Document:

Exhibit 10.1

 

SHARE PURCHASE AGREEMENT

 

This Share Purchase
Agreement (“Agreement”), dated and effective as of January 14, 2020 (the “Effective Date”),
is by and between BPR Cumulus LLC, a Delaware limited liability company (the “Purchaser”), and Allied Esports
Entertainment, Inc., a Delaware corporation (the “Company”).

 

RECITAL:

 

 

A.       The
Purchaser desires to purchase and acquire from the Company, and the Company desires to sell to the Purchaser, shares of common
stock of the Company, all on the terms and conditions contained in this Agreement.

 

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

 

1.               
Purchase of Shares; Closing Date.

 

(a)             
On the Closing Date (as defined below), the Company shall sell and issue to Purchaser 758,725 shares of Common Stock of
the Company (the “Purchased Shares”), and the Purchaser shall purchase and acquire the Purchased Shares
from the Company. The purchase price for the Purchased Shares shall be $5,000,000 (approximately $6.59 per share) (the “Purchase
Price”) and, on the Closing Date, the Purchaser shall deliver the Purchase Price by wire transfer of immediately available
funds to an account designated in writing by Continental Stock Transfer & Trust Company, as escrow agent (the “Escrow
Agent”), pursuant to a written escrow agreement entered into by and among the Purchaser, the Company, and the Escrow
Agent simultaneously herewith (the “Escrow Agreement”). Notwithstanding anything to the contrary, upon such
delivery of the Purchase Price to the Escrow Agent on the Closing Date, the Company shall be deemed to have received full consideration
for the Purchased Shares and all of the right, title and interest in and to the Purchased Shares shall be transferred and assigned
to the Purchaser and the Purchaser shall be the legal and the beneficial owner of the Purchased Shares, free and clear of all Encumbrances
(as defined herein); for the avoidance of doubt, the Purchase Price shall be deemed to have been first delivered and paid in full
by the Purchaser to the Company and the Company to have subsequently delivered the same amount to the Escrow Agent as escrow funds);
and the Company acknowledges and agrees with the foregoing and agrees not to dispute any of the foregoing.

 

(b)            
Upon the execution of the First Esports Venue Lease (as defined below) by and between the Purchaser (or its affiliate) and
the Company (or its affiliate), the Purchaser and the Company shall deliver joint written instructions to the Escrow Agent to release
$2,500,000 of the Purchase Price to the Company in accordance with the terms and conditions of the Escrow Agreement. The Purchaser
and the Company acknowledge and agree that they will work together in good faith at arm’s length to enter into a written
lease agreement for the first Esports Venue at the First Colony Mall (as defined in Exhibit A attached hereto and made a
part hereof) by and between the Purchaser (or its affiliate) and the Company (or its affiliate) as soon as reasonably practicable
following the Effective Date (the “First Esports Venue Lease”), provided, however, that the Purchaser and the
Company further acknowledge and agree that, unless otherwise agreed in writing by the Purchaser and the Company, such $2,500,000
shall remain with the Escrow Agent in the applicable escrow account until such time as the First Esports Venue Lease is fully executed.
At such time, the Purchaser and the Company shall deliver joint written instructions to the Escrow Agent to release $2,500,000
to the Company in accordance with the terms and conditions of the Escrow Agreement.

 

(c)             
Upon the execution of the Second Esports Venue Lease (as defined below) by and between the Purchaser (or its affiliate)
and the Company (or its affiliate), the Purchaser and the Company shall deliver joint written instructions to the Escrow Agent
to release $2,500,000 to the Company in accordance with the terms and conditions of the Escrow Agreement. The Purchaser and the
Company acknowledge and agree that they will work together in good faith at arm’s length to enter into a written lease agreement
for the second Esports Venue by and between the Purchaser (or its affiliate) and the Company (or its affiliate) as soon as reasonably
practicable following the full execution of the First Esports Venue Lease (the “Second Esports Venue Lease”),
provided, however, that the Purchaser and the Company further acknowledge and agree that, unless otherwise agreed in writing by
the Purchaser and the Company, such $2,500,000 shall remain with the Escrow Agent in the applicable escrow account until such time
as the Second Esports Venue Lease is fully executed. At such time, the Purchaser and the Company shall deliver joint written instructions
to the Escrow Agent to release $2,500,000 to the Purchaser in accordance with the terms and conditions of the Escrow Agreement.

 

 

 

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(d)            
The closing of the purchase and sale of the Purchased Shares shall take place by exchange of this Agreement, the Escrow
Agreement and signature pages thereto via email and the delivery of the Purchase Price to the Escrow Agent, respectively, on the
Effective Date or on such other date as the parties to this Agreement may mutually agree in writing (the “Closing Date”).
Within three (3) business days after the Closing Date, the Company (through its transfer agent) will deliver to the Purchaser evidence
of the Purchased Shares, including, without limitation, an accounting statement showing the issuance of the Purchased Shares in
restricted book entry.

 

2.               
Registration Rights. The Company shall, on or prior to March 30, 2020, file with the Securities and Exchange Commission
(the “Commission”) a registration statement registering the resale of the Purchased Shares (as amended from
time to time, the “Registration Statement”), and use its best efforts to have the Registration Statement declared effective
within the earlier of (i) sixty (60) days of the filing of the Registration Statement and (ii) five (5) business days after being
advised by the Commission that the Commission is not reviewing the Registration Statement or has no further comments to the Registration
Statement. The Company will use its reasonable best efforts to maintain the continuous effectiveness of the Registration Statement
until the earlier of (a) the date on which such securities may be resold without any limitations (including, without limitation,
volume or manner of sale limitations) pursuant to Rule 144 promulgated under the Securities Act (as defined below) and (b) the
date on which the Purchaser has notified the Company in writing that all of such registrable securities have actually been sold.
Upon the Registration Statement becoming declared effective by the Commission, (i) the Company will promptly notify the Purchaser
of the effectiveness of the Registration Statement, and (ii) if after the date the Registration Statement is declared effective,
the Purchaser seeks to sell the Purchased Shares, the Company shall take all actions reasonably necessary to allow, and shall use
reasonable best efforts to ensure that the Company’s transfer agent and counsel facilitate, the sale or transfer of the Purchased
Shares pursuant to the Registration Statement.

 

The Company shall:

 

(a)             
advise the Purchaser within one (1) business day:

 

		(1)	when the Registration Statement or any amendment thereto has been filed with the Commission and
when such Registration Statement or any post-effective amendment thereto has become effective;

 

		(2)	of any request by the Commission for amendments or supplements to the Registration Statement or
the prospectus included therein or for additional information with respect thereto;

 

		(3)	of the issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for such purpose;

 

		(4)	of the receipt by the Company of any notification with respect to the suspension of the qualification
of the Purchased Shares included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

 

		(5)	if it learns that any statement included in the Registration Statement or related prospectus is
misleading and omits to state a material fact required to be stated therein or necessary to make the statements therein (in the
case of a prospectus, in the light of the circumstances under which they were made) not misleading.

 

Notwithstanding anything to the contrary set forth herein, the
Company shall not, when so advising the Purchaser of such events, provide the Purchaser with any material, nonpublic information
regarding the Company;

 

(b)            
use its commercially reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of the Registration
Statement as soon as reasonably practicable;

 

(c)             
upon the occurrence of any event contemplated above, except for such times as the Company is permitted hereunder to suspend,
and has suspended, the use of a prospectus forming part of the Registration Statement, the Company shall use its best efforts to
as soon as reasonably practicable prepare a post-effective amendment to such Registration Statement or a supplement to the related
prospectus, or file any other required document so that, as thereafter delivered to purchasers of the Purchased Shares included
therein, such prospectus will not include any untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

 

 

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(d)            
use its commercially reasonable best efforts to cause all the Purchased Shares to be listed on each securities exchange
or market, if any, on which equity securities issued by the Company have been listed; and

 

(e)             
use its reasonable best efforts to take all other steps necessary to effect the registration of the Purchased Shares contemplated
hereby.

 

The Company shall,
notwithstanding any termination of this Agreement, indemnify, defend and hold harmless the Purchaser (to the extent a seller under
any Registration Statement), the officers, directors, agents, partners, members, managers, stockholders, affiliates, employees
and investment advisers of each of them, each person who controls the Purchaser (within the meaning of Section 15 of the Securities
Act of 1933, as amended (the “Securities Act”) or Section 20 of the Securities Exchange Act of 1934, as
amended, the “Securities Exchange Act”)) and the officers, directors, partners, members, managers, stockholders,
agents, affiliates, employees and investment advisers of each such controlling person, to the fullest extent permitted by applicable
law, from and against any and all losses, claims, demands, suits, actions, judgments, damages, liabilities, costs (including, without
limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, that arise
out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement,
any prospectus included in any Registration Statement or any form of prospectus or in any amendment or supplement thereto or in
any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material fact required
to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement
thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by
the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection
with the performance of its obligations under this Section 2, except to the extent, but only to the extent, that such untrue
statements, untrue statements, omissions or omissions are based upon information regarding the Purchaser furnished in writing to
the Company by the Purchaser expressly for use therein. The Company shall notify the Purchaser promptly of the institution, threat
or assertion of any proceeding arising from or in connection with the transactions contemplated by this Section 2 of which
the Company is or becomes aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or
on behalf of an indemnified party and shall survive the transfer of the Purchased Shares by the Purchaser.

 

3.               
Purchaser Representations, Warranties, and Covenants. Purchaser hereby represents, warrants, and covenants to the
Company that:

 

(a)             
Purchaser is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

(b)            
This Agreement has been validly authorized, executed and delivered by the Purchaser and, assuming the due authorization,
execution and delivery thereof by the Company, is a valid and binding agreement enforceable in accordance with its terms, subject
to the general principles of equity and to bankruptcy or other laws affecting the enforcement of creditors’ rights generally.
The execution, delivery and performance of this Agreement by the Purchaser does not and will not conflict with, violate or cause
a breach of, constitute a default under, or result in a violation of (i) any agreement, contract or instrument to which the Purchaser
is a party which would prevent the Purchaser from performing its obligations hereunder or (ii) any law, statute, rule or regulation
to which the Purchaser is subject.

 

(c)             
Purchaser has the requisite corporate power and authority to enter into and to perform its obligations under this Agreement;
and the execution, delivery and performance by the Purchaser of this Agreement have been duly authorized by all necessary action
on the part of the Purchaser.

 

(d)            
Purchaser is an “accredited investor” as defined by Rule 501 under the Securities Act.

 

(e)             
Purchaser acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by this
Agreement with the Purchaser’s own legal counsel and investment and tax advisors. Purchaser is familiar with the business,
management, financial condition and affairs of the Company.

 

(f)             
Purchaser has reviewed the documents of the Company filed with the Commission (the “Company Filings”),
and Purchaser understands the content of the Company Filings and the risks described about an investment in the Company.

 

(g)            
Purchaser has been advised that the Purchased Shares have not been registered under the Securities Act.

 

 

 

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(h)            
The Purchased Shares will be acquired for the Purchaser’s own account, not as nominee or agent, and not with a view
to the resale or distribution of any part thereof in violation of the Securities Act.

 

(i)              
The Purchaser has had an opportunity to receive all information related to the Company requested by it and to ask questions
of and receive answers from the Company regarding the Company, its business and the terms and conditions of the offering of the
Purchased Shares. The Purchaser acknowledges receipt of copies of the Company Filings.

 

(j)              
The Purchaser understands that the Purchased Shares are characterized as “restricted securities” under the U.S.
federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and
that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only
in certain limited circumstances.

 

(k)            
The Purchaser understands that certificates evidencing the Purchased Shares may bear a legend noting that the Purchased
Shares have not been registered under the Securities Act or any applicable state securities laws and may not be transferred except
in certain situations.

 

(l)              
The Purchaser’s principal executive offices are in the jurisdiction set forth in the address for such Purchaser set
forth on the applicable signature page attached hereto.

 

(m)           
Notwithstanding Section 4(f) below, the parties hereto acknowledge and agree that in connection with the HyperX Esports
Truck Events (as defined in Section 4(f) below), each party shall perform the services and/or satisfy the obligations set
forth in Exhibit B attached hereto and made a part hereof.

 

4.               
Company Representations, Warranties, and Covenants. The Company hereby represents, warrants and covenants to the
Purchaser that:

 

(a)             
The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

(b)            
This Agreement has been validly authorized, executed and delivered by it and, assuming the due authorization, execution
and delivery thereof by the Purchaser, is a valid and binding agreement enforceable in accordance with its terms, subject to the
general principles of equity and to bankruptcy or other laws affecting the enforcement of creditors’ rights generally. The
execution, delivery and performance of this Agreement by the Company does not and will not conflict with, violate or cause a breach
of, constitute a default under, or result in a violation of (i) any agreement, contract or instrument to which the Company is a
party which would prevent the Company from performing its obligations hereunder or (ii) any law, statute, rule or regulation to
which the Company is subject.

 

(c)             
The Company has the requisite corporate power and authority to enter into and to perform its obligations under this Agreement;
and the execution, delivery and performance by the Company of this Agreement have been duly authorized by all necessary action
on the part of the Company.

 

(d)            
None of the Company Filings filed with the Commission since August 9, 2019, as of their respective dates (or, if amended
or superseded by a filing prior to the date of this Agreement, then on the date of such filing), contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

 

(e)             
The Company shall only use the Purchase Price as set forth in Exhibit A, and the Company hereby covenants to the
Purchaser the Company’s obligations as set forth in Exhibit A. 

 

(f)             
The Company, or one its subsidiaries, shall create, produce, and execute three (3) esports events during each calendar year
in 2020, 2021, and 2022, respectively, that will include the HyperX Esports Truck (as defined in Exhibit A hereto) at one
or more of the Brookfield Property Malls (together, the “HyperX Esports Truck Events” and each, a “HyperX
Esports Truck Event”), which the timing of such HyperX Esports Truck Events for each applicable calendar year shall be
mutually agreed upon in writing by the parties hereto (e.g., electronically or otherwise, including, without limitation, e-mail
confirmation). Notwithstanding the foregoing, the parties hereto acknowledge and agree that in connection with the HyperX Esports
Truck Events, each party shall perform the services and/or satisfy the obligations set forth in Exhibit B.

 

 

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(g)            
The Purchased Shares are free and clear of any liens, charges, pledges, claims, restrictions, security interests or encumbrances
or to any option, warrant or agreement (collectively, “Encumbrances”) except as expressly set forth in this
Agreement.

 

(h)            
The Share Purchase Agreement entered into with the Company or any of its affiliates and Simon Property Group, Inc. (or any
of its subsidiaries, including without limitation, Simon Equity Development, LLC) is the exclusive agreement setting forth the
terms for the acquisition of any shares of the Company’s capital stock or any other securities of the Company or any options,
warrants or other rights to acquire any such shares or securities, and is attached as Exhibit 10.9 of the Company’s Registration
Statement on Form S-1 available at https://www.sec.gov/Archives/edgar/data/1708341/000168316819002657/brac_ex1009.htm. To the Company’s
knowledge, (i) Simon Equity Development, LLC held 758,252 shares of Common Stock of the Company as of September 11, 2019, and the
purchase price paid therefor by Simon Equity Development, LLC was $5,000,000, (ii) other than the foregoing Share Purchase Agreement,
Simon Equity Development, LLC holds or held no options, warrants or other rights to acquire any shares of the Company’s capital
stock or any other securities of the Company, and (iii) other than Simon Equity Development, LLC, neither Simon Property Group,
Inc. nor any of its subsidiaries holds or held any shares of the Company’s capital stock or any other securities of the Company
or any options, warrants or other rights to acquire any such shares or securities.

 

5.               
Disclosure; Exchange Act Filings/Press Release/Public Announcement. Promptly after execution of this Agreement, the
Company will file a Current Report on Form 8-K (“Signing Form 8-K”) under the Exchange Act reporting it in a
form agreed to by the parties hereto that contains all material information required by applicable law. The parties to this Agreement
shall reasonably cooperate with one another to cause the Signing Form 8-K, and any other disclosures related to the transactions
contemplated herein required by applicable law from time to time after the Effective Date, to be filed with the Commission. The
parties hereto shall work together in good faith and issue a mutually approved, joint press release regarding this Agreement and
the parties’ business relationship regarding the terms and conditions outlined herein within a reasonable time following
the Closing Date. Notwithstanding anything herein to the contrary, the Company will not communicate or disclose the Purchase Price
publicly (whether in a press release or other forms of public announcements) without the Purchaser’s prior written consent
(in Purchaser’s sole and absolute discretion), provided, however, that such restriction or limitation shall not prevent Company
from disclosing the Purchase Price in filings with the Commission or as otherwise required by applicable law.

 

6.               
Accounting Statements. In connection with Company’s obligations set forth in Section 4(e) above and
Exhibit A, within sixty (60) days following the opening of each Esports Venue (as defined herein) and, thereafter, within
thirty (30) days following the end of each calendar quarter until all of the Purchase Price has been used in accordance with Section
4(e) above and Exhibit A, as confirmed in writing by the Company and agreed to in writing by the Purchaser (the “Purchase
Price Depletion”), Company shall provide and/or deliver to Purchaser accounting statements that reasonably set forth
Company’s expenditures relating to the creation, building, management and/or on-going operations of each Esports Venue (the
“Accounting Statements”). Until the Purchase Price Depletion and upon reasonable advance notice from the Purchaser
(i.e., not less than ten (10) calendar days), the Company will allow the Purchaser and its representatives reasonable access to,
during normal business hours and without unreasonable interference with the operation of the business of the Company, materials
and information related to the Accounting Statements and the expenditures set forth therein as the Purchaser may reasonably request
(including, without limitation, any receipts of or agreements or statements of work related to such expenditures).

 

7.               
Confidentiality. Subject to Section 5 above, each of the parties hereto agrees to maintain in confidence the
terms of this Agreement as well as any other information which is or should be reasonably understood to be confidential, including,
but not limited to, business plans, financial results, methods and business practices, sales and projections, except as may otherwise
be required by law, or as is generally known to the public or as may be required to be disclosed to investors or potential investors
or lenders or potential lenders to the disclosing Party. Each of the parties hereto agrees to limit access to any and all confidential
information to such of their respective employees or representatives as reasonably required for the purpose of performing their
respective obligations hereunder.

 

8.               
Insider Trader Policy. The Purchaser acknowledges that the Company maintains an Insider Trading Policy (the “Insider
Trading Policy”), and the Purchaser agrees to abide by the Insider Trading Policy, to the extent applicable and to the
extent a complete copy of which is provided to the Purchaser prior to the Closing Date. The Company shall provide the Purchaser
with a complete copy of the Insider Trading Policy prior to the Closing Date.

 

9.               
Entire Agreement; Amendment. This Agreement and the Escrow Agreement constitute the entire agreement between the
parties and supersedes any prior understandings, agreements or representations by or among the parties, or any of them, written
or oral, with respect to the subject matter hereof. This Agreement may be amended or modified only by written instrument signed
by all parties hereto. The headings in this Agreement are for convenience of reference only and shall not alter or otherwise affect
the meaning hereof.

 

 

 

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10.            
Governing Law. This Agreement shall be governed by the laws of the State of Delaware applicable to contracts wholly
executed and performed therein. The parties agree that any dispute related to this Agreement shall exclusively be held in a venue
in any court of competent jurisdiction in the State of Delaware, and the parties submit to the jurisdiction thereof.

 

11.            
Fees and Expenses. Each party shall pay their own fees and expenses incurred in connection with such party’s
consideration and discussion or negotiation of this Agreement and any additional agreements related thereto, including all legal,
accounting and financial advisory fees and expenses; provided that each party shall pay fifty percent (50%) of any fees owed to
or amounts charged by the Escrow Agent for the escrow services provided pursuant to this Agreement and the Escrow Agreement.

 

12.            
Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute
one and the same agreement. Delivery of an executed signature page by facsimile or other electronic transmission shall be effective
as delivery of a manually signed counterpart of this Agreement.

 

13.            
Indemnification. Subject to Section 2, each party hereto agrees to indemnify and hold harmless the other party
and their respective officers, directors, partners, shareholders, affiliates and related entities, employees, advisors and agents,
from and against any Losses arising out of, or in any way connected with (a) the negligence, misconduct or culpable actions or
omissions of such party in connection with the performance of its obligations under this Agreement; and (b) a breach of any provision
hereof (provided, however, that the indemnifying party shall be given prompt written notice of any such action or claim). This
provision shall survive any termination of this Agreement.

 

14.            
Remedies. Each of the parties hereto acknowledges and agrees that, in the event of any breach of any covenant or
agreement contained in this Agreement by the other party, money damages may be inadequate with respect to any such breach and the
non-breaching party may have no adequate remedy at law. It is accordingly agreed that each of the parties hereto shall be entitled,
in addition to any other remedy to which they may be entitled at law or in equity, to seek injunctive relief and/or to compel specific
performance to prevent breaches by the other party hereto of any covenant or agreement of such other party contained in this Agreement.

 

15.            
Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective legal representatives, successors and permitted assigns. This Agreement shall not be assigned by either party
without the prior written consent of the other party hereto, not to be unreasonably withheld, provided, however, that either party
may assign its rights and/or obligations to any entity controlled by, controlling or under common control with such party or to
any corporate successor thereto.

 

16.            
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all
such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment
of the agreements herein contained.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the Effective Date.

 

	 	
        BPR CUMULUS LLC

         

        By: BPR OP, LP, its managing member

         

        By: GGP Real Estate Holding II, Inc., its general
        partner

         

        By:      /s/ Tyler Steel

         

        Name:      Tyler Steel

         

        Title: Authorized Signatory

         

        Address: 350 North Orleans, Suite 300

                          Chicago, Illinois 60654

         

         

	 	
         

        ALLIED ESPORTS ENTERTAINMENT, INC.

         

        By:   /s/ Frank Ng

         

        Name:    Frank Ng

         

        Title:   Chief Executive Officer

         

        Address: 17877 Von Karman Ave, Suite 300

                          Irvine, California 92614

         

 

 

 

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EXHIBIT A

 

		1.	The Purchase Price will be utilized solely as set forth in this Exhibit A and as otherwise mutually agreed upon in writing
by the parties hereto (e.g., electronically or otherwise, including, without limitation, e-mail confirmation). The Company covenants
and agrees that the Purchase Price shall be spent solely on the following (unless otherwise mutually agreed upon in writing by
the parties hereto (e.g., electronically or otherwise, including, without limitation, e-mail confirmation)):

 

		a.	The development and operation of two (2) Esports Venues (as defined below) at malls owned and/or operated by the Purchaser
or any of its affiliates (each, a “Brookfield Properties Mall” and collectively, the “Brookfield Properties
Malls”) as further described below in this Exhibit A, provided however that the first location of the Esports
Venues shall be at the First Colony Mall in Sugar Land, Texas (the “First Colony Mall”), and the locations of
the other Esports Venues shall be mutually agreed upon in writing by the parties hereto (e.g., electronically or otherwise, including,
without limitation, e-mail confirmation); and

 

		b.	Such other items as the Parties may mutually agree upon in writing following the Effective Date; provided, however, that the
Company, or its subsidiaries, will not spend the Purchase Price on (i) utilizing or deploying its Hyper Esports Truck, a state-of-the-art
mobile esports arena that contains full esports event and production capability, including, without limitation, crowd-facing LED
display, PCs and player stations, and VIP lounge, to conduct mobile esports gaming tournaments, broadcasts, and events (the “HyperX
Esports Truck”), to create, produce, and execute esports events at any Brookfield Properties Mall; (ii) any expenses
incurred by the Company or its subsidiaries pursuant to its obligations under Exhibit B to this Agreement, and (iii) leasing
any space on any Brookfield Properties Mall (the “Exclusions”).

 

		2.	The Company, or one of its subsidiaries, will develop integrated esports experience venues at mutually agreed upon Brookfield
Properties Malls that will include a dedicated gaming space and production capabilities to attract and to activate esports and
other emerging live events at such Brookfield Properties Malls (each, an “Esports Venue” and collectively, the
“Esports Venues”). For the avoidance of doubt, the Company will create at least two (2) Esports Venues as part
of this initial phase of the joint project undertaken by the parties hereto. In connection with the foregoing and subject to the
Exclusions, the parties acknowledge and agree that the Purchase Price will be utilized for mall improvements and on-going operations
in connection with the build-out and management of the Esports Venues at the First Colony Mall and other mutually agreed upon Brookfield
Properties Malls. Within three (3) months following the Closing Date and notwithstanding any other provision of this Agreement,
the parties will enter into the First Esports Venue Lease at the First Colony Mall (the terms of which shall be commercially reasonable),
and within twelve (12) months following the Closing Date and notwithstanding any other provision of this Agreement, the parties
will mutually agree upon in writing the location of the second Esports Venue and will enter into the Second Esports Venue Lease
(the terms of which shall be commercially reasonable). To the extent that Company does not create at least two (2) Esports Venues
as part of this initial phase of the joint project undertaken by the parties hereto, and provided that Purchaser is not in breach
of its obligations related thereto or otherwise under this Agreement, Company acknowledges and agrees that such inability to create
at least two (2) Esports Venues shall constitute a material breach of this Agreement and Purchaser shall have the right to pursue
all available legal and equitable remedies against Company. Each party shall use its good faith, commercially reasonable efforts
to agree upon the terms of each lease, which terms shall be commercially reasonable.

 

		3.	The Company acknowledges and agrees that as it considers developing additional esports venues similar to the Esports Venues,
it will give consideration to trade areas or locations where Purchaser has Brookfield Properties Malls. Further, in connection
with the foregoing and prior to June 30, 2021, the Company will not open esports venues similar to the Esports Venues at any Non-owned
and/or Operated Brookfield Properties Mall in the United States without Purchaser’s prior written approval, provided, however,
that the above restriction shall not apply to any agreement that the Company (or one of its affiliates or related entities) enters
into with (i) Simon Equity Development, LLC and/or its affiliates or related entities, and/or (ii) any esports facility or esports
venue similar to the Esports Venues owned and/or operated by third parties that are as of the Closing Date (or will be following
the Closing Date) members of the Company’s, or any of its affiliate’s, affiliate program property network. A “Non-owned
and/or Operated Brookfield Properties Mall” shall mean any mall or shopping center with at least 300,000 square feet
of gross leasable retail area that is not owned or operated by Purchaser or any of its affiliates.

 

 

[END OF EXHIBIT A]

 

 

 

    	 	7	 

     

    

 

 

 

EXHIBIT B

 

In connection with the HyperX Esports Truck Events, each party
hereby grants to the other party the necessary rights to complete the activities related thereto and each party shall complete
the services and/or satisfy the corresponding obligations as follows: 

 

A.     
The Company will provide to Purchaser and/or complete the following services:

 

		1.	HyperX Esports Truck;
		2.	Operations team to coordinate and execute HyperX Esports Truck physical arrival, including timely set up, breakdown, and departure
from the HyperX Esports Truck Event;
		3.	Operations team to coordinate all permits, installation of power and internet, and other on-site operational elements as needed;
		4.	Activation production staff, including graphics and audio;
		5.	One (1) esports event host, MC, or caster;
		6.	One (1) on-site executive, event producer, or tour manager;
		7.	One (1) stage manager to deal with technical operations;
		8.	One (1) technical director;
		9.	One (1) stage assistant;
		10.	VIP rooftop decor (e.g., aluminum tables and chairs, wicker furniture set, and umbrellas); and
		11.	Promotion through the Company’s or its subsidiaries’ social media and streaming channels (if applicable and/or
available).

 

 B.      Purchaser will provide
to the Company and/or complete the following services:

 

		1.	Footprint for HyperX Esports Truck experience, including area for HyperX Esports Truck, audience, and fan interaction;
		2.	At least forty-eight (48) hours of set up time for the HyperX Esports Truck prior to each HyperX Esports Truck Event;
		3.	24-hour hard line power for the HyperX Esports Truck to specification at adequate levels;
		4.	Space and access to the HyperX Esports Truck Event amenities and support;
		5.	Internet access with appropriate speeds to specification in line with the HyperX Esports Truck Event needs or requirements;
		6.	Overnight dedicated security for the HyperX Esports Truck;
		7.	Event security to help with crowd management at HyperX Esports Truck Events and stage lines and immediately surrounding areas;
		8.	Additional VIP decor items (including, without limitation, pillows, candles, and bar);
		9.	All supporting event items, including, without limitation, tent, tables, skirting, chairs, space heaters, stanchions, and related
items;
		10.	Additional support staff as needed; and
		11.	Event credentials and parking for the Company’s staff, freelancers and esports celebrities (if applicable).

 

[END OF EXHIBIT B]

 

 

 

    	 	8Exhibit
10.2

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (the “Agreement”) is made as of December 26, 2019, by and among ScoutCam
Ltd., an Israeli company (the “Company”), Intellisense Solutions, Inc., a corporation incorporated under the
laws of Nevada (the “Parent”) and the persons and entities listed on Exhibit A attached hereto (each
an “Investor” and collectively the “Investors”).

 

WHEREAS,
simultaneously with the execution and delivery of this Agreement, and as a condition and inducement to the Investors’ willingness
to enter into this Agreement, the Parent is entering into a Securities Exchange Agreement (the “SEA”) with
Medigus Ltd., an Israeli company (“Medigus”), pursuant to which the Company shall, immediately prior to the
closing of this Agreement (the “SEA Closing”), become a subsidiary of the Parent by effecting a securities
exchange, upon the terms and conditions set forth in the SEA (the “Securities Exchange”);

 

WHEREAS,
the Parent desires to issue and sell to the Investors, and the Investors desire to purchase from the Parent, upon the terms and
conditions stated in this Agreement, for an aggregate purchase price of up to US$3.3 million (the “Purchase Price”),
up to 3,413,312 units (the “Units”), each Unit consists of (i) two shares of the Parent’s common
stock, par value US$0.001 per share (the “Common Stock” and the “Purchased Shares”, respectively);
and (ii) (a) one warrant to purchase one share of Common Stock with an exercise price representing a pre-money valuation of the
Parent of US$16,000,000 immediately following the SEA Closing, for a period of twelve (12) months (“Warrant A”),
and (b) two warrants to purchase one share of Common Stock with an exercise price, representing a pre-money valuation of the Parent
of US$24,000,000 immediately following the SEA Closing, for a period of eighteen (18) months (“Warrant B”),
in the forms attached hereto as Appendixes A and B, respectively (collectively the “Warrants”, and together
with the Purchased Shares, the “Purchased Securities”), on the terms and conditions set forth in the Warrants;

 

WHEREAS,
pursuant to the terms of an Escrow Agreement, substantially in the form of Appendix C annexed hereto and made a part hereof,
and as further described herein, the Purchase Price otherwise to be paid by the Investors in connection with the Agreement shall
have deposited into an escrow account (the “Escrow Account”) immediately prior to the execution of this Agreement,
which Escrow Account shall be managed exclusively by an escrow agent as shall be mutually agreed upon by the parties hereto (the
“Escrow Agent”);

 

WHEREAS,
the Parent and the Investors desire to enter into a Registration Rights Agreement, substantially in the form of Appendix D
annexed hereto and made a part hereof (the “Registration Rights Agreement”), pursuant to which, among other
things, Parent will agree to provide certain registration rights to the Investors with respect to the Purchased Securities issued
under the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations promulgated
thereunder, and applicable state securities laws; and

 

WHEREAS,
the Investors desire to purchase and the Company desires to issue and sell to the Investors the Securities pursuant to the terms
and conditions more fully set forth in this Agreement.

 

NOW,
THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.
PURCHASE AND SALE OF SECURITIES.

 

1.1
Sale and Issuance of Securities. Subject to the SEA Closing, and the additional satisfaction of certain closing conditions
set forth in Section ‎5, 6 and 7 hereof at the Closing (as defined below), the Parent shall issue and sell to the Investors,
and such Investors shall purchase, severally and not jointly, from the Parent, according to the allocation set forth in Exhibit
A attached hereto, an aggregate of up to 3,413,312 Units at a purchase price of US$0.968 per each Unit (the
“Per Unit Price”), reflecting a pre-money valuation of the Parent of US$10,000,000 (ten million).

 

1.2
The capitalization table of the Parent, reflecting the issued and outstanding share capital of the Parent on a Fully Diluted Basis,
(i) immediately prior to the Closing and (ii) immediately following the Closing, assuming the investment of the Purchase Price
and the consummations of all material agreements pertinent to the Securities Exchange, is annexed hereto as Appendix F
(the “Capitalization Table”).

 

    	 	 	 

    	 

    

 

1.3
Closing. The consummation of the transactions contemplated hereby, including the purchase and sale of the Purchased Securities
(the “Closing”) shall take place remotely via the exchange of documents and signatures, on December 30,
2019, or at such other time and place as the Company and Investors representing a majority of the Purchase Price (the “Majority
Investors”) mutually agree upon (such designated time and place, the “Closing Date”). The Closing
shall be subject to the conditions of Section 5 and 7 below, which conditions shall be deemed to take place simultaneously and
no transaction described in such sections shall be deemed to have been completed or any document delivered until all such transactions
have been completed and all such required documents delivered.

 

1.4
Deferred Closing. During a period of 90 days following the Closing Date, the Parent may sell and issue, on the same terms
and conditions as those contained in this Agreement, at one or more closings (each a “Deferred Closing”), additional
Units , the “Additional Units”), in consideration per share equal to the Per Unit Price, to one or more investors
(the “Additional Investor(s)”) for an aggregate purchase price that shall not exceed US$300,000 (three hundred
thousand). As a condition to the issuance of such Additional Units, the Additional Investors shall become a party to this Agreement
by executing and delivering a counterpart signature page or a joinder to this Agreement in a form reasonably acceptable to the
Company. Exhibit A to this Agreement shall automatically be deemed to be updated to reflect the number of Additional Shares
purchased at each such Deferred Closing and the Additional Investors. Thereafter, for all purposes under Transaction Documents,
each Additional Investor shall be deemed to be an “Investor”, the “Additional Units” shall be deemed to
be “Units”, and the additional purchase price for the Additional Units shall be deemed to be part of the “Purchase
Price”. At each Deferred Closing, against payment by each Additional Investor, severally and not jointly, of its respective
purchase price with respect to each Additional Unit purchased by it, the Parent shall deliver to each such Additional Investor
a share certificate or book-entry confirmation representing such additional Shares and the Warrants, and register the additional
Shares and the Warrants in the Company’s Shareholders Register.

 

1.5
Restated Articles of Incorporation; Bylaws. The Parent shall adopt on or prior to the Closing the Amended and Restated
Articles of Incorporation and Bylaws, each substantially in the form of Appendix E1 and E2 annexed hereto and made
a part hereof (the “Restated Articles” and “Restated Bylaws”, respectively).

 

1.6
Closing Deliverables.

 

(a)
At the Closing, the Parent shall deliver to the Investors:

 

(i)
True and correct copies of written resolutions, or minutes of a meeting, of the board of directors of the Parent (the “Board”),
approving and adopting in all respects the execution, delivery and performance by the Parent of this Agreement and the transactions
contemplated hereby, including, among others, (a) authorizing the issuance and sale of the Purchased Securities against payment
of the Purchase Price therefor; (b) approving the execution, delivery and performance by the Parent of all agreements contemplated
herein to which the Parent is party and any agreements, instruments or documents ancillary thereto; and (c) adopting the Restated
Bylaws as an amendment and restatement of the existing Bylaws of the Parent as in effect prior to the Closing, in the form attached
hereto as Schedule  ‎1.6(a)(i). 

 

(ii)
True and correct copies of written resolutions, or minutes of meeting, of the Parent’s stockholders approving and adopting
in all respects the execution, delivery and performance by the Parent of this Agreement and the transactions contemplated hereby,
including, among others, (a) the adoption of the Restated Articles; and (b) the approval of the execution, delivery and performance
by the Company of all agreements contemplated herein to which the Company is party and any agreements, instruments or documents
ancillary thereto, in the form attached hereto as Schedule  ‎1.6(a)(ii);

 

(iii)
Duly executed stock certificates or book-entry confirmations representing the respective Purchased Shares issued to each Investor
at the Closing in the name of each of such Investor, in the form attached hereto as Schedule ‎1.6(a)(iii);

 

(iv)
The Warrants issued to each Investor at the Closing in the name of each of such Investor; and

 

    	 	 	 

    	 

    

 

(v)
A certificate duly executed by an executive officer of the Parent as of the Closing stating that the conditions specified in Section
‎5 have been satisfied, in the form attached hereto as Schedule ‎1.6(a)(v).

 

1.7
Purchase Price. Upon the execution of this Agreement, each Investor shall, severally and not jointly, transfer to the Escrow
Agent, as further specified in Section 1.8 of this Agreement, its respective portion of the Purchase Price by wire transfer of
immediately available funds according to the Escrow Agent’s wire instructions.

 

1.8
Escrow Fund. Simultaneously with the execution of this Agreement, the Company, the Parent and Investors shall enter into
an Escrow Agreement with the Escrow Agent, substantially in the form of Appendix C attached hereto. Pursuant to the terms
of the Escrow Agreement, the Investors shall deposit the Purchase Price into the Escrow Account, which account is to be managed
exclusively by the Escrow Agent. Distributions of the Purchase Price from the Escrow Account shall be governed by the terms and
conditions of the Escrow Agreement. If upon February 28, 2020 (the “Investment Termination Date”), the Company
and the Parent have not consummated the closing of the SEA, this Agreement shall terminate and the Purchase Price shall be returned
in full to the Investors immediately upon the Investment Termination Date and without any additional notice or action on the part
of the Investors.

 

2.
REPRESENTATIONS AND WARRANTIES OF THE PARENT.

 

The
Parent hereby represents and warrants to each Investor that, except as set forth on the Disclosure Schedule delivered on the date
hereof (the “Disclosure Schedule”), and as annexed hereto as Appendix G, which exceptions shall be deemed
to be part of the representations and warranties made hereunder, the following representations are true, correct and complete
as of the date hereof and as of the Closing (as if made on the Closing Date); except, in each case, as to such representations
and warranties that address matters as of a particular date, which are true, correct and complete only as of such date. The Disclosure
Schedule shall be arranged in sections and subsections corresponding to the numbered and lettered sections and subsections contained
in this Section ‎2, and the information set forth in any one in any section or subsection of the Disclosure Schedule shall
apply to and qualify (a) the representation and warranty set forth in this Agreement to which it corresponds, and (b) whether
or not an explicit reference or cross-reference is made, each other representation and warranty set forth in this Agreement for
which it is reasonably apparent on its face that such information is relevant to such other section.

 

In
this Agreement, “Material Adverse Effect” means a material and adverse effect on the assets, properties, conditions
(financial or otherwise), operating results or business of the Parent, as currently conducted.

 

2.1
Organization. The Parent is a corporation duly organized and validly existing under the laws of the State of Nevada, and
is currently in good standing in accordance with the Office of the Secretary of State of Nevada.

 

2.2
Capitalization.

 

(a)
The authorized stock capital of the Parent will be on or immediately following to the SEA Closing, as set forth in the Restated
Articles, and such number of Common Stock as set forth in the Capitalization Table are or shall be (immediately following the
SEA Closing) issued and outstanding.

 

(b)
Prior to the SEA Closing, the Board shall reserve 4,626,619 shares of Common Stock prior to the SEA Closing for issuance of, and
grant of options or other equity awards exercisable into, Common Stock to directors, officers, employees, consultants and service
providers of the Parent or its subsidiaries (the “ESOP Pool”).

 

(c)
The issued and outstanding shares of the Parent were duly and validly authorized and issued, fully paid and non-assessable, and
offered and issued in compliance with the provisions of the Parent’s Articles of Incorporation as in effect at the time
of each such issuance and in compliance with all applicable corporate and securities laws.

 

    	 	 	 

    	 

    

 

(d)
Immediately prior to the SEA Closing, no shares, options, warrants, rights (including conversion, preemptive rights, rights of
first refusal or similar rights) or agreements for the purchase from the Parent of any of its stock capital, or any securities
convertible into or exchangeable for stock of the Parent shall be outstanding, other than as set forth in Section ‎2.2(d)
of the Disclosure Schedule, or that could require the Parent to issue, sell, transfer or otherwise cause to be outstanding any
of the Parent’s stock capital or securities convertible or exercisable into shares thereof. 

 

(e)
Immediately prior to the SEA Closing, no option, security or other equity award convertible or exercisable into stock of the Parent
shall contain a provision for acceleration of vesting (or lapse of a repurchase right) or other changes in the vesting provisions
or other terms of such option, security or other equity award upon the occurrence of any event or combination of events, other
than as set forth in Section 2.2(e)‎ of the Disclosure Schedule. No share, option, security or other equity award convertible
or exercisable into shares of the Parent is subject to repurchase or redemption (contingent or otherwise) by the Parent, and the
Parent has not repurchased or redeemed any of the Parent’s shares of stock, options, security or other equity awards. 

 

(f)
The Parent has not declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or
series of its stock capital.

 

2.3
Authorization. All corporate action on the part of the Parent, its directors and shareholders, necessary for the authorization,
execution and delivery of this Agreement and the other agreements, instruments or documents entered into in connection with this
Agreement and to which the Parent is a party (collectively, the “Transaction Documents”) and for the performance
of all obligations of the Parent under the Transaction Documents in accordance with their terms has been taken or will be taken
prior to the Closing. The Transaction Documents, when executed and delivered by the Parent, and assuming the due authorization,
execution and delivery by the other parties hereto and thereto, constitute valid and binding obligations of the Parent, enforceable
against the Parent in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other
equitable remedies.

 

2.4
Valid Issuance. The Purchased Securities being or that may be issued to the Investors hereunder, when issued, sold and
delivered in accordance with the terms of this Agreement for the consideration expressed herein, shall be duly and validly issued,
fully paid, and non-assessable, issued in compliance with all applicable state securities laws, and free and clear of liens, pledges,
charges, encumbrances or other restrictions on transfer of any kind (including, without limitation, preemptive rights), other
than restrictions on transfer under this Agreement, the Restated Articles, the Restated Bylaws and under applicable securities
laws and other than liens or encumbrances created by or imposed on each Investor as to itself. The rights, privileges and preferences
of the Purchased Securities are as stated in the Restated Articles and Restated Bylaws, as may be amended from time to time in
accordance with its terms.

 

2.5
No Conflict; Consents. The execution, delivery and performance of the Transaction Documents and the consummation of the
transactions contemplated by the Transaction Documents do not and will not (a) result in any conflict with, or a breach or violation,
with or without the passage of time and giving of notice, of any of the terms, conditions or provisions of, or give rise to rights
to others (including rights of termination, cancellation or acceleration) under: (i) Parent’s Articles of Incorporation
and Bylaws, which are currently in effect, and the Restated Articles and Restated Bylaws; (ii) any judgment, injunction, order,
writ, decree or ruling of any court or governmental authority, domestic or foreign, to which the Parent is subject; (iii) any
material contract or agreement, lease, license or commitment to which the Parent is a party or by which it is bound; or (iv) any
applicable law; (b) result in the creation of any lien, charge or encumbrance upon any asset of the Parent or the suspension,
revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Parent; or (c) require the consent,
approval or authorization of, registration, qualification or filing with, or notice to any person or any federal, state, local
or foreign governmental authority or regulatory authority or agency, on the part of the Parent, which has not heretofore been
obtained or made or will be obtained or made prior to Closing.

 

    	 	 	 

    	 

    

 

2.6
SEC Reports; Financial Statements; DTC Eligibility. The Parent has filed all reports, schedules, forms, statements and
other documents required to be filed by the Parent under the Securities Act and the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) for the one-year period preceding the date hereof (collectively, the “SEC Reports”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with Generally Accepted Accounting Principles in the U.S. (“US GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by US GAAP, and fairly present in all material respects the financial position of the Company as of and for the dates
thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments. The Common Stock is currently not DTC eligible.

 

2.7
Continued Quotation. The Parent is, and has no reason to believe that it will not in the foreseeable future continue to
be, in compliance with all such quotation and maintenance requirements of the “Pink Sheets” published and maintained
by OTC Markets Group, Inc., and shall make commercial best efforts to maintain such compliance.

 

2.8
Effect of the Securities Exchange. Pursuant to the Securities Exchange, the Company shall become the wholly-owned subsidiary
of the Parent upon the SEA Closing.

 

2.9
Board of Directors. Immediately prior to the Closing, the Board shall consist of 3 (three) or 5 (five) members, majority)
of whom shall be designated by the Company. One or two (2) additional members of the Board shall be professional directors.

 

2.10
Disclosure. No representation or warranty of the Parent contained in this Agreement, as qualified by the Disclosure Schedule,
and no certificate furnished or to be furnished to Investors at the Closing contains any untrue statement of a material fact or,
to the Parent’s knowledge, omits to state a material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances under which they were made.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company hereby represents and warrants to each Investor that, except as set forth on the Disclosure Schedule delivered on the
date hereof (the “Disclosure Schedule”), and as annexed hereto as Appendix H, which exceptions shall
be deemed to be part of the representations and warranties made hereunder, the following representations are true, correct and
complete as of the date hereof and as of the Closing (as if made on the Closing Date); except, in each case, as to such representations
and warranties that address matters as of a particular date, which are true, correct and complete only as of such date. The Disclosure
Schedule shall be arranged in sections and subsections corresponding to the numbered and lettered sections and subsections contained
in this Section ‎2, and the information set forth in any one in any section or subsection of the Disclosure Schedule shall
apply to and qualify (a) the representation and warranty set forth in this Agreement to which it corresponds, and (b) whether
or not an explicit reference or cross-reference is made, each other representation and warranty set forth in this Agreement for
which it is reasonably apparent on its face that such information is relevant to such other section.

 

In
this Agreement, “Material Adverse Effect” means a material and adverse effect on the assets, properties, conditions
(financial or otherwise), operating results or business of the Company, as currently conducted.

 

    	 	 	 

    	 

    

 

3.1
Organization. The Company is a company duly organized and validly existing under the laws of the State of Israel, is not
a “breaching company” (within the meaning of Section 362.A of the Israeli Companies Law) and has all requisite corporate
power and authority to carry on its business as currently conducted.

 

3.2
Authorization. All corporate action on the part of the Company, its directors and shareholders, necessary for the authorization,
execution and delivery of this Agreement and the other agreements, instruments or documents entered into in connection with this
Agreement and to which the Company is a party (collectively, the “Transaction Documents”) and for the performance
of all obligations of the Company under the Transaction Documents in accordance with their terms has been taken or will be taken
prior to the Closing. The Transaction Documents, when executed and delivered by the Company, and assuming the due authorization,
execution and delivery by the other parties hereto and thereto, constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other
equitable remedies.

 

3.3
No Conflict; Consents. The execution, delivery and performance of the Transaction Documents and the consummation of the
transactions contemplated by the Transaction Documents do not and will not (a) result in any conflict with, or a breach or violation,
with or without the passage of time and giving of notice, of any of the terms, conditions or provisions of, or give rise to rights
to others (including rights of termination, cancellation or acceleration) under: (i) the Company’s Articles of Association
(the “Company’s Articles”); (ii) any judgment, injunction, order, writ, decree or ruling of any court
or governmental authority, domestic or foreign, to which the Company is subject; (iii) any material contract or agreement, lease,
license or commitment to which the Company is a party or by which it is bound; or (iv) any applicable law; (b) result in the creation
of any lien, charge or encumbrance upon any asset of the Company or the suspension, revocation, forfeiture, or nonrenewal of any
material permit or license applicable to the Company; or (c) require the consent, approval or authorization of, registration,
qualification or filing with, or notice to any person or any federal, state, local or foreign governmental authority or regulatory
authority or agency, on the part of the Company, which has not heretofore been obtained or made or will be obtained or made prior
to Closing.

 

3.4
Directors; Officers. The directors, observers and officers of the Company are listed on Section ‎3.4 of the Disclosure
Schedule. Except as provided in Section 3.4 of the Disclosure Schedule, the Company has no agreement, obligation or commitments
with respect to the election of any individual to its Board or to the right to nominate an observer to the Board, and, to the
Company’s knowledge, there is no such agreement among the Company’s shareholders, except as stated in the Company’s
Articles. All agreements, commitments and understandings of the Company, whether written or oral, with respect to any compensation
to be provided to any of the Company’s directors, observers or officers have been fully disclosed in writing to the Investors
prior to the Closing.

 

3.5
Subsidiaries. The Company does not own or control, directly or indirectly, any interest or any other right in any other
corporation, association, or other business entity. The Company is not a participant in any joint venture, partnership, or similar
arrangement.

 

3.6
Compliance with Laws and Other Instruments. The Company is, and has been, in compliance, in all material respects, with
all applicable laws. The Company has not received any written notice of or been charged with the violation of any law and, to
Company’s knowledge, there is no threatened action or proceeding against the Company under any of such laws. The Company
is not in violation of or default under (i) any provisions of the Company’s Articles, or (ii) any order, writ, injunction,
decree or judgment of any court or any governmental department, commission or agency, domestic or foreign, to which it is subject
or by which it is bound. The Company has obtained, or has filed for and anticipates obtaining prior to the SEA Closing or shortly
thereafter, all franchises, permits, licenses, consents and any similar authorizations that are material to its business as currently
conducted under applicable law, and is in compliance, in all material respects, with such franchises, permits, licenses, consents
and similar authorizations. None of the Company’s products, intellectual property or operations is subject to any restriction
or limitation or requires a license or registration under applicable laws relating to marketing, export or import controls.

 

    	 	 	 

    	 

    

 

3.7
Financial Statements; No Undisclosed Liabilities.

 

(a)
The Company has no liabilities or obligations, contingent or otherwise, other than (i) liabilities incurred in the ordinary course
of business, which, individually and in the aggregate, do not exceed US$200,000; (ii) obligations under contracts and commitments
incurred in the ordinary course of business; and (iii) liabilities and obligations of a type or nature not required under GAAP
to be reflected in its financial statements, which, individually and in the aggregate do not exceed US$100,000.

 

(b)
The Company is not a guarantor or indemnitor of any debt or obligation of another, nor has the Company given any loan, security
or otherwise agreed to become liable for any obligation of any person. No person has given any guarantee of, or security for,
any obligation of the Company. The Company did not extend any loans or advances to any person, other than advances for expenses
to its employees in the ordinary course of business.

 

3.8
Assets and Properties. The Company has good and marketable title to all of the tangible or personal properties and assets
owned by the Company, which are material to the business of the Company as currently conducted, and such properties and assets
are free and clear of all mortgages, deeds of trust, liens, pledges, charges, security interests, conditional sale agreement,
loans and encumbrances, except for statutory liens for the payment of current taxes that are not yet delinquent and encumbrances
and liens that arise in the ordinary course of business and do not materially impair the Company’s ownership or use of such
property or assets. With respect to the tangible property and assets it leases, the Company is in compliance in all material respects
with such leases and, to its knowledge, holds a valid leasehold or license interest free of any liens, pledges, charges, security
interest, claims or encumbrances, other than those of the lessors of such property or assets. The Company does not own any real
property.

 

3.9
Intellectual Property. Terms used but not otherwise defined in this Section ‎3.9 shall have the meaning set forth in
Section ‎(e) below.

 

(a)
The Company owns or has the right to use, or believes it can acquire on commercially reasonable terms, sufficient legal rights
to all Company Intellectual Property without any known conflict with, or infringement of, the rights of others, including without
limitation the past and present employees and consultants and employers of the past and present employees and consultants of the
Company, free and clear of all liens, charges, claims and restrictions. To the Company’s knowledge, no product or service
marketed, sold or rendered (or proposed to be marketed, sold or rendered) by the Company violates any license or infringes any
intellectual property rights of any other person. Other than with respect to commercially available software products under standard
end-user object code license agreements or agreements providing for confidentiality of information entered into in the ordinary
course of business, the Company is not bound by or a party to any options, licenses or agreements of any kind with respect to
the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights and
processes of any other person. Other than non-exclusive license agreements in the Company’s standard form of license agreement,
which form was provided to the Investors, there are no outstanding options, licenses, agreements, claims, encumbrances or shared
ownership interests of any kind relating to the Company Intellectual Property. The Company is not obligated or under any liability
whatsoever (contingent or otherwise) to make any payments by way of royalties, fees or otherwise to any owner or licensee of,
or other claimant to, any patent, trademark, service mark, trade name, copyright or other intangible asset, with respect to the
use thereof or in connection with the conduct of its business as currently conducted and as currently proposed to be conducted.

 

(b)
Section  ‎3.9(b) of the Disclosure Schedule is a complete list of all (i) patents, trademarks, service marks, trade
names, copyrights, domain name, registration with respect to any of the Company Intellectual Property and any applications for
and under any of the foregoing; and (ii) unregistered trademark.

 

    	 	 	 

    	 

    

 

(c)
All of the Company’s employees and consultants, past and present, who were or are engaged in the development, invention,
discovery, programming or design of any Company Intellectual Property, have entered into written agreements with the Company assigning
to the Company all rights, title and interests in Company Intellectual Property developed, invented, programmed, designed, conceived
or reduced to practice (either alone or jointly with others) in the course of their employment or engagement, as the case may
be, or that relate to the Company’s business as currently conducted and as currently proposed to be conducted, and explicitly
waiving all non-assignable rights (including moral rights) and rights to receive royalties or compensation in connection therewith
(including, without limitation, under Section 134 of the Israeli Patent Law, 1967). Any and all Company Intellectual Property
which has been, is currently being or will be developed by any employee or consultant of the Company is and shall be the sole
property of the Company. The Company has taken all required security measures to protect the secrecy, confidentiality and value
of all the Company Intellectual Property, which measures are reasonable and customary in the industry in which the Company operates
and, to the Company’s knowledge, there has been no breach of security of the Company’s systems involving any such
information. To the Company’s knowledge, it will not be necessary to use any of the developments, ideas, inventions, trade
secrets, proprietary information or other intellectual property of any of its employees or consultants made prior to their employment
or engagement by the Company.

 

(d)
No funding or grants from, or facilities of, a governmental body or institution, university, college or other academic or educational
institution or research center, was used by the Company or on its behalf, or by any of its founders prior to the incorporation
of the Company, in the development of the Company Intellectual Property. Other than as set forth in Section ‎3.9‎(d)
of the Disclosure Schedule, to the knowledge of the Company, no current or former employee, consultant or independent contractor
of the Company, who is or was involved in, or who is contributing or contributed to the creation or development of any Company
Intellectual Property is or has performed services for or otherwise is or was under restrictions resulting from his or her relations
with any government, university, college or other academic or educational institution or research center, or organization whose
primary purpose is to create or foster the creation of Open Source during the time such employee, consultant or independent contractor
is or was so involved in, or contributing to the creation or development of any Company Intellectual Property.

 

(e)
Definitions. The following terms used in this Agreement shall have the meanings set forth below:

 

“Company
Intellectual Property” means all patents, patent applications, trademarks, trademark applications, service marks, service
mark applications, trade names, copyrights, trade secrets, know-how, inventions, designs, works of authorship, computer programs
and technical data, domain names, mask works, information and proprietary rights and processes, similar or other intellectual
property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, licenses and rights in,
to and under any of the foregoing, in any and all such cases that are owned or used by the Company in the conduct of the Company’s
business as currently conducted.

 

“knowledge”,
including the phrase “to the Company’s knowledge” (or similar phrases), when used in this Section ‎3.9
(Intellectual Property) shall mean the actual knowledge of the Company, without conducting any patent search, freedom to
operate, infringement, or any similar search.

 

3.10
Labor Matters.

 

(a)
The Company has complied, in all material respects, with all applicable employment laws, policies, procedures and agreements relating
to employment, and terms and conditions of employment. The Company has paid in full to all of its respective employees and consultants
all wages, salaries, commissions, bonuses, benefits and other compensation due and payable to such employees or consultants on
or prior to the date of this Agreement. The Company has complied in all material respects with the applicable laws relating to
the proper withholding and remittance to the proper tax and other authorities of all sums required to be withheld from employees
or persons deemed to be employees under applicable laws. To the Company’s knowledge, all persons classified by the Company
as consultants or contractors thereof are correctly classified as such and not as employees for any purpose. The Company’s
liability for any obligations to pay any amount of severance payment, pension, accrued vacation, and other social benefits and
contributions, under applicable law or contract, or any other payment of substantially the same nature, is fully funded by deposit
of funds in severance funds, pension funds, managers insurance policies or provident funds (and if not required to be so funded)
adequate provisions have been made in the Company’s Financial Statements.

 

    	 	 	 

    	 

    

 

(b)
The Company is not a party to, bound by or subject to, and no employee of the Company benefits from, any collective bargaining
agreement, collective labor agreement, extension orders (tzavei harchava) (other than extension orders that apply to all
employees in Israel generally), or other contract or arrangement with a labor union, trade union or other organization or body,
to provide benefits or working conditions beyond the minimum benefits and working conditions required by applicable law. No labor
union has requested or has sought to represent any of the employees, representatives or agents of the Company, nor is the Company
aware of any labor organization activity involving its employees. There is no strike or other labor dispute involving the Company
pending or, to the Company’s knowledge, threatened.

 

3.11
Taxes.

 

(a)
The Company was incorporated on January 3, 2019 and has yet to file any tax returns and reports (including information returns
and reports). Any and all taxes and other charges due by the Company to any local or foreign tax authorities (including, without
limitation, those due in respect of the properties, income, franchises, licenses, sales or payrolls) have been timely paid.

 

(b)
The Company has not made any elections pursuant to the Israeli Income Tax Ordinance [New Version], 1961. The Company is not subject
to any tax ruling nor has it ever applied to receive any tax determination or ruling.

 

3.12
Governmental Grants. The Company has not applied, obtained or received any grant, loan, incentives, benefits (including
tax benefits), subsidies or other assistance from any governmental or regulatory authority or any agency, or any international
or bilateral fund, institute or organization or public entities or authorities, other than from the Israeli Innovation Authority
(previously known as the Office of the Chief Scientist of Israel’s Ministry of Economy) as was assigned by Medigus, nor
is the Company an “approved enterprise”, “benefited enterprise” or “preferred enterprise”
within the meaning of the Israeli Encouragement of Capital Investments Law, 1959.

 

3.13
Litigation. There is no claim, action, suit, proceeding, arbitration, complaint, charge or, to the Company’s knowledge,
investigation pending, or, to the Company’s knowledge, currently threatened in writing against the Company, any of its properties,
or any officer, director or employee of the Company, including, without limitation, arising out of their employment or board relationship
with the Company or in their capacity as such, or that questions the validity of the Transaction Documents or the right of the
Company to enter into them, or to consummate the transactions contemplated by the Transaction Documents.

 

3.14
Insurance. The Company is covered by insurance with respect to its properties and business purchased by the insurance purchased
by Israeli Parent.

 

3.15
Effect of the Securities Exchange: Pursuant to the Securities Exchange, the Company shall become the wholly-owned subsidiary
of the Parent upon the SEA Closing.

 

3.16
Disclosure. No representation or warranty of the Company contained in this Agreement, as qualified by the Disclosure Schedule,
and no certificate furnished or to be furnished to Investors at the Closing contains any untrue statement of a material fact or,
to the Company’s knowledge, omits to state a material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances under which they were made.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE INVESTORS.

 

Each
of the Investors, severally and not jointly, hereby represents and warrants, with respect to itself only, that the following representations
are true, correct and complete as of the date hereof and as of the Closing (as if made on the Closing Date); except, in each case,
as to such representations and warranties that address matters as of a particular date, which are given only as of such date:

 

4.1
Authorization; Organization. The Investor is duly organized, validly existing and, if applicable, in good standing under
the laws of the jurisdiction in which it has been incorporated and has full power and authority to enter into the Transaction
Documents. The Transaction Documents to which the Investor is a party, when executed and delivered by the Investor, and assuming
the due authorization, execution and delivery by the other parties hereto and thereto, constitute valid and binding obligations
of the Investor, enforceable against the Investor in accordance with their respective terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or
affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, and (iii) to the extent the indemnification provisions contained
in the Rights Agreement, as may be limited by applicable securities laws.

 

    	 	 	 

    	 

    

 

4.2
No Conflict; Consents. The execution, delivery and performance by the Investor of the Transaction Documents to which it
is a party and the consummation of the transactions contemplated by such Transaction Documents do not and will not (a) result
in any conflict with, or a breach or violation, with or without the passage of time and giving of notice, of any of the terms,
conditions or provisions of, or give rise to rights to others (including rights of termination, cancellation or acceleration)
under: (i) the governing documents of the Investor; (ii) any judgment, injunction, order, writ, decree or ruling of any court
or governmental authority, domestic or foreign, to which the Investor is subject; (iii) any material contract or agreement, lease,
license or commitment to which the Investor is a party or by which it is bound; (iv) any applicable law; or (b) require the consent,
approval or authorization of, registration, qualification or filing with, or notice to any person or any federal, state, local
or foreign governmental authority or regulatory authority or agency, on the part of the Investor, which has not heretofore been
obtained or made or will be obtained or made prior to Closing.

 

4.3
Purchase Entirely for Own Account. The Purchased Securities will be acquired for investment for the Investor’s own
account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has
no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor does not presently
have any contract, undertaking, agreement or arrangement to sell, transfer or grant participation rights to any person with respect
to any of the Purchased Securities. The Investor has not been formed for the specific purpose of acquiring the Purchased Securities.

 

4.4
Disclosure of Information. The Investor has had an opportunity to discuss the Company’s business, operations, properties,
prospects, technology, plans, management, financial affairs and the terms and conditions of the offering of the Purchased Securities
with the Company’s management and has had an opportunity to review the Company’s facilities. The foregoing, however,
does not limit, modify or qualify the representations and warranties of the Company in Section ‎2 of this Agreement or the
right of the Investor to rely thereon. The Investor acknowledges that any projections provided (if any) by the Company are uncertain
in nature, and that some or all of the assumptions underlying such projections may not materialize or will vary significantly
from actual results.

 

4.5
Investment Experience; Accredited Investor; Non-U.S. Person. The Investor is an investor in securities of companies in
the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has
such knowledge and experience in financial or business matters that it is capable of evaluating and understanding the merits and
risks of the investment in the Purchased Securities. The Investor is either (i) an accredited investor as defined in Rule 501(a)
of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or (ii) a
Non U.S. Person as defined under Regulation S promulgated under the Securities Act. To the extent that the Investor is a non U.S.
Person, such Investor (x) is not acquiring Purchased Securities for the account or benefit of any U.S. Person, (y) is not, at
the time of execution of this Agreement, and will not be, at the time of the Closing, in the United States and (z) is not a “distributor”
(as defined in Regulation S promulgated under the Securities Act).

 

4.6
Restricted Securities. The Purchased Securities have not been and will not be registered under the Securities Act or any
state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state
securities laws or unless an exemption from such registration requirements is available. Investor is aware that, except as set
forth in the Rights Agreement, the Company is under no obligation to effect any such registration or to file for or comply with
any exemption from registration. The sale and issuance of the Purchased Securities have not been registered under the Securities
Act by reason of a specific exemption from registration which depends upon, among other things, the accuracy of the Investor’s
representations as expressed herein.

 

    	 	 	 

    	 

    

 

4.7
Legends. The Purchased Securities, and (if applicable) any securities issued in respect of or exchange for the foregoing
may be notated with the following or a similar legend as well as other legends as may be required by applicable securities laws:
“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER OF SUCH SHARES MAY BE EFFECTED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

4.8
Exculpation among Investors. The Investor is not relying upon any other Investor in making its investment or decision to
invest in the Company. Neither of the other Investors nor the respective controlling persons, officers, directors, partners, agents,
employees or legal or other advisors of any such other Investors shall be liable to the Investor for any action heretofore taken
or omitted to be taken by any of them in connection with the purchase of the Purchased Securities.

 

5.
CONDITIONS OF INVESTORS’ OBLIGATIONS AT CLOSING.

 

The
obligations of each Investor to purchase the Purchased Securities at the Closing are subject to the fulfillment on or before the
Closing of each of the following conditions, unless otherwise waived in writing by the Majority Investors:

 

5.1
Representations and Warranties. The representations and warranties of the Company and the Parent contained in Sections
‎2 and 3 of this Agreement shall have been true in all respects on and as if made as of the Closing.

 

5.2
Performance. The Company and the Parent shall have individually performed and complied, in all respects, with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the
Closing.

 

5.3
Delivery of Documents. All of the documents to be delivered by the Company and/or the Parent pursuant to Section ‎1.6,
shall have been in a form as attached to this Agreement, or, if not attached, in a form and substance satisfactory to the Investors
and shall have been delivered to the Investors. 

 

5.4
Satisfaction of Closing Conditions under SEA: Each of the conditions to closing for the Securities Exchange, as shall be
further stipulated and expressed in the SEA, shall have been satisfied or waived in accordance with the provisions of the SEA.

 

6.
CONDITIONS OF THE PARENT’S OBLIGATIONS AT CLOSING.

 

The
obligations of the Parent to the Investors under this Agreement are subject to the fulfillment on or before the Closing, of each
of the following conditions, unless otherwise waived in writing by the Parent:

 

6.1
Representations and Warranties. The representations and warranties contained in Section 4 shall have been true in all respects
on and as if made as of the Closing.

 

6.2
Performance. Each of the Investors shall have performed and complied, in all respects, with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

6.3
Satisfaction of Closing Conditions under SEA: Each of the conditions to closing for the Securities Exchange, as shall be
further stipulated and expressed in the SEA, shall have been satisfied or waived in accordance with the provisions of the SEA.

 

    	 	 	 

    	 

    

 

7.
CONDITIONS OF THE COMPANY’S OBLIGATIONS AT CLOSING.

 

The
obligations of the Company to the Investors under this Agreement are subject to the fulfillment on or before the Closing, of each
of the following conditions, unless otherwise waived in writing by the Company:

 

7.1
Representations and Warranties. The representations and warranties contained in Section ‎4 shall have been true in
all respects on and as if made as of the Closing.

 

7.2
Performance. Each of the Investors shall have performed and complied, in all respects, with all agreements, obligations
and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

7.3
Satisfaction of Closing Conditions under SEA: Each of the conditions to closing for the Securities Exchange, as shall be
further stipulated and expressed in the SEA, shall have been satisfied in accordance with the provisions of the SEA.

 

8.
AFFIRMATIVE COVENANTS BY THE PARENT AND THE COMPANY.

 

8.1
Use of Proceeds. The Parent will use the Purchase Price for general working capital purposes.

 

8.2
Conduct of the Business between Signing and Closing. Except as otherwise expressly provided by this Agreement or with the
prior written consent of the Majority Investors (which consent shall not be unreasonably withheld or delayed), the Parent and
the Company shall, individually, (i) conduct its business in the ordinary course of business, consistent with prior practice;
(ii) comply with legal requirements applicable to the operation of its business and pay applicable taxes as due; (iii) maintain
its books, accounts and records in the ordinary course of business; and (iv) not take any other action that would result in a
breach of any of the representations, warranties or covenants made by the Parent or the Company in this Agreement or that would
adversely affect its ability to consummate the transactions contemplated by this Agreement.

 

9.
INDEMNIFICATION.

 

9.1
Effectiveness; Survival.

 

(a)
Each Investor has the right to fully rely upon all representations, warranties and covenants of the Parent and the Company, for
which the Parent shall be held responsible (the “Indemnitor”) contained in or made pursuant to this Agreement
and in the schedules attached hereto. Unless otherwise set forth in this Agreement, the representations and warranties of the
Parent and the Company contained in or made pursuant to this Agreement shall in no way be affected by any investigation or knowledge
of the subject matter thereof made by or on behalf of any Investor.

 

(b)
The representations and warranties of the Parent contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the Closing, until (1) in case of Sections ‎2.1 (Organization), ‎2.3
(Authorization) and ‎2.5 (No Conflict; Consents), until the expiration of the applicable statute of limitation
period; and (2) other than as set forth in clause (1) above, the 24th months anniversary of the Closing Date; in each
case, with respect to any theretofore un-asserted claims as set forth in clause (d) below;

 

(c)
The representations and warranties of the Company contained in or made pursuant to this Agreement shall survive the execution
and delivery of this Agreement and the Closing, until (1) in case of Section 3.9 (Intellectual Property), until the 30th
months anniversary of the Closing Date; (2) in case of Sections ‎3.1 (Organization), ‎3.2 (Authorization)
and ‎3.3 (No Conflict; Consents) (the representations and warranties referred to in this clause (2) and in clause
b(1) above, collectively, the “Fundamental Representations”), until the expiration of the applicable statute
of limitation period; and (3) other than as set forth in clause (1) and (2) above, the 24th months anniversary of the
Closing Date; in each case, with respect to any theretofore un-asserted claims as set forth in clause (d) below; 

 

(d)
In respect to Sections 9.1(b)-(c) above, no limitation shall apply to breach of any representation or warranty which constitutes
fraud or willful misrepresentation by the Parent or the Company (“Fraud”). The applicable survival period shall
be referred to, as applicable, as the “Claims Period”.

 

(e)
Except for Fraud, neither the Company nor the Parent shall have any liability with respect to any breach of representation and
warranty, unless a claim is made hereunder prior to the expiration of the Claims Period for such representation and warranty,
in which case such representation and warranty shall survive as to that claim until the claim has been finally resolved.

 

    	 	 	 

    	 

    

 

(f)
It is the intention of the parties hereto that the Claims Periods supersede any statute of limitations applicable to the representations
and warranties, and this Section ‎9.1 constitutes a separate written legally binding agreement among the parties hereto
in accordance with the provisions of Section 19 of the Israeli Limitation Law, 1958.

 

9.2
Indemnification.

 

(a)
Indemnifiable Losses. The Indemnitor shall indemnify each Investor (including its shareholders, limited and general partners
directors and officers) (each, an “Indemnitee”) against, and hold each Indemnitee harmless from all claims,
actions, suits, settlements, damages, expenses (including, reasonable legal costs and expenses), losses, or costs sustained or
incurred by such Indemnitees (collectively, “Losses”) resulting from, or arising out of, a breach or misrepresentations
of any the Indemnitor’s representations, warranties or covenants made in this Agreement, subject to the limitations in this
Section ‎9.

 

(b)
Limitations. The Indemnitee’s right for indemnification hereunder is subject to the following conditions and limitations,
notwithstanding anything to the contrary in this Agreement, but in to any other limitation or condition contained herein; provided,
however, no limitation shall apply to Fraud:

 

(i)
Other than in respect of the Fundamental Representations, no Indemnitor shall be liable for any Loss, unless and until the aggregate
of Losses equal or exceeds US$100,000, in which case indemnification shall be made from the first dollar amount.

 

(ii)
The Indemnitor’s liability shall be limited with respect to each Investor to the respective portion of Purchase Price of
such Investor at the Closing and each Indemnitee shall be entitled to receive a pro rata share of the indemnifiable Loss, based
on the respective portion of such Investor of the Purchase Price as of the Closing.

 

(c)
Claims Notice; Third Party Claims. In the event that an Indemnitee wishes to assert a claim for indemnification hereunder
it shall give the Indemnitor a prompt written notice thereof (a “Claims Notice”), which shall describe in reasonable
detail the facts and circumstances upon which the asserted claim for indemnification is based and thereafter keep the Indemnitor
informed, in all material respects, with respect thereto. In the event that such Claims Notice results from a third party claim
against the Indemnitee, such Indemnitee shall promptly upon becoming aware of the commencement of proceedings by such third party
provide the Indemnitor with the Claims Notice and the Indemnitor shall have the right to assume the defense thereof (at Indemnitor’s
expense) with counsel mutually satisfactory to the parties; provided, however, that the Indemnitees shall have the right
to retain their own counsel, at the reasonable expense of the Indemnitor, and within the indemnification limitations herein, if
representation of all parties by the counsel retained by the Indemnitor would be inappropriate due to actual or potential differing
interests between the parties in such proceeding. Failure of the Indemnitees to give prompt notice or to keep it informed, as
provided herein, shall not relieve the Indemnitor of any of its obligations hereunder, except to the extent that the Indemnitor
is actually and materially prejudiced by such failure. The Indemnitor shall not be liable nor shall it be required to indemnify
or hold harmless the Indemnitee in connection with any settlement effected without its consent in writing, which shall not be
unreasonably withheld or delayed.

 

(d)
Sole Remedy. The indemnification provided by the Indemnitor hereunder and the enforcement of such indemnification shall
be the exclusive remedy available to the Indemnitees under this Agreement, other than for Fraud; provided that this provision
does not limit the right to seek specific performance, a restraining order or injunctive relief with respect to any provision
of this Agreement.

 

10.
MISCELLANEOUS.

 

10.1
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.

 

10.2
Entire Agreement. This Agreement (including the exhibits and schedules hereto), the Restated Articles and the Restated
Bylaws, and the other Transaction Documents constitute the full and entire understanding and agreement between the parties with
respect to the subject matter hereof, and supersede all prior agreements and understandings, both written and oral, among any
of the parties hereto, with respect to the subject matter hereof (with no concession being made as to the existence of any such
prior agreements or understandings).

 

    	 	 	 

    	 

    

 

10.3
Amendment; Waiver. Except as explicitly set forth herein, any term of this Agreement may be amended only with the written
consent of both the Parent and the Company, and the Majority Investors, provided that any amendment amending an Investor’s
respective portion of the Purchase Price to be invested at the Closing, or any amendment that has a disproportionate and adverse
effect on specific Investor(s) (as compared to other Investors), shall require also such specific Investor’s prior written
consent. The observance of any term hereof may be waived (either prospectively or retroactively and either generally or in a particular
instance) only by the prior written consent of the party against which enforcement of such waiver shall be sought (and in case
enforcement will be sought against the Investors, of the Majority Investors). Any amendment or waiver effected in accordance with
this Section ‎10.3 shall be binding upon the Investors and each transferee of the Purchased Securities, each future holder
of all such securities, the Parent, and the Company.

 

10.4
Assignment; Successors and Assigns. None of the rights, privileges or obligations set forth in, arising under, or created
by this Agreement may be assigned or transferred by an Investor, without the prior written consent of both the Parent and the
Company. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto any
rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

10.5
Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with to the laws of the State
of Israel, disregarding its conflict of laws rules. Any dispute arising under or in relation to this Agreement shall be resolved
exclusively in the competent court located in Tel Aviv-Jaffa, Israel and each of the parties hereby irrevocably submits to the
exclusive jurisdiction of such court. Each of the parties hereto (i) consents to submit itself to the exclusive jurisdiction of
the abovementioned courts in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement,
(ii) agrees that it shall not attempt to deny or defeat such jurisdiction by motion or other request for leave from the abovementioned
court, (iii) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement
in any court other than the abovementioned court, and (iv) irrevocably consents to service of process in the manner provided by
Section ‎10.6 or as otherwise provided by applicable law.

 

10.6
Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be
deemed effectively given upon the earlier of actual receipt, or (i) when delivered, if sent by personal delivery to the party
to be notified, (ii) when sent, if sent by electronic mail or facsimile (with electronic conformation of delivery) on a business
day and during normal business hours of the recipient, and otherwise on the first business day in the place of recipient, (iii)
five (5) business days after having been sent, if sent by registered or certified mail, return receipt requested, postage prepaid,
or (iv) one (1) business day after deposit with an internationally recognized overnight courier, freight prepaid, specifying next
business day delivery, with written confirmation of receipt. All communications shall be sent to the respective parties at their
address or contact details as set forth below, or to such address or contact details as subsequently modified by written notice
given in accordance with this Section 10.6 or, in the case of the Investors, as used for purposes of sending shareholders’
notices by the Parent or the Company.

 

	If
    to the Parent:	20
    Raoul Wallenberg St, Tel Aviv, Israel

	 	Attention	Oded
    Gilboa
	 	Telephone:	(480)
    659-6404
	 	E-mail:	odedgilboa@outlook.com

 

	If
    to the Company:	7A
    Industrial Park, P.O. Box 3030, Omer, 8496500, Israel 

	 	Attention:	Yaron
    Silberman
	 	Telephone:	+972-72-260-2200
	 	E-mail:	yaron.silberman@scoutcam.com

 

	 	with
    a mandatory copy to (which shall not constitute a notice):
	 	 
	 	Meitar
        Liquornik Geva Leshem Tal, Law Office

        16
Abba Hillel St., Ramat-Gan, Israel

	 	Attention:
    	Dr.
    Shachar Hadar, Adv.
	 	Telephone:	+972-3-6103961
	 	E-mail:	shacharh@meitar.com

	If
    to the Investors:	as
    set forth on the signature page hereto/Exhibit A

 

    	 	 	 

    	 

    

 

10.7
Delays or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing
to any party to this Agreement upon any breach or default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed
a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind
or character on the part of any party of 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 party to this Agreement,
shall be cumulative and not alternative.

 

10.8
Interpretation. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. Unless the context requires otherwise, the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety, and not to any particular provision hereof, and all references herein to Sections shall be
construed to refer to Sections to this Agreement. Reference to “governmental authorities” (or similar terms) shall
include any: (a) nation, principality, state, commonwealth, territory, county, municipality, district or other jurisdiction of
any nature, (b) federal, state, local, municipal, foreign or other government, (c) governmental, quasi-governmental or regulatory
body of any nature, including any governmental division, subdivision, department, agency, bureau, branch, office, commission,
council, board, instrumentality, organization, unit, or body, or (d) court, public or private arbitrator or other public tribunal.
Reference to a “person” shall mean any individual, corporation, partnership, limited liability company, firm, joint
venture, association, joint-stock company, trust, estate, unincorporated organization, governmental authority or other entity,
including, any party to this Agreement. Any reference to a “day” or a number of days (without explicit reference to
“business days”) shall be interpreted as a reference to a calendar day or number of calendar days, and if any action
is to be taken or given on or by a particular calendar day, and such calendar day is not a business day, then such action may
be deferred until the first business day thereafter (where “business day” shall mean any day on which banking institutions
in Tel-Aviv-Jaffa, Israel are generally open to the public for conducting business and are not required by law to close).

 

10.9
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement and the balance of the Agreement shall be enforceable in accordance with its terms and interpreted
so as to give effect, to the fullest extent consistent with and permitted by applicable law, to the meaning and intention of the
excluded provision.

 

10.10
Counterparts. This Agreement and any Transaction Document may be executed in one or more counterparts, all of which together
shall constitute one and the same instrument, binding and enforceable against the parties so executing the same; it being understood
that all parties need not sign the same counterpart. Counterparts may also be delivered by facsimile or email transmission (in
pdf format or the like, or signed with docusign, e-sign or any similar form of signature by electronic means) and any counterpart
so delivered shall be sufficient to bind the parties to this Agreement or any other Transaction Document, as an original.

 

-
Signature Pages Follow -

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this SECURITIES PURCHASE AGREEMENT to be executed as of the date first written above.

 

	 	COMPANY:
	 	 
	 	
	 	SCOUTCAM
    LTD.
	 	 
	 	By:	
	 	Name:	
	 	Title:	
	 	 	 
	 	PARENT
	 	 
	 	
	 	INTELLISENSE
    SOLUTIONS INC.
	 	 
	 	By:	
	 	Name:	
	 	Title:	         

 

[Company
and Parent Signature Page to Securities Purchase Agreement]

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this SECURITIES PURCHASE AGREEMENT as of the date first written above.

 

INVESTOR:

 

	Signature:
    	 	 
	 	 	 
	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 
	Address:
    	 	 
	 	 	 
	Investment
    Amount: 	 	 

 

[Investor
Signature Page to Securities Purchase Agreement]

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