Document:

Exhibit 4.1

      

    

    

    TOWER SEMICONDUCTOR LTD.

      2013 SHARE INCENTIVE PLAN

     

    A. NAME AND PURPOSE

     

    1.          Name: This plan, as amended from time to time, shall be known as the “2013 Share
        Incentive Plan” or the “Plan”.

     

    2.          Purpose: The purpose and intent of the Plan is to provide incentives to employees, Office
        Holders of the Company and third parties, including service providers of the Company, by providing them with opportunities to purchase or obtain Shares, pursuant to a plan approved by Tower’s Board of Directors (the “Board”) which is designed to
        enable the Company to issue equity related awards.

     

    3.          Incentives under the Plan will only be issued to Grantees (as defined below) subject to the applicable law in their respective
        country of residence for tax or other purposes.

     

    B. DEFINITIONS

     

    “Administrator” means (i) the Board, or (ii) Tower’s Compensation Committee (the “Committee”).

     

    “Affiliate” means any company in which Tower Semiconductor Ltd., a company organized under the laws of the State of
      Israel (“Tower”), holds, directly or indirectly, at least 10% of the issued share capital or voting power.

     

    “Award” means any type of equity granted under the Plan, including Option and/or Restricted Share Unit.

     

    “Cause” means with respect to any Grantee, the meaning of such term as set forth in the employment or other service
      agreement between the Company (or any Affiliate) and the Grantee or, in the event there is no such employment or service agreement (or if any such employment or service agreement does not contain such a definition), such term shall mean (i) breach of
      the Grantee’s duty of loyalty towards the Company, (ii) breach of the Grantee’s duty of care towards the Company, (iii) the commission of any criminal offense by the Grantee, (iv) the commission of any act of fraud, embezzlement or dishonesty towards
      the Company by the Grantee, (v) any unauthorized use or disclosure by the Grantee of confidential information or trade secrets of the Company, (vi) involvement in a transaction in connection with the performance of duties to the Company which
      transaction is adverse to the interests of the Company and which is engaged in for personal profit, (vii) any other intentional misconduct by the Grantee (by act or omission) adversely affecting the business or affairs of the Company in a material
      manner, or (viii) any act or omission by an Israeli Grantee which would allow for the termination of the Grantee’s employment without severance pay, according to the Israeli Severance Pay Law, 1963, or any similar provision of law in the jurisdiction
      in which the Grantee is employed.(ix) material breach of any employment or service agreement with the Company

     

     “Cessation of Service” means the cessation of the employee-employer relationship or engagement for services, as
      applicable, between the Grantee and the Company for any reason; “Cessation of Service” shall not include the transfer of a Grantee from the employ of, or engagement with, Tower to the employ of or engagement with an Affiliate, or from the employ of
      or engagement with an Affiliate to the employ of or engagement with Tower or another Affiliate.  Regarding Board members, “Cessation of Service” means the cessation of the engagement of the Grantee as a member of the Board for any reason.

    
      
        

    

    
     

    “Change of Control” or “COC” means (a) any person or entity that is not
      then a controlling shareholder and obtains control of the Company as defined in Section 268 of the Companies Law; (b) the Company is party to a merger or consolidation, or series of related transactions, which results in the voting securities of the
      Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving or another entity) at least fifty (50%) percent of the combined voting power
      of the voting securities of the Company or such surviving or other entity outstanding immediately after such merger or consolidation; (c) the sale or disposition of all or substantially all of the Company’s assets (or consummation of any transaction,
      or series of related transactions, having similar effect); (d) there occurs a change in the composition of the Board of Directors of the Company within a two-year period, as a result of which a majority of the directors, other than the External
      directors, are no longer the incumbent directors or representatives of the same entity which the incumbent directors represent; (e) the dissolution or liquidation of the Company; or (f) any transaction or series of related transactions that has the
      substantial effect of any one or more of the foregoing.

     

    “Companies Law” means the Israeli Companies Law, 1999.

     

    “Company” means Tower Semiconductor Ltd. and/or any Affiliate thereof.

     

    “Corporate Transaction” means the occurrence, in a
      single transaction or in a series of related transactions, of any one or more of the following events: (i) a sale or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries; (ii) a sale or other
      disposition of at least eighty percent (80%) of the outstanding equity securities  of the Company; (iii) a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or (iv) a merger, consolidation or
      reorganization following which the Company is the surviving corporation but the Shares of the Company outstanding immediately preceding the merger, consolidation or reorganization are converted or exchanged by virtue of the merger, consolidation or
      reorganization into other property, whether in the form of securities, cash or otherwise.  Whether a transaction is a “Corporate Transaction” as defined above, shall be finally and conclusively determined by the Administrator in its absolute
      discretion.

     

    “Date of Grant” means the effective date of grant of an Award, as detailed in Section 6.1 below.

     

    “Date of Cessation” means the effective date of a Cessation of Service.

     

    “Disability” means the inability to engage in any substantial gainful occupation for which the Grantee is suited by
      education, training or experience, by reason of any medically determinable physical or mental impairment that is expected to result in such person’s death or to continue for a period of six (6) consecutive months or more.

     

    “Exercise Conditions” means a Vesting Period, exercise terms as defined in section 9 below and/or Performance
      Conditions.

    
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    “Exercise Price” means (i) the purchase price per Share, or (ii) the nominal value per Share to be paid by the
      Grantee upon the vesting of an Award that does not require exercise , to the extent the Grantee is required to pay such nominal value hereunder, as applicable.

     

    “Exercised Share” means a Share issued upon exercise of an Award or vesting of an Award, as applicable.

     

    “Office Holder”- as such term is defined in the Companies Law.

     

    “Grantee” means an employee, Office Holder of the Company or third party, including service provider of the
      Company, to whom an Award shall be granted under the Plan.

     

    “Notice of Exercise” means a written notice of exercise of an Award delivered by a Grantee to the Representative.

     

    “Notice of Grant” means a written notice of the grant of an Award delivered by the Company to a Grantee relating to
      the terms of the grant.

     

    “Option” means an option to purchase a Share or Shares, as applicable.

     

    “Performance Based Award” means a performance based Award as defined in Section 11.1 below.

     

    “Performance Conditions” as defined in Section 11.1 below.

     

    “Representative” means any third party designated by the Company for the purpose of managing the exercise of
      Awards, as provided in Section 9.2 below.

     

    “RSU” means Restricted Share Unit, as defined in Section 10 below.

     

    “Sale” means the sale of all or substantially all of the issued and outstanding share capital of the Company.

     

    “Share” means an ordinary share, nominal value of NIS 15.00 each of the Company.

     

    “Successor Entity Award”
        means Awards for which the underlying Shares are replaced by securities of any successor entity, as provided in Section 12.6 below.

     

    “Tax” means any and all federal, provincial, state and local taxes of any applicable jurisdiction, and other governmental fees, charges, duties, impositions and liabilities of any kind whatsoever, including
        social security, national health insurance or similar compulsory payments, together with all interest, linkage for inflation, penalties and additions imposed with respect to such amounts.

     

    “Vesting Period” means the period between the Date of Grant and the date on which (i) the Grantee may exercise the
      Award into Exercised Shares; or (ii) if said Award does not require the Grantee to exercise it, the date on which the Award vests into an Exercised Share.

    
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    C. GENERAL TERMS AND
        CONDITIONS OF THE PLAN

     

      

    4.          Administration:

     

    4.1          The Plan will be administered by the Administrator, subject to applicable law.

     

    4.2          Subject to the general terms and conditions of the Plan, the Administrator shall
        have the full authority in its discretion, from time to time and at any time to determine (i) the Grantees under the Plan, (ii) the number of Shares in each Award and the type of Award, (iii) the time or times at which the same shall be granted,
        (iv) the schedule and conditions, including Performance Conditions, if applicable, on which Awards may vest or be exercised and on which Shares shall be paid for, (v) the method of payment for Shares purchased pursuant to any Award, (vi) the method
        for satisfaction of any tax withholding obligation arising in connection with an Award, including by the withholding, delivery or sale of Shares, (vii) rules and provisions, as may be necessary or appropriate to permit eligible Grantees resident or
        employed in any specific jurisdiction to participate in the Plan and/or to receive preferential tax treatment in their country of residence, with respect to Awards granted hereunder, and/or (viii) any other matter which is necessary or desirable
        for, or incidental to, the administration of the Plan.

     

    4.3          The Company may retain the right in an Award Agreement to cause a forfeiture of the
        gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company or any
        confidentiality obligation with respect to the Company or otherwise in competition with the Company, to the extent specified in such Award Agreement applicable to the Grantee. Furthermore, the Company may annul an Award if the Grantee is terminated
        for Cause as defined in the applicable Award Agreement or the Plan, as applicable.

     

    4.4          Notwithstanding any provision of the Plan or any Award Agreement, the Committee may
        cause any Award granted hereunder to be amended, modified or cancelled in consideration of a cash payment, an alternative Award or both made to the holder of such cancelled Award equal to or greater than the Fair  Market Value of such cancelled
        Award.    

     

    4.5          The Administrator may, from time to time, adopt such rules and regulations for
        carrying out the Plan, as it may deem necessary.

     

    4.6          The interpretation and construction by the Administrator of any provision of the
        Plan or of any Award thereunder shall be final and conclusive and binding on all parties who have an interest in the Plan or any Award or Exercised Share, unless otherwise determined by the Administrator.

     

    5.          Eligible Grantees:

     

    5.1          The Administrator, at its discretion, may grant Awards to any Grantee, subject to
        and in compliance with Company’s policies.

     

    5.2           The grant of an Award to a Grantee hereunder, shall neither entitle such Grantee to
        participate, nor disqualify him from participating, in any other grant of Awards pursuant to the Plan or any other incentive plan of Tower, subject to and in compliance with Company’s policies.

    
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    6.          Date of Grant and Shareholder Rights:

     

    6.1          Date of Grant. Subject to compliance with Section 8.1 hereof, the Date of
        Grant shall be the date the Administrator resolves to grant such Award, or any later date, if so specified by the Administrator in its determination relating to the grant of such Award. The Company shall promptly give the Grantee a Notice of Grant
        following such resolution.

     

    6.2          Shareholder Rights. A Grantee holding an Award shall have no shareholder
        rights with respect to the Shares subject to such Award until such Grantee (i) shall have exercised such Award or such Award has vested, as applicable, (ii) shall have all restrictions applicable to any Shares issued to him removed, if applicable;
        (iii) has paid the applicable Exercise Price, if any; and (iv) has become the record holder of the Exercised Shares.

     

    7.          Reserved Shares:

     

    7.1          The maximum number of Shares that may be subject to Awards granted under the Plan
        shall be the amount of Shares that shall not exceed 10% of the fully diluted share count of the Company as calculated at the time of grant (which fully diluted share count will be calculated pro-forma to include the proposed Awards) minus the
        amount of Shares to be issued under the outstanding Options and RSUs at the time of the grant.

     

    7.2          Without derogating from the foregoing in Section 7.1, all Shares under the Plan, in
        respect of which the right of a Grantee to hold or purchase or be issued the same shall, for any reason, terminate, expire or otherwise cease to exist without having been exercised, shall again be available for grant through Awards under the Plan,
        and under any sub-plans of the Plan, as the Administrator may determine at its own discretion, from time to time. Notwithstanding the above, Shares withheld or reacquired by the Company in satisfaction of tax withholding obligations pursuant to
        Section 15  below shall not be taken into account for the purposes of calculating the maximum number of Shares that may be subject to Awards pursuant to Section 7.1 above.

     

    8.          Required Approvals; Notice of Grant; Vesting:

     

    8.1          The implementation of the Plan and the granting of any Award under the Plan shall be
        subject to the Company’s procurement of all approvals and permits required by applicable laws or regulatory authorities having jurisdiction over the Plan, the Awards granted under it, and the Shares issued pursuant to it.

     

    8.2          The Notice of Grant shall state, inter alia, the number of Shares subject to each
        Award, the type of Award, the vesting schedule, the dates when the Award may be exercised and/or will vest (as applicable), any restrictions upon transfer or sale of Shares (if applicable), the Exercise Price, the tax treatment to which the Award
        is subject and such other terms and conditions as the Administrator at its discretion may prescribe, provided that they are consistent with the Plan.

     

    8.3          Vesting of Awards. Unless determined otherwise by the Administrator, Awards shall
        vest over a one to three year period according to the applicable vesting schedule and subject to Exercise Conditions, if any, included in the Award. The Administrator may determine an extended vesting schedule at its discretion. Specifically with
        respect to Performance RSUs, unless determined otherwise by the Administrator, Performance RSUs shall be fully vested upon the fulfillment of their vesting conditions, such that at the end of the applicable Vesting Period, Tower shall issue the
        underlying Shares.

    
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    9.          Options:

     

    9.1          Exercise Price. The Exercise Price of an Option shall be equal to the
        arithmetic average closing price of Tower’s Shares, as quoted on the NASDAQ market (or if Tower shares will not be traded in NASDAQ, the Tel Aviv Stock Exchange or any principal national securities exchange upon which Tower’s Shares are listed or
        traded) for the last 30 market trading days prior to the Date of Grant.  Notwithstanding the above, the exercise price will not be lower than the nominal value of the Shares, unless it is determined by the Board of Directors that such exercise
        price lower than the nominal value of the Shares would otherwise be in compliance with the Israeli Companies Law.

     

    9.2          Exercise of Options. Options shall be exercisable pursuant to the terms under
        which they were awarded and subject to the terms and conditions of the Plan. The exercise of an Option shall be made by a written Notice of Exercise delivered by the Grantee to the Representative, in such form and method as may be determined by the
        Company, specifying the number of Shares to be purchased, at the Representative’s principal office, and containing such other terms and conditions as the Administrator shall prescribe from time to time.

     

    Without derogating from the foregoing, Options shall not be exercised on the determining date with respect to the distribution of bonus shares, offer by
      way of rights issue, distribution of dividends, consolidation of share capital, consolidation of shares, reduction or split in share capital or company split (each hereinafter referred to as a "Corporate Event").

      In addition, if the Ex Date with respect to a Corporate Event occurs before the determining date relating to such Corporate Event, then the exercise of Options shall not occur on such Ex Date. "Ex Date" means the date that determines which
      shareholders of the Company are entitled to participate in the Corporate Event.

     

    The limitations pursuant to this subsection 9.2 shall be in effect only as long as the Company's securities are traded on the Tel-Aviv Stock Exchange, or
      any other established stock exchange or a national market system (the "Stock Exchange").

     

    9.3          Term of Options. Without derogating from the provisions of Section 9.4 below, if any Option has not
        been exercised and the Shares subject thereto not paid for within seven (7) years after the Date of Grant (or any shorter period set forth in the Notice of Grant), such Option and the right to acquire such Shares shall terminate, all interests and
        rights of the Grantee in and to the same shall ipso facto expire, and the Shares subject to such Options shall again be available for grant through Awards under the Plan, any sub-plans of the Plan, as provided for in Section 7 herein.

     

     9.4   The exercise of the Options shall be subject to applicable law, including when applicable, the limitations
      in connection with the use of nonpublic information.

    
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     9.5          Cessation of Service.

     

    (a)          In the event of a Cessation of Service, unless determined otherwise by the Administrator or as otherwise
        set forth in this section: (i) all Options granted to such Grantee that are vested and exercisable on the Date of Cessation shall terminate ninety (90) days from the Date of Cessation; and (ii) all Options that are not vested on the Date of
        Cessation, and whose vesting is not otherwise accelerated pursuant to the terms of this Plan, shall expire immediately.

     

    (b)          Notwithstanding subsection (a) above, in the event the Company terminates the employment/ services of a
        Grantee under circumstances that entitle the Company to terminate the Grantee for Cause, all of the Grantee’s Options, whether vested or not, shall expire on the Date of Cessation.

     

    (c)          If the Grantee’s Cessation of Service is by reason of such Grantee’s Disability, retirement at the legally
        prescribed retirement age, illness retirement or other cause approved by the Committee, Options that are vested on the Date of Cessation shall be exercisable by the Grantee or the Grantee’s guardian or legal representative at any time until one (1)
        year from the Date of Cessation.

     

    (d)          If the Grantee’s Cessation of Service is by reason of such Grantee’s death, all unvested equity held by the
        Grantee at the time of death shall be accelerated and immediately vested.  All of Grantee’s outstanding equity shall be exercisable, by the person to whom the Grantee’s rights are transferred by will or by laws of descent or distribution, at any
        time until one (1) year from the Date of Cessation.

     

    (e)          Notwithstanding the aforesaid, under no circumstances shall any Option be exercisable after the expiration
        of the term of such Option.

     

    10.          Restricted Share Units:

     

    10.1          Subject to the sole and absolute discretion of the Administrator, the Administrator
        may decide to grant Restricted Share Units (“RSU(s)”) under the Plan.  An RSU is a right to receive a Share of the Company, under certain terms and conditions. Upon the end of the applicable Vesting Period and/or the fulfillment of the Exercise
        Conditions of an RSU as set forth in the specific Award, such RSU shall automatically vest into an Exercised Share of the Company (subject to adjustments under Section 12 herein).

     

    10.2          As soon as reasonably practicable following the lapse of the applicable portion of
        the Vesting Period, the Company shall cause to be delivered to the Grantee, the Exercised Shares, subject to satisfaction of applicable tax withholding obligations and other costs with respect thereto.  The Company may provide that any Exercised
        Shares be held, by issuing the Exercised Shares to a trustee which shall hold such Shares for the benefit of the Grantee. Following the lapse of the Vesting Period the Company is hereby authorized by itself or any party acting on its behalf to
        deduct the applicable taxes and other costs from the Grantee's salary or via cash or check, or via partial sale of the issued Shares or from any other amount payable to the Grantee, all subject to the applicable tax rules and regulations.

     

    10.3          In the event of a Cessation of Service, unless determined otherwise by the
        Administrator in the Notice of Grant, or as otherwise set forth in this section: (i) all Shares underlying vested RSUs or underlying exercised Options, if any, will remain with the Trustee and may be sold by the Grantee upon Cessation of Service or
        later on subject to withholding by the Company  of the applicable taxes and costs from the Grantee; Grantee may decide to transfer the Shares from the Trustee to another account subject to the Company withholding any applicable taxes and costs
        prior to such transfer. (ii) all unvested RSUs on the Date of Cessation, and whose vesting is not otherwise accelerated pursuant to the terms of this Plan or the Award terms, shall expire immediately.

    
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    10.4          All other terms and conditions of the Plan applicable to Options, shall apply to
        RSUs, mutatis mutandis.

     

    11.          Performance Based Awards:

     

    11.1          Subject to the sole and absolute discretion and determination of the Administrator,
        the Administrator may decide to grant Awards under the Plan, the exercise or vesting of which, as applicable, shall be conditional upon the performance of the Company and/or an Affiliate and/or a division or other business unit of the Company or of
        an Affiliate and/or upon the performance of the Grantee to the sole and absolute discretion and determination of the Administrator, over such period and measured against such objective criteria as shall be determined by the Administrator and
        notified to the Grantee (“Performance Based Award(s)”). In granting each Performance Based Award, the Administrator shall establish in writing the applicable performance period (“Performance Period”), performance formula (“Performance Formula”) and one or more performance goals (“Performance Goal(s)”) which, when measured at
        the end of the Performance Period, shall determine on the basis of said Performance Formula the extent to which the Performance Based Award has vested and/or become exercisable (collectively, the “Performance
          Conditions”). For the avoidance of doubt, Performance Conditions may be determined for an Award either in addition to, or in substitution for, a Vesting Period.

     

    11.2          If, in consequence of the applicable Performance Conditions being met a Performance
        Based Award becomes vested and/or exercisable in respect of some, but not all of the number of Shares underlying such Award, the portion of the Shares not available for vesting or exercise shall lapse and cease to be exercisable.  

     

    11.3          Performance Conditions shall not be automatically waived merely due to an event of
        (i) a Cessation of Service, (ii) a Corporate Transaction, (iii) any other adjustment under Section 12 below, or (iv) a Sale under Section 12.6 below.

     

    11.4          Measurement of Performance Goals. Performance Goals shall be established by
        the Administrator on the basis of targets to be attained with respect to one or more measures of business or financial performance that shall have the same meanings as used in the Company’s financial statements, or, if such terms are not used in
        the Company’s financial statements, they shall have the meaning applied pursuant to generally accepted accounting principles, or as used generally in the Company’s industry (“Performance Measures”). For purposes of the Plan, the Performance
        Measures applicable to a Performance Based Award shall be calculated in accordance with generally accepted accounting principles, excluding the effect (whether positive or negative) of any change in accounting standards or any extraordinary,
        unusual or nonrecurring item, as determined by the Administrator, occurring after the establishment of the Performance Goals applicable to the Performance Based Award. Each such adjustment, if any, shall be made solely for the purpose of providing
        a consistent basis from period to period for the calculation of Performance Measures in order to prevent the dilution or enlargement of the Grantee’s rights with respect to a Performance Based Award. Performance Measures may be one or more of the
        following, as determined by the Administrator: revenue; sales; expenses; operating income; gross margin; operating margin; earnings before any one or more of: share-based compensation expense, interest, taxes, depreciation and amortization; pre-tax
        profit; net operating income; net income; economic value added; free cash flow; operating cash flow; share price; earnings per share; return on shareholder equity; return on capital; return on assets; return on investment; Grantee satisfaction;
        Grantee retention; balance of cash, cash equivalents and marketable securities; market share; customer satisfaction; product development; and research and development expenses; completion of an identified special project, and completion of
        acquisition by the Company.

    
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    11.5          All other terms and conditions of the Plan applicable to Awards, shall apply to
        Performance Based Awards, mutatis mutandis.

     

    12.          Adjustments, Liquidation and Corporate Transaction:

     

    12.1          Adjustments. Subject to any required action under any applicable law, the
        number and/or type of Shares subject to each outstanding Award,  shall be proportionately adjusted, as the Administrator deems necessary or appropriate, for any increase or decrease in the number of issued Shares resulting from a share split,
        reverse share split, stock dividend, combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, in such manner as is appropriate in order
        to prevent dilution or enlargement of the rights of a Grantee under the Plan, and the number of Shares which have been authorized for issuance under the Plan shall likewise be proportionately adjusted, (provided, however, that conversion of any
        convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Except as expressly provided in this Section 12, no issuance by the Company of shares of any class, or securities convertible into
        shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Award.)  Any such adjustment in outstanding Options shall include a corresponding proportionate
        adjustment in the Exercise Price per share. In case of rights offering made by Company to its securities holders the Options holders will be entitled to participate in such right offering under similar conditions to the other security holders,
        provided however that they will not be entitled to any further adjustments to their Award under this clause as a result of such rights offering.

     

    Except as expressly provided in this Section 12, the grant of Awards under the Plan shall in no way affect the right of the Company to
      distribute bonus shares, to offer rights to purchase its securities, or to distribute dividends.

     

    12.2          Adjustments to Options’ Exercise Price due to Distribution of Dividends. If
        the Company distributes cash dividends on an extraordinary basis with respect to all Shares issued to its shareholders, and the record date for determining the right to receive such dividends (the “Determining Date”) is earlier than the Exercise
        Date of any Options granted hereunder, then the Exercise Price for each Option granted but not exercised prior to the Determining Date, shall be reduced by an amount equal to the gross amount of the dividend per Share distributed. If such
        distribution is in a currency different than the currency in which the Exercise Price is stated, said amount of reduction will be calculated in the same currency as the Exercise Price according to the representative rate of exchange as of the
        Determining Date, if applicable.

    
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    12.3          Liquidation. In the event of the proposed dissolution or liquidation of the
        Company, all outstanding Awards will terminate immediately prior to the consummation of such proposed action. Notwithstanding the above, the Administrator may declare that any Award shall terminate as of a date fixed by the Administrator and give
        each Grantee the right to exercise his Award or have it vested, including Awards that would not otherwise vest or be exercisable.

     

    12.4          In the event of a COC, at the sole discretion of the Administrator, all or any of
        the unvested Options or RSUs may be accelerated.

     

    12.5          If the Company shall be the surviving entity in any reorganization, merger, or
        consolidation of the Company with one or more other entities which does not constitute a Corporate Transaction, any Option theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number of
        Shares subject to such Option would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Exercise  Price per share so that the aggregate Exercise Price
        thereafter shall be the same as the aggregate Exercise Price of the shares remaining subject to the Option immediately prior to such reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement evidencing an
        Award, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Grantee as a result of the reorganization, merger or consolidation. In the event of a transaction described in this Section 12.4, RSUs
        shall be adjusted so as to apply to the securities that a holder of the number of Shares subject to the RSUs would have been entitled to receive immediately following such transaction.

     

    12.6          Corporate Transaction.

     

    (a)          In the event of a Corporate Transaction, immediately prior to the effective date of such Corporate
        Transaction, each Award shall among other things, at the sole and absolute discretion of the Administrator, either:

     

    (i)          Be substituted for a Successor Entity Award such that the Grantee may exercise the Successor Entity Award
        or have it become vested, as the case may be, for such number and class of securities of the successor entity which would have been issuable to the Grantee in consummation of such Corporate Transaction, had the Award vested or been exercised (as
        applicable), immediately prior to the effective date of such Corporate Transaction, given the exchange ratio or consideration paid in the Corporate Transaction, the Vesting Period and Performance Conditions (if any) of the Awards and such other
        terms and factors that the Administrator determines to be relevant for purposes of calculating the number of Successor Entity Awards granted to each Grantee;

     

    (ii)          Be assumed by any successor entity such that the Grantee may exercise the Award or have his/her Award
        vest (as applicable), for such number and class of securities of the successor entity which would have been issuable to the Grantee in consummation of such Corporate Transaction, had the Award vested or been exercised immediately prior to the
        effective date of such Corporate Transaction, given the exchange ratio or consideration paid in the Corporate Transaction, the Vesting Period and Performance Conditions (if any) of the Awards and such other terms and factors that the Administrator
        determines to be relevant for this purpose; or

    
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    (iii)          Determine that the Awards shall be cashed out for a consideration equal to the difference between the
        price per share determined in the Corporate Transaction and the Exercise Price, purchase price, or nominal value, as the case may be, of such Award.

     

    In the event of a clause (i) or clause (ii) action, appropriate adjustments shall be made to the Exercise Price per Share to reflect
      such action.

     

    (b)          Immediately following the consummation of the Corporate Transaction, all outstanding Awards (excluding
        Successor Entity Awards) shall terminate and cease to be outstanding, except to the extent assumed by a successor entity.

     

    (c)          Notwithstanding the foregoing, and without derogating from the power of the Administrator pursuant to the
        provisions of the Plan, the Administrator shall have full authority and sole discretion to determine that any of the provisions of Sections 12.6(a)(i) or 12.6(a)(ii) above shall apply in the event of a Corporate Transaction in which the
        consideration received by the shareholders of the Company is not solely comprised of securities of a successor entity, or in which such consideration is solely cash or assets other than securities of a successor entity. In addition, in the event
        that the Administrator determines in good faith that, in the context of a Corporate Transaction, certain Options have no monetary value and thus do not entitle the holders of such Options to any consideration under the terms of the Corporate
        Transaction, the Administrator may determine that such Options shall terminate effective as of the effective date of the Corporate Transaction. It is the intention that the Administrator’s authority to make determinations, adjustments and
        clarifications in connection with the treatment of Awards shall be interpreted as widely as possible, to allow the Administrator maximal power and flexibility to interpret and implement the provisions of the Plan in the event of  Transaction,
        provided that the Administrator shall determine in good faith that a Grantee’s  rights are not thereby adversely affected without the Grantee’s express written consent.

     

    12.7          Sale. Subject to any provision in the Articles of Association of the Company
        and to the Administrator’s sole and absolute discretion, in the event of a Sale, each Grantee shall be obligated to participate in the Sale and sell his or her Shares and/or Awards in the Company, provided, however, that each such Share or Award
        shall be sold at a price equal to that of any other Share sold under the Sale (and, unless determined otherwise by the Administrator, less the applicable Exercise Price), while accounting for changes in such price due to the respective terms of any
        such Award, and subject to the absolute discretion of the Administrator.

     

    For purposes of a Sale, whether “all or substantially all of the issued and outstanding share capital of the Company is to be sold”,
      shall be finally and conclusively determined by the Administrator in its absolute discretion.

     

    12.8          The grant of Awards under the Plan shall in no way affect the right of the Company
        to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

     

    13.          Limitations on Transfer.

     

    13.1          Unless determined otherwise by the Administrator, no Award shall be assignable or
        transferable by the Grantee otherwise than by will or the laws of descent and distribution, and an Award shall vest or may be exercised (as applicable) only by such Grantee or his/her guardian or legal representative. The terms of such Award shall
        be binding upon the beneficiaries, executors, administrators, heirs and successors of such Grantee. Any Shares acquired upon exercise or vesting of Awards shall be transferable only in accordance with applicable securities and other local laws, and
        may be subject to substantial statutory or regulatory restrictions on transfer, except to the extent exemptions (whether by registration or otherwise) are available

    
      11

      
        

    

     

    13.2          Underwriter’s Lock-up and Limitations on the Use of Nonpublic Information. The
        Grantee’s rights to sell Exercised Shares may be subject to certain limitations (including a lock-up period), as may be requested by the Company or its underwriters, from time to time, or upon a specific occurrence, and the Grantee unconditionally
        agrees and accepts any such limitations. Furthermore, the Grantee’s right to sell Exercised Shares is subject to applicable law, including in connection with limitations relating to the use of non-public information, Company-wide black out periods
        and so forth.

     

    14.          Term and Amendment of the Plan:

     

    14.1          The Plan shall continue until terminated by the Administrator. All Awards
        outstanding at the time of termination, as aforementioned, shall continue to have full force and effect in accordance with the provisions of the Plan and the documents evidencing such Awards.

     

    14.2          Subject to applicable laws and regulations, the Administrator in its discretion
        may, at any time and from time to time, amend, alter, extend or terminate the Plan, as it deems advisable.  In addition, the Administrator may adopt, as part of the Plan and based on it, sub-plans, in order to comply with all relevant and
        applicable laws and regulations of the country of residence of any Grantees.

     

    14.3          For the avoidance of doubt, as long as the Company's securities are traded on the
        Stock Exchange, the provisions of this Plan shall be subject to the directives, rules and regulations of the Stock Exchange, as those are established from time to time ("Stock Exchange Directives"). In the
        event that any of the provisions this Plan do not comply with the Stock Exchange Directives, the Administrator shall be entitled to automatically amend the provisions of this Plan in order to comply with the Stock Exchange Directives.

     

    15.          Withholding and Tax Consequences:

     

    15.1          All Tax consequences and obligations arising from the grant, vesting, or exercise
        of any Award (as applicable), or the subsequent disposition of, Shares subject thereto or from any other event or act (of the Company or of the Grantee) hereunder, shall be borne solely by the Grantee, and the Grantee shall indemnify the Company
        and hold it harmless against and from any and all liability for any such Tax, including without limitation, monetary liabilities relating to the necessity to withhold, or to have withheld, any such Tax payment from any payment made to the Grantee.
        The Company or any of its affiliates may make such provisions and take such steps as it may deem  necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Awards granted under the Plan and the
        exercise or vesting thereof, including, but not limited, to (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter  to be provided to the Grantee, including by deducting any such amount
        from a Grantee’s salary or other amounts payable to the Grantee, to the maximum extent permitted under law and/or (ii) requiring  the Grantee to pay to the Company or any of its affiliates the amount so required to be withheld as a condition of the
        issuance, delivery, distribution or release of any Shares and/or (iii) by causing the exercise and sale of any Options or Shares held by on behalf of the Grantee to cover such liability, up to the amount required to satisfy  minimum statutory
        withholding requirements. In addition, the Grantee will be required to pay any amount due in excess of the tax withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations and rules. Notwithstanding the above, the
        Company’s obligation to deliver Shares upon the exercise or vesting of any Awards granted under the Plan shall be subject to the satisfaction of all applicable Tax withholding requirements and any other required payments as governed by applicable
        law or practice. The Company shall have the right, but not the obligation, to deduct from the Shares issuable to a Grantee upon the exercise or vesting of an Award, or to accept from the Grantee the tender of, a number of whole Shares having a fair
        market value, as determined by the Company, that will enable the Company to satisfy any Tax withholding obligations of the Company. The maximum number of Shares that may be withheld from any Award to satisfy any federal, state or local tax
        withholding requirements upon the exercise, vesting, lapse of restrictions applicable to such Award or payment of shares pursuant to such Award, as applicable, cannot exceed such number of shares having a fair market value equal to the minimum
        statutory amount required by the Company to be withheld and paid to any such federal, state or local taxing authority with respect to such exercise, vesting, lapse of restrictions or payment of shares.

    
      12

      
        

    

     

    15.2          The Grantee shall, if requested at any time by the Company, provide to the Company
        within 10 calendar days of such request, any information regarding the transfer or other disposition of Shares reasonably required by the Company in order for the Company to comply with applicable local laws and regulations or to obtain any
        benefits thereunder.

     

    16.          Miscellaneous:

     

    16.1          Continuance of Employment. Neither the Plan nor the grant of an Award thereunder
        shall impose any obligation on the Company to continue the employment or service of any Grantee. Nothing in the Plan or in any Award granted thereunder shall confer upon any Grantee any right to continue in the employ or service of the Company for
        any period of specific duration, or interfere with or otherwise restrict in any way the right of the Company to terminate such employment or service at any time, for any reason, with or without cause.

     

    16.2          Governing Law. The Plan and all instruments issued thereunder or in connection
        therewith, shall be governed by, and interpreted in accordance with, the laws of the State of Israel, excluding the choice of law rules thereof.

     

    16.3          Multiple Agreements. The terms of each Award may differ from other Awards granted
        under the Plan at the same time, or at any other time. The Administrator may also grant more than one grant of Awards to a given Grantee during the term of the Plan, either in addition to, or in substitution for, one or more Awards previously
        granted to that Grantee. The grant of multiple Awards may be evidenced by a single Notice of Grant or multiple Notices of Grant, as determined by the Administrator.

     

    16.4          Non-Exclusivity of the Plan. The adoption of the Plan by the Administrator shall
        not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Administrator to adopt such other incentive arrangements as it may deem desirable.

     

    
      13

      
        

    

    
       

    

    TOWER SEMICONDUCTOR LTD.

     

    ADDENDUM TO THE 2013 SHARE INCENTIVE PLAN

        FOR ISRAELI GRANTEES

     

    General

     

    This addendum (the “Addendum”) shall apply only to Grantees who are residents of the State of Israel or those who are deemed to be
      residents of the State of Israel for tax purposes (collectively, “Israeli Grantees”). The provisions specified hereunder shall form an integral part of the Tower Semiconductor Ltd. 2013 Share Incentive Plan (the “Plan”), which applies to the grant of
      Awards.

     

    This Addendum is to be read as a continuation of the Plan and only modifies the terms of Awards granted to Israeli Grantees so that they
      comply with the requirements set by the Israeli law in general, and in particular with the provisions of the Israeli Tax Ordinance (as defined below), as may be amended or replaced from time to time.

     

    The Plan and this Addendum are complimentary to each other and shall be deemed as one. In any case of contradiction with respect to
      Awards granted to Israeli Grantees, whether explicit or implied, between the provisions of this Addendum and the Plan, the provisions set out in this Addendum shall prevail.

     

    Any capitalized term not specifically defined in this Addendum shall be construed according to the definition or interpretation given to
      it in the Plan

     

    Definitions

     

    “102 Award” means a grant of an Award to an Israeli Employee, pursuant to the provisions of Section 102 of the Tax
      Ordinance, the 102 Rules, and any other regulations, rulings, procedures or clarifications promulgated thereunder, or under any other section of the Tax Ordinance that will be relevant for such issuance in the future.

     

    “102(c) Award” means a 102 Award that will not be subject to a Taxation Route, as detailed in Section 102(c) of the
      Tax Ordinance.

     

     “Beneficial Grantee” means the Grantee for the benefit of whom the Trustee holds an Award in Trust.

     

    “Capital Gains Route” means the capital gains tax route under Section 102(b)(2) of the Tax Ordinance.

     

    “Controlling Shareholder” means a “controlling shareholder” of the Company, as such term is defined in Section
      32(9)(a) of the Tax Ordinance.

     

    “Employee” means a person who is employed by the Company or its Affiliates, including an individual who is serving as a director or an Office Holder, but excluding any Controlling Shareholder, all as determined in
        Section 102 of the Ordinance.

     

    “Minimum Trust Period” means the minimum period of time required under a
      Taxation Route for Awards and/or Exercised Shares to be held in Trust in order for the Beneficial Grantee to enjoy to the fullest extent the tax benefits afforded under such Taxation Route, as prescribed at any time by Section 102 of the Tax
      Ordinance.

     

    “Non-Employee” means any Israeli Grantee excluding an Employee.

     

    “Ordinary Income Route” means the ordinary income route under Section 102(b)(1) of the Tax Ordinance.

    
      14

      
        

    

     

    “Rights” means rights issued in respect of Exercised Shares, including bonus shares.

     

    “102 Rules” means the Israeli Income Tax Rules (Tax Relief in Issuance of Shares to Employees), 2003.

     

    “Taxation Route” means each of the Ordinary Income Route or the Capital Gains Route.

     

    “Tax Ordinance” means the Israeli Income Tax Ordinance [New Version], 1961,
      as amended.

     

    “Trust” means the holding of an Award or Exercised Share by the Trustee in trust for the benefit of the Beneficial
      Grantee, pursuant to the instructions of a Taxation Route.

     

    “Trustee” means a trustee designated by the Administrator in accordance with the provisions of Section 3 below and,
      with respect to 102 Awards, approved by the Israeli Tax Authorities.

     

    “3(i) Award” means any Award granted pursuant to Sections 3(i), 2(1) and/or 2(2) of the Ordinance, as applicable, to any person who is a Non-Employee

     

    Administration:

     

    The Administrator has elected the Capital Gains Route for grants of 102 Awards pursuant to the provisions of Section 102 of the
      Ordinance and the applicable regulations.

     

    Subject to the general terms and conditions of the Plan, the Tax Ordinance, and any other applicable laws and regulations, the
      Administrator shall have the full authority in its discretion, from time to time, to determine with respect to grants of 102 Awards –the identity of the trustee who shall be granted such 102 Awards in accordance with the provisions of the Plan and
      the then prevailing Taxation Route.

     

    Notwithstanding the aforesaid, the Administrator may, from time to time, grant 102(c) Awards.

     

    Grant of Awards and Issuance of Shares:

     

    Subject to the provisions of the Tax Ordinance and applicable law all grants of Awards to Israeli Grantees who are Employees, shall be
      of 102 Awards; all grants of Awards to Israeli Grantees who are Non-Employees shall be of 3(i) Awards.

     

    Trust:

     

    General.

     

    In the event Awards are deposited with a Trustee, the Trustee shall hold each such Award and any Exercised Shares in Trust for the
      benefit of the Beneficial Grantee.

     

    In accordance with Section 102, the tax benefits afforded to 102 Awards (and any Exercised Shares) in accordance with the Ordinary
      Income Route or Capital Gains Route, as applicable, shall be contingent upon the Trustee holding such 102 Awards for the applicable Minimum Trust Period.

     

    With respect to 102 Awards granted to the Trustee, the following shall apply:

     

    A Grantee granted 102 Awards shall not be entitled to sell the Exercised Shares or to transfer such Exercised Shares (or such 102
      Awards) from the Trust prior to the lapse of the Minimum Trust Period; and

     

    Any and all Rights shall be issued to the Trustee and held thereby until the lapse of the Minimum Trust Period, and such Rights shall be
      subject to the Taxation Route which is applicable to such Exercised Shares.

     

    Notwithstanding the aforesaid, Exercised Shares or Rights may be sold or transferred, and the Trustee may release such Exercised Shares
      or Rights from Trust, prior to the lapse of the Minimum Trust Period, provided however, that tax is paid or withheld in accordance with Section 102 of the Tax Ordinance and Section 7 of the 102 Rules, and any other provision in any other section of
      the Tax Ordinance and any regulation, ruling, procedure and clarification promulgated thereunder, that will be relevant, from time to time.

     

    
      15

      
        

    

     

    The Company shall register the Exercised Shares issued to the Trustee pursuant to the Plan, in the name of the Trustee for the benefit
      of the Israeli Grantees, in accordance with any applicable laws, rules and regulations, until such time that such Shares are released from the Trust as herein provided.

     

    If the Company shall issue any certificates representing Exercised Shares deposited with the Trustee under the Plan, then such certificates shall be
      deposited with the Trustee, and shall be held by the Trustee until such time that such Exercised Shares are released from the Trust as herein provided.

     

     Subject to the terms hereof, at any time after
        the Awards are exercised or vested, with respect to any Exercised Shares the following shall apply:

     

    Upon the written request of any Beneficial Grantee, the Trustee shall release from the Trust the Exercised Shares issued, on behalf of
      such Beneficial Grantee, by executing and delivering to the Company such instrument(s) as the Company may require, giving due notice of such release to such Beneficial Grantee, provided, however, that the Trustee shall not so release
      any such Exercised Shares to such Beneficial Grantee unless the latter, prior to, or concurrently with, such release, provides the Trustee with evidence, satisfactory in form and substance to the Trustee, that payment of all taxes, if any, required
      to be paid upon such release has been secured.

     

    Alternatively, subject to the terms hereof, provided the Shares are listed on a stock market, upon the written instructions of the
      Beneficial Grantee to sell any Exercise Shares, the Company and/or the Trustee shall use their reasonable efforts to effect such sale and shall transfer such Shares to the purchaser thereof concurrently with the receipt of, or after having made
      suitable arrangements to secure, the payment of the proceeds of the purchase price in such transaction. The Company and/or the Trustee, as applicable, shall withhold from such proceeds any and all taxes required to be paid in respect of such sale,
      shall remit the amount so withheld to the appropriate tax authorities and shall pay the balance thereof directly to the Beneficial Grantee, reporting to such Beneficial Grantee the amount so withheld and paid to said tax authorities.

     

    Voting Rights. Unless determined otherwise
        by the Administrator, as long as the Trustee holds the Exercised Shares, the voting rights at the Company’s general meeting attached to such Exercised Shares will remain with the Trustee. However, the Trustee shall not be obligated to exercise such
        voting rights at general meetings nor notify the Grantee of any Shares held in the Trust, of any meeting of the Company’s shareholders.

     

    Without derogating from the above, with respect to 102 Awards, such shares shall be voted in accordance with the provisions of Section
      102 and any rules, regulations or orders promulgated thereunder.

    

    

    
      16

      
        

    

     

    Dividends. Subject to any applicable law,
        tax ruling or guidelines of the Israeli Tax Authority, as applicable, for so long as Shares deposited with the Trustee on behalf of a Beneficial Grantee are held in Trust, the cash dividends paid or distributed with respect thereto shall be
        distributed directly to such Beneficial Grantee, subject further to any applicable taxation on distribution of dividends, and when applicable subject to the provisions of Section 102 of the Tax Ordinance, the 102 Rules and the regulations or orders
        promulgated thereunder.

     

    Notice of Exercise. With respect to a 102
        Award held in the Trust, a copy of any Notice of Exercise shall be provided to the Trustee, in such form and method as may be determined by the Trustee in accordance with the requirements of Section 102 of the Tax Ordinance.

     

    Notice of grant:

     

    The Notice of Grant shall state, inter alia, whether the Awards granted to Israeli Grantees
      are 102 Awards (and in particular whether the 102 Awards are granted under the Ordinary Income Route, the Capital Gains Route or as 102(c) Awards) or 3(i) Awards. Each Notice of Grant evidencing a 102 Award or 3(i) Award shall be subject to the
      provisions of the Tax Ordinance applicable to such awards.

     

    Furthermore, each Grantee of a 102 Award under a Taxation Route shall be required: (i) to execute a declaration stating that he or she
      is familiar with the provisions of Section 102 of the Tax Ordinance and the applicable Taxation Route; and (ii) to undertake not to sell or transfer the Awards and/or the Exercised Shares prior to the lapse of the applicable Minimum Trust Period,
      unless he or she pays all taxes that may arise in connection with such sale and/or transfer.

     

    Sale:

     

    In the event of a Sale described in Section 12.7 of the Plan, with respect to Shares held in Trust the following procedure will be
      applied, unless determined otherwise by the Administrator: The Trustee will transfer the Shares held in Trust and sign any document in order to effectuate the transfer of Shares, including share transfer deeds, provided, however, that the Trustee
      receives a notice from the Administrator, specifying that: (i) all or substantially all of the issued outstanding share capital of the Company is to be sold, and therefore the Trustee is obligated to transfer the Shares held in Trust under the
      provisions of Section 12.7 of the Plan; and (ii) the Company is obligated to withhold at the source all taxes required to be paid upon release of the Shares from the Trust and to provide the Trustee with evidence, satisfactory to the Trustee, that
      such taxes indeed have been paid; and (iii) the Company is obligated to transfer the consideration for the Shares (less applicable tax and compulsory payments) directly to the Grantees.

     

    Limitations of Transfer:

     

    In addition to the provisions of Section 13 of the Plan, as long as Awards and/or Shares are held by the Trustee on behalf of the
      Grantee, all rights of the Grantee over the Shares are personal, cannot be transferred, assigned, pledged or mortgaged, other than by will or pursuant to the laws of descent and distribution.

    
      17

      
        

    

    
     

    Taxation:

     

    Without derogating from the provisions of Section 15 of the Plan, the provisions of Section 15.1 of the Plan shall apply also to actions
      taken by the Trustee. Accordingly, without derogating from the provisions of Section 15.1 of the Plan, the Grantee shall indemnify the Trustee and hold it harmless against and from any and all liability for any such Tax, including without limitation,
      monetary liabilities relating to the necessity to withhold, or to have withheld, any such Tax from any payment made to the Grantee.

     

    The Trustee shall not be required to release any Share (or Share certificate) to a Grantee until all required Tax payments have been
      fully made or secured.

     

    With regards to 102 Awards, any provision of Section 102 of the Tax Ordinance, the 102 Rules and the regulations or orders promulgated
      thereunder, which is necessary in order to receive and/or to preserve any Tax treatment pursuant to Section 102 of the Tax Ordinance, which is not expressly specified in the Plan or in this Addendum, shall be considered binding upon the Company and
      the Israeli Grantee.

     

    Guarantee. In the event a 102(c) Award is
        granted to a Grantee, and in the event of Cessation of Service, such Grantee shall provide the Company, to its full satisfaction, with a guarantee or collateral securing the future payment of all Taxes required to be paid upon the sale of the
        Exercised Shares received upon exercise of such 102(c) Award, all in accordance with the provisions of Section 102 of the Tax Ordinance, the 102 Rules and the regulations or orders promulgated thereunder.

      

    
      18

      
        

    

    APPENDIX “A”

     

    TOWER SEMICONDUCTOR LTD.

     

    ADDENDUM TO THE 2013 SHARE INCENTIVE PLAN

        FOR GRANTEES WHO ARE CITIZENS OF THE UNITED STATES OR RESIDENT ALIENS

     

            Notwithstanding anything to the contrary contained in the Plan, for an Award granted to a Grantee who is subject to federal
      income tax under the laws of the United States, the following requirements shall apply:

     

    Awards granted to US residents will be made as nonqualified options (“NQO”) and/or as Restricted Stock Units (“RSU’s”).

     

    The Exercise Price per share under each NQO shall be not less than 100% of the fair market value of a Share on the Date of Grant of such
      NQO

     

    For all purposes of this Appendix A, the term “fair market value”, as used by reference to the Shares on the Date of Grant, shall mean
      the closing price of the Company’s Shares, as quoted on the NASDAQ market or the principal national securities exchange upon which the Company’s Shares are listed or traded for the last market trading day prior to the Date of Grant, or if a closing
      sales price is not quoted on such date– the closing Share price as quoted on the NASDAQ market or such other exchange on the first date following such date for which a closing sales price is quoted.  If the Company’s Shares are not listed on NASDAQ
      or such other exchange, “fair market value” of the Shares on the Date of Grant shall be determined by the Administrator in good faith in a manner consistent with Code Section 409A.

     

    Such NQO grant shall be made, construed and administered in all respects to comply with the requirements of Section 409A of the Internal
      Revenue Code of 1986, as amended. Without limiting the generality of the foregoing, and notwithstanding Section 12.2 of the Plan to the contrary, or otherwise, the Exercise Price per share under any NQO shall not be reduced after such NQO is granted,
      and no NQO shall be amended, if such reduction or amendment would cause noncompliance with the requirements of Section 409A. For purposes of granting NQOs, an entity may not be considered an Affiliate if it results in noncompliance with Section
      409A.  To the extent that the Administrator determines that a Grantee would be subject to the additional 20% tax imposed on certain nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision of any Award granted
      under this Plan, such provision shall be deemed amended, without consent of the Grantee, to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Administrator.

     

    Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered
      into by a Grantee with the Company or any Affiliate, except an agreement, contract, or understanding that expressly addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and notwithstanding any formal or informal plan or other
      arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form
      of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Option or RSU held by that Grantee and any right to receive any payment or other benefit under
      this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and
      all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”)  and  (ii) if, as a
      result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be
      received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights,
      payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee to be considered to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax
      amount received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and
      any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee under this Plan be deemed to be a Parachute Payment.

     

    

  

  19Exhibit 4.4

      

    
      
        

        

      

      Pursuant to Instruction 4(a) to Form 20-F, certain identified information (marked by
        [***]) has been excluded from the 

        exhibit because it is both not material and is the type that the registrant treats as private or confidential.

       

      CONTRACT FOR THE ESTABLISHMENT

      OF AN INTERNAL CONSORTIUM

      (“Consorzio ad attività interna”)

       

      This Contract for the establishment of an internal consortium (“Consorzio ad attività
          interna”) (hereinafter “Contract”) is made this 23rd day of June, 2021 (the “Effective Date”) by and between

       

      STMicroelectronics S.r.l., a company incorporated and existing under the laws of Italy, having its registered office at Via Camillo Olivetti n. 2, 20864, Agrate Brianza (MB), Italy, subject to
          the direction and coordination of the sole shareholder STMicroelectronics NV with registered office in Amsterdam (Netherlands), (hereinafter “ST”),

       

      and

       

      Tower Semiconductor Ltd., a company incorporated and existing under the laws of Israel, having its registered office at Ramat Gavriel Industrial Park, P.O. Box 619 Migdal Haemek, Israel
          (hereinafter “Tower”).

       

      ST and Tower are hereinafter referred to individually as a “Party” and collectively as
        the “Parties”.

       

      WHEREAS:

       

      a.            the
          Parties, directly or through their affiliates, have entered into a certain Non-Disclosure Agreement dated [xxx] (hereinafter “NDA”) in order to exchange confidential information for the purpose of
          evaluating potential strategic opportunities;

       

      b.           in
          pursuing the above strategic opportunities, the Parties have started to discuss to collaborate in operating “R3” plant located within ST’s manufacturing site in Agrate Brianza, Italy (the “Project”) and to
          set up, for this purpose, a cost-pooling vehicle under the Italian legal form of an internal consortium (“Consorzio ad attività interna”) (hereinafter “Consortium”);

       

      c.          further
          to the discussions above, the Parties entered into a non-binding Memorandum of Understanding on [***] to confirm certain of their non-binding understandings and general intentions, and to pursue their discussions and negotiations, in connection
          with the Project (hereinafter “MoU”);

       

      d.            in
          pursuance of the MoU, the Parties now wish to enter into a legally binding agreement for the establishment of the Consortium in accordance with the terms and conditions hereof.

       

      IT IS HEREBY UNDERSTOOD AND AGREED AS FOLLOWS:

       

      ARTICLE 1 – DEFINITIONS AND INTERPRETATIONS

       

      1.1          Defined Terms. Capitalized terms shall have the meanings attributed next to them in this Contract.

      
        
          

      

      
       

      1.2          Interpretation. The following provisions shall apply in connection with the interpretation of this Contract:

       

      	

            	1.2.1	
              Unless stated otherwise, any reference herein to Articles, Sections or Annexes refers to Articles or Sections of or Annexes to this Contract.

            

       

      	

            	1.2.2	
              The words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Contract, shall refer to this Contract as a whole and not to any particular provision of this Contract.

            

       

      	

            	1.2.3	
              All Annexes form an integral part of this Contract and are equally binding herewith. Any reference to this Contract shall include such Annexes.

            

       

      	

            	1.2.4	
              Unless the context shall otherwise require, any reference to any contract, instrument, statute, rule or regulation is a reference to it as amended and supplemented from time to time (and, in the case of a statute, rule or regulation, to
                any successor provision).  Any references to a statutory provision shall include any rules or regulations under such statutory provision.

            

       

      	

            	1.2.5	
              The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation”.

            

       

      	

            	1.2.6	
              The descriptive headings contained in this Contract are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Contract.

            

       

      	

            	1.2.7	
              Any reference in this Contract to a “day” or a number of “days” (without the explicit qualification of “business”) shall be interpreted as a reference to a calendar day or number of calendar days. If any date provided for in this
                Contract falls on a Friday, Saturday, Sunday or legal holiday in Italy or in Israel, such date shall be deemed extended to the next business day. For the purpose of this Contract “business day” means a day that is not a Friday, Saturday, a
                Sunday or a legal holiday in Italy or in Israel.

            

       

      	

            	1.2.8	
              Words, expressions, and phrases of a technical nature that are not otherwise defined herein, shall be interpreted under the recognized and well known technical and trade meaning used in the semiconductor industry.

            

      

      

      ARTICLE 2 – OBJECT OF THE CONTRACT

       

      2.1          Italian company. Tower shall set up and establish a company totally owned by Tower, registered in and existing under the laws of Italy, (hereinafter “NewItCo”) by December 31, 2021 (hereinafter the “Deadline”).

       

      2.2          Consortium. The Parties agree that ST and NewItCo shall constitute a Consortium in accordance with articles 2602 et seq. of the Italian Civil Code and shall sign the
          consortium agreement in the form attached hereto as Annex 1 (hereinafter “Consortium Agreement”), which the Parties negotiated and agreed as final. Tower shall immediately notify in writing ST as
          soon as NewItCo is validly established. The Consortium Agreement will be signed by ST and NewItCo within 21 days from such notification.

       

      2.3          Liability. Tower shall cause NewItCo to sign the Consortium Agreement in accordance with Article 2.2. Tower’s failure to establish the NewItCo in accordance with Section
          2.1 by the Deadline or NewItCo’s failure to sign the Consortium Agreement in accordance with Section 2.2 will constitute a Tower’s breach of this Contract. ST's failure to sign the Consortium Agreement in accordance with Section 2.2 will
          constitute ST's breach of this Contract.

       

      ARTICLE 3 – CONFIDENTIALITY

       

      The Parties agree that they shall not disclose and shall keep confidential any information furnished to them by the other
        Party in connection with the Project, all as further set forth in the NDA, which is in any case deemed to be and remain effective during the term of this Contract as well as thereafter to the extent so provided in the NDA. The Parties also agree
        that they shall not disclose the existence, conduct or status of negotiations and actions contemplated in this Contract to any third party without the prior written consent of the other Party.

      
        2

        
          

      

       

      ARTICLE 4 – TERM AND TERMINATION.

       

      4.1          Term. This Contract shall become effective on the Effective Date and shall automatically terminate on the earlier of January 21, 2022
            or the date of execution of the Consortium Agreement, unless extended by written agreement or terminated by either Party pursuant to Section 4.2.

       

      4.2          Termination.

       

      4.2.1       Termination by ST. ST may terminate this Contract with immediate effect upon written notice of termination to Tower if:

       

      	

            	(i)	
              Tower becomes Insolvent;

            

       

      	

            	(ii)	
              Tower is in breach of this Contract pursuant to Section 2.3.

            

       

      4.2.2        Termination by Tower. Tower may terminate this Contract with immediate effect upon written notice of termination to ST if:

       
        	

              	(i)	
                
                  ST or STMicroelectronics NV becomes Insolvent;

                

              

         
          	

                	(ii)	
                  
                    ST is in breach of this Contract pursuant to Section 2.3.

                  

                

           

        

      

      4.2.3 Withdrawal. Pursuant to section 4.2.5 either Party may withdraw from this Contract if the other Party (or, in ST's case also its holding company
          STMicroelectronics N.V. (“ST NV”)) is subject to a Change of Control.

       

      4.2.4 For the purposes of this Section 4.2:

       

      “Insolvent” means, in respect of a Party, where that Party: (i) passes a resolution
        for its winding up; (ii) is subject to an order or notice issued by a court or other authority of competent jurisdiction for its winding up or striking off; (iii) enters administration for its winding up at any court; (iv) is subject to, a company
        voluntary arrangement or a composition with its creditors generally; (v) has a receiver or a provisional liquidator appointed or a person becomes entitled to appoint a receiver or provisional liquidator over any of its assets, undertaking or
        income; (vi) suspends or ceases to carry on all or a substantial part of its business; (vii) admits inability to pay its debts or is deemed unable to pay its debts; (viii) any act is done or event occurs which (under applicable laws) has a similar
        effect to these foregoing acts or events; or (ix) is the subject of anything analogous to the foregoing under the laws of any applicable jurisdiction.

       

      “Change of Control” or “COC” means any act,
        transfer or transaction resulting in a Competitor of the other Party that (i) acquires more than 50% of Tower or ST or ST NV shares, or (ii) acquires the ability to appoint the majority of the Board of Directors or similar corporate body of Tower
        or ST or ST NV, or (iii) acquires substantially all of the assets of Tower or ST or ST NV.

       

      “Competitor” means any Person [***]

       

      4.2.5. In the event that a Change of Control occurs, the relevant Party shall notify in writing the other Party providing details about the Competitor that acquires control
          of such relevant Party. Such notification will be made within 21 days as from the effectiveness of the Change of Control. The other Party shall be entitled to exercise its withdrawal rights pursuant to section 4.2.3, within 21 days as from
          receipt of such notification. Such termination rights shall cease to be effective with respect to the notified Change of Control in case they are not exercised within said 21 days term. If such withdrawal rights are not exercised by the other
          Party, the Contract shall continue under the same terms hereunder. The Parties acknowledge and agree that, in the event of exercise of the withdrawal rights pursuant to this section 4.2.5, neither Party shall be liable to the other for any reason
          or title, except for any obligation due until the effective date of the withdrawal.

      
        3

        
          

      

       

      ARTICLE 5 – EXPENSES.

       

      Each Party shall be responsible for and shall bear its own costs and expenses, in connection with the preparation of this
        Contract and the Consortium Agreement or any further agreement related to the Project, including attorney or consultant fees.

       

      ARTICLE 6 – GOVERNING LAW AND
            DISPUTES.

       

      6.1           Governing Law. This Contract shall be governed by and
            construed in accordance with the laws of Italy, without regard to its conflict of laws rules.

       

      6.2          Disputes. Any and all disputes, differences or questions arising out of or in connection with this Contract shall be settled by the Courts of Milan, Italy, without prejudice to
          the provisions set forth in the NDA. Notwithstanding the foregoing, nothing in this Section 6.2 shall prevent the Parties from seeking any injunctive or equitable relief by a court of competent jurisdiction.

       

      ARTICLE 7 – MISCELLANEOUS.

       

      7.1          MoU. The Parties agree that by executing this Contract the MoU shall automatically terminate in accordance with Section 5 of the MoU.

       

      7.2          No Partnership. Nothing in this Contract shall create a joint venture, partnership or principal-agent relationship between the Parties and neither Party shall have the
          right to bind the other or make commitments on the other’s behalf.

       

      7.3          Assignment. Neither Party shall assign or transfer any of its rights or obligations hereunder without the prior written consent of the other Party hereto. This Contract
          shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Any attempted assignment other than in strict compliance with this Section 7.3 shall be null and void.

       

      7.4          Notices. All notices required or permitted hereunder shall be in writing and shall be deemed delivered upon hand delivery, or upon receipt if sent by world renown
          overnight courier or mailed by registered or certified mail, return receipt requested, postage prepaid, by email to the person representing the Party as indicated below, sent to a Party at its address set forth below or such other address as a
          Party may notify the other from time to time.

      
        4

        
          

      

       

      To ST:

       

      STMicroelectronics S.r.l.

       

      Via C. Olivetti 2

      20864 Agrate Brianza

      Italy

      Attention: Legal Department

      Email: [***]

       

      To Tower:

      Tower Semiconductor Ltd.

      P.O. Box 619

      Migdal Haemel 23105

      Attn: Legal Dept

      Email: [***]

       

      7.5          Waiver. A waiver of any right hereunder shall in no way waive any other rights. No waiver, alteration, modification or amendment of this Contract shall be effective unless
          in writing and signed by both Parties.

       

      7.6          Invalidity. In the event that any provision of this Contract is held to be invalid, illegal or unenforceable, such provision shall be deemed amended to achieve the
          economic effect of the intent of the Parties in a valid, lawful and enforceable manner, or if not possible, be deleted and ineffective to the extent thereof, without affecting any other provision of the Contract.

       

      7.7          Execution. This Contract may be executed in counterparts (and may be exchanged by e-mail when signed), each of which shall be deemed to be an original, and all of such
          counterparts shall together constitute one instrument.

       

      The preceding statements accurately represent the intentions of the Parties with respect to the matter contained herein as
        confirmed by their signatures below.

       

      IN WITNESS
          WHEREOF, duly authorized representatives of each Party have executed this Contract.

       

      
        	
                STMicroelectronics S.r.l.

                 

                  

                 

                
                  _______________________________

                   

                    

                  Name:

                            
                    Title:  

                      

                     

                

              	
                Tower Semiconductor Ltd.

                

                  _______________________________

                  

                    Name:   

                    

                   

                    

                  Title:       

                  

              

      

       

      

      
        5

        
          

      

      

      R3 CONSORTIUM AGREEMENT

      

      

      THIS R3 Consortium Agreement (the “Agreement”), is entered into by and between STMicroelectronics S.r.l., an Italian company, having registered offices in Via C. Olivetti 2, Agrate Brianza, Italy, registered with the Company Register of Monza and Brianza under no. 09291380153, share
          capital of Euro 580,000,000.00, VAT no. 00951900968, subject to the direction and coordination of the sole shareholder STMicroelectronics NV with registered office in Amsterdam (Netherlands) (“ST”) and Tower Semiconductor Italy S.r.l., an Italian company, having registered offices in Via della Posta 7, Milan, Italy, registered with the Company Register of Milan under no. no. 2632321, share capital of Euro
          10,000.00, VAT no. 11948810962, subject to the direction and coordination of the sole shareholder Tower Semiconductor, Ltd. with registered office in Israel (“TSIT”). ST and TSIT are referred to herein
          individually as a “Participant” and collectively as the “Participants”.

      

      

      WHEREAS, the Participants develop and/or fabricate semiconductors;

      

      

      WHEREAS, the Participants intend to collaborate through the creation of a cost-pooling vehicle (the Consortium, as defined in Section 4.1) to operate the facility named “R3”
          located in Via C. Olivetti 2, Agrate Brianza, Italy (the “Facility”), through which the Participants will perform and obtain manufacturing processing activities and other operational tasks and share the
          Facility end state capacity 67 ST:33 TSIT between the Participants as set forth herein;

      

      

      WHEREAS, pursuant to this Agreement, the Facility will be operated by ST personnel and personnel who will be seconded from TSIT to ST, and ST will be responsible for the
          organization and coordination of all personnel engaged in activities at the Facility;

      

      

      WHEREAS, in relation to the secondment of TSIT’s personnel, the Participants acknowledge they will execute an Intercompany Secondment Agreement;

      

      

      WHEREAS, the Consortium will have a dedicated and transparent accounting and reporting process to provide complete, accurate and transparent
          financial information to the Participants, based on a common agreed information and reporting system, as detailed herein;

      

      

      WHEREAS, the Participants believe that under Italian law the most efficient instrument to implement this cost-pooling unit is an internal
          consortium (“consorzio con attività interna”);

      

      

      NOW, THEREFORE, in consideration of the foregoing premises, and the mutual covenants and agreements, representations and warranties set forth
          herein, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged and accepted by each Participant, and intending to be legally bound hereby, the Participants agree as follows:

      

      

      ARTICLE 1 -DEFINITIONS AND INTERPRETATION

      

      

      	1.1.1	
              Defined Terms. Capitalized terms used in this Agreement shall have the meanings specified in Exhibit A.

            

      

      

      	1.1.2	
              Interpretation. The following provisions shall apply in connection with the interpretation of this Agreement:

            

      

      

      	

            	a)	
              Unless stated otherwise, any reference herein to Articles, Sections or Exhibits refers to Articles or Sections of or Exhibits to this Agreement.

            

      	

            	b)	
              The words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

            

       

      

      
        6

        
          

      

      	

            	c)	
              All Exhibits form an integral part of this Agreement and are equally binding herewith.  Any reference to this Agreement shall include such Exhibits.

            

      	

            	d)	
              Unless the context shall otherwise require, any reference to any contract, instrument, statute, rule or regulation is a reference to it as amended and supplemented from time to time (and, in the case of a statute, rule or regulation, to
                any successor provision).  Any references to a statutory provision shall include any rules or regulations under such statutory provision.

            

      	

            	e)	
              The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation”.

            

      	

            	f)	
              Any reference in this Agreement to a “day” or a number of “days” (without the explicit qualification of “business”) shall be interpreted as a reference to a calendar day or number of calendar days. If any date provided for in this
                Agreement falls on a Friday, Saturday, Sunday or legal holiday in Italy or in Israel, such date shall be deemed extended to the next business day. For the purpose of this Agreement “business day” means a day that is not a Friday, Saturday,
                a Sunday or a legal holiday in Italy or in Israel.

            

      	

            	g)	
              The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

            

      	

            	h)	
              Words, expressions, and phrases of a technical nature that are not otherwise defined herein, shall be interpreted under the recognized and well known technical and trade meaning used in the semiconductor industry.

            

      

      

      ARTICLE 2 – REPRESENTATIONS AND WARRANTIES OF EACH PARTICIPANT

      

      

      2.1 Each Participant represents and warrants to the other that all of the statements with respect to such Participant contained in this Article 2 are true, accurate and complete as of the
          date of this Agreement.

      

      

      2.2 Organization and Authority. Each Participant is a company duly incorporated and validly existing under the laws of Italy and has all necessary corporate power and authority (i) to execute this
          Agreement, (ii) to carry out the obligations hereunder, and (iii) to consummate the transactions contemplated hereby. The execution by each Participant of this Agreement, the performance by each Participant of its obligations hereunder and the
          consummation by each Participant of the transactions contemplated hereby have been duly authorized by all requisite action of each Participant. Each Participant has duly executed this Agreement, and this Agreement constitutes a legal, valid and
          binding obligation of each Participant, and is enforceable against each Participant in accordance with its terms.

      

      

      2.3 No Conflict. The execution and performance of this Agreement by any Participant does not and will not (i) violate, conflict with or result in the breach of any provision of the
          articles of association, by-laws or other organizational documents of such Participant, or (ii) conflict with or violate any law or governmental order.

      

      

      2.4 Compliance with Law. Each of the Participants is in compliance with any and all tax and accounting, labour and social contributions, environmental, health and safety laws, corporate law
          applicable to this Agreement, the Facility and/or equipment dedicated to the Consortium and/or the employees that work in the Consortium.

      

      

      ARTICLE 3 – EFFECTIVE DATE

      

      

      This Agreement is effective as of September 14, 2021 (the “Effective Date”).

      

      

      ARTICLE 4 – THE ORGANIZATION

      

      

      4.1 Constitution. In accordance with articles 2602 et seq. of the Italian Civil Code (the “Code”), the Participants hereby constitute a common organization named “Consorzio R3” (“consorzio con attività interna”) (the “Consortium”) and agree to operate the Consortium in compliance with the provisions, principles and guidelines set forth herein.

      
        7

        
          

      

      

      

      4.2 No External Activities. The Consortium shall not perform external activities with third Persons and, therefore, articles 2612 to 2615-bis of the Code are not applicable to the Consortium or
          this Agreement.

      

      

      4.3 Membership. The Participants are the only two members of the Consortium. Consortium membership is not open to third Persons. No Participant may be excluded from the Consortium
          without its written consent.

      

      

      4.4 Duration. The Agreement shall be effective as of the Effective Date and until the fifteenth (15th) anniversary of the Effective Date, unless the Consortium is
          terminated before then pursuant to Section 11 below. Each year thereafter, the Agreement shall be automatically renewed for a one-year period unless notice of non-renewal is provided in writing by either Party to the other Party 24 months prior
          to any such termination date.

      

      

      4.5 Main Office. The Facility shall be the main office of the Consortium.

      

      

      ARTICLE 5 – CONSORTIUM SCOPE AND ACTIVITIES

      

      

      5.1 Scope.

      

      

      5.1.1 The Consortium’s purpose is to coordinate the activities of the Participants with the aim of defining, as set forth in this Article 5, the Participants’ collaboration in operating the
          Facility through the utilization of a cost-pooling vehicle that shall define, in the interest of both Participants, the Consortium’s activities and other operational tasks to support such collaboration in accordance with this Agreement and to
          improve the Participants’ production, efficiency, cycle time, yield and results. The operational and financial matters concerning the Consortium and the management and operation of the Facility shall be governed by the Operational and Accounting
          Procedures Manual (as set forth in Exhibit B). The engagement of the employees shall be governed by the intercompany secondment agreement to be signed by the Participants.

      

      

      5.1.2 The Participants agree to share the available clean room area of the Facility throughout the Consortium between the Participants so that ST will use 67% and TSIT 33% of the installed
          capacity [xxx]  (such allocation of capacity hereunder referred also as “67:33”), except for the interim capacity for each Participant’s technology during the ramp-up phase per Section 5.4.1. For purposes
          of cost calculation in this Agreement, [***] defined herein shall be used.

      

      

      Capacity is determined following the SEMI E10 standard definitions.

      

      

      In addition, the Participants can define [***] for their respective process flows which will combine a set of operations
        required to complete one wafer on a specific set of tools using specified recipes and which shall be identical for both Participants [***].

      

      

      5.1.3 The technology scope of the Consortium activities is planned to be but not limited to:

       

      	

            	•	
              [***]

            

       

      5.1.4 No wafer finishing [***]  of TSIT products is planned to take place inside the Consortium but can be subject of a separate service agreement between the Participants. Parametric test is
          part of the Consortium operations.

      

      

      5.1.5 Joint R&D programs are not part of the scope of this Agreement. Should the Participants be interested in performing such joint R&D programs, they shall enter into a separate
          joint development agreement.

      
        8

        
          

      

      

      

      5.1.6 Within the Consortium, ST and TSIT shall be entitled to perform their own R&D projects through their own personnel listed in respectively Exhibit C1bis and Exhibit C3bis, as may be
          updated from time to time, provided that [***]  shall be applied to the relevant personnel costs. [***]

      

      

      5.1.7 After the ramp-up phase, (i) wafers required for R&D Projects carried out by either of the Participants will be accounted for [***] to reflect the impact on capacity and efforts; and
          (ii) the Participants agree to not use for R&D Projects more than [***] of total [***], unless otherwise agreed by the Participants with respect to specific R&D Projects.  R&D Projects shall be defined as projects for development of
          new process technology that was not running in production at the Facility.

      

      

      5.2 Time frames The Participants shall make their best efforts to achieve the time frames set forth in the Exhibit D provided that, unless otherwise
          expressly agreed in the Agreement, such time frames are tentative, where tentative means that they are based on current assumptions as of the Effective Date and accordingly subject to adjustment in case of changes to current assumptions. Such
          changes shall be communicated by either Party to the other Party promptly upon occurrence and shall be discussed and approved by both Parties.

      

      

      5.3 Pilot Line Phase – Process Installation & Qualification

      

      

      5.3.1 The Facility constructed by ST will provide a clean room area of approx. [**] at Full Build Out stage (FBO) including the facilitation of approx. 8,000 m2 (= Half Build Out or
          HBO) of the total possible clean room space.

       

      5.3.2 ST will install a pilot line at its own cost, including [***], as listed in Exhibit C2bis. The pilot line will have a capacity of approx. [***] wafers out per week (“wpw”) and a
          technical capability to accommodate technologies [***] (CD).

       

      5.3.3 TSIT will complement the pilot line with its Tools required to run its technologies [***]. The TSIT Tools are listed in Exhibit C4bis. The Tools will be delivered to the Facility and
          stored at the Facility until installation.

       

      5.3.4 The pilot line will be used by both Participants to qualify their respective technologies. TSIT and
        ST integration personnel will conduct and be responsible of the implementation of their process(es) in the pilot line using the fab engineering teams.

       

      5.3.5 The TSIT process technologies will be installed in the pilot line by a dedicated TSIT integration and device team.  The process and other engineering support shall be provided by [***].

       

      5.4 Phase I – until Fully equipped HBO – Ramp-up phase

       

      5.4.1 In parallel to the technology qualification, TSIT’s goal is to install Tools for [***] outs per week for its technologies - subject to its business projection supporting the need for
          that capacity. The Participants agree that TSIT shall start installation of tools required for such capacity after completion of the installation of the pilot line by ST. In parallel, ST’s goal is to [***] for its technologies subject to its
          business projection supporting the need for that capacity. The abovementioned ML may increase per the installed capacity in accordance with the 67:33 ratio. In Phase I, the final maximum capacity installation shall be determined based on the
          exact number of tools, the respective tool configurations and hook up requirements, but will in any case not exceed the clean room space available in HBO [***] and preserve the capacity ratio as described above.

      

      

      5.4.2 With reference to the above installed capacity, the Participants agree to install Tools in accordance with the ramp up schedule set forth in Exhibit D. In case of changes in respective
          capacities in any case shall not derogate from the goals set forth in Section 5.4.1 and the end goal of 67:33 capacity ownership ratio, as stated in above Section 5.1.2.

       

      5.4.3 Ramp-up phase will start upon completion of TSIT’s technology qualification (tentatively targeted for [***] as per Exhibit D), and will continue until achievement of fully equipped HBO,
          and, for the purpose of this Agreement, will be deemed completed [***] from the start of ramp-up phase or [***] whichever date occurs earlier (“Ramp-up Deadline”) regardless of whether fully equipped HBO
          has been actually achieved or not within the Ramp-Up Deadline.

      
        9

        
          

      

       

      5.5 Phase II:  Capacity expansion from fully equipped HBO (half build out) to FBO (full build out)

      

      

      5.5.1 TSIT can submit a proposal for a capacity expansion beyond the HBO clean room to the Consortium Board not later [***]. Board evaluation shall be completed within a maximum of [***]
          business days from receipt of the proposal.

          

        

      	(i)	
              In case the outcome of Board evaluation is that both Participants decide to increase the capacity beyond HBO clean room area in parallel, the CAPEX required for the facilities expansion, as reviewed and approved by the Board, will be
                covered [***] with an agreed upon 33% of the required CAPEX to be paid [***].

            

       

      	(ii)	
              [***]

            

       

      5.5.2 ST at any time, and after informing the Board, has the right to expand its capacity beyond HBO at its own discretion in line with the agreed upon overall Facility capacity split of 67:33
          between the Participants. In this case, no payment and no cost sharing or cost reconciliation will be made by or for TSIT.

       

      5.5.3 Both Participants have the right to expand their installed capacity beyond the HBO state independent of each other following the facility expansion mentioned under
          this Section 5.5, but each of them can only go up to a clean room occupation that is substantially in line with the agreed-upon 67:33 share of the resulting overall capacity in its FBO stage unless agreed differently by the Participants.

       

      5.5.4 The Participants agree that the expansion under this Section 5.5 can be started also before reaching the fully equipped HBO.

       

      5.6 Cost Allocation & Sharing - General Alignment

       

      5.6.1. [***]

       

      5.6.2 [***]

       

      5.6.3 [***]

       

      5.6.4 [***]

      

      

      5.6.5. [***]

      

      

      5.7 Cost Models in the various phases of the Consortium

      

      

      5.7.1 Pilot Line & Process Installation and Qualification Phase

       

      5.7.1.1 [***]

       

      5.7.1.2 [***].

      

      

      5.7.1.3 TSIT Tools will get installed by ST targeted to be completed by [***] following the defined and agreed specifications to be provided by TSIT to ST.

      
        10

        
          

      

      

      

      5.7.1.4 The process installation of the TSIT technologies will be led by a TSIT process integration team at the Facility and supported by a ST process engineer team.

      

      

      5.7.2 Phase I - Ramp-up Phase

       

      Cost for ramp-up phase shall be paid as provided for in Section 7.2.4.

       

      As from achievement of the pilot line capacity set forth in Section 5.3.2 until the end of [***], upon request from TSIT, ST
        will provide TSIT with a maximum amount of [***] start per week [***].

       

      5.7.3 Cost from fully equipped HBO and onwards (Phase II and onwards until FBO)

       

      From fully equipped HBO or from Ramp-Up Deadline, whichever event occurs earlier, and onwards, TSIT will be charged for fixed
        and Variable Costs as per Operational and Accounting Procedures Manual as set forth in Exhibit B.

      

      

      5.8. Reticles, substrates and logistic costs

      

      

      5.8.1 Reticles/masks and substrates required by the Participant(s) within Consortium activities in each of the phases of the Consortium shall be procured and paid by [***]. 
          Such reticles and substrates will be delivered and stored properly by the Participants at [***].

      

      

      5.8.2 In each of the phases of the Consortium, logistics costs to ship wafers back and forth between [***] shall be paid by [***].

      

      

      5.9 Equipment and Building/Facility

       

      5.9.1 The Participants agree:

       

      	

            	•	
              to aim at the highest level of equipment commonality to ensure future flexibility and benefit from possible CAPEX reduction;

            

       

      	

            	•	
              to use the toolset used by [***] as a guiding tool selection principle to which the Facility tool set has to converge as much as technically and economically feasible;

            

       

      	

            	•	
              to invest in the equipment required to install their respective agreed capacity, including required Tools;

            

       

      	

            	•	
              to align the process control plan requirements as much as possible to the [***] in order to ensure similar [***]  Equipment requirements – both in terms of capabilities and capacity.

            

      

      

      5.9.2 Process Tools:

       

      	

            	•	
              Dedicated process Tools that are utilized by only one of the Participants will be purchased and installed at the cost of [***].

            

       

      	

            	•	
              The total CAPEX for the Common Tools required to achieve the agreed upon capacity for TSIT and ST will be determined by the required tool capacity of both Participants using the agreed upon [***]

            

       

      	

            	•	
              The total CAPEX for the Common Tools will be [***].

            

       

      	

            	•	
              The Common Tools will be assigned to the two Participants using the [***].

            

       

      	

            	•	
              This process will be repeated until all Common Tools have been allocated and both Participants contribute their overall CAPEX quota based on their overall capacity utilization.

            

       

      	

            	•	
              Any facility installation required exclusively for the installation and/or the operation of TSIT dedicated Tools [***] will be charged to [***]. In case TSIT decides to remove Tools dedicated to them that require a special and exclusive
                installation, such installations have to be [***].

            

       

      
        11

        
          

      

      5.9.3 Non-process Tools:

       

      5.9.3.1 Bright Field, Dark Field & Defect Review Tools:

       

      [***]

       

      5.9.3.2 Other [***]  Tools & Parametric Tester:

       

      Other [***] tools & parametric tester will be purchased by [***] and the resulting running costs, [***]  will be shared
        [***].

       

      5.9.3.3 Handling tools and other auxiliary equipment (FOUP CLEANER, ...)

       

      [***] tools and other auxiliary equipment will be purchased by [***] according to
        Allocation 2 as defined in Exhibit B.

       

      5.9.3.4 Reticle Stocker

       

      After the pilot line phase, [***]  shall purchase its [***] based on its respective needs. The Participants shall agree on a
        common model and supplier for these reticle stockers to optimize cost and spare parts.

       

      5.9.4 [***]

       

      5.9.5 [***]

       

      5.9.6 [***]

       

      5.9.7 [***]

       

      5.9.8 [***]. 

       

      5.10 Other Services

       

      From the ramp-up phase, in case TSIT is in the need of site services that are outside of Facility that support production or
        technology implementations, such as [***]  with respect to finished goods, such services will get charged to [***] based on [***]

       

      ARTICLE 6 – ORGANIZATION RULES

      

      

      6.1 The Consortium Board.

      

      

      	a)	
              The Participants shall establish a Board, comprised of six members (collectively, the “Members”), who are appointed in writing by the Participants as set forth below. The Members shall be
                identified and selected so that they will perform their assignments within the scope of their employment. ST shall have the right to appoint [***] Members in total, one of whom shall be a Co-Chairman as designated by ST, and TSIT shall have
                the right to appoint [***] Members in total, one of whom shall be a Co-Chairman as designated by TSIT. At all times hereunder, each Participant shall have the right to substitute any Member whom such Participant has appointed or to appoint
                a new Member in case of resignation or inability of such Member to discharge his or her duties. Moreover, each Member shall have the right to appoint by signed proxy another Member to vote at any Board meeting in the place and stead of such
                absent Member.

            

      

      

      	b)	
              The Members shall not be entitled to any remuneration or reimbursement for their position on the Board.

            

      

      

      	c)	
              The Board shall:

            

      

      

      	

            	i.	
              [***]

            

      	

            	ii.	
              [***]

            

      	

            	iii.	
              [***]

            

      	

            	iv.	
              [***]

            

       

      

      
        12

        
          

      

      	

            	v.	
              [***]

            

      	

            	vi.	
              [***]

            

      	

            	vii.	
              [***]

            

      

      

      	d)	
              The Board Co-Chairmen shall jointly (1) coordinate the activities of the Board; (2) liaise with the Financial Team and the Managers; and (3) keep the Participants informed of the Board’s activities. The Board shall meet at least once
                every calendar quarter. Each Member may propose agenda topics for the Board meetings.

            

      

      

      	e)	
              Board meetings shall be called by either Co-Chairman, by way of registered letter or e-mail message to be sent at least [***] in advance (or, in case of urgency, at least one day in advance) of the proposed meeting to each Member.
                Notwithstanding the foregoing, the Board may convene, even in the absence of a formal call, provided that all Members attend. In case of any urgent matter, both Participants have the option to call for an exceptional board meeting following
                an agreed upon invitation procedure.

            

      

      

      	f)	
              The Board meetings may also be held, and Members shall be entitled to participate in such meetings, by teleconference or videoconference, provided that in each such meeting all participating Members can be identified and can follow and
                take part in the Board’s discussion in real time. Unless otherwise specified, the Board shall meet at [***]

            

      

      

      	g)	
              The Board is considered validly convened and able to resolve upon the agenda with the presence of the majority of the Members in office, and the resolutions of the Board shall be validly adopted with the favorable vote of at least [***]
                Members.

            

      

      

      	h)	
              Members may also adopt their decisions through written consultation. Any Member may propose a resolution by sending it to all Members by mail, delivery service or in a PDF document by e-mail. The subject matter of the proposed
                resolution, any relevant information and the precise wording of the proposed resolution shall be clearly stated in the written consultation. Members shall reply to written consultation within [***]; provided, however, if the proposal
                indicates a different reply period, such period shall govern so long as it is not shorter than [***] nor longer than [***]. The reply shall be in a signed writing, sent to each Co-Chairman, by mail, delivery service or in a PDF document by
                e-mail.  The reply must either accept or reject the proposed resolution. If a reply is not received within the required period, the reply shall be considered as a rejection. For a resolution by written consent to be adopted by the Board,
                signed replies from at least [***] Members accepting the resolution must be received by each Co-Chairman within the required period. The Co-Chairmen shall collect all replies and, without delay, communicate the results to the Members and
                Participants and promptly register any validly adopted resolution in the Board’s resolution book.

            

      

      

      	i)	
              The Co-Chairmen, without delay, shall communicate any resolution of the Board to the Participants and shall register such resolution in the book of the resolutions of the Board, which shall be prepared and kept by the Board and which
                shall always be open to inspection by any Participant.

            

      

      

      6.2 Deadlock. A “Deadlock” shall occur with respect to any matter submitted to the vote of the Members at a Board meeting or in the form of
          a proposed written consent twice, if the favourable vote of [***] Members, as provided by Section 6.1. items g) or h), is not achieved both times or if a Board meeting cannot be held due to the lack of quorum twice (a “Tie Vote”), and during the [***] day period following this Tie Vote, the Board is unable or fails to break the Tie Vote (if the matter is presented in the form of a proposed written consent, the [***] day period shall commence on
          the date that the Member who was last to receive the proposal received it). During this [***] period, the Board shall seek in good faith to hold at least three (3) additional meetings at which it shall make a good faith effort to break the
          Deadlock.

      
        13

        
          

      

      

      

      6.3 Deadlock Resolution.  If a Deadlock occurs, the Participants shall:

      

      

      	

            	a)	
              first, submit the matter that was the subject of the Deadlock to the CEOs of ST and TSIT by providing notice of the Deadlock to such persons, and the Participants shall use reasonable efforts to cause such persons to make a good faith
                effort to hold at least [***] in-person meetings between them to resolve the Deadlock within sixty [***] of their receipt of the notice of Deadlock;

               

              

            

      	

            	b)	
              next, if the CEOs of each of TSIT and ST are unable to resolve the Deadlock in the given sixty [***], then submit the matter to the CEOs of each of ST’s ultimate parent company, STMicroelectronics N.V. (“ST
                  Parent”) and of TSIT ultimate company, Tower Semiconductor Ltd. (“TSIT Parent”) for resolution, and the Participants shall use reasonable efforts to cause such persons to make a good faith
                effort to hold at least [***] in-person meeting between them to resolve the Deadlock within [***]  days following the submission of the Deadlock to them;

               

              

            

      	

            	c)	
              next, if the CEOs of each of TSIT Parent and ST Parent are unable to resolve the Deadlock in the given thirty [***], either Participant may commence mediation by providing to the other Participant a written request for mediation, setting
                forth the subject of the Deadlock and the relief requested. The Participants will cooperate with one another in selecting a neutral mediator, and in scheduling the mediation proceedings to be held in Milan, Italy during the [***] days
                following the commencement of mediation. If the Participants are unable to agree on a neutral mediator within [***] days, then each Participant will select a neutral mediator, which neutral mediators will in turn select a third neutral
                mediator, and the three-mediator panel will conduct the mediation. The Participants covenant that they will participate in the mediation in good faith, and that they will share equally in its costs. All offers, promises, conduct and
                statements, whether oral or written, made in the course of the mediation by any of the Participants, by any of their respective agents, employees, experts and attorneys and by the mediator are confidential, privileged and inadmissible for
                any purpose, including impeachment, in any litigation or other proceeding involving the Participants; provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of
                its use in the mediation. Either Participant may seek equitable relief prior to the mediation to preserve the status quo pending the completion of that process. Any agreement reached through mediation process under this Section 6.3 (c) that
                is violated by one Participant, may be enforced by the other Participant before any court of competent jurisdiction, and the prevailing Participant shall be entitled to an award of all costs, fees and expenses, including attorneys’ fees,
                incurred for such enforcement to be paid by the losing Participant. If, after mediation, no agreement is reached by the Participants, then Section 13.3 shall apply.

            

      

      

      6.4 No Agency.  Neither the Board nor any Co-Chairman nor any Member nor the Manager nor any member of the Financial Team is vested with the power to represent, to undertake any
          liability or obligation on behalf of, or to legally bind, any of the Participants, vis-à-vis any third Persons without such Participant’s prior written consent.

      

      

      6.5 Financial Team. In addition to the controllers of the Facility, the Participants will appoint a financial and accounting team (the “Financial Team”)
          to produce and provide, in accordance with the provisions set forth in the Operational and Accounting Procedures Manual, financial information and records to the Participants and the Board, in accordance with applicable accounting standards,
          internal procedures and legal regulations, the needs of operational organization and in a manner that avoids duplication of administrative personnel.

      

      

      	

            	a)	
              The Financial Team shall be comprised of [***] members who are appointed in writing. ST shall have the right to appoint [***] member and TSIT shall have the right to appoint [***] member.

            

      

      

      	

            	b)	
              At all times and from time to time hereunder, each Participant shall have the right to remove and/or replace the member it appointed.

            

      

      

      
        14

        
          

      

      	

            	c)	
              The members of the Financial Team shall not be entitled to any remuneration or reimbursement for their position as a Financial Team member and shall be identified and selected so that they will perform the above assignments within the
                scope of their employment duties.

            

      

      

      	

            	d)	
              The Financial Team’s objectives and responsibilities are:

            

      

      

      	

            	i.	
              To ensure accurate financial reporting, information disclosure, data integrity and compliance with applicable accounting standards and procedures and ensure that the Consortium’s accounting procedures and internal controls comply with
                the highest standard of the Participants’ financial reporting.

            

      	

            	ii.	
              To provide, upon any reasonable request that does not interfere with the normal financial support of the Facility operations, timely, clear, reliable, and relevant information and detailed analyses to the Board and the Reference
                Management of each Participant.

            

      	

            	iii.	
              Upon invitation and as required, to attend meetings with the Reference Management of each Participant to explain (i) the activities of the Consortium and, (ii) with the simultaneous presence of the Board, the results of the Consortium’s
                operational plans.

            

      	

            	iv.	
              To continuously monitor the Consortium’s costs in order to provide the Board with accurate actual and forecasted costs and to support the actions necessary to comply with the Consortium budget approved by the Board.

            

      	

            	v.	
              To provide regular (at least on a quarterly basis) financial reporting, including accurate and justified financial information to the Board and the Reference Management of each Participant.

            

      	

            	vi.	
              To monitor the Consortium’s commitments, budgets, rolling forecasts and actual results, as agreed between the Participants and in accordance with this Agreement.

            

      	

            	vii.	
              To support Ad-hoc and ROI various analyses as may be required by the Board.

            

      	

            	viii.	
              To perform the cost equalization calculation based on Exhibit B.

            

      

      

      	

            	e)	
              The members of the Financial Team shall regularly meet and shall meet at least once a month at the end of each month. The meetings may also be held by teleconference or videoconference.

            

      

      

      	

            	f)	
              The Financial Team will have access to the Facility, to all systems dedicated only to the Consortium, be authorized to audit and receive all relevant operational and financial records and supporting data, files, reports and documents
                from the Participants necessary to verify and analyze the cost and operations of the Consortium. For other non-dedicated systems that support the Consortium, the Financial Team shall have authorization to Consortium-related information only
                or receive such required information from the relevant Participant.  For sake of clarity no access will be granted to each Participant internal reporting systems which are not dedicated only to the Consortium.

            

      

      

      If there is a disagreement between the members of the Financial Team upon any specific matter, any Member
        may, by written notice describing such matter in reasonable detail, escalate such matter to the [***], who shall make commercially reasonable efforts to resolve the matter within [***]. If the matter is not resolved by [***], the [***] shall make commercially reasonable efforts to resolve the matter within [***] business days.  If the matter is not resolved by the [***], the [***] shall make commercially reasonable efforts to
        resolve the matter within [***] days.  If the matter is not resolved by [***], the Board shall appoint an independent auditing firm of international standing in
        respect of which there is no conflict of interest with any Participant to review and decide upon the matter. If the Board is unable to reach a decision on the auditing firm, the independent auditing firm will be jointly selected by the
        Participants. If the Participants do not agree on the selection of the independent auditing firm, each Participant will select an independent auditing firm and the two independent auditing firms together will select an independent auditing firm for
        resolution of the unresolved matter. The independent auditing firm so selected shall:

       

      

      i.          taking
          into consideration the arguments submitted by the Participants without the power to make any discretionary decision and specifying its conclusions on the disputed matters, prepare and deliver to each of the Participants a preliminary report of
          the matter [***] days of its appointment, and each of the Participants may provide comments on such report to the independent auditing firm within the next [***] business
          days.

      
        15

        
          

      

      ii.          make its final and binding determination with the [***] days and shall provide each Participant with a detailed report of its determination in the matter, which shall have the
          effectiveness determined by Article 1349 of the Code.

      iii.          have access to the relevant documents of the Participants and of the Consortium, and for the purposes of its mandate, may meet with the Participants to discuss the disputed matters.

      

      

      The costs of the independent auditing firm shall be shared among the Participants in equal proportions,
        provided that each Participant shall bear the costs of its own consultants.

      

      

      The decisions of the independent auditing firm made pursuant to this Section with respect to its
        determination on the disputed matters shall supplement the respective contractual intentions of the Participants and shall be deemed final and binding and as such shall not be subject to appeal, save in cases of manifest error, or to the extent
        applicable, of manifest unfairness. Under no circumstances, however, shall any appeal by one of the Participants of the independent auditing firm's determination be deemed a valid ground for the suspension or delayed performance of the obligations
        deriving from this Agreement.

      

      

      6.6 Managers. ST will appoint a “Manager” [***], TSIT will appoint a “Deputy Manager” who shall
          report to the Manager.

      At all times and from time to time hereunder: (i) ST shall have the right to remove and/or replace the Manager; and (ii) TSIT
        shall have the right to remove and/or replace the Deputy Manager.

      The Manager and the Deputy Manager shall cooperate with the Board, the Co-Chairmen and the Financial Team in the performance of
        their responsibilities.

      

      

      6.7 Audit Rights. In addition to audit under section 6.5 (f), each Participant shall have mutual audit rights to perform audits for the sole purpose to permit customers, suppliers,
          insurance carriers and regulatory authorities to perform audits at the Facility within the scope of their engagement in connection with the Facility, in accordance with policies and procedures to be established and agreed upon by the Participants
          in good faith, as well as internal and external auditors in accordance with requirements under applicable laws and regulations.

      

      

      6.8 Other Bodies or Committees. The Participants may jointly agree to create any other body, committee or panel which they believe may be necessary or useful to accomplish the Consortium purposes
          and to delegate specific tasks and powers.

      

      

      ARTICLE 7 – CONSORTIUM QUALIFICATION AND OPERATIONS

      

      

      7.1 Facility Operations. The Consortium shall operate the Facility.

      The Managers shall ensure the Consortium operates in accordance with this Agreement, including the Operational and Accounting
        Procedures Manual and the intercompany secondment agreement.

      The Board shall promptly submit to the Participants any proposed amendment to the Operational and Accounting Procedures Manual
        or to the intercompany secondment agreement that it believes may improve the production, efficiency and/or results of the Consortium.

      

      

      7.2 Payments.

      

      

      7.2.1 As consideration for ST’s overall services to TSIT until Ramp-Up Deadline, TSIT will pay ST:

       

      [***]

      
        16

        
          

      

      7.2.2 In order to transfer, install, qualify and run the TSIT technologies in the Facility which is currently targeted for the [***] until the start of the ramp-up phase,
          TSIT shall pay, as set forth in Section 7.2.3 below, [***]

       

        

      7.2.3 [***]

      In case of disagreement on calculation of actual NRE costs, provisions of Section 6.5 (f) shall apply.

      

      

      The above reconciliation amount shall be due to be paid by, as the case may be, TSIT or ST, [***] days after the ramp-up start
        date or, in case of disagreement, from determination of the actual NRE costs according to Section 6.5 (f).

      

      

      7.2.4 As from the beginning of the ramp-up phase until reaching Phase I (fully equipped HBO) or until Ramp-Up Deadline, whichever event occurs earlier, TSIT will pay to ST [***]

      

      

      7.2.5 As of the Ramp-up Deadline, the Participants will calculate [***]

      

      

      In case of disagreement on calculation of [***], provisions of Section 6.5 (f) shall apply.

      

      

      The above reconciliation amount shall be due to be paid by, as the case may be, TSIT or ST, within [***] days after the
        Ramp-Up Deadline or, in case of disagreement, from determination of the [***]  costs according to Section 6.5 (f).

      

      

      7.2.6 The Operational and Accounting Procedures Manual under Exhibit B sets forth the Participants’ payment obligations for Consortium activities.

      The Participants shall duly and promptly settle any outstanding debt position in accordance with the provisions of Exhibit B.
        A Participant who fails to timely pay any amount due hereunder to the other Participant shall, in addition to the amount due, pay interest on the unpaid amount at a rate equal to [***].

      

      

      7.3 Personnel. The Consortium will be operated by the personnel of both Participants, in accordance with this Agreement and the intercompany secondment agreement. Such personnel is
          identified in Exhibit C as such Exhibit may be amended from time to time.

      

      

      7.4 Consortium Not an Employer. Under no circumstances shall the Consortium be deemed to be an employer of any personnel whatsoever. At all times hereunder, each Participant shall remain the only
          entity liable under any applicable labour, payroll, social security, health and safety, privacy legislation and any and all other applicable laws pertaining to its personnel – it being understood that ST is responsible for the organization and
          coordination of all the personnel engaged in Consortium activities.

      

      

      7.5 Participants’ Responsibilities. At all times hereunder, each of the Participants shall remain: (i) the only entity liable under any applicable tax, accounting, environmental, health and safety,
          corporate law, privacy legislation and any and all other applicable laws concerning its own business, assets and going concerns; and (ii) liable for its own tax and financial reporting requirements, although the Board and the Financial Team shall
          provide any reasonable assistance and information requested by a Participant to satisfy such requirements.

      

      

      7.6 Anti-Bribery; Anti-Corruption. Each Participant represents that (i) neither it nor any of its affiliates, nor any of its or their respective directors, officers, managers, employees, independent
          contractors, subcontractors, representatives or agents (“Representatives”), have contributed any item of value, directly or indirectly, to any third party, in violation of the United States Foreign Corrupt
          Practices Act, the U.K. Bribery Act, the French Sapin II law, the Italian Legislative Decree no. 231/2001 or any other applicable anti-bribery or anti-corruption law (together, “ABC Laws”), and (ii) it
          shall not, nor shall it permit any of its affiliates or any of its or their respective Representatives to, promise, authorize or make any payment to, or otherwise contribute any item of value, directly or indirectly, to any third party, in
          violation of and ABC Laws. Each Participant further represents that it shall, and shall cause each of its affiliates to, cease all of its or their respective activities, as well as remediate any actions taken by the Participant, its affiliates,
          or any of its or their respective Representatives, in violation of the ABC Laws. Each Participant further represents that it shall, and shall cause each of its affiliates to, maintain policies and procedures, including systems of internal
          controls (including, but not limited to, accounting systems, purchasing systems and billing systems), designed to ensure compliance with the ABC Laws.

      
        17

        
          

      

       

      Furthermore, TSIT agrees that, at all times in connection with and throughout the term of this Agreement, it and its
        affiliates will comply with, and take reasonable measures to ensure that their Representatives or any other third party involved in the performance of this Agreement, subject to its control or determining influence, will comply with the provisions
        of ST’s Code of Conduct, which Code of Conduct is hereby incorporated by reference as if written out in this Agreement in full. A copy of the Code of Conduct is available at https://www.st.com/content/ccc/resource/corporate/company/policy_statement/group0/27/23/5e/6d/ad/99/47/f6/BRSTCODE1015_0216.pdf/files/BRSTCODE1015_0216.pdf/jcr:content/translations/en.BRSTCODE1015_0216.pdf, or upon written request to ST’s Compliance Office.

       

      If TSIT has evidence, reason to believe, or reasonably suspects that its or its affiliates’ Representatives or any other third
        party has breached any of the principles set out in ST’s Code of Conduct, TSIT will notify ST immediately, take all necessary remedial actions, and inform ST about the status of such remedial actions on a regular and timely basis. In such event, ST
        reserves its rights, including the right to immediately terminate this Agreement if there is a breach of conduct by TSIT that has material impact on the Facility’s operation.

      

      

      ARTICLE 8 – PARTICIPANTS’ OBLIGATIONS

      

      

      Each Participant shall:

       

      

      	

            	a)	
              Comply with the obligations set forth herein, including the Operational and Accounting Procedures Manual and the intercompany secondment agreement.

            

      	

            	b)	
              Cooperate in good faith with the other Participant and the Board to accomplish the purposes of the Consortium.

            

      	

            	c)	
              Ensure compliance with all applicable tax, accounting, environmental, health and safety, labour, privacy and any and all other applicable laws concerning its business, assets and going concerns, so as to avoid any improper interference
                with, or prejudice to, the other Participant or the Consortium operations.

            

      	

            	d)	
              Continue to conduct its business in the ordinary course and shall use reasonable care to ensure that any asset or property which, is relevant for the operations of the Consortium is carefully maintained and properly insured. Each of the
                Participants will acquire property and business interruption (“BI”) insurance for its assets. [***].

            

      	

            	e)	
              Ensure the assets it dedicated to the Consortium will continue to be dedicated to the Consortium to the extent required for the manufacture of its products or the other Participant’s products without any significant impairment – it being
                understood that each Participant may, with the prior written consent of the other Participant, which consent shall not unreasonably be withheld, conditioned or delayed, replace any of its dedicated assets with other substantially-equivalent
                assets.

            

      	

            	f)	
              Subject to the limitations set forth in Section 13.5, indemnify and hold harmless the other Participant from any damage or loss such Participant may suffer as a consequence of the indemnifying Participant’s breach of this Agreement
                provided that such indemnification shall not result in the duplication of indemnification for the same damage or loss.

            

      	

            	g)	
              Provide the other Participant with all required information, documents, in line data, access to systems subject to execution of a dedicated agreement, records and other information, to the extent related to Consortium operations, as may
                be reasonably requested from time to time by the other Participant.

            

      

      

      
        18

        
          

      

      ARTICLE 9 – INTELLECTUAL PROPERTY RIGHTS

      

      

      9.1 Unless otherwise agreed in writing and with respect to specific Consortium joint development programs: (i) this Agreement leaves unchanged the Participants’ respective Intellectual
          Property Rights as such exist at the Effective Date or thereafter; (ii) each Participant is and shall remain the exclusive owner or beneficiary, as the case may be, of such Intellectual Property Rights; (iii) this Agreement does not and shall not
          grant to the Consortium or to the other Participant any license or any other right in or to any Intellectual Property Right of the other Participant except (a) for such Intellectual Property Rights of each Participant embedded in the [***] 
          described in Section 9.4, (b) TSIT and its Affiliates shall be permitted to use [***]  as described in Exhibit E and its recipes to manufacture products within the Consortium and outside the context of the Consortium, and (c) each Participant
          shall be permitted to use all [***]  within the context of the Consortium in its flows for the manufacture of products within the Consortium and outside the context of the Consortium.

      

      

      9.2 The Participants acknowledge and agree that the purposes of this Agreement do not include the creation of Intellectual Property Rights, however, the Participants do acknowledge that if
          new Intellectual Property is created during the term of the Consortium the ownership rules set forth in this Article 9 will apply.

      

      

      9.3 Ownership of Intellectual Property Rights, if any, that are created within the Consortium shall, except to the extent prohibited by law, be allocated as follows:

       

        

      	

            	a)	
              ST shall own all Intellectual Property Rights that are created solely by ST employees; For the purpose of the allocation of intellectual property rights, ST shall mean ST or its Affiliates. Nothing in this Agreement shall prevent, hinder
                or condition the transfer of any IP right from ST to any ST Affiliate.

            

      	

            	b)	
              TSIT shall own all Intellectual Property Rights that that are created solely by employees of TSIT. For the purpose of the allocation of intellectual property rights, TSIT shall mean TSIT or its Affiliates. Nothing in this Agreement shall
                prevent, hinder or condition the transfer of any IP right from TSIT to any TSIT Affiliate.

            

      

      

      9.4 In case of Intellectual Property Rights that are created jointly, including contributions from both employee(s) of ST or its Affiliates and employee(s) of TSIT or its Affiliates (“Jointly Created IP”) the following provisions shall apply:

      

      

      	

            	a)	
              Jointly Created IP shall be owned by the Participant whose employee(s) (or whose Affiliates’ employee(s)) made the primary contribution(s) to the Jointly Created IP, as determined by the Board.

            

      

      

      The Board shall apply the criteria above in order to allocate the Jointly Created IP between the
        Participants at the next scheduled Board meeting. Neither Participant shall file for registration of Jointly Created IP until it has been allocated to them by the Board.

      

      

      Each Participant hereby sells, assigns and transfers all rights, title and interest it may have in all
        Jointly Created IP that the Board has allocated to the other Participant and the other Participant shall hereby be the sole owner of such Jointly Created IP. The assigning Participant agrees to execute such documents (including assignments,
        declarations and powers of attorney) and take such actions as the Participant owning the Jointly Created IP may reasonably request to perfect such Participant’s sole ownership of any such Jointly Created IP.

      

      

      The Participant designated to solely own a Jointly Created IP grants hereby to the other Participant a
        worldwide, non-exclusive, royalty-free, perpetual license without the right to sublicense, to use such Jointly Created IP, to make, have made, sell, offer to sell, import, export and otherwise dispose of any products and services of the other
        Participant or its Affiliates. The foregoing prohibition on sublicensing does not prevent such other Participant from exercising its rights through subcontractors, including providing such third party license to the Jointly Created IP for purposes
        of manufacture of products.

      
        19

        
          

      

      

      

      The Participant designated to solely own such Jointly Created IP shall have the right to independently
        decide, at its sole discretion, how to best protect the same, including whether to file for patent, utility model and/or design protection, and if so in which countries. All costs associated with filing, prosecution and maintenance of the same
        shall be solely borne by the Participant designated to own it.

      

      

      In the event that the Participant designated to own a Jointly Created IP decides within six (6) months
        after such designation that it does not wish to protect the Jointly Created IP, the Participant shall have the option in good faith to notify the Board, and upon such notification, the Board shall allocate the Jointly Created IP to the other
        Participant and the Participant that is relinquishing ownership shall have the license rights granted under this section 9.4 in such Jointly Created IP.

      

      

      	

            	b)	
              In the event that the Board is not able to allocate a particular Jointly Created IP pursuant to Section 9.4(a) above, such particular Jointly Created IP shall be jointly owned by the Participants (“Jointly Owned IP”). Each Participant
                shall have the right to use and exploit such Jointly Created IP without a duty to (i) request permission or provide notice to license or enforce its rights thereunder, (ii) account to the other Party for any royalties or other consideration
                it may receive or otherwise share any such consideration received with the other Party, and (iii) otherwise account to the other Party for any actions taken in relation to such Jointly Created IP, provided than neither of the Participants
                shall grant exclusive license rights under the Jointly Created IP.

            

      

      

      ARTICLE 10 – CONFIDENTIALITY

      

      

      10.1 [***]

      

      

      10.2 [***]

      

      

      10.3 [***]

      

      

      10.4 [***]

      

      

      10.5 [***]

       

        

      10.6[***]

      

      

      10.7 [***]

      

      

      ARTICLE 11 – TERMINATION – EFFECT OF TERMINATION

      

      

      11.1 This Agreement may be early terminated by written notice of termination as follows:

      

      

      	

            	(a)	
              upon the joint written consent of both Participants;

            

      	

            	(b)	
              by TSIT without cause effective at any time after the fifth (5th) anniversary of the Effective Date;

            

      	

            	(c)	
              by ST without cause effective at any time after the tenth (10th) anniversary of the Effective Date;

            

      	

            	(d)	
              by TSIT at any time with immediate effect in case ST becomes Insolvent;

            

      	

            	(e)	
              by TSIT in case a Change of Control of ST or ST Parent;

            

      	

            	(f)	
              by ST at any time with immediate effect in case TSIT becomes Insolvent;

            

      	

            	(g)	
              by ST in case a Change of Control of TSIT or TSIT Parent;

            

      	

            	(h)	
              by TSIT at any time in the event of a breach by ST of any of its obligations under Article 2 and/or Section 7.2 and or Section 7.6 and/or Article 10 not cured within thirty (30) days following ST’s receipt of the written notice by TSIT
                of such breach;

            

      	

            	(i)	
              by ST at any time in the event of a breach by TSIT of any of its obligations under Article 2 and/or Section 7.2 and/or Section 7.6, and/or Article 10 not cured within thirty (30) days following TSIT’s receipt of the written notice by ST
                of such breach.

            

      

      

      
        20

        
          

      

      11.2 For the purposes of this Agreement:

       

      “Insolvent” means, in respect of a Party, where that Party: (i) passes a resolution
        for its winding up; (ii) is subject to an order or notice issued by a court or other authority of competent jurisdiction for its winding up or striking off; (iii) enters administration for its winding up at any court; (iv) subject to, a company
        voluntary arrangement or a composition with its creditors generally; (v) has a receiver or a provisional liquidator appointed or a person becomes entitled to appoint a receiver or provisional liquidator over any of its assets, undertaking or
        income; (vi) suspends or ceases to carry on all or a substantial part of its business; (vii) admits inability to pay its debts or is deemed unable to pay its debts; (viii) any act is done or event occurs which (under applicable laws) has a similar
        effect to these foregoing acts or events; or (ix) is the subject of anything analogous to the foregoing under the laws of any applicable jurisdiction.

       

      “Change of Control” or “COC” means any act,
        transfer or transaction resulting in a Competitor that (i) acquires more than 50% of TSIT or TSIT Parent or ST or ST Parent shares, or (ii) acquires the ability to appoint the majority of the Board of Directors or similar corporate body of TSIT or
        TSIT Parent or ST or ST Parent, or (iii) acquires substantially all of the assets of TSIT or TSIT Parent or ST or ST Parent.

       

      “Competitor” means any Person [***]

       

      11.3. The Change of Control shall not be in effect with respect to, or impact, the Facility and the Consortium before [***]. After such date, the relevant Participant subject to the COC shall
          notify in writing the other Participant (“Notified Participant”) providing details about the Competitor that acquires control of such relevant Participant. Such notification will be made within [***]) days
          as from the effectiveness of the Change of Control. Upon receipt of such notification the Participants shall explore in good faith, in the subsequent [***] days (“Discussion Term”), the opportunity to
          continue the Consortium under the same terms in spite of the Change of Control. Upon expiration of the Discussion Term, if the Notified Participant intends anyhow to terminate this Agreement, it shall have to send relevant written notice of
          termination to the other Participant within [***] days as from expiration of the Discussion Term and the termination will become effective in accordance with Section 11.4. Such termination rights shall cease to be effective with respect to the
          notified Change of Control in case they are not exercised within said [***] days term. If such termination rights are not exercised by the Notified Participant, the Consortium shall continue under the same terms hereunder. The Participants
          acknowledge and agree that, in the event of exercise of the termination rights, neither Participant shall be liable to the other for any reason or title, except for any amount or obligation due until the effective date of the termination.

       

      11.4 Notice of termination. The notices of termination pursuant to Section 11.1 (b), Section 11.1 (c), Section 11.1 (e) and Section 11.1 (g) shall be sent by the terminating Participant to the
          other Participant at least 24 (twenty-four) months prior to the intended termination date.

      

      

      11.5 Effect of termination.

      

      

      11.5.1 – Exit plan Further to a notice of termination pursuant to Section 11.4 and any other termination exercised by any Participant further to Section 11.1, the Participants shall
          agree in good faith on an operational and organizational plan, inclusive of actions to be carried out and relevant timelines, in order to appropriately manage the closure of the Consortium at the [***] prior notice period or the termination date,
          as applicable.

      

      

      
        21

        
          

      

      
        11.5.2 – Option to buy Tools and
            right of first refusal.

         

          

      

      11.5.2.1 [***]

      11.5.2.2 [***]

      11.5.2.3 [***]

      11.5.2.4. [***]

      

      

      ARTICLE 12 – TRANSFER OF THE FACILITY AND TOOLS

      

      

      12.1 Transfer of the Facility. [***].

      

      

      12.2 Transfer of Tools. Without prejudice to Section 11.5.2 in case of termination or expiration of the Agreement, during the term of this Agreement neither Party shall be entitled to sell
          or otherwise transfer any of its Tools, unless not used by the other Participant, to any other third party, (i) without the previous written consent of the other Party, which shall not be unreasonably withheld or delayed, and (ii) in case of sale
          of any such Tools, shall first give the other Party a right of first refusal according to the provisions of Section 11.5.2.3 mutatis mutandis.

      

      

      ARTICLE 13 – GENERAL PROVISIONS

      

      

      13.1 Expenses. Except as otherwise specified herein or in the Operational and Accounting Procedures Manual, all costs and expenses, including fees and disbursements of counsel,
          financial advisors and accountants incurred in connection with this Agreement and the transactions contemplated hereby, shall be paid by the Participant incurring such costs and expenses.

      

      

      13.2 Notices.

      

      

      All notices, requests and other communication under or in connection with this Agreement shall be made by a duly signed letter
        and such letter shall be delivered either by hand, by courier, by registered letter or by e-mail (with attached pdf-copy of the signed letter) to the recipients at the addresses set forth below:

      If to ST, to:

      

      

      STMicroelectronics S.r.l.

      Via C. Olivetti 2

      20864 Agrate Brianza, Italy

      Attention: Legal Department

      Email: [***]

       

      If to TSIT, to:

      

      

      Tower Semiconductor Italy S.r.l.

      Via della Posta 7

      20123 Milan, Italy

      Email: [***]

       

      

      13.3 Choice of Law; Consent to Jurisdiction.

      

      

      	a)	
              This Agreement shall be governed by and construed in accordance with the laws of Italy, without giving effect to choice of law principles.

            

      

      

      	b)	
              Any suit, action or proceeding brought by either Participant seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement will be brought in the Courts of Milan, Italy, and each of the
                Participants hereby consents and submits to the exclusive jurisdiction of such court (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by
                applicable law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in such court or that any such suit, action or proceeding which is brought in such court has been brought in
                an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of such court.

            

      

      

      
        22

        
          

      

      13.4 Exclusion of Liability;
          Indemnification.  To the fullest extent permitted by applicable law, each Participant (“First Participant”) shall
          have no liability for any injury, illness, death incurred by the other Participant personnel and/or for any loss or damage to property, including the Tools, the Facility and the products, whether completed or in progress, of the other Participant
          arising out of or in connection with the Consortium activities performed by the First Participant, and the other Participant accordingly waives any related claims against the First Participant, whether in tort, in contract or otherwise and
          regardless of the First Participant’s negligence. Each Participant shall remain individually liable and responsible vis-à-vis any third party with respect to any obligation and liability arising from an alleged breach of a contract in effect
          between such third party and such Participant or in tort or otherwise, for damages that the third party incurs as a result of the operations of the Consortium, with no recourse to the other Participant.

      

      

      13.5 Exclusion of Certain Damages. IN NO EVENT SHALL EITHER PARTICIPANT BE LIABLE TO THE OTHER PARTICIPANT FOR ANY INDIRECT, SPECIAL, PUNITIVE, INCIDENTAL, RELIANCE OR CONSEQUENTIAL DAMAGES, LOSS OF
          BUSINESS, REVENUES OR PROFITS, ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE SUBJECT MATTER HEREOF, HOWEVER CAUSED AND WHETHER SUCH CLAIM IS GROUNDED IN TORT (INCLUDING NEGLIGENCE, PRODUCT LIABILITY AND STRICT LIABILITY), CONTRACT OR
          OTHERWISE.

      

      

      13.6 Modification; Amendments. This Agreement may not be amended, modified, altered or changed in any respect whatsoever, except by written agreement duly executed by both Participants. This
          Agreement shall not be supplemented or modified by any course of dealing.

      

      

      13.7 Assignment. Neither Participant shall assign, delegate or subcontract this Agreement or any of its rights or obligations under this Agreement without the prior written consent of
          the other Participant, and any attempted assignment, delegation or subcontract without the other Participant’s consent shall be void and of no force.  This Agreement shall be binding upon and inure to the benefit of each Participant and its
          respective permitted successors and assigns. Such consent shall not be required for the transfer of the Agreement from ST to a third party or an Affiliate in connection with a transfer of the Facility in accordance with Section 12.1.

      

      

      13.8 Survival of Provisions.  Any obligations and duties that by their nature extend beyond the expiration or earlier termination of this Agreement, including, without limitation, Sections 7.5,
          8 (f) and 11.5 and Articles 9, 10 and 13, shall survive any such expiration or termination and remain in effect.

      

      

      13.9 Severability. If it is determined by a court of competent jurisdiction as part of a final non-appealable ruling or government action, that any provision of this Agreement (or part
          thereof) is invalid, illegal, or otherwise unenforceable in any jurisdiction, such provision shall be enforced in such jurisdiction as nearly as possible in accordance with the stated intention of the Participants, while the remainder of this
          Agreement shall remain in full force and effect and bind the Participants according to its terms, and any such determination shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent any provision (or
          part thereof) cannot be enforced in accordance with the stated intentions of the Participants, such provision (or part thereof) shall be deemed not to be a part of this Agreement; provided in such event the Participants shall use their best
          efforts to negotiate, in good faith, a substitute, valid and enforceable provision that most nearly effects the Participants’ intent in entering into this Agreement.

      

      

      13.10 Controlling Language. The English language shall be the controlling language of this Agreement and shall prevail in case of any inconsistency or contradiction in the interpretation of
          this Agreement. Without limiting the generality of the foregoing, any version of this Agreement in any language other than English, if any, shall not be legally binding on the Participants and shall have no bearing on the meaning or
          interpretation of any provisions of this Agreement.

      
        23

        
          

      

      

      

      13.11 Relationship of the
          Participants. Neither Participant is authorized to act as the agent of the other Participant, and neither Participant may in any way bind the other
          Participant to any contractual commitment.

      

      

      13.12 No Third Party Beneficiaries. This Agreement shall inure solely to the benefit of the Participants and their permitted assigns. Nothing herein, expressed or implied, is intended to or shall be
          construed to confer upon or give to any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

      

      

      13.13 No Implied Waivers. Any waiver of any kind of a breach of this Agreement must be in writing, shall be effective only to the extent set forth in such writing and shall not operate or be
          construed as a waiver of any subsequent breach.  No course of dealing between the Participants, nor any prior waiver, nor any delay or omission in exercising any right, power or remedy pursuant to a breach or default by a Participant shall impair
          any right, power or remedy that either Participant may have with respect to a future breach or default.

      

      

      13.14 Agreement Negotiated by
          Participants. The Participants acknowledge this Agreement has been prepared after extensive discussions between the Participants and the opportunity for
          each Participant to review the Agreement with and obtain advice from their respective legal counsel. In construing this Agreement, the fact one Participant or the other may have drafted its various provisions shall not affect the interpretation
          of such provisions.

      

      

      13.15 Personal data. The Participants shall mutually define the terms and conditions that shall apply to the processing of personal data, if any, as may be required by applicable privacy
          laws and regulations.

      

      

      13.16 Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
          instrument. Any Participant may bind itself to this Agreement by signing any such counterpart and each counterpart may be signed and executed by the Participants and transmitted pursuant to Section 13.2 and shall together be as valid and
          effectual as if executed as an original.

      

      

      13.17 Entire agreement. This Agreement, together with all Exhibits hereto, contain the entire agreement and understanding of the Participants with respect to the subject matter hereof, and
          merge and supersede all prior or contemporaneous communications, representations, proposals, agreements and understandings (whether written, oral, or implied) between the Participants with respect thereto.

      

      

      IN WITNESS WHEREOF, duly authorized representatives of the Participants have executed this Agreement the date herebelow.

      

      

      
        	
                
                  STMicroelectronics S.r.l.
                    

                    

                    ______________________________  

                    

                  

                    Name: [***]
                     

                      

                    Title: [***]

                     

                      

                     

                    Date: September 14, 2021 

                

              	
                
                  Tower Semiconductor Italy S.r.l.

                   

                    ______________________________  

                    

                   

                    Name: [***]

                

                 

                  

                Title: [***]

                 

                  

                 

                Date: September 14, 2021 

      

               

        

      Exhibit A: Definitions

      Exhibit B: Operational and Accounting Procedures Manual

      Exhibit C: Dedicated Assets and personnel

      Exhibit D: timeline and ramp up schedule

      Exhibit E: [***] process flow

      
        24

        
          

      

      

      

      EXHIBIT A – DEFINITIONS

      

      

      	
              Term

            	
              Definition

            
	
              “ABC Laws”

            	
              Has the meaning set forth in Section 7.6.

            
	
              “Affiliate”

            	
              With respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person.

            
	
              “Agreement”

            	
              Has the meaning set forth in the preamble of this Agreement.

            
	
              “Board”

            	
              The managing board of the Consortium.

            
	
              “business day”.

            	
              means a day that is not a Saturday, a Sunday or a statutory public holiday in Italy.

            
	
              “Change of Control”

            	
              Has the meaning set forth in Section 11.2.

            
	
              “Co-Chairman”

            	
              Means each Co-Chairman of the Board.

            
	
              “Code”

            	
              Has the meaning set forth in Section 4.1.

            
	
              “Common Tool(s)”

            	
              means process Tool(s) that are defined to be used by both Participants.

            
	
              “Competitor”

            	
              Has the meaning set forth in Section 11.2.

            
	
              “Confidential Information”

            	
              Has the meaning set forth in Section 10.1.

            
	
              “Consortium”

            	
              Has the meaning set forth in Section 4.1.

            
	
              “Control”

            	
              “Control” (including, with correlative meanings, the terms “controlling”, “controlled by” or “under common control with”), as used with respect to any Person, shall mean the possession,
                directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise.

            
	
              “Deadlock”

            	
              Has the meaning set forth in Section 6.2.

            
	
              “Dedicated Costs”

            	
              direct substrate costs, masks, and dedicated personnel costs listed in Exhibit B and specific dedicated process Tools’ depreciation.

            
	
              “Deputy Manager”

            	
              Has the meaning set forth in Section 6.6.

            
	
              “Discussion Term”

            	
              Has the meaning set forth in Section 11.3.

            
	
              “Effective Date”

            	
              Has the meaning set forth in Section 3.1.

            

      

      

      
        25

        
          

      

      	
              “Facility”

            	
              Has the meaning set forth in the recitals and is better identified on the map attached hereto as Exhibit D.

            
	
              “Financial Team”

            	
              Has the meaning set forth in Section 6.5.

            
	
              “First Participant”

            	
              Has the meaning set forth in Section 13.4.

            
	
              “First Refusal Right”

            	
              Has the meaning set forth in Section 11.5.2.3(a).

            
	
              “Full Build Out/FBO”

            	
              Has the meaning set forth in Section 5.3.1.

            
	
              “Half Build Out/HBO”

            	
              Has the meaning set forth in Section 5.3.1.

            
	
              “Insolvent”

            	
              Has the meaning set forth in Section 11.2.

            
	
              “Installation Completion Date”

            	
              Has the meaning set forth in Section 5.7.1.1.

            
	
              “Intellectual Property Rights”

            	
              shall mean any industrial and intellectual property rights, registered or not, anywhere in the world, including but not limited to, the rights related to patents (including but not limited
                to all patents (directly or indirectly) claiming priority to such patents, from which such patents claim priority, or having common priority with such patents, inclusive of all continuations, divisions, continuation-in-parts, provisional,
                re-examinations, re-issues, utility, design, and the like), utility models, trademarks  and all goodwill associated therewith, designs, semiconductor topographies, mask works, plant varieties, indications of origin, inventions (whether
                patentable or not), know-how, technologies, drawings, technical information, trade secrets, confidential information, commercial signs, company names, copyrights, software (including the preparatory design material and any related
                documentation, any application and all related source code and object code), domain names, websites and databases, production methods, recipes, program, literary and artistic property rights, sui generis rights of the database producer and
                the related right of use; each of the foregoing including any and all rights of priority attached thereto and the right to sue and recover for past, present and future damages and seek injunctive relief.

            
	
              “Jointly Created IP”

            	
              Has the meaning set forth in Section 9.4.

            
	
              “Joint Inventions”

            	
              Has the meaning set forth in Section 9.4.

            
	
              “Manager”

            	
              Has the meaning set forth in Section 6.6.

            

      

      

      
        26

        
          

      

      	
              “Mask Level” or “ML”

            	
              Has the meaning set forth in Section 5.4.2.

            
	
              “Members”

            	
              Has the meaning set forth in Section 6.1.

            
	
              “Moves”

            	
              Means process steps in the manufacture and testing of wafers.

            
	
              “Notified Participant”

            	
              Has the meaning set forth in Section 11.3.

            
	
              “Operational and Accounting Procedures Manual”

            	
              Set forth in Exhibit B.

            
	
              “Participants”

            	
              Has the meaning set forth in the preamble of this Agreement.

            
	
              “Person”

            	
              Any individual, corporation partnership, association, limited liability company, trust, estate or other similar business entity or organization, including a governmental entity.

            
	
              “Planned Purchase Date”

            	
              Has the meaning set forth in Section 11.5.2.3(a).

            
	
              “Proposed Purchaser”

            	
              Has the meaning set forth in Section 11.5.2.3.

            
	
              “Purchase Offer”

            	
              Has the meaning set forth in Section 11.5.2.3(a).

            
	
              “Ramp-Up Deadline”

            	
              Has the meaning set forth in Section 5.4.3.

            
	
              “Reference Management”

            	
              The operations, corporate, planning and finance departments of the respective Participants.

            
	
              “Representative”

            	
              Has the meaning set forth in Section 7.6.

            
	
              “Response Period”

            	
              Has the meaning set forth in Section 11.5.2.3(a).

            
	
              “Sale Conditions”

            	
              Has the meaning set forth in Section 11.5.2.3.

            
	
              “Sale Notice”

            	
              Has the meaning set forth in Section 11.5.2.3.

            
	
              “ST”

            	
              Has the meaning set forth in the preamble of this Agreement.

            
	
              “ST Parent”

            	
              Has the meaning set forth in Section 6.3.

            
	
              “Tie Vote”

            	
              Has the meaning set forth in Section 6.2.

            
	
              “Tool(s)”

            	
              Tool(s) purchased and owned by a Participant.

            
	
              “Transferred Tools”

            	
              Has the meaning set forth in Section 11.5.2.3.

            
	
              “TSIT”

            	
              Has the meaning set forth in the preamble of this Agreement.

            
	
              “TSIT Parent”

            	
              Has the meaning set forth in Section 6.3.

            
	
              “Variable Cost(s)”

            	
              [***]

            

      

      

      
        27

        
          

      

      EXHIBIT B - OPERATIONAL AND ACCOUNTING PROCEDURES
            MANUAL

       

      [***]

      
        28

        
          

      

      EXHIBIT C –CONSORTIUM ASSETS & PERSONNEL

      

      

      [***]

      
        29

        
          

      

      EXHIBIT D

      

      

      [***]

      
        30

        
          

      

      EXHIBIT E

       

      

      [***]

      

      

      31

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