Document:

ex1022.htm

    Exhibit 10.22

     

    
      
      

       

      
        
          
            
              	
                       

                      Term
      Sheet

                       

                    

            

          

        

      

       

      
        For the
purchase of Ordinary Shares in Pimi Agro CleanTech Ltd.

      

       

      
        
          
            
              
                
                  
                    
                      	
                              Issuer

                            	 
      	
                              Pimi Agro CleanTech
      Ltd., an Israeli private company no. 51-349712-3 ("Company"), active in the
      field of Agro Clean technology for pre and post harvest treatment,
      extension of shelf life of fruits and vegetables and for treatment of
      seeds against diseases.

                               

                            
	 
      	 
      	 
      
	
                              Securities
      to be Issued

                            	 
      	
                              226,642
      Ordinary Shares of 0.01 NIS nominal value each representing, after such
      issuance, 3.614% of the issued and outstanding share capital of the
      Company at the date of this Term Sheet, representing a pre money valuation
      of $ 8 Million to the Company ($1.325 per one share of 0.01
      NIS).

                               

                            
	 
      	 
      	 
      
	
                              Current
      Capitalization

                            	 
      	
                              The
      current capitalization of Company on a fully diluted and as converted
      basis, including all options and securities convertible into shares, is as
      set forth in Exhibit
      A hereto.

                            
	 
      	 
      	 
      
	
                              Investor

                            	 
      	
                              Earthbound LLC a Limited
      Liability Company registered in Delaware whose address is 126 Fifth Avenue
      4th Floor New York, NY 10011-5629 USA.

                            
	 
      	 
      	 
      
	
                              Investment
      Amount

                            	 
      	
                              A
      total sum of $ 300,000 (three hundred thousand US Dollar) ("Investment"). The
      investment will be paid to Pimi in tranches as follows: first tranche of
      $60K will be paid on the 15th
      of March 2009.  The balance of $240,000 will be paid will be
      paid in four installments as follows: $60,000 on the 15th June, 2009,
      $90,000 on 15th of September, 2009 and $90,000 on the 15th of January
      2010.The Investor will receive the allocated shares pro rata to the
      Investment against each installment of the Investment.

                               

                              In
      the event Pimi raises funds from a Venture Capital, or from Institutional
      Investor/s ("The Outside
      Investment"), or will issue shares in an IPO, for a valuation which
      is higher than $8 Million then the Investor will have
      the option to pay the balance of the Investment prior to the funding of
      the Outside Investment. If the Investor, in its sole discretion
      elects not to pay the balance of the Investment at such time, it will then
      lose its right to pay the balance of the Investment and will not receive
      the balance of the shares, and will be left only with those shares that
      have been already allocated.

                               

                            
	
                              Anti
      Dilution Rights

                            	 
      	
                              The
      Investor shall have full ratchet anti dilution rights in case of any
      investment which is based on a pre money valuation of the Company, which
      is less than $ 8 Millions within 24 months from the date of execution
      hereof, except for in case of rights issue to all of the Company
      shareholders and exchange of shares for shares in a public company whose
      shares are registered on the NASDAQ OTC B/B, and/or exercise of current
      options or ESOP.

                            
	 
      	 
      	 
      
	
                              Lock
      Up

                            	 
      	
                              The
      Investor agrees to be bound by the terms of a Lock Up Agreement or under
      Rule 144 Lock Up Regulation, as all other shareholders of the Company
      which will enable investment for registration of the Company shares on the
      NASDAQ OTC B/B or a swap of the Company's shares for shares in a shell
      company registered or which shall be registered on the NASDAQ OTC B/B
      ("The Shell
      Company"). This obligation shall prevail on shares of the Company,
      or shares of the Shell Company held by the Investor.

                            
	 
      	 
      	 
      
	
                              Exchange
      of shares

                            	 
      	
                              The
      Investor agrees that in case of swap of the Company's shares for a Shell
      Company shares registered on the NASDAQ or which will be registered on the
      NASDAQ OTC B/B he will exchange his shares for shares of the Shell
      Company, subject to pre ruling for the tax consequences of such swap. The
      Investor agrees to abide to the pre ruling terms and conditions. This
      obligation shall prevail on shares of the Company or shares of the Shell
      Company held by the Investor. The Investor agrees that if prior to the
      first payment of the investment the Company Ordinary Shares will be
      converted to the shares of the Shell Company then instead of Ordinary
      Shares in the Company the Investor will receive shares in the Shell
      Company at the rate of conversion which applies to the other holders of
      the Ordinary Shares of the Company.

                            
	 
      	 
      	 
      
	
                              Employees
      Share Option plan

                            	 
      	
                              The
      Company has adopted a reasonable Employee Shares Option Plan for 2008, and
      will be entitled to adopt another ESOP for 2009, or
  2010.

                            
	 
      	 
      	 
      
	
                              Confidentiality

                            	 
      	
                              Company
      and the Investor shall keep this Term Sheet, any related correspondence
      and all due diligence materials in strict confidence, and shall not issue
      any public statement or press release concerning this transaction without
      the other party’s prior written approval of the substance and form of any
      such statement or release, except as registered under the relevant law or
      regulations.

                               

                            

                    

                  

                

              

            

          

        

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      
        
          
            
              	
                      Power
      of attorney

                    	 
      	
                      The
      Investor will grant Eitan Shmueli, Advocate, or any other lawyer of Sadot
      Law Offices, a power of attorney to vote the Investor's shares in the
      general meetings of the shareholders of the Company and for the transfer
      of the shares for shares in a Shell Company registered on the NASDAQ OTC
      B/B, or which will be registered on the NASDAQ OTC B/B.

                    
	 
      	 
      	 
      
	
                      Representations
      and Warranties

                    	 
      	
                      The
      Company makes no representations or warranties to the Investor, and the
      Investor acknowledges that he is purchasing the Company shares on an AS IS
      basis and waives any future claim or demand in this
    respect.

                    
	 	 	 
	
                      Co
      Sale

                    	 
      	
                      Prior
      to the registration of the Company shares on the NASDAQ OTC B/B or a swap
      of the Company's shares for shares in a Shell Company registered on the
      NASDAQ OTC B/B, or which will be registered on the NASDAQ OTC B/B. The
      current shareholders of the Company shall have a right to participate
      pro-rata in transfer or sale of shares that the Investor may wish to
      execute.

                    
	 	 	 
	
                      Right
      of First Refusal

                    	 
      	
                      Prior
      to the registration of the Company shares on the NASDAQ OTC B/B or a swap
      of the Company's shares for shares in a Shell Company registered on the
      NASDAQ OTC B/B, or which will be registered on the NASDAQ OTC B/B. The
      current shareholders of the Company shall have the right of first refusal
      to purchase any shares of the Company offered for sale by the Investor to
      any person or entity, subject to standard exceptions for transfer to
      affiliates and family members.

                    
	 	 	 
	
                      Bring
      Along

                    	 
      	
                      In
      the event that a third party shall offer to purchase the outstanding
      shares of the Company and the holders of at least 51% of the
      then-outstanding shares of the Company (on an as-converted basis) accept
      such offer, then the remaining shareholders, including the Investor shall
      be required to accept such offer and sell all of their shares to the
      offeror on the same terms and conditions as the other
      shareholders.

                    

            

          

        

      

       

      IN
WITNESS THEREOF the parties have signed this Term Sheet as of
______

       

      
        
          
            	
                    The
      Company

                  	 
      	 
      	
                    The
      Investor

                  	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	 
      	 
      	 
      	 
      
	
                    Title:ex1023.htm

    Exhibit
10.23

     

    REF:
F:/Sadot/Carmel_Omdan_Nir/SM/25/02/2009

    [TRANSLATED
FROM THE HEBREW]

     

     

    
      	
               
      

            	
              AGREEMENT

            

    

     

    
      	
               
      

            	
              Made
      and signed this 24th day of February
2009

            

    

     

     

    
      	
              BETWEEN:

            	
              ALON
      CARMEL, ID 53408639

            

    

     

    
      	
               
      

            	
              of
      8383 Wilshire Boulevard, Suite 800, Beverly Hills, CA
  90211

            

    

     

    
      	
               
      

            	
              (hereinafter
      referred to as “Carmel”)

            

    

     

    
      	
               
      

            	
              of
      the first part

            

    

     

    
      	
              AND:

            	
              OMDAN
      CONSULTANCY & TRAINING LTD, PC
511468316

            

    

     

    
      	
               
      

            	
              of
      44 Nachal Amud Street, Ramat Hasharon
47204

            

    

     

    
      	
               
      

            	
              (hereinafter
      referred to as “Omdan”)

            

    

     

    
      	
               
      

            	
              of
      the second part

            

    

     

    
      	
              AND:

            	
              NIR
      ECOLOGY LTD, PC 511415382

            

    

     

    
      	
               
      

            	
              of
      17 Maaleh Avshalom Street, Kiriat Tivon
36094

            

    

     

    
      	
               
      

            	
              through
      the trustee, Ash-Dor Trust & Property Management Ltd, PC
      511620163

            

    

     

    
      	
               
      

            	
              (hereinafter
      referred to as “Nir
      Ecology”)

            

    

     

    
      	
               
      

            	
              of
      the third part

            

    

     

     

    
      	
              WHEREAS

            	
              Carmel
      is the owner and holder of 2,272,800 ordinary shares of NIS 0.01 n.v.
      each (hereinafter referred to as “ordinary
      shares”), 164,697 preferred shares of NIS 0.01 n.v. each
      (hereinafter referred to as “preferred
      shares”) and two management shares of NIS 1 n.v. each
      (hereinafter referred to as “management
      shares”), all of the company Pimi Agro Cleantech Ltd, PC 513497123
      (hereinafter referred to as “the
      company”);

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

     

     

    
      	
              AND
      WHEREAS

            	
              Omdan
      is the owner and holder of 808,554 ordinary shares of NIS 0.01 n.v.
      each, 8,708 preferred shares of NIS 0.01 n.v. each and one management
      share of NIS 1 n.v., all of the
company;

            

    

     

    
      	
              AND
      WHEREAS

            	
              Nir
      Ecology is the holder, through Ash-Dor Trust & Property Management
      Ltd, as trustee, of 1,440,000 ordinary shares of NIS 0.01 n.v. each
      and one management share of NIS 1 n.v., all of the
      company;

            

    

     

    
      	
              AND
      WHEREAS

            	
              the
      management shares carry voting rights in the company, while the ordinary
      shares and preferred shares do not carry any voting rights in the
      company;

            

    

     

    
      	
              AND
      WHEREAS

            	
              the
      company allotted one deciding share of NIS 0.01 n.v. to Adv. Amos
      Hachmon, which vests him with the right to participate in meetings of the
      company’s shareholders and/or board of directors, at the request of a
      shareholder or director, as the case may be, and in the case of a deadlock
      only, Adv. Hachmon shall decide the disputes (hereinafter referred to as
      “the
      deciding share”);

            

    

     

    
      	
              AND
      WHEREAS

            	
              the
      company intends issuing its shares on NASDAQ OTC B/B (hereinafter referred
      to as “the
      issue”) or transferring them to a company registered in the United
      States, whose shares shall be listed for trade on NASDAQ OTC
      B/B;

            

    

     

    
      	
              AND
      WHEREAS

            	
              for
      the purposes of the issue, the parties wish to alter the company’s capital
      structure, such that the ordinary shares and the preferred shares shall
      carry voting rights, each ordinary share of NIS 0.01 n.v. vesting one
      vote, each preferred share of NIS 0.01 n.v. vesting one vote, and the
      management shares and deciding share being converted into ordinary shares
      of NIS 0.01 n.v. each;

            

    

     

    
      	
              AND
      WHEREAS

            	
              the
      parties intend convening a special general meeting, the agenda of which
      shall include a change in the company’s capital structure as described
      above and below;

            

    

     

    
      	
               
      

            	
              ACCORDINGLY,
      IT IS AGREED BETWEEN THE PARTIES AS
      FOLLOWS:

            

    

     

    
      	
              1.

            	
              The
      parties shall act to convene a special general meeting of the holders of
      the company’s management shares, the agenda of which shall include the
      following matters:

            

    

     

    
      	
               
      

            	
              1.1

            	
              a
      change in the rights attached to the ordinary shares, such that they shall
      carry a voting right in the company, each ordinary share of NIS 0.01
      n.v. vesting the holder thereof with the right to be invited to the
      general meetings of the company’s shareholders and to one vote
      thereat;

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              1.2

            	
              a
      change in the rights attached to the preferred shares, such that they
      shall carry a voting right in the company, each preferred share of
      NIS 0.01 n.v. vesting the holder thereof with the right to be invited
      to the general meetings of the company’s shareholders and to one vote
      thereat;

            

    

     

    
      	
               
      

            	
              1.3

            	
              the
      consolidation of all the management shares in the company’s authorized,
      issued and paid up capital, and their re-division into 400 management
      shares of NIS 0.01 n.v. each;

            

    

     

    
      	
               
      

            	
              1.4

            	
              a
      change in the rights attached to the management shares in the company’s
      authorized, issued and paid up capital, such that the rights attached to
      the management shares shall be identical to the rights attached to the
      company’s ordinary shares after implementation of the provisions of clause
      1.1 above;

            

    

     

    
      	
               
      

            	
              1.5

            	
              the
      conversion of the deciding share in the company’s authorized, issued and
      paid up capital into one ordinary share of NIS 0.01
    n.v.

            

    

     

    
      	
              2.

            	
              The
      parties undertake to vote at the special general meeting in favour of the
      proposed resolutions as worded in appendix “A”
  hereto.

            

    

     

    
      	
              3.

            	
              On
      implementation of the change in the company’s capital structure, the
      parties undertake to vote in respect of all the shares held by them as
      described below:

            

    

     

    
      	
               
      

            	
              3.1

            	
              Omdan
      and Nir Ecology undertake to vote in respect of the ordinary shares and
      preferred shares held by them in favour of a proposed resolution pursuant
      whereto two directors nominated by Carmel will be
    appointed.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Nir
      Ecology and Carmel undertake to vote in respect of the ordinary shares and
      preferred shares held by them in favour of a proposed resolution pursuant
      whereto one director nominated by Omdan will be
  appointed.

            

    

     

    
      	
               
      

            	
              3.3

            	
              Omdan
      and Carmel undertake to vote in respect of the ordinary shares and
      preferred shares held by them in favour of a proposed resolution pursuant
      whereto one director nominated by Nir Ecology shall be
      appointed.

            

    

     

    
      	
               
      

            	
              3.4

            	
              If
      any of the parties’ shareholdings in the company fall below 7.5%, the
      other parties shall not be liable to vote for the director nominated by
      him to the company’s board of directors. If Carmel’s shareholdings fall
      below 15%, Omdan and Nir Ecology shall not be liable to vote, in respect
      of the ordinary shares and preferred shares held by them, in favour of a
      proposed resolution pursuant whereto two directors nominated by Carmel
      will be appointed, and so long as Carmel holds more than 7.5% of the
      company’s capital, they shall remain liable to vote for one director
      nominated by Carmel.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
               
      

            	
              3.5

            	
              The
      aforesaid is based on the assumption that the company’s board of directors
      shall consist of four directors appointed by the parties. In the event
      that the number of directors appointed by the parties is greater than
      four, the parties shall act so that each time an even number of additional
      directors is appointed, such that if the parties appoint six directors,
      the fifth director shall be appointed from amongst Carmel’s nominees, and
      Omdan and Nir Ecology undertake to vote for him and the sixth director
      shall be appointed from amongst Nir Ecology’s nominees, and Carmel and
      Omdan undertake to vote for him. If the parties appoint eight directors,
      the seventh director shall be appointed from amongst Carmel’s nominees,
      and Omdan and Nir Ecology shall vote for him, and the eighth director
      shall be appointed from amongst Omdan’s nominees, and Nir Ecology and
      Carmel shall vote for him.

            

    

     

    
      	
               
      

            	
              3.6

            	
              The
      parties agree that in the event that they are unable to unanimously agree
      on the identity of a nominated external director, they shall vote against
      at any meeting at which the appointment of an external director is put to
      the vote.

            

    

     

    
      	
              4.

            	
              The
      parties undertake that in the event of a transfer of shares to a third
      party, which is a related company of any of the parties and/or a relative
      of the parties hereto, as such expression is defined in the Securities
      Law, 5728-1968, the third party shall assume the transferor’s obligations
      pursuant hereto. “Related company” for the purposes of this clause means a
      company in which any of the parties directly and/or indirectly holds at
      least 25% of the capital.

            

    

     

    
      	
              5.

            	
              If
      by reason of the issue and for the purposes of its implementation, the
      parties transfer their shares to a company to be registered in the United
      States (hereinafter referred to as “the
      American company”), and instead of their shares they receive shares
      in the American company, the parties undertake that the provisions of this
      agreement shall apply to their shareholdings in the American company. If
      the issue does not take place within 12 months of the execution hereof,
      the parties shall act in order to return the company’s capital structure
      to its structure prior to the date of the execution
  hereof.

            

    

     

    
      	
              6.

            	
              It
      is agreed that the arrangements between the parties inter
      se or between any of the parties and the company pursuant to the
      shareholders’ agreement of 13th November 2005 and the amendment thereto of
      15th November 2006 as shareholders of the company shall apply mutatis
      mutandis to the parties as shareholders of the American
      company.

            

    

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	
              7.

            	
              Adv.
      Amos Hachmon, as arbitrator, shall decide any differences of opinion and
      disputes arising between the parties, or any of them, in connection with
      the interpretation or performance of this agreement. Omdan and Nir Ecology
      acknowledge that Adv. Hachmon serves as Carmel’s attorney and that they
      shall be precluded from raising any plea or request for the removal of
      Adv. Hachmon from his position as arbitrator on the grounds that he is
      Carmel’s attorney. If Adv. Hachmon refuses or not deem fit to serve as
      arbitrator, he shall appoint an arbitrator for the
  parties.

            

    

     

    
      	
               
      

            	
              The
      parties agree that this clause constitutes an arbitration agreement for
      all intents and purposes.

            

    

     

     

    
      	
               
      

            	
              As
      witness the hands of the parties:

            

    

     

    
      
        
          
            	(Signed
      and stamped)	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                     

                  	 	 	
                     

                  	 
	
                    
                      Alon
      Carmel

                    

                  	 	 	
                    
                      Omdan
      Consultancy & Training Ltd

                    

                  	 
	
                     

                  	 	 	
                     

                  	 

          

        

      

    

     

    
      
        
          
            
              	(Signed
      and stamped)	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                       

                    	 	 	
                       

                    	 
	
                      
                        Nir
      Ecology Ltd

                      

                    	 	 	
                       

                    	 
	
                       

                    	 	 	
                       

                    	 

            

          

        

      

    

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    We agree
to the above provisions of this agreement and undertake to act pursuant thereto
until the transfer to Nir Ecology of the shares held by us on trust for Nir
Ecology.

     

     

    
       

      
        
          
            
              
                	(Signed
      and stamped)	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                         

                      	 	 	
                         

                      	 
	
                        
                          Ash-Dor
      Trust & Property Management Ltd

                        

                      	 	 	
                         

                      	 
	
                         

                      	 	 	
                         

                      	 

              

            

          

        

      

       

    

    
      
        
          
            
              
                	
                        I
      certify the aforesaid:

                      	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                         

                      	 	 	
                         

                      	 
	
                        
                          Adv.
      Amos Hachmon

                        

                      	 	 	
                         

                      	 
	
                         

                      	 	 	
                         

                      	 

              

            

          

        

      

       

    

    I certify
that I have irrevocable powers of attorney from the company’s other shareholders
who are not parties to this agreement, save for Initiatives, allowing me to vote
in their stead at meetings of the company’s shareholders. I certify that I shall
use the aforesaid powers of attorney for the purpose of voting at meetings of
the company’s shareholders after prior arrangement with Alon Carmel, and with
his consent.

     

    
       

      
        
          
            
              
                
                  	
                          (Signed)

                        	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                           

                        	 	 	
                           

                        	 
	
                          
                            Eitan
      Shmueli, Adv.

                          

                        	 	 	
                           

                        	 
	
                           

                        	 	 	
                           

                        	 

                

                 

              

            

          

        

      

    

    The
shareholders listed in appendix “B” hereto confirm their consent to the
provisions of clause 5 of the agreement and that the provisions of this clause
shall also apply to them, through the signature of their attorney, Adv. Eitan
Shmueli. 

      
         

        
          
            
              
                
                  
                    	
                            (Signed)

                          	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                             

                          	 	 	
                             

                          	 
	
                            
                              Eitan
      Shmueli, Adv.

                            

                          	 	 	
                             

                          	 
	
                             

                          	 	 	
                             

                          	 

                  

                   

                   

                   

                  6

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