier or later date), and acknowledges that
                                         the Purchaser is entering into this Agreement in reliance thereon, as follows:

 

		4.1.	Organization.

 

		4.1.1.	The
                                         Company is duly organized and validly existing under the laws of the State of Israel,
                                         and has full corporate power and authority to own, lease and operate its properties and
                                         assets and to conduct its business as now being conducted and as currently proposed to
                                         be conducted. The Company has all requisite power and authority to execute and deliver
                                         this Agreement and all other Transaction Documents to which it is a party and to consummate
                                         the Transactions to be consummated by it and perform its obligations contemplated hereby
                                         and thereby. Neither the nature of the Company’s business as now conducted or as
                                         currently proposed to be conducted nor its ownership or leasing of property require that
                                         the Company be qualified to do business or be in good standing in any jurisdiction other
                                         than the State of Israel. The Company has not taken any action or failed to take any
                                         action, which action or failure would preclude or prevent the Company from conducting
                                         its business after the Closing in the manner heretofore conducted in all material respects.
                                         The Company has all franchises, permits, licenses, and any similar authority necessary
                                         or required under any Applicable Law for the conduct of its business as now being conducted
                                         and as currently proposed to be conducted.

 

		4.1.2.	If
                                         a Seller is a corporate body: (a) it is duly incorporated and validly existing under
                                         the laws of the country of its incorporation; (b) all necessary actions and conditions
                                         have been taken, fulfilled and done in order to enable it to enter into, perform and
                                         comply with its obligations hereunder and those obligations are validly, and legally
                                         binding and enforceable upon it. Seller’s entry into and performance of or compliance
                                         with its obligations hereunder does not violate or exceed any power or restriction granted
                                         or imposed by: (i) any Applicable Law to which it is subject; or (ii) any of its constituting
                                         documents; and (iii) the entry into, performance of or compliance by such Seller with
                                         its obligations under this Agreement will not: (X) constitute a breach of any contract
                                         to which it is a party which breach will limit or prohibit the ability of the Seller
                                         to consummate the Transactions; nor (Y) result in the existence of, or oblige it to create
                                         any Lien over those assets.

 

    	 

    	-19-

    

 

	 	4.2.	Share
                                         Capital. The registered and outstanding share capital of the Company as of the
                                         Closing is NIS 10,000 divided into 10,000 Ordinary Shares of nominal value of NIS 1.00
                                         each. Other than according to this Agreement, no Company Shares are reserved for issuance
                                         upon the exercise of Options. As of the Closing, there are no other share capital, preemptive
                                         rights, convertible securities, outstanding warrants, Options or other rights to subscribe
                                         for, purchase or acquire from the Company and/or from any existing shareholder any share
                                         capital of the Company and there are no contracts or commitments, written or oral, providing
                                         for the issuance of, or the granting of, any rights to acquire, any share capital of
                                         the Company or under which the Company and/or any existing shareholder is, or may become,
                                         obligated to issue any debt or equity securities and there are no commitments, promises,
                                         agreement or undertakings with respect to grants of any Options. All issued and outstanding
                                         share capital of the Company has been duly authorized, and is validly issued and outstanding
                                         and fully paid and non-assessable. The Company Shares, when transferred in accordance
                                         with this Agreement, will be duly authorized, validly issued, fully paid, non-assessable,
                                         and free of any preemptive rights, and will have the rights, preferences, privileges,
                                         and restrictions set forth in the Company’s Articles of Association (the “Articles”)
                                         and in the Transaction Documents, and will be free and clear of any Liens of any kind
                                         and duly registered in the name of the Purchaser in the Company’s register of shareholders.
                                         The Company is under no obligation to register for trading on any securities exchange
                                         any of its securities, including any securities, which may hereafter be issued. Other
                                         than as set forth in Schedule 4.2 attached hereto, since its incorporation,
                                         there has been no declaration or payment by the Company of dividends, or any distribution
                                         by the Company of any assets of any kind to any of its shareholders, and there has been
                                         no redemption or repurchase of any of the Company’s securities. The Seller owns
                                         of record and beneficially all (100%) of the issued and outstanding share capital of
                                         the Company on a Fully Diluted Basis as of the Closing date hereof and immediately prior
                                         to the Closing (as define below); and has been determined in accordance with the Articles.
                                         Other than the Articles, there is no other contract or instrument governing the distribution
                                         of the Closing Consideration and/or Option Consideration. There are no claims or proceedings
                                         pending by any Person in connection with the distribution of each payment of the Closing
                                         Consideration and/or Option Consideration to be made pursuant to the terms herein upon
                                         the Closing.

 

	 	4.3.	Ownership
                                         of Shares. The Capitalization Table in Schedule 4.3 attached hereto
                                         (the “Capitalization Table”) sets forth the number and class of shares
                                         held by each shareholder of the Company, and the total number of reserved and granted
                                         Options as of immediately prior to Closing. The individuals identified in the Capitalization
                                         Table as the shareholders of the Company are the lawful owners, beneficially and of record,
                                         of all of the issued and outstanding share capital of the Company set forth opposite
                                         the name of such respective shareholders in the Capitalization Table and of all rights
                                         thereto free and clear of all Liens, and none of the said individuals owns any other
                                         shares, Options or other rights to subscribe for, purchase or acquire any share capital
                                         of the Company from the Company or from each other. Immediately after the Closing, the
                                         Purchaser shall be the sole owner, free and clear of any and all Liens, of 51% of the
                                         share capital of the Company on a Fully Diluted Basis.

 

    	 

    	-20-

    

 

		4.4.	Subsidiaries.
                                         The Company owns the shares of certain corporations as detailed in Schedule 4.4.
                                         Except as provided in Schedule 4.4, the Company does not own, and has not since its inception
                                         owned, directly or indirectly, any of the issued and outstanding share capital of any
                                         other company or other entity, and is not a participant in, nor does it hold any interest
                                         in any partnership, joint venture or other business entity, association or organization.
                                         There are no contracts, arrangements or commitments providing for the issuance or granting
                                         to the Company of, or the purchase by the Company of any share capital or any other interest
                                         in any company, partnership, joint venture or other business association or organization.

 

		4.5.	Directors,
                                         Officers.
                                         The directors and officers of the Company are listed in Schedule 4.5 hereto.
                                         The Company has no agreement, obligation or commitment with respect to the election or
                                         appointment of any individual or individuals as an officer or director of the Company
                                         and there is no voting agreement or other arrangement among the Company’s shareholders
                                         or to which the Company is a party in this respect, all other as set forth in the Articles.
                                         All agreements, commitments and understandings, whether written or oral, with respect
                                         to any compensation to be provided to any of the Company’s directors or officers
                                         have been fully disclosed in writing to the Purchaser.

 

		4.6.	Financial
                                         Statements. The audited financial statements (balance sheet and statement of
                                         operations, statement of changes in stockholders’ equity and statement of cash
                                         flows, including notes thereto) for the fiscal year ended December 31, 2020 are attached
                                         hereto as Schedule 4.6A (the “Annual Financial Statements”);
                                         and the unaudited and unreviewed balance sheet of the Company as of March 31, 2021 (the
                                         “Balance Sheet Date”) and the income statement for the Company for
                                         the three months ended March 31, 2021, 2021 (balance sheet and statement of operations,
                                         statement of changes in stockholders’ equity and statement of cash flows, including
                                         notes thereto), including a comparison to the applicable period from the previous year,
                                         are attached hereto as Schedule 4.6B (the “Interim Financial Statements”;
                                         and collectively with the Annual Financial Statements: the “Financial Statements”).
                                         The Financial Statements are true and correct, fairly present in all material respects
                                         the financial position of the Company as of its respective dates and the results of its
                                         operations for the periods then ended subject in the case of the Interim Financial Statements
                                         to normal year-end audit adjustments, and have been prepared in accordance with the Israeli
                                         generally accepted accounting principles (“Israeli GAAP”) consistently
                                         applied except that the Interim Financial Statements may not contain all footnotes required
                                         by Israeli GAAP. The Company does not have any material liability or obligation (whether
                                         matured or unmatured, fixed or determinable, absolute or contingent, accrued or charged,
                                         pending or due, related or unrelated to Taxes or otherwise, including without limitation,
                                         all Debt) (collectively, “Liabilities”), except Liabilities: (i) reflected
                                         in the Financial Statements; (ii) set forth under Schedule 4.6C; (iii)
                                         liabilities incurred in the ordinary course of business subsequent to the Interim Financial
                                         Statements date and (iv) obligations of a type or nature not required under Israeli GAAP
                                         to be reflected in the Financial Statements. Notwithstanding any contrary provision herein,
                                         it is hereby acknowledged that this Section 4.6 is only true and correct as of the Closing
                                         Date (and not as of the signing date).

 

4.6.A.
Main Financial Terms.

 

(A)
The Company’s Shareholder Equity as of December 31, 2020 according to its Financial Statements and as of Closing Date shall
not be less than 21.0 million NIS (“Company’s Minimum Shareholder Equity”).

 

    	 

    	-21-

    

 

 

Any
shortage of up to 10% in the Company’s Minimum Shareholder Equity shall not constitute a breach of the Seller’s representations
and warranties according to this Agreement.

 

(B)
Following the Closing Date the Company shall have a sufficient Net Working Capital to conduct its business in ordinary course
in the coming months as agreed by the Company’s and the Purchaser’s CFOs.

 

(C)
As of 31 December 2019, the Company has not distributed nor declared and shall not distribute nor declare dividends in an aggregate
amount which exceeds 8.05 million NIS, except according to section ‎3.7 above.

 

		4.7.	Business
                                         in the Ordinary Course. Except as set forth in Schedule 4.7 attached
                                         hereto, since the Balance Sheet Date, the Company has been operated only in the usual
                                         and ordinary course of business and there has not been any change in the assets, liabilities
                                         or operations of the Company, other than changes in the ordinary course of business.
                                         Without derogating from the above, since the Balance Sheet Date, there has not been:

 

		4.7.1	any
                                         change in the contingent obligations of the Company by way of guaranty, endorsement,
                                         indemnity, warranty or otherwise;

 

		4.7.2	any
                                         damage, destruction or loss, whether or not covered by insurance, on the assets, properties,
                                         financial condition, operating results or business of the Company;

 

		4.7.3	any
                                         waiver by the Company of a valuable right or of a Debt owed to it;

 

		4.7.4	any
                                         satisfaction or discharge by the Company of any Lien, claim, encumbrance or payment of
                                         any obligation except in the ordinary course of business;

 

		4.7.5	any
                                         material change or amendment to a material contract or arrangement by which the Company
                                         or any of its assets or properties is bound or subject to;

 

		4.7.6	any
                                         material change in any compensation arrangement or agreement with any employee, officer
                                         or director of the Company other than in the ordinary course of business;

 

		4.7.7	any
                                         sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or
                                         other intangible assets, except in the ordinary course of business in connection with
                                         the sale of the Company’s products and services;

 

		4.7.8	any
                                         mortgage, pledge, transfer of a security interest in, or lien, created by the Company,
                                         with respect to any of its properties or assets,

 

		4.7.9	any
                                         loans or guarantees made by the Company to or for the benefit of its employees, officers
                                         or directors, or any members of their immediate families, other than reimbursement of
                                         expenses for travel advances and other advances made in the ordinary course of its business;

 

    	 

    	-22-

    

 

		4.7.10	any
                                         declaration, setting aside or payment or other distribution in respect of any of the
                                         Company’s capital shares, or any direct or indirect redemption, purchase or other
                                         acquisition of any of such shares by the Company;

 

		4.7.11	any
                                         transaction of the Company with a director or shareholder of the Company or any of their
                                         Affiliates;

 

		4.7.12	any
                                         material change in the accounting methods or accounting principles or practices employed
                                         by the Company;

 

		4.7.13	any
                                         other event or condition of any character, that would materially and adversely affect
                                         the assets, properties, condition (financial or otherwise), operating results or business
                                         of the Company, as such business is presently conducted; or

 

		4.7.14	any
                                         commitments by the Company to make any capital expenditures and which involve payments
                                         after the Closing Date by the Company other than in the ordinary course of business;

 

		4.7.15	any
                                         material change in practices for the collection of accounts receivable (including any
                                         acceleration of collections) or the payment of suppliers (including any deferral of payments);
                                         or the purchase of raw materials and other inventory;

 

		4.7.16	any
                                         change in the relationship with any customer or supplier that would have a on the Company,
                                         its business or its financial condition;

 

		4.7.17	any
                                         agreement by the Company to do any of the actions described in Sections ‎4.7.1 –
                                         4.7.16.

 

4.7A.
No later than 90 days following the Closing, the Company shall prepare and provide the Purchaser with a reviewed but unaudited
balance sheet as of the Closing Date (the “Reviewed Balance Sheet”). In the event that such Reviewed Balance
Sheet shall indicate a shortage of more than 10% in the Minimum Shareholder Equity as stated in section 4.6.A.(A) above, the Purchaser
shall refund the Company the balance of the shortage which exceeds 10% within 30 days thereafter.

 

4.7B.
Following the signature date, the Seller shall allow and reasonably assist the Purchaser and an auditor on their behalf, to adjust
the Company’s financial statements to the US GAAP, it being understood that all costs and expenses associated therewith
shall be solely borne by the Purchaser. For the avoidance of doubt, all representations and warranties set forth in this Agreement
(including, without limitation, the Minimum Shareholder Equity) are not based on US GAAP and any adjustment mechanisms set forth
in this Agreement (including as set forth in Sections 3.3.5.4, 3.8 and 4.7A above) shall not be affected due to the Company’s
eventual transition to US GAAP.

 

    	 

    	-23-

    

 

	 	4.8.	Authorization.
                                         All corporate action on the part of the Company, its shareholders and directors necessary
                                         for the authorization, execution, delivery, and performance of all of the Company’s
                                         and Seller’ obligations under the Transaction Documents and for the authorization
                                         of the transfer of Company Shares to the Purchaser pursuant to the term of this Agreement
                                         has been taken. The Transaction Documents, when executed and delivered by or on behalf
                                         of the Company and the Seller shall be duly and validly authorized, executed and delivered
                                         by the Company and the Seller and assuming the due authorization, execution and delivery
                                         by the other parties thereto, shall constitute the valid and legally binding obligations
                                         of the Company and the Seller, legally enforceable against the Company and the Seller
                                         in accordance with their respective terms. No consent, approval, order, license, permit,
                                         action by, or authorization of or designation, declaration, or filing with any governmental
                                         authority or any other third party on the part of the Company or the Seller is required
                                         that has not been, or will not have been, obtained by the Company or the Seller prior
                                         to the Closing in connection with the valid execution, delivery and performance of the
                                         Transaction Documents or the transfer of Company Shares hereunder (other than filings
                                         with the Israeli Register of Companies with respect to the transfer of Company Shares
                                         to the Purchaser).

 

		4.9.	Capacity
                                         of Seller. Seller has not, at any time: (a) made a general assignment for the
                                         benefit of creditors; (b) filed, or had filed against it, any bankruptcy petition or
                                         similar filing; (c) suffered the attachment or other judicial seizure of all or a substantially
                                         all of such Seller’s assets; (d) admitted in writing such Seller’s inability
                                         to pay such Seller’s debts as they become due; or (e) taken or been the subject
                                         of any action that will have an adverse effect on such Seller’s ability to comply
                                         with or perform any of such Seller’s covenants or obligations under any of the
                                         Transaction Documents. Seller is not subject to any Applicable Law that may have an adverse
                                         effect its ability to comply with or perform any of its covenants or obligations under
                                         any of the Transaction Documents.

 

		4.10.	Compliance
                                         with Other Instruments. The Company is not in default: (a) under the Articles
                                         or other formative document of the Company; or (b) under any note, indenture, mortgage,
                                         lease, agreement, contract, purchase order or other instrument, document, Bank’s
                                         covenants, or agreement to which the Company is a party or by which it or any of its
                                         property is bound, ; or (c) with respect to any Law, statute, ordinance, regulation,
                                         order, writ, injunction, decree, or judgment of any court or any governmental department,
                                         commission, board, bureau, agency or instrumentality, including as to customs matters,
                                         domestic or foreign. No third party is in default under any agreement, contract or other
                                         instrument, document or agreement to which the Company is a party or by which it or any
                                         of its property is bound.

 

		4.11.	No
                                         Breach. Neither the execution and delivery of the Transaction Documents nor compliance
                                         by the Company or the Seller with the terms and provisions hereof or thereof, will conflict
                                         with, or result in a breach or violation of, any of the terms, conditions and provisions
                                         of: (a) the Articles or other formative document of the Company; (b) any applicable judgment,
                                         order, injunction, decree, or ruling of any court or governmental authority, domestic
                                         or foreign; (c) any agreement, contract, lease, license or commitment to which the Company
                                         is a party or to which it is subject or (d) Applicable Law. Such execution, delivery
                                         and compliance will not (X) 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 paragraph, or to any of the properties of the Company; or (Y) otherwise
                                         require the consent or approval of any Person, which consent or approval has not heretofore
                                         been obtained.

 

    	 

    	-24-

    

 

		4.12.	Records.
                                         The minute books of the Company contain accurate and complete copies of the minutes of
                                         every meeting of the Company’s shareholders and the Board (and any committee thereof)
                                         in past five years. No resolutions have been passed, enacted, consented to or adopted
                                         by the directors (or any committee thereof) or shareholders of the Company, except for
                                         those contained in such minute books. The corporate records of the Company have been
                                         maintained in accordance with all applicable statutory requirements and are complete
                                         and accurate in all respects.

 

		4.13.	Assets.

 

		4.13.1.	Except
                                         as set forth in Schedule 4.13.1, all material assets used by the Company
                                         for the conduct of the Business, are owned or validly leased by the Company, and none
                                         of such material assets is subject to any Liens.

 

		4.13.2.	Schedule
                                         4.13.2 hereto contains true, correct and complete lists of all material fixed
                                         assets owned by the Company and recorded on its asset registers as of the dates specified
                                         therein.

 

		4.13.3.	The
                                         assets held by the Company constitute all the assets, rights and properties Seller used
                                         or held for use in the conduct of the Business. All of the such assets are: (i) in normal
                                         operating condition and repair, ordinary wear and tear excepted; (ii) not in need of
                                         maintenance, repair or replacement in the 12-month period following the Closing Date,
                                         except for ordinary routine maintenance or repairs that are not material in nature or
                                         cost, and that are consistent with past practice; and (iii) adequate and sufficient for
                                         the continuing conduct of the Business.

 

		4.14.	Real
                                         Property 

 

		4.14.1.	The
                                         Company does not own any real property.

 

		4.14.2.	Schedule
                                         4.14.2 attached hereto contains a true, correct and complete list of all real
                                         property leased or otherwise occupied by the Company (the “Leased Real Property”),
                                         including all such Leased Real Property main terms. The Purchaser hereby agrees and acknowledges
                                         that it received copies of Leased Property agreements between the Company and the Seller
                                         (or any Affiliate thereof), as detailed in Schedule 4.14.2 attached hereto.

 

		4.14.3.	The
                                         Company has the valid right to occupy and use the Leased Real Property. No consent, approval,
                                         authorization, waiver or agreement of any Person is required to be obtained in connection
                                         with the transfer or assignment of any rights over the Leased Real Property pursuant
                                         to the transactions contemplated by this Agreement.

 

		4.14.4.	The
                                         Leased Real Property is in standard working condition for its intended use, and is maintained
                                         in accordance with standard practices in similar types of businesses, subject to ordinary
                                         wear and tear and taking into account the age of such Real Property and the past activities
                                         conducted therein.

 

		4.14.5.	The
                                         Leased Real Property is suitable for its intended use.

 

    	 

    	-25-

    

 

		4.14.6.	The
                                         Company has not issued and/or has not received any notice of termination or cancellation
                                         of any lease agreement on the Leased Real Property. There are no obligations of the Company,
                                         pursuant to the applicable lease agreements or otherwise, that arise as a result of,
                                         or in connection with, the termination or expiry of any lease agreement on the Leased
                                         Real Property. The party has not issued a termination notice as to any of the leased
                                         properties.

 

		4.15.	Intellectual
                                         Property

 

		4.15.1.	Schedule
                                         4.15.1 attached hereto sets forth all Company Intellectual Property that is subject
                                         to any issuance, registration, application or other filing by, to or with any governmental
                                         authority or authorized private registrar in any jurisdiction (collectively, “Intellectual
                                         Property Registrations”), including registered trademarks, domain names, formulas,
                                         recipes and copyrights, issued and reissued patents and pending applications for any
                                         of the foregoing. The Company owns or possesses or can acquire on commercially reasonable
                                         terms sufficient legal rights to all Intellectual Property used and necessary for conducting
                                         the Business, without any known conflict with, or infringement of, the rights of others.
                                         Without limiting the generality of the foregoing, the Company has entered into binding,
                                         written agreements with every current and former employee of the Company, and with every
                                         current, former independent contractor, whereby such employees and independent contractors:
                                         (a) assign to the Company any ownership interest and right they may have in the Company
                                         Intellectual Property; and (b) acknowledge the Company’s ownership of all Company
                                         Intellectual Property. Seller has provided Purchaser with true and complete copies of
                                         all such agreements. The Company is in compliance in all material respects with all legal
                                         requirements applicable to the Company Intellectual Property and the Company’s
                                         ownership and use thereof.

 

		4.15.2.	Schedule
                                         4.15.2 attached hereto sets forth all licenses, sublicenses and other agreements
                                         whereby the Company is granted rights, interests and authority, whether on an exclusive
                                         or non-exclusive basis, with respect to any Licensed Intellectual Property that is used
                                         in or necessary for the Business. Seller have provided Purchaser with true and complete
                                         copies of all such agreements. All such agreements are valid, binding and enforceable
                                         between the Company and the other parties thereto, and the Company and such other parties
                                         are, to the Company’s Knowledge, in full compliance with the terms and conditions
                                         of such agreements. The Company Intellectual Property and Licensed Intellectual Property
                                         as currently or formerly owned, licensed or used by the Company or currently proposed
                                         to be used, and the Company’s conduct of its Business as currently and formerly
                                         conducted and currently proposed to be conducted, to the Company’s Knowledge, have
                                         not, do not and will not infringe, violate or misappropriate the Intellectual Property
                                         of any Person. None of the Seller and the Company has received any communication, and
                                         no Action has been instituted, settled or, to Seller’s Knowledge, threatened that
                                         alleges any such infringement, violation or misappropriation, and no Company Intellectual
                                         Property is subject to any outstanding governmental order.

 

    	 

    	-26-

    

 

		4.15.3.	The
                                         Company has not granted any rights or authority to any Person with respect to any Company
                                         Intellectual Property or Licensed Intellectual Property that are material to the business
                                         of the Company. The computer software and systems (including hardware, firmware, operating
                                         system software, utilities and applications software) used by the Company (collectively,
                                         the “Business Systems”) are sufficient for the purposes for which
                                         they are used in the Business and have a valid license for a period not shorter than
                                         12 months from the Closing Date. There have been no: (a) failures of computer services
                                         or other information technology assets that have caused disruptions that are material
                                         to the business of the Company; or (b) security breaches relating to, violations of any
                                         security policy regarding or any unauthorized access of any data used in the business
                                         of the Company. The Business Systems and any software included in the Company Intellectual
                                         Property do not contain any computer code or any other mechanisms which may: (x) disrupt,
                                         disable, erase or harm in any way the Business Systems or such software’s operation,
                                         or cause the Business Systems or the software to damage or corrupt any data, hardware,
                                         storage media, programs, equipment or communications; (y) permit any third party to access
                                         the Business Systems or such software without authorization; or (z) interfere in any
                                         material respect with the Business Systems. No source code for any software included
                                         in the Company Intellectual Property has been delivered, licensed or made available to
                                         any escrow agent or other third party, and the Company does not have any current duty
                                         or obligation to deliver, license or make available such source code to any escrow agent
                                         or other third party.

 

		4.16.	Taxes.
                                         The Company has accurately prepared and timely filed all tax (including income tax, corporate
                                         tax, indirect taxes and VAT or any withholding taxes with respect to payments made by
                                         the Company – “Taxes”) returns and reports required to be filed
                                         by it under Applicable Law. All such Tax returns and reports of the Company are true
                                         and correct in all material respects and the Company has paid on time all Taxes due.
                                         No deficiency assessment or proposed adjustment of Taxes of the Company is pending, and
                                         Seller has no Knowledge, of any pending liability for any Tax to be imposed on the Company.
                                         The Company has not made any elections under Applicable Laws or regulations (other than
                                         elections that related solely to methods of accounting, depreciation or amortization)
                                         that would have a Material Adverse Effect on the Company, its financial condition, its
                                         business as presently conducted or any of its material properties or assets. The Company
                                         is not currently liable for any Tax that became due prior to or at the Closing other
                                         than Tax liabilities arising in the ordinary course of business. No rulings or similar
                                         agreements relating to Taxes have been entered into with or issued by any governmental
                                         entity with or specifically in respect of the Company since its inception. The Company
                                         has obtained final income tax assessment (“shuma”) 2014.

 

    	 

    	-27-

    

 

		4.17.	Litigation.
                                         No material action, proceeding or governmental inquiry or investigation which poses a
                                         potential financial liability of more than $50,000 is pending or, to the Seller’
                                         Knowledge, threatened against the Company and/or the Seller (and their Affiliates arising
                                         out of their relationship with the Company) or any of its officers, directors, or employees
                                         (in their capacity as such), or against any of the Company’s properties, or with
                                         regard to the Company’s business, before any court, arbitration board or tribunal
                                         or administrative or other governmental agency, nor, to the Seller’ Knowledge,
                                         is there any basis for the foregoing except as set forth in Schedule 4.17
                                         hereto. The Company is not a party to or subject to the provisions of any order, writ,
                                         injunction, judgment or decree of any court or governmental agency or instrumentality
                                         (other than orders of governmental agencies or instrumentalities with general applicability).
                                         There is no action, suit, proceeding or investigation by the Company currently pending
                                         or that the Company intends to initiate.

 

		4.18.	Interested
                                         Party Transactions. No officer, director or shareholder of the Company, or, to
                                         the Company’s Knowledge any Affiliate of any such person or entity or the Company,
                                         has or has had, either directly or indirectly: (a) an interest in any person or entity
                                         which: (i) furnishes or sells services or products which are furnished or sold by the
                                         Company or similar services or products which are furnished or sold by the company; or
                                         (ii) purchases from or sells or furnishes to the Company any goods or services; or (b)
                                         a beneficial interest in any contract or agreement to which the Company is a party. Except
                                         as set forth in Schedule 4.18 attached hereto, there are no existing arrangements
                                         or to the Company’s Knowledge, proposed transactions between the Company and any
                                         Seller, officer, director, or holder of the share capital of the Company, or, to the
                                         Company’s Knowledge, any Affiliate or associate of any such person, and no employee,
                                         shareholder, officer, or director of the Company is indebted to the Company, nor is the
                                         Company indebted (or committed to make loans or extend or guarantee credit) to any of
                                         them.

 

    	 

    	-28-

    

 

		4.19.	Employee
                                         Matters.

 

		4.19.1.	Employee
                                         and Labor Matters.

 

		4.19.1.1.	True,
                                         correct and complete copies of all employment and consulting contracts, deferred compensation
                                         agreements, bonus, incentive, commission, premium, savings (including education fund),
                                         performance, profit-sharing, deferred compensation, retention, change in control, pension
                                         or severance plans, and other like benefits (whether on retirement, death or termination
                                         or during periods of sickness or disability), currently in force and effect for the benefit
                                         of any current or former officer, director, employee or consultant of the Company (or
                                         for the benefit of the dependents of any such person), as well as a description of any
                                         policy, practice, or custom currently in force and effect, have been made available to
                                         the Purchaser. All employees contractors to whom trade secrets have been disclosed or
                                         which have been exposed to the Company’s Intellectual Property have signed (A)
                                         either an offer letter, employment agreement or a consulting agreement with the Company
                                         and (B) a confidentiality, inventions assignment agreement, or other such agreement prohibiting
                                         disclosure of Company confidential information and assigning all intellectual property
                                         to the Company. All such agreements are currently valid and enforceable in all respects
                                         by the Company and the Seller and the Company are not aware of any violation. Schedule
                                         4.19.1.1 lists the names, positions, title, commencement date of engagement,
                                         rates of compensation (including monthly base salary or hourly rate and global overtime
                                         payment to the extent they are not exempt from overtime under applicable law) and fringe
                                         benefits (including any kind of commissions, bonus or any other incentive payable during
                                         the last two years, vacation entitlement and accrual, sick pay entitlement and accrual,
                                         recreation entitlement and accrual, travel pay and any kind of reimbursement, their respective
                                         contribution rates and the salary basis for such contributions, whether such employee,
                                         is subject to Section 14 Arrangement under the Israeli Severance Pay Law - 1963 (“Section
                                         14 Arrangement”) (and, to the extent such employee is subject to the Section
                                         14 Arrangement, an indication of whether such arrangement has been applied to such person
                                         from the commencement date of their employment and on the basis of their entire salary)
                                         and notice period entitlement of all officers, directors, employees and key consultants
                                         of the Company, as of the date hereof.

 

		4.19.1.2.	There
                                         is not, and since the Company’s incorporation there has not been, any labor strike,
                                         dispute, work stoppage, slowdown or lockout pending, or, to the Knowledge of the Company
                                         or the Seller, threatened against the Company by any group of employees or union. No
                                         union organizational campaign or petition for certification is in progress with respect
                                         to the Company employee and no question concerning representation exists regarding such
                                         Company employee and to the Knowledge of the Company and Seller there are no labor organizations
                                         purporting to represent or seeking to represent any Company employees. The Company has
                                         not been engaged in any unfair labor practice, and there is no unfair labor practice
                                         charge or complaint against the Company pending, or threatened. There are no pending,
                                         or, to the Knowledge of the Company and Seller, threatened union grievances against the
                                         Company. There are no pending, or, to the Knowledge of the Company and Seller, threatened
                                         charges against the Company or any current or former Company employee (based on conduct
                                         relating to their employment by the Company) before any Governmental entity responsible
                                         for the prevention of unlawful employment practices. Since the Company’s formation,
                                         the Company has not received notice of the intent of any Governmental entity responsible
                                         for the enforcement of labor or employment laws to conduct an investigation of the Company
                                         and, to the Knowledge of the Company and Seller, no such investigation is in progress.

 

    	 

    	-29-

    

 

		4.19.1.3.	To
                                         the Company’s Knowledge, The Company has complied in all material respects with
                                         all applicable laws (in Section 4.20 -including law, statute, constitution, legislation,
                                         principle of common law, case law, resolution, ordinance, code, edict, decree, rule,
                                         directive, license, permit, regulation, ruling or requirement), policies, procedures
                                         and agreements relating to employment, enforcement of labor laws, discrimination, harassment,
                                         worker misclassification, engagement (including with cleaning, security and catering
                                         companies), termination of employment and engagement and governing payment of minimum
                                         wages, pay slips, hours of work and rest, overtime rates, the withholding and payment
                                         of Taxes from compensation of employees and the payment of premiums and/or benefits under
                                         applicable worker compensation laws. To the Company’s Knowledge, the Company has
                                         no unsatisfied obligations of any nature due to any of its former employees or contractors.
                                         All (i) persons classified by the Company as consultants or contractors thereof and (ii)
                                         employees leased from another employer are correctly classified as such and not as employees
                                         of the Company for any purpose. Other than their base salaries, the employees are not
                                         entitled to any payment or benefit that may be reclassified as part of their determining
                                         salary for any purpose, including for calculating any social contributions.

 

		4.19.1.4.	The
                                         Company has not been a party to or bound by any collective bargaining or other similar
                                         labor contracts, agreements or arrangements, with respect to any Company employee, no
                                         collective bargaining agreement is being negotiated by the Company and the Company has
                                         no duty to bargain with any labor organization. The Company has not been subject to,
                                         and no Company employee benefits from, any extension order (tzavei harchava) or any contract
                                         or arrangement with respect to employment or termination thereof, other than such extension
                                         orders applicable to all employees in Israel. The Company has never been a member of
                                         any employers’ association or organization and has never paid, required to pay
                                         or requested to pay any payment (including professional organizational handling charges)
                                         to any employers’ association or organization.

 

    	 

    	-30-

    

 

		4.19.1.5.	To
                                         the Company’s Knowledge, no employee, contractor or director of the Company is
                                         a party to or bound by any contract, license, covenant or contract of any nature, or
                                         subject to any order of any Governmental entity, that may interfere with the use of such
                                         Person’s efforts to promote the interests of the Company, conflict with the business
                                         of the Company or the other transactions contemplated hereby. No activity of any employee
                                         or contractor of the Company in connection with his employment or engagement with, or
                                         provision of services, to the Company, has caused a violation of any employment or service
                                         contract, confidentiality agreement, non-compete and non-solicit patent disclosure agreement,
                                         or other material contract. To the Company’s Knowledge, neither the execution and
                                         delivery of this Agreement, nor the conduct of the business of the Company by the Company
                                         employee, will conflict with or result in a breach of the terms, conditions or provisions
                                         of, or constitute a default (with or without notice or lapse of time or both) under,
                                         or give rise to a right of, or result in, termination, cancellation or acceleration of
                                         any obligation or to a loss of a material benefit under, or give rise to any increased,
                                         additional, accelerated or guaranteed rights or entitlements under any covenant or instrument
                                         under which any such employees are now obligated.

 

		4.19.1.6.	Except
                                         as indicated on Section Schedule 4.19.1.6, (i) all employees’ employment
                                         can be terminated at any time (subject to the termination notice provisions included
                                         in employment agreements, which, is not longer than 30 days or the applicable law) for
                                         any reason without any amounts being owed to such individual other than with respect
                                         to wages, redemption of vacation days and recuperation payments accrued before the termination,
                                         and the release of pension arrangement (including severance payments) and education funds,
                                         (ii) the Company’s relationships with all individuals who act on their own as contractors
                                         or service providers to the Company, can be terminated at any time (subject to the termination
                                         notice provisions included in any such agreements, which is not longer than 30 days,
                                         or the applicable law) for any reason without any amounts being owed to such individual
                                         other than with respect to compensation or payments accrued before the termination and
                                         with respect to options vested before the termination, and (iii) no employee is on disability
                                         or other leave of absence. The Company has complied, in all material respects, with all
                                         laws governing the employment of personnel, including requirements under the law with
                                         respect to the hiring of foreign employees. Except as set forth in Schedule 4.19.1.6,
                                         the Company has not sponsored any employee for, or otherwise engaged any current employee
                                         working pursuant to, a non-immigrant visa.

 

    	 

    	-31-

    

 

		4.19.1.7.	As
                                         of the date hereof, (i) the Company has not been notified in writing that its Key Employee
                                         intends to, or is considering, terminating such Key Employee’s employment with
                                         the Company, including in connection with or as a result, in part or in whole, of the
                                         transactions contemplated hereby., There are no employment, deferred compensation, severance,
                                         termination, retention, change in control, employee benefit, loan, indemnification, share
                                         repurchase, consulting or similar agreement between the Company and any Company employee,
                                         or any agreement between the Company and any Company employee, the benefits of which
                                         are contingent, or the terms of which are materially altered, upon the occurrence of
                                         a transaction involving the Company of the nature contemplated by this Agreement Except
                                         as set forth in Schedule 4.19.1.7. All amounts that the Company is legally
                                         or contractually required either (x) to deduct from its employees’ salaries or
                                         to transfer to such employees’ pension or provident, life insurance, incapacity
                                         insurance, continuing education fund or other similar funds or (y) to withhold from its
                                         employees’ salaries and benefits and to pay to any governmental authority as required
                                         by the Israeli Income Tax Ordinance [New Version], 1961, as amended and by the Israeli
                                         National Insurance Law or otherwise have, in each case, been duly deducted, transferred,
                                         withheld and paid, and the Company does not have any overdue obligation to make any such
                                         deduction, transfer, withholding or payment.

 

		4.20.	Brokers.
                                         Except as set forth in Schedule 4.20
                                         attached hereto, no agent, broker, investment banker, person or firm acting in a similar
                                         capacity 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 commission or similar fee, directly
                                         or indirectly, on account of any action taken by the Company in connection with any of
                                         the Transactions contemplated under this Agreement.

 

    	 

    	-32-

    

 

		4.21.	Grants,
                                         Incentives and Subsidies. Except as set forth in Schedule 4.21,
                                         there are no pending nor outstanding grants, incentives and subsidies from the Government
                                         of the State of Israel or any agency thereof, or from any governmental or administrative
                                         agency of any other country, granted to the Company (other than any governmental grants,
                                         incentives and subsidies related to COVID-19). 

 

		4.22.	Environmental
                                         Matters.

 

		4.22.1.	The
                                         Company: (a) except in compliance with Applicable Law and except as set forth in Schedule
                                         4.22.1, has not engaged in or permitted any operation or activity at or upon,
                                         or any use or occupancy of, any real property for the purposes of or in any way involving,
                                         the handling, use, treatment, disposal, dumping or storage of any Hazardous Materials
                                         on, under, in or about any real property, or transported any Hazardous Materials to,
                                         from or across any real property; (b) is, and at all times has been, in compliance with
                                         any and all applicable Environmental, Health and Safety Laws; (c)has received and is,
                                         and at all times has been, in compliance with all Permits required under any applicable
                                         Environmental, Health and Safety Law for the conduct of its businesses; and (d) has not
                                         received written notice of any actual or potential claim, proceeding or liability involving
                                         the handling, use, storage, transportation, disposal, release or threat of release of
                                         Hazardous Materials.

 

		4.22.2.	The
                                         Seller has made available to Purchaser copies of all material documents, records and
                                         information available to the Company concerning any environmental, health or safety matter
                                         relevant to the Company, whether generated by the Company, or others, including environmental
                                         audits, environmental risk assessments, site assessments, documentation regarding off-site
                                         disposal of Hazardous Materials, spill control plans, and reports, correspondence, permits
                                         related to environmental, health or safety matters.

 

		4.23.	Products.
                                         To the Company’s knowledge, Each product sold by the Company (“Product”)
                                         has conformed in all material respect with all: (i) Laws, standards and requirements
                                         applicable to such Product; (ii) applicable contractual commitments; and (iii)
                                         express warranties, including any warranties relating to any product classifications.

 

		4.24.	Customers.
                                         Set forth on Schedule 4.24 is a list of the 10 largest customers of the
                                         Company for each of the two most recent fiscal years and set forth opposite the name
                                         of each such customer on Schedule 4.24 is the percentage of consolidated
                                         net sales attributable to such customer. Since January 1, 2020, no such customer listed
                                         on Schedule 4.24 has canceled or otherwise terminated or has threatened
                                         to cancel or otherwise terminate, its relationship with the Company or indicated that
                                         it shall stop, or materially decrease the rate of, buying materials, was dissatisfied
                                         with the products or services provided by the Company.

 

    	 

    	-33-

    

 

		4.25.	Insurance
                                         Schedule 4.25 hereto sets forth: (i) a true and complete list of each insurance
                                         policy which covers the Company or the Business, facilities, assets, directors, officers
                                         or employees; and (ii) a list of all pending claims and the claims history for the Company
                                         in the past five years (including with respect to insurance obtained but not currently
                                         maintained). To the Company’s Knowledge, there are no pending claims under any
                                         such policy as to which coverage has been questioned, denied or disputed by the insurer
                                         or in respect of which the insurer has reserved its rights. To the Company’s Knowledge,
                                         all such policies are in full force and effect, are enforceable in accordance with their
                                         terms and will continue in full force and effect through and immediately after the Closing,
                                         and are concerning such casualties as would be reasonable and customary for companies
                                         like the Company. All premiums due under such policies have been paid in full. The Company
                                         has not received a notice of cancellation of any such policy or of any material changes
                                         that are required in the conduct of the insured’s business as a condition to the
                                         continuation of coverage under, or renewal of, any such policy. To the Company’s
                                         Knowledge, there is no existing default or event which, with or without the giving of
                                         notice or the lapse of time or both, would constitute a default under any such policy
                                         or entitle any insurer to terminate or cancel any such policy.

 

		4.26.	Full
                                         Disclosure. Neither this Agreement nor any of the
                                         Transaction Documents contains any untrue statement of a material fact or, omits to state
                                         a material fact necessary to make the statements herein or therein not misleading.

 

	5.	REPRESENTATIONS
                                         AND WARRANTIES OF THE PURCHASER

 

The
Purchaser hereby represents and warrants to the Seller with respect to itself as follows, and acknowledges that the Seller are
entering into this Agreement in reliance thereon:

 

		5.1.	Organizational
                                         Status. The Purchaser is a company, duly organized and validly existing and in
                                         good standing under the laws of the State of Israel.

 

		5.2.	Enforceability.
                                         The Purchaser has full power and authority to enter into the Transaction Documents
                                         This Agreement and the other Transaction Documents, when executed and delivered by the
                                         Purchaser and assuming the due authorization, execution and delivery by the other parties
                                         thereto, shall constitute the valid and legally binding and enforceable obligations of
                                         Purchaser.

 

		5.3.	Finder’s
                                         Fees. No Person retained by the Purchaser is or will be entitled to any commission
                                         or finder’s or similar fee for which the Seller or the Company will be liable in
                                         connection with the Transaction or the Transaction Documents.

 

		5.4.	Due
                                         Diligence. The Purchaser acknowledges and agrees that it has had the opportunity
                                         to conduct extensive due diligence relating to the Business, management, financial affairs
                                         and the terms and conditions of the Company Shares. The Purchaser has been afforded the
                                         opportunity to ask questions of and receive answers from duly authorized officers or
                                         other representatives of the Company concerning the Company’s business, assets
                                         and financial position and had the opportunity to review and inspect all of the data
                                         and information provided to it by the Company in connection with the execution of this
                                         Agreement. Nothing in this Section 5.4 shall derogate from the liability of the Seller
                                         under Section 4 of this Agreement.

 

    	 

    	-34-

    

 

		5.5.	Authorization.
                                         The execution, delivery and performance of the obligations
                                         of the Purchaser hereunder and under the other Transaction Documents have been duly authorized
                                         by all necessary corporate action, and the fulfillment of and compliance with the respective
                                         terms and provisions hereof and thereof, and the consummation by the Purchaser of this
                                         Agreement and the Transaction Documents do not and will not require any additional consent
                                         or approval on behalf of the Purchaser or from any court or governmental agency.

 

		5.6.	No
                                         Public Market. The Purchaser understands that no public market now exists for
                                         the Company Shares, and that the Company has made no assurances that a public market
                                         will ever exist for the Company Shares.

 

	6.	EFFECTIVENESS;
                                         SURVIVAL; INDEMNIFICATION

 

		6.1.	General.
                                         The Purchaser has the right to rely solely and fully upon all representations
                                         and warranties of the Seller specifically contained in this Agreement or any schedule
                                         hereto or thereto.

 

		6.2.	Indemnification.

 

		6.2.1.	Subject
                                         to the liability and other limitations set forth in this Section ‎6, in the event
                                         of any breach of any covenant or, agreement made by the Seller under this Agreement and
                                         in any event of any failure of a representation or warranty of the Seller under this
                                         Agreement to be true and correct as of the Closing (or, if such representations and warranties
                                         explicitly speak as of other specified date, as of such other specified date), the Seller
                                         shall indemnify the Purchaser and its Affiliates (including but not limited to, OmniQ),
                                         and each of their respective officers, directors, shareholders and representatives (each,
                                         a “Purchaser Indemnified Party”) and hold each such Purchaser Indemnified
                                         Party harmless of any Loss sustained or incurred by any of the Purchaser Indemnified
                                         Party as a result of or in connection with the following:

 

		6.2.1.1.	breach
                                         of any representation or warranty made by the Seller in this Agreement or in any Transaction
                                         Documents to be true and correct as of the Closing Date, except in the case of representations
                                         and warranties which specifically relate to an earlier date, which representations and
                                         warranties shall be true and correct as of such date in all material respects; ;

 

		6.2.1.2.	any
                                         breach, default or violation of any covenant or obligation of, or agreement by, the Seller
                                         contained in this Agreement or in any other Transaction Documents;

 

		6.3.	Limits
                                         on Indemnification.

 

		6.3.1.	Notwithstanding
                                         anything to the contrary contained in this Agreement, other than in the case of fraud,
                                         intentional misrepresentation or willful misconduct, the aggregate liability of the Seller
                                         with respect to Section 6.2.1 above shall be limited to 10% the amount of the Consideration
                                         actually received by the Seller, except with respect to representations provided in Sections
                                         4.2-4.4 (“Fundamental Representations”), which shall be limited to
                                         the full (100%) amount of the Consideration actually received by the Seller.

 

    	 

    	-35-

    

 

		6.3.2.	No
                                         claims shall be asserted against the Seller, and the Seller shall not be liable for any
                                         claim for indemnification, unless and until the amount of Losses claimed from the Seller
                                         equals or exceeds $50,000 individually or $ 100,000 in the aggregate.

 

		6.3.3.	Other
                                         than in respect of intentional misrepresentation or fraud in no event shall the Seller
                                         be liable to indemnify any Indemnified Party for any indirect, consequential, special
                                         or punitive damages.

 

		6.3.4.	Except
                                         with respect to the Fundamental Representations (and other than in respect of intentional
                                         misrepresentation or fraud) no claim or claims for indemnification may be made against
                                         the Seller for any Losses following the lapse of eighteen (18) months following the Closing
                                         Date.

 

		6.3.5.	Any
                                         Losses as to which indemnification is provided for in Section 6 shall be determined net
                                         and after deduction of: (i) any cash recovery actually received by a Purchaser Indemnified
                                         Party and/or the Company and/or any Affiliate thereof with respect to insurance, tax,
                                         counterclaim or other similar payment or returns with respect to the matter for which
                                         indemnification is sought; (ii) any Losses already accounted for in the Company’s
                                         financial statements (including any reserves, savings and depreciation (‘hafrashot’)
                                         reflected in the Company’s financial statements) (iii) any other indemnity or contribution
                                         or financial benefits actually recovered by such Purchaser Indemnified Party and/or the
                                         Company and/or any Affiliate thereof with respect to the matter for which indemnification
                                         is sought. The Purchaser Indemnified Parties shall not be entitled to recover Losses
                                         more than once in respect of any single set of circumstances.

 

		6.4.	Third
                                         Party Claims 

 

Promptly
after the assertion of any claim by a third party or occurrence of any event which may give rise to a claim for indemnification
from the Seller under this Section 6, a Purchaser Indemnified Party shall notify the Seller in writing of such claim. The Seller
shall have the right to assume the control and defense of any such action (including, but without limitation, tax audits), provided
that the Purchaser Indemnified Party may participate in the defense of such action subject to the Seller’s reasonable direction
and at Purchaser Indemnified Party’s sole cost and expense. The party contesting any such claim shall be furnished all reasonable
assistance in connection therewith by the other party and be given full access to all information relevant thereto. In no event
shall any such claim be settled without the Seller’s consent.

 

		6.5.	Sole
                                         and Exclusive Remedy

 

The
indemnification provided by the Seller pursuant to this Section 6 shall be the sole and exclusive remedy available to the Purchaser
and any other Indemnified Party against the Seller in connection with any Losses made under this Agreement.

 

    	 

    	-36-

    

 

	7.	ADDITIONAL
                                         AGREEMENTS

 

		7.1.	Conduct
                                         of the Business

 

From
the date of this Agreement until the Closing Date (or the termination of this Agreement, whichever occurs earlier), except as
(i) otherwise contemplated in this Agreement, (ii) required by applicable Law or (iii) consented to by Purchaser in writing, the
Seller undertake to procure, that the Company and any subsidiary thereof will (A) operate their respective businesses in the ordinary
course of business and (B) preserve in all material respects their present business, properties and their tangible and intangible
assets, other than any dispositions in the ordinary course of business. It being understood that the Company shall not do any
of the actions or transaction provided in Section ‎4.7 to ‎4.7.17.

 

		7.2.	Non-compete:
                                         Non-solicitation.

 

In
further consideration for and subject to the actual payment of the Closing Consideration in full and in order to protect the value
of the Company (including, without limitation, the goodwill inherent in such Company as of the Closing), upon the Closing, the
Seller agrees as follows (without derogating from any other obligation undertaken by the Seller, including without limitation,
pursuant to any employment or consulting agreement with the Company or the Purchaser following the Closing, towards the Purchaser
or the Company):

 

		7.2.1.	The
                                         Seller acknowledges that it has and may further become familiar with confidential or
                                         proprietary information concerning the Company. Therefore, the Seller (and with respect
                                         to a Seller who is a corporate body, its shareholders, directors and officers) agrees
                                         that during the period beginning on the Closing Date and ending on the later of (a) 4-year
                                         anniversary of the Closing Date or (b) 12 months from the termination of the Seller’s
                                         engagement with the Company (the “Non-Compete Period”), the Seller
                                         shall not, directly or indirectly, inter alia, through its Affiliates, either
                                         for such Seller or for any other Person, own, manage, control, participate in, consult
                                         with, render services for, permit his, her or its name to be used or in any other manner
                                         engage in any business or enterprise which is engaged in or otherwise competes with or
                                         is intended to compete with the Business or that otherwise offers, develops or markets
                                         technologies or products that are substantially similar to or substitute to, in whole
                                         or in part, any of the current or future technologies or products of the Company. For
                                         purposes of this Agreement, the term “participate” includes any direct or
                                         indirect interest in any Person, whether as an officer, director, manager, employee,
                                         partner, sole proprietor, agent, representative, independent contractor, franchisor,
                                         franchisee, creditor, or owner; provided however that the foregoing activities shall
                                         not include passive ownership of less than 1% of the share capital of a publicly held
                                         corporation whose shares are traded on a securities exchange or in the over the counter
                                         market.

 

		7.2.2.	During
                                         the Non-Compete Period, the Seller shall not directly or indirectly through another entity:
                                         (a) encourage, induce, solicit or attempt to encourage, induce or solicit any officer,
                                         director, manager, or employee of the Company, the Purchaser, OmniQ and their respective
                                         Affiliates (collectively, the “Company Group”) to leave the employment
                                         of the Company Group; (b) hire or employ any Person who was an officer, director, manager,
                                         or employee of the Company Group at any time during the 12 month period immediately prior
                                         to the Closing Date; (c) call on, solicit, or service any customer, supplier, distributor,
                                         reseller, licensee, licensor or other business relation of the Company Group with respect
                                         to products or services that have been provided by the Company Group, are currently being
                                         provided by the Company Group or which the Company Group is currently in the process
                                         of developing or negotiating; or (d) encourage, induce or solicit, or attempt to encourage,
                                         induce or solicit, any customer, supplier, distributor, reseller, licensee, licensor
                                         or other business relation of the Company Group to cease doing business with the Company
                                         Group or with the Purchaser.

 

    	 

    	-37-

    

 

		7.2.3.	The
                                         parties acknowledge and represent that: (a) sufficient consideration has been given by
                                         each party to this Agreement to the other as it relates hereto; (b) such party has consulted
                                         with independent legal counsel regarding his rights and obligations under this Section
                                         ‎7.1; (c) The parties fully understand the terms and conditions contained herein;
                                         (d) the scope of the business of the Company and its Subsidiaries; (e) the restrictions
                                         and agreements in this Section 7.2 are reasonable in all respects and necessary for the
                                         protection of the Company and the other members of the Company Group and its confidential
                                         information and goodwill and that, without such protection, the Company Group customer
                                         and client relationship and competitive advantage may be materially adversely affected;
                                         and (f) the agreements in this Section 7.2 are an essential inducement to enter into
                                         this Agreement and they are in addition to, rather than in lieu of, any similar or related
                                         covenants to which either party is bound.

 

		7.2.4.	If
                                         at any time a court or arbitrator’s award holds that the restrictions in this Section
                                         7.1 are unreasonable under circumstances then existing, the parties hereto agree that
                                         the maximum period, scope or geographical area reasonable under such circumstances shall
                                         be substituted for the stated period, scope or area. The parties hereto agree that any
                                         breach of the provisions contained in this Section 7.1 may result in serious and irreparable
                                         injury and therefore money damages would not be an adequate remedy for any such breach.
                                         Therefore, in the event of a breach or threatened breach of any provisions of this Section
                                         7.1 that is continuing, the Purchaser, the Company, their respective successors and assigns
                                         and any third-party beneficiary to this Agreement, in addition to other rights and remedies
                                         existing in their favor, shall be entitled to specific performance or injunctive or other
                                         relief in order to enforce, or prevent any violations of, the provisions hereof.

 

		7.3.	Confidentiality;
                                         Announcements. Each of the Parties hereto shall treat (and shall direct its employees,
                                         counsels, auditors and representatives to treat) the contents of this Agreement as confidential
                                         and shall refrain from disclosing this Agreement in whole or in part, to any Person without
                                         the consent of the other Party (which consent shall not be unreasonably withheld), except
                                         to the extent necessary for enforcement hereof or as otherwise required (in the reasonable
                                         opinion of counsel) by Law or by any governmental authority; provided however, that Purchaser
                                         and its Affiliates may, without the consent of Seller: (a) make any public disclosure
                                         it in good faith believes to be required by Applicable Law or the regulations of the
                                         US Securities Act, SEC rules or any recognized stock exchange relating to any listing
                                         particulars, prospectus or circular to be published by the Purchaser or its Affiliates,
                                         or any announcement required to be made in relation to this Agreement or any matters
                                         contemplated hereby (in which case the Seller shall, if requested by Purchaser, provide
                                         the Purchaser with whatever information and reports concerning the Company may be required
                                         from the Purchaser in compliance of any such Law or regulation; and (b) disclose and
                                         provide copies of this Agreement or any other Transaction Documents to any of its financing
                                         sources, its Affiliates, any potential acquirors (direct or indirect) of the Purchaser
                                         and its Affiliates and to its and their respective professional advisors.

 

    	 

    	-38-

    

 

	8.	MISCELLANEOUS

 

		8.1.	Further
                                         Assurances. Each of the parties hereto shall perform such further acts and execute
                                         such further documents as may reasonably be necessary to carry out and give full effect
                                         to the provisions of this Agreement and the intentions of the parties as reflected thereby.

 

		8.2.	Fees
                                         and Expenses. Each of the Seller and the Purchaser shall bear its own fees, costs
                                         and expenses incurred in connection with this Agreement (including the preparation, negotiation
                                         and performance hereof) and the transactions contemplated hereby (including fees and
                                         disbursements of attorneys, accountants, agents, representatives and financial and other
                                         advisors)Seller.

 

		8.3.	Governing
                                         Law; Jurisdiction. This Agreement shall be governed by and construed according
                                         to the laws of the State of Israel, without regard to the conflict of laws provisions
                                         thereof. Any dispute arising under or in relation to this Agreement shall be resolved
                                         exclusively in the competent court in Tel Aviv, and each of the parties hereby irrevocably
                                         submits to the exclusive jurisdiction of such court.

 

		8.4.	Successors
                                         and Assigns; Assignment. No party hereto may assign any of its rights or obligations
                                         under this Agreement unless each other party hereto shall have consented in writing thereto
                                         in its sole and absolute discretion, provided however, that without such consent, the
                                         Purchaser may transfer or assign all or any part of the benefit of, or its rights or
                                         benefits and obligations under this Agreement, to OminQ and/or one or more of OmniQ’s
                                         or the Purchaser’s Affiliates.

 

		8.5.	Entire
                                         Agreement. The Transaction Documents constitute the full and entire understanding
                                         and agreement between the parties with regard to the subject matters hereof and thereof,
                                         and supersedes any prior understanding, agreement or representation between the parties
                                         with respect to its subject matter, including without limitation, that Letter of Intent
                                         dated September 22, 2020. Any term of this Agreement may be amended and the observance
                                         of any term hereof may be waived (either prospectively or retroactively and either generally
                                         or in a particular instance) only with the written consent of the Seller and the Purchaser.

 

		8.6.	Notices.
                                         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 mailed by registered, electronic
                                         or certified mail, postage prepaid, or prepaid air courier, or otherwise delivered by
                                         hand or by messenger, addressed to such party’s address as set forth below or at
                                         such other address as the party shall have furnished to each other party in writing in
                                         accordance with this provision:

 

    	 

    	-39-

    

 

	 	if to the Purchaser:	_______ and to OmniQ Corp.
	 	 	Attn: ______________
	 	 	Address: ______________
	 	 	E-mail: ______________

 

With
a copy which shall not constitute a notice:

 

	 	Goldfarb Seligman & Co.
	 	Attn: Rami Sofer & Yael Zhout
	 	Address: 98 Yigal Alon Street, Tel
    Aviv 6789141, Israel
	 	E-mail:	rami.sofer@goldfarb.com;
	 	 	yael.zhout@goldfarb.com

 

if
to the Company, the Seller:

 

Haim
Dangot

Address:
______________

E-mail:
______________

 

With
a copy which shall not constitute a notice:

 

Matry
Meiri & Co | Law Offices

Attn:
Raviv Tsifroni & Gil Byali

Address:
4 Ariel Sharon Street, Givatayim 5320047 Israel

E-mail:
Raviv@mamlaw.co.il; Gil@mamlaw.co.il

 

Any
notice sent in accordance with this Section 9.8 shall be effective: (a) if mailed, 7 Business Day after mailing; (b) if by courier,
3 Business Days after delivery to the courier service; (c) if sent by messenger, upon actual receipt; and (d) if sent via email,
upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first Business
Day following transmission and electronic confirmation of receipt (provided, however, that any notice of change of address shall
only be valid upon receipt).

 

    	 

    	-40-

    

 

		8.7.	Delays
                                         or Omissions. No delay or omission to exercise any right, power, or remedy accruing
                                         to any party upon any breach or default under this Agreement, shall be deemed a waiver
                                         of any other breach or default theretofore or thereafter occurring. Any amendment, waiver,
                                         permit, consent, or approval of any kind or character on the part of any party or in
                                         respect to any breach or default under this Agreement, or any waiver on the part of any
                                         party of any provisions or conditions of this Agreement, must be in writing and shall
                                         be effective only to the extent specifically set forth in such writing. All remedies,
                                         either under this Agreement or by law or otherwise afforded to any of the parties, shall
                                         be cumulative and not alternative.

 

		8.8.	Severability.
                                         If any provision of this Agreement is held by a court of competent jurisdiction to be
                                         unenforceable under Applicable Law, then such provision shall be excluded from this Agreement
                                         and the remainder of this Agreement shall be interpreted as if such provision were so
                                         excluded and shall be enforceable in accordance with its terms; provided however, that
                                         in such event this Agreement shall be interpreted so as to give effect, to the greatest
                                         extent consistent with and permitted by Applicable law, to the meaning and intention
                                         of the excluded provision as determined by such court of competent jurisdiction.

 

		8.9.	Counterparts.
                                         This Agreement may be executed in any number of counterparts, each of which shall be
                                         deemed an original and enforceable against the parties actually executing such counterpart,
                                         and all of which together shall constitute one and the same instrument.

 

-Signature
Page Follows-

 

    	 

    	-41-

    

 

IN
WITNESS WHEREOF the parties have signed this Agreement as of the date first hereinabove set forth.

 

	 	 	 
	Dangot
    Computers Ltd.
	 	OmniQ

    TECHNOLOGIES
    Ltd.

        

	 	 	 
	 	 	 
		 	OmniQ
    Corp.Exhibit
10.2

 

CONVERSION
AGREEMENT

 

This
CONVERSION AGREEMENT (the “Agreement”), dated as of April 24, 2021 and effective as of May 3, 2021, is entered into
by and between OMNIQ Corp.., a Delaware corporation, (the “Company”), and Jason Griffith. (the “Holder”).

 

WHEREAS:

 

On
February 28, 2018, the Company entered into a settlement agreement with the Holder whereby the Holder converted certain debt owed
to him by the Company into 1,800,000 shares of Series C Preferred Stock (“Preferred Shares”).

 

Whereas,
the Series C Preferred Stock accrues an annual dividend which the Company has not been able to or allowed by law to pay resulting
in the Holder being owed accrued dividends of approximately $203,389.04 (the “Accrued Dividends”);

 

WHEREAS,
the Holder desires to convert the Accrued Dividends into common Stock based on a price of $8.00 per share which is the current
market price resulting in the issuance of an aggregate of 25,424 shares of Common Stock, .0001 par value per share (the “Common
Stock”);

 

WHEREAS,
the Holder desires to convert 1,400,000 of the Preferred Shares (the “Converting Preferred Shares”) themselves into
an aggregate of 70,000 shares of Common Stock based on the ratio of one share of Common Stock for every 20 Preferred Shares converted
as contained in the Certificate of Designation governing the rights of the series C preferred stock as on file with the Delaware
Secretary of State ; and

 

WHEREAS,
the purpose of the transaction from the company perspective is to remove the Preferred Shares and the Accrued Dividends from its
balance sheet and is not a transaction resulting in any financing to the Company.

 

NOW,
THEREFORE, the Company and the Holder hereby agree as follows:

 

Issuance
of Conversion Shares

 

The
Company and the Holder hereby agree to convert the Accrued Dividends and the Preferred Shares into an aggregate of 95,424 shares
of Common stock (the “Common Shares”). Upon execution of this agreement and the issuance of the Conversion Shares,
the Converted Preferred Shares shall be deemed cancelled and the Accrued Dividends shall be extinguished.

 

Exchange:
Closing

 

(a)
Procedure. Upon the execution of this Agreement, the Company will cancel the Converted Preferred Shares on its books and
records and extinguish the Accrued Dividends from its balance sheet.

 

(b)
Upon the execution of this agreement, the Company shall promptly instruct its transfer agent to issue a certificate to Holder
representing the Conversion Shares.

 

(3)
REPRESENTATIONS WARRANTIES AND COVENANTS.

 

(a)
Holder Representations and Warranties. The Holder hereby represents and warrants to the Company:

 

i)
The Holder is duly authorized to enter into and consummate the transactions contemplated by this Agreement and otherwise carry
out its obligations hereunder. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder
and shall constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with
its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.

 

    	 

     

    

 

ii)
The execution, delivery and performance by the Holder of this Agreement and the consummation by the Holder of the transactions
contemplated hereby will not (i) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Holder is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws) applicable to the Holder , except in the case of clauses (ii) and (iii)
above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of the Holder to perform its obligations hereunder.

 

iii)
The Holder is familiar with the business ofthe Company.

 

iv)
The Holder has engaged or has had the opportunity to engage legal counsel prior to entering into and the repayment of this Agreement.

 

v)
The Holder acknowledges that, upon execution of this Agreement, the Holder waives its rights to the Accrued Dividends and to the
Preferred Shares. The Holder acknowledges that the Conversion Shares issued to the Holder will be restricted shares and shall
bear the following legend:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”)
OR ANY STATE SECURITIES OR “BLUE SKY LAWS,” AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
ABSENT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR UNLESS THE
COMPANY HAS RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS
NOT REQUIRED.”

 

Notwithstanding
such legend, provided that the Company is “current” on its required filings under the Securities Exchange Act of 1934,
as amended (the “34 Act”), the Holder may tack onto the holding riod of the Preferred Shares and the Conversion Shares
would be immediately eligible to be sold under rule 144 of the 34 Act.

 

(b)
Company Representations, Warranties and Covenants. The Company hereby represents, warrants and covenants, as applicable,
to the Holder that:

 

i)
Organization and Oualification. The Company is duly organized and validly existing and in good standing under the laws
of the State of Delaware, and has the requisite power and authorization to own its properties and to carry on its business as
now being conducted.

 

    	2

     

    

 

ii)
Authorization: Enforcement: Validity. The Company has the requisite corporate power and authority to enter into and perform
its obligations under this Agreement and to issue the Conversion Shares in accordance with the terms hereof. The execution and
delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby, including,
without limitation, the issuance of the Conversion Shares have been duly authorized by the Company’s Board of Directors
whereby no further filing, consent, or authorization is required by the Company, its Board of Directors or its shareholders. This
Agreement has been duly executed and delivered by the Company, and constitutes the legal, valid and binding obligations of the
Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

iii)
Issuance of Securities. The issuance of the Conversion Shares is duly authorized and, upon issuance in accordance with
the terms of this Agreement, shall be validly issued and free from all taxes, liens and charges with respect to the issue thereof.

 

iv)
No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby including, without limitation, the issuance of the Conversion Shares will not (i) result
in a violation of the Certificate of Incorporation or Bylaws of the Company, any memorandum of association, certificate of incorporation,
certificate of formation, any certificate of designations or other constituent documents of the Company, any capital stock of
the Company or the articles of association or bylaws of the Company (ii) conflict with, or constitute a default (or an event which
with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations
and applicable laws of the State of Delaware and any other state laws) applicable to the Company or by which any property or asset
of the Company is bound or affected.

 

(4)
CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER.

 

The
obligations of the Company to the Holder hereunder are subject to the satisfaction of each of the following conditions, provided
that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion
by providing the Holder with prior written notice thereof:

 

(a)
The Holder shall have executed this Agreement and delivered the same to the Company; and

 

(b)
The Holder shall have executed the voting agreement attached as Exhibit A hereto whereby the holder grants the Company’s
Chief Executive Officer voting rights with respect to the Common Shares acquired hereunder.

 

(5)
CONDITIONS TO HOLDER’S OBLIGATIONS HEREUNDER.

 

The
obligations of the Holder hereunder are subject to the satisfaction of the following condition, provided that the condition is
for the Holder sole benefit and may be waived by the Holder in respect of itself at any time in its sole discretion by providing
the Company with prior written notice thereof:

 

(a)
The Company shall have executed this Agreement and delivered the same to the Holder .

 

    	3

     

    

 

(6)
I SCELLANEOUS.

 

(a)
Governing Law: Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law
or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with
the same force and effect as if the signature were an original, not a facsimile signature.

 

(c)
Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement.

 

(d)
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such
provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective
expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred
upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable
provision(s).

 

(e)
Entire Agreement: Amendments. This Agreement shall supersede all other prior oral or written agreements among the Holder,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein and therein, and
this Agreement, and the instruments referenced herein contain the entire understanding of the parties with respect to the matters
covered herein and therein. No provision of this Agreement may be amended other than by an instrument in writing signed by the
Company and the Holder, and any amendment to this Agreement made in conformity with the provisions of this Section 6(e) shall
be binding on the Holder and the Company. No provision hereof may be waived other than by an instrument in writing signed by the
party against whom enforcement is sought.

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon
receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party) or by electronic mail; or (c) one business day after deposit with an overnight courier service, in
each case properly addressed to the party to receive the same.

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Preferred Shares.

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)
Survival. The representations, warranties and covenants of the Company and the Holder contained herein shall survive the
Closing and delivery and conversion of the Conversion Shares.

 

(j)
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

(k)
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

[Signature
Page Follows]

 

    	4

     

    

 

IN
WITNESS WHEREOF, the Holder and the Company have caused their respective signature pages to this Agreement to be duly executed
as of the date first written above.

 

	 	OMNIQ
    CORP
	 	 	 
	 	By:	 
	 	Name:	 
	 	 	 
	 	By:	 
	 	Name: 
    	JASON
    GRIFFITH

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