| 8.1.1 | In the event that the buyer did not meet its obligations while transferring funds to BGI or the trustee on the dates provided, it will be considered a fundamental breach of this agreement, and BGI may cancel the agreement immediately without any compensation to the buyer. |
| 8.1.2 | Failure of the buyer to meet its obligations for the payment dates set out in the agreement shall be considered a fundamental breach of this agreement and the Purchaser shall not be entitled to shares of the new company. |
| 8.1.3 | In the event that Israel 18 will announce that it respects the right of refusal, or alternatively a court ruling ordering Israel 18 to respect the right of refusal, and the buyer will not pay the full amount of the transaction at the time, it is determined that all funds paid to BGI or deposited with the trustee will constitute an agreed compensation for BGI, without proof of damage by BGI and BGI will have any other right against the purchaser in relation to non-compliance with obligations under the agreement. |
| 8.2 | Delay in meeting the commitments of the parties for 7 days will not be considered as a violation. |
The buyer is aware that there is a current lawsuit by BSD against Israel 18 which caused a partial pledge on the holdings of Israel 18 that include, among others, the right of first refusal shares and therefore Peretz has committed that in the event that exercising the right of first refusal or acquisition of the pledged shares will not be possible due to a claim made by BSD due to their lawsuit against Israel 18, Peretz will commit to BSD that due to any judicial decision made against Israel 18 that causes their holdings of 71.59% in BGI to be impounded by BSD, he will offer to buy the Israel 18 holdings in BGI (assuming it comes to 71.59%) for the price decided in the lawsuit as long as it does not rise above 13 million USD, subject to changes that need to be made according to the obligations and assets of BGI based on the first audited financial statements after execution of the agreement by BSD against the report published soon after receipt of the demand from BSD that the purchaser purchase the holdings of Israel 18 as described above and according to any provision by law.
The entry into force of this agreement is immediate; however, the BGI commitments in accordance with this agreement will take effect only after BGI performs a valuation of BSD in accordance with section 1.3 above, and the result of the aforementioned valuation shall not be in excess of $77 million. In the event that the valuation will be a higher value, the buyer may update the purchase price so that it will be consistent with the valuation so that the gap between the purchase price and the valuation does not exceed 10%. If the buyer did not update the price mentioned above, BGI will be allowed to continue the agreement or, alternatively, inform the purchaser of the cancellation of the agreement without any penalty or compensation by either party.
| 11. | Bearing BGI costs Peretz undertakes to bear the legal expenses of BGI in connection with the transaction totaling 75 thousand USD plus legal VAT to be paid to the law firm of BGI - Gluzman Co., Advocates, within 180 days from the date of signature of this agreement - this salary includes the trustee services.
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| 12. | Changes in the agreement. |
| 12.1 | This agreement contains, merges, and expresses fully and completely all the conditions agreed between the parties. Any guarantee, understanding, agreement, whether oral or whether in writing, warranties or representations regarding the subject of this agreement given or made by the parties prior to the date of signing this agreement, and which are not expressed explicitly in it, is not sufficient to add to charges and rights under this agreement or arising therefrom, detract from or alter, and parties will not be related to them. |
| 12.2 | Beginning from the signing of this agreement, any change and / or the acceptance and / or clarification that is not written in this agreement shall not be valid unless it is signed by the parties in writing, through a new document to be signed between the parties. |
| 12.3 | Any behavior by either party shall not be deemed a waiver of any rights under this agreement or under any law, unless the waiver, acceptance, rejection, modification, cancellation or addition is made explicitly and in writing. Consent or waiver of any of the parties in this agreement, in a particular case regarding a certain party, shall not constitute a precedent enabling one to learn from analogy to other cases or other parties. |
In any case of dispute between the parties arising from the provisions of this agreement, the parties will turn to arbitration before a single arbitrator whose identity shall be agreed upon by the parties. Should there be a failure to identify an arbitrator, the arbitrator shall be appointed by the chairman of the Israel Bar Association. The arbitrator's decision will be made within 90 day, and shall be a written and reasoned decision. The arbitrator's decision shall be final and shall not be subject to appeal. The arbitrator expenses shall be paid by the parties in equal parts, with the side which was decided against undertaking to indemnify the winning side of all arbitration expenses.
Without prejudice to the provisions of the arbitration clause in paragraph 12 above, the Court in Tel Aviv District shall have jurisdiction over matters, shall be the sole authority to deliberate the provisions of this agreement, violations and acts accordingly.
| 15. | This agreement is subject to all applicable laws and the approval of any regulatory authority should it be required. |
The other party notice, pursuant to the provisions of this agreement, submitted in writing by registered mail or by e-mail, at the address indicated below:
To - BGI. Investments (1961) Ltd.:
[removed]
IN WITNESS WHEREOF the parties have signed:
/s/ Mordecai Peretz Hirsnboim /s/ BGI Investments (1961) Ltd.
Mordecai Peretz Hirsnboim BGI Investments (1961) Ltd.
____________________
BG Alpha Limited Partnership
Appendix 1 a share purchase agreement
Written instructions to the Trustee
In honor to
Yaron Kaiser
Ministry Gluzman Co. Advocates
Re: written instructions to the Trustee
The undersigned nominate you,Adv. Yaron Kaiser, ID 034474676, as trustee for the purpose of acquisition of shares in accordance with the share purchase agreement dated _____________, made and signed by the undersigned.
Your role as trustee, we instruct you to do the following:
| i. | open a trust account at Bank Leumi , which is benefiting from its BGI Investments (1961) Ltd. and - Mr. Mordechai Peretz Hirshenboim and / or its subsidiary (hereinafter "Purchaser").
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| ii. | The buyer will deposit the funds in the trust account according to the agreement that signed between the parties on ___
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| iii. | You will trust funds as follows: |
| a. | In the event that the right of refusal will exercised you will act the trust funds as follows:
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| 1. | You will transfer from the trustee an amount of 2.2 to Power Gate Ltd against _____________ shares BSD Crown Ltd which will be deposited in a trust account.
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| 2. | A total of $ 10.5 million will be transferred to Taaman Food Marketing Ltd against the transfer of __________________ BSD Crown Ltd shares representing 9.5% of the issued and outstanding capital of BSD, to the Trust Account. |
| 3. | A total of 2.95 million USD will be transferred by you to Meinl Bank, against Transfer of ____________ BSD Crown shares representing ___% of the issued and outstanding capital of BSD, to the Trust Account. |
| 4. | The balance of funds remaining in the trust account after the payment set forth above will be transfer to BGI Investments (1961) Ltd. |
| iv. | Where the right of refusal is not paid, then transfer the funds to BGI trust.
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| v. | In addition to the finals of all payments incumbent on the buyer, including consideration for the put options as disposed of, in accordance with the share purchase agreement, we instruct you that you hold in trust, the shares of the new company that same buyer purchased, representing 50% of the shares in the new company, and will register a first degree lien in BGI favor the said shares, in accordance with the wording of the bond and pledge to be prepared by you. |
| vi. | In addition, the trust will hold shares in BGI new company, in order to guarantee the right of first refusal provisions in connection with the sale of shares in the new company, as exercised by the purchaser. |
| vii. | In any case where you informed by BGI that there was an event of default by the purchaser and an injunction from a court orders has received so you should delay the transfer of funds within 7 days from the date it received as BGI stated,you will transfer all trust funds to BGI, including the pledged shares to BGI without it may be purchaser any claim to suit you. |
| viii. | The Parties undertake to absolve you in advance of any claim in respect of any acts within the framework of this mutual, provided that made in good faith. The Parties undertake to indemnify you in advance for any expense that will be to you as part of this Trust, including where you go to court for ruling on any question or action necessary to it under this Trust Agreement. |
| ix. | The parties to this agreement shall bear all the expenses of the Trust, including bank account opening fees, banking fees, charges on the trust account and other expenses related to your role as a trustee. |
| x. | The parties, by mutual agreement, be allowed to inform you that your role as a trustee, also be entitled to announce your role as a trustee at any time with prior notice of 30 days and the parties will be required to provide a replacement for you, as it will not find a replacement within 30 days, shall be entitled to call the an alternate trustee, when the parties will be committed to any replacement trustee expenses, including fee as determined as part of the fee to be determined by agreement between you and him. |
| xi. | The parties waive in advance any claim or lawsuit to you as a trustee. |
| xii. | IN WITNESS WHEREOF the parties have signed |
BGI Investments (1961) Ltd.
BG Alpha Limited Partnership Inc.
Mordecai Peretz Hirshenboim.