Document:

WARRANT DATED 1/14/04 ISSUED TO ARYEH WEBER

 Exhibit 4.5 
  

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES,
OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE OR FOREIGN LAW. 
  
 WARRANT TO PURCHASE ORDINARY SHARES 
  
 ViryaNet Ltd., an Israeli Company whose shares are currently publicly traded on The Nasdaq SmallCap Market and on the Tel Aviv Stock Exchange (the “Company”), hereby grants to Aryeh Weber (the
“Holder”), the right to purchase from the Company the number of Ordinary Shares of the Company, nominal value NIS 1.0 each (the “Ordinary Shares”), set forth below, subject to the terms and conditions set forth
below, effective as of January 14, 2004 (the “Effective Date”). 
  

	1.	 	Number of Ordinary Shares Available for Purchase and Exercise Price 

  
 This Warrant may be exercised to purchase up to 9,000 Ordinary Shares, at an exercise price per each Ordinary Share of
$US5.30 (the “Warrant Price”), subject to adjustments under Section 7 of this Warrant (the “Warrant Shares”). 
  

	2.	 	Term 

  
 This Warrant may be exercised, in whole, or in part (subject to Section 4 below), during the period beginning on the Effective Date and ending on the
second anniversary of the Effective Date. 
  

	3.	 	Exercise of Warrant 

  
 This Warrant may be exercised in whole or in part on any number of occasions during its term. The Warrant may be exercised by the surrender of the Warrant
to the Company at its principal office together with the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder. This Warrant may be exercised for cash only. To exercise for cash, the Notice of Exercise must be
accompanied by payment in full of the amount of the aggregate purchase price of the Warrant Shares being purchased upon such exercise in immediately available funds, in U.S. Dollars or NIS equivalent thereof, based on the representative rate of
exchange published by the Bank of Israel and known at the time of payment. 

 The Company agrees that the Warrant Shares so purchased shall be issued as soon as practicable
thereafter, and that the Holder shall be deemed the record owner of such Warrant Shares as of and from the close of business on the date on which this Warrant shall be surrendered, together with payment in full as required above. In the event of a
partial exercise, the Company shall concurrently issue to the Holder a replacement Warrant on the same terms and conditions as this Warrant, but representing the number of Warrant Shares remaining after such partial exercise. 
  

	4.	 	Fractional Interest 

  
 No fractional shares will be issued in connection with any exercise hereunder, and the number of Warrant Shares issued shall be rounded down to the
nearest whole number. 
  

	5.	 	Warrant Confers No Rights of Shareholder 

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

	6.	 	Investment Representation 

  
 Neither this Warrant nor the Warrant Shares issuable upon the exercise of this Warrant have been registered under the Securities Act, or any other
securities laws. The Holder acknowledges by acceptance of the Warrant that (a) it has acquired this Warrant for investment and not with a view to distribution; (b) it has either a pre-existing personal or business relationship with the Company, or
its executive officers, or by reason of its business or financial experience, it has the capacity to protect its own interests in connection with the transaction; and (c) it is an accredited investor as that term is defined in Regulation D
promulgated under the Securities Act. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant will be acquired for investment and not with a view to distribution and such Warrant Shares will not be registered under the
Securities Act and applicable state securities laws and that such Warrant Shares may have to be held indefinitely unless they are subsequently registered or qualified under the Securities Act and applicable state securities laws, or based on an
opinion of counsel reasonably satisfactory to the Company, an exemption from such registration and qualification is available. The Holder, by acceptance hereof, consents to the placement of legend(s) on all securities hereunder as to the applicable
restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop
transfer instructions to its transfer agent in connection with such restrictions. 
  

 - 2 - 

	7.	 	Adjustment of Warrant Price and Number of Shares 

  
 The number and kind of securities purchasable initially upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time
to time upon the occurrence of certain events, as follows: 
  

	 	a.	 	Adjustment for Shares Splits and Combinations. If the Company at any time or from time to time during the term of this Warrant effects a subdivision of the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of this Warrant immediately before the subdivision shall be proportionately increased, and conversely, if the Company at any time or from time to time combines the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of this Warrant immediately before the combination shall be proportionately decreased. Any adjustment under this Section 7(a) shall become effective at the close of business on
the date the subdivision or combination becomes effective. 

  

	 	b.	 	Adjustment for Certain Dividends and Distributions. In the event the Company at any time or from time to time, during the term of this Warrant makes, or fixes a record
date for the determination of holders of Ordinary Shares entitled to receive a dividend or other distribution payable in additional shares of Ordinary Shares, then and in each such event the number of Ordinary Shares issuable upon exercise of this
Warrant shall be increased as of the time of such issuance or, in the event such a record date is fixed, as of the close of business on such record date, by multiplying the number of Ordinary Shares issuable upon exercise of this Warrant by a
fraction: (i) the numerator of which shall be the total number of Ordinary Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of Ordinary Shares issuable in
payment of such dividend or distribution, and (ii) the denominator of which is the total number of shares of Ordinary Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date;
provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed thereof, the number of Ordinary Shares issuable upon exercise of this Warrant shall be
recomputed accordingly as of the close of business on such record date and thereafter the number of shares of Ordinary Shares issuable upon exercise of this Warrant shall be adjusted pursuant to this Section 7(b) as of the time of actual payment of
such dividends or distributions. 

  

	 	c.	 	Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time during the term of this Warrant makes, or fixes a record
date for the determination of holders of Ordinary Shares entitled to receive a dividend or other distribution payable in securities of the Company other than Ordinary Shares, then in each such event provision shall be made so that the Holder shall
receive upon exercise of this Warrant, in addition to the number of Ordinary Shares receivable thereupon, the amount of securities of the Company that the Holder would have received had this Warrant been exercised for Ordinary Shares immediately
prior to such event (or the record date for such event) and had the Holder thereafter, during the period from the date of such event to and including the date of exercise, retained such securities receivable by it as aforesaid during such period,
subject to all other adjustments called for during such period under this Section and the Company’s Articles of Association with respect to the rights of the Holder. 

  

 - 3 - 

	 	d.	 	Adjustment for Reclassification, Exchange and Substitution. If the Ordinary Shares issuable upon the exercise of this Warrant are changed into the same or a different
number of shares of any class or classes of shares, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or shares dividend or a reorganization, merger, consolidation or sale of assets,
provided for elsewhere in this Section), then and in any such event the Holder shall have the right thereafter to exercise this Warrant into the kind and amount of shares and other securities receivable upon such recapitalization, reclassification
or other change, by holders of the number of shares of Ordinary Shares for which this Warrant might have been exercised immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein and
under the Company’s Articles of Association. 

  

	 	e.	 	Reorganization, Mergers, Consolidations or Sales of Assets. If at any time or from time to time during the term of this Warrant there is a capital reorganization of
the Ordinary Shares (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Subsection) or a merger or consolidation of the Company with or into another corporation, or the sale
of all or substantially all of the Company’s shares or properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to
receive upon exercise of this Warrant, the number of shares or other securities or property of the Company, or of the successor corporation resulting from such merger or consolidation or sale, to which a holder of Ordinary Shares deliverable upon
conversion would have been entitled on such capital reorganization, merger, consolidation or sale. In any such case (except to the extent any cash or property is received in such transaction), appropriate adjustment shall be made in the application
of the provisions of this Subsection and the Company’s Articles of Association with respect to the rights of the Holder after the reorganization, merger, consolidation or sale to the end that the provisions of this Subsection and the
Company’s Articles of Association (including adjustment of the number of shares of Ordinary Shares issuable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent to the provisions hereof as may be
practicable. 

  

	 	f.	 	Adjustment of Warrant Price. Upon each adjustment in the number of Ordinary Shares purchasable hereunder, the Warrant Price shall be proportionately increased or
decreased, as the case may be, in a manner that is the inverse of the manner in which the number of Ordinary Shares purchasable hereunder shall be adjusted. 

  

	8.	 	Transfer of This Warrant or Securities Issuable on Exercise Hereof 

  

	 	a.	 	With respect to any offer, sale or other disposition of this Warrant or securities into which such Warrant may be exercised, the Holder will give written notice to the Company prior
thereto, describing briefly the manner thereof, together with, if requested by the Company, a written opinion of such Holder’s counsel, 

  

 - 4 - 

 to the effect that such offer, sale or other distribution may be effected without registration or
qualification (under any federal or state law then in effect). Such opinion letter and all such transferees must warrant and represent that each such transferee is an “accredited” investor as that term is defined under Regulation D of the
Securities Act. Promptly, as practicable, upon receiving such written notice and opinion and warranties and representations, if so requested, the Company, as promptly as practicable, shall deliver to the Holder one or more replacement Warrant
certificates on the same terms and conditions as this Warrant for delivery to the transferees. Each Warrant thus transferred and each certificate representing the securities thus transferred shall bear legend(s) as to the applicable restrictions on
transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer
instructions to its transfer agent in connection with such restrictions. Any provision of this Warrant to the contrary notwithstanding, the Holder may not offer, sell or otherwise dispose of this Warrant to any third party, other than to any
transferee approved by the Company in writing in its sole discretion. In addition to the above, any transfer of this Warrant or the Warrant Shares shall be subject to the provisions of the Company’s Articles of Association. 
  

	 	b.	 	In the event that the Company or its shareholders receive an offer to transfer all or substantially all of the shares in the Company, or to effect a merger or acquisition, or sale
of all or substantially all of the assets of the Company, then the Company shall promptly inform the Holder in writing of such offer. 

  

	9.	 	Representations and Warranties. 

  
 The Company represents and warrants to the Holder as follows: 
  

	 	a.	 	This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms.

  

	 	b.	 	The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid and
nonassessable and not subject to any preemptive rights. 

  

	 	c.	 	The execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof will not be,
inconsistent with the Company’s Articles of Association. 

  

	10.	 	Loss, Theft, Destruction or Mutilation of Warrant 

  
 Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Warrant or Shares certificate,
and in case of loss, theft or destruction, of indemnity, or security reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of such Warrant or Shares
certificate, if 
  

 - 5 - 

 mutilated, the Company will make and deliver a new Warrant or Shares certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or Shares certificate. 
  

	11.	 	Notices 

  
 Any notice or other communication hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered or three
business days after deposit if deposited in the mail for mailing by certified mail, postage prepaid, and addressed as follows: 
  
 If to Holder: 
  

			
	 If to Company:
	  	 ViryaNet Ltd.

	 	  	 2 Willow Street, Southborough, Massachusetts

	 	  	 attn.: Samuel HaCohen

	 	  	 fax: 508-490-8666

  
 Each of the above
addressees may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance with this paragraph. 
  

	12.	 	Applicable Law; Jurisdiction 

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

	13.	 	Entire Agreement 

  
 This Warrant constitutes the entire agreement between the parties hereto with regard to the subject matters hereof, and supercedes any prior
communications, agreements and/or understandings between the parties hereto with regard to the subject matters hereof. 
  
 Dated: January 14, 2004 
  

	
	 VIRYANET LTD.

	
	 By: /s/ Samuel I. HaCohen

	
	 Title: Chairman of the Board

  

 - 6 - 

 NOTICE OF EXERCISE 
  
 To: ViryaNet Limited 
  

	1.	 	The undersigned hereby elects to purchase              shares of Ordinary Shares of ViryaNet Limited, pursuant to
the terms of the attached Warrant, and tenders herewith payment of the purchase price for such shares in full. 

  

	2.	 	In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Ordinary Shares are being acquired solely for the account of the undersigned and not
as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Ordinary Shares except under circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws. 

  

	3.	 	Please issue a certificate representing said shares of Ordinary Shares in the name of the undersigned. 

  

	4.	 	Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned. 

  

			
	 _________________________
	 	 _________________________

	 (Date)
	 	 (Print Name)

		
	 	 	 _________________________

	 	 	 (Signature)

  

 - 7 -WARRANT DATED 1/14/04 ISSUED TO MODI PELED

 Exhibit 4.6 
  

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES,
OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE OR FOREIGN LAW. 
  
 WARRANT TO PURCHASE ORDINARY SHARES 
  
 ViryaNet Ltd., an Israeli Company whose shares are currently publicly traded on The Nasdaq SmallCap Market and on the Tel Aviv Stock Exchange (the “Company”), hereby grants to Modi Peled (the
“Holder”), the right to purchase from the Company the number of Ordinary Shares of the Company, nominal value NIS 1.0 each (the “Ordinary Shares”), set forth below, subject to the terms and conditions set forth
below, effective as of January 14, 2004 (the “Effective Date”). 
  

	1.	 	Number of OrdinaryShares Available for Purchase and Exercise Price 

  
 This Warrant may be exercised to purchase up to 9,000 Ordinary Shares, at an exercise price per each Ordinary Share of
$US5.30 (the “Warrant Price”), subject to adjustments under Section 7 of this Warrant (the “Warrant Shares”). 
  

	2.	 	Term 

  
 This Warrant may be exercised, in whole, or in part (subject to Section 4 below), during the period beginning on the Effective Date and ending on the
second anniversary of the Effective Date. 
  

	3.	 	Exercise of Warrant 

  
 This Warrant may be exercised in whole or in part on any number of occasions during its term. The Warrant may be exercised by the surrender of the Warrant
to the Company at its principal office together with the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder. This Warrant may be exercised for cash only. To exercise for cash, the Notice of Exercise must be
accompanied by payment in full of the amount of the aggregate purchase price of the Warrant Shares being purchased upon such exercise in immediately available funds, in U.S. Dollars or NIS equivalent thereof, based on the representative rate of
exchange published by the Bank of Israel and known at the time of payment. 

 The Company agrees that the Warrant Shares so purchased shall be issued as soon as practicable
thereafter, and that the Holder shall be deemed the record owner of such Warrant Shares as of and from the close of business on the date on which this Warrant shall be surrendered, together with payment in full as required above. In the event of a
partial exercise, the Company shall concurrently issue to the Holder a replacement Warrant on the same terms and conditions as this Warrant, but representing the number of Warrant Shares remaining after such partial exercise. 
  

	4.	 	Fractional Interest 

  
 No fractional shares will be issued in connection with any exercise hereunder, and the number of Warrant Shares issued shall be rounded down to the
nearest whole number. 
  

	5.	 	Warrant Confers No Rights of Shareholder 

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

	6.	 	Investment Representation 

  
 Neither this Warrant nor the Warrant Shares issuable upon the exercise of this Warrant have been registered under the Securities Act, or any other
securities laws. The Holder acknowledges by acceptance of the Warrant that (a) it has acquired this Warrant for investment and not with a view to distribution; (b) it has either a pre-existing personal or business relationship with the Company, or
its executive officers, or by reason of its business or financial experience, it has the capacity to protect its own interests in connection with the transaction; and (c) it is an accredited investor as that term is defined in Regulation D
promulgated under the Securities Act. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant will be acquired for investment and not with a view to distribution and such Warrant Shares will not be registered under the
Securities Act and applicable state securities laws and that such Warrant Shares may have to be held indefinitely unless they are subsequently registered or qualified under the Securities Act and applicable state securities laws, or based on an
opinion of counsel reasonably satisfactory to the Company, an exemption from such registration and qualification is available. The Holder, by acceptance hereof, consents to the placement of legend(s) on all securities hereunder as to the applicable
restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop
transfer instructions to its transfer agent in connection with such restrictions. 
  

	7.	 	Adjustment of Warrant Price and Number of Shares 

  
 The number and kind of securities purchasable initially upon the exercise of this Warrant and the Warrant Price shall be subject to adjustment from time
to time upon the occurrence of certain events, as follows: 
  

 -2- 

	 	a.	 	Adjustment for Shares Splits and Combinations. If the Company at any time or from time to time during the term of this Warrant effects a subdivision of the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of this Warrant immediately before the subdivision shall be proportionately increased, and conversely, if the Company at any time or from time to time combines the outstanding
Ordinary Shares, the number of Ordinary Shares issuable upon exercise of this Warrant immediately before the combination shall be proportionately decreased. Any adjustment under this Section 7(a) shall become effective at the close of business on
the date the subdivision or combination becomes effective. 

  

	 	b.	 	Adjustment for Certain Dividends and Distributions. In the event the Company at any time or from time to time, during the term of this Warrant makes, or fixes a record
date for the determination of holders of Ordinary Shares entitled to receive a dividend or other distribution payable in additional shares of Ordinary Shares, then and in each such event the number of Ordinary Shares issuable upon exercise of this
Warrant shall be increased as of the time of such issuance or, in the event such a record date is fixed, as of the close of business on such record date, by multiplying the number of Ordinary Shares issuable upon exercise of this Warrant by a
fraction: (i) the numerator of which shall be the total number of Ordinary Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of Ordinary Shares issuable in
payment of such dividend or distribution, and (ii) the denominator of which is the total number of shares of Ordinary Shares issued and outstanding immediately prior to the time of such issuance or the close of business on such record date;
provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed thereof, the number of Ordinary Shares issuable upon exercise of this Warrant shall be recomputed
accordingly as of the close of business on such record date and thereafter the number of shares of Ordinary Shares issuable upon exercise of this Warrant shall be adjusted pursuant to this Section 7(b) as of the time of actual payment of such
dividends or distributions. 

  

	 	c.	 	Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time during the term of this Warrant makes, or fixes a record
date for the determination of holders of Ordinary Shares entitled to receive a dividend or other distribution payable in securities of the Company other than Ordinary Shares, then in each such event provision shall be made so that the Holder shall
receive upon exercise of this Warrant, in addition to the number of Ordinary Shares receivable thereupon, the amount of securities of the Company that the Holder would have received had this Warrant been exercised for Ordinary Shares immediately
prior to such event (or the record date for such event) and had the Holder thereafter, during the period from the date of such event to and including the date of exercise, retained such securities receivable by it as aforesaid during such period,
subject to all other adjustments called for during such period under this Section and the Company’s Articles of Association with respect to the rights of the Holder. 

  
  

 -3- 

	 	d.	 	Adjustment for Reclassification, Exchange and Substitution. If the Ordinary Shares issuable upon the exercise of this Warrant are changed into the same or a different
number of shares of any class or classes of shares, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or shares dividend or a reorganization, merger, consolidation or sale of assets,
provided for elsewhere in this Section), then and in any such event the Holder shall have the right thereafter to exercise this Warrant into the kind and amount of shares and other securities receivable upon such recapitalization, reclassification
or other change, by holders of the number of shares of Ordinary Shares for which this Warrant might have been exercised immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein and
under the Company’s Articles of Association. 

  

	 	e.	 	Reorganization, Mergers, Consolidations or Sales of Assets. If at any time or from time to time during the term of this Warrant there is a capital reorganization of
the Ordinary Shares (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Subsection) or a merger or consolidation of the Company with or into another corporation, or the sale
of all or substantially all of the Company’s shares or properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to
receive upon exercise of this Warrant, the number of shares or other securities or property of the Company, or of the successor corporation resulting from such merger or consolidation or sale, to which a holder of Ordinary Shares deliverable upon
conversion would have been entitled on such capital reorganization, merger, consolidation or sale. In any such case (except to the extent any cash or property is received in such transaction), appropriate adjustment shall be made in the application
of the provisions of this Subsection and the Company’s Articles of Association with respect to the rights of the Holder after the reorganization, merger, consolidation or sale to the end that the provisions of this Subsection and the
Company’s Articles of Association (including adjustment of the number of shares of Ordinary Shares issuable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent to the provisions hereof as may be
practicable. 

  

	 	f.	 	Adjustment of Warrant Price. Upon each adjustment in the number of Ordinary Shares purchasable hereunder, the Warrant Price shall be proportionately increased or
decreased, as the case may be, in a manner that is the inverse of the manner in which the number of Ordinary Shares purchasable hereunder shall be adjusted. 

  

	8.	 	Transfer of This Warrant or Securities Issuable on Exercise Hereof 

  

	 	a.	 	With respect to any offer, sale or other disposition of this Warrant or securities into which such Warrant may be exercised, the Holder will give written notice to the Company prior
thereto, describing briefly the manner thereof, together with, if requested by the Company, a written opinion of such Holder’s counsel, 

  
  

 -4- 

 to the effect that such offer, sale or other distribution may be effected without registration or
qualification (under any federal or state law then in effect). Such opinion letter and all such transferees must warrant and represent that each such transferee is an “accredited” investor as that term is defined under Regulation D of the
Securities Act. Promptly, as practicable, upon receiving such written notice and opinion and warranties and representations, if so requested, the Company, as promptly as practicable, shall deliver to the Holder one or more replacement Warrant
certificates on the same terms and conditions as this Warrant for delivery to the transferees. Each Warrant thus transferred and each certificate representing the securities thus transferred shall bear legend(s) as to the applicable restrictions on
transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer
instructions to its transfer agent in connection with such restrictions. Any provision of this Warrant to the contrary notwithstanding, the Holder may not offer, sell or otherwise dispose of this Warrant to any third party, other than to any
transferee approved by the Company in writing in its sole discretion. In addition to the above, any transfer of this Warrant or the Warrant Shares shall be subject to the provisions of the Company’s Articles of Association. 
  

	 	b.	 	In the event that the Company or its shareholders receive an offer to transfer all or substantially all of the shares in the Company, or to effect a merger or acquisition, or sale
of all or substantially all of the assets of the Company, then the Company shall promptly inform the Holder in writing of such offer. 

  

	9.	 	Representations and Warranties. 

  
 The Company represents and warrants to the Holder as follows: 
  

	 	a.	 	This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms.

  

	 	b.	 	The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid and
nonassessable and not subject to any preemptive rights. 

  

	 	c.	 	The execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof will not be,
inconsistent with the Company’s Articles of Association. 

  

	10.	 	Loss, Theft, Destruction or Mutilation of Warrant 

  
 Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Warrant or Shares certificate,
and in case of loss, theft or destruction, of indemnity, or security reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of such Warrant or Shares
certificate, if 

  

 -5- 

 
mutilated, the Company will make and deliver a new Warrant or Shares certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or
Shares certificate. 
  

	11.	 	Notices 

  
 Any notice or other communication hereunder shall be in writing and shall be deemed to have been given upon delivery, if personally delivered or three
business days after deposit if deposited in the mail for mailing by certified mail, postage prepaid, and addressed as follows: 
  

			
	 If to Holder:
	  	 
		
	 If to Company:
	  	ViryaNet Ltd.
	 	  	2 Willow Street, Southborough, Massachusetts
	 	  	attn.: Samuel HaCohen
	 	  	fax: 508-490-8666

  
 Each of the above
addressees may change its address for purposes of this paragraph by giving to the other addressees notice of such new address in conformance with this paragraph. 
  

	12.	 	Applicable Law; Jurisdiction 

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

	13.	 	Entire Agreement 

  
 This Warrant constitutes the entire agreement between the parties hereto with regard to the subject matters hereof, and supercedes any prior
communications, agreements and/or understandings between the parties hereto with regard to the subject matters hereof. 
  
 Dated: January 14, 2004 
  

			
	 VIRYANET LTD.

		
	 By:
	 	 /s/ Samuel I. HaCohen
  

	 Title:
	 	 Chairman of the Board
  

  

 -6- 

 NOTICE OF EXERCISE 
  
 To: ViryaNet Limited 
  

	1.	 	The undersigned hereby elects to purchase              shares of Ordinary Shares of ViryaNet Limited, pursuant to
the terms of the attached Warrant, and tenders herewith payment of the purchase price for such shares in full. 

  

	2.	 	In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Ordinary Shares are being acquired solely for the account of the undersigned and not
as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Ordinary Shares except under circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws. 

  

	3.	 	Please issue a certificate representing said shares of Ordinary Shares in the name of the undersigned. 

  

	4.	 	Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned. 

  

					
	
	 	 	 	

	 (Date)
	 	 	 	 (Print Name)
  

	 	 	 	 	

	 	 	 	 	 (Signature)

  

 -7-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]