Document:

Lease Agreement (Tel Aviv, Israel)

 Exhibit 10.21 
 Note: This agreement and the negotiations about it are not binding on the landlord until the landlord’s signatories sign the agreement 
 AZRIELI CENTER 
 OFFICE LEASE 
 Entered into in Tel-Aviv on March 16, 2000 
 Between 
  

			
		  	 Kanit Hashalom Investments Limited
 Whose address for
the purpose of this agreement is:
 Azrieli Center 132 Derech Petach Tikva
 Tel-Aviv
 (Hereinafter: the “Landlord”)
  
 As one
part                    

	
	And
		
		  	 BIGBAND NETWORKS LTD.
 Corporate no.
51-275107-4
 (Hereinafter: the “Tenant”)
 Whose address
for purposes of this agreement is:
 Kiryat Atidim, Building 4, 5th floor
 Telephone: 7651799
 Fax: 7651788
  
 As the second
part                    

		
	Whereas	  	The landlord is the lessee of a section of the land and entitled to be registered as lessee on the remainder of the land on lot 7106 parcel 5 in Tel Aviv (hereinafter: the
“Land”);
		
	Whereas	  	The landlord is erecting a project on the land that will contain buildings designated for offices, commercial use, stores, residences, parking lots and other uses, known by the name
“Azrieli Center” (hereinafter: the “Project”);
		
	Whereas	  	The tenant desires to rent the premises situated in the project from the landlord by an unprotected tenancy and to sign, inter alia, a management agreement with the management company, and
the annexes to this agreement, subject to and in accordance with all the provisions of this agreement and relevant law;
		
	Whereas	  	The landlord agrees to lease the premises by an unprotected tenancy to the tenant, subject to and in accordance with all of the provisions of this agreement;
		
	Whereas	  	The parties wish to define, arrange and settle in writing their rights and obligations relating to the lease of the premises, as specified in this lease agreement herein;

  

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 Therefore it is declared, stipulated and agreed among the parties as follows: 
  

	1.	Preamble and interpretation 

  

	 	1.1	The preamble and the annexes of this agreement constitute an integral part hereof. 

  

	 	1.2	The headings of the sections of the agreement are inserted solely for the sake of brevity and convenience and do not constitute part of the agreement and shall not be used in the
interpretation thereof. 

  

	 	1.3	All references in this agreement to the singular shall also include the plural and vice versa. All references to the masculine gender shall also include the female, and vice versa.

  

	2.	Definitions and annexes 

  

	 	2.1	The following terms in this agreement shall be attributed the meanings specified by their side: 

  

			
	“The Land”	  	Land at lot 7106 parcel 5 in Tel Aviv;
		
	“City Building Scheme”	  	Master Plan no. T.A. 2401 in Tel Aviv together with its regulations and annexes, including any amendment or modification or addition thereto as there may be from time to time;
		
	“The Project”	  	Buildings for offices, commercial use, stores, residences, warehouses, parking lots, and other uses as the landlord deems fit as well as public spaces, to be built in stages on the land
according to the landlord’s judgment;
		
	“Property”, “Premises”	  	A unit of the project that will be leased to the tenant pursuant to this agreement, as specified in the Annex of Special Terms Annex “A” and the blueprints Annex
“B” and in accordance with the technical description Annex “C”;
		
	“The Tower”	  	A tower in the project, in which the premises are located, as specified in the Annex of Special Terms Annex “A”;
		
	“Rental Fees”	  	The sums owed by the tenant to the landlord for the tenancy pursuant to this agreement, together with linkage differential;

  

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	“Purpose of the Tenancy”	  	As specified in section 5 of the agreement.
		
	“Management Company”	  	The landlord and/or any person, company or other legal entity who will be appointed by the landlord to manage and maintain the project as specified in section 17 herein.
		
	“Management Agreement”	  	An agreement for the maintenance, management and operation of the project by the landlord or the management company, appended as Annex “D” to this agreement;
		
	 “Residents of the Project”,
 “Tenants”, “Residents”
	  	Tenants, lessees, owners or licensees of specific areas and sections of the project;
		
	“Public Spaces”	  	The entire area on the land, including all the buildings, extensions and modifications that will be added from time to time, and roofs, external walls, pathways, entranceways and exits, service
areas and rooms, internal roads, service corridors, technical areas such as power rooms, pumps, air conditioning, loading and unloading areas, elevators, escalators, stairs, any other area on the land and the project designated to serve the greater
public, including all areas outside of the land and the project that border on the land and the project which are designated for use by the residents of the project and their customers, including entrances, sidewalks, gardens and signs, except for
areas of the project that are held by residents, everything as will be decided and defined in the sole discretion of the landlord;
		
	“Special Public Spaces”	  	Sections of the public spaces designated for use by specific residents of areas in the project, such as: stairwells, elevators, service rooms and entrance halls, and the rest of the public
spaces in a specific building or specific section of the project,

  

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		  	the premises or held by a number of residents, all as defined and decided in the sole discretion of the landlord;
		
	“Conveyance Date”	  	The date on which the premises are to be conveyed to the tenant as specified in the Annex of Special Terms and subject to section 11 herein;
		
	 “Date License is
 Conferred”
	  	The day on which the landlord permits the tenant to begin organizing work on the premises as a licensee, as specified in section 9 herein;
		
	“Agreement” “Contract”	  	This agreement with the preamble and its annexes;
		
	“Index”	  	Consumer price index including fruits and vegetables published by the Central Bureau of Statistics and Economic Research, including the same index even if published by another body or government
institution, and any official index that replaces it, whether or not it is constructed on the same data on which the existing index is constructed. If there is another index and the ratio between the indexes is not fixed by the Central Bureau of
Statistics then the ratio between the indexes shall be set by the landlord’s accountants and their determination shall be final and binding on the parties;
		
	“Base Index”	  	As specified in the Annex of Special Terms Annex “A”;
		
	“Known Index”	  	The last index known at the time of each actual payment;
		
	“Linkage Differential”	  	The sum received when multiplying the relevant sum with the difference between the known index and the base index, when it has been divided by the base index;
		
	“Area of the premises”	  	As defined in section 4 herein;
		
	“Tenancy Period”	  	As defined in section 6 herein, including extended tenancy periods, as each case warrants;

  

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	“Quarter”	  	Three month periods each - the beginning of which will be January 1, April 1, July 1 and October 1, of each calendar year;
		
	“Architect”, “Engineer”	  	Architect or engineer or project manager who will be appointed from time to time by the landlord;
		
	“Landlord’s Representative”	  	A person who will be appointed from time to time to serve as the landlord’s representative and a notice of such appointment will be delivered to the tenant;
		
	 “Management Fees”,
 “Maintenance
Fees”
	  	Sums which the tenant must remit to the management company in accordance with the management agreement;
		
	“Bylaws”	  	The bylaws of the project Annex “F” of the agreement or any other bylaws that replace it pursuant to the terms of the agreement;

  

	 	2.2	This agreement contains the following annexes which constitute an integral part hereof, including any annex which is or will be added, with the consent of the parties:

			
		
	2.2.1 Annex “A”	  	Annex of Special Terms (hereinafter: “Annex “A” or “Annex of Special Terms”);
		
	2.2.2 Annex “B”	  	Blueprints of the premises (hereinafter: “Annex “B” or the “Blueprints”);
		
	2.2.3 Annex “C”	  	Technical description of the premises and a specification of work in the premises (hereinafter: “Annex “C” or the “Technical Description”);
		
	2.2.4 Annex “D”	  	Management Agreement (hereinafter: Annex “D” or the “Management Agreement”);
		
	2.2.5 Annex “E”	  	Plans and specifications of modifications and customization by the tenant for the premises and a specification of the landlord’s work and the tenant’s work on the
premises;

  

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	 2.2.6     Annex “F”
	  	By laws of the project;
		
	 2.2.7     Annex “G(1)”
	  	Language of confirmation of the arrangement of construction insurance for the work to be carried out by the tenant;
		
	               Annex “G(2)”
	  	Language of confirmation of the arrangement of insurance by the tenant;
		
	 2.2.8     Annex “G(3)”
	  	Fire safety instructions;
		
	 2.2.9     Annex “H”
	  	Language of a bank guarantee;
		
	 2.2.10  Annex “I”
	  	Parking agreement (hereinafter: “Annex “I” or “Parking Agreement”);

  

	3.	The tenancy and representations of the parties 

  

	 	3.1	The landlord undertakes to lease the premises to the tenant and the tenant undertakes to lease the premises from the landlord for the period specified in this agreement.

  

	 	3.2	Revoked. 

  

	 	3.3	The tenant represents: 

  

	 	3.3.1	That he saw and inspected the land and the surrounding area, the plans of the project and the premises, the city building scheme, the blueprint Annex “B” and the technical
description of the premises Annex “C”, and inspected the planning status of the land, the project and the premises with the planning authorities and with any other official as he saw fit, and that he is familiar with and knows all the
details relating to them, and confirms that he found the project, the premises, the blueprints, the plans and the technical description suitable for his needs and purposes from every aspect and he waives all claims of inconsistency, defect except
for a latent defect or any other claim in respect thereto. 

  

	 	3.3.2	If the premises are ready for occupancy prior to the signing of this agreement, the tenant states that in furtherance of the provisions stated in section 3.3.1 above, that he saw
the completed premises and all sections and details thereof and inspected it and found it suitable for his needs from all aspects to his complete satisfaction. 

  

	 	3.3.3	 That he knows that the landlord is entitled to make changes to the city building scheme, the plans of the project, his premises and technical description - as per
its absolute discretion, or as a result 

  

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of planning or other constraints, or due to orders by the relevant authorities. The tenant agrees and represents that the making of such changes, shall not
infringe on his representations or agreements as specified in this section provided that they do not detract from the tenant’s ability to use the premises in accordance with the purpose of the tenancy as defined herein and provided that this
use will not be inferior to the use which the tenant could make of the premises under the city building scheme and which is subject to the purpose of the tenancy. 

  

	 	3.4	The tenant represents that he is aware that until the conveyance date, the landlord is entitled, in its sole discretion, to change the location of the premises that appear on the
blueprints, to another location in the project, provided that the size of the premises is not altered more than fifty percent. The tenant shall not be entitled to revoke the agreement due to this change, except if the change of location is a
material change. 

 If the tenant revokes the agreement due to a material change of location as mentioned, the landlord will
reimburse him for the sums that he paid until such date with linkage differential but without interest. 
 The landlord is entitled to change
the location of the premises even after conveyance to the tenant to a location that will not be less than 5 floors from the existing premises. The landlord will notify the tenant of its decision and in its notice will offer the tenant alternative
premises in the project. The tenant will notify the landlord fifteen days from receipt of said notice whether or not he agrees to accept the alternative premises. If the tenant agrees to accept the alternative premises, then all the direct costs
resulting from moving the premises to the new location shall be borne by the landlord, including the modification of the alternative premises to the tenant’s requirements to match the state of the premises as it was on the date of said notice.
If the tenant does not consent to accept the proposed alternative, the landlord will notify the tenant of the revocation of the agreement and the provisions of this agreement regarding the evacuation of the premises and termination of the tenancy
period will apply accordingly. 
 If the location of the premises is moved, as stated above, a blueprint will be appended to this agreement on
which the new location of the premises will be marked, this blueprint will be called Annex “B” and will replace the existing Annex “B”. 
 The tenant represents and undertakes that he will not have any complaint and/or demand and/or claim against the landlord for exercising its right to change the location of the premises, with the exception of the above
stated, and he renounces all such claims and/or demands and/or complaints. 
 The parties agree that if the landlord exercises its right as
stated above to move the location of the premises to another place in the project, after 

  

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conveyance of the premises has already been made to the tenant, then the tenant will be exempt from payment of rental fees for the first month in the
alternative premises to which he is transferred. 
  

	4.	Size of the premises 

 The size of the premises for
purposes of this agreement, as calculated by the architect according to the method accepted by the landlord, is the size specified in the Annex of Special Terms. The size of the premises includes the gross area of the premises with its proportionate
share of all the public spaces. It is understood that the aforementioned area is the final size and accepted by the parties and that additional measurements of the size of the premises will not be binding on the parties. 
  

	5.	Purpose of the tenancy 

  

	 	5.1	The tenant is leasing the premises from the landlord for the sole purpose as specified in the Annex of Special Terms, and not for any other purpose and/or requirements of any kind,
without exception. 

  

	 	5.2	The tenant undertakes not to use the premises or any part thereof for any other purpose other than the purpose of the tenancy. The tenant undertakes that he will not change the
purpose of the tenancy without obtaining the prior written consent of the landlord. 

  

	 	5.3	If the tenant wishes to change the purpose of the tenancy, in whole or in part, he will first send a letter to the landlord in which he will specify the new purposes and the reasons
and explanations for the request. The landlord shall not be obligated to give its consent to the requested change. The landlord shall not withhold its consent except on reasonable grounds. 

  

	 	5.4	The breach of this section with all its terms shall constitute a fundamental breach of the agreement. 

  

	6.	Tenancy period 

  

	 	6.1	The tenancy period of this agreement shall be as specified in the Annex of Special Terms beginning from the conveyance date and ending on the date stated in the Annex of Special
Terms (hereinafter: “Initial Tenancy Period”). 

  

	 	6.2	If the tenant is granted, in the Annex of Special Terms, the right to extend the tenancy, the tenant may lease the premises for an extended tenancy period or for extended tenancy
periods (in this agreement: “Extended Tenancy Period” or “Extended Tenancy Periods”) as specified in the Annex of Special Terms. An extended tenancy period, if any, shall begin upon the termination of the initial tenancy period
and any extended tenancy period, if any, shall begin upon the termination of the preceding tenancy period, but in no event shall the tenancy pursuant to this agreement last more than twenty four years and eleven months. 

  

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	 	6.3	An extension of the tenancy period after the termination of the initial tenancy period or after the termination of any of the extended tenancy periods is contingent upon compliance
with all of the following terms in aggregate: 

  

	 	6.3.1	The tenant gave the landlord at least four (4) months advance written notice prior to the start of each extended tenancy period, of his intent to extend the tenancy period.

  

	 	6.3.2	Until the start of the extended tenancy period, the tenant complied with all of his obligations pursuant to this agreement, and did not commit a fundamental or recurring breach of
the agreement. 

  

	 	6.3.3	The tenant provides the landlord prior to the start of the additional tenancy, with all the confirmations and instruments required to extend all the securities that were given by
him to the landlord to the landlord’s complete satisfaction. 

  

	 	6.4	If all the terms for extending the tenancy for an additional term have not been fulfilled, then the agreement will end with the termination of the preceding tenancy period, and the
tenant will vacate the premises at the termination of the tenancy period in accordance with the terms of the agreement. 

  

	 	6.5	If the tenant gives the landlord notice of an extension of the tenancy for an additional period, but the tenancy was not extended due to a breach by the tenant of the agreement
and/or a failure to renew the securities as required or if the tenant changed his mind and clearly cancelled his notice, then without derogating from the provisions of this agreement or any relevant law and without derogating from any measure
available to the landlord by this agreement and/or relevant law and/or from the duty of the tenant to vacate the premises at the end of the tenancy period, the tenant shall be obliged to pay rental fees for a period of 4 (four) additional months
after the end of the tenancy period as fixed compensation and the landlord shall be entitled to collect this sum from any security it holds. 

  

	 	6.6	It is understood that the provisions above regarding an extension of the tenancy period for an extended tenancy period or for extended tenancy periods, are subject to the provisions
stated in the Annex of Special Terms. In the event that the tenant’s entitlement to extend the tenancy period or the extended tenancy periods and their terms are not specified in the Annex of Special Terms then the aforementioned provisions
shall not apply to the extension of the tenancy period and the tenant shall not be entitled to extend the tenancy period for all intents and purposes without the prior written consent of the landlord. 

  

	 	6.7	If the agreement is extended for an extended tenancy period and/or periods, all the provisions of this agreement, mutatis mutandis, will apply to those periods.

  

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	 	6.8	The tenant may not suspend the tenancy and/or vacate the premises prior to the expiration of the tenancy period, and if nonetheless the tenant does vacate the premises prior to the
expiration of the tenancy period, the tenant shall be liable for all the payments applicable to him under this agreement, until the end of the tenancy period, unless the premises are leased by an alternative tenant in accordance with section 22
herein. 

 The aforesaid shall not impair from the rights of the landlord under this agreement and/or any relevant law to order
the tenant to vacate the premises prior to the end of the tenancy period. 
  

	7.	Rental fees 

  

	 	7.1	The tenant will pay the landlord rental fees for the tenancy beginning from the conveyance date, as specified in the Annex of Special Terms, together with linkage differential and
lawful VAT. 

  

	 	7.2	Rental fees will be linked to the index. However, the parties agree that rental fees paid for any quarter shall not be less than the rental fees paid for the preceding quarter.

  

	 	7.3	Rental fees for each quarter will be paid up front by the tenant to the landlord with differential linked to the index, on the first day of each quarter. If a payment date falls on
a non business day (Sabbath, holiday etc.) then the payment will be deferred to the first subsequent business day. 

 Subject to
the provisions set forth in the Annex of Special Terms, rental fees will be paid for the period beginning on the commencement of the tenancy and terminating at the end of the quarter following the quarter in which the start of the tenancy took
place, no later than ____________(illegible in original) 
 At the signing of the agreement the tenant shall pay rental fees to the
landlord for the first three months of tenancy with lawful VAT. This payment shall be made no later than 3 days from the date of the signing of this agreement by both parties. 
  

	 	7.4	Payment of rental fees by the tenant shall be done through a standing bank order by the tenant or in any other manner so instructed by the landlord after coordination with the
tenant. In order to collect the rental fees and linkage differential or any other sum owed by the tenant to the landlord, the tenant undertakes to produce for the landlord, on a date to be determined by the landlord but in any event within 7 days of
the signing of this agreement or 7 days prior to the conveyance date, the earlier of the above, a standing bank order in the form accepted by the bank. 

 Receipt of the order and any use thereof by the landlord shall not be deemed as payment until the full and timely remittance of all the payments. 
  

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	 	7.5	If the Annex of Special Terms contains a proviso that the tenant is entitled to extend the tenancy period for an additional tenancy period, rental fees shall be revised for the
entire extended tenancy period for a sum determined by a formula set forth in the Annex of Special Terms. 

  

	 	7.6	The tenant undertakes to pay the rental fees, management fees and all taxes and other payments applicable to him, during the entire tenancy period, without stipulation, whether or
not he makes use of the premises. 

  

	 	7.7	The provisions of this section 7 are fundamental and material provisions of this agreement, and the breach thereof constitutes a fundamental breach of the agreement.

  

	 	7.8	The parties agree that insofar as the tenant has not received a notice stating otherwise from Bank Leumi of Israel Ltd. or from Bank Hapoalim Ltd., payment of the rental fees, as
contemplated by section 7.4 above, will be made by him directly to account number 199999 in Bank Hapoalim Ltd., Montefiore branch 781 in Tel-Aviv. 

  

	8.	Taxes and additional payments 

  

	 	8.1	The tenant, for the duration of the entire tenancy period, shall make all payments, surcharges, municipal taxes, taxes and mandatory payments of any kind, municipal and/or
governmental or others, including any fee, license or permit fees of any kind pertaining to the premises and/or its operation and/or its maintenance, in addition to all the payments clearly stated in this agreement. The tenant must also pay all
taxes or surcharges and/or betterment fees, imposed on the premises due to deviant use of the premises contrary to the city building scheme applicable to the premises relating to use of the premises, its operation, maintenance, or related to rental
fees that will be imposed in the future and which do not exist at the signing of this agreement. 

 Notwithstanding the above,
it is agreed that taxes applicable by law on owners of a property shall apply to the landlord. It is understood that payments of arnona (municipal tax) shall always be paid by the tenant even if the law is modified and these payments are
imposed on owners of a property and not its residents. 
  

	 	8.2	Without derogating from the foregoing generalities, the tenant shall be responsible, during the entire tenancy period, to pay for the supply of water, electricity, phone,
arnona, business tax, sign tax, or any other cost resulting from the use of the premises and the operation thereof. 

 The tenant represents that he is aware that the supply of water to the entire tower is shared and that payment for consumption of water will be made in accordance with the landlord’s determination and based on his proportionate share
of the premises out of all the leased areas in the tower. Notwithstanding the above, the tenant shall pay for water according to the reading of a water meter which will be installed on the floor. 
  

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 Notwithstanding the above, the landlord shall be entitled, in its sole discretion, to install a meter to
measure the consumption of water on the premises and/or in other areas of the tower. If such a meter is installed for the premises, the tenant shall pay for water consumption in accordance with the reading of the meter in accordance as determined by
the landlord and/or the management company. The meter will be installed by the landlord at the tenant’s expense. 
 If meters will be or
are installed in other areas of the tower (not for the premises), those areas that are covered with meters will not be taken into account in the calculation of the proportionate share of the premises out of all the leased areas in the tower for the
purpose of determining consumption of water (if no meter is installed for the premises) as stated. 
 The tenant represents that he is aware
that the consumption of water on the premises does not include the consumption of water in the public spaces and that payments for water consumption in the public spaces will be added to the management fees and will be collected by the management
company as part of the management fees. 
 The tenant shall be responsible to connect the premises to a telephone meter and will pay for the
costs of connecting the telephone meter to the premises subject to the provisions set forth in Annex “C”. 
  

	 	8.3	The tenant shall remit, for the entire tenancy period, in a timely fashion, all payments owed by him for maintenance and management of the project as specified in the management
agreement. The tenant shall pay in a timely fashion all the payments owed by him, for use of the parking lots in accordance with the provisions of the parking agreement to be signed by him and for all other associated payments which he must make
pursuant to this agreement and its annexes. 

  

	 	8.4	The tenant undertakes to notify the local authority and other relevant bodies in writing, of his lease of the premises and to specify in such notice the size of the premises as it
appears in the Annex of Special Terms. The tenant undertakes to act so that all bills sent by the municipality or any other bill requesting payments and/or taxes applicable to him, will be issued to the tenant based on the size of the premises
specified in Annex “A”. At the end of the tenancy period and onward the tenant will reinstate the name of the landlord or any other name, as he is so instructed, on the bills. 

 For the carrying out of the actions stated in this subsection, the tenant commits to sign all forms and/or applications for these authorities, as
required. 
  

	 	8.5	 Each payment which the tenant must make to the landlord and/or the management company in accordance with the provisions of this agreement, shall be made together
with VAT, at the rate as will be from time to time pursuant to law and/or any tax which will replace it and/or 

  

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any tax which by law is applicable to any payment which the tenant must make under this agreement. A lawful tax receipt for payment of the VAT will be given
to the tenant immediately after the payment for such tax has cleared. 

  

	 	8.6	The tenant undertakes to show the landlord from time to time at the landlord’s demand, all the receipts and/or confirmations indicating that he indeed made all the payments
which he was obligated to make pursuant to this agreement, within 4 business days of receiving an advance written demand for such by the landlord. 

  

	 	8.7	If the landlord makes a payment, for any reason, which according to this agreement the tenant was obliged to pay, the tenant must reimburse the landlord for any sum expended by it,
immediately upon the first demand to do so. Original receipts of the landlord’s regarding such payments shall be conclusive proof of their accuracy. 

  

	9.	Construction and modification of the premises 

  

	 	9.1	In this agreement: 

  

	 	9.1.1	“Specifications Work” - the work which the landlord undertook to carry out according to the blueprint Annex “B” and the technical description Annex “C”
of this agreement. 

  

	 	9.1.2	“Landlord’s Work” - work and modifications to the premises beyond the specifications work to which the landlord agreed, at the request of the tenant, to carry out for
the tenant at his expense, as specified in Annex “C”. 

  

	 	9.1.3	“Tenant’s Work” - various construction on the premises beyond the specifications work and the landlord’s work which the tenant is interested in doing to the
premises on his own. 

  

	 	9.2	No later than the date specified in the Annex of Special Terms, the tenant will deliver for the inspection and approval of the landlord, technical specifications, and plans adapted
for execution, signed by the tenant, of all the works and modifications needed to be carried out on the premises by a breakdown of the specifications work, landlord’s work and the tenant’s work. Without derogating from the foregoing
generalities, the plans shall contain plans for the distribution of partitions and division of the premises into rooms, location of electrical points and outlets, telephone outlets, communication points, air conditioning, computers etc.,
distribution of lighting fixtures, and any other detail related to the landlord’s and tenant’s works. 

  

	 	9.3	 The landlord is entitled to approve the plans and technical specifications, ask for further details about them, make changes to them or refuse to approve them,
provided that a refusal to approve the tenant’s plans are based on reasonable grounds only. The landlord may also refuse to carry 

  

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out some or all of the works that the tenant asked to be included as part of the landlord’s works. The tenant may carry out these works as part of the
tenant’s works. When the tenant does submit a request for the landlord’s approval, the landlord shall give its reasoned answer within 21 days. 

 If the plans or specifications were not approved or if the landlord asked for modifications, changes or further details about them, then the tenant will submit new technical specifications and plans and/or
supplementary material to the landlord as per the landlord’s instructions within 14 days from the date that the tenant received the landlord’s comments. The plans and technical specifications, after being approved by the landlord, if
approved, and subject to modifications made or which were requested to be made, as stated above, shall be added as Annex “E” to this lease agreement and will constitute an integral part hereof. 
 It is understood that approvals by the landlord and/or an agent thereof, including the architect and/or other advisors of the landlord, do not impose on
the landlord any liability in respect to the specifications and plans, and the tenant is solely responsible for any defect, inconsistency, or mistake in the specifications and plans as well as for any damage caused as a result to the tenant and/or
the landlord. It is understood that the foregoing shall apply even if the tenant hires the services of the landlord’s advisors in order to prepare the plans and the specifications and that such liability shall apply to him whether he himself
paid the landlord’s advisors or whether their salary was paid by the landlord. 
  

	 	9.4	The parties shall decide among themselves the price for the landlord’s work, the terms of payment and the other terms relating to the carrying out of the landlord’s work
and the tenant shall make such payment to the landlord in the manner agreed together with lawful VAT. To dispel any doubt, it is understood that the landlord’s work is subject to what is expressly agreed among the parties and the satisfaction
of all the tenant’s obligations in respect to such agreements. 

  

	 	9.5	The landlord shall allow the tenant to carry out the tenant’s work on the premises at the same time the landlord, through its contractors, is carrying out various works in the
project as well as the specifications work and landlord’s work in the premises. 

  

	 	9.6	The tenant may begin the tenant’s work on the premises prior to the conveyance date from the date he is given license to do so by the landlord as specified in Annex
“A”. The tenant shall be obligated to carry out and finish sections of the tenant’s work by certain dates as the landlord will so instruct him taking into account the landlord’s needs, in order to allow it to carry out the
specifications work and the landlord’s work. The landlord may suspend, periodically, after giving advance notice, for a reasonable time, the license granted to the tenant for specific periods in various sections of the premises as required to
carry out the specifications work and the landlord’s work which cannot be carried out simultaneously with the tenant’s work. 

  

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	 	9.7	The status of the tenant on the premises and the project during the period between the granting of a license until the conveyance date shall be as a licensee on behalf of the
landlord, whereas this permission may be suspended from time to time, in the reasonable judgment of the landlord, and whereas the permission is expressly limited to the carrying out of the tenant’s work on the premises only in order to adapt
and modify the premises to his needs. 

  

	 	9.8	The tenant represents that he is aware that carrying out the specifications work and the landlord’s work is contingent, inter alia, upon the submission of the plans and
specifications by the tenant and their timely approval as stated, particularly in respect to all matters related to the planning and installation of partitions, air conditioning system, lighting, electricity, telephones, and the other systems on the
premises insofar as they are included in the specifications work and the landlord’s work, as well as other work required to complete the premises. Therefore, the landlord shall not be liable for any delay or setback in the completion of the
premises and/or in its conveyance to the tenant that is due to a delay by the tenant in submitting the plans or specifications for the landlord’s approval as stated above or a delay in conforming them to the landlord’s requirements.

 Without derogating from the foregoing, in the event of a delay of the approval of the tenant’s plans as described above,
the landlord shall be entitled to continue erecting the project and the sections of the premises required to complete the construction of the project and the premises, as per its discretion without connection to the plans and specifications which
the tenant was to submit as described above. In this instance, the manner in which the landlord continues to carry out such construction shall be deemed as acceptable to the tenant for all intents and purposes and he shall not have any claims or
complaints in respect thereto. The tenant shall be solely responsible for any damage and shall pay for all changes or modifications required as a result. Notwithstanding the above, the landlord may defer the conveyance in accordance with the delay
in the submission of the plans for execution. 
  

	 	9.9	The following provisions shall apply to the tenant’s works insofar as they are carried out: 

  

	 	9.9.1	The tenant shall execute the tenant’s works in a manner that will cause minimal interference with the other works in progress on the premises and the project regardless of
whether they are being carried out by the landlord or by another on its behalf or by other tenants. 

  

	 	9.9.2	 The tenant will be responsible to coordinate the tenant’s work in advance with the landlord and its contractors as well as any other person associated with the
work on the premises and the project who will be brought to his attention in advance. The tenant undertakes to keep the landlord’s representative apprised on a 

  

 15 

	 	 
continuous basis of the progress of the tenant’s work and to provide him periodically, upon his request and for his approval, schedules and milestones
regarding the carrying out of the tenant’s work. The tenant undertakes to carry out the tenant’s work according to the schedules and milestones and to make timely reports to the landlord’s representative of any expected deviation or
irregularity from them. 

  

	 	9.9.3	The landlord may supervise the tenant’s work. The tenant undertakes that while he holds the status of a licensee and during the carrying out of the tenant’s work, he or
any worker employed by him, will comply with instructions issued by the landlord’s representative and will act in compliance therewith. 

  

	 	9.9.4	It is understood that a deviation by the tenant from the plans or specifications approved by the landlord, constitutes a fundamental breach of this agreement and in such instance,
the landlord may suspend the carrying out or continuation of the tenant’s work which deviates from the terms of the approval and may demand that the tenant restore the condition of the premises to its former state without such action detracting
from any other right of the landlord under this agreement and/or any relevant law. 

 If the tenant fails to restore the
condition of the premises to its former state or fails to rectify the deviation, the landlord is entitled, but not obligated, to restore the condition of the premises to its former state on its own and charge the tenant for all costs and damages
incurred by the landlord as a result and the landlord shall be entitled to exercise any security which was given to it to secure compliance with the tenant’s obligations under this agreement including any guarantee and/or other security in its
possession. 
  

	 	9.9.5	To carry out the tenant’s work, the tenant undertakes to use only licensed and skilled professionals, standardized equipment and materials as specified in the specifications
and the plans that were approved by the landlord. The tenant shall be solely responsible for equipment and materials brought by or for him to carry out his work and installations, during the entire time they are situated on the project.

  

	 	9.9.6	The tenant and/or anyone acting on his behalf shall not be entitled to store or place material or equipment inside the project outside of the premises, or to use them to perform
work without the express prior written approval of the landlord. 

  

	 	9.9.7	The tenant and he alone shall be legally responsible to the landlord to any third party for any damage that he causes to the premises and/or the project and/or other leased space
and/or to other tenants of the project and/or the landlord and/or any third party as a result of the tenant’s work. 

  

 16 

	 	9.9.8	The tenant will insure his liability as stated and if the tenant hires any contractors to perform any of the tenant’s work, the tenant will act so that those contractors are
also insured with coverage that is consistent with the range of relevant risks and that this coverage will not be less than what is stated in this agreement. A precondition to the start of any type of work on the premises by the tenant is that the
tenant will provide the landlord with a confirmation of the arrangement of construction insurance as mentioned in section 25 herein. 

 The tenant undertakes that he or one acting on his behalf (including contractors and subcontractors hired for the tenant’s work) will take all safety and precautionary measures necessary to prevent loss, harm or injury to the body
and/or property of any person and/or body regarding the carrying out of the tenant’s work. Without derogating from the foregoing, the tenant undertakes that he or one acting on his behalf will take proper precautionary measures and will comply
with all laws that arrange the carrying out of the tenant’s work and will comply with the provisions of Annex “G(3)”—Fire Safety Procedures. 
  

	 	9.9.9	If a building permit or any other permit or license is required by law or custom to carry out any of the tenant’s work the tenant shall have the duty to obtain them prior to
beginning the work. The landlord shall cooperate and sign all documents required to have these authorizations issued. 

  

	 	9.9.10	The landlord will provide the tenant with water, for a fee, and electricity for the tenant’s work pursuant to the tenant’s request after coordination with the project
manager and the chief contractor, whereby the tenant will pay for the water and electricity that he consumes. 

  

	 	9.11	A delay by the tenant in completing the tenant’s work that is not due to an act or omission by the landlord, shall not defer the date for the start of the lease.

  

	 	9.12	The tenant, and he alone, shall be responsible for any damage and/or loss that will be caused to him and/or the landlord and/or the management company in the event that the tenant
fails to complete the tenant’s work on time as stated above until the date of conveyance of the premises provided that the delay was not a direct result of an act or omission by the landlord. 

  

	 	9.13	Without derogating from the foregoing generalities, the tenant shall pay rental fees and the remainder of payments which he must make pursuant to this agreement and will comply with
all of his obligations as specified in this agreement - even if conveyance of the premises is deferred due to the delays mentioned above - except for a period of delay which was caused by an act or omission by the landlord. 

 

 17 

	10.	Right of revocation  

 The tenant may revoke this
agreement if a fundamental breach of this agreement is committed by the landlord and is not rectified following 60 days advance written notice by the tenant to the landlord or if a non fundamental breach is committed and not rectified by the
landlord even after the tenant gave it at least 90 days or more depending on the circumstances, advance written notice, provided that under the circumstances of the case it would not be unjustifiable to revoke the agreement. 
 If the agreement is revoked by the tenant for circumstances other than what is stated above and/or for reasons other than those specified in this
agreement which confer upon the tenant a right to revoke the agreement and/or not for reasons of transferring the tenant’s rights to an alternative tenant as stated in section 22 herein, the revocation will constitute a fundamental breach of
this agreement and the tenant will be liable for full payment of the rental fees for the entire tenancy period in addition to all rights and other measures provided by the agreement and/or relevant law which are available to the landlord to recover
the damages that were caused as a result of the breach of contract. 
  

	11.	Conveyance of the premises 

  

	 	11.1	The landlord shall give the tenant at least 14 days advance notice of the conveyance of the premises prior to the conveyance date, which will be the estimated date stated in Annex
“A”. 

  

	 	11.2	A delay in the conveyance of the premises shall be considered a fundamental breach of the agreement. 

 Without derogating from the foregoing, if the conveyance date under this agreement is deferred due to a delay in the completion of the premises by the
landlord as a result of force majeure as stated in section 21.1 
 If the conveyance date of the premises is deferred pursuant to this
section, then the date for the start of the tenancy period shall also be delayed for the same amount of time, and the tenant shall be entitled to notify the landlord of his desire to extend the date for the termination of the tenancy period for an
identical period of time. 
  

	 	11.3	The tenant undertakes to appear at the premises on the conveyance date for which he received prior notice as stated in section 11.1, and to accept the premises, subject to the
completion of the premises according to the blueprints and the technical description, insofar as the matter relates to the landlord’s work and subject to the provisions of this agreement. 

  

	 	11.4	At the conveyance of the premises, whether or not the tenant is present, the landlord’s representative will prepare a conveyance protocol and this protocol will serve as
conclusive and absolute proof that the tenant accepted the premises in accordance with the terms of this agreement, subject to the landlord’s obligations to finish and make the repairs specified in the conveyance protocol in the event that such
exist. 

  

 18 

	 	11.5	To dispel any doubt, it is understood that the tenant’s abstention from accepting the premises or from appearing on the conveyance date or cooperating with the landlord in the
preparation of the protocol and/or the existence of any defects which according to the architect’s determination prevent use of the premises and/or the need to complete work in the premises by the landlord, shall not serve as an excuse for
refusing to accept conveyance, and in any such event the conveyance will be deemed to have taken place on time and the tenant will be obligated to accept the premises unless the architect determines that the defects or the need to complete the work
as stated prevents the conveyance of the premises. 

  

	 	11.6	The tenant’s acceptance of the premises constitutes confirmation by him that the premises were delivered to him in full satisfaction of the terms of this agreement and to his
full satisfaction, and that he has no nor will have any claims regarding the premises or this agreement, subject to that stated in the conveyance protocol and the landlord’s satisfaction of its obligations under this agreement. With the
exception of a latent defect or inconsistency. 

  

	 	11.7	Without derogating from the foregoing generalities, conveyance of the premises to the tenant is contingent upon satisfaction of all the tenant’s obligations in accordance with
this agreement including payment of rental fees, the production of a standing bank order, securities, and confirmations of insurance, etc. 

  

	 	11.8	The tenant undertakes to accept the premises on the conveyance date. The tenant acknowledges that in the event that he does not appear to accept the premises on the conveyance date,
after being given a notice regarding the date of the conveyance by the landlord or if the premises is not given to the tenant due to the non fulfillment of one or more of the tenant’s obligations, he shall be deemed as having accepted
conveyance of the premises on time without any reservations regarding its condition, and the duty to pay rental fees, management fees and any other payment in accordance with this agreement shall be paid by the tenant from this date onward.

  

	 	11.9	The landlord shall repair defects mentioned in the conveyance protocol instantly, insofar as possible, with the goal of doing all the repairs, if there are any, at one time. Defects
that require urgent repairs shall be made at the earliest possible time by the landlord. 

  

	12.	Permits and licenses 

  

	 	12.1	The tenant and he alone shall be responsible to obtain the permits and licenses required by law to manage his business on the premises and keep them valid, at his own expense and
under his sole responsibility. 

  

 19 

	 	12.2	The tenant represents that he is proficient and familiar with the business that he intends to operate on the premises and in all matters regarding the licensing and permits required
to operate such business. The tenant checked and is familiar with the requirements of the various authorities including the local authority, home command, sanitation department, Ministry of Health, Ministry of the Environment, etc. and he took these
requirements into account when he signed the agreement and when he planned the modifications to the premises and specifications of the landlord’s work and the tenant’s work. 

  

	 	12.3	The landlord undertakes to sign, at the tenant’s request, all documents and/or applications required to obtain a business license and/or other permit needed to operate the
business lawfully subject to the provisions of the law insofar as is required from it as owner of the premises provided that the signing of such instruments does not impose upon any type of liability whatsoever on the landlord.

  

	 	12.4	Without derogating from the foregoing, the tenant undertakes to manage his business and comply with all the requirements of the Business Licensing Law, 5728 - 1968, to obtain all
licenses and permits required by law to operate the tenant’s business on the premises in accordance with the purpose of the tenancy, and to renew them on a yearly basis or on any other basis as required by law. 

  

	 	12.5	The tenant alone shall be civilly and/or criminally liable for any offenses and/or legal violations committed on the premises. 

  

	 	12.6	The tenant himself shall make all payments, surcharges, betterment taxes for irregular use, fines and/or penalties that are imposed as a result of the management of the business
and/or use of the premises by the tenant and/or his employees and/or agents and/or his customers without a permit or which deviates from the permit, or is contrary to the city building scheme, or any law whether imposed on the landlord or the
management company or the tenant. 

  

	 	12.7	Nothing in this agreement or any act or approval or consent by the landlord shall be deemed as permission by the landlord to the tenant to use the premises and/or operate a business
in it without a permit and/or to deviate from the terms of the permit and/or contrary to any law. 

  

	 	12.8	It is understood that the failure to obtain any license required for the tenant to operate his business on the premises or the revocation of such license, will not release the
tenant from any of his obligations under this agreement. An abstention from using the premises at the start of the tenancy due to the failure to obtain any license, approval, or permit by the tenant, shall not detract from his obligations to pay
rental fees, management fees and any other payment which he must make pursuant to this agreement, to the landlord. The tenant renounces all claims of frustration, justification or any other claim related to the failure to obtain a license or
approval or their revocation or invalidation. 

  

 20 

	 	12.9	The provisions of this section 12 shall be deemed fundamental and material provisions of this agreement and their breach by the tenant constitutes a fundamental breach of the
agreement. 

  

	13.	Maintenance and operation of the premises and its systems 

  

	 	13.1	The tenant undertakes to care for the premises during the tenancy period. Without derogating from the foregoing generalities, the tenant undertakes as follows:

  

	 	13.1.1	To use the premises and its auxiliary systems carefully, not to overburden the permissible weight of the floors as specified in the annexes to this agreement.

  

	 	13.1.2	To be strict about keeping the immediate area surrounding the premises clean including the public spaces adjacent to it, and to manage the business within the parameters of the
premises only. 

  

	 	13.1.3	Not to place scrap metal, crates, items, goods, garbage and/or obstacles outside of the premises, including in the service corridors, and not to cause any nuisance, inconvenience,
noise, contaminative odors, or unpleasantness to the visiting public and/or workers and/or other residents of the project. 

  

	 	13.1.4	The tenant undertakes not to interfere or harm the good existing arrangement, cleanliness and good neighborly relationships in the project. 

 The tenant will pay for damages and all fines imposed by the authorities, if imposed, for a breach of the provisions of this section and/or violation of
any law. If fines are imposed on the landlord for acts or omissions committed by the tenant, the tenant will indemnify the landlord for the full amount of the fines, upon first demand to do so. 
  

	 	13.2	The tenant, in order to access the premises, undertakes to only use the access ways designated and marked by the landlord and/or the management company. The tenant undertakes to
park all vehicles and transport vehicles only in those places designated for such by the landlord and/or the management company from time to time, in respect to the access to the premises and the surrounding area. 

  

	 	13.3	The tenant undertakes to maintain the premises and its systems in working and good order as he received them from the landlord. The tenant represents that he is aware that
maintenance of the infrastructure of the electricity, plumbing, air conditioning and fire safety systems installed by the landlord on the premises and all the leased areas and/or those designated for lease in the tower (hereinafter: the
“Systems”) will be maintained by the management company and that all costs of maintenance of such systems shall constitute part of the management costs. 

  

 21 

	 	13.4	To dispel any doubt it is understood that the management company will only handle the costs of the regular maintenance of the systems and that only these costs are included in the
costs of the management company. Any maintenance of the systems required as a result of careless use of the systems and/or damage to the systems caused by a negligent act and/or omission by the tenant and/or his workers, invited guests and/or anyone
acting on his behalf shall be paid for by the tenant according to bills submitted to him by the management company, within seven days from receipt of a written demand from the management company and/or the landlord. Bills by the management company
shall be conclusive proof of their accuracy. A determination by the management company that a repair that was made is not included as part of the regular maintenance and therefore must be paid by the tenant, shall be final and binding on the tenant.

  

	 	13.5	Subject to the provisions of sections 13.3 and 13.4, the tenant undertakes to make, at his own expense and responsibility, repairs and ongoing maintenance to the premises, including
attrition caused by regular use of the premises. Without derogating from the foregoing generalities, any malfunction or damage caused to the premises by the tenant, his workers, agents, visitors or customers, or as a result of normal attrition,
shall be repaired immediately within a reasonable time depending on the nature of the circumstances by the tenant, at his expense, after reporting all material malfunctions or damages to the landlord and receiving its approval for the measures that
he plans to undertake. 

 Maintenance and repair of the premises by the tenant shall be carried out by licensed and skilled
experts under the close supervision of the landlord and/or the management company. 
 To dispel any doubt, it is understood that the
provisions of this subsection do not refer to the systems which are to be maintained as specified in sections 13.3 and 13.4 above. 
  

	 	13.6	If the tenant does not repair, within a reasonable time based on the urgency of the situation, any damage or malfunction as stated above, the landlord shall be entitled but not
obligated, to make the repair, and the tenant will pay all costs for the repairs made by the landlord within 7 (seven) days from the date a bill for the repairs that was so issued was handed to him. 

  

	 	13.7	The tenant will enable the landlord and/or the management company and/or any one acting on their behalf to enter the premises at any reasonable time in order to check the premises
and/or to make or repairs of any kind to or by way of the premises. Nothing in this section shall impose any duty to take any action whatsoever on the landlord and/or the management company. 

  

	 	13.8	 The tenant shall manage his business on the premises by following the bylaws - Annex “F” of the agreement and all the procedures and 

  

 22 

	 	 
instructions that will be decided by the management company pursuant to its authority under this agreement including but without impairing from the foregoing
generalities, the tenant will be meticulous in his strict compliance with all the instructions of the management company and/or the landlord regarding the transport, entry and evacuation of merchandise and containers to and from the premises,
particularly in respect to the hours and methods for conducting such actions. 

  

	 	13.9	The tenant represents that he is aware that the landlord is the holder of rights to the infrastructure for the supply of water to the project and its connection to the
telecommunications network through Bezeq, the municipality and all other entities and that such rights are the sole property of the landlord. The right given to the tenant under this agreement is a temporary usufructuary right for the tenancy period
subject to any other term or provision in this agreement. 

  

	 	13.10	Insofar as the area of the premises contains secure rooms for each floor (hereinafter: “Secure Room”), the tenant represents and affirms that he is aware and it was made
clear to him that the secure room was designated as a secure room for the floor and/or as a shelter and he is prohibited from using it for any other purpose other than for protection during an attack, unless he obtains a permit from the relevant
authorities pursuant to law, including the Civil Self-Defense Law, 5711 - 1951. 

 The tenant represents that he will not use
the secure rooms without possessing the licenses required by law, including the Civil Self-Defense Law, 5711 - 1951. 
 The tenant represents
and covenants that the responsibility to obtain the licenses required by law to use the secure rooms is exclusively upon him, and the tenant will not have any claim and/or demand and/or action against the landlord if he cannot obtain these licenses.

 It is understood that the right to use the secure rooms is subject to the directives of the home front command and all relevant law.
Without derogating from the foregoing generalities, the tenant undertakes to maintain the secure rooms and to use them in accordance with the law, the directives of the home front command, and the instructions of the management company based on the
relevant laws. 
 In emergency situations the tenant undertakes to clear out the secure rooms instantly and make them available to the public.
To dispel any doubt it is understood that the tenant will continue to pay, even when the secure rooms become available to the public, all the payments relating to the secure rooms fixed in this agreement and the management agreement. 
 The tenant will be entitled to lock the secure rooms, in his discretion, provided that he leaves a key for the secure room with the management company so
that they can enter in an emergency or conduct an inspection in coordination with the tenant. 
  

 23 

	 	13.11	Insofar as other secure rooms exist outside of the premises, the tenant represents that he is aware that the landlord may, in its sole discretion, confer rights to them upon third
parties and the tenant shall not have any claim and/or action against the landlord as a result. 

  

	14.	Posting signs 

  

	 	14.1	The tenant will not post any sign on the premises including on its walls or outside windows and/or its roof and/or within the premises so that it can be seen outside of the premises
and/or on the Land or surrounding area without the prior written approval of the landlord. The tenant must submit, for the prior approval of the architect, any application for posting signs that bear his commercial name and/or any other sign
designed for him or pertaining to him such as a commercial or other advertisement for any entity. Approvals by the landlord and the architect and obtaining all necessary licenses are prerequisites for the posting of the signs. If the tenant obtains
such approval, the tenant will install the sign in a skilled and professional manner at his own expense and sole liability and will be responsible to maintain it during the entire period of the tenancy and will be responsible for payment of all
fees, taxes, surcharges and/or any other payment in respect thereto. 

  

	 	14.2	The placement and maintenance of the signs in the project which are not on the premises will be done in aggregate by the landlord and/or through the management company. The upkeep
costs for the maintenance of such signs will be part of the management fees. 

  

	 	14.3	Without derogating from the foregoing, the landlord and/or the management company may at the tenant’s expense, remove or take down any sign and/or poster and/or ad that was
placed or hung in the project, including in public places, or on the walls or windows of the premises without the prior written approval of the landlord and/or management company, and the tenant waives all actions or claims relating to their removal
or for any damage that may be caused as a result. 

  

	 	14.4	The provisions of this section 14 are fundamental and material and their breach constitutes a fundamental breach of the agreement. 

  

	15.	Electricity 

  

	 	15.1	Definitions 

 In this section: 
 “The Engineer” - an electrical engineer or licensed electrician who will be responsible for the power system in the project for the landlord.

 “Power Services” - supply of power including operation, maintenance and insurance coverage of power fixtures and electrical
systems to be installed in the project and premises by the landlord. 
  

 24 

	 	15.2	General: 

  

	 	15.2.1	The tenant represents that he is aware that the landlord is the holder of the rights to the infrastructure for the supply of power to the project from the electric company and any
other entity and that all such rights are the sole property of the landlord. The right given to the tenant under this agreement is a temporary usufructuary right for the tenancy period and is subject to all terms and other provisions in this
agreement. 

  

	 	15.2.2	The tenant will bear all costs of connecting the electric meters subject to the provisions stated in Annex “C”. 

  

	 	15.3	Aggregate Electricity 

 The tenant represents that
he is aware that the landlord signed a contract with the electric company for the supply of aggregate electricity (hereinafter: “Power Supply Contract”) in accordance with the rules practiced by the electric company and he undertakes and
represents that: 
  

	 	15.3.1	The tenant may not ask for a direct and/or separate supply of power from the electric company and/or any other entity except from the landlord and shall not be entitled to contact
the electric company to request the installation of a separate meter or make a direct payment to the electric company. 

  

	 	15.3.2	The tenant renounces any action and/or claim for any cause of action against the electric company due to the non supply of power and/or interference with the power supply. The
tenant undertakes to compensate the electric company for any cost or damage incurred by it as a result of a complaint for not supplying power and/or disturbances to the supply that will be filed against the electric company by a customer and/or
licensee of the tenant’s. 

  

	 	15.3.3	Without derogating from the foregoing, if the tenant installs any electrical or electric equipment of any kind, he shall not be entitled to bring any complaints against the electric
company due to a power outage and/or disturbances to the supply of power. 

  

	 	15.3.4	The tenant is not entitled to supply and/or sell power and/or provide electrical services of any kind to any third party for a fee or for free whether directly or indirectly.

 The tenant acknowledges that the electric company can make changes to the power supply contract and he agrees in advance to
all changes that will be made to the terms of the contract as a result of various requirements from the electric company provided that such change does not affect the tenant’s use of power in the premises. 
  

 25 

	 	15.4	Supply of power 

  

	 	15.4.1	Electricity will be supplied to the premises at the strength fixed in Annex “A” of the agreement, with alternating current (AC), at a frequency of 50 cycles per second,
230 volts per phase and 400 volts between each phase. The supply will be single or triple phase protected by semi automatic fuses that are designed for the nominal current of the premises. The tenant is not allowed to replace these fuses without
permission from the landlord. 

  

	 	15.4.2	The tenant is not entitled to expand and/or modify and/or make additions to the power supply devices that will be provided for the premises. The landlord may disconnect or instantly
remove any expansion, modification, addition etc. that was made without the landlord’s permission, at the tenant’s expense, without impairing from the tenant’s responsibility for any damage that will be caused to the power supply
devices as a result from such work. 

  

	 	15.4.3	If the tenant is interested in a further allocation of electricity than what is being supplied to the premises in accordance with the technical description, Annex “C”, the
landlord will examine the possibility of increasing the electrical supply to the premises according to the electrical capacity of the project and will be entitled to refuse or agree to the request in its sole and absolute judgment, to be utilized
reasonably. 

 The tenant represents that he is aware that the landlord is not obligated to supply electricity beyond the
amount specified in the technical description and he will not bring any action or claims against the landlord if his request is denied. 
 Payment for connecting additional power as stated above shall be borne by the tenant and it shall be paid within 7 days from receipt of a demand to do so from the landlord. The tenant shall be solely responsible for the installation of any
wiring or additional systems that are required to electricity as stated and they shall be added at his expense and under his responsibility alone. 
  

	 	15.5	Safety 

  

	 	15.5.1	The landlord and/or the engineer and/or anyone acting on their behalf shall be entitled to visit the premises at any reasonable time with prior notice to examine all electrical
devices, for safety inspections and to confirm compliance with accepted safety standards. 

  

	 	15.5.2	 If the engineer believes that any of the electrical devices that were installed on the premises may cause harm to the general power supply system in the project
and/or poses a safety hazard 

  

 26 

	 	 
or danger and/or does not meet the accepted safety standards and/or the burden it places on the electrical supply system may disrupt the system - the
engineer may demand that the device be repaired and/or replaced and/or changed, and the tenant undertakes to take all steps required to comply with the engineer’s demand within 14 days. 

  

	 	15.5.3	The tenant shall be responsible for all damages caused to equipment and/or electrical devices on the premises and/or the electrical system outside of the premises as a result of
operating an improper electrical device, as stated above. 

  

	 	15.6	Maintenance of electric devices 

  

	 	15.6.1	The tenant shall allow, upon prior coordination and at a reasonable time, all licensed workers of the landlord’s, access to all electrical devices on the premises, for the
purpose of inspection, supervision, installation, repair, replacement of defective parts, removal, dissemble, assembly, etc. work that in the landlord’s opinion is required on the electrical devices supplying electricity to the premises. The
tenant will act to remove and/or move any device that would interfere with the aforementioned work. 

  

	 	15.6.2	In order to carry out these works, the landlord may temporarily, with prior notice and if possible, prior coordination, disconnect, for the necessary time period, the supply of
electricity to the premises, provided that the suspension of power to the premises is for a reasonable time taking into account the type of work being conducted on the premises. 

  

	 	15.7	Electrical devices 

  

	 	15.7.1	All instruments, accessories, and other equipment related to the electrical supply system (hereinafter: “Electrical Appliances”) belong solely to the landlord, whether or
not the tenant shares in their purchase and/or installation and/or connection costs. 

  

	 	15.7.2	The tenant shall be prohibited from working on the electrical devices unless he receives prior written approval from the landlord to undertake such work that is not being done by
the landlord. 

  

	 	15.8	Limited liability of the landlord for power shortages 

 The landlord shall be entitled to suspend or limit the supply of electricity to the premises and other places in the project, in the following instances: 
  

	 	15.8.1	 In any instance of a suspension or limitation of electricity, whose source is an internal malfunction and/or outside of the central 

  

 27 

	 	 
power supply system of the project, for example, national or regional power shortages, the source of which is with the electric company or in the internal
electrical system of the project. 

  

	 	15.8.2	In any instance where there is danger to persons or property. 

  

	 	15.8.3	In any other instance, where the engineer gives instructions regarding the need for such suspension. 

 If it is possible to notify the tenant prior to the expected power suspension, advance notice will be given by the landlord, in a manner determined by
the landlord. The landlord will not be responsible nor will bear the costs for any damages caused to the tenant due to the power suspension, in the instances specified above and/or in any other instance over which the landlord had no control.

  

	 	15.9	Unpredictable changes 

 If, as a result of a law,
regulation or action by an authorized authority, the landlord is of the opinion that there is a need to make any type of change to the electrical services supply system to the premises, the landlord shall make such changes without the tenant having
any complaint and/or action against it and the tenant will pay the cost for carrying out such work. 
  

	 	15.10	Suspension of electrical services 

 In the event of
the commission of a fundamental breach of the agreement where the tenant has not rectified the breach after receiving 8 days advance written notice to do so, including and particularly in the event where the tenant has not paid the rental fees or
management fees that he owes, the landlord may disconnect the electricity on the premises, after giving 48 hour written notice prior to doing so. In the event of such suspension, all costs, damages and losses due to the suspension shall be the sole
responsibility of the tenant. 
  

	 	15.11	Suspension of aggregate supply 

 Notwithstanding the
aforesaid, the landlord and/or the management company, after obtaining prior approval of the electrical company, may order the tenant to connect to the electrical network and power supply of the Israel Electric Company Ltd., and in this instance,
the stipulations and rules of the electric company, related to the contractual arrangements for and supply of electricity to the tenant will apply. All costs resulting from such arrangements with the electric company and the connection of the
premises to the electrical network of the electric company shall be borne solely by the tenant. 
  

	 	15.12	Payment for electrical services 

  

 28 

	 	15.12.1	The tenant represents that he is aware that the charges for the use of electricity on the premises will be made by the reading of a meter to be installed by the landlord at the
tenant’s expense. The type of meter will be chosen by the landlord in its sole judgment. The rate at which the tenant will be charged for the use of electricity on the premises by a reading of the meter will be the rate accepted from time to
time by the electric company for consumption of electricity at the rate for load and time at a low voltage. 

  

	 	15.12.2	The tenant represents that he is aware that in addition to the charge for using electricity on the premises he will also be charged for consumption of electricity for the
floor’s air conditioning system. The charge to the tenant for the electricity use of the floor’s air conditioning system will be calculated according to the tenant’s proportionate share of the overall consumption of the floor’s
air conditioning system. The tenant’s proportionate share of the consumption of electricity of the floor’s air conditioning system shall be calculated according to the proportionate share of electrical consumption on the premises compared
to the electrical consumption in all the leased areas on the floor. 

 Electrical consumption for the floor’s air
conditioning system shall be measured by the reading of a meter to be installed by the landlord at the expense of the tenants on the floor. The type of meter will be determined by the landlord in its sole judgment. The rate by which the tenant will
be charged for the floor’s air conditioning system shall be the rate that is accepted from time to time by the electric company for electric consumption at the rate for load and time at a low voltage. 
 An example for calculating the tenant’s share of the electrical consumption of the air conditioning system on the floor: If for example the total
consumption of all the tenants on the floor (not including electrical consumption of the floor’s air conditioning system) according to an aggregate reading of all the meters installed for the leased properties on the floor is 100 and the
electrical consumption on the premises according to a reading of the meter installed for the premises is 20, then the tenant’s share in the electrical consumption of the air conditioning system for the floor will be 20%. 
  

	 	15.12.3	 If, in the opinion of the landlord, the premises require a higher consumption of electricity of the floor’s air conditioning system than the tenant’s
proportionate share of the floor’s use as stated above, then the landlord may establish that the tenant’s share of the payment for electric consumption for the air conditioning system on the floor will be greater than his proportionate
share of electrical consumption of all the tenants on the floor. In this 

  

 29 

	 	 
instance the tenant’s proportionate share in the payment of electric consumption for the air conditioning system on the floor will be calculated
according to a variable fixed by the landlord after consultation with its electrical specialist. If such a variable is established for charging the tenant, the tenant will pay his share for the consumption of electricity for the air conditioning
system on the floor in accordance with the landlord’s determination. 

  

	 	15.12.4	The tenant affirms that he is aware that the use of electricity in the public spaces and the public systems, including but not limited to, elevators, central air conditioning
systems and the like, will be charged through the management company. 

  

	 	15.12.5	The tenant undertakes to pay the landlord for the use of electricity during the tenancy period as charged by the landlord by giving a standing order to the landlord to debit the
tenant’s account which will be submitted to the bank as described in section 7 above. The tenant affirms and agrees that the landlord may suspend the supply of electricity to the premises whether due to a non payment of an electrical bill or
any fundamental breach of this agreement, after giving 8 days advance written notice. 

 The tenant represents that he is aware
that the payments for electricity augment but do not replace other payments to be made pursuant to this agreement. 
  

	 	15.13	The tenant represents that he is aware that a substation of the electric company and all the devices associated and/or related to the substation, exists and is operated on the
project and he waives all claims and/or actions including complaints related to noise and/or nuisance against the landlord and the Israel Electric Company Ltd. relating to the substation and its operation on the project. 

  

	16.	Additions and modifications to the premises 

  

	 	16.1	The tenant is not entitled to make any changes or additions to the premises, its fixtures or systems, whether they are internal or external changes, without obtaining prior written
consent by the landlord (hereinafter: “Changes and Additions”). 

  

	 	16.2	Without derogating from the foregoing, if and when the tenant plans and/or or makes changes or additions to the premises, the landlord shall have the right and choice to demand
their removal and the restoration of the premises to its previous physical condition as it was on the date of conveyance without the changes and additions. 

 If the landlord does not demand the removal of the changes and additions, they shall become the property of the landlord without charge, and the 

  

 30 

 
tenant shall not have any claim and/or demand against the landlord for the changes and additions and/or for his investment in them. 
  

	 	16.3	It is understood that if the landlord permits the tenant to make any type of changes and additions to the premises, section 9 of this agreement relating to work and modifications on
the premises by the tenant shall apply to them, mutatis mutandis. 

  

	17.	Management of the tower 

  

	 	17.1	The tower shall be managed by the landlord or by a management company appointed by the landlord who will engage in the management and maintenance of the tower. The landlord will be
entitled at any time from time to time to transfer the management from the management company appointed by it to another management company, as per its sole judgment, and the tenant undertakes to sign the management contract with the proviso that
the tenant’s obligations to the management company and/or the landlord will not be materially altered. 

 The signing by
the tenant on this agreement constitutes a direct commitment to the management company, when it will be appointed, insofar as the provisions apply to it, as well as a commitment by the tenant to the landlord to satisfy all of his obligations towards
the management company whether or not they are specified in this agreement or whether they are specified in the management contract, and these commitments by the tenant can be deemed a third party contract. 
  

	 	17.2	As long as a management company is not appointed, the landlord shall serve as the management company for purposes of this agreement. 

  

	 	17.3	As soon as the landlord informs the tenant that a management company has been hired to supply the management services to the tower, the tenant will satisfy all of his obligations
pursuant to the management contract vis a vis the management company, and upon the landlord’s request, will sign the management agreement and the annexes thereto with the management company. 

  

	 	17.4	Without derogating from the provisions set forth in the management contract, the management company will determine the arrangements and procedures relating to the management and
maintenance of the tower and will establish bylaws which will apply to the various tenants and users of the tower and will monitor its execution. The bylaws appended hereto as Annex “F” of this agreement will be valid insofar as the
management company has not published any changes to it. 

  

	 	17.5	The management company will supply on its own and/or through subcontractors, management and maintenance services to the tower as specified in the management contract.

  

 31 

	 	17.6	The tenant will pay management fees as specified in the management contract. On the conveyance date the tenant will pay management fees in advance for the first quarter according to
a projection calculated by the management company. 

  

	 	17.7	The tenant represents that he is aware that payment of the management fees and strict compliance with the management contract, the bylaws and directives of the management company is
necessary for proper management of the project at a high level and standard, and it is for the benefit of the tenant and all the users and visitors of and to the project. 

  

	 	17.8	The tenant represents that he is aware that the landlord may take any action pursuant to this agreement through the management company, including collection of rental fees or any
other payment and may appoint the management company its representative for all matters pursuant to this agreement. 

 Any
request, demand or action by the management company to the tenant on behalf of the landlord shall be deemed a request, demand or action by the landlord and the tenant undertakes to act towards the management company in all matters in the same manner
as he would act to the landlord pursuant to this agreement. 
  

	 	17.9	The tenant represents that he is aware that the aforesaid does not detract from any provision in the management contract but is in addition thereto and any breach of an obligation
pursuant to this section shall be deemed a fundamental breach of this agreement and the management contract. 

  

	18.	Parking lots 

  

	 	18.1	The tenant is aware that there are parking lots on the project (hereinafter: “Parking Lots”). 

  

	 	18.2	The landlord shall be entitled in its sole judgment, to decide from time to time to operate the parking lots or any part of them as paying parking lots, whether on its own or
through others, to lease them or rent them to subcontractors to operate them as paying parking lots and/or to decide arrangements of use, operation, parking, entry and exit, and hours of operation on the lots and to change all these from time to
time. 

  

	 	18.3	If the lots are operated as paying parking lots the landlord and/or the management company and/or the parking lot operator (hereinafter: “Parking Lot Operator”) may set
from time to time the amount of parking fees as well as procedures for the operation of the lots. The price for a parking subscription is subject to the provisions of Annex “I” section 4.1. 

  

	 	18.4	 The tenant undertakes to comply with all such determinations and all arrangements and procedures to be fixed by the parking lot operator for this purpose and to use
the lots in a manner that will not harm other users, to heed the instructions of the parking lot operator, to follow signs and markings which will be set up in the parking lots, not to obstruct 

  

 32 

	 	 
passageways, to park only in those spots and areas that are designated for parking and not to cause any damage to the parking lots or their equipment. in the
event of obstruction of passageways or parking contrary to the instructions of the parking lot operator, the parking lot operator may take all steps necessary to remove the interference including towing the car, moving it, and taking all actions
that it deems fit and reasonable in order to keep proper order and operations in the parking lots. 

  

	 	18.5	The provisions of this section constitute direct obligations towards the landlord and/or the management company and/or any person or body that will operate the parking lots from
time to time, as warranted. 

  

	 	18.6	It is understood that the rental fees and management fees do not include payment for the use of the lots, and the tenant represents that the fact that he is a tenant does not confer
upon him or anyone acting on his behalf the right to use the lots. The use of the parking lots by the tenant on a permanent basis or by way of a subscription requires the signing of a separate agreement with the landlord and/or the management
company and/or the parking lot operator, in the language appended as Annex “I” of this agreement. 

  

	19.	Continuation of construction of the project 

  

	 	19.1	The tenant represents and affirms that he is aware that the erection of the project is taking place in stages and that there may be sections or stages of the project that will not
be completed by the conveyance date and the landlord may finish them at any time in its sole judgment. 

  

	 	19.2	The tenant waives any claims or actions against the landlord for any noise, nuisance, disturbance, inconvenience or the like incurred by him or the business that he is operating on
the premises due to the construction work or establishment and installation of any type of system or installations in the project and the surrounding area, provided that they do not materially affect the tenant’s ability to use the premises for
the purposes of the tenancy. 

  

	 	19.3	The landlord may at any time, without the need for the tenant’s consent, make any change or addition to the project, in its sole discretion, whether prior to the beginning of
the tenancy period or whether afterwards, including but not limited to, additions or reduction of areas, adding floors, areas or wings in the project, changing public spaces to areas for the individual use by various residents, change of entrances
and passageways, various building extensions and any other change to the structure or plans of the project, provided that they do not pose a constant and unreasonable interference with the operation of the premises pursuant to the purpose of
tenancy. 

 The tenant undertakes not to interfere or oppose any change or extension as stated above for any reason. 

 

 33 

	 	19.4	Without derogating from the aforesaid, the landlord may ask from time to time for changes to be made to the city building scheme in respect to the plans of the project and the uses
of the project including extending building areas etc., and the tenant represents that he undertakes not to oppose any such change and not to take part in the filing of objections with the planning committees directly or indirectly. If the tenant
violates this obligation, it shall be deemed a fundamental breach of the agreement. 

  

	 	19.5	If the landlord is authorized to add areas adjacent to the tower and/or add floors to the tower in which the premises are located, the landlord may build these additional areas
subject to the aforementioned provisions while refraining as much as possible from interfering with the ordinary use of the premises by the tenant. 

  

	 	19.6	The landlord may, without the tenant’s permission, transfer through the premises and install on its own or through others on its behalf, as needed, all types of pipes,
including air conditioning ducts, water pipes, cables and power cables, telecommunication and television cables etc. whether they serve the tenant and/or the premises and/or the project or not, and the tenant undertakes to allow the landlord or
anyone acting on its behalf to enter the premises to do such work with all that it involves provided that the work is done with prior coordination and in a manner that will abstain insofar as possible from causing a constant disturbance to the
tenant and that at the end of the operation the landlord will restore the premises to its original condition and fix any damage caused to the premises during the work. 

  

	 	19.7	The tenant is aware that during the continuation of the building of the project there may be changes in access to the project and the premises including the main access that crosses
the project, as well as access ways and entrances into the parking lots, and the landlord may make these changes with the purpose of making alternative access ways available insofar as possible and the tenant will not be entitled to bring any action
or claim against the landlord as a result. 

  

	20.	Evacuation of the premises 

  

	 	20.1	The tenant undertakes that upon the expiration of the tenancy period or upon the lawful revocation of this agreement for any reason (in this agreement: “Date of
Departure”), he will vacate the premises and return them to the landlord, when the premises are free of all persons and things, clean and in order as he received them from the landlord or in another condition following the completion of the
tenant’s work with the exception of regular attrition. The premises will be returned to the landlord painted in the original shade of color, free of all residents, tenancies or any other third party rights including any renovation, improvement,
extension, change, permanent fixture even if not installed by the landlord, unless the landlord demanded that such or any part of the additions be removed. 

  

 34 

 To dispel any doubt it is understood that any item and/or equipment and/or accessory and/or inventory
which cannot be defined as the landlord’s property pursuant to this agreement which is left on the premises after the tenant’s departure, within 7 days after the evacuation of the premises, shall be considered the landlord’s property
upon the evacuation and the tenant waives all claims and/or demands and/or actions for them. 
  

	 	20.2	When the tenant returns the premises to the landlord, an inspection of the premises shall be conducted by the engineer in the presence of a representative of the tenant after prior
coordination. The engineer will list the repairs that the tenant must make pursuant to this agreement, if he is so obligated, including repairing damage and defects relating to the restoration of the premises to its former state. If a representative
of the tenant is not present at the time of inspection by the engineer, his absence will not detract from the validity of the inspection and the findings to be included in the list of repairs or from the tenant’s obligation to fix them as
specified above. 

  

	 	20.3	If the tenant fails to make such repairs until the expiration of seven days from the end of the tenancy period, the landlord may make such repairs at the expense of the tenant. The
amount of time it takes to make the repairs, beginning on the date of the expiration of the tenancy period as determined by the engineer, shall be considered a period during which the tenant is late in the departure of the premises. The tenant will
pay the landlord, upon its first request, the price of the repairs as determined by the engineer, as well as rental fees for the period of repairs, whether or not the repairs actually took place. 

  

	 	20.4	The tenant undertakes that if he does not depart the premises upon the termination of the tenancy period as stated above, he will pay the landlord for the period between the date
fixed in this agreement for the evacuation of the premises and the date of actual departure, proper fees for the use of the premises in the amount of rental fees that would have been owed from the tenant to the landlord for the month prior to the
date designated for the evacuation from the premises multiplied by three, or the proportionate share of the rental fees for a period shorter than one month, without proof of damage (hereinafter: “Proper Usage Fees”). The tenant represents
that this sum is designated as fixed compensation by the parties after prior consideration, as a cautious and reasonable assessment of the damage that would be caused to the landlord due to the failure to evacuate the premises on time, without
derogating from any other right and/or measure available to the landlord under the agreement or relevant law. 

  

	 	20.5	 The tenant represents and undertakes that if he does not depart the premises on the designated date, the landlord and/or the management company are entitled to sue
and collect from the tenant, in addition to proper usage fees, all the sums, payments, taxes, commitments, expenses, losses or any other payment resulting from the failure to vacate the premises on time, for the period between the designated date of
departure 

  

 35 

	 	 
according to this agreement and the date of actual departure, as if the tenancy period had continued until the date of actual departure. The landlord and/or
the management company may exercise the guarantees given to the landlord and/or the management company pursuant to this agreement, without releasing the tenant from the duty to vacate the premises on time and/or detracting from all other measures
available to the landlord and/or the management company pursuant to this agreement or relevant law. 

  

	 	20.6	To dispel any doubt, the tenant represents that payment and/or receipt of proper usage fees and the other payments as described above, does not create between the parties any
tenancy relationship for the period after the date of departure of the premises. 

  

	 	20.7	The tenant represents that if he fails on his own to vacate the premises on the date of the departure from the premises pursuant to this agreement or upon its revocation, the
landlord and/or any person on its behalf, may enter the premises at any time that they deem fit without the need to provide advance notice, and remove all persons and things belonging to the tenant and/or which he uses for his business conducted on
the premises and for such purpose, to use reasonable force and all reasonable means including, opening the premises, changing locks, posting guards, and preventing the tenant or anyone acting on his behalf form entering the land and to act with the
premises as the owner thereof for all intents and purposes. 

  

	 	20.8	The landlord shall be entitled to store the property and equipment that if finds on the premises in any place it deems fit, and to charge rent and storage fees from the tenant, in
its sole discretion. 

  

	 	20.9	Without derogating from the foregoing generalities, the tenant gives the landlord power of attorney to disconnect the premises from the power network, water, gas and the other
systems and to use third parties for such purpose. 

  

	 	20.10	In any instance where the tenant fails to vacate the premises, the tenant and anyone present on the premises on his behalf or by his permission shall be considered as trespassers
and as “hot intruders” on the premises. The tenant represents that the landlord and/or anyone acting on its behalf shall not be responsible in any manner for any damage that will be caused to the tenant, if such damage is incurred, due to
any activity associated with evacuating the premises, equipment and property from the premises and/or the storage of the equipment or property following the failure to vacate the premises on time and he waives all complaints or actions against the
landlord in respect to such eviction. 

  

	 	20.11	 All expenses caused to the landlord due to the failure of the tenant to vacate the premises and due to the evacuation of the premises by the landlord as a result
including all sums which the tenant must pay according to this section shall apply to the tenant and the tenant 

  

 36 

	 	 
undertakes to pay all such sums immediately upon first demand to do so by the landlord. The landlord shall be entitled to collect any such sum by forfeiting
or exercising any guarantee or surety available to it. 

  

	21.	Force Majeure 

  

	 	21.1	The tenant represents and undertakes that the landlord and/or the management company shall not be deemed as having breached this agreement and/or failing to fulfill any of its
provisions if the reason for doing so is force majeure. 

 Force majeure for purpose of this agreement means fire, explosion,
demolition, natural disaster, national strike, war, expanded call up for reserves, work stoppage orders by the authorities and any other reason that is not under the influence and/or control of the landlord and/or management company and which is not
a result of negligence on their part. 
  

	 	21.2	The tenant agrees that a breach of the agreement and/or failure to keep any of its provisions due to a force majeure shall not serve as grounds by the tenant to cancel this
agreement in whole or in part and shall not serve as grounds for any action by the tenant against the landlord and/or the management company. 

  

	22.	Transfer of rights 

  

	 	22.1	The landlord and any of the entitles of the landlord may mortgage and/or pledge and/or endorse and/or sell and/or rent and/or lease and/or transfer their rights and/or obligations
in whole or in part under this agreement, and/or their rights and/or obligations to the project and/or in any section thereof, in whole or in part, and to bring in any entity or body to manage and/or own the project as they deem fit, provided that
the rights of the tenant under this agreement are not impaired, all to be conducted in a manner that it deems reasonable, in its sole and absolute discretion without the tenant having any actions or claims against it. 

  

	 	22.2	The tenant undertakes not to transfer and/or assign and/or endorse and/or pledge and/or mortgage directly or indirectly his rights under this agreement or any part thereof in any
manner to any person, nor to allow another to use or occupy the premises or any part thereof, as a subtenant or in any other manner, directly or indirectly, regardless whether the use, permission or benefit are defined, or whether for consideration
or for free. 

 Notwithstanding the above, the tenant may transfer his rights to an alternative tenant provided that the
following accumulated conditions exist: 
  

	 	22.2.1	The landlord gives prior written approval for the transfer of rights and for the specific alternative tenant. 

  

 37 

	 	22.2.2	The alternative tenant will use the premises in accordance with the purpose of the tenancy as fixed by this agreement. 

  

	 	22.2.3	The alternative tenant signed at the least a lease agreement with the landlord with the same terms as this agreement and provided the landlord with all the securities required by
this agreement. The landlord may stipulate its consent for the transfer of rights to the alternative tenant on various conditions including the addition of securities, as it deems fit. 

  

	 	22.2.4	After the alternative tenant signs this tenancy agreement and after he provides all the securities required and after the commencement of the tenancy period for the alternative
tenant, the tenant shall be released from all of his obligations under this agreement, subject to the fact that until such date he complied with all of his obligations pursuant to the agreement. 

  

	 	22.2.5	Notwithstanding the aforesaid, the landlord shall be entitled to notify the tenant that it is interested in revoking this agreement instead of allowing the tenant to transfer his
rights to an alternative tenant and in this instance the agreement will be revoked and the premises will be vacated on the date so decided between the parties. Subject to the satisfaction of the commitments by the parties under this agreement until
the date for the evacuation of the premises, neither of the parties shall have any claim and/or action against the other for the early revocation of the agreement. 

  

	 	22.3	The tenant undertakes not to enlist another or others in the occupancy and/or operation and/or management of the premises, not to confer upon any other person or entity rights of
occupancy and/or permission to use the premises or any part thereof, whether as a licensee, for a fee or for free, or in any other manner. 

 Notwithstanding the aforesaid, the tenant may sublet part of the premises on the following conditions: 
  

	 	22.3.1	The landlord gave its advance written consent for the subtenancy and the specific subtenant. The landlord’s consent shall not be withheld except on reasonable grounds.

  

	 	22.3.2	The tenant may sublet sections of the premises provided that the total areas actually sublet do not exceed 30% of the area of the premises. 

  

	 	22.3.3	The subtenant may use the premises in accordance with the purpose of the tenancy specified in this agreement. 

  

	 	22.3.4	The tenant shall be responsible for and shall guarantee that the subtenant fulfills all of the tenant’s obligations in this agreement and the annexes thereto and any breach of
this agreement by the subtenant shall be deemed a breach of the agreement by the tenant. 

  

 38 

	 	22.3.5	The tenant shall remain directly liable for the satisfaction of all of his obligations pursuant to this agreement towards the landlord. 

  

	 	22.3.6	The tenant commits that the provisions of this agreement constitute in any event an integral part of the subtenancy agreement. 

  

	 	22.6	If the tenant is incorporated as a partnership, whether registered or otherwise, then any change of partner or addition of partner requires the advance written consent of the
landlord and the landlord may stipulate its consent according to its exclusive judgment. 

  

	 	22.7	If the tenant is incorporated as a corporation, the tenant undertakes that during the entire tenancy period the control of the corporation will not change without the prior written
consent of the landlord. The landlord’s consent shall not be withheld except on reasonable grounds. Control in this section means control of at least 50% of the shares and rights of the company and the right to appoint at least 50% of the
company’s directors. 

  

	 	22.8	If the tenant’s rights are transferred contrary to the aforesaid, the matter will be deemed a fundamental breach of this agreement. 

  

	 	22.9	In the event of a merger (as defined in the Antitrust Law, 5748-1988), the tenant shall be entitled to transfer to the acquiring company all of his rights and duties under this
agreement, provided that the acquiring company assumes in advance and in writing to fulfill all of the obligations of the tenant towards the landlord as specified in this agreement, and provided that the tenant will be directly responsible and will
guarantee to the landlord for the acquiring company to satisfy all of the obligations of the acquiring company according to this agreement. 

  

	23.	Ineffectiveness of the protected tenancy laws 

  

	 	23.1	The tenant represents that he is aware that the project is a new building constructed after August 28, 1968 and that on such date no tenant was entitled to occupy the premises
as a protected tenant and since then the premises have not been leased with key money to any person, and no key money has been paid or received directly or indirectly in respect to the premises or the tenancy relationship created by an agreement.
Any repair and/or change or addition or investment made on the premises, if so made, by the tenant or one acting on his behalf shall not constitute or be considered as payment of key money and therefore the agreement or the tenancy shall not be
bound by the provisions of the Protected Tenancy Law (Consolidated Version), 5732 - 1972, or any other law which replaces this law. 

  

	 	23.2	 In no event shall the tenant be considered a protected tenant and he shall not be entitled to any payment of key money or another kind upon his departure from the
premises and he shall be obligated to vacate the 

  

 39 

	 	 
premises on the designated date and return the premises to the landlord when they are clear and free of all persons and things, as specified in this
agreement. 

  

	 	23.3	It is understood and represented that the provisions of this section are prerequisites and the basis for the contracting by the parties on this agreement and any contradictory claim
raised by the tenant or one acting on his behalf shall constitute a fundamental breach of this agreement. 

  

	24.	Liability and indemnification 

  

	 	24.1	The landlord and/or the management company and anyone who represents them and/or operates on their behalf shall not be liable in any manner for any damage and/or loss and/or ruin
and/or harm caused to the tenant and/or his business and/or his property, including, without derogating from the foregoing generalities, damage or harm caused as a result of the entry of the landlord and/or the management company or anyone acting on
their behalf onto the premises for the purpose or purposes specified in this agreement unless the damage, ruin and/or loss occurred as a result of the negligence of the landlord and/or management company and/or an actor on their behalf.

  

	 	24.2	Without derogating from the above, it is understood that the landlord and/or management company and anyone acting and/or operating on their behalf shall not bear any liability
and/or any duty for personal injury and/or loss and/or damage to property of any kind that may be caused to the tenant and/or his employees and/or anyone acting on his behalf, and/or to any third party including and without impairing from the
foregoing generalities, employers, agents, contractors, customers, visitors and any other person who is present on the premises or in another area occupied by the tenant except if the damage is caused as a result of the negligence of the landlord
and/or the management company and/or an actor on their behalf. 

  

	 	24.3	The tenant alone shall bear liability for all loss and/or damage caused to the premises and/or project and/or their contents and/or any person and/or corporation including his
employees and/or landlord and/or the management company and/or anyone acting on their behalf and/or the customer public and/or the visiting public in the project and/or any other third party, which results from the operation of the tenant’s
business on the premises and/or from the occupancy and/or use of the premises and/or any other action by the tenant and those acting on his behalf. 

  

	 	24.4	The tenant undertakes to compensate and/or indemnify the landlord and/or the management company for all costs for damages and/or expenses which they may be obligated or forced to
pay or which they paid as a result of damage related to the premises or its occupancy by the tenant and the use thereof. Including for any damage or expense incurred by them as a result of a lawsuit filed against them, whether civil or criminal, or
for the need to mount a defense against such a lawsuit, insofar as the lawsuit resulted from the non compliance or a breach of an obligation by the tenant or due to his liability pursuant to this agreement. 

  

 40 

	25.	Insurance 

  

	 	25.1      25.1.1	Without derogating from the tenant’s obligations pursuant to this agreement and/or relevant law, and in particular without derogating from the provisions contemplated by
section 9 of this agreement, prior to the date for the commencement of the tenant’s works on the premises, the tenant undertakes to arrange for construction insurance in his name, the name of the contractors and subcontractors, the landlord and
the management company, as specified in the approval of the arrangement of insurance appended to this agreement and constituting an integral part hereof and marked as Annex “G(1)” (hereinafter: “Confirmation of the Arrangement of
Insurance for the tenant’s work”). 

  

	 	25.1.2	Without the need for any demand by the landlord, the tenant undertakes to provide the landlord no later than the commencement of work on the premises with the “Confirmation of
the Arrangement of Insurance for the tenant’s Work”, signed by the insurer. The tenant represents that he is aware that the provision of the confirmation of the arrangement of insurance for the tenant’s work as stated above is a
prerequisite and a suspending condition for the carrying out of work on the premises, and the landlord shall be entitled to prevent the tenant from doing any work in the premises if such confirmation is not provided prior to the commencement of the
work. 

  

	 	25.1.3	The limits of liability for third party insurance to be arranged by the tenant, as stated in section (2) of the confirmation of the arrangement of insurance for the
tenant’s work (Annex “G(1)”) is the shekel equivalent to $1,000 per each square meter of the premises, however said sum shall not be less than $50,000 (fifty thousand U.S. dollars) and shall not exceed $1,000,000 (one million U.S.
dollars) per event and accumulative for an annual policy; the aforesaid is subject to the provisions of section 25.11 herein. 

  

	 	25.2      25.2.1	Without derogating from the responsibility of the tenant pursuant to the agreement and/or relevant law, the tenant undertakes to arrange and maintain for the entire period of this
agreement the insurance policies specified in the confirmation of arrangement of the insurance appended to this agreement and constituting an integral part hereof and marked as Annex “G(2)” (hereinafter: “Confirmation of arrangement
of the tenant’s insurance”) with a duly licensed reputable insurance company (hereinafter: “tenant’s Policies”). 

  

 41 

	 	25.2.2	Without the need for any demand by the landlord, the tenant undertakes to provide the landlord no later than the date of the opening of the tenant’s business in the premises or
prior to moving in any property into the premises (except for property included in the works insured by section 25.1 above)-the earlier of the two dates-with a confirmation of arranging the tenant’s insurance, signed by the insurer. The tenant
represents that he is aware that the provision of confirmation of arranging the tenant’s insurance is a precondition and suspending condition to the opening of his business on the premises and/or moving any property onto the premises (except
for property included in the work insured under section 25.1 above) and the landlord will be entitled to prevent the tenant from opening his business on the premises and/or moving property onto the premises if the confirmation is not provided prior
to the date designated above. 

  

	 	25.2.3	The limits of liability of third party insurance arranged by the tenant as stated in section (2) of the confirmation of the arrangement of the tenant’s insurance (Annex
“G(2)”) is a sum equal to $3,500 per square meter of the premises, however such sum shall not be less than $50,000 (fifty thousand U.S. dollars) and shall not exceed $5,000,000 (five million U.S. dollars) per event and accumulative for the
entire year of coverage; All of the above is subject to the provisions of section 25.11 herein. 

  

	 	25.2.4	It is agreed that the tenant is not obligated to arrange a policy for loss of revenue, as specified in section (4) of the confirmation of the arrangement of the tenant’s
insurance (Annex “G(2)”), however the provisions of section 25.4 herein shall apply for all loss of revenues as if a policy was arranged for it. 

  

	 	25.2.5	The tenant is entitled to exclude insurance for broken glass, as required by section (1) of the confirmation of the arrangement of the tenant’s insurance (Annex
“G(2)”), however the provisions of section 25.4 herein will apply for any loss or damage following broken glass as if a policy was arranged for it. 

  

	 	25.2.6	If the tenant believes that there is a need for additional and/or supplemental coverage to the tenant’s policies as stated above, the tenant must arrange and maintain the
additional and/or supplemental coverage. A section will be included in every additional or supplemental coverage of the tenant’s regarding a waiver of subrogation rights towards the landlord and the management company, regarding property
insurance and/or the policy holder’s name will be expanded to include the landlord and the management company, regarding liability insurance, subject to a cross liability clause. 

  

	 	25.3	The tenant commits to update the amounts of insurance for the policies arranged pursuant to sections (1) and (4) of the confirmation of arrangement of the tenant’s
policies (Annex “G(2)”) from time to time, so that they will always reflect the full value of the insured items that they cover. 

  

 42 

	 	25.4	The tenant states that he will not have any complaint and/or demand and/or action against the landlord, management company or other tenants and/or lessees in the project, who have
in their tenancy agreements or any other agreement conferring upon them rights in the project, a parallel exemption in respect to the tenant, for damage for which he is entitled to indemnification if not for the deductible listed in the policy
according to the policies arranged in accordance with section (1) of the confirmation of the arrangement of insurance for the tenant’s work (Annex “G(1)”) and sections (1) and (4) of the confirmation of the arrangement
of the tenant’s insurance (Annex “G(2)”), and the tenant releases the aforementioned from any liability for damage for which is entitled to such indemnification. The aforesaid regarding an exemption from liability will not apply in
favor of a person who caused damage maliciously. 

  

	 	25.5	To dispel any doubt, it is understood that the failure to provide the confirmations of insurance on time, as stated in sections 25.1.2 and 25.2.2 shall not impair from the
obligation of the tenant under this agreement, including, and without impairing from the foregoing generalities, any duty of payment applicable to the tenant. The tenant commits to fulfilling all of his obligations under this agreement even if he is
prevented from doing work and/or gaining occupancy of the premises and/or moving property into the premises and/or opening his business on the premises, due to the failure to present the confirmations on time. 

  

	 	25.6	No later than the 14th day prior to the
expiration of the tenant’s insurance, the tenant commits to deposit with the landlord a confirmation of the arrangement of insurance as specified in section 25.2.2 for an extension of the policy for an additional year. The tenant undertakes to
return and deposit the confirmation of arranging the insurance on the designated dates, each policy year as long as the agreement remains valid. 

  

	 	25.7	The landlord may inspect the confirmations of insurance provided to it from the tenant as mentioned in sections 25.1.2, 25.2.2 and 25.6 and the tenant undertakes to make any
reasonable change or amendment that is required in order to adapt them to his obligations pursuant to this section 25. The tenant represents that the landlord’s right of review in respect to the confirmations of insurance and its right to order
an amendment of the tenant’s insurances as stated above, does not impose upon the landlord or anyone acting on its behalf any duty or any liability regarding the confirmations of insurance, their quality, scope, and validity of the
tenant’s insurance, or in respect to their absence, and does not detract from any duty imposed on the tenant under this agreement. 

  

	 	25.8	The tenant undertakes to comply with the terms of the insurance policies arranged by him, to pay the premiums in full and on time, and to act and ensure that the tenant’s
policies are renewed from time to time according to need, and will remain valid for the entire tenancy period. 

  

 43 

	 	25.9	The tenant undertakes to follow the safety procedures to be publicized from time to time by the landlord and/or the management company and undertakes not to take and/or allow
another to take any action or omission on the premises and/or the project which may cause an explosion and/or leak and/or which may endanger lives or the project. 

  

	 	25.10	The tenant commits that if the landlord and/or the management company are obligated to pay additional premiums beyond what is acceptable due to the irregular activity of the tenant,
the tenant will pay the landlord and/or the management company, as the case may be, the difference, immediately upon their first demand to do so. 

  

	 	25.11	It is understood that the determination of the limit of liability as specified in sections 25.13 and 25.2.3 above is the minimal demand imposed on the tenant, and the tenant must
analyze his exposure to liability and determine the limits of liability accordingly. The tenant states that he is estopped from raising any complaint and/or demand against the landlord and/or the management company and/or anyone acting on their
behalf, relating to the negligible limits of liability. 

  

	 	25.12	The landlord undertakes to arrange and maintain on its own or through the management company, for the duration of this agreement, the following policies (hereinafter: the
“Project’s Policies”) with a duly licensed reputable insurance company: 

  

	 	25.12.1	Structural insurance for the project against loss or damage due to the accepted risks with expanded fire insurance including fire, smoke, lightening, explosion, earthquake, storm
and hurricane, flood. Damages caused by liquids and cracking of pipes, injury by vehicles, injury by aircraft, disturbances, strikes, malicious damage and break in damage. These policies shall contain a waiver of subrogation clause towards the
tenants for damage caused by them provided that the subrogation clause will not apply in favor of a person who causes damage maliciously. It is expressly agreed that for purposes of this section “Structures of the Project” shall not
include the contents of the leased areas and will not include any addition, renovation or expansion done to the leased areas by or for the tenants (that is not through the landlord). 

  

	 	25.12.2	 Third party insurance at a limit of liability that will not be less than the sum of $10,000,000 (ten million U.S. dollars) per event and accumulative during a
policy year, that covers the duty of the landlord and the management company. The policy will be expanded to indemnify the tenant for harm or damage that may be caused to the person and/or property of any person inside the project, but outside of
the premises, subject to the cross policy clause, by which the insurance will be deemed as having been arranged separately for each of the entities of the policy holder. It 

  

 44 

	 	 
is expressly agreed that this policy is residual and is extra coverage above all third party liability insurance policies that the tenant arranged or
undertook to arrange, and this policy will not be considered as a joint policy to those arranged by the tenant. 

  

	 	25.12.3 	Employers insurance that covers the duty of the management company to its workers for harm caused during and due to their employment with the management company, with a limit of
liability that will not be less than the maximum standard limit of liability acceptable in Israel at the time of the arrangement of the policy and/or its renewal. 

  

	 	25.12.4	Insurance covering the loss of rental fees and management expenses for damage caused to the project structure due to the risks specified in section 25.12.1, for a compensation
period that will not be less than 12 months. Such policy will contain an express waiver of subrogation clause in favor of the tenant, provided that the waiver of subrogation shall not apply in favor of a person who causes damage maliciously.

 The arrangement of the policies specified above shall not add to the liability of the landlord and/or the management company
beyond the provisions of the tenancy agreement and/or management contract and/or detract from the liability of the tenant under such agreements (except in respect to the provisions of section 25.12 herein. 
  

	 	25.13	The landlord represents on its behalf and on behalf of the management company that it will not have any claim and/or demand and/or action against the tenant for damage for which
they are entitled to indemnification and/or for which they are entitled to be indemnified if not for the deductible specified in the policy) pursuant to the policies that were arranged by them as stated in sections 25.12.1 and 25.12.4 above, and
they release the tenant from any liability for such damage. The aforesaid regarding an exemption from liability shall not apply in favor of a person who caused damage maliciously. 

 If a policy incident occurred that is covered as stated in section 25.12 under circumstances for which the tenant is liable as stated in section 24 above,
the tenant shall pay the deductible under such policies, provided that the deductible for each such event does not exceed $10,000 (ten thousand U.S. dollars). 
 A breach of section 25 and its clauses constitutes a fundamental breach of the agreement. 
  

	26.	Guarantee 

  

	 	26.1	 To secure the satisfaction of all of the tenant’s obligations under this agreement and the management contract, the tenant undertakes to provide 

  

 45 

	 	 
the landlord at the signing of this agreement, a bank guarantee in the language appended hereto as Annex “H” as specified herein (hereinafter: the
“Guarantee”): 

  

	 	26.1.1	The guarantee will be a bank guarantee linked to the index, non contingent, assignable, and made in favor of the landlord, able to be forfeited in its entirety or in installments at
any time, and duly stamped. 

  

	 	26.1.2	The guarantee will be in the equivalent amount of rental fees for a number of rental months with linkage differential at the rate on the conveyance date, with VAT, as specified in
the Annex of Special Terms. 

  

	 	26.1.3	The validity of the guarantee will be until the end of three months following the expiration of the tenancy period. If the agreement confers upon the tenant a right to extend the
tenancy period for an extended tenancy period and the tenant exercises his right to extend the tenancy, the tenant will extend the guarantee no later than the date of the beginning of the extended tenancy period and/or will revise the amount as
required by the terms of the extended tenancy. 

  

	 	26.1.4	Any expense involved in the issuance of the guarantee including fees, stamp duty and the like shall be paid solely by the tenant. 

  

	 	26.1.5	The landlord may exercise the guarantee or a part thereof in its sole discretion in any instance of a breach of the contract and/or a breach of the management contract by the tenant
and/or in any instance where the landlord and/or the management company are not paid in a timely manner by the tenant. 

  

	 	26.2	The failure to produce the guarantee as provided by this section including supplementing it in the event that it was exercised shall be deemed a fundamental breach of this agreement
and will grant the landlord the right to revoke the agreement and/or defer the conveyance date of the premises until the guarantee is produced without detracting from the tenant’s duties under this agreement, including his duty to pay rental
fees, management fees and all other payments which he must remit according to this agreement, and without derogating from any other measure available to the landlord by this agreement and/or relevant law. 

  

	 	26.3	In any instance where the aforementioned guarantee or a part thereof is exercised, the tenant must supplement the guarantee and provide the landlord within 7 days from the date of
exercise a new bank guarantee in the sum that was forfeited. 

  

	 	26.4	 The tenant represents and undertakes that he is aware that the giving of the guarantee pursuant to this agreement and/or its exercise by the landlord does not
constitute a waiver and/or infringement of any right 

  

 46 

	 	 
belonging to the landlord, including and without derogating from the foregoing generalities, its right to any other measure conferred upon it by this
agreement or by relevant law. 

  

	 	26.5	The exercise of the guarantee by the landlord as stated, shall not grant the tenant any right to the premises and does not constitute a waiver or stipulation of any of the
landlord’s rights or from the tenant’s obligations pursuant to this agreement and it does not replace any of them. 

  

	 	26.6	Upon the termination of the tenancy period and after the full satisfaction of all the tenant’s obligations pursuant to this agreement, including his obligation to depart the
premises, full payment of rental fees, payment of taxes, expenses and all other sums which he must pay according to this agreement and by law, the landlord will return the guarantee to the tenant. 

  

	 	26.7	A violation of the provisions and commitments by the tenant according to this section constitutes a fundamental breach of the agreement. 

  

	27.	Breaches and remedies 

  

	 	27.1	The Contracts Law (Remedies for Breach of Contract), 5731-1970 shall apply to a breach of this agreement, even in those instances where specific remedies or measures are conferred
by this agreement for the breach, without derogating from the provisions of this agreement or the provisions of any law. 

  

	 	27.2	Moreover, the tenant waives all rights of offsetting or claims of offsetting against the landlord and/or the management company relating to sums owed from him to the landlord and/or
the management company pursuant to this agreement and the management contract. 

  

	 	27.3	Without derogating from any other measure and in addition to any right of the landlord derived from this agreement and any relevant law, the landlord is entitled to revoke the
agreement, notwithstanding any provision about the tenancy period and the tenant shall be obliged in this instance to vacate the premises immediately or on the date determined by the landlord and restore the premises to the landlord as provided by
this agreement, in each of the following instances: 

  

	 	27.3.1	The tenant commits a fundamental breach of this agreement. 

  

	 	27.3.2	The tenant breaches the agreement or a provision thereof that is not a fundamental breach and fails to rectify the breach within 7 days of the date when he received notice of such
from the landlord. 

  

	 	27.3.3	The tenant repeatedly breaches the agreement or a provision thereof that is not a fundamental breach. 

  

 47 

	 	27.3.4	An application is filed with a court for the dissolution of the tenant, or to pronounce that he is bankrupt, to appoint a trustee, liquidator, interim liquidator, pre liquidator, a
receiver for a substantial part of his assets, for him, an application for an order pursuant to article 233 of the Companies Law [New Version], or for the placement of a lien on a substantial part of his assets and an order was issued pursuant to
the application or that the application was not rescinded or dismissed within 45 days from the date it was filed with the court. 

  

	 	27.4	If the agreement was revoked by the landlord as described above, in addition to any other provision relating to the evacuation of the premises and its return to the landlord, the
following provisions will apply: 

  

	 	27.4.1	The landlord shall have the right to place a lien on the equipment and inventory of the tenant to secure the payment of any sum and/or compensation owed to the landlord and/or the
management company related to the agreement and/or the breach thereof. 

  

	 	27.4.2	The landlord may disconnect the premises form the electric power, water supply, the telecommunications network, and from any other service or other system to which the premises is
connected and/or which operates on the premises. 

  

	 	27.4.3	The landlord may prevent the tenant or anyone acting on his behalf from entering the premises, every section of the project including the parking lots and public spaces, except for
the purpose of evacuating the premises and returning it to the landlord. 

  

	 	27.4.4	The tenant will pay the landlord fixed damages in the amount of rental fees owed by the tenant to the landlord pursuant to this agreement for the month that preceded the breach
multiplied by four without the need for any proof of damages. The parties state that this compensation was fixed after an assessment was made of the amount of damage that could be caused to the landlord as a result of a breach of the agreement by
the tenant and its revocation. Nothing in the foregoing shall detract from any other right available to the landlord by law and/or this agreement. 

  

	 	27.5	In the event that the tenant is late in paying any sum which he must make pursuant to this agreement to the landlord and/or the management company this payment shall bear arrears
interest as provided herein: 

  

	 	27.5.1	The tenant will pay the landlord and/or the management company as the case may be, arrears interest on the amount in arrears at the rate practiced in Bank Leumi of Israel Ltd. for
unauthorized overdrafts in regular debit accounts, the interest shall be calculated for the period from the day on which the tenant was to pay the amount in arrears until the date of actual payment. 

  

 48 

	 	27.5.2	If the arrears deals with a payment of an amount that was paid by the landlord and/or the management company to a third party instead of the tenant and which the tenant was to pay
to the third party, the interest will be calculated for the period from the day the landlord and/or the management company paid the sum in arrears to the third party until reimbursement by the tenant. If the landlord and/or the management company
paid the third party interest and/or an arrears fine due to the delay of the tenant in paying, the interest and/or arrears fine will be calculated as part of the principal debt which the tenant must reimburse the landlord and/or the management
company, as the case may be. 

  

	 	27.5.3	If the tenant is late in the payment of any sum which he is obligated to pay the landlord and/or the management company in accordance with this agreement, each amount paid by the
tenant shall first be credited to the interest and then the principal. If the collection of such amount involves costs and/or legal fees for the landlord and/or the management company, any amount paid as stated shall first be credited to pay the
costs and/or legal fees and afterward credited according to the aforementioned order. 

  

	 	27.5.4	The payment of interest in accordance with this section shall not detract from the right of the landlord and/or the management company to any other measure fixed in this agreement
and/or by law. The receipt of the interest shall not be construed as a waiver by the landlord and/or the management company of any other measure and/or any infringement of any right conferred upon them pursuant to this agreement and/or by relevant
law. 

  

	 	27.5.5	Repeated tardiness, that exceeds 7 (seven) business days, in the making of any payment which the tenant is obligated to pay to the landlord and/or the management company pursuant to
this agreement shall be deemed a fundamental breach of this agreement, conferring upon the landlord all the relief that is conferred upon it by this agreement and by law in respect to a fundamental breach of the agreement. 

 

	28.	Jurisdiction and arbitration 

  

	 	28.1	Without derogating from the generalities set forth in section 28.2 herein, the parties agree that only the relevant court in Tel Aviv Jaffa shall have sole jurisdiction to
deliberate on matters relating and arising from this agreement and no other court. 

  

	 	28.2	Any disagreements and disputes which arise, if they arise, between the parties relating to the provisions of this agreement and/or resulting from the agreement will be determined by
a sole arbitrator, as follows: 

  

	 	28.2.1	The arbitrator shall be an attorney chosen by both parties. If there is no agreement about the appointment within seven days from the date one party demanded arbitration proceedings
from the other, the arbitrator will be chosen by the chairman of the district committee of the Tel Aviv Bar Association. 

  

 49 

	 	28.2.2	The arbitrator will set a first meeting within 7 (seven) days from the day he was appointed and will give his decision within 60 (sixty) days from the date of the first meeting
which was set by him. 

  

	 	28.2.3	The arbitrator will be subject to substantial law and laws of evidence and must give reasons for his decision. 

  

	 	28.2.4	The arbitrator will be licensed to deliberate on a claim for eviction and be able to issue eviction orders. If an eviction order is requested, the arbitrator will deliberate on it
first together with the charges related to eviction and/or resulting from it before any other charge or claim and will give his decision about the eviction within 30 days from the first meeting set by him. 

  

	 	28.3	Subject to section 28.2.4 the arbitrator is not authorized to issue any interim orders relating to the issue of occupancy of the premises or the exercise of securities that were
given to the landlord and/or the management company and is also not authorized to turn to the courts in order to clarify this matter. 

  

	 	28.4	If the arbitration was demanded by the tenant and if prima facie proof was presented in the first arbitration meeting to the arbitrator that the tenant owed the landlord and/or the
management company debts for rental fees, management fees, parking fees or for the consumption of electricity pursuant to the tenancy agreement and/or management company, the arbitrator will not continue with the arbitration proceedings unless
within 7 (seven) days from that meeting the tenant deposits with him the amount of the debt or an unconditional bank guarantee for the payment of that debt. For purposes of this section the landlord’s books shall be prima facie proof for such
debt. 

 Deposit of the aforementioned sum and/or guarantee shall be a suspending condition to continue the arbitration
proceedings that began at the initiative of the tenant, unless the landlord and/or the management company notified the arbitrator in writing that it waived this condition. 
  

	 	28.5	The arbitrator will determine at the end of the arbitration proceeding, the legal expenses owed by one of the parties to the other, basing himself on the actual legal expenses borne
by the parties. The arbitrator will also fix the amount of the arbitration fee and how much each of the parties should bear of that fee. 

  

 50 

 Original invoices of the landlord regarding these expenses shall be conclusive proof of their accuracy.

  

	 	28.6	The provisions of this section shall be construed as an arbitration agreement between the parties under the Arbitration Law, 5728 - 1968. 

  

	29.	General Provisions 

  

	 	29.1	This agreement is the realization of all agreements, understandings, stipulations, representations, and intentions between the parties and replaces any instrument and/or draft
and/or exhibit and/or promise whether written or verbal, express or implied, by one of the parties to the other prior to the signing of this agreement in respect to every matter related to this agreement. 

  

	 	29.2	Upon the signing of this agreement which constitutes the complete and binding agreement between the parties, any memorandum of understanding and/or agreement and/or representation
and/or prospectus and/or promise and/or advertisement and/or prior drafts of this agreement made, if made, shall be cancelled and voided by the landlord or its representatives or anyone acting on its behalf and the landlord shall not be bound by any
of them. 

  

	 	29.3	Any behavior, extension, waiver, permission, acceptance of money, change or the drawing up of a new contract shall not be indicative of any intent by either party, to waive and/or
change any of their rights under this agreement, and shall not have any legal validity unless the waiver or the change was done expressly, in writing and signed by the waiving party or the party making the changes. 

  

	 	29.4	Refrain from using any right by the landlord and/or the management company pursuant to this agreement shall not constitute in any instance a waiver of the right or the basis for a
claim of hindrance or postponement against them by the tenant. 

  

	 	29.5	Consent by one of the parties to a waiver and/or deviation from a term of this agreement in a specific instance shall not serve as a precedent nor as an inference for any other
matter. If a party fails to use a right conferred upon him by this agreement in a specific instance, it should not be construed as a waiver of that right in that instance and/or in another similar or other instance and no conclusions shall be drawn
in respect to any waiver of any right by that party. 

  

	 	29.6	Any payment applicable to the tenant according to the provisions of this agreement shall be paid on the date designated for such payment. If a date for payment is not fixed in this
agreement, the payment shall be made on the date fixed for it by law (if there is a provision of law) or within seven (7) days after the first demand from the landlord. 

  

 51 

	 	29.7	The landlord shall be entitled to debit the bank account of the tenant by the standing order given to it, in any event where the tenant does not make any of the payments under this
agreement and/or the management company. 

  

	 	29.8	The tenant shall not deduct from the sums he owes the landlord and/or the management company benefits or sums to which he entitled to receive from the landlord and/or the management
company and the tenant waives the right of offsetting as stated notwithstanding the provisions of any relevant law. 

  

	 	29.9	The tenant shall not be entitled to condition the making of any payment or fulfillment of any obligation under this agreement and/or the management contract on the performance of or
demand that the landlord and/or management company perform any commitment first. 

  

	 	29.10	No provision and/or term and/or stipulation contained in this agreement and its annexes shall detract from another term or provision of this agreement except to add to it.

  

	 	29.11	The tenant shall not be entitled to register a cautionary note by virtue of his rights under this agreement. 

  

	 	29.12	The parties agree that the provisions of The Hire and Loan Law, 5731-1971 shall not apply to this agreement except for the provisions of the law which cannot be stipulated.

  

	31.	Notices 

  

	 	31.1	All notices pursuant to this agreement shall be made in writing only. 

  

	 	31.2	The addresses of the parties for purposes of this agreement is as specified in the foreword and any notice sent by one party to the other according to the address of the party as
set forth above shall be considered as having reached its destination within 72 hours from the date of its dispatch by registered mail or on the first business day after being transmitted by fax, and in the event of hand delivery, upon actual
delivery. 

 In witness thereof the parties set their hand at the location and on the date specified at the heading of this
agreement 
  

			
	 /s/ Kanit Hashalom Investments Ltd.
	  	 /s/ BigBand Networks Ltd.
         Corporate no. 51-27507-4

	The Landlord	  	The Tenant

 Note: This agreement and the negotiations about it are not binding on the landlord until the landlord’s
signatories sign the agreement 
  

 52 

 AZRIELI CENTER 
 ANNEX “A” 
 SPECIAL TERMS 
 To the agreement dated __________ (hereinafter: the “Principal Agreement”) with BIGBAND NETWORKS LTD. 
 The terms, definitions and all the provisions in this annex, are designated to add and complete the principal agreement and not to detract from it and shall be
considered an integral part thereof. Any term which is not expressly attributed a definition in this annex shall bear the meaning designated for it in the principal agreement. 
 All sums specified in this agreement in dollars shall be translated into new shekels according to the representative rate of the U.S. dollar as published by the Bank of Israel immediately prior to the signing of this
agreement which is 3.9750 shekels per dollar and from this date onward these sums shall be linked to the index in accordance with the terms of this agreement. 
 Sections in the agreement 
  

					
	Section 2.1	  	“Property” or the “Premises” - the area marked on the blueprints Annex “B” located in the triangular tower on the 36th floor.
		
	Section 2.1	  	“Base Index” - index for February, 2000, which was published on March 15, 2000.
		
	Section 4	  	“Size of the Premises” - the size of the premises for purposes of this agreement is 600 square meters.
		
	Section 5.1	  	“Purpose of the Tenancy” - offices for the management of a hi-tech company.
		
	Section 6	  	“Tenancy Period” -
			
		  	“Initial Tenancy Period”	  	a period of 60 months.
			
		  	“First Extended Tenancy Period”	  	a period of 24 months.
			
		  	“Extended Tenancy Periods”	  	a period of 24 months.
			
		  		  	a period of 12 months.
		
	Section 7.1	  	“Rental fees for the first year of tenancy” - the amount of $12,000 (twelve thousand dollars) per month with linkage differential and lawful VAT, which equals $20
(twenty dollars), for each square meter of the premises, per month, with linkage differential and lawful VAT.

  

 53 

					
		
		  	“Rental fees for the second year of tenancy” - the amount of $12,300 (twelve thousand and three hundred dollars) per month with linkage differential and lawful VAT,
which equals $20.50 (twenty dollars and fifty cents) for each square meter of the premises, per month, with linkage differential and lawful VAT.
		
		  	“Rental fees beginning from the third tenancy year until the end of the initial tenancy period” - the amount of $13,200 (thirteen thousand and two hundred dollars) per
month with linkage differential and lawful VAT, which equals $22 (twenty two dollars) for each square meter of the premises, with linkage differential and lawful VAT.
		
	Section 7.3	  	“First payment at the signing of the agreement” - at the signing of the agreement the tenant will pay the landlord rent for the first three months with lawful VAT in the
amount of $36,000 (thirty six thousand dollars) with linkage differential and lawful VAT.
		
	Section 7.5	  	“Rental fees and parking fees during the extended periods” - Being that the tenant was granted the right to extend the tenancy for further tenancy periods, as stated
above, rental fees and parking fees for the first extended tenancy period, will increase according to the increase in the index or the dollar, the greater of the two, with an extra 10% above the rental fees and parking fees applicable on the eve of
the commencement of the first extended tenancy period. Rental fees and parking fees for each of the extended tenancy periods will increase by 2% above the rental fees and parking fees applicable on the eve of the commencement of each of the extended
tenancy periods.
		
	Section 9.2	  	“Last date to submit plans for the tenant’s work” - April 5, 2000.
		
	Section 9.6	  	“Date for conferring license” - May 5, 2000.
		
	Section 11	  	“Conveyance date” - July 5, 2000.
		
	Section 26	  	“Bank guarantee” - a bank guarantee for the entire tenancy period and an additional 3 months after the expiration of the tenancy period - for a sum equal to, on the date
the guarantee is delivered, rental fees for three months, at their value on the date of the delivery of the guarantee, together with VAT for a total of $42,120 (forty two thousand one hundred and twenty dollars). The amount of the bank guarantee
shall be linked to the index.

 Special terms 
  

	1.	 The tenant is granted an option to rent the rest of the floor on which the premises are located, consisting of an area of 830 square meters, provided that the
landlord receives a written notice of such no later than twenty one (21) days from the signing of this agreement. The terms for leasing this area shall be identical to the terms of this agreement, subject to the provisions provided below. If
the tenant exercises this option to rent the rest of the floor, the landlord 

  

 54 

	 	 
shall make available for him an additional 26 entry passes to the parking lot beyond those provided in the parking agreement Annex “I”, for the
price and under the terms mentioned in the parking agreement. It is understood that the dates fixed above for the delivery of the tenant’s plans and conveyance of the premises will not change. The _____ parking passes will be made available to
the tenant no later than the end of December 2000. 

  

	2.	In addition to the works which the landlord committed to undertake at its own expense pursuant to the technical specifications in Annex “C”, the landlord will make
available for the tenant the sum of $40,000 with VAT for additional work on the premises to be carried out by the landlord. It is understood that the credit will be given only for work on the premises related to items permanently fixed to the
premises and no cash payment and/or a credit for the tenant’s investment in movable items shall be given to the tenant. The calculation of the amount of the credit will be made in accordance with the credit price list accepted by the landlord
at such time. It is understood that the amount of the credit mentioned above is absolute and final and this sum shall not be increased insofar as the tenant exercises the option mentioned in section 1 above and/or the right of refusal mentioned in
section 3 herein. This sum is contingent upon the exercise of the option defined in section 1 above. 

  

	3.	The tenant is given a right of refusal to rent the 37th floor in the tower consisting of 1,430 square meters (hereinafter: “Right of Refusal Area”). This right is given to the tenant for a period of 3 months from when he enters the premises and will be subject to the following
provisions: 

  

	 	3.1	The landlord delivers written notice to the tenant of its intent to lease the right of refusal area or any section thereof. 

  

	 	3.2	The tenant undertakes to answer the landlord in writing no later than seven business days from the date he received the notice from the landlord whether he is interested in
exercising the right of refusal granted to him and lease the right of refusal area or not. 

  

	 	3.3	If the tenant fails to respond until the expiration of the designated period or if the tenant delivers a notice that he is not interested in leasing the right of refusal area, then
the landlord may lease the space to any third party under any terms that it deems fit. Notwithstanding the above, the tenant’s right to lease additional space under this section shall be in respect to no less than half a floor nor shall it
exceed one floor. 

  

	 	3.4	The parties agree that if the tenant leases the right of refusal area or any section thereof then all the provisions of this agreement will apply to the right of refusal area,
including the technical specifications appended to this agreement mutatis mutandis. Rental fees to be remitted by the tenant for each square meter of the right of refusal area shall be identical to the rental fees paid by him for each square meter
of the premises. It is understood that the initial tenancy period for the right of refusal area will overlap the tenancy period for the premises - it will begin on the date of conveyance of the right of refusal area to the tenant and will end on the
date the initial tenancy period for the premises ends. 

  

 55 

	 	3.5	The tenant undertakes to submit the final approved plans to the landlord for the modification of the right of refusal area no later than 30 days after the date he exercised his
right of refusal. The landlord shall convey the right of refusal area to the tenant no later than three months from the submission of the tenant’s plans, subject and in accordance with the provisions of the lease agreement.

  

	 	3.6	Insofar as the tenant exercises his right of refusal provided above, the tenant shall be entitled to receive from the landlord 25 additional parking passes to the parking lot in
return for leasing all of the right of refusal area for the price and under the terms provided in the parking agreement, Annex “I”. The additional parking passes will be made available to the tenant no later than December 2000.

  

	4.	If the landlord’s work on the premises is completed by June 5, 2000, so that the tenant can occupy the premises on this date, the tenant will pay the landlord an
equivalent sum of $10,000 with linkage differential and lawful VAT for the advancement of the conveyance date. 

 It is
understood that this sum is in addition to the rest of the payments applicable on the tenant by this agreement. 
  

	5.	The parties agree that the air conditioning system on the floor will operate on a regular basis from Sunday-Thursday (except for holidays) between the hours of 07:00-21:00 and on
Friday and holiday eves between the hours of 07:00 and 16:00. The operation of the air conditioner beyond these hours shall be by a written request by the tenant at least 24 hours in advance. If the landlord operates the air conditioning system
beyond the hours mentioned above, then the tenant will pay the landlord the sum of 50 shekels for each additional hour together with linkage differential and lawful VAT. This sum will be paid to the landlord no later than seven business days from
receiving a written demand to do so by the landlord. 

  

	6.	The tenant will pay 50% of the cost of the landlord’s work on the premises as a prerequisite to the start of these works. An additional 25% of the cost of the landlord’s
work will be paid by the tenant one month after the start of the landlord’s work and the remaining 25% of this cost will be paid by the tenant on the conveyance date. All the payments stated above shall be paid with linkage differential and
lawful VAT. 

  

	7.	The landlord will not charge rental fees for the first three months of the initial tenancy period. The provisions of this section do not apply to the option area mentioned in
section 1 above or the right of refusal area mentioned in section 3. 

  

	8.	Notwithstanding the provisions of this agreement, the parties accept that the tenant may end the tenancy period at any time after the expiration of 24 months with delivery of a 6
months prior written notice to the landlord and subject to the tenant paying the landlord the following compensation: 

  

	 	8.1	If the tenancy period ends after the expiration of 24 months of tenancy but prior to the expiration of 30 months the tenant will compensate the landlord with rental fees for 7
months with VAT and linkage differential. 

  

 56 

	 	8.2	If the tenancy period ends after the expiration of 30 months of tenancy but prior to the expiration of 36 months the tenant will compensate the landlord with rental fees for 6.5
months with VAT and linkage differential. 

  

	 	8.3	If the tenancy period ends after the expiration of 36 months of tenancy but prior to the expiration of 42 months the tenant will compensate the landlord with rental fees for 6
months with VAT and linkage differential. 

  

	 	8.4	If the tenancy period ends after the expiration of 42 months of tenancy but prior to the expiration of 48 months the tenant will compensate the landlord with rental fees for 5.5
months with VAT and linkage differential. 

  

	 	8.5	If the tenancy period ends after the expiration of 48 months of tenancy but prior to the expiration of 54 months the tenant will compensate the landlord with rental fees for 4
months with VAT and linkage differential. 

  

	 	8.6	If the tenancy period ends after the expiration of 54 months of tenancy but prior to the expiration of 58 months the tenant will compensate the landlord with rental fees for 1.5
months with VAT and linkage differential. 

 It is understood that payment of the compensation fixed above does not detract from
the tenant’s duty to make all payments set forth in this agreement until the date of his actual departure from the premises. 
  

	9.	If in accordance with the instructions of the safety advisor for the project, there will be a requirement to add smoke resistant doors to the premises, the cost related to the
installation of the doors will be paid by the landlord as part of the specifications work. 

  

			
	 /s/ Kanit Hashalom Investments Ltd.
	  	 /s/ BigBand Networks Ltd.
         Corporate no. 51-27507-4

	The Landlord	  	The Tenant

  

 57 

 The Shalom Project 
 Appendix “C” 
 Technical Description of the Office Towers 

 

	1.	Project Description: 

  

	 	1.1 	The project is situated in the heart of Tel Aviv between Derech Petach Tikva to the west and Givat Hatachmoshet Road (Derech Hashalom) to the south, the Netivei Ayalon highway to
the east and Yediot Acharonot house to the north. 

  

	 	1.2 	The Project consists of: 

  

	 	1.2.1 	Four subterranean parking levels covering the entire approximate 125,000 square meters of the lot. 

  

	 	1.2.2 	A ground floor with commercial areas, lobbies and machine rooms for the towers. 

  

	 	1.2.3	 Two commercial floors (mall) covering approximately 23,000 square meters. 

  

	 	1.2.4 	A public floor inside the towers, on the roof of the mall. 

  

	 	1.2.5 	Office floors of differing geometric shapes: round, triangular and square. 

 In the round tower 48 floors of around 1,520 square meters each floor, of which 39 floors are designated for offices and an upper visitors floor. 
 In the triangular tower 44 floors of around 1,430 square meters each, of which 39 floors are designated for offices. 
 In the Square tower 40 floors of around 1,370 square meters each, of which 35 floors are designated for offices. Some floors may contain
residences or hotel rooms. 
 The areas mentioned constitute the entire floor including external walls. 
  

 58 

	2.	Technical description 

  

	 	2.1 	Parking levels: 

  

	 	2.1.1 	Floor – polished concrete. The angled areas (ramps) are of combed or lined concrete. 

  

	 	2.1.2 	Pillars – round concrete pillars with an acrylic or of similar value – paint finish. 

  

	 	2.1.3 	Walls and ceilings ceilings of concrete and walls of exposed concrete with synthetic whitewash painted directly on the concrete. 

  

	 	2.1.4 	Lighting – natural lighting through the use of “English courtyards” for the entire height of the side walls to the floor of the basement (-4). Additionally
fluorescent lighting fixtures with protective covers against damage by antennas, or PL light fixtures with anti vandalism covers. 

  

	 	 	The level of lighting be – 100 volts in the aisles, 50 volts in other areas. 

  

	 	2.1.5 	Ventilation: natural ventilation through the use of “English courtyards” as well as additional openings on the western ground floor parking level and an open
façade on the eastern side. As needed the ventilation system will be reinforced by a system of blowers controlled by CO sensors which will separately ventilate each basement floor. A battery of wind blowers will inject outside air through the
English courtyards on one side of the parking area, into the entire parking area and with the aid of supplementary blowers and end intake ducts the air will be drawn into the other side (open) of the parking area. 

  

	 	2.1.6 	A transformer unit will feed subpanels in the tower complex which in turn will feed the sections of the parking area close to those panels. The ceiling lighting units of the parking
area will be installed in a concealed fashion. Cables for the air blowers as well as main lighting lines will be installed in conduits affixed to the ceiling. Wall plugs will be attached as needed. 

  

	 	2.1.7 	Parking drainage – the entire parking area will drain into central collection wells within the lower floor. A pump system will send the drainage to the municipal sewage
system. 

  

	 	2.1.8 	Fire extinguishing system – An automated fire extinguishing system controlled by a sophisticated complex control that activates sprinklers throughout the parking areas.
Additionally there are water supply pipes and fire extinguishing points throughout as required by the fire department. 

  

	 	2.1.9 	Monitoring System: – the building’s monitoring system will monitor a variety of central systems, such as the loudspeakers and music, closed circuit video, traffic
control, automated payment systems etc. 

  

 59 

	 	2.1.10	Landscaping and gardening – gardening will be provided on the lower floor, in planters, in the English courtyards and in the center of the traffic ramps.

  

	 	2.2	Electric Station: – in the northeastern sector of the parking lot an electric company substation will be built that will feed the building with high voltage.

  

	 	2.3	Storage and machine rooms within the basement units: 

  

	 	2.3.1 	Walls – synthetic whitewash on exposed concrete walls. 

  

	 	2.3.2 	Floor – sectioned concrete or terazzo 20cm X 20 cm tiles or ceramics. 

  

	 	2.3.3 	Ceiling – synthetic whitewash on exposed concrete ceilings. 

  

	 	2.3.4 	Storage room doors – doorframes made of 2 mm metal, two sided metal door or wood, cylinder lock. 

  

	 	2.4	Lavatories on the parking levels 

 A floorwide unit
to be situated in the core of the three towers – will include a joint ladies and men’s restroom according to the architect’s plans. 
 Restroom finishing: 
  

	 	2.4.1 	Floors and walls – Ceramics as chosen by the architect for the complete height of the decorative walls. 

  

	 	2.4.2 	Ceilings – enameled metal trays with sunken lighting units. 

  

	 	2.4.3 	Fixtures – 

  

	 	2.4.3.1	White clay “Nofer” model (Lavo) counter mounted sinks produced by “Harsa” or similar value including an appropriate bottle drain made of polypropylene or of
similar value. 

  

	 	2.4.3.2	White clay “Harsa” Monoblanc 310 (Lidor) model toilet bowls or similar value, including a hard plastic toilet seat. An adjacent tank model 350 including flushing
mechanism. 

  

	 	2.4.3.3	Supply of a cast standing counter mounted sink faucet for cold and hot water produced by “Hamat” or of similar value. 

  

	2.5	Generator rooms: 

 See section 2.3 for the finishing
style (storage and machine rooms within the tower core basement). A daily fuel tank and an additionally 10,000 liter tank for emergencies. The supply of the daily fuel will be through gravity with the emergency supply coming through pumps.

  

 60 

	 	2.6	A basement level tower entrance lobby (core area) in an area used for entry and exit from the service elevators, the storage areas and machine rooms: 

  

	 	2.6.1 	Floor – paved with cut stone, marble or ceramics as per the architect’s plans. 

  

	 	2.6.2 	Walls – covered with cut stone, marble or ceramics as per the architect’s plans. 

  

	 	2.6.3 	Lighting – as per the architect’s plans. 

  

	 	2.6.4 	Ceiling – as per the architect’s plans. 

  

	 	2.7	The elevator lobby going from the parking area to the main entrance of the towers and to the commercial levels: 

 Six vertical traffic routes will be built to connect the parking levels, the main entrances and the commercial levels. These traffic routes will include
escalators, and panoramic elevators, in the entrance cubicles – the main traffic artery, the entrance triangle, and on the three vertical traffic routes adjacent to the three building cores. The style of finish for the entrance or exit to the
passenger elevators: 
  

	 	2.7.1 	Floor – paved with cut stone, marble or ceramics as per the architect’s plans. 

  

	 	2.7.2 	Walls – glass perimeter walls according to the architect’s plans. 

  

	 	2.7.3 	Lighting – according to the architect’s plans. 

  

	 	2.7.4 	Ceiling – according to the architect’s plans. 

  

	 	2.8	Ground Floor: 

  

	 	2.8.1 	Main Entrance lobbies  

 Floor –
Granite tiles or cut stone according to the architect’s plans. 
 Walls – Cut Stone, Granite or similar according to the
architect’s design. 
 Ceilings – Decorative ceiling or custom plaster ceiling according to the architect’s design.

 Lighting – Lighting fixtures according to architect’s design. 
 Reception Station – According to the architect’s design, with warning panels, closed circuit TV preparation and controls. (option for a
computer screen for locating tenants). 
 Main Signs – A list of tenants designed by the architect or a computer screen for
locating tenants. 
  

 61 

 Directional signs – As designed by the architect. 
 Mail boxes – A 20/30 size (at least) mail box unit for 20% more than the planned number of tenants. 
 Alternatively mail will be distributed at reception. 
 Air Conditioning – Central air conditioning. 
 Command and Control Room – The
buildings systems control the electro-mechanical systems, elevators, escalators, automatic fire extinguishing systems, climate control systems, safety and security. The control room is manned twenty four hours a day. 
  

	 	2.8.2 	Garbage rooms – as required by the Tel Aviv municipality as well as: 

 Walls – Ceramic coating as high as 2.25 meters. 
 Floor – sectioned concrete floor.

 Shields – From metalworking on the walls of the building. 
 Mechanical ventilation or air conditioning – as needed. 
 Water and drainage point – a water point for cleaning and commensurate drainage. 
 Garbage
bins or compressor – as required by the municipality. 
  

	 	2.8.3 	Machine rooms: 

 Walls – Exposed
concrete, finished with synthetic whitewash applied directly to the concrete. 
 Floor – Smoothed sectioned concrete or 20 X 20
cm Terazzo flooring or Ceramics tiles. 
 Ceiling – Exposed concrete, finshed with synthetic whitewash applied directly to the
concrete. 
 Machine room doors – two sided metal door with 2 mm thick jams and cylinder lock. 
  

	 	2.8.4 	Loading dock: 

 Walls – exposed concrete,
finshed with synthetic whitewash applied directly to the concrete. 
 Floor – smoothed sectioned concrete or 20 X 20 cm Terazzo flooring
or Ceramics tiles. 
 Ceiling – exposed concrete, finished with synthetic whitewash applied directly to the concrete. 
  

 62 

 Machine room doors – two sided metal door with 2 mm thick jams and cylinder lock. 
  

	 	2.9	Office floors: 

 General – the typical office
floor consists of a core with office space surrounding the core. The core consists of a central lobby with elevator access and a secondary hall that serves the restrooms, the floor secure room, maintenance elevator and the systems rooms. 

 

	 	2.9.1 	Main Floor Lobby (elevator lobby) : 

 Floor
– cut stone tile or marble according to the architect’s plans. 
 Walls – granite marble frames for the elevator
openings, combined with painted plaster board as per the architect’s design. 
 Ceilings – decorative ceilings as per the
architect’s design. 
 Lighting – according to the architect’s plans. 
 Signs – each floor will have signs indicating the tenants names on that floor together with the floor number as per the architect’s
design. 
  

	 	2.9.2 	Secondary Hall  

 Floor – Cut stone
tile or marble as per the architect’s design. 
 Walls – Cut stone covering, marble or similar combined with painted plaster
with the systems shafts enclosed by veneer covered wood doors as per the architect’s design. 
 Ceilings – Decorative
ceiling as per the architect’s design. 
 Signs – On each floor there will be directional signs to the systems closets as
per the architect’s design. 
  

	 	2.9.3 	Restrooms – Unit per floor 

 The floor
restrooms will consist of separate facilities for men and women as per the architect’s design listed below; 
 Men’s
restrooms – Three toilet bowls, two urinals and three sinks. 
 Women’s restrooms – Four toilets bowls and four
sinks. 
 Handicapped restroom – As per the Tel Aviv municipality (one every five floors). 
 Restroom finishings: 
 Floors and
walls – Ceramics as chosen by the architect for the complete height of the decorative walls. 
  

 63 

 Stall dividers – Marble or granite walls 
 Ceilings – Enameled metal trays with sunken lighting units. 
 Sink Counter – Granite counter with front panel hiding the sink (or molded counter and sink combination) or similar. 
 Mirror – Above the sink counter of 6 mm crystal glass. 
 Entrance door – Fire door
as standards require of painted metal. 
 Fixtures and Accessories: 
  

	 	2.9.3.1	White clay counter mounted sinks produced by “Charsa” or of similar value including an appropriate bottle drain made of polypropylene or of similar value.

  

	 	2.9.3.2	Wall mounted toilet bowls of white clay produced by “Sphinx” or similar value included hidden tank and support produced by “Geberit” or of similar value and a
hard plastic seat with cover. 

  

	 	2.9.3.3	Wall mounted urinals of white clay produced by “Porcher” or similar with a chrome water spray and electronic infra red mechanism. 

  

	 	2.9.3.4	Standing hot and cold water “Mixmat” faucet for the sinks for counter installation produced by “Hamat” or similar. 

  

	 	2.9.3.5	Mechanical ventilation, with air replacement 12 times hourly. 

  

	 	2.9.4 	Stairwells: 

 Stairs – Sectioned
concrete with beveled edges including _________ Painted finish according to the architect. 
 Walls – Arranged concrete shapes.
Painted finish according to the architect. 
 Ceilings – Concrete with synthetic whitewash finish. 
 Railing and/or handholds – as per the architect’s plans. 
 Signs – Floor numbers and emergency lighting according to the fire department’s requirements. 
 Doors – Fireproof according the 1212 standard and according to the fire department’s requirements. 
  

	 	2.9.5 	Multipurpose secure rooms:  

 Floor –
sectioned concrete or Terrazo white cement based tile flooring. 
  

 64 

 Walls – Arranged concrete shapes. Painted finish according to the architect. 
 Ceiling – Concrete with synthetic whitewash finish. 
 Doors – Sealed, blast proof according to the Home Command standard. 
 Air purification
system – according to the Home Command standards. 
 Openings and escape hatches – according to the Home Command
standard. 
 Lighting – according to the Home Command standard. 
  

	 	2.9.6 	Air Conditioning rooms: 

 Floor –
sectioned concrete. 
 Walls – Arranged concrete shapes. Finished with synthetic whitewash. 
 Ceiling – Arranged concrete shapes. Finished with synthetic whitewash. 
 Doors – Framed with cylinder locks. 
  

	 	2.9.7 	Office areas: 

  

			
	General –	  	Minimum room size – 10square meters.
		  	Decorative acoustic ceiling 2.65 meters high from the floor.
		
		  	Dividers up to the acoustic ceiling. Above the decorative ceiling open space for the intake of smoke and air circulation.
		
	Floor –	  	Carpet with base price of $15 per square meter. Color and type at the tenant’s discretion from the company’s inventory. Baseboard carpet to match.
		
		  	In the public passageways the carpet will meet the 755 standard, at least level II flammability, or flooring to match the Floor’s central lobby.
		
	Dividers –	  	One layer plaster board on a metal cross frame. Total width of divider to be 95 mm. Acoustic insulation between the panels of one inch fiberglass. Finished in synthetic paint or similar
value.
		
	Ceilings –	  	Decorative acoustic mineral vinyl 60 X 60 cm coated ceilings produced by Armstrong, “Random Fissured” model or similar with edging of Z+L profiles. (ceiling height 2.65m from the
floor).

  

 65 

			
	Concrete pillars, Concrete walls and Structure – covered in one layer plasterboard and painted as mentioned
		  	above.
		
	Doors –	  	A security door at office entrance or similar per the architect’s choice.
		
		  	Internal office doors – of wood sheeting filled corrugation (Decoral) with painted doorposts.
	
	Preparation for a kitchenette / Private restroom – Infrastructure along the outer wall of the office floor,
		  	water and sewage points – for tenants leasing at least half a floor.
		
	Electricity –	  	One fluorescent lighting point for every net 5 square meters, sunken in the ceiling in 60 X 60 metal tubs for example 4 x 18w. Lighting strength will not be less than 400 watts.
		
		  	One electric point for every 10m2 net.
		
		  	One telephone point for every 10m2 net.
		
		  	Preparation for TV and cable by way of pipe and pull cord up to each floor.
		
	Air Conditioning –	  	A central air conditioning system for the floor (cooling / heating) with area temperature controls. (V.A.V. system)
		
		  	An area is defined as 30-40m2 office space.
		
	Fire extinguishing system –	  	Fire extinguishing system that is activated by a building wide sprinkler system throughout the offices. In double ceiling areas the system will react to smoke detectors as
needed.
		
		  	Additionally there is a water supply pipe, fire stations, hydrants – as required by the authorities, built into closets on each floor of the building.

  

	 	2.9.7 	Roof Areas:  

  

	 	2.9.8.1	The roof will be sealed with bitumen sheeting. 

  

 66 

	 	2.9.8.2	Machine room maintenance and equipment areas – see similar areas in the basement. 

  

	 	2.9.8.3	Rooftop preparation for antenna base as well as aircraft warning lights. 

  

	 	2.9.8.4	Helicopter landing pad on the round building’s core. 

  

	3.	General systems: 

  

	 	3.1	Air conditioning systems: 

  

	 	3.1.1 	A floorwide central air conditioning system (heating/cooling) with area temperature controls as per the definition listed in the offices specifications. 

  

	 	3.1.2 	Roof top cooling towers and air conditioning units placed on the floors in the air conditioning room situated in the central core, along with a pipe system covering the entire
floor. 

  

	 	3.2	Elevators: 

  

	 	3.2.1 	The round tower – 12 passenger elevators that can each carry 24 persons, to serve the office floors. 6 of these elevators will serve the lower floors (until the 23rd floor) and 6 additional ones will serve the upper floors. The speed of travel for the elevators will be 2.5- 6 m/sec.

  

	 	3.2.2 	The triangle tower – 10 passenger elevators that can each carry 24 persons, to serve the office floors. 5 of these elevators will serve the lower floors and 5 additional
ones will serve the upper floors. The speed of travel for the elevators will be 2.5- 6 m/sec. 

  

	 	3.2.3 	The square tower – 8 passenger elevators that can each carry 24 persons, to serve the office floors. 4 of these elevators will serve the lower floors and 4 additional
ones will serve the upper floors. The speed of travel for the elevators will be 2.5- 6 m/sec. 

  

	 	3.2.4 	In all the towers – there will be a service elevator for the transfer of loads from the loading dock in the parking area to the commercial and office levels.

  

	 	3.3.5 	In the parking area there will be 6 traffic arteries connecting the parking levels, the main entrances to the towers and the commercial levels. The arteries will include a system of
13 elevators and escalators. 

  

 67 

	 	3.3	Sanitation Facilities: 

  

	 	3.3.1 	A complete system for the removal of waste according to the Planning and Construction Law and in accordance with the standards set by the Standards Institute no. 1205 that includes:

 A high density (HPOE) polyethylene waste and sewage pipe produced by Gavrit or similar value either installed hidden or
exposed. 
 A heavy PVC (level 6) external sewage pipe. 
 All of the systems required by the consultant such as: collection wells, pumps or other systems required by the authorities, connection to the municipal waste system. 
  

	 	3.3.2 	A complete rainwater drainage system that includes: 

 A
concealed cast metal pipe for the transfer of rainwater from the roof. Equipment for the collection and removal at the bottom. A water drainage system from the English Courtyards and its connection to the municipal drainage system. A drainage system
for the basement floors and its area. A drainage system for the air conditioning units throughout the building with the exception of the parking area with main pipes and only intake spots until the connection to the horizontal piping. 
  

	 	3.3.3 	A complete water supply system including; 

 An external
steel water supply pipe with a concrete inner coating and an industrial outer coating for 3” inch pipes and larger with all of the requisite equipment required by the authorities and the safety consultant including a pressure system if needed
(not including an automatic activation and deactivation system). 
  

	 	3.3.4 	A complete fire extinguishing closet including all of the requisite equipment required by the safety consultant. 

  

	 	3.4	Electricity and Telephones: 

  

	 	3.4.1 	The supply of electricity to the project will be by mass supply. The electric company will supply the project with four 13.2 kilowatt connections. A substation will be constructed
on the site and all the cable systems ___________ transformer stations throughout the project, and all the consumer electrical installations—whether in the public areas or the commercial and office areas will be private. The feed to the
building from the electric grid will be at a high voltage of 160 kilowatts. In the substation transformers will be installed to reduce the current from 160 kilowatts to 13.2 kilowatts. Energy for the entire project will be measured by the Electric
company at 13.2 kilowatts current in the meter room to be placed next to the Electric Company’s central switching room in the sub station area. High voltage lines will run from the main switching room of the Electric Company at 13.2 kilowats to
the transformer stations in the project (parking lots, commercial areas and the office tower). 

  

 68 

 In each of the above mentioned areas diesel generators will be installed which will be large enough to
use in emergencies for those areas defined as “essential”. 
  

	 	3.4.2 	Electricity will be supplied to the project by the Electric Company in an aggregate manner. The connection of power to the consumers will be done by the landlord and the amount of
electrical connection will be established based on the size of the premises. 

  

	 	3.4.3 	A public announcement system will be placed in the public spaces and in those areas where it is required by the fire department. This system will serve the public spaces and can be
connected to the private areas as well. 

  

	 	3.4.4 	Preparation for telephones will be made according to instructions by Bezeq including maintenance and telecommunications. 

  

	 	3.4.5 	Lightening rods including lightning rods on the roofs and a metal weave covering the exposed parts of the towers to distribute the lightning and direct it towards the ground.

  

	 	3.5	Monitoring system: 

 In each office tower there will
be a monitoring system that will provide information about the status of the various systems to the central desk or the tower administration. An alert will see the status of the systems and/or operation switches as warranted: elevators, air
conditioning, ventilation, generators, sewage and drainage pumps and water supply, public lighting system, outdoor lighting, closed circuit television security, intercom, and elevator monitors. 
  

	 	3.6	Fire extinguishing system: 

 The fire extinguishing
system will operate automatically by a monitoring system which will operate a sprinkler system on all the areas of the project (parking lots, commercial floors, offices, machine rooms and storage rooms). The project is split into four separate zones
for fire fighting: parking and commercial levels round tower, triangle tower, square tower. Each zone will have its own water supply system. A water supply pipe and fire extinguishers are also situated all over the structure. 
  

	4.	Development work: 

 The development will take place
at the ground level and the roof of the mall according to the plans of the landscape architect and will include inter alia: an ornamental pool and a fountain, tiling of areas according to the architect plans, gardening work, automatic watering
system for gardening, outdoor lighting and furniture. 
  

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	5.	General: 

  

	 	5.1	All the substances and products specified above may be replaced by the company with substances of equal value. 

  

	 	5.2	In all vertical passageways between the floors there will be fire resistant sealant. The air pressure in the stairwells shall be higher than other places in the building to prevent
smoke penetration during emergencies. 

  

	 	5.3	Any reference to “according to the architect’s plan” and/or the “planning” and/or the “choice” and/or the “architect’s choice” the
intention is to the structural architect. 

  

	 	5.4	Deviations of 2% between the measurements appearing in the plan and actual measurements and deviations of 5% between the amount and measurements and accessories in the technical
specifications and the actual quantities the measurements and the accessories are reasonable and shall not be considered a deviation and/or digression from the terms of the agreement. 

  

	 	5.5	All the measurements specified and/or stated in the plans are before surfacing or covering of the internal walls. 

  

	 	5.6	The technical description specified above is general and its purpose is to demonstrate the character of the project. The specifications are not binding and there may be changes to
it according to the landlord’s judgment except for the area leased to the tenant pursuant to the agreement. 

  

 70 

 AZRIELI CENTER 
 ANNEX “D” 
 MANAGEMENT CONTRACT 
 Entered into in __________ on the date of March ____ 2000 
 Between 
 Azrieli Center Towers Ltd (Development and Management) Ltd. 
 Whose address for the purpose of this agreement is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Management Company”) 
 As one part                     
 And 
 BIGBAND NETWORKS LTD.

 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this agreement is:

 Kiryat Atidim, building 4, 5th floor 
 Telephone: 7651799 
 Fax: 7651788 
 As the second
part                     
  

			
	Whereas	    	The tenant entered into an unprotected lease agreement (hereinafter: the “Lease”) with Kanit Hashalom Investments Ltd. (hereinafter: the “Landlord”) which confers upon the
tenant the right to occupy premises in the project known as the Azrieli Center as defined in the lease (hereinafter: the “Premises”);
		
	Whereas	    	The tenant and the landlord agree that the management of the tower which is part of the project, in which the premises are located, will be managed by a company to be chosen by the landlord
to provide the services required for proper maintenance and management of the tower;
		
	Whereas	    	The landlord chose the management company to manage the tower in consideration for the payment of management fees, as specified in this contract herein;
		
	Whereas	    	The tenant made a commitment to sign a management contract with the management company as part of his undertakings in the lease, and to act in accordance with the terms set by the management
company and to pay the management fees;

 Therefore it is declared, stipulated and agreed among the parties as follows: 
  

	1.	Preamble 

  

	 	1.1	The preamble to this agreement constitutes an integral part hereof. 

  

	 	1.2	This contract is an annex to the lease and its provisions shall be read in conjunction with the provisions of the lease. This agreement shall be interpreted, inasmuch as possible,
as corresponding and consistent with the lease. 

  

	 	1.3	The terms in this agreement shall be interpreted in accordance with the meanings attributed to them in the lease unless stated otherwise. 

  

	 	1.4	To dispel any doubt, it is understood that notwithstanding the provisions of this section above and notwithstanding that this management contract constitutes an annex of the lease,
the lease and this management contract shall be deemed two separate contracts and the following provisions shall thus apply: 

  

	 	1.4.1	 The tenant shall not be entitled to deduct sums that the landlord owes him from sums that he owes the management company, and may not deduct sums that he is owed from the
management company from sums that he owes the landlord. 

  

	 	1.4.2 	Any claim that the tenant may have against the landlord shall not serve as a cause of action for a lawsuit by him against the management company, and any claim available to the
tenant against the management company shall not serve as a cause of action for a lawsuit by him against the landlord. However the aforesaid shall not derogate from or infringe upon the landlord’s and/or management company’s rights and the
tenant declares that he is aware that a breach of this agreement shall be deemed a fundamental breach of the lease. 

  

	 	1.4.3	The management company is not a guarantor of the landlord’s commitments and the landlord is not a guarantor of the commitments of the management company.

  

	 	1.5	Any right in the lease granted to the management company shall continue to be in effect according to this agreement as well. 

  

	2.	Definitions  

  

			
	 “Management Company”
	  	The management company and/or any person, company or other legal body who the landlord will indicate in writing from time to time inclusive of the landlord, in the landlord’s
judgment;

  

 72 

			
		
	 “The Tower”
	  	The tower built in the project or any part thereof which is managed by the management company;
		
	 “Installations”
	  	Air conditioning, elevators, escalators, circuit boards, plumbing, lighting, water, sewage, drainage and other installations in the tower;
		
	 “Public Spaces”
	  	All areas within the tower including all structures, additions and changes to be made from time to time as well as rooftops, external walls, passageways, entrances and exits, service areas
and rooms, internal roads, service corridors, technical areas such as power rooms, pumps, air conditioning, loading and unloading sites, elevators, escalators, stairs, all other areas within the tower and the project designated to serve the user
public in the tower, including all areas outside of the tower and the project that border the tower and the project and are designated for the residents of the tower and their customers, including entrances, sidewalks, gardens and signs, except for
areas in the tower and the project that are held by residents as established and defined in the sole discretion of the landlord;
		
	“Management or Management of the Tower”	  	The operation, repair and maintenance of the installations, cleaning, maintenance and protection of public places, as described in this agreement;
		
	 “Management fees”
	  	All sums which the tenant must pay the management company pursuant to the provisions of this agreement;

  

	3.	Term of the agreement 

  

	 	3.1	This management contract shall commence with the start of the tenancy period and shall remain in effect as long as the tenant retains the premises pursuant to the lease insofar as
it is not terminated. 

  

	 	3.2	Further, the tenant’s obligations shall be in effect as long as he occupies the premises or any part thereof even if he is not entitled to do so. 

  

	4.	Job of the management company 

  

	 	4.1	 The management company shall provide on its own and/or through subcontractors, management and maintenance services for the tower, including cleaning, lighting,
gardening, maintenance, warranty repairs and 

  

 73 

	 	 
repairs of the electric, lighting, air conditioning, elevators and escalator systems and the other systems and installations on the public spaces,
installing, using and maintenance of various installations for the use and benefit of all the tenants and/or visitors of the tower, posting of signs in the area of the tower, payment of municipal and governmental taxes applicable to public spaces,
maintenance of public pathways and accesses. 

 The management company may, in its sole judgment, decide that the tower or
any part thereof will be managed separately from the section of the tower in which the premises are located and/or decide that other towers built in the project, or any part of them, shall be managed together with the tower or any section thereof,
by the management company. In this instance any section removed from the overall management shall not be included in the definition of the tower in section 2 above, and if a section is added to the management as stated above it shall be included in
the definition of the tower. 
  

	 	4.2	Without derogating from the foregoing generalities in section 4.1, the management company will be authorized as part of their management of the tower, to provide services and handle
various issues in its sole judgment, as described below: 

  

	 	4.2.1	 From time to time, for the regular operation of the tower, to establish, as part of the bylaws, procedures and/or instructions regarding the management of the tower, the scope
of the provision of various services to the tower, the maintenance and use of all the units and/or a section of them and/or the properties and/or public areas, in its discretion, including any matter related to the entrance and exit arrangements,
directional signs, access, pedestrian walkways, operational hours for and the amount of light, arrangement of use of the parking lot, operation of the air conditioning system, operation of the loudspeaker and music system, posting of signs, posting
notices, etc. 

 The management company will notify the tenant and publicize from time to time its decisions and determinations
as part of the bylaws, and from the date that he is notified of such, its instructions shall be binding on the tenant for all intents and purposes. 
  

	 	4.2.2	 To hire a staff of technical, professional, managerial employees and others to carry out its obligations under this agreement and/or to contract to accept such services, in
whole or in part from contractors, subcontractors, or in any other manner that the management company will establish, including employment of workers in full time or part time positions by special contract or by terms that it deems fit and to hire
consultants, publicists, accountants, attorneys and other experts that the management company wishes to hire in order to carry out its job under this agreement. 

  

 74 

	 	4.2.3	 Cleaning, waste disposal, removal of garbage etc. in the public spaces such as entrances, stairwells, elevators, bathrooms on the floors, and service corridors.

  

	 	4.2.4	 Supply of warranty and maintenance services, water and electricity for installations including lighting, elevators, escalators, and air conditioning, warranty services and
repairs for these installations and the public spaces. 

  

	 	4.2.5	 General repairs when needed and repairs of damage caused for any reason including damage due to weather and normal attrition. 

  

	 	4.2.6	 Security and protection services. 

  

	 	4.2.7	 Operation of a generator and emergency lighting. 

  

	 	4.2.8	 Installation and maintenance of fire extinguishing equipment. 

  

	 	4.2.9	 Installation maintenance and operation of a public announcement system in the tower. 

  

	 	4.2.10	Posting signs and directions in the tower. 

  

	 	4.2.11	Gardening sections designated for such in the public spaces. 

  

	 	4.2.12	Payment of taxes, expenses and surcharges for public and common areas including but without derogating from the foregoing generalities, general arnona (municipal tax),
business taxes and sign taxes insofar as the municipality did not charge the tenants directly or in another manner for them. 

  

	 	4.2.13	The management company will handle and maintain the air conditioning systems, electric, plumbing and fire extinguishing systems installed in the common areas and the leased areas
and/or those areas designated for lease in the tower (hereinafter: the “Systems”). It is understood that all the expenses of the management company for the regular maintenance of the systems are included in the costs of the management
company. 

  

	 	4.3	The services in whole or in part, in the management company’s judgment, will be provided by the management company as frequently and at the proper standard appropriate for the
project and its status. 

  

	 	4.4	The management company will be entitled in its discretion to grant the tenant or specific tenants, partial and/or additional special services beyond those specified in this section
4, and in such instance the tenant or tenants must pay separately for those services, if they are rendered. 

  

	 	4.5	 In order to fulfill its obligations, the management company is entitled to maintain an office in the project, in which all of its activities discussed in 

  

 75 

	 	 
this contract, will be centralized, and which the tenant can contact during normal business hours regarding all matters related to activities of the
management company in accordance with the provisions of this contract. 

  

	 	4.6	The management company will be entitled as per its sole judgment to decide that part or all of the services contemplated by this contract will be provided by the management company
itself and/or by another legal entity on its behalf and/or by third parties including contractors, subcontractors, maintenance companies and the like. 

  

	 	4.7	To dispel any doubt, it is declared that the management company is entitled, from time to time, as per its judgment, to determine the scope, type and nature of the activities that
it will carry out, and which part of the activities contemplated by this contract will be carried out by it, if at all, and for what period of time. 

  

	 	4.8	The management company will arrange the insurance policies specified in section 25.12 of the lease. 

 It is explicitly agreed that the arrangement of the insurance policies specified above, will not add to the liability of the management company beyond
that stated in this contract and/or the lease and/or will not detract from the duties of the tenant pursuant to said agreements. 
  

	5.	The tenant’s commitment  

  

	 	5.1	The tenant declares that he is aware that the management company has the sole authority to manage the tower and provide the services for it as stated in this contract and the lease
and the tenant commits not to carry out on his own or through others other than the management company, any activity which is under the authority of the management company. 

  

	 	5.2	The tenant and any person acting on his behalf shall cooperate with the management company and will assist it as required to allow for the regular, proper and appropriate management
of the tower. 

  

	 	5.3	Without derogating from the foregoing generalities, the tenant undertakes as follows: 

  

	 	5.3.1	 To comply with all the instructions of the management company, as they will be given from time to time, pertaining to the public spaces, the installations and equipment in the
tower, including in respect to the procedures for unloading, moving merchandise, removal of waster and the use of various accessory installations, in respect to the manner of the use of the premises, its proper maintenance and/or operation,
procedures for entering and exiting the premises, transporting merchandise to it and removal of garbage and items from it, safety procedures, posting of signs and lighting, cleaning, noise, hazards created by using it, conduct of the tenant’s
workers, customers and actors on his behalf and any other matter which the management company believes is necessary in order to protect the quality of the project. 

  

 76 

	 	5.3.2	 To act in accordance with all the provisions of the lease and the management contract, to participate in the costs involved in the carrying out and providing services and
management in accordance with that contemplated by this agreement. 

  

	 	5.3.3	 That he and others acting on his behalf and empowered by him will cooperate with the management company and will help it in all instances where such cooperation or assistance
is required in order to enable the proper and efficient management and provision of the services and will fulfill all demands by the various authorities and the obligations that derive from this agreement, directly or indirectly.

  

	 	5.3.4	 To allow the management company and those empowered to act on its behalf to enter the premises-with prior coordination if possible-in order to carry out its job pursuant to
this agreement, whether or not the matter is required for the tenant himself or for another tenant or in order to make repairs that are required on other premises in the tower, inter alia, to expose walls, floors, ceilings and other areas, to change
and repair plumbing and pipes and any other work which is required in the opinion of the management company to fulfill its job and exercise its authorities under this agreement and the tenant will not have any complaint against the management
company for any disturbance that may be caused to him as a result of the above. In any event of such action the management company will try to minimize the disturbance to the tenant inasmuch as possible and at the earliest possible time will restore
the condition of the premises to its former state and the amount of time to make the repairs will not exceed a reasonable time frame appropriate for that type of repair. 

  

	 	5.3.5	 To notify the management company of any malfunction requiring action by the management company. 

  

	 	5.3.6	 To refrain himself and/or through any third party, from taking any action that was given by this agreement to the management company exclusively unless the management company
agreed to such in writing prior to the carrying out of such action. 

  

	 	5.3.7	 To coordinate with the management company and obtain its consent prior to doing any work in the premises including interior design, placement of equipment or installations
requiring connection to any of the common systems in the tower, in addition to and not in place of the landlord’s consent, if such consent is required pursuant to the lease. 

  

 77 

	 	5.3.8	 To refrain from placing signs including advertisements and/or another advertisement, items and goods of any kind either temporarily or permanently outside of the premises
and/or in the public spaces, including placing booths, containers, tables and the like without obtaining the prior written consent of the management company and to remove any such item immediately upon the first demand to do so by the management
company. 

  

	 	5.4	The tenant shall not be entitled to refuse any service and/or to stop the management and the carrying out of the services and/or to be released from his obligations to pay the costs
of management and services in accordance with the terms of this agreement. 

  

	6.	Management fees 

  

	 	6.1	The tenant undertakes to pay fees to the management company, which will be calculated according to the proportionate share of the premises out of all the leased areas that are
actually occupied in the tower, for all the expenses incurred by the management company in managing the tower and the public spaces including investing in replacing, improving and repairing equipment and systems necessary for the management
of the tower and the provision of the services, financing expenses and all other direct costs involved in the management of the tower together with overhead of 15% of all the expenses with lawful VAT (together to be all called “Management
Costs”). 

  

	 	6.2	Notwithstanding the above, if all the actual leased areas in the tower constitute less than 75% (seventy five percent) of the areas designated to be leased in the tower, the
landlord will bear part of the fixed expenses of the management company for its management of the tower, as will be determined by the management company, for the part constituting the differential between the leased and actual occupied areas and the
75% of all the areas designated for leasing in the tower. 

  

	 	6.3	The management company can decide to establish a mechanism for a different distribution of the management costs according to specific tenants or different areas that are leased, as
necessary due to the provision of excess services to specific units in the tower in accordance with the uses made of those units and the type of their use in the public areas and the tower. 

  

	 	6.5	The calculation of the projected share of the tenant and the management fees applicable to him will be made once every three months or at any other interval of time established by
the management company. The calculation will be done on the basis of costs actually expended and projected costs. 

  

	 	6.6	On the conveyance date, the tenant will pay the management company an advance based on a projected estimate of costs decided by the management company, as part of the management
fees for the first quarter. 

  

 78 

	 	6.7	Until otherwise established by the management company, the payments towards the account of the management fees for the tenancy period will be paid each quarter in advance. The
payments made towards the management fees will be made according to the estimated fees by a written call for payment sent to the tenant by the management company. 

  

	 	6.8	Within six months from the end of each calendar year, the management company will prepare a financial statement for said year, reviewed by the company’s accountant
(hereinafter: “Financial Statement”). The management company will issue a yearly bill to the tenant based on the financial statement. 

  

	 	6.9	The tenant undertakes to pay the management company within 7 days from the date of receipt of said annual bill, any difference owed by him, if so owed, between what he owes
according to the financial statement and the sums that he remitted towards the management fees as described above. If the annual financial statement indicates that a credit is owed to the tenant, then the tenant will be credited the amount in his
next payment of the management fees. 

  

	 	6.10	The calculations of the accountant of the management company, the financial statement and the records kept by the management company shall be conclusive evidence and prima facie
proof regarding the amount of the management costs, management fees and the amount of the payment which the tenant must remit to the management company. 

  

	 	6.11	The amounts paid to the management company for management fees that remain with the management company for an interim period, will be invested by it in its sole judgment.

  

	 	6.12	To ease the collection of management fees or any other sum owed by the tenant to the management company, the tenant undertakes to provide the management company on the date fixed by
it but within 7 days from the signing of this agreement or 7 days prior to the conveyance date, the earlier of the above, a standing bank order in the form accepted by the banks. 

 The management company may debit the account through the aforementioned order any time that the tenant fails to make any of the payments which he must
make pursuant to this agreement. 
 Receipt of the standing order and any use of it made by the management company shall not be deemed as
payment until actual and timely payment is rendered of all the payments which the tenant must make. 
  

	 	6.13	The tenant undertakes to pay the management fees and all payments applicable to him for the entire tenancy period, unconditionally, whether or not he makes use of the premises.

  

 79 

	7.	Liability for damages 

  

	 	7.1	The management company and any body acting for it and on its behalf will not bear any liability or duty whatsoever for injury to a person and/or any loss and/or ruin and/or property
damage of any kind which is caused to the tenant and/or any person, including employees, representatives, employers, agents, customers, visitors or any other person situated on the premises or in the tower or their surrounding area unless caused as
a result of negligence by the management company and/or an actor on its behalf. 

  

	 	7.2	The management company and/or anyone acting on its behalf shall not bear any liability of any kind for any damage caused to the premises and/or its contents and/or the tower and/or
the tenant and/or any other person for any reason, whether the reason for the damage or the malfunction is known or whether it is not known unless it was caused as a result of the negligence of the management company and/or one acting on its behalf.

  

	 	7.3	The tenant shall be liable for all personal injury and/or property damage of any kind that he causes to any person and/or the premises and/or the tower and/or their contents and/or
the surrounding area and/or to the landlord and/or the management company and/or any agent on their behalf, directly or indirectly, as a result and/or due to the use made by the tenant, his employees and/or invitees and/or anyone acting on his
behalf of the public spaces and/or as a result of non compliance with any of the provisions of this agreement. 

  

	8.	Transfer of rights by the management company 

 Without derogating from the right of the landlord to change the management company or manage the tower on its own as provided in the lease, the management company may in its sole discretion transfer all of its rights and obligations under
this agreement to other/s without the need for the tenant’s consent, provided that the transferee will accept upon itself all the obligations of the management company towards the tenant as described in this agreement. 
  

	9.	Remedies and relief 

  

	 	9.1	Without derogating from the provisions stated in the lease, in any instance where the tenant is late in the making of any payment owed or which will be owed to the management
company pursuant to this agreement, the management company shall be entitled, without impairing from any other legal measure available to it, to take one or more of the following actions: 

  

	 	9.1.1	 To add to each payment or cost owed by the tenant which was not paid on time, arrears interest in the amount and subject to the terms specified in the lease.

  

	 	9.1.2	 To demand reimbursement for all costs and damages caused to the management company due to non timely payments. 

  

 80 

	 	9.1.3	  To completely, or partially stop the provision of management services to the tenant. 

  

	 	9.2  	The management company may charge the tenant for the reimbursement of costs and damages caused by the failure to comply with the instructions of the management company. The
reimbursement and payment of damages will be made within 7 days from the date a bill is submitted to the tenant and the provisions of this section regarding the making of payments shall be applicable to this payment. 

  

	 	9.3  	The foregoing provisions and/or the suspension of provision of services to the tenant, under the circumstances specified in this agreement shall not release the tenant and/or
detract from his obligations to satisfy the provisions of this agreement, in particular from payment of the management fees and any bill submitted to him by the management company pursuant to this agreement. 

  

	 	9.4  	Any sum that the management company expends for the tenant which the tenant had an obligation to pay, shall be reimbursed by the tenant with arrears interest.

  

	 	9.5  	The provisions of this section shall not impair from the right of the management company to any relief to which it is entitled under the Contracts Law (Remedies for Breach of
Contract), 5731 -1970, or any other relevant law. 

  

	10.	Securities 

  

	 	10.1	  All securities given by the tenant to the landlord as part of the lease shall serve also to secure his obligations to the management company. 

 

	 	10.2	  The management company may exercise the abovementioned securities in any instance where the tenant breaches one or more of his obligations under this contract, without
detracting from any additional relief available to it by law. 

  

	11.	Jurisdiction and arbitration 

  

	 	11.1  	Subject to the provisions of section 11.2 herein, the parties agree that only the relevant court in Tel Aviv Jaffa and no other court, shall have sole jurisdiction to decide all
matters relating to and deriving from this agreement. 

  

	 	11.2	  Any disagreements and disputes which arise, if they arise, between the parties relating to or deriving from the provisions of this agreement will be determined by a sole
arbitrator, as follows: 

  

	 	11.2.1  	The arbitrator shall be an attorney chosen by both parties. If there is no agreement about the appointment within seven days from the date one party demanded arbitration proceedings
from the other, the arbitrator will be chosen by the chairman of the district committee of the Tel Aviv Bar Association. 

  

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	 	11.2.2	 The arbitration proceedings shall be held in Tel Aviv. 

  

	 	11.2.3	 The arbitrator will set a first meeting within 7 (seven) days from the day he was appointed and will give his decision within 60 (sixty) days from the date of the first
meeting which was set by him. 

  

	 	11.2.4	 The arbitrator will be subject to substantial law and laws of evidence and must explain his decision. 

  

	 	11.2.5	 The arbitrator will be licensed to deliberate on eviction claims and be able to issue eviction orders. If an eviction order is petitioned, the arbitrator will deliberate on it
first together with the charges related to eviction and/or resulting from it before any other charge or claim and will give his decision about the eviction within 30 days from the first meeting set by him. 

  

	 	11.3	 Subject to section 11.2.5 the arbitrator is not authorized to issue any interim orders relating to the issue of occupancy of the premises or the exercise of securities that
were given to the landlord and/or the management company and is also not authorized to refer to the courts in order to clarify this matter. 

  

	 	11.4	 If the arbitration was demanded by the tenant and if prima facie proof was presented in the first arbitration meeting to the arbitrator that the tenant owed the landlord
and/or the management company for rental fees, management fees, parking fees or for the consumption of electricity pursuant to the lease and/or management contract, the arbitrator will not continue with the arbitration proceedings unless within 7
(seven) days from that meeting the tenant deposits with him the amount that he owes or an unconditional bank guarantee for that amount. 

 Deposit of the aforementioned sum and/or guarantee shall be a suspending condition for the continuation of the arbitration proceedings that began at the initiative of the tenant, unless the landlord and/or the
management company notified the arbitrator in writing that it waived this condition. 
  

	 	11.4	 The provisions of this section shall be construed as an arbitration agreement between the parties under the Arbitration Law, 5728 - 1968. 

  

	12.	General 

  

	 	12.1	 The tenant affirms and empowers the management company to carry out in his name and on his behalf any act which it deems necessary to execute this agreement, and to remit any
payment upon the tenant to make under this agreement instead of him if he does not do so in a timely fashion. 

  

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	 	12.2	 Any suspension and/or deferral and/or failure to react and/or refrain from taking any action by the management company shall not be construed in any manner as a waiver of any
right belonging to the management company or a waiver of any obligation by the tenant unless the waiver was expressly made in writing. 

  

	 	12.3	 The addresses of the parties are as specified in the foreword of this agreement. Beginning from the start of the tenancy, the tenant’s address shall be at the premises.
Any notice sent by registered mail to one of the addresses above shall be deemed as having reached its destination 72 hours after its dispatch at the post office by registered mail or within 24 hours if delivered by hand or dispatched by fax.

 In witness the parties set their hand 
  

					
	/s/ Azrieli Center Towers (Venture and Management) Ltd.	 		 	 /s/ BigBand Networks Ltd.
         Corporate no. 51-27507-4

	The Management Company	 		 	The Tenant

  

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 AZRIELI CENTER 
 ANNEX “F” 
 PROJECT BYLAWS 
 The following bylaws consist of regulations, rules and directives applicable to all business owners, tenants and residents of the project, and compliance with the rules
and directives is considered a material term of the tenancy agreement between the tenant and the landlord. 
 The purpose of these bylaws is to ensure a high
standard and level of business management in the project. The need for uniform rules of conduct derives from the administration of the project as one complex, so that the level and quality of business management in each unit has an immediate affect
on the reputation of the project as a quality business center, and on the ability of each tenant to reach its full business potential and benefit from the management of the business as part of the project. 
  

	1.	The tenant will refrain from doing any act, action or omission that may in one way or another cause: 

  

	 	1.1	Damage, loss or harm to the property belonging to the landlord or other tenants including in the public spaces and the project and its installations. 

  

	 	1.2	A risk of personal injury and/or property damage to any of the public using the project including any visitor or customer among the general public. 

  

	 	1.3	A nuisance or other interference of any type inclusive of making noise and/or announcements by microphone and/or by a manner of advertising that may disturb the other businesses in
the project and the general public. 

  

	 	1.4	Without derogating from the foregoing generalities, the tenant will refrain from causing unreasonable noise and/or odors while operating his business on the premises and will not
allow another to cause such noise and/or odors on the premises. 

 Upon demand by the landlord and/or the management company
and/or any agent on their behalf, the tenant will immediately suspend and/or remove any hazard and/or nuisance as described. 
 If the tenant
fails to heed the landlord’s and/or the management company’s warning, each of them may act to suspend or remove the hazard and/or nuisance and the tenant will not have any complaint in respect thereto. 
  

	 	1.5	Notwithstanding the provisions set forth in the lease and regardless if the tenant was granted a license or permit or any permission, the tenant undertakes not to use the premises
in a manner that is inconsistent with the character of the project and/or related to one of the occupations specified in the following list: 

  

	 	1.5.1	Processing stone or building materials or any other material which creates dust. 

  

 84 

	 	1.5.2	Uses related to poisonous substances and/or the flow of poisonous substances into the sewage and drainage system of the project. 

  

	 	1.5.3	Operating machines causing undue noise or in such a manner that they may cause a nuisance or disturbance to the neighbors and other users of the project. 

 

	 	1.5.4	Operation of a food and/or meat processing plant. 

  

	 	1.5.5	Operation of a leather processing plant or processing other materials that emit odors and noise. 

  

	 	1.5.6	Use related to the raising or caring of animals. 

  

	 	2.	The tenant will not hold any merchandise, containers of any kind, items, tools, equipment, or appliances in the public spaces, the parking lots or the passageway.

  

	 	3.	The landlord and/or the management company and/or any agent on their behalf are authorized to remove without any advance warning, any item, tool, equipment or any other thing that
is situated outside the premises and which in their opinion constitutes a nuisance and/or disturbance, and may hold the tenant responsible for all costs involved in removing the nuisance. 

  

	 	4.	The tenant will refrain from overburdening the premises, or the public spaces in a manner that may cause damage to the floors or which deviate from the weight allowed.

  

	 	5.	The tenant commits to keeping the premises and the surrounding area organized and clean for the entire day. 

  

	 	6.	Upon demand by the landlord and/or the management company, the tenant will instantly stop any act, action or operation of business which in the landlord’s opinion may
constitute a safety, health or other hazard to the general public and/or the other businesses in the project. 

  

	 	7.	The tenant will refrain from destroying defective merchandise or any other type of item by burning them in or near the property of the project. 

  

	 	8.	The tenant will not leave any garbage, trash or any unwanted item on the project’s property or the adjacent property, and will dispose of all trash or garbage by the acceptable
method of garbage disposal for the project which will be published by the management company. 

  

	 	9.	The landlord and/or the management company have the authority to prevent the tenant’s workers from free use of the parking spaces designated for the general public in any
manner which the landlord and/or the management company deem fit, without conferring upon the tenant any right to appeal a determination in this matter. 

  

 85 

	 	10.	The tenant and any person on his behalf or his visitors must use only the organized parking spaces in the lots. There is a total prohibition on parking in spots that are designated
for unloading and loading and/or on sidewalks and/or public spaces in the project and surrounding area. 

  

	 	11.	The tenant, his employees and visitors will heed the instructions of the signs directions posted and will use the paths and entrances designated for such by the management company
to access the premises and other places in the project. 

 The bylaws are subordinate to the lease and all the terms in it shall
be attributed their meanings according to the lease and in any instance of an inconsistency between the provisions of the bylaws and the lease, the latter shall prevail unless the bylaws augment the provisions of the lease. 
  

 86 

 AZRIELI CENTER 
 ANNEX “G(1)” 
 CONFIRMATION OF ARRANGEMENT OF TENANT’S CONSTRUCTION WORK

 Date:
                     
 To 
 Kanit Hashalom Investments Ltd. (hereinafter: the “Landlord”) 
 Azrieli Center Towers (Development and Management) Ltd. (hereinafter: the “Management Company”) 
 Azrieli Center 
 132 Derech Petach Tikva 
 Tel-Aviv 
 Dear Sir/Madam, 
  

	Re:	Azrieli Center (hereinafter: the “Project”) Lease Agreement entered into between you and
                     (hereinafter: the “Tenant’) 

 We are pleased to confirm that starting from the date of                      our insurance company arranged
for contractor insurance in the name of the tenant, contractors and subcontractors, the landlord and the management company that covers the construction being carried out by the tenant and/or on his behalf as specified herein, whereas the scope of
the coverage given by the insurance is no less than the coverage given by the policy known as ins/             acceptable at the date of the commencement of the insurance period:

  

	1.	Chapter 1 – an all risk policy covering loss or damage caused to the tenant’s work, at its full value, and loss or damage caused to the equipment used for the carrying out
of such work. This chapter includes a waiver of subrogation clause towards all the other tenants and/or residents of the project whose policies also include the same waiver of subrogation towards the tenant, provided that the above referenced waiver
of subrogation shall not apply in favor of a person who causes damage in a malicious manner. The chapter includes an extension regarding property on which work is being conducted or a neighboring property, at a limit of liability that is not less
than $25,000 (twenty five thousand U.S. dollars). 

  

	2.	Chapter 2 – Third party liability with a limit of liability specified herein. The chapter includes a cross liability clause by which the policy is deemed as having been
arranged separately for each of the individuals constituting the insured. 

 The limit of liability:
$                     per event and in the cumulative for the annual policy period. 
  

 87 

	3.	Chapter 3 – Employers insurance for the duty to all the employees carrying out the construction with a limit of liability that will not be less than the maximum standard limit
of liability that is acceptable in Israel on the date of the arrangement of the policy, as set forth herein. This policy does not contain any limitation regarding height or depth, hours of work, lures and poisons, contractors, subcontractors and
their workers and the employment of youth. 

 The limit of liability:
$                     per claimant:
$                     per event:
$                     cumulative for the annual policy period. 
 The above policy contains an explicit term by which it takes precedence over any policy which was arranged by the landlord and/or the management company, and we relinquish any claim and/or demand regarding the
combining of the landlord’s and/or the management company’s policies. We also are committing that the foregoing policy will not be reduced, revoked or lapse during the period the tenant is carrying out construction unless a 60 day prior
written notice is so delivered to the landlord by registered mail. 
 Subject to the terms and reservations of the original policies, insofar as they have
not been expressly changed by the foregoing. 
  

	
	 Respectfully,

	
	   
	 (Signature of the insured)

	
	   
	 (Signature of the insured)

	
	   
	 (Name of the signatory)

	
	   
	 (Position of the signatory)

  

 88 

 AZRIELI CENTER 
 ANNEX “G(2)” 
 CONFIRMATION OF ARRANGEMENT OF TENANT’S INSURANCE

 Date:                    

 To 
 Kanit Hashalom Investments Limited (hereinafter: the “Landlord”) 
 Azrieli Center Towers (Development and
Management) Ltd. (hereinafter: the “Management Company”) 
 Azrieli Center 
 132 Derech Petach Tikva 
 Tel-Aviv 
 Dear Sir/Madam, 
  

	Re:	Azrieli Center (hereinafter: the “Project”) Lease Agreement entered into between you and
                     (hereinafter: the “Tenant”) 

 We are pleased to confirm that starting on the date of                      our company has arranged the
following policies in the name of the tenant, pertaining to the premises in the project (hereinafter: “Tenant’s Policies”). 
  

	1.	A policy covering the contents of the premises and equipment that serves the premises owned and/or under the responsibility of the tenant which are situated outside of the premises
on the project site, at their full value, and any change or extension to the premises that was and/or will be made by the tenant and/or on his behalf (except for a change or extension which was invested by the landlord), for loss or damage following
accepted risks with expanded fire risk including fire, smoke, lightning, explosion, earthquake, typhoon and hurricane, flood, damages caused by leaks and cracked pipes, vehicular damage, harm caused by aircraft, strikes, uprisings, malicious damage,
glass breakage and burglaries. 

 The policy contains an express provision whereby the insured waives all rights of subrogation
against the landlord, management company and other tenants and/or occupants of the project (who have included in their insurance policies a waiver of subrogation against the tenant) and all those who act on behalf of the abovementioned, provided
that the waiver of subrogation does not apply in favor of a person who causes damage maliciously. 
  

	2.	 Third party insurance with the limit of liability specified herein. The policy is not subject to any limitation in respect to an obligation deriving from –
fire, explosion, panic, sound devices, loading and unloading, defective sanitary fixtures, poison, any harmful substance in food or drink, strikes and slowdowns and subrogation claims by the National Insurance Institute. The policy has been expanded
to indemnify the landlord and the management company for their 

  

 89 

	 	 
liability for acts and/or omissions of the tenant, subject to a cross liability clause by which the policy will be considered as if having been arranged
separately for each of the individuals of the insured. 

 The limit of liability:
$                     per event and in the cumulative for the annual policy period. 
  

	3.	Employers insurance for the tenant’s duty to all the employees employed by him and on his behalf with a limit of liability that will not be less than the maximum standard limit
of liability that is acceptable in Israel on the date of the arrangement of the policy and/or its renewal, as specified herein. This policy does not contain any limitation regarding height or depth work, hours of work, contractors, subcontractors
and their workers, lures and poisons and the employment of youth. The policy is expanded to indemnify the landlord and the management company if allegations are made that the landlord and/or management company bear duties as employers of any or all
of the tenant’s employees regarding the occurrence of any type of work accident. 

  

	4.	Loss of income (except for rental fees and management fees) insurance due to risks covered under section (1) above, for an indemnification period that will not be less than 12
months. The policy includes an express condition by which the insured waives any right of subrogation against the landlord, management company and other tenants and/or occupants of the project (who included in their policies a similar clause
regarding the waiver of the right of subrogation against the tenant) and all those who act on behalf of the aforementioned, provided that the waiver of the right of subrogation does not apply in favor of a person who caused damage out of malicious
intent. 

 The above policies contain explicit terms by which they take precedence over any policy which was arranged by the landlord and/or
the management company, and we relinquish any claim and/or demand regarding the combining of the landlord’s and/or the management company’s policies. We also are committing that the foregoing policy will not be reduced, revoked or lapse
during the tenancy period unless a 60 day prior written notice is so delivered to the landlord by registered mail. 
 Subject to the terms and
reservations of the original policies, insofar as they have not been expressly changed by the foregoing. 
 Respectfully, 
  

									
	  	  		  	  	  		  	  
	(Signature of the insured)	  		  	(Signature of the insured)	  		  	(Name of the signatory)

  

	
	   
	 (Name of the signatory)

  

 90 

 AZRIELI CENTER 
 ANNEX “G(3)” 
 FIRE SAFETY GUIDELINES 
  

	1.	Garbage, empty cartons, containers and wood and paper trash shall be removed from the premises to outside the project structure and will be stored in a designated place as specified
by the management company. 

  

	2.	No heat work shall be done on the premises or in the surrounding area except in accordance with the following guidelines: 

  

	 	2.1	The term “heat work” means: any work by soldering and/or cutting with fire and/or by using open fire. 

  

	 	2.2	Any contractor or subcontractor who is doing work which requires heat work will hire a supervisor (hereinafter: the “Supervisor”) whose duty will be to ensure that heat
work is done only in accordance with these guidelines. 

  

	 	2.3	Prior to beginning any heat work the supervisor will inspect the area designated for the heat work, and will ensure that there is a 10 meter radius between any flammable substance
and the place where the heat work is to be carried out, whereas fixed flammable items, which cannot be moved, will be covered with a fire resistant wrapping. 

  

	 	2.4	The supervisor will appoint a person who will serve as a fire warden (hereinafter: “Fire Warden”) equipped with the appropriate fire extinguishing equipment to put out the
type of flammable substances that are found around the place where the heat work is to be carried out. The sole job of the fire warden is to monitor the heat work and to instantly put out any sparks that may be created by the heat work.

  

	 	2.5	The fire warden will be present when heat work is taking place from the start until at least 30 minutes after it ends, in order to make sure that there are no more sparks that could
ignite in the area. 

  

 91 

 AZRIELI CENTER 
 ANNEX “H” 
 BANK GUARANTEE 
 To 
 Kanit
Hashalom Investments Limited 
 Azrieli Center 132 Derech Petach Tikva 
 Tel-Aviv 
 Letter of
Guarantee                                  
  

	1.	In accordance with an application by _____________ (hereinafter: the “Applicant”) we the undersigned guarantee in your favor to pay all sums until the amount of
___________ new shekels (___________________ new shekels) (hereinafter: “Principal Sum”) with linkage differential (hereinafter: “Amount of the Guarantee”), owed or which will be owed to you by the applicant in respect to a
tenancy agreement for a property in the “Azrieli Center”, with the conditions specified below. 

  

	2.      (A)	We undertake to pay you the amount of the guarantee or any part thereof according to your first call for payment, from time to time in writing, within 7 (seven) days of the date
your call for payment is received by us. 

  

	 	(B)	We will pay you the amount of the guarantee in whole or in part, including by installments – as stated in your call for payment – without you being required to prove
and/or explain and/or ground your demand in any way, without any duty being imposed on you to first ask the applicant for the amount of the guarantee in whole or in part and/or to take any action whatsoever in regard to the applicant and without
making the payment conditional on any term whatsoever. 

  

	3.	The amount of the guarantee will be calculated as follows: 

  

	 	(A)	The principal sum will be linked to the consumer price index published by the Central Bureau of Statistics and Economic Research (including fruits and vegetables) or any other index
that replaces it which is published by the Central Bureau of Statistics and Economic Research or any other official body (hereinafter: the “Index”); 

  

	 	(B)	The determining index for purposes of the calculation of the amount of the guarantee is the last known index on the date of actual payment (hereinafter: the “Determining
Index”); 

  

	 	(C)	The base index for purposes of calculating the amount of the guarantee is the consumer price index published on the date of ____________ for the month of ___________ 199_ which is
______ points (hereinafter: the “Base Index”); 

  

 92 

	 	(D)	If on the date of actual payment the determining index is higher than the base index then the principal sum will be multiplied by the determining index and the result will be
divided by the base index; 

  

	 	(E)	In no event will the amount of the guarantee be less than the principal sum. 

  

	4.	Our obligation hereunder is non transferable except to a substitute body that replaces us as a result of any change to the structure and/or name and/or change of ownership of the
premises. 

  

	5.	Our commitment hereunder is irrevocable and valid until the date of ___________. 

  

	6.	Our address for the service of a call for payment letter is _______________. 

 Respectfully, 
 Bank ______________ 
 Branch _____________________ 
  

 93 

 AZRIELI CENTER 
 ANNEX “I” 
 PARKING CONTRACT 
 Entered into in _______ on the date of ______ month ____ year _____ 
 Between 
 Azrieli Center Parking Ltd. 
 Whose address for the purpose of this agreement is: 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Company”) 
 As one part 
 And 
 BIGBAND NETWORKS LTD.

 Corporate no. 51-275107-4 
 (Hereinafter: the “User”) 
 Whose address for purposes of this agreement is:

 Kiryat Atidim, building 4, 5th floor 
 Telephone: 7651799 
 Fax: 7651788 
 As the second
part 
  

			
	Whereas	    	Kanit Hashalom Investments Ltd. (hereinafter: the “Landlord”) is the lessee of a section of the land and holds the right to be registered as the lessee on the remainder of the land
on lot 7106 parcel 5 in Tel Aviv (hereinafter: the “Land”);
		
	Whereas	    	The landlord is erecting a project on the land consisting of buildings designated for offices, commerce, stores, residential space, parking lots and other uses known by the name “Azrieli
Center” (hereinafter: the “Project”);
		
	Whereas	    	The user signed an unprotected lease with the landlord (hereinafter: the “Lease”) conferring upon the user the right to occupy the premises on the project (hereinafter: the
“Premises”);
		
	Whereas	    	The project contains areas designated for use as a paying parking lot for cars (hereinafter: the “Parking Lot”) and the user and the landlord agreed that the management and
operation of the parking lot will be given to the company to provide the necessary services for the proper maintenance and operation of the parking lot;
		
	Whereas	    	The user is interested in parking cars in the lot as specified herein and the company agrees to allow the user to park cars in the lot subject to payment and compliance with the rest of this
agreement;

  

 94 

 Therefore it is declared, stipulated and agreed among the parties as follows: 
  

	1.	Preamble and interpretation 

  

	 	1.1	The preamble and the annexes of this agreement and the representations of the parties herein constitute an integral part hereof. 

  

	 	1.2	The headings of the sections of the agreement are for convenience and orientation only, do not constitute a part of the agreement and shall not be used in the interpretation
thereof. 

  

	2.	Parking 

  

	 	2.1	Subject to the satisfaction of the provisions of this agreement and payment of the parking fees, the user will receive 19 entry passes to the parking lot allowing the designated
cars entry into the various areas of the parking lot as specified herein according to the company’s instructions (hereinafter: “Entry Passes to the Lot”) during the days and hours when the lot is open. 

  

	 	2.2	The user will be entitled to park in the areas designated for subscribers only, or in another area as instructed by the company from time to time (hereinafter: “Parking
Areas”). The user may not park in other parking areas. The user declares that he is aware that if he is designated certain parking areas, as stated, he may not park in another area for more than 15 minutes or the user will be charged parking
fees at the rate practiced at such time in parking lots for one time customers. The company shall be entitled at any time at its sole discretion, without the need for the user’s consent, to change the location of the parking areas on the lot
where the user can park, by giving the user 7 days advance notice of such. 

 The user declares that he is aware that the
company and/or the landlord may allocate specific parking areas in the lot to tenants in the project and/or to any other person in their sole judgment and the user will not have any claims and/or actions relating to such allocation of spots.

  

	 	2.3	The company undertakes that, until such time as it notifies the user otherwise, the parking lot will be open 24 hours a day and during all the days of the year except for Yom
Kippur. 

  

	 	2.4	Entry of cars to the lot will be permitted, as stated, by entry passes that will enable the identification of the cars, such as: parking stickers to be glued on the windshields of
the cars and/or by an identification card and/or through a magnetic card to be issued to the user and/or though an electronic device installed in the car and/or in any other manner as the company sees fit to do. 

  

	 	2.5	 The user undertakes to return to the company all the entry passes to the lot immediately upon the termination of this agreement or its expiration for any reason
whatsoever. The user will deposit with the company the sum 

  

 95 

	 	 
of _________ as security against the return of the entry passes to the parking lot. Upon return of the passes to the company, the company will return the
deposit to the user linked to the consumer price index as enumerated in section 4.2 herein. 

  

	 	2.6	The use of the entry passes are intended for specific marked cars designated in advance, as will be expressly agreed by the parties, the details of each car will be provided by the
user prior to the beginning of the use (hereinafter: the “Designated Cars”). If the user wishes to change one or all of the designated cars he must notify the company at least 24 hours in advance and the company will issue the user an
entry pass for the new car against the revocation of the entry pass for the car being replaced. 

 It is understood that the
user is entitled to entry passes to the parking lot for the designated cars only. As part of this agreement and by using the entry passes to the lot that were issued thereunder, other cars which have not been designated, are not permitted to enter
the lot even if they are owned and/or under the control of and/or are driven on behalf of the user and even if the user is not using the entry passes at such time. 
  

	 	2.7	The user declares that he is aware that the parking lot is not designated as a storage garage and therefore parking in the lot is limited to a 24 hour consecutive period only. If a
car is parked beyond the 24 hour period the user will be charged parking fees for each hour beyond the first 24 hours, at the rate charged at that time in the lot for one time users. 

  

	 	2.8	To dispel any doubt, it is understood that nothing in this agreement shall prevent the tenant, customers, visitors, employees and/or others acting on his behalf, from parking in the
project’s parking lots, in open spots, in accordance with the terms, rates and arrangements accepted at such time for one time users. 

  

	 	2.9	The user declares that he is aware that the company, through the parking lot employees, may offer valet parking in the lot for those users who are interested, for an additional fee.
The user declares that he is aware that this service is offered for an additional charge by the company and that the parking fees paid by him as enumerated in section 4.1 do not include this service. 

  

	3.	Term of the agreement 

 This agreement enters into
effect from the commencement of the tenancy period. This agreement and the permission to use the entry passes thereunder will end at such time that the lease ends, whether due to its lapse or for any other reason, without the need for any separate
notice. 
  

	4.	Parking fees 

  

	 	4.1	 The user will pay for each private car that has been designated and marked in advance, $155 (one hundred fifty five dollars with VAT for 

  

 96 

	 	 
each month of use and for the right of use for ___ cars designated and marked in advance the amount of __________ with VAT for each month during the usage
period (hereinafter: the “Parking Fees”). 

 The tenant undertakes to pay parking fees even if he does not
actually exercise the right to park as stated above, in whole or in part, for the period of use, in whole or in part, insofar as this agreement remains in effect. 
  

	 	4.2	Parking fees will be linked to the consumer price index published by the Central Bureau of Statistics or any other official index replacing it from the index known on the date of
the signing of this agreement until the index known on the date of each and every actual payment. Parking fees will be revised on the dates and at the rates by which the rental fees are revised. 

 Parking fees that are linked as stated with VAT will be paid by the user to the company every three months in advance at the start of every quarter, to
wit, the first of January, the first of April, the first of July and the first of October of each calendar year. Parking fees for the first quarter or the remaining months thereof shall be paid by the user on the date he receives conveyance of the
premises. It is understood that payment of parking fees constitutes a precondition to the right to use the parking lot and the entry passes to the lot. 
  

	 	4.3	In the event of late payment of parking fees, interest at the rate practiced at such time for unauthorized overdrafts in regular bank accounts in Bank Leumi of Israel Ltd. will be
added to the fee without detracting from any other right available to the company and without infringing on its right to revoke the right to use the parking lot and the entry passes to the lot without prior warning. 

  

	 	4.4	It is understood that payment of the parking fees and/or rental fees as stated above does not confer upon the user any presumptive and/or ownership right and/or right of lease
and/or protected tenancy right to the lot and/or any other interest to the parking spots in the lot other than the right to use the parking lot for the purpose of parking as described in this agreement. 

  

	5.	Obligations of the user 

 The user undertakes as
follows towards the company: 
  

	 	5.1	To pay the company parking fees in an organized and timely fashion. 

  

	 	5.2	To park the cars in the lot only in the parking areas and in no other place in the lot and the project. 

  

	 	5.3	 The user declares that he is aware that the provisions of this agreement are in addition to any other instruction issued by the company regarding the 

  

 97 

	 	 
posting of signs and/or traffic signs and/or instructions by the parking stewards and he undertakes to heed the instructions of the company and/or anyone
acting on its behalf including the parking stewards and parking lot employees in all matters relating to the parking of cars and the use of the lot, as will be displayed by appropriate signs at the entrance of the parking lot, and as will be
instructed verbally. The user is responsible for ensuring that any person acting on his behalf and any driver of a car entitled to use an entry pass to the lot will obey the operation procedures and instructions. The user declares that he is aware
that the Transportation Ordinance [New Version] and the Transportation Regulations, 5721-1961, apply to driving on the lot and he undertakes to obey the provisions of all laws and traffic signs that will be affixed in the parking lot.

 The user undertakes to use the parking lots in a manner that will not harm other users, not to block passageways, to park
only in those areas designated for parking, to park cars only between the lines specified for each car and refrain from causing any damage to the lots and the equipment found in them. 
 The user gives his express prior consent to the company and/or anyone acting on its behalf, in the event that the passageways are blocked and/or a car
used by someone on his behalf is parked unlawfully, to take all steps required to remove the interference, including towing the car and/or moving it and/or booting the car and/or posting a warning sticker and signal on the windshield of the car or
to take any action that it deems fit to protect the organization and proper operation of the parking lot. The company and/or the landlord and/or anyone acting on their behalf shall not be responsible for any damage caused to cars as a result of the
aforesaid. 
  

	 	5.4	The user declares that he is aware that notwithstanding the fact that there is permissible entry and exit from the parking lot 24 hours a day, not all entrances and exits will
remain open 24 hours and the company may, in its sole judgment, decide which entrances to the lot will be active at which times, and the user has no action and/or claim relating to such decision. 

  

	 	5.5	The user is aware that parking on the lot is limited to private cars or commercial vehicles that do not weigh above ____ tons only and a height that does not exceed _________ cm.

  

	6.	Liability for damages 

  

	 	6.1	The user declares that he has sole responsibility for the use of the lot and the entry passes to the lot and that the company and/or those acting on its behalf have no
responsibility to monitor the cars in the lot and/or their contents and/or the external bodywork of the cars and it is not responsible for any damage or loss caused to any car, person or thing in the parking lot for any reason including and without
derogating from the foregoing generalities, as a result of fire, smoke, earthquake, terrorist activity, war, flood, flooding, theft, burglary, or damage to other cars. 

  

 98 

 The user releases the company from any responsibility for such damage. The user undertakes to indemnify
the company within 7 days from its first demand to do so for any cost and/or damage caused to the company and/or for any sum that it will be required to pay for such action and/or damage, loss or absence. 
  

	 	6.2	The user will be solely responsible for any damage caused by him to the parking lot or its fixtures and/or to the company and/or its employees and/or the operators of the parking
lot and/or any third party as a result of an act or omission of the user and/or one acting on his behalf. 

  

	 	6.3	The user undertakes that his cars that will park in the lot will be insured with compulsory insurance as required by law and comprehensive insurance, including third party insurance
and they will be used in accordance with the law. 

  

	 	6.4	The user declares that he is aware that the payment of parking fees is for the right to park only and does not include any security services whatsoever and that the presence of
supervisors and/or inspectors and/or stewards and/or cashiers at the entrances and exits of the parking lot is for the collection of payment and granting parking rights only. The parties agree that the provisions of the Bailees Law, 5727-1967, shall
not apply to this agreement and/or the parking of the cars in the parking lot and the use of the lot. 

  

	 	6.5	The user declares that he is aware that he may not leave keys in a car and/or give them to any of the employees of the parking lot and that the parking lot employees are prohibited
to instruct and/or suggest and/or request that car keys be handed over or left with them. 

 Notwithstanding the foregoing, if
the user, or anyone acting on his behalf, decides, for any reason, to leave the keys in a car or leave the keys of the car with one of the employees of the parking lot, then the user declares that such act is committed under his sole responsibility
while being aware of the risks in handing over the keys and/or leaving them in the car, due to the possibility of duplication of the keys and/or copying them and/or using them in another manner, whether maliciously or negligently, by the parking lot
employees and/or by any person to whom the keys are given or taken whether in error or intentionally, including due to a mistake of identity. The user releases the company and all its workers from any responsibility for the loss, harm, damage, or
ruin which could happen, directly or indirectly to them and/or the body of any person, and/or any property in the lot or outside of it, due to the deposit and/or leaving of the keys as described. 
 Notwithstanding the foregoing, it is understood that the company shall be entitled to publish a written notice that it is changing the rules of parking in
the lot and that keys must be left in the car by the user and/or one acting on his behalf, in order to allow double parking in the lot. The user and/or anyone acting on his behalf undertake to act in accordance with instructions to be publicized by
the company as described. 
  

 99 

	 	6.6	The user declares that he is aware that the company is entitled to clear any car from the lot for which parking fees have not been paid and/or any car parked without permission
and/or contrary to instructions and the company and/or the landlord and/or anyone on their behalf will not be responsible for any damage of any kind caused as a result. 

  

	7.	Transfer of rights 

  

	 	7.1	The user shall not be entitled to transfer the right conferred upon him by this agreement in respect to the entry passes, in whole or in part, to any third party without receiving
written consent by the company and will not allow, directly or indirectly, other cars to enter the lot other than what is stated in section 2 above. 

  

	 	7.2	The company and/or the landlord shall be entitled to transfer their rights to the lot and/or the operation thereof and/or their rights and obligations pursuant to this agreement in
whole or in part to any third party as per their absolute judgment without receiving the user’s approval, and the user gives his consent to the transfer of such rights as long as his rights under this agreement are not impaired as a result.

  

	8.	Breaches and remedies 

 The provisions of sections
2, 4, 5, 6, 7.1 are fundamental provisions of this agreement and their breach entitles the company to revoke this agreement without detracting from any other right available to the company by this agreement and/or relevant law. 
 In witness the parties set their hand at the place and date stated at the heading of this agreement 
  

					
	Azrieli Center Parking Lot	 		 	BigBand Networks Ltd.
			
	/s/ Azrieli Center Parking Ltd.	 	 	 	 /s/ BigBand Networks Ltd.
         Corporate no. 51-27507-4

	The Company	 		 	The User

  

 100 

 BLUEPRINT OF TRIANGLE BUILDING 
 Ram Goldberg Architects 
  

			
		  	Azrieli Center
	Sharon Avraham	  	Tel 03 6081355
	Architect	  	Fax 036912264

 BIG BAND 
 36th FLOOR

 File name:             36-3.dwg 
 The plan was revised: 18.3.2000 
 Scale
                    1: 
 This plan is for the allocation
of areas and review only. 
 Work is not to be done according to this plan. 
 The tenant’s architect has the responsibility of verifying the measurements and the data on the property. 
 Does not
include hallways and public spaces and the additional space for them. 
  

 101 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on October 10, 2000

 Between 
 Kanit Hashalom Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 132 Derech Petach Tikva 
 Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part 
 And 
 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this schedule is:

 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva, Tel-Aviv 
 Telephone: 6071111 
 Fax: 6071222 
 As the second part 
  

			
	Whereas	  	The landlord and the tenant signed a lease in March 2000 for space in the Azrieli Center (the lease together with its annexes shall be called hereinafter: the “Principal
Agreement”);
		
	Whereas	  	The tenant exercised his right under the principal agreement to lease additional areas on the 36th and 37th floors in the triangle building in the Azrieli
Center;
		
	Whereas	  	The parties desire to arrange their rights and obligations in respect to the lease of the premises, in light of the exercise of the option and the right of first refusal granted to the tenant
under the principal agreement;

 Therefore it is declared, stipulated and agreed among the parties as follows: 
 The parties accept that this schedule constitutes Annex “A” of the principal agreement and replaces the existing Annex “A” of the principal
agreement. 
  

 102 

 The terms, definitions and the provisions of this schedule are intended to augment and complement the terms of the
principal agreement and shall be considered an integral part thereof. Any term that is not expressly defined in this schedule shall be attributed the meaning designated to it in the principal agreement. 
 All sums specified in this schedule in dollars shall be translated into new shekels according to the representative rate of the U.S. dollar which is 4.05 shekels per
dollar and from this date onward these sums shall be linked to the index in accordance with the terms of the principal agreement and this schedule. 
 The aforesaid refers to the area on the 37th floor only (the new area). 

Sections in the agreement 
  

					
	 Section 2.1
	  	“Property” or the “Premises” - the area marked on the blueprints Annex “B” located in the triangular tower on the 36th and 37th floors.
		
	 Section 2.1
	  	“Base Index” - index for September, 2000.
		
		  	The foregoing refers to the additional space only (37th floor).
		
	Section 4	  	“Size of the Premises” - the size of the premises for purposes of this agreement is 2,860 square meters.
		
		  	This area consists of the premises as defined in the principal agreement - 600 square meters (hereinafter: the “Primary Premises”), the area of the option granted to the
tenant which he exercised - 830 square meters (hereinafter: “Option Area”) and the area on the 37th floor
for which the tenant exercised the right of refusal conferred upon him by the principal agreement - 3,430 square meters (hereinafter: the “Additional Area”).
		
	 Section 5.1
	  	“Purpose of the Tenancy” - offices for the management of a hi-tech company.
		
	 Section 6
	  	“Tenancy Period” -
			
		  	“Initial Tenancy Period”	  	a period of 60 months.
			
		  	“First Extended Tenancy Period”	  	a period of 24 months.
			
		  	“Extended Tenancy Periods”	  	a period of 24 months.
			
		  		  	a period of 12 months.
		
	 Section 7.1
	  	“Rental fees for the first year of tenancy” - the amount of $57,200 (fifty seven thousand and two hundred U.S. dollars) per month with linkage differential and lawful
VAT, which equals $20 (twenty dollars) for each square meter of the premises, per month, with linkage differential and lawful VAT.

  

 103 

			
		  	The foregoing rental fees shall be paid to the landlord from the date of the conveyance of the additional area. Until the conveyance of the additional area the landlord will receive rental
fees in the amount of $28,600 (twenty eight thousand and six hundred U.S. dollars) per month with linkage differential and lawful VAT for each square meter of the primary premises and the option area.
		
		  	“Rental fees for the second year of tenancy” - the amount of $58,630 (fifty eight thousand and six hundred thirty U.S. dollars) per month with linkage differential and lawful VAT,
which equals $20.50 (twenty dollars and fifty cents) for each square meter of the premises, per month, with linkage differential and lawful VAT.
		
		  	“Rental fees beginning from the third tenancy year until the end of the initial tenancy period” - the amount of $62,920 (sixty two thousand nine hundred and twenty U.S., dollars)
per month with linkage differential and lawful VAT, which equals $22 (twenty two dollars) for each square meter of the premises, with linkage differential and lawful VAT.
		
	Section 7.3	  	“First payment at the signing of the agreement” - at the signing of the schedule the tenant will pay the landlord rental fees for the first three tenancy months with lawful VAT.
Since the tenant is exempt from payment of rental fees for the first month and a half of the tenancy the tenant will pay at the signing of this schedule the amount of $57,200 (fifty seven thousand and two hundred U.S. dollars) with linkage
differential and lawful VAT.
		
	Section 7.5	  	“Rental fees and parking fees during the extended periods” - Being that the tenant was granted the right to extend the tenancy for further tenancy periods, as stated above, rental
fees and parking fees for the first extended tenancy period, will increase according to the increase in the index or the dollar, the higher of the two with an extra 10% above the rental fees and parking fees applicable on the eve of the commencement
of the first extended tenancy period. Rental fees and parking fees for each of the extended tenancy periods will increase by 2% above the rental fees and parking fees applicable on the eve of the commencement of each of the extended tenancy
periods.
		
	Section 9.2	  	“Last date to submit plans for the tenant’s work” -October 20, 2000 in respect to the additional area.
		
	Section 9.6	  	“Date for granting a license” - November 20, 2000.
		
	Section 11	  	“Conveyance date” - December 20, 2000 or an earlier date pursuant to a notice by the landlord. It is understood that the area of the primary premises and the option area were
conveyed to the tenant on June 29, 2000.

  

 104 

			
	Section 26	  	“Bank guarantee” - a bank guarantee for the entire tenancy period and an additional 3 months after the expiration of the tenancy period - for a sum equal to, on the date the
guarantee is delivered, rental fees for the last three months at the end of the initial tenancy period, with VAT for a total amount of $213,822 (two hundred thirteen thousand eight hundred and twenty two U.S. dollars). The amount of the bank
guarantee shall be linked to the index. The amount of the bank guarantee already given by the tenant to the landlord shall be deducted from the amount of the bank guarantee stated above.
		
		  	At the signing of this schedule the tenant will increase the amount of the bank guarantee that he gave to the landlord pursuant to the principal agreement to the amount specified above, by
giving a bank guarantee to the landlord in an amount that equals the difference between the first guarantee and the amount the tenant is to give the landlord above.

 Special terms 
  

	1.	In accordance with the provisions of the principal agreement, the tenant exercised the option granted by the landlord to lease the remaining space on the floor on which the premises
are located, of 830 square meters. The tenant occupied this space on the date of conveyance of the primary premises on June 29, 2000. The terms of the tenancy for the option space are to be identical with the terms for the leasing of the
primary premises. 

 At the signing of this schedule, the tenant will receive, at his request, a total but no more than 65
parking passes including passes that were given to him until the present pursuant to the parking agreement Annex “I” of the principal agreement, under the same terms specified in said parking agreement. Until the conveyance of the
additional area the tenant will give the landlord notice in writing specifying the number of passes which the tenant would like to receive above the number of passes that were already delivered to the tenant under the principal agreement.

  

	2.	In addition to the works which the landlord committed to undertake at its own expense pursuant to the technical specifications in Annex “C”, the landlord will make
available for the tenant the sum of $15,000 with VAT for additional work in the additional area by the landlord. It is understood that the credit will be given only for work on the premises related to items permanently fixed to the additional area
and no cash payment shall be made to the tenant and/or a credit for the tenant’s investment in movable goods. The calculation of the amount of the credit will be made in accordance with the credit price list accepted by the landlord at such
time. It is understood that the amount of the credit mentioned above is complete and final. 

  

	3.	In accordance with the terms of the principal agreement, the tenant exercised his right of refusal to rent the 37th floor in the tower consisting of 1,430 square meters
(hereinafter: “Additional Area”). 

  

 105 

 All the provisions of this agreement will apply to the additional area, including the technical
specifications appended to this agreement mutatis mutandis. Rental fees to be remitted by the tenant for each square meter of the additional space shall be identical to the rental fees paid by him for each square meter of the primary premises. It is
understood that the initial tenancy period for the additional area will be 60 months which will commence at the conveyance of the additional area to the tenant and will terminate on December 14, 2005 or any earlier date, inasmuch as the
conveyance of the additional area took place earlier than December 20, 2000. 
 The tenant undertakes to submit the final approved plans
to the landlord for the modification of the additional space no later than October 20, 2000. The landlord shall convey the additional area to the tenant no later than December 28, 2000 subject to and in accordance with the provisions of
the principal agreement. 
  

	4.	The parties agree that the air-conditioning on the floor will operate on a regular basis from Sunday-Thursday (except for holidays) between the hours of 07:00 - 21:00 and on Friday
and holiday eves between the hours of 07:00 and 16:00. The operation of the air conditioner beyond these hours shall be by a written request by the tenant at least 24 hours in advance. If the landlord operates the air conditioning system beyond the
hours mentioned above, then the tenant will pay the landlord the sum of 50 shekels for each additional hour with linkage differential and lawful VAT. This sum will be paid to the landlord no later than seven business days from receiving a written
demand to do so by the landlord. 

  

	5.	The tenant will pay 50% of the cost of the landlord’s work in the additional area as a precondition to the start of these works. An additional 25% of the cost of the
landlord’s work will be paid by the tenant one month after the start of the landlord’s work and the remaining 25% of this cost will be paid by the tenant at the conveyance of the additional area. All the payments stated above shall be paid
with linkage differential and lawful VAT. 

  

	6.	The landlord will not charge rental fees for the first three months of the initial tenancy period of the primary premises and the option area. 

 The landlord will not charge rent for the first month and a half of the initial tenancy period for the additional area. 
  

	7.	Notwithstanding the provisions of this agreement, the parties accept that the tenant may end the tenancy period for the primary premises and the option area at any time after the
expiration of 24 months after conveyance of these areas (to wit, June 29, 2000) with 6 months prior written notice to the landlord and subject to the tenant paying the landlord the following compensation: 

  

	 	7.1	If the tenancy period ends after the expiration of 24 months of tenancy but prior to the expiration of 30 months the tenant will compensate the landlord with rental fees for 7
months with VAT and linkage differential. 

  

 106 

	 	7.2	If the tenancy period ends after the expiration of 30 months of tenancy but prior to the expiration of 36 months the tenant will compensate the landlord with rental fees for 6.5
months with VAT and linkage differential. 

  

	 	7.3	If the tenancy period ends after the expiration of 36 months of tenancy but prior to the expiration of 42 months the tenant will compensate the landlord with rental fees for 6
months with VAT and linkage differential. 

  

	 	7.4	If the tenancy period ends after the expiration of 42 months of tenancy but prior to the expiration of 48 months the tenant will compensate the landlord with rental fees for 5.5
months with VAT and linkage differential. 

  

	 	7.5	If the tenancy period ends after the expiration of 48 months of tenancy but prior to the expiration of 54 months the tenant will compensate the landlord with rental fees for 4
months with VAT and linkage differential. 

  

	 	7.6	If the tenancy period ends after the expiration of 54 months of tenancy but prior to the expiration of 58 months the tenant will compensate the landlord with rental fees for 1.5
months with VAT and linkage differential. 

  

	 	7.7	Nothing in this section shall change the date on which the initial tenancy period ends for the premises under the principal agreement and this schedule, and the date for the end of
the initial tenancy period for the primary premises and the option area is June 28, 2005. 

  

	 	7.8	Payment of the compensation contemplated above does not detract from the tenant’s duty to bear all the payments applicable by this agreement until the date of his actual
departure from the primary premises and the option area. 

  

	8.	Notwithstanding the provisions of this agreement, the parties agree that the tenant shall be entitled to end the tenancy period in the additional area at any time after the
expiration of 24 months from the conveyance of this area (namely - the “Additional Area”) with 6 months prior written notice to the landlord and subject to the tenant paying the landlord the following compensation:

  

	 	8.1	If the tenancy period ends after the expiration of 24 months of tenancy but prior to the expiration of 30 months the tenant will compensate the landlord with rental fees for 7
months with VAT and linkage differential. 

  

	 	8.2	If the tenancy period ends after the expiration of 30 months of tenancy but prior to the expiration of 36 months the tenant will compensate the landlord with rental fees for 6.5
months with VAT and linkage differential. 

  

 107 

	 	8.3	If the tenancy period ends after the expiration of 36 months of tenancy but prior to the expiration of 42 months the tenant will compensate the landlord with rental fees for 6
months with VAT and linkage differential. 

  

	 	8.4	If the tenancy period ends after the expiration of 42 months of tenancy but prior to the expiration of 48 months the tenant will compensate the landlord with rental fees for 5.5
months with VAT and linkage differential. 

  

	 	8.5	If the tenancy period ends after the expiration of 48 months of tenancy but prior to the expiration of 54 months the tenant will compensate the landlord with rental fees for 4
months with VAT and linkage differential. 

  

	 	8.6	If the tenancy period ends after the expiration of 54 months of tenancy but prior to the expiration of 58 months the tenant will compensate the landlord with rental fees for 1.5
months with VAT and linkage differential. 

  

	 	8.7	Nothing in this section shall change the date on which the initial tenancy period ends for the additional area under the principal agreement and this schedule, and the date for the
end of the initial tenancy period for the additional area is at the expiration of five years from the conveyance of the additional area. 

  

	 	8.8	Payment of the compensation contemplated above does not detract from the tenant’s duty to bear all the payments applicable by this agreement until the date of his actual
departure from the additional area. 

  

	9.	If in accordance with the instructions of the safety advisor for the project, there will be a requirement to add smoke resistant doors to the premises, the cost related to
installation of the doors will be paid by the landlord as part of the specifications work. 

  

					
	 /s/ Kanit Hashalom Investments Ltd.
	  		  	 /s/ BigBond Networks Ltd.
        Corporate no.
51-27507-4

	The Landlord	  		  	The Tenant

  

 108 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on February 21, 2002 
 Between 
 Kanit Hashalom
Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part 
 And

 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 

Whose address for purposes of this schedule is: 
 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva, Tel-Aviv 
 Telephone: 03-6081986 Fax: 03-6081998 
 As the second part 
  

			
	Whereas	  	The landlord and the tenant signed a lease agreement on March ___ 2000 for offices in the triangle tower of the Azrieli Center and on October 10, 2000 signed a schedule to said agreement
by which additional space in the Azrieli Center was leased to the tenant (hereinafter: the “Principal Agreement”);
		
	Whereas	  	The parties wish to make a number of changes to the principal agreement, as specified in this schedule herein.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	All of the terms and definitions appearing in this schedule shall be given the meanings attributed to them by the principal agreement unless expressly stated otherwise in this
schedule. 

  

	2.      2.1	 Notwithstanding the provisions of the principal agreement it is agreed that the tenancy for all of the space on the 37th floor in the tower (hereinafter: the “Returned Area”) shall end on June 30, 2002 (hereinafter: the “Determining Date”)
contingent upon the tenant satisfying all of his 

  

 109 

	 	 
obligations regarding the returned area until the determining date and contingent upon the fixed compensation to be paid by the tenant for the early
termination of the tenancy for the returned area, in the amount of rent for the returned area as it was at the termination of the tenancy period equal to 7 months rent, with lawful VAT. The amount of the fixed compensation shall be paid by the
tenant to the landlord during July, 2002. 

 The parties agree that notwithstanding the provisions of the principal
agreement, the rent per square meter for the 37th floor only will remain NIS 81 linked to the index of September
2000 (167.74 points) with VAT. This rent will be in effect for the period of the principal agreement. 
  

	 	2.2	Notwithstanding the provisions set forth in the principal agreement the parties agree that rent for the remainder of the period until the determining date, namely for the months of
January 2002 - June 2002, will be paid monthly in advance on the first of each month. 

  

	 	2.3	If the tenant expresses his desire, by written notice delivered to the landlord, to continue and rent a space of 100 - 150 square meters of the premises on the 37th floor and contingent upon the consent of the landlord to such, the tenant will be exempt from paying the fixed compensation
described in section 2 above for the proportionate section of the space on the 37th floor which he will continue to
rent under this section. The terms of the principal agreement will apply to the premises located on the 36th floor,
as it is amended by this agreement. To dispel any doubt, it is understood that the landlord has sole discretion whether to allow the tenant to continue to lease the area specified at the start of this subsection, and such consent may be withheld due
to the fear of hurting potential tenants on this floor and/or architectural considerations by the landlord and/or a commitment or desire by the landlord to lease this space to another and/or any other reason without the landlord having any duty to
explain its refusal. 

  

	3.      3.1	If the tenant is able to bring an alternative tenant or tenants for part or all of the premises, in accordance and subject to the provisions of section 22.2 of the principal
agreement, who will lease the returned area from the landlord for the period until December 31, 2003 under the same terms, then the tenant will not be required to pay the fixed compensation as set forth in section 2.1 to the landlord.

  

	 	3.2	 Notwithstanding the provisions of section 3.1 above, if the rent which the alternative tenants commit to pay is less than the rent which the tenant committed to pay
for the returned area under the principal agreement, then the tenant must pay the landlord until December 31, 2003, as a condition for its consent to lease the returned area to the alternative tenants, the full amount of the difference between
NIS 81 with VAT which the tenant committed to pay pursuant to the principal agreement for the returned area, without the rise in price as mentioned in section 2.1 above, and the rent which the alternative tenants committed to pay for the returned
area until December 31, 2003. In this instance the tenant will not be required to 

  

 110 

	 	 
pay the fixed compensation specified in section 2.1 above. Notwithstanding the provisions of this paragraph, it is agreed that in this instance the tenant
will not be required to pay the landlord a sum that exceeds the rental fees which the tenant committed to pay the landlord until June 30, 2002 with the fixed compensation as set forth in section 2.1 above. To dispel any doubt it is understood
that nothing in this section shall detract from the landlord’s right to refuse to lease to the tenant or to alternative tenants as provided in section 22.2 of the principal agreement. 

  

	4.	After the return of the returned area to the landlord, in accordance with the terms of the principal agreement, subject to the fact that the tenant provided the landlord with a
guarantee from the parent company to the principal agreement, as mentioned in section 9.1 herein, and after the tenant paid the landlord the compensation provided in section 2, the amount of the bank guarantee given by the tenant to secure
compliance with all of his obligations under the principal agreement will be decreased to NIS 650,000 linked to the December 2001 index. 

  

	5.	In respect to the area on the 36th floor, which
constitutes the remaining area of the premises, the provisions of the principal agreement regarding the increase of rent during the initial tenancy period and the rent which will be paid by the tenant during the initial tenancy period, will not
exceed the rent applicable to the tenant at the signing of this schedule, as set forth in section 2.1. 

  

	6.	Notwithstanding the provisions set forth in the principal agreement, the tenant will be allotted up to 60 parking passes. The tenant will not be required to pay parking fees for 15
parking passes out of all the parking passes that he actually receives for the period between October 1, 2001 ending on December 31, 2003 (hereinafter: the “Determining Period”). 

  

	7.	In furtherance to section 6 above, the tenant will not be required to pay the landlord for the determining period, rent for the area allocated to him on the roof of the tower for
the placement of antennas (for 1,000 dollars per month with VAT). 

 After the expiration of the determining period the tenant
will be obligated to pay the landlord rent for the antenna area and parking fees for all the entry passes allotted to him as stated in section 6 above. 
  

	8.	The tenant is given the right to bring the tenancy on the 36th floor, which constitutes the remainder of the premises, to an early termination, with a prior 6 month advance notice to the landlord in such manner so that the tenancy period will not end before April 1, 2003, subject to
payment of the fixed compensation as follows: 

  

	 	8.1	If the tenancy period ends during the period beginning from April 1, 2003 and ending on December 31, 2003, the tenant will pay fixed compensation to the landlord in the
amount of rent for 7 months of tenancy with lawful VAT. 

  

 111 

	 	8.2	If the tenancy period ends during the period beginning from January 1, 2004 and ending on September 30, 2004, then the tenant will pay fixed compensation in the amount of
rent for 5 months of tenancy with lawful VAT. 

  

	 	8.3	If the tenancy period ends during the period beginning from October 1, 2004 and ending at the expiration of the tenancy period, the tenant will pay fixed compensation to the
landlord in the amount of rent for 3 months of tenancy with lawful VAT. 

  

	9.	The effectiveness of this schedule is contingent upon compliance by the tenant with the two following terms: 

  

	 	9.1	To produce to the landlord, no later than 21 days from the signing of this agreement, a guarantee by the tenant’s parent company securing the satisfaction of all of his
obligations under the principal agreement and this schedule, in the form appended as Annex “A” of this schedule. 

  

	 	9.2	The tenant will make within 7 days of the execution of this schedule, all payments that he is obligated for under the principal agreement which were not paid until the signing
hereof, including, arnona for the storage area, rent, management fees and parking fees and any other debt which he must pay pursuant to the principal agreement. 

  

	10.	The remainder of the provisions of the principal agreement, insofar as they are not expressly amended and/or changed by this schedule shall remain in effect without any change.

 In witness the parties set their hand: 
  

					
	 /s/ Kanit Hashalom Investments Ltd.
	  		  	 /s/ BigBand Networks Ltd.
        Corporate no.
51-27507-4

	The Landlord	  		  	The Tenant

 Attorney Affirmation 
 I the undersigned, Advocate Ayal Shenhav, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr. Ron Oz who signed this agreement and
the annexes thereto on behalf of the Company is/are the authorized signatory/ies of the Company and a resolution to sign this contract was duly accepted by the company. 
  

	
	
	 /s/ Dr. Ayal Shenhav

	 Dr. Ayal Shenhav, Advocate
 License no.
14945

  

 112 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on April 29, 2002 
 Between 
 Kanit Hashalom
Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part 
 And 
 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this schedule
is: 
 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva,
Tel-Aviv 
 Telephone: 03-6081986 Fax: 03-6081998 
 As the second part 
  

			
	Whereas	  	The landlord and the tenant entered into a schedule to the lease on February 21, 2002 (hereinafter: the “Schedule”) appended hereto as Annex “A” of this
amendment;
		
	Whereas	  	The parties wish to make a number of changes to this schedule, as specified herein in the amendment to the schedule of the lease (hereinafter: the
“Amendment”);

 Therefore the parties declare, stipulate and agree as follows: 
  

	1.	All of the terms and definitions in this amendment shall have the same meanings as attributed to them in the schedule of February 21, 2002 unless explicitly stated otherwise in
this schedule. 

  

	2.	Section 9 of the schedule is revoked and shall be replaced by a new section 9 in the following wording: 

  

	 	“9.	The effectiveness of this schedule shall be contingent upon the tenant’s satisfaction of the two following conditions: 

  

	 	9.1	No later than May 21, 2002, a guarantee of the tenant’s parent company shall be given to the landlord (hereinafter: “Guarantee of the Parent Company”) to secure
the satisfaction of all of his obligations under the principal agreement and this schedule, in the version appended as Annex “A” to this schedule. The following provisions shall apply to the guarantee of the parent company:

  

	 	9.1.1 	The guarantee of the parent company shall enter into effect immediately and automatically upon the forfeiture of the bank guarantee which the tenant made available in its entirety
as enumerated in section 4. 

  

 113 

	 	9.1.2 	The guarantee of the parent company shall be in effect six months beginning from the date on which the last sum of the bank guarantee is forfeited, whether it is forfeited at one
time or in installments. 

  

	 	9.1.3 	As long as the bank guarantee is not forfeited in its entirety, the guarantee of the parent company is to remain unenforceable. 

  

	 	9.1.4 	The guarantee of the parent company shall be rendered null and void if the bank guarantee that the tenant provided expires before it is exercised (in part or in whole).

  

	 	9.2	The tenant will pay within 7 days for the signing of this schedule all the payments which he must remit according to the principal agreement and which were not paid until the
signing of this schedule, including, arnona (municipal tax) for the storage areas, rental fees, management fees, and parking fees as well as any other debt which the tenant is obligated to pay pursuant to the principal agreement.”

  

	3.	The wording of the guarantee of the parent company which is appended to the schedule shall be replaced with the version that is appended hereto as Annex “B”
of this amendment. 

  

	4.	The rest of the provisions of the schedule, insofar as they have not been expressly amended and/or changed by this amendment, shall remain in effect without any change.

 In witness the parties set their hand: 
  

					
	 /s/ Kanit Hashalom Investments Ltd.
	  		  	 /s/ BigBand Networks Ltd.
        Corporate no.
51-27507-4

	The Tenant	  		  	The Landlord

 Attorney Affirmation 
 I the undersigned, Advocate Ayal Shenhav, Advocate, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr. Ron Oz and Mr. /Ms.
_____________ who signed this agreement and the annexes thereto on behalf of the Company is/are the authorized signatory/ies of the Company and that a resolution to enter into this contract was duly adopted by the company. 
  

	
	
	 /s/ Dr. Ayal Shenhav

	 Dr. Ayal Shenhav, Advocate
 License no.
14945
 Advocate

  

 114 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on October 28, 2002 
 Between 
 Kanit Hashalom
Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part 
 And

 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this schedule is: 
 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva, Tel-Aviv 
 Telephone: 03-6081986 Fax: 03-6081998 
 As the second part 
  

			
	Whereas	  	The landlord and the tenant signed a lease on March 16, 2000 pertaining to offices in the triangle tower in the Azrieli Center and the parties signed a schedule to the agreement on
October 10, 2000 by which the tenant leased additional areas in the Azrieli Center (hereinafter: the “Principal Agreement”);
		
	Whereas	  	On February 21, 2002 a schedule to the principal agreement was signed by which, inter alia, the tenant returned the 37th floor of the triangle tower in the project to the landlord in its entirety, a schedule that was also amended in the amendment signed on April 29, 2002
(both the schedules together shall be called the “Last Schedule”);
		
	Whereas	  	The parties wish to change the last schedule in accordance with the terms set forth in this schedule herein.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	The terms and definitions in this schedule shall bear the same meanings attributed to them by the principal agreement and the last schedule unless expressly stated otherwise in this
schedule. 

  

 115 

	2.      2.1	Notwithstanding the provisions set forth in the last schedule it is agreed that the leased section of the 37th floor in the triangle tower consisting of 337 square meters, described in the blueprints appended as Annex “A” of this agreement (hereinafter: the
“Remaining Area”) shall not be returned to the landlord and the tenant will continue to lease it from the landlord and the tenancy will be deemed as never having been revoked (namely, on July 1, 2002 the tenancy for the
remaining area continued in effect as if did not expire on June 30, 2002 as written in the last schedule). Rental fees for the remaining area, for the period commencing on October 1, 2001 are NIS 81 per square meter with linkage
differential and lawful VAT. To calculate the linkage differential for the remaining area the index of September 2000 (167.74 points) will be the base index. 

  

	 	2.2	The compensation which the tenant committed to pay for the returned area under section 2.1 of the last schedule will be decreased at the same rate as the decrease in the reduction
of the returned area. 

  

	 	2.3	The landlord will do all the necessary work at the tenant’s expense in order to separate the remaining area form the rest of the 37th floor. Notwithstanding the above, electrical work to separate the remaining area from the rest of the 37th floor will be done by the landlord at its expense. The tenant undertakes to pay the landlord for all costs in making the above separations (except for the
electrical work) no later than fourteen days form the landlord’s first call for payment provided that the cost for the separation does not exceed NIS 2,000 with lawful VAT. 

  

	 	3.	Notwithstanding the provisions set forth in section 4 of the last schedule, the amount of the bank guarantee which the tenant must provide pursuant to the principal agreement will
not be reduced to NIS 650,000 but will be NIS 704,000. 

  

	 	4.	For the two additional antennas that the tenant placed on the roof of the tower, the tenant will pay the landlord the shekel equivalent of 4,710 shekels per month with lawful VAT
and linkage differential for the period beginning on August 7, 2002. The base index for calculating the linkage differential will be for August 2002 which was published on September 15, 2002. 

  

	 	5.	The tenant will not be required to pay parking fees for five parking spots of all the spots allocated to him by the principal agreement beginning from October 1 until
December 31, 2003 in addition to the fifteen spots for which the tenant is exempt from paying parking fees, according to the last schedule until December 31, 2003. After this date the tenant must pay the landlord parking fees for the five
parking spots (as well as for the five parking spots mentioned above). 

  

	 	6.	The remainder of the provisions of the principal agreement and the last schedule so long as they have not been expressly amended and/or changed by this schedule shall remain in
effect with no change. 

  

 116 

 In witness the parties set their hand: 
  

					
			
	/s/ BigBand Networks Ltd.
        Corporate no. 51-27507-4	 		 	/s/ Kanit Hashalom Investments Ltd.
	The Tenant	 		 	The Landlord

 Attorney Affirmation 
 I the undersigned, Advocate Einav Aharoni-Yunes, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirms that Mr. Ron Oz who signed this
agreement and the annexes thereto on behalf of the Company is/are the authorized signatory/ies of the Company and that a resolution to enter into this contract was duly adopted by the company. 
  

	
	 Einav Aharoni-Yunes
 License no.
32642

	
	 /s/ Einav Aharoni-Yunes

	Advocate

  

 117 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on July 1, 2003 
 Between 
 Kanit Hashalom
Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part; 
 And 
 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this schedule
is: 
 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva,
Tel-Aviv 
 As the second part; 
  

			
	Whereas	  	The landlord and the tenant signed a lease on March 16, 2000 and annexes pertaining to offices in the triangle tower in the Azrieli Center (the Lease and its annexes shall be called
hereinafter: the “Principal Agreement”) and the parties signed a schedule to the agreement on October 10, 2000 by which the tenant leased additional areas in the Azrieli Center (hereinafter: the “First
Schedule”);
		
	Whereas	  	On February 21, 2002 a schedule to the principal agreement was signed by which, inter alia, the tenant returned the entire 37th floor in the triangular building in the project to the landlord (hereinafter: the “Second Schedule”), which was also amended by a schedule
signed on April 29, 2002 (hereinafter: the “Third Schedule”), and an additional amendment in accordance with the schedule signed on October 28, 2002 (hereinafter: the “Fourth Schedule”), by which the
tenant continues to rent a space of 337 square meters gross on the 37th floor, in addition to the other areas which the tenant is leasing in accordance with the principal agreement.

  

 118 

			
		  	(The principal agreement, the First, Second, Third, and Fourth Schedules shall be called hereinafter jointly and severally, as warranted: the “Lease”);
		
	Whereas	  	The parties desire to modify the lease in accordance with the terms of this schedule.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	All of the terms and definitions appearing in this schedule shall be given the meanings attributed to them in the lease unless expressly stated otherwise in this schedule.

  

	2.	Instead of the tenancy period and the additional tenancy periods specified in the lease, from July 1, 2003 the tenancy period for the premises shall be one specified period of
48 months, beginning from July 1, 2003 and ending on June 30, 2007 (hereinafter: the “Tenancy Period”). 

  

	3.	The tenant shall be entitled to shorten the tenancy period stated in section 2 above, in accordance with the provisions provided below and subject to the terms stated therein:

  

	 	3.1    3.1.1	Beginning from July 1, 2003 until December 31, 2004, the tenant may give an unconditional and unrestricted written notice reducing the tenancy period and in this event the
tenancy period will end on the date specified in the notice by the tenant, but no earlier than 6 months from the receipt of the notice by the landlord. 

  

	 	3.1.2	If the tenant gave the landlord such notice as described in subsection 3.1.1 above, the tenant shall be obligated to pay the landlord all the rent in one installment until the end
of the shortened tenancy period in respect to the period beginning 1.7.03 until the end of the shortened tenancy period (after deducting the rent actually paid by the tenant for this period at the rate stated in this schedule), and the tenant shall
be obligated to pay a fixed compensation until the end of the shortened tenancy period in accordance with the provisions of section 8 of the Annex of Special Terms of the principal agreement signed on 16/3/00, as the case may be.

  

	 	3.1.3	Notwithstanding the foregoing, it is understood that if the tenant exercises his right to shorten the tenancy period, so that it will end on June 30, 2005 or afterwards, then
the tenant will not have the obligation to pay the landlord fixed compensation in accordance with the provisions of section 8 of the annex of special terms of the principal agreement signed on 16/3/00, as the case may be, however the tenant will be
bound to pay a fixed compensation until the end of the shortened tenancy period in the amount of rental fees, at the rate provided by this schedule, for one month of tenancy, in addition to satisfaction of all of his obligations under the lease and
this schedule until the end of the shortened tenancy period. 

  

 119 

	 	3.2    3.2.1	Beginning from July 1, 2005 until December 31, 2006, the tenant may give an unconditional and unrestricted written notice reducing the tenancy period and in this event the
tenancy period will end on the date specified in the notice by the tenant, but no earlier than 6 months from the receipt of the notice by the landlord. 

  

	 	3.2.2	If the tenant gave the landlord such notice as described in subsection 3.2.1 above, the tenant shall be obligated to pay fixed compensation to the landlord until the end of the
shortened tenancy period in the amount of rental fees, at the rate provided in this schedule, for one month rent in addition to the fulfillment of all of his obligations under the lease and this schedule until the end of the shortened tenancy
period. 

  

	 	3.3	It is understood that the permission given to the tenant to shorten the tenancy period as provided in subsections 3.1 and 3.2 above, shall apply only in respect to all of the space
of the premises (and never to sections of the premises) and replaces the rights of the tenant to reduce the tenancy period under the lease, as defined above, insofar as they exist. 

  

	4.	Notwithstanding the provisions of the lease, including the principal agreement from March 16, 2000, it is agreed that during the period specified in section 2 above the
following provisions shall apply to the rental fees which the tenant must pay the landlord: 

  

	 	4.1	For the period beginning July 1, 2003 and ending on June 30, 2005, rent shall be $15 per square meter with linkage differential and lawful VAT. Rent shall be paid in
shekels according to the representative rate of the dollar known on July 1, 2003 (NIS 4.314 shekel per dollar) and will be linked to the index of July 2003, which was published on August 15, 2003 (179.83 points). 

 

	 	4.2	For the period beginning July 1, 2005 and ending on June 30, 2007, rent shall be $17 per square meter with linkage differential and lawful VAT. Rent shall be paid in
shekels according to the representative rate of the dollar known on July 1, 2003 (NIS 4.314 shekel per dollar) and will be linked to the index of July 2003, which was published on August 15, 2003 (179.83 points). 

 

	 	4.3	Notwithstanding the above, the tenant shall be exempt from paying the proportionate share of rent equal to two weeks of tenancy, at the start of each year beginning from
July 1, 2003 until June 30 2007. This exemption from rent for a two week period will relate to and be given for the first two weeks of each relevant tenancy year. 

  

	5.	 Notwithstanding the provisions set forth in the lease, it is understood that beginning from July 2, 2003 until June 30, 2007 the tenant will not be
required 

  

 120 

	 	 
to pay parking fees for 20 parking spots only. Beyond the number of said spots the tenant will not be entitled to receive an exemption or discount for
additional spots, despite the provisions stated in the lease. It is further accepted by the parties that after this date, namely – beginning from July 1, 2007 the tenant must pay the landlord parking fees for the 20 parking spots in
accordance with the parking agreement. 

  

	6.	Notwithstanding the provisions of the lease it is agreed that for the period beginning on July 1, 2003 and ending on June 30, 2007, the tenant shall be exempt from paying
for 3 antennas which he placed on the roof of the tower. 

  

	7.	The parties accept that beginning from 1.7.03 and also valid on the effective date of this schedule, the tenant has been renting, in addition to the spaces leased to him by the
lease, an additional area of 213 gross square meters (out of a total area of 273 on the 37th floor) on the
37th floor (hereinafter: the “Additional Area”). The additional area constitutes an integral part
of the entire premises and all of the provisions of the lease shall apply to it including the provisions of this schedule, and without derogating from the foregoing generalities, the tenant will be charged all the payments for it and all the
obligations that are a byproduct of the size of the premises or the amount of rental fees paid by the tenant for all intents and purposes. 

 Notwithstanding the above, the tenant shall be exempt from paying rental fees for the additional area, until December 31, 2003 only, and after this date he will be charged rent for the area which he chooses to
actually use in the amount provided by this schedule. To dispel any doubt, and without derogating from the foregoing, it is understood that the aforesaid shall not exempt the tenant until December 31, 2003 from all the rest of his obligations
under the lease and this schedule, and the tenant shall pay for the additional area, management fees, arnona, taxes and surcharges and all other payments applicable to him under the lease, including electricity, water, telephone etc.

  

	 	A.	The tenant shall be entitled to shorten the tenancy period for the additional area, so that it will end inclusive of but no later than March 31, 2004 by giving advance written
notice to the landlord of at least 30 days. If the tenant should desire to lease the rest of the area of 273 square meters on the 37th floor beginning from 1/4/04 he may do so with the following cumulative terms: he gives at least 30 day written notice and provided that the area is not leased to another tenant. 

 All of the provisions of the lease, including this schedule shall apply to the aforesaid area, and without derogating from the foregoing generalities, the
tenant will be charged for the tenancy period beginning April 1, 2004 onward and for all the payments and obligations that are byproducts of the premises or the amount of rental fees paid by the tenant. 
  

	8.	The remaining provisions of the lease as defined in this schedule insofar as they have not been expressly amended and/or changed by this schedule, shall continue to apply to the
parties for all intents and purposes without any change. 

  

 121 

 In witness the parties set their hand 
  

					
			
	/s/ BigBand Networks Ltd.
        Corporate no. 51-27507-4	 		 	/s/ Kanit Hashalom Investments Ltd.
	The Tenant	 		 	The Landlord

 Attorney Affirmation 
 I the undersigned, _______________ Advocate, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr./Ms. _____________________ and
Mr./Ms. ______________ who signed this agreement and the annexes thereto on behalf of the Company are the authorized signatories of the Company and a duly adopted resolution was taken by the company to contract on this agreement. 
 ___________________________ 
 _______________, Advocate 
  

 122 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on March 23, 2005 
 Between 
 Kanit Hashalom
Investments Ltd. 
 Corporate no. 51-163315-8 
 Whose address for the purpose of this schedule is: 
 Azrieli Center 
 132 Derech Petach Tikva Tel-Aviv 
 (Hereinafter: the “Landlord”) 
 As one part 
 And 
 BIGBAND NETWORKS LTD. 
 Corporate no. 51-275107-4 
 (Hereinafter: the “Tenant”) 
 Whose address for purposes of this schedule
is: 
 Azrieli Center 2 Triangle Tower 36th floor 
 132 Derech Petach Tikva,
Tel-Aviv 
 Telephone: 03-6081986 Fax: 03-6081998 
 As the second part 
  

			
	Whereas	  	The landlord and the tenant signed a lease on March 16, 2000 relating to the offices in the triangle tower in the Azrieli Center (hereinafter: the “Lease”) and signed the
following schedules to the lease: Schedule of October 10, 2000 (hereinafter: Schedule A’1) Schedule of February 21 2002 (hereinafter: “Schedule A’2), Schedule of April 29 2002 (hereinafter: “Schedule A’3),
Schedule of October 28 2002 (hereinafter: Schedule A’4”) Schedule of July 1 2003 (hereinafter: “Schedule A’5”) (The lease and Schedules A’1 - A’5 shall be called together hereinafter: the
“Principal Agreement”);
		
	Whereas	  	The parties wish to make a number of changes to the principal agreement as contemplated by this schedule herein.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	All the terms and definitions appearing in this schedule shall bear the meanings attributed to them in the principal agreement, unless expressly stated otherwise in this schedule.

  

 123 

	2.	An additional area on the 37th floor will be
added to the existing premises consisting of 175 gross square meters, as marked on the blueprints appended as Annex “A” of this schedule (hereinafter: the “New Area”). Occupancy of the New Area will be conveyed to the
tenant no later than April 1, 2005, payment for the new area will be collected after completion of the repairs needed as specified herein. The new area will be conveyed to the tenant in its condition on the date of conveyance to the tenant
except for the repairs and painting that are to be carried out as specified in section 10 herein, and the landlord will also be doing construction at its expense to physically connect the new area to the premises located on part of the same floor
including connecting the area to the electric meter to the premises (As Is Where Is). It is understood that the landlord will not be asked to do any work in the new area except what is contemplated by the provisions of this schedule. All of the
provisions of the principal agreement and this schedule will apply to the new area including rental fees for each square meter of the new area and the lease. 

  

	3.	The tenant has the right to extend, for the same terms specified in the principal agreement except for the rental fees as provided in section 5 herein, the lease ending on
June 30, 2007 for an additional tenancy period of thirty six months, beginning on July 1, 2007 and ending on June 30, 2010 (hereinafter: the “Extended Tenancy Period”). 

  

	4.	Notwithstanding the provisions of the principal agreement, it is agreed that beginning from February 1, 2005, until the expiration of the tenancy period, ending on
June 30, 2007, rental fees for the premises plus the new area, will be the shekel equivalent of $16.14 (sixteen U.S. dollars and fourteen cents) per month for each square meter of the new area, with linkage differential and VAT, for a total
rent pertaining to the entire area of the premises with the new area, 35,750 dollars per month with linkage differential and lawful VAT. In respect to the new area, rental fees will be paid only from the date of the conveyance thereof.

 Notwithstanding the above it is understood that the tenant will not pay the landlord rental fees for: (1) 19 days in
April, 2005; (2) for the entire month of July, 2005 and half of the month of August, 2005; (3) for the entire month of July, 2006 and half of August 2006 (hereinafter: “Grace Months”). It is understood that the exemption of the
rental fees does not detract from the tenant’s duty to remit the rest of the payments applicable to him pursuant to the principal agreement and this schedule. 
  

	5.	Rental fees for the extended tenancy period shall be the shekel equivalent of $17.14 (seventeen U.S. dollars and fourteen cents) per month for each square meter of the premises and
the new area, with linkage differential and lawful VAT. 

 Notwithstanding the foregoing, the tenant will not pay the landlord
rental fees for the month of July and half of August for each of the years of tenancy included in the extended tenancy period (namely, for the years 2007, 2008 and 2009). It is understood that the exemption of the rental fees does not detract from
the tenant’s obligation to remit the rest of the payments applicable to him for the extended tenancy period pursuant to the principal agreement and this schedule. 
  

 124 

	6.	Notwithstanding the provisions set forth in the principal agreement, it is agreed that from February 1, 2005 until June 30, 2007 the tenant will pay parking fees in the
amount of 140 dollars per month for each entry pass into the parking lot which enables the entrance of one car, with VAT and linkage differential. Parking fees during the extended tenancy period will be as established by the principal agreement and
the discount described above will not apply during the extended period. 

 It is understood that the foregoing shall not detract
from the provisions of section 5 of the schedule to the lease signed on July 1, 2003 regarding the exemption from parking fees for 20 entry passes to the parking lot for the period ending on June 30, 2007 and for this period the tenant
will be required to pay only for 63 entry passes to the parking lot and not for 83 parking passes to the lot which he has at present. 
 It is
understood that for each additional parking pass to the parking lot desired by the tenant, the tenant will pay parking fees as fixed in the principal agreement and not the parking fees as set forth above. 
  

	7.	Rental fees shall be paid by the tenant each month except for the grace months as set forth in section 4 above, by a standing order to his account for the first of every month and
not for each quarter in advance as provided by the principal agreement. 

  

	8.	The parties agree that until the expiration of this tenancy period (to wit, until June 30, 2007) all the terms pertaining to the placement of satellite dishes in the tower,
that have already been placed, shall remain in effect, and no change has been made to them. 

  

	9.	The sums listed above and herein in U.S. dollars shall be translated at the signing of this schedule into new shekels according to the representative rate of the U.S. dollar known
on the date of the signing of this schedule which is NIS 4.32 per dollar and from this day onward, linkage differential shall accrue on this sum. 

 In order to calculate the amount of linkage differential as mentioned in this schedule, the base index shall be the index for January 2005 which is published on February 15, 2005 and not the base index provided
in the principal agreement. 
  

	10.	The landlord will make attrition repairs on the premises (not including the new area) and will paint the area for a total cost of 10,000 dollars including VAT.

  

	11.	In addition to the provisions of section 4 above, the landlord will provide the tenant with a budget of up to 50,000 dollars with VAT for finishing work in the new area and the
premises (hereinafter: “Work Budget”). The work budget will be used only for infrastructure and finishing work on the premises and/or the new area and not for the purchase of any equipment and/or portable items (hereinafter:
“Infrastructure Work”). The infrastructure work will be carried out according to the specifications appended hereto as “Annex A”. 

  

 125 

 The tenant will, at his own expense, carry out, on the premises and/or in the new area, the
infrastructure work. The provisions of section 9 of the lease will apply to the planning and carrying out of the infrastructure work. The tenant will present the landlord with receipts indicating the payments which the tenant remitted to contractors
who carried out the infrastructure work and the landlord will reimburse the tenant for these sums no later than thirty days from the date the landlord was given said receipt by the tenant. 
  

	12.	Insofar as additional spaces larger than 175 square meters on the 37th floor will become available, the landlord will notify the tenant in writing of such in which it will specify the location and size of the space that became available and the date on which the space is expected to be
available (hereinafter: “Available Space”) and the tenant may within 14 days of the date he receives such notice, notify the landlord in writing whether he is interested in leasing the available space or not. If the tenant gives
such notice in writing stating that he is interested in leasing the available space, the available space will be added to the premises and all the provisions of the principal agreement and this schedule will apply to that space, including rental
fees for each square meter of the available space and the tenancy period for the available space and the cost of connecting the space to the existing premises. 

  

	13.	The tenant is also granted the right to lease from the landlord, for his needs and uses, further available space that will not be less than 175 square meters in the triangle tower
and not exceeding gross 700 square meters by giving written notice to the landlord six months in advance. The tenant may deliver such notice to the landlord no later than the expiration of July 31, 2006 (and if the agreement is extended for
another period, then he may deliver such notice no later than July 31, 2009). If the tenant delivered such notice to the landlord the landlord will notify the tenant of the location of available space that it has in the triangle tower, if any
exist, and the size of the spaces, and the tenant will answer the landlord in writing within 14 days of receipt of the landlord’s notice, which of the available spaces he is interested in leasing (hereinafter: “Additional
Areas”). The additional areas will constitute an integral part of the premises and all the provisions of the principal agreement and this schedule shall apply to them, including the amount of rental fees for each square meter of the
additional area and the tenancy period for the additional areas. 

  

	14.	The tenant may advance the termination of the tenancy in respect to sections of the premises in respect to which the total area does not exceed 750 square meters or in respect to
any area of the premises subject to the following: 

  

	 	14.1	If the tenant asks to revoke the tenancy in respect to a section of the premises then such revocation will be done by a written notice to the landlord three months in advance to
which the tenant will attach a blueprint indicating the area to be vacated and its measurements (hereinafter: the “Vacated Area”) and the date on which the area will be vacated which will not be earlier than three months from the
date of delivery of the notice to the landlord. 

  

 126 

 The tenant will return the vacated area to the landlord on the date specified in his notice but not
earlier than three months from the date the notice was delivered to the landlord. The tenant will be responsible to carry out at his expense all the work required to separate the vacated area from the rest of the premises until the date the area is
to be returned to the landlord. All the provisions of the principal agreement relating to the evacuation of the premises and its return to the landlord will apply mutatis mutandis to the vacated area. 
  

	 	14.2	If the tenant wishes to end the tenancy period prior to the expiration of the tenancy period in respect to any space on the premises, then the tenant must deliver written notice of
such to the landlord in which the advanced date for ending the tenancy is specified which as stated will not be before the end of six months from the delivery of a notice to the landlord. 

  

	 	14.3	In the event of an early termination of the tenancy, the tenant will pay a fixed compensation to the landlord to be calculated according to the work budget, which was actually used
by the tenant, the proportionate size of the vacated area out of the entire area of the premises and the time period that is left of the tenancy from the date of the early termination of the tenancy until the end of the tenancy period.

 The formula to calculate the compensation to be paid to the landlord is as follows: 
 A - budget for finishing work 
 B - the
returned area 
 N - the remainder of the tenancy period 
 B - The amount of the compensation owed to the landlord 
 The total tenancy period is 29 months 

The size of the premises, including the new area is 2,215 square meters. 
 B/2,215 x A x N/29 = E 
 For example: If the work budget used is 50 thousand dollars, the
returned area is 750 square meters and the remaining tenancy period from the date the area is returned until the end of the tenancy period is 12 months, then the compensation owed by the tenant will be calculated as follows: 
 750 divided into 2,215 multiplied by 50,000 multiplied by 12 divided by 29 = 7,005 dollars. 
  

	 	14.4	The compensation set forth in section 13.3 shall be paid to the landlord at the end of three months from the date of the delivery of the notice to the landlord, in the event of the
return of a section of the premises and at the end of six months from the delivery of notice to the landlord in the event of the return of the entire premises. 

  

 127 

	15.	The amount of the bank guarantee which the tenant must deliver to the landlord pursuant to the principal agreement will be in the amount of rental fees fixed in section 3 above, for
the premises and the new area for a period of three months, with lawful VAT. The bank guarantee will remain in effect until the expiration of 3 months form the end of the tenancy period. Insofar as the area of the premises expands or decreases in
accordance with the rights conferred upon the tenant to increase or reduce the area of the premises, so too the bank guarantee will be adjusted accordingly. 

  

	16.	The remainder of the provisions of the principal agreement, as long as they have not been expressly amended and/or changed by this schedule shall remain in effect without any
change. 

 In witness the parties set their hand: 
  

					
			
	/s/ Kanit Hashalom Investments Ltd.	 		 	/s/ BigBand Networks Ltd.
        Corporate no. 51-27507-4
	The Landlord	 		 	The Tenant

 Attorney Affirmation 
 I the undersigned, Advocate __________, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr./Ms. __________________ and Mr./Ms.
____________ who signed this agreement and the annexes thereto on behalf of the Company are the authorized signatories of the Company and a resolution to sign this contract was duly accepted by the company. 
  

	
	
	/s/ Dr. Ayal Shenhav
	Advocate

  

 128 

 February 2, 2005 
 Representative rate: NIS 4.393 
 Rent per square meter: NIS 69.95 = $14.92 
 Area of the lease 175 square meters + 2,040 square meters = 2,215 square meters 
 Amount of rent: 
  

	1.	$13.00 per square meter. 

  

	2.	$0.47 per square meter fine spread 

  

	3.	$0.30 per square meter advance discount in rent for 5 months 

  

	4.	$0.35 per square meter discount of parking spaces. 

  

	Total 	$14.12 per square meter 

 One and a half month grace for each year
or alternatively 19 grace days for 5 months of rent raises the rent to $16.14 per square meter. $16.14 per square meter = 10.5 months: 12 months x $14.12 per square meters. 
 Distribution of fine 
 Fine in the amount of a month’s rent - exit fine. 
 $30,440 = NIS 4,393 representative dollar: NIS 65.55 per square
meter x 2,040 square meters of the existing premises. 
 Amount of fine spread $0.47 per square meter = 29 months: 2,215 square meters of the
new area of the premises: $30,440. 
 Advance discount in rent: 
 Advance of 5 months rent from 1.2.2005 until 1.7.2005 
 $19,584 = 2,040 square meters of the existing premises x 5 months x $1.92 discount per square meter = $14.92 - $13 existing rent 
 advance discount on rent $0.30 per square meter = 2,215 square meters of the new premises: 29 months: $19,584 

Discount in parking towards rent: 
 63 parking places - cost of a parking space NIS 668.32 = $152.13 
 (Another 20 parking
spaces for free) 
 Cost of 63 parking spaces in the new period $140 per space. 
 Difference between parking in the preceding period to the new period: $12.13 per space. 
 $22,161.5 = 29 months x 63 parking spots x $12.13 difference of parking between the periods. 
 Parking credit in terms of rent: $0.35 per square meter = 2,215 square meters: 29 months: $22,161.5 amount of discount for parking. 
  

 129 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on September 5, 2005 
 Between 
  

					
		  	 Kanit Hashalom Investments Ltd.
 Corporate
no. 51-163315-8
 Whose address for the purpose of this schedule is:
 Azrieli Center
 132 Derech Petach Tikva Tel-Aviv
 (Hereinafter: the
“Landlord”)
	  	
			
		  		  	As one part
	
	And
			
		  	 BIGBAND NETWORKS LTD.
 Corporate no.
51-275107-4
 (Hereinafter: the “Tenant”)
 Whose address for purposes of this schedule is:
 Azrieli Center 2 Triangle Tower 36th floor
 132 Derech Petach Tikva, Tel-Aviv
 Telephone: 03-6081986 Fax: 03-6081998
	  	
			
		  		  	As the second part

  

			
	Whereas	  	The landlord and the tenant signed a tenancy agreement on March 16, 2000 pertaining to offices in the triangle tower in the Azrieli Center (hereinafter: the “Lease”) and
signed the following schedules to the tenancy agreement: Schedule of October 10, 2000 (hereinafter Schedule A’1) Schedule of February 21, 2002 (hereinafter: “Schedule A’2”), Schedule of April 29, 2002 (hereinafter:
“Schedule A’3”), Schedule of October 28, 2002 (hereinafter: “Schedule A’4”) Schedule of July 1, 2003 (hereinafter: “Schedule A’5”) and Schedule of March 23, 2005 (hereinafter:
“Schedule A’6”) (The lease and Schedules A’1 - A’6 shall be called together hereinafter: the “Principal Agreement”);
		
	Whereas	  	The tenant desires, as specified in section 12 of Schedule A’6 as stated above, to expand the premises described in the Principal Agreement (hereinafter: the “Existing
Premises”), as specified in this schedule herein.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	All the terms and definitions appearing in this schedule shall bear the meanings attributed to them in the principal agreement, unless expressly stated otherwise in this schedule.

  

 130 

	2.	An additional area will be added to the existing premises on the 37th floor consisting of 433 gross square meters, as marked on the blueprints appended as Annex “A” to
this schedule (hereinafter: the “New Area”). Occupancy of the New Area will be conveyed to the tenant no later than September 13, 2005 subject to the terms of the principal agreement and the submission of plans for execution by
the tenant until September 5, 2005. 

 Notwithstanding the above, it is agreed that the landlord may advance the conveyance
date for the new area provided that it notifies the landlord in writing 48 hours in advance. 
 The new area will be conveyed to the tenant in
its condition on the date of conveyance to the tenant except for the modifications that are to be made as specified in section 4 herein, and the landlord will also be doing construction at its expense required in order to physically connect the new
area to the premises located on part of the same floor including connecting the area to the electric meter on the premises (As Is Where Is). It is understood that the landlord will not be asked to do any further work in the new area except what is
stated by the provisions of this schedule. 
  

	3.	The parties agree that beginning from September 13, 2005, the expected conveyance date, until the expiration of the tenancy period, ending as stated on June 30, 2007, the
rental fees for the new area shall be the shekel equivalent of $16.14 (sixteen dollars and fourteen U.S. cents) per month for each square meter of the new area, with linkage differential and VAT. 

 Notwithstanding the above it is understood that the tenant will not pay rental fees for: (1) 6 days in November, 2005; (2) for the entire month
of December, 2005; (3) for the entire month of July, 2006 and half of the month of August, 2006 (hereinafter: “Grace Months”). It is understood that the exemption of the rental fees does not detract from the tenant’s duty to
remit the rest of the payments applicable to him pursuant to the principal agreement and this schedule. To dispel any doubt, it is understood that all the provisions of the principal agreement including Schedule A’6 and this schedule shall
apply to the new area, including pertaining to the tenancy period. 
 Notwithstanding the above, the parties agree that the provisions of
sections 14.3 and 14.4 of Schedule A’6 shall not apply to the new area and the secure rooms (as defined herein) in this schedule, and the landlord shall not make a budget available to the tenant for construction in the new area except for the
work it is doing as specified above and herein in section 4. 
  

	4.	The landlord shall carry out only the following construction in the new area: 

  

	 	1.	Tearing down the walls of the control room located in the laboratory area. 

  

	 	2.	Removal of kitchen cabinets, installation of a standard carpet from the landlord’s inventory instead of the flooring that is there. 

  

	 	3.	Repair of part of the acoustic ceiling in the laboratory area in the new area. 

  

	 	4.	Paint repair in the new area in accordance as decided by the landlord. 

 The landlord will not be asked to do any further work at its expense beyond the work specified above. 
  

 131 

	5.	In addition to the specified area and no later than October 15, 2005, by the giving of 7 days advance written notice to the landlord, the tenant will lease the secure rooms on
the floor consisting of 28 square meters on the 37th floor (hereinafter: the “Secure Rooms”), the entrance
to which is by way of the entrance corridor in the public space as specified on the blueprints appended hereto as Annex A’. 

 Monthly rental fees for each square meter of the secure rooms leased by the tenant to be paid for the tenancy period is the shekel equivalent of $8 U.S. with VAT and linkage differential and the management fees that will be paid by the
tenant per month for each square meter of the secure rooms will be the shekel equivalent of 50% of the management fees paid by the tenant for each square meter of the premises. 
 It is understood that the tenant will accept the secure rooms as they are at the signing of this schedule (AS IS), and the landlord will not be asked to
do any work in the secure rooms except to connect them to the electric meter of the existing premises. To dispel any doubt it is understood that all the provisions of the principal agreement which do not pertain to the amount of rental fees and
management fees, shall apply to the secure rooms, including the tenancy period. 
 The parties agree that the tenant may at any time during
this tenancy period, vacate the secure rooms and return them to the landlord provided that he provides 2 (two months) written notice of such and it is done on the last day of the month in which the tenant wishes to vacate the secure rooms.

  

	6.	The sums specified above in U.S. dollars, pertaining to rental fees for the secure rooms, are to be translated into new shekels at the signing of this schedule, according to the
representative rate of the U.S. dollar at the signing of this schedule which is NIS 4.32 and from this date onward shall be linked to the consumer price index, when the base index for this purpose is the index for the month of January, 2005, which
was published on February 15, 2005. 

  

	7.	In accordance with the provisions of section 15 of Schedule A’6, the tenant commits to provide the landlord at least three days prior to the conveyance of the new area, with a
supplementary bank guarantee, for the duration of the tenancy period, linked to the consumer price index, in an amount equal to rental fees and management fees for the new area and the secure rooms, for three months with VAT. The supplementary bank
guarantee shall remain valid until the expiration of 3 months from the termination date of the tenancy period. 

 The tenant
will revise the insurance policies arranged by him to include the new area and the secure rooms and their size, in accordance with the principal agreement relating to the size of the premises, as of the date of the signing of this schedule, to the
new area and the secure rooms. 
  

	8.	The rest of the provisions of the principal agreement, insofar as they have not been expressly amended and/or changed by this schedule, shall apply without change.

  

 132 

 In witness the parties set their hand 
  

					
			
	/s/ Kanit Hashalom Investments Ltd.	 		 	 /s/ BigBand Networks Ltd.
      Corporate no. 51-27507-4

	The Landlord	 		 	The Tenant

 Attorney Affirmation 
 I the undersigned, Advocate Ayal Shenhav, Advocate, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr. Amir Baran, Roni Oz and
Gadi Farber who signed this agreement and the annexes thereto on behalf of the Company are the authorized signatories of the Company. 
  

	
	
	/s/ Dr. Ayal Shenhav
	 Dr. Ayal Shenhav, Advocate

	 License no. 14945

  

 133 

 BLUEPRINT 
  

 134 

 BANK GUARANTEE 
 130021 
  

			
	GUARANTEE NO. : 804-307500/02-30-0801-003/6	  	Date: 21/09/2005

 To 
 Kanit Hashalom Investments Ltd. 
 Azrieli Center 1 Tel Aviv 67011 
 Guarantee no.: 804-307500/02-30-0801-003/6 
 We hereby guarantee the repayment of any sum until the amount of 127,785.00 one hundred twenty seven thousand and seven hundred eighty five shekels only (hereinafter -
the “Guaranteed Sum”), when it is linked to the index as specified herein, which is owed to you by or which will be owed to you by: 
 Bigband
Networks Ltd. (hereinafter: the “Debtor”) in respect to: 
 Rental of offices 
 For purposes of this guarantee, the term “index” means: the consumer price index including vegetables and fruits published by the Central Bureau of Statistics
and Economic Research including the same index even if published by another government institution and includes any official index that replaces it, whether or not it is constructed from the same data on which the existing index is constructed.

 If it is discovered from the index which was published immediately prior to the payment pursuant to this guarantee - (hereinafter: the “New
Index”), that the new index rose in contrast to the index for the month of July, 2005 that was published on 15/08/2005, which is 102.2 points (hereinafter: - the “Base Index”), then, the guaranteed sum will be calculated after it is
increased by the same rate as the increase of the new index in contrast to the base index (hereinafter: “Increased Guaranteed Sum”). 
 To dispel
any doubt, if it is discovered that the new index is equal or lower to the base index, no change shall be made to the guaranteed sum. 
 We will send you
from time to time, in any event, within 7 days after receipt of your first written demand, any sum within the limit of the Increased Guaranteed Sum without compelling you to base your demand or to first ask for payment from the debtor, provided that
the total sum which we must pay according to all your demands together will not exceed the increased guaranteed sum. 
 This guarantee will be valid until
and inclusive of 01/07/2007 and any demand in respect thereof must be in writing sent to the offices of the branch signed below the address of which is: 
  

			
	 Tel Aviv
	  	 87 A’ Ben Yehuda

 No later than the aforementioned date, during hours when the undersigned branch is open to the public. 

A demand that arrives after the aforementioned date shall not be granted. It is emphasized that “written demand” as stated above, does not include a demand
that arrives at the bank through a fax, telegram or other electronic means which shall not be considered a “demand” in accordance with this instrument of guarantee. If this guarantee is issued in favor of two or more, then any payment in
accordance thereof shall be made to everyone together. 
 This guarantee is non transferable. 
  

	
	
	 Respectfully,

	 Bank Leumi of Israel, Ltd.

  

 135 

 AZRIELI CENTER 
 SCHEDULE TO A LEASE AGREEMENT 
 Entered into in Tel-Aviv on December 11, 2005 
 Between 
  

					
		  	 Kanit Hashalom Investments Limited
 Corporate no. 51-163315-8
 Whose address for the purpose of this schedule is:
 Azrieli Center
 132 Derech Petach Tikva Tel-Aviv
 (Hereinafter: the “Landlord”)
	  	
			
		  		  	As one part
	
	And
			
		  	 BIGBAND NETWORKS LTD.
 Corporate no. 51-275107-4
 (Hereinafter: the “Tenant”)
 Whose address for purposes of this schedule
is:
 Azrieli Center 2 Triangle Tower 36th floor
 132 Derech Petach
Tikva, Tel-Aviv
 Telephone: 03-6081986 Fax: 03-6081998
	  	
			
		  		  	As the second part

  

			
	Whereas	  	The landlord and the tenant signed a lease on March 16, 2000 pertaining to offices in the triangle tower in the Azrieli Center (hereinafter: the “Lease”) and signed the
following schedules to the lease: Schedule of October 10, 2000 (hereinafter Schedule A’1) Schedule of February 21, 2002 (hereinafter: “Schedule A’2”), Schedule of April 29, 2002 (hereinafter: “Schedule
A’3”), Schedule of October 28, 2002 (hereinafter: “Schedule A’4”) Schedule of July 1, 2003 (hereinafter: “Schedule A’5”) and Schedule of March 23, 2005 (hereinafter: “Schedule
A’6”) and Schedule of September 5 2005 (hereinafter: “Schedule A’6”) (The lease and Schedules A’1 – A’7 shall be called together hereinafter: the “Principal Agreement”);
		
	Whereas	  	The tenant desires, as specified in section 12 of Schedule A’6 as stated above, to expand the size of the premises of the Principal Agreement (hereinafter: the “Existing
Premises”), as specified in this schedule herein.

 Therefore it is declared, stipulated and agreed among the parties as follows: 

 

	1.	All the terms and definitions appearing in this schedule shall bear the meanings attributed to them in the principal agreement, unless expressly stated otherwise in this schedule.

  

 136 

	2.	An additional area will be added to the existing premises on the 37 floor consisting of 212 gross square meters, as marked on the blueprints appended as Annex “A” of this
schedule (hereinafter: the “New Area”). Occupancy of the New Area consisting of 65 square meters (hereinafter: “Area A’”) will be conveyed to the tenant on December 18, 2005 as specified in the appended blueprint, and
the projected date for the conveyance of the rest of the area consisting of 147 square meters (hereinafter: “Area B’”) is January 15, 2006. 

 The new area will be conveyed to the tenant in its condition AS IS on the date of the signing of this agreement except for the adjustments that are to be
made as specified in section 4 herein, As Is Where Is. It is understood that the landlord will not be asked to do any work in the new area except what is stated by the provisions of this schedule. 
  

	3.	Beginning from the expected conveyance date until the expiration of the tenancy period, ending on June 30, 2007, rental fees for the new area will be the shekel equivalent of
$16.14 (sixteen U.S. dollars and fourteen cents) for each month for every square meter of the new area with linkage differential and VAT. 

 Notwithstanding the foregoing, the tenant will not pay the landlord rental fees for: (1) the entire month of January 2006; (2) the entire month of July, 2006; (3) five days in August, 2006 (hereinafter:
the “Grace Months”). It is understood that the exemption of the rental fees does not detract from the tenant’s duty to remit the rest of the payments applicable to him pursuant to the principal agreement and this schedule. To dispel
any doubt, it is understood that all the provisions of the principal agreement including Schedule A’6 and this schedule shall apply to the new area, including pertaining to the tenancy period. 
 Notwithstanding the above, the parties agree that the provisions of sections 14.3 and 14.4 of Schedule A’6 shall not apply to the new area in this
schedule, and the landlord shall not make a budget available to the tenant for construction to the new area except for the work it is doing as specified above and herein in section 4. 
  

	4.	The landlord shall carry out only the following work in the new area: 

  

	 	1.	Demolition of a plasterboard wall in the southern west side separating the existing premises and Area A’, in order to physically connect and create a continuation between the
existing premises and the new Area A’. 

  

	 	2.	Paint repair in the new area as decided by the landlord. 

  

	 	3.	Connecting the new area to the electric meter of the premises. 

 Upon placement of the reception station as specified in Annex A’ on 65 square meters of the new area, the following work will be carried out: 
  

	 	1.	Dismantling the reception station and plaster wall behind the reception desk. 

  

	 	2.	Building a plaster wall along the side of the triangle so that two offices will be created. 

  

	 	3.	Installation of two doors to the rooms. 

  

 137 

	 	4.	Installation of a work station (electricity, telephone, computer) in each room. 

  

	 	5.	Dismantling the existing floor in the rooms and placing a standard carpet according to Annex C’ of the agreement, from the existing inventory of the landlord’s.

 The landlord will not be asked to do any further work at its own expense beyond the work specified above. 
  

	6.	The sums specified above in U.S. dollars, pertaining to rental fees for the secure rooms, are to be translated into new shekels at the signing of this schedule, according to the
representative rate of the U.S. dollar at the signing of this schedule which is NIS 4.32 and from this date onward shall be linked to the consumer price index, when the base index for this purpose is the index for the month of January, 2005, which
was published on February 15, 2005. 

  

	7.	In accordance with the provisions of section 15 of Schedule A’6, the tenant commits to provide the landlord at least three days prior to the conveyance of the new area, with a
supplementary bank guarantee, for the duration of the tenancy period, linked to the consumer price index, in an amount equal to rental fees and management fees for the new area and the secure rooms, for three months with VAT. The supplementary bank
guarantee shall remain valid until the expiration of 3 months from the termination date of the tenancy period. 

 The tenant
will revise the insurance policies arranged by him to include the new area and the secure rooms and their size, and in accordance with the principal agreement relating to the size of the premises, as of the date of the signing of this schedule, to
the new area and the secure rooms. 
  

	8.	The rest of the provisions of the principal agreement, insofar as they have not been expressly amended and/or changed in this schedule, shall apply without change.

 In witness the parties set their hand 
  

					
			
	/s/ Kanit Hashalom Investments Ltd.	 		 	 /s/ BigBand Networks Ltd.
      Corporate no. 51-27507-4

	The Landlord	 		 	The Tenant

 Attorney Affirmation 
 I the undersigned, Advocate Ayal Shenhav, who serves as legal advisor of BIGBAND NETWORKS, LTD corporate no. 51-275107-4 (hereinafter: the “Company”) affirm that Mr. Amir Baran, Ashkenazi and Mssrs.
Roni Oz and Gadi Farber who signed this agreement and the annexes thereto on behalf of the Company are the authorized signatories of the Company. 
  

	
	
	   
	 Dr. Ayal Shenhav, Advocate

	 License no. 14945

  

 138 

 Azrieli Center 
 Annex to Lease Agreement 
 Entered into and signed in Tel-Aviv on the
         of the month of August, 2006 
  

					
		  	 Between
 Kanit
Hashalom Investments Ltd.
 Priv.Co. 8-163315-51
 Whose address for the purpose of this Annex is:
 The Azrieli Center,
 132, Derech Petach Tikva, Tel-Aviv
 (hereinafter - “the
Lessor”)
	  	
		  		  	of the first part
		  	And	  	
		  	 Bigband Networks Ltd.
 Priv.Co.
4-275107-51
 (hereinafter - “the Lessee”)
 Whose address for the purpose of this Annex is:
 2, Azzrieli Center,
 The Azrieli Triangular, 36th Floor
 132, Derech Petach Tikva,
Tel-Aviv
 Telephone: 03-6061986. Fax: 03-6081998
	  	
		  		  	of the second part

  

			
	 Whereas between
	  	the Lessor and the Lessee, a Lease Agreement was executed on March 16, 2000 in respect of office areas in the Azrieli Triangular in the Azrieli Center (hereinafter - “the Lease
Agreement”) and also the following annexes to the Lease Agreement were executed: Annex dated October 10, 2000 (hereinafter - Annex “A1”), Annex dated February 21, 2002 (hereinafter - Annex “A2”), Annex dated April 29, 2002
(hereinafter - Annex “A3”), Annex dated October 28, 2002 (hereinafter - Annex “A4”), Annex dated July 1, 2003 (hereinafter - Annex “A5”), Annex dated March 23, 2005 (hereinafter - Annex “A6”), Annex dated
September 5, 2005 (hereinafter - Annex “A7”), and Annex dated December 11, 2005 (hereinafter - Annex “A8”). (The Lease Agreement and all the Annexes A1 - A8 thereto) will hereinafter be collectively referred to as - “the
Main Agreement”);
		
	 And whereas
	  	the Lessee is desirous of increasing the leased area under the Main Agreement (hereinafter - “the Existing Leased Area”, all as specified in this Annex below;

 Now, therefore, it has been declared, stipulated and agreed between the parties as follows:

  

	1.	All the terms and definitions appearing in this Annex shall have the same meaning as in the Main Agreement unless otherwise expressly specified in this Annex. (This Agreement shall
be deemed as a part of the Main Agreement and 

 all the conditions therein shall apply thereto, unless otherwise stated
expressly in this Annex. 

	2.	There shall be added to the Existing Leased Area an additional area on the 34th floor, comprising a gross area of 686 sq.m. as marked in the diagram attached as Annex “A”
to this Annex (hereinafter - “the Added Area”), as from September 26, 2006. The payment to be made under the Lease Agreement in respect of the Added Area shall be made as from the date of the Lessee’s actual entry into the Premises
(following the performance of the required adjustments by it), but not later than October 3, 2006. 

 The Added Area shall be
delivered to the Lessee As Is on the date of execution of this Agreement, As Is Where is, except for the office equipment placed in the Added Area and the laboratory equipment which is not mentioned in Annex “B” hereto attached. It is
expressly stated that the Lessor shall not be required to perform any works whatsoever in the Added Area except for the separation of the Added Area from the remaining area on the floor, separation of electricity and a passage opening up to a fire
door in accordance with the marking appearing in diagram A. it is expressly stated that all the construction and adjustment works of any class whatsoever except the works specified in this clause above, shall be made by and at the cost of the Lessee
pursuant to the provisions of the Lease Agreement. It is further agreed between the parties that insofar as the Lessee exercises the option granted to him of the extension of the Agreement (as hereinafter specified) in respect of the Added Area, the
Lessor will consider and examine the possibility of refunding the Lessee’s expenses for the performance of the adjustment works required by the Lessee in the Added Area (construction and infrastructure works only) up to an amount of 17,500 USA
dollars and against the presentation of the tax invoices paid by the Lessee for the performance of such works. 
  

	3.	The Lessee hereby receives from the Lessor a right of use without consideration of the existing equipment and instruments in the laboratory area placed in the Added Area, including
2 Libert air-conditioners, the air passage on the roof of the building, water pipelines, and all the equipment specified in Annex “B” to this Annex. It is expressly stated and agreed that the Lessor is not liable for the regularity of the
equipment and instruments and that the Lessee shall bear throughout the Period of Lease the cost of the maintenance and guarding thereof and shall upon the termination of the Period of Lease restore the equipment and the items in the condition in
which they were delivered thereto by the Lessor on the date of execution of this Annex, except for natural and reasonable wear and tear. The Lessee hereby declares that it has examined the equipment and tools and found same regular, in order and fit
for operation and to its satisfaction. 

  

	4.	It is agreed between the parties that as from the estimated date of delivery of possession of the Added Area, to the end of the Period of Lease, ending on June 30, 2007, the rent
for the Added Area shall be an amount in NIS equal to $ 16.5 (sixteen USA dollars and fifty cents) a month per sq.m. of the Added Area, with the addition of linkage differentials and Value Added Tax. 

  

	5.	It is agreed that the amounts stated above in USA dollars relating to the rent for the Added Area shall be translated into NIS pursuant to the provisions of clause 9 of Annex
“A6”. 

	6.	Notwithstanding the provisions in the Main Agreement, it is expressly stated and agreed between the parties that the clauses of Annex “A6” which deal with the amount of
the rent and the amount of the rent in the extended Period of Lease (part of clause 13) shall not apply in connection with the Added Area. Moreover, before the termination of the first Period of Lease ending on June 30, 2007, the Lessee may not
restore to the Lessor the Added Area and/or any part thereof as specified in clause 14 to Annex “A6”. It is further agreed that the Lessee is hereby given the option in respect of the Added Area, to extend the Period of Lease for a further
period beyond the termination of this Period of Lease (namely, beyond June 30, 2007), for one additional successive period of 36 months, commencing on July 1, 2007 and terminating on June 30, 2010) at the rent as specified in this Annex (clause 4
above). 

  

	7.	Clause 22.7 of the Lease Agreement shall be replaced by the following clause: “If the Lessee is a corporation incorporated as a company and/or incorporated as a partnership,
whether registered or not, the Lessee agrees that insofar as the control therein and/or in the partnership is transferred to another person and/or corporation, the Lessor shall be entitled within 60 days of the receipt of a written notice of the
transfer of the control and/or the replacement and/or addition of a partner as aforesaid, to terminate the Main Agreement and this Annex by delivery of a 6 months’ prior written notice to the Lessee on reasonable grounds emanating from the
identity of the new holder of control. 

  

	8.	Pursuant to the provisions in clause 15 of Annex “A6”, the Lessee undertakes to present to the Lessor within 3 days at least before the date of delivery of the Added Area,
a supplementary bank guarantee for the duration of the Period of Lease, linked to the Consumer’s Price Index, in an amount equal to the rent and the management fee for the Added Area, for three months, with the addition of due Value Added Tax.
The supplementary bank guarantee as aforesaid, shall remain in force until the end of 3 months from the termination of the Period of Lease. 

 It is further expressly stated that the Lessee shall update the insurance taken out by him to be adjusted to the Added Area and the size thereof and pursuant to the provisions of the Main Agreement at the ratio of the
area of the Premises, as of the date of execution of this Annex, to the Added Area. 
  

	9.	All the other provisions of the Main Agreement shall apply without any change, so long as they are not amended and/or modified expressly in this Annex. 

 In witness whereof, the parties hereto have hereunto set their hand: 
  

					
	/s/ Fred Ball	  		  	/s/ Kanit Hashalom Investments Ltd.
	Lessor	  		  	Lessee

 Advocate’s Certification 
 I, the undersigned, advocate Dr. Ayal Shenhav, acting as legal adviser to BigBand Networks Ltd., Priv.Co. 51-275107-4 (hereinafter - “the Company”), hereby certify that Mr. Uri Levy and Fred Ball who signed
this Agreement and the Annexes in the name of the Company, are authorized signors to sign on its behalf and that a resolution was duly adopted by the Company to enter into this Agreement. 
  

	
	
	/s/ Dr. Ayal ShenhavLoan and Security Agreement - Silicon Valley Bank

 Exhibit 10.22 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this
“Agreement”) dated as of the Effective Date between SILICON VALLEY BANK, a California corporation (“Bank”), and BIGBAND NETWORKS, INC., a Delaware corporation (“Parent” and a
“Borrower”), and BIGBAND NETWORKS BAS, INC., a Delaware corporation (“BAS” and a “Borrower” and collectively with Parent “Borrowers”), provides the terms on which Bank shall
lend to Borrowers and Borrowers shall repay Bank. The parties agree as follows: 
 1 ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized
terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are
defined therein. 
 2 LOAN AND TERMS OF PAYMENT 
 2.1 Promise to Pay. Borrowers hereby jointly and severally unconditionally promise to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and
when due in accordance with this Agreement. 
 2.1.1 Revolving Advances. 
 (a) Availability. Subject to the terms and conditions of this Agreement, Bank shall make Advances not exceeding the Availability
Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b) Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all
Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 
 2.1.2 Letters of Credit Sublimit. 
 (a) As part of the Revolving Line, Bank shall issue or have issued
Letters of Credit for a Borrower’s account. The face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed the Availability Amount. Such aggregate amounts
utilized hereunder shall at all times reduce the amount otherwise available for Advances under the Revolving Line. If, on the Revolving Maturity Date, there are any outstanding Letters of Credit, then on such date Borrowers are jointly and severally
obligated to provide to Bank cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business
judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s standard
Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrowers jointly and severally agree to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request.
Borrowers further jointly and severally agree to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for a Borrower’s account or by Bank’s interpretations of any Letter of
Credit issued by Bank for a Borrower’s account, and each Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following a Borrower’s instructions or
those contained in the Letters of Credit or any modifications, amendments, or supplements thereto. 
 (b) The obligation of
Borrowers to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the
Letter of Credit Application. 
 (c) A Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency.
If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an 

 
Advance to Borrowers of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in
Dollars at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 (d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency,
Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be
adjusted by Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains
outstanding. 
 2.1.3 Foreign Exchange Sublimit. As part of the Revolving Line, Borrowers may enter into foreign exchange
contracts with Bank under which Borrowers jointly and severally commit to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement
Date”). FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum
aggregate amount equal to the Revolving Line Limit (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX Reserve. 
 2.1.4 Cash Management Services Sublimit. Borrowers may use up to the Revolving Line Limit (the “Cash Management Services
Sublimit”) of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management
services agreements (collectively, the “Cash Management Services”). Any amounts Bank pays on behalf of a Borrower or any amounts that are not paid by Borrowers for any Cash Management Services will be treated as Advances under the
Revolving Line and will accrue interest at the interest rate applicable to Advances. 
 2.1.5 Term Loan. 
 (a) Availability. Bank shall make one (1) term loan available to Borrowers in an amount up to the Term Loan Amount on or not
later than thirty (30) days after the Effective Date subject to the satisfaction of the terms and conditions of this Agreement. 
 (b) Repayment. Borrowers shall be jointly and severally obligated to repay the Term Loan in twenty-four (24) equal installments of principal (the “Term Loan Payment”). Beginning on the
last Business Day of the month following the first anniversary of the month in which the Funding Date occurs, each Term Loan Payment shall be payable on the last of each month. Borrowers’ final Term Loan Payment, due on the Term Loan Maturity
Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan. 
 (c) Prepayment.
At Borrowers’ option, so long as an Event of Default has not occurred and is not continuing, Borrowers shall have the option, at any time and from time to time, to prepay all or not less than 25% of the Term Loan Amount advanced by Bank under
this Agreement, without premium or penalty, provided Borrowers (a) provide written notice to Bank of their election to exercise to prepay the Term Loan at least three (3) days prior to such prepayment, and (b) pay, on the date
of the prepayment (i) all accrued and unpaid interest with respect to the Term Loan through the date the prepayment is made; (ii) all unpaid principal with respect to the Term Loan; and (iii) all other sums, if any, that shall have
become due and payable hereunder with respect to this Agreement. 
 2.2 Overadvances. If, at any time, the Credit Extensions
under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceed the lesser of either (a) the Revolving Line or (b) the Borrowing Base, Borrowers shall be jointly and severally obligated to immediately pay to Bank in cash such excess. 
  

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 2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. 
 (i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be
payable monthly in accordance with Section 2.3(f) below; provided, however, that during each Adjustment Period, interest shall accrue at a floating per annum rate equal to one and one half percentage point above the Prime Rate.

 (ii) Term Loan. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue
interest at a floating per annum rate equal to one quarter of one percentage point above the Prime Rate, which interest shall be payable monthly; provided, however, that during each Adjustment Period, interest shall accrue at a
floating per annum rate equal to one and one half percentage point above the Prime Rate. 
 (b) Default Rate.
Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points above the rate effective immediately before the Event of Default (the
“Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise
prejudice or limit any rights or remedies of Bank. 
 (c) Adjustment to Interest Rate. Changes to the interest rate of
any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. 
 (d) 360-Day Year. Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed. 
 (e) Debit of Accounts. Bank may debit any of either Borrower’s deposit accounts, including the Designated Deposit Account, for
principal and interest payments or any other amounts Borrowers owe Bank when due. These debits shall not constitute a set-off. 
 (f) Payments. Unless otherwise provided, interest is payable monthly on the last Business Day of each month. Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of
business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue. Bank’s receipt of any check or
other item of payment shall be immediately applied to conditionally reduce the Obligations but shall not be considered a payment on account until three (3) Business Days after the date that such check or other payment item is received by Bank.
Bank’s receipt of any wire transfer shall be considered a payment on account and shall be immediately applied to reduce the Obligations. 
 (g) Lockbox Account. Borrowers shall cause all payments with respect to the Accounts to be made to the lockbox account at the Bank (the “Lockbox Account”). During an Adjustment Period, cash
collections and deposits to the Lockbox Account will be directed daily to a cash collateral account under Bank’s control, and Bank shall apply the funds in such cash collateral account to reduce the Obligations. After all the Obligations are so
satisfied, any remaining funds in such cash collateral account shall be directed to the Designated Deposit Account. 
 2.4 Fees.
Borrowers are jointly and severally obligated to pay to Bank: 
 (a) Commitment Fee. A fully earned,
non-refundable commitment fee of $105,000, on the Effective Date ($50,000 of which Borrowers paid as the good faith deposit) and a fully earned, non-refundable annual facility fee equal to one half of one percent (0.50%) of the Revolving Line, due
on each anniversary of the Effective Date; 
 (b) Collateral Handling Fee. A collateral handling fee (the
“Collateral Handling Fee”) on the last Business Day of each month, which shall be fully-earned and non-refundable on such date. The Collateral Handling Fee for each month shall be $2,000, unless the Adjusted Quick Ratio for
immediately preceding month is less than 1.15 to 1.00, in which case it shall be $4,000; provided, however, that the Collateral Handling Fee shall not be due and payable in any month if average outstanding Advances for the immediately
preceding month was $2,000,000 or greater; 
  

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 (c) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance
or renewal of Letters of Credit, including, without limitation, a Letter of Credit Fee of one percent (1.00%) per annum of the face amount of each Letter of Credit issued, upon the issuance, each anniversary of the issuance, and the renewal of
such Letter of Credit; 
 (d) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility
Fee”), payable quarterly, in arrears and fully-earned, on a calendar year basis, in an amount equal to 0.15% per annum of the average unused portion of the Revolving Line, as determined by Bank, if the Revolving Line principal
outstanding was zero on any day during the preceding quarter; 
 (e) Termination Fee. A fee (the “Termination
Fee”) of (i) three quarters of one percent (0.75%) of the Revolving Line Amount if the Revolving Line is terminated by Borrowers for any reason or no reason prior to the first anniversary of the Effective Date, and (ii) one half
of one percent (0.50%) of the Revolving Line Amount if the Revolving Line is terminated by Borrowers for any reason or no reason on or after the first anniversary of the Effective Date; provided, however, that the Termination Fee shall
not be due and payable if Borrowers enter into a new credit facility with Bank concurrent with the termination of the Revolving Line; and 
 (f) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses, plus expenses, for documentation and negotiation of this Agreement) incurred through and after the Effective Date,
when due. 
 3 CONDITIONS OF LOANS 
 3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and
substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Each Borrower shall have delivered duly executed original signatures to the Loan Documents to which it is a party; 
 (b) Each Borrower shall have delivered duly executed original signatures to the Control Agreements; 
 (c) Each Borrower shall have delivered its Operating Documents and a good standing certificate of such Borrower certified by the Secretary
of State of the State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (d) Each
Borrower shall have delivered duly executed original signatures to the completed Borrowing Resolutions for such Borrower; 
 (e) Borrowers shall have delivered payoff letters from Horizon Technology Funding Company LLC and ADC Telecommunications Inc.; 
 (f) Borrowers shall have delivered evidence that (i) the Liens securing Indebtedness owed by Borrower to Horizon Technology Funding Company LLC and ADC Telecommunications Inc. will be terminated and (ii) the
documents and/or filings evidencing the perfection of such Liens, including without limitation any financing statements and/or control agreements, have or will, concurrently with the initial Credit Extension, be terminated. 
 (g) Bank shall have received certified copies, dated as of a recent date, of financing statement searches, as Bank shall request,
accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be
terminated or released; 
 (h) Borrowers shall have delivered the Perfection Certificates executed by Borrowers; 

 

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 (i) Borrowers shall have delivered a landlord’s consent executed by the landlords
for Borrowers’ Redwood City and Westborough locations, in favor of Bank; 
 (j) Borrowers shall have delivered a legal
opinion of Borrower’s counsel dated as of the Effective Date together with the duly executed original signatures thereto; 
 (k) Borrower shall have delivered evidence satisfactory to Bank that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured
clauses or endorsements in favor of Bank; and 
 (l) Borrowers shall have paid the fees and Bank Expenses then due as
specified in Section 2.4 hereof. 
 3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make
each Credit Extension, including the initial Credit Extension, is subject to the following: 
 (a) except as otherwise
provided in Section 3.4, if the Credit Extension is an Advance, or a Term Loan, timely receipt of an executed Payment/Advance Form; 
 (b) the representations and warranties in Section 5 shall be true in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided,
however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension
is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; and 
 (c) in Bank’s sole discretion, there has not been a Material Adverse
Change. 
 3.3 Covenant to Deliver. 
 Borrowers jointly and severally agree to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any Credit Extension. Borrowers expressly jointly and severally agree that the
extension of a Credit Extension prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrowers’ obligation to deliver such item, and any such extension in the absence of a required item shall be in Bank’s
sole discretion. 
 3.4 Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making
of an Advance set forth in this Agreement, to obtain an Advance (other than Advances under Sections 2.1.2 or 2.1.4), Borrowers shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific
time on the Funding Date of the Advance. Together with any such electronic or facsimile notification, Borrowers shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her
designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on
instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. 
  

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 4 CREATION OF SECURITY INTEREST 
 4.1 Grant of Security Interest. Each Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a
continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrowers jointly and severally represent, warrant, and covenant that
the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement).
If a Borrower shall acquire a commercial tort claim, Borrowers shall promptly notify Bank in a writing signed by Borrowers of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all
upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 
 If this Agreement is
terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to
make Credit Extensions has terminated, Bank shall, at Borrowers’ sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower. 
 4.2 Authorization to File Financing Statements. Borrowers hereby authorize Bank to file financing statements, without notice to Borrowers,
with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder. 
 5 REPRESENTATIONS AND
WARRANTIES 
 Borrowers jointly and severally represent and warrant as follows: 
 5.1 Due Organization and Authorization. Borrowers and each of their Subsidiaries are duly existing and in good standing in their respective
jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified except where the failure to
do so could not reasonably be expected to have a material adverse effect on Borrowers’ business. In connection with this Agreement, Borrowers have delivered to Bank completed certificates substantially in the form attached hereto as Exhibit
F, signed by Borrowers, entitled “Perfection Certificate”. Borrowers jointly and severally represent and warrant to Bank that (a) each Borrower’s exact legal name is that indicated on such Borrower’s Perfection
Certificate and on the signature page hereof; (b) each Borrower is an organization of the type and is organized in the jurisdiction set forth in such Borrower’s Perfection Certificate; (c) each Borrower’s Perfection Certificate
accurately sets forth such Borrower’s organizational identification number or accurately states that such Borrower has none; (d) each Borrower’s Perfection Certificate accurately sets forth such Borrower’s place of business, or,
if more than one, its chief executive office as well as such Borrower’s mailing address (if different than its chief executive office); (e) neither Borrower (nor any of its predecessors) has, in the past five (5) years, changed its
state of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on each Borrower’s Perfection Certificate pertaining to such Borrower and each of its
Subsidiaries is accurate and complete. If a Borrower is not now a Registered Organization but later becomes one, such Borrower shall promptly notify Bank of such occurrence and provide Bank with such Borrower’s organizational identification
number. 
 The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with either
Borrower’s organizational documents, nor constitute an event of default under any material agreement by which either Borrower is bound. Neither Borrower is in default under any agreement to which it is a party or by which it is bound in which
the default could reasonably be expected have a material adverse effect on such Borrower’s business. 
 5.2 Collateral.
Each Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Neither Borrower has deposit accounts
other than the deposit accounts with Bank, the deposit accounts, if any, described in such Borrower’s Perfection Certificate delivered to Bank in connection herewith, or of which such Borrower has given Bank notice and taken such actions as are
necessary to give Bank a perfected security interest therein. The Accounts are bona fide, existing obligations of the Account Debtors. 
 Except as otherwise permitted by this Section 5.2, the Collateral is not in the possession of any third party bailee (such as a warehouse but excluding customers of Borrowers). Except as hereafter disclosed to the Bank in writing by
Borrowers, none of the components of the Collateral shall be maintained at locations other than as 

  

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provided in the Perfection Certificates (except that Collateral may be maintained at customer locations in the ordinary course of business). A Borrower may
maintain Inventory and Equipment with third parties provided that the value of such Inventory and Equipment does not exceed $250,000 in aggregate at any time (not including Inventory and Equipment at customer locations in the ordinary course of
business). 
 Each Borrower is the sole owner of its intellectual property, except for non-exclusive licenses granted to its customers in the
ordinary course of business. Each patent is valid and enforceable, and no part of the intellectual property has been judged invalid or unenforceable, in whole or in part, and to the best of Borrowers’ knowledge, no claim has been made that any
part of the intellectual property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.3 Accounts Receivable. For any Eligible Account, Eligible Foreign Account and Eligible Special Account in any Borrowing Base Certificate,
all statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Eligible Accounts, Eligible Foreign Accounts and Eligible Special Accounts are and shall be true and correct and all such
invoices, instruments and other documents, and all of Borrowers’ Books are genuine and in all respects what they purport to be. All sales and other transactions underlying or giving rise to each Eligible Account, Eligible Foreign Account and
Eligible Special Account shall comply in all material respects with all applicable laws and governmental rules and regulations. Borrowers have no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are an
Eligible Account, Eligible Foreign Account or Eligible Special Account in any Borrowing Base Certificate. To the best of Borrowers’ knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all
Eligible Accounts, Eligible Foreign Accounts and Eligible Special Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 
 5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or
against either Borrower or any of its Subsidiaries that could reasonably be expected to result in damages that exceed insurance coverage by more than $500,000. 
 5.5 Financial Statements. All consolidated financial statements of Parent and its Subsidiaries delivered to Bank fairly present in all material respects Parent’s consolidated financial condition and
Parent’s consolidated results of operations (subject to normal year-end adjustment in the case of unaudited financial statements). 
 5.6 Solvency. The fair salable value of each Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; neither Borrower is left with unreasonably small capital after the
transactions in this Agreement; and each Borrower is able to pay its debts (including trade debts) as they mature. 
 5.7
Regulatory Compliance. Neither Borrower is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act. Neither Borrower is engaged as one of its important
activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Each Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower has violated any
laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of either Borrower’s or any of its Subsidiaries’ properties or assets has been used by such Borrower or
any such Subsidiary or, to the best of Borrowers’ knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Each Borrower and each of its Subsidiaries have obtained
all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted. 
 5.8 Subsidiaries; Investments. Neither Borrower owns any stock, partnership interest or other equity securities except for Permitted
Investments. 
 5.9 Tax Returns and Payments; Pension Contributions. Each Borrower, or Parent on behalf of such Borrower, has
timely filed all required tax returns and reports, and each Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by such Borrower. A Borrower may defer payment of any contested taxes,
provided that Parent or such Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any
material development in, the proceedings, (c) posts bonds or takes any 

  

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other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a
“Permitted Lien”. Borrowers are unaware of any claims or adjustments proposed for any of either Borrower’s prior tax years which could result in additional taxes becoming due and payable by either Borrower. Each Borrower has paid all
amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower has withdrawn from participation in, and has not permitted partial or complete termination of, or
permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any material liability of either Borrower, including any material liability to the Pension Benefit Guaranty Corporation or its
successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrowers shall use the proceeds of the Credit Extensions
solely as working capital, to repay the Indebtedness owed to Horizon Technology Funding Company LLC and ADC Telecommunications Inc. and to fund their general business requirements and not for personal, family, household or agricultural purposes.

 5.11 Full Disclosure. No written representation, warranty or other statement of either Borrower in any certificate or
written statement given to Bank, as of the date such representations, warranties, or other statements were made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrowers in good faith and based upon
reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
 6 AFFIRMATIVE COVENANTS 
 Each
Borrower shall do all of the following: 
 6.1 Government Compliance. Except as is permitted under Section 7.3 and except
to the extent that a liquidation of a Subsidiary would result in another Subsidiary owning such Subsidiary’s assets, maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation
and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on such Borrower’s business or operations. Such Borrower shall comply, and have each of its
Subsidiaries comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on either Borrower’s business. 
 6.2 Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) as soon as available, but no later than thirty (30) days after the last day of each month, a company
prepared consolidated balance sheet as of the end of such period and income statement covering the consolidated operations of Parent and its Subsidiaries during the period certified by a Responsible Officer and in a form reasonably acceptable to
Bank; (ii) as soon as available, but no later than thirty (30) days after the last day of each fiscal quarter, a company prepared consolidated and consolidating balance sheet as of the end of such period and income statement covering the
consolidated operations and Parent and its Subsidiaries during the period certified by a Responsible Officer and in a form reasonably acceptable to Bank; (iii) as soon as available, but no later than one hundred eighty (180) days after the
last day of Parent’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm
acceptable to Bank in its reasonable discretion, or in the event that a Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, a link thereto on such Borrower’s or another website on the
Internet, and a duly completed Compliance Certificate signed by a Responsible Officer; (iv) within five (5) days of delivery, copies of all statements, reports and notices made available to either Borrower’s security holders or to any
holders of Subordinated Debtor, in the event that a Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, a link thereto on such Borrower’s or another website on the Internet; (v) in
the event that a Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities 

  

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and Exchange Commission or a link thereto on Borrower’s or another website on the Internet; (vi) a prompt report of any legal actions pending or,
to the knowledge of either Borrower’s Board or General Counsel, threatened in writing against a Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs (not covered by insurance) to either Borrower or
any of its Subsidiaries of One Million Dollars ($1,000,000) or more; (vii) Board approved financial projections for Borrowers for each fiscal year, within thirty (30) days of the Board’s approval thereof; (viii) prompt notice of
an event that materially and adversely affects the value of the intellectual property; and (ix) budgets, sales projections, operating plans and other financial information reasonably requested by Bank, to the extent that Borrowers prepare such
information in the ordinary course of business. 
 (b) Within thirty (30) days after the last day of each month, deliver
to Bank a duly completed Borrowing Base Certificate signed by a Responsible Officer, with (i) aged listings of accounts receivable and accounts payable (by invoice date) and (ii) perpetual inventory reports for the Inventory
valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP) or such other inventory reports as are requested by Bank in its good faith business judgment. 
 (c) Within thirty (30) days after the last day of each month, deliver to Bank with the monthly financial statements, a duly completed
Compliance Certificate signed by a Responsible Officer setting forth calculations showing compliance with the financial covenant set forth in this Agreement and the Adjusted Quick Ratio as of the last day of such month. 
 (d) during an Adjustment Period, a weekly transaction report of sales, credit memos and other collateral adjustments. During an Adjustment
Period, such transaction report shall also be delivered in connection with each request for a Credit Extension; provided, however, that Borrowers may elect, upon thirty (30) days notice to Bank, to deliver transaction reports on a
monthly basis while no Advances are outstanding under the Revolving Line. 
 (e) Allow Bank to audit Borrower’s
Collateral at Borrower’s expense. Such audits shall be conducted no more often than once every six (6) months unless (i) a Default or an Event of Default has occurred and is continuing, or (ii) if Bank believes there has been a
deterioration in the Collateral or the Borrowers’ financial performance at any time during an Adjustment Period. 
 6.3
Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between each Borrower and its Account Debtors shall follow such Borrower’s customary practices as they exist at
the Effective Date or as are disclosed to Bank from time to time. Borrowers must promptly notify Bank of all returns, recoveries, disputes and claims that involve the greater of (i) Five Hundred Thousand Dollars ($500,000) or (ii) five
percent (5%) of the amount of the invoice with respect to which the return, recovery, dispute or claim relates. 
 6.4 Taxes;
Pensions. Make, and cause each of its Subsidiaries to make, timely payment of all foreign, federal, state, and local taxes or assessments (other than taxes and assessments which such Borrower is contesting pursuant to the terms of
Section 5.9 hereof) and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their
terms. 
 6.5 Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in
Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement
showing Bank as lender loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and additional insured endorsements) shall
provide that the insurer must give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified copies of policies and evidence of all premium
payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a)(x) so long as no Event of Default has occurred and is continuing, Borrower shall have the
option of applying the proceeds of any casualty policy toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired
Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and (b)(y) 

  

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after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be
payable to Bank on account of the Obligations. 
 6.6 Operating Accounts. 
 (a) Maintain its and its Subsidiaries’ primary depository and operating accounts and securities accounts with Bank and Bank’s
affiliates which accounts shall represent at least 33% of the dollar value of Borrowers’ and their Subsidiaries’ accounts at all financial institutions located in the United States. 
 (b) Provide Bank one (1) day’s prior written notice before establishing any Collateral Account at or with any bank or financial
institution other than Bank or its Affiliates. In addition, for each Collateral Account that a Borrower at any time maintains, such Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral
Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of
the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of a Borrower’s employees and identified to Bank by such Borrower as such.

 6.7 Financial Covenant. Borrowers shall maintain at all times, to be tested as of the last day of each fiscal quarter, on a
consolidated basis with respect to Borrowers and their Subsidiaries a Tangible Net Worth of greater than negative $6,000,000. 
 6.8
Protection of Intellectual Property Rights. Such Borrower shall: (a) protect, defend and maintain the validity and enforceability of its intellectual property; (b) promptly advise Bank in writing of material infringements of its
intellectual property; and (c) not allow any intellectual property material to such Borrower’s business to be abandoned, forfeited or dedicated to the public, except in the cases of clauses (a) and (c) where such Borrower’s
General Counsel or Chief Technology Officer determines in its reasonable business judgment that such action (or inaction) is in such Borrower’s best interest. 
 6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, such Borrower and its officers, employees and
agents and such Borrower’s books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to such
Borrower. 
 6.10 Further Assurances. Such Borrower shall execute any further instruments and take further action as Bank
reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. 
 7
NEGATIVE COVENANTS 
 Neither Borrower shall do any of the following without Bank’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively, “Transfer”), or permit any of its
Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete or unneeded Equipment; (c) in connection with Permitted Liens
and Permitted Investments and other transaction permitted under Section 7.7; (d) transfers between Borrowers, and (e) of non-exclusive licenses for the use of the property of such Borrower or its Subsidiaries in the ordinary course of
business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of
the United States. 
 7.2 Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any
of its Subsidiaries to engage in any business other than the businesses currently engaged in by Parent and its Subsidiaries, as applicable, or reasonably related or incidental thereto; (b) liquidate or dissolve (provided that BAS or any other
Subsidiary may liquidate or dissolve so long as such Person’s assets are thereafter owned by (i) Parent, in the case of BAS, or (ii) a Borrower or a Domestic Subsidiary, in the case of a Subsidiary); or (c) (i) have a

  

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change in Senior Manager (unless a replacement is approved by a majority of the Compensation Committee of such Borrower’s Board of Directors, within 180
days of the date of termination such Senior Manager) or (ii) enter into any transaction or series of related transactions in which the stockholders of Parent who were not stockholders immediately prior to the first such transaction own more
than 40% of the voting stock of Parent immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Parent’s equity securities in a public offering or to venture capital investors or
strategic investors). Such Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less
than One Million Dollars ($1,000,000) in book value of such Borrower’s assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or
(5) change any organizational number (if any) assigned by its jurisdiction of organization. 
 7.3 Mergers or
Acquisitions. Except for Permitted Acquisitions, merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person except that a Subsidiary may merge or consolidate into, or acquire all or substantially all of the assets of, another Subsidiary or into a Borrower and a Borrower may merge or consolidate into, or acquire
all or substantially all of the assets of, the other Borrower. 
 7.4 Indebtedness. Create, incur, assume, or be liable for any
Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. Create, incur, or allow
any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first
priority security interest granted herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except
pursuant to the terms of Section 6.6(b) hereof. 
 7.7 Distributions; Investments. (a) Directly or indirectly make
any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock provided that (i) Parent may convert
or exchange any of its convertible securities into or for other securities pursuant to the terms of such convertible securities or otherwise and may make cash payments in lieu of fractional shares; (ii) such Borrower may pay dividends solely in
common stock; and (iii) such Borrower may repurchase the stock of former employees, directors or consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of such repurchase and would not
exist after giving effect to such repurchase, provided such repurchases do not exceed in the aggregate of $250,000 per fiscal year. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of such Borrower, except for transactions that are in the ordinary course of such
Borrower’s business, so long as such transaction does not have a material adverse impact upon the consolidated financial position of Parent, and, in the case of a transaction with an Affiliate that is not Parent or any of its Subsidiaries, such
transaction is no less favorable to such Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or
(b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the
Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit
Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law
or regulation, if the violation could reasonably be expected to have a material adverse effect on such Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit
partial or 

  

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complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan
which could reasonably be expected to result in any material liability of such Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 8 EVENTS OF DEFAULT 
 Any one
of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment
Default. Borrowers fail to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable. During
the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 
 8.2 Covenant Default. 
 (a) Either Borrower fails or neglects to perform any obligation in Sections
6.2 (excluding clauses (iv) and (v) of Section 6.2(a)), 6.5, 6.6, or 6.7 or violates any covenant in Section 7; or 
 (b) Either Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement, any Loan Documents, and as to any default (other than those
specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if
the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by a Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then such
Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but
no Credit Extensions shall be made during such cure period). Grace periods provided under this section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above; 
 8.3 Material Adverse Change. A Material Adverse Change occurs; 
 8.4 Attachment. (a) Any material portion of either Borrower’s assets is attached, seized, levied on, or comes into possession of
a trustee or receiver and the attachment, seizure or levy is not removed in ten (10) days; (b) the service of process upon Bank seeking to attach, by trustee or similar process, any funds of either Borrower or of any entity under control
of either Borrower (including a Subsidiary) on deposit with Bank if such service of process or attachment is not rescinded with 10 days; (c) either Borrower is enjoined, restrained, or prevented by court order from conducting a material part of
its business; (d) a judgment or other claim in excess of One Million Dollars ($1,000,000) becomes a Lien on any material portion of either Borrower’s assets; or (e) a notice of lien, levy, or assessment is filed against any of either
Borrower’s assets by any government agency and not paid or appropriately contested within ten (10) days after such Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by a Borrower
(but no Credit Extensions shall be made during the cure period); 
 8.5 Insolvency. (a) Either Borrower is unable to pay
its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) either Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against either Borrower and not dismissed or stayed within
thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. There is a default in any agreement to which either Borrower or any Guarantor is a party with a third party or
parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Million Dollars ($1,000,000); 
  

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 8.7 Judgments. A judgment or judgments for the payment of money in an amount, individually
or in the aggregate, of at least One Million Dollars ($1,000,000) (not covered by independent third-party insurance) shall be rendered against either Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days after the
entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 
 8.8
Misrepresentations. A Borrower or any Person acting for a Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this
Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. A default or breach occurs under any agreement between either Borrower and any creditor of such Borrower that signed a subordination, intercreditor, or other similar agreement with Bank, or any creditor
that has signed such an agreement with Bank breaches any terms of such agreement; or 
 8.10 Guaranty. (a) Any guaranty of any
Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.3, 8.4, 8.5,
8.6, 8.7, or 8.8. occurs with respect to any Guarantor, or (d) the liquidation, winding up, or termination of existence of any Guarantor that is not permitted under this Agreement. 
 9 BANK’S RIGHTS AND REMEDIES 
 9.1 Rights and Remedies. While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations
are immediately due and payable without any action by Bank); 
 (b) stop advancing money or extending credit for
Borrowers’ benefit under this Agreement or under any other agreement between Borrowers and Bank; 
 (c) demand that
Borrowers (i) deposit cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrowers shall
forthwith deposit and pay such amounts, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 
 (d) terminate any FX Contracts; 
 (e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any Person owing a Borrower money of Bank’s security interest in
such funds, and verify the amount of such account; 
 (f) make any payments and do any acts it considers necessary or
reasonable to protect the Collateral and/or its security interest in the Collateral. Borrowers shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Each Borrower grants Bank a license to enter and
occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 
 (g) apply to the Obligations
any (i) balances and deposits of Borrowers it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrowers; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without
charge, each Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of 

  

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its rights under this Section, each Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or
other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrowers’ Books; and 
 (k) exercise all rights and remedies available to
Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of Attorney. Each Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to:
(a) endorse such Borrower’s name on any checks or other forms of payment or security; (b) sign such Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust
disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under such Borrower’s insurance policies; (e) pay, contest or settle
any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank
or a third party as the Code permits. Each Borrower hereby appoints Bank as its lawful attorney-in-fact to sign such Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether
an Event of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointments as Borrowers’ attorney in fact, and all of
Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
 9.3 Accounts Verification; Collection. Borrowers agree that upon Bank’s request, they shall blind copy Bank on email collection
efforts involving Accounts of $500,000 or more and Accounts more than ninety (90) days from invoice date. If an Event of Default has occurred and is continuing for which Bank has accelerated payment of the Obligations or if Borrowers fail to
comply in any material respect with a Bank request in accordance with the preceding sentence, Bank may notify any Person owing a Borrower money of Bank’s security interest in such funds and verify the amount of such account. After the
occurrence and during the continuance of an Event of Default, any amounts received by Borrowers shall be held in trust by Borrowers for Bank, and, if requested by Bank, Borrowers shall immediately deliver such receipts to Bank in the form received
from the Account Debtors, with proper endorsements for deposit. 
 9.4 Protective Payments. If a Borrower fails to obtain the
insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrowers are obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment,
and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Bank will make reasonable efforts to provide Borrowers with notice of Bank
obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
 9.5 Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Bank shall apply any funds in its
possession (other than funds maintained in Borrowers’ deposit and investment accounts with Bank which are not the proceeds of Collateral dispositions prohibited hereunder), whether from a Borrower’s account balances, payments, or proceeds
realized as the result of any collection of Accounts or other disposition of the Collateral, first, to Bank Expenses, including without limitation, the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Bank in
the exercise of its rights under this Agreement; second, to the interest due upon any of the Obligations; and third, to the principal of the Obligations and any applicable fees and other charges, in such order as Bank shall determine in its sole
discretion. Any surplus shall be paid to Borrowers or other Persons legally entitled thereto; Borrowers shall remain jointly and severally liable to Bank for any deficiency. If an Event of Default has occurred and is continuing, Bank may apply any
funds in its possession, whether from a Borrower’s account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall

  

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determine in its sole discretion. Any surplus shall be paid to Borrowers or other Persons legally entitled thereto; Borrowers shall remain jointly and
severally liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option,
exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. Any surplus funds remaining after the
Obligations are satisfied in full shall be paid to Borrowers or other Persons legally entitled thereto. Borrowers shall remain jointly and severally liable to Bank for any deficiency. 
 9.6 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the safekeeping of the
Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrowers bear all risk of loss, damage or destruction of the Collateral. 
 9.7 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by a Borrower or Borrowers of
any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by
Bank and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code,
by law, or in equity. Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence.

 9.8 Demand Waiver. Each Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of
any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrowers are liable. 
 10 NOTICES AND WAIVERS 
 10.1 Notices. 
 All notices, consents, requests, approvals, demands, or other communication (collectively,
“Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three
(3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one
(1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address,
facsimile number, or email address indicated below. Bank or a Borrower may change its address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 
  

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	If to Borrowers:	  	BigBand Networks, Inc.
		  	BigBand Networks BAS, Inc.
		  	475 Broadway Street
		  	Redwood City, California 94063
		  	Attn: Chief Financial Officer
		  	Fax: 650.995.0060
		  	Email:
                                        
                            
		
	If to Bank:	  	Silicon Valley Bank
		  	2400 Geng Road, Suite 200
		  	Palo Alto, California 94303
		  	Attn: Scott Wiebe
		  	Fax: 650.320.0016
		  	Email: swiebe@svb.com

 10.2 Subrogation and Similar Rights. 
 Notwithstanding any other provision of this Agreement or any other Loan Document, until the Obligations have been full and finally paid (other than
inchoate indemnity and performance obligations), each Borrower irrevocably waives all rights that it may have at law or in equity (including any law subrogating the Borrower to the rights of Bank under the Loan Documents) to seek contribution,
indemnification, or any other form of reimbursement from the other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by the Borrower with respect to the Obligations in
connection with the Loan Documents or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by the Borrower with respect to the Obligations in connection
with the Loan Documents or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section 10.2 shall be null and void. If any payment is made to a Borrower in contravention of this
Section 10.2, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank for application to the Obligations, whether matured or unmatured. 
 10.3 Waivers of Defenses. 
 Each
Borrower, to the extent that it is a guarantor of the Obligations, waives any defense arising from any defense of the other Borrower, or by reason of the cessation from any cause whatsoever of the liability of the other Borrower. Nothing contained
herein shall prevent Bank from foreclosing on the Lien of any security instrument, or exercising any rights available thereunder, and the exercise of any such rights shall not constitute a legal or equitable discharge of either Borrower. Each
Borrower, to the extent that it is a guarantor of the Obligations, also waives any defense arising from any act or omission of Bank that changes the scope of the Borrower’s risks hereunder. Each Borrower, to the extent that it is a guarantor of
the Obligations, waives any right to assert against Bank any defense (legal or equitable), setoff, counterclaim, or claims that such Borrower individually may now or hereafter have against the other Borrower or any other Person liable to Borrower
with respect to the Obligations in any manner or whatsoever. Each Borrower assumes the responsibility for being and keeping itself informed of the other Borrower’s financial condition and of all other circumstances bearing on the risk of
nonpayment of the Obligations and that Bank shall have no duty to advise it of information that Bank has regarding the foregoing. 
 10.4
Waiver of Guarantor Defenses. 
 Each Borrower, to the extent that it is a guarantor of the Obligations and to the extent permitted by
law, waives any defense based on impairment or destruction of its subrogation or other rights against the other Borrower and waives all benefits which might otherwise be available to it under California Civil Code §§ 2809, 2810, 2819,
2839, 2845, 2847, 2848, 2849, 2850, 2899 and 3433 and California Code of Civil Procedure §§ 580a, 580b, 580d and 726, as those statutory provisions are now in effect and hereafter amended, and under any other similar statutes now and
hereafter in effect. 
  

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 10.5 Right to Settle, Release. 
 (a) Each Borrower’s liability hereunder shall not be diminished by (i) any agreement, understanding or representation that any
of the Obligations is or was to be guaranteed by another Person or secured by other property, or (ii) any release or unenforceability, whether partial or total, or rights, if any, which Borrower may now or hereafter have against any other
Person, including the other Borrower, or property with respect to any of the Obligations. 
 (b) Without notice to the other
Borrower and without affecting the liability of the other Borrower hereunder, Bank may (i) compromise, settle, renew, extend the time for payment, change the manner or terms of payment, discharge the performance of, decline to enforce, or
release all or any of the Obligations with respect to a Borrower, (ii) grant other indulgences to a Borrower in respect of the Obligations, (iii) modify in any manner any documents, relating to the Obligations with respect to a Borrower,
(iv) release, surrender or exchange any deposits or other property securing the Obligations, whether pledged by a Borrower or any other Person, or (v) compromise, settle renew, or extend the time for payment, discharge the performance of,
decline to enforce, or release all or any obligations of any guarantor, endorser or other Person who is now or may hereafter be liable with respect to any of the Obligations. 
 11 CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE 
 California law governs the Loan Documents without regard to principles of conflicts of law. Each Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other
jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Each Borrower expressly submits and consents in advance to such jurisdiction in any action or suit
commenced in any such court, and each Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is
deemed appropriate by such court. Each Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by
registered or certified mail addressed to such Borrower at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of a Borrower’s actual receipt thereof or three
(3) days after deposit in the U.S. mails, proper postage prepaid. 
 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER
AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.
THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
 WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes
or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior
Court) appointed in accordance with California Code of Civil Procedure § 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa
Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through
645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All
such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that
point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the 

  

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same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which
shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial
proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of
decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies.
The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 
 12 GENERAL PROVISIONS 
 12.1 Successors and Assigns. This Agreement binds and is for the benefit of the
successors and permitted assigns of each party. Neither Borrower may assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the
right, without the consent of or notice to Borrowers, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents.

 12.2 Indemnification. Borrowers jointly and severally agree to indemnify, defend and hold Bank and its directors, officers,
employees, agents, attorneys, or any other Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection
with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from transactions between Bank and Borrowers (including reasonable attorneys’ fees and
expenses), except for Claims and/or losses directly caused by Bank’s gross negligence or willful misconduct. 
 12.3
Limitation of Actions. Any claim or cause of action by a Borrower or Borrowers against Bank, its directors, officers, employees, agents, accountants, attorneys, or any other Person affiliated with or representing Bank based upon,
arising from, or relating to this Loan Agreement or any other Loan Document, or any other transaction contemplated hereby or thereby or relating hereto or thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered
to be done by Bank, its directors, officers, employees, agents, accountants or attorneys, shall be barred unless asserted by a Borrower or Borrowers by the commencement of an action or proceeding in a court of competent jurisdiction by (a) the
filing of a complaint within one year from the earlier of (i) the date any of either Borrower’s officers or directors had knowledge of the first act, the occurrence or omission upon which such claim or cause of action, or any part thereof,
is based, or (ii) the date this Agreement is terminated, and (b) the service of a summons and complaint on an officer of Bank, or on any other person authorized to accept service on behalf of Bank, within thirty (30) days thereafter.
Each Borrower agrees that such one-year period is a reasonable and sufficient time for such Borrower to investigate and act upon any such claim or cause of action. The one-year period provided herein shall not be waived, tolled, or extended except
by the written consent of Bank in its sole discretion. This provision shall survive any termination of this Agreement or any other Loan Document. 
 12.4 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 
 12.5
Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.6 Amendments in Writing; Integration. All amendments to this Agreement must be in writing signed by both Bank and Borrowers. This Agreement and the other Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the other Loan Documents
merge into this Agreement and the other Loan Documents. 
 12.7 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 
  

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 12.8 Survival. All covenants, representations and warranties made in this Agreement
continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have
been satisfied. The obligation of Borrowers in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 
 12.9 Confidentiality. All financial information (other than any such information contained in periodic reports that a Borrower files with
the Securities and Exchange Commission) disclosed by a Borrower to Bank in writing and all other written information that a Borrower discloses to Bank that is marked “Confidential” shall be considered confidential information for purposes
of this Section 12.9, subject to the last sentence of this Section 12.9. In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of
information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use commercially reasonable efforts
to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection
with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (i) is in the public domain or in Bank’s
possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information.

 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrowers and Bank arising out of or
relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 
 13 DEFINITIONS 
 13.1
Definitions. As used in this Agreement, the following terms have the following meanings: 
 “Account” is any
“account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to a Borrower. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 “Adjusted Quick Ratio” is as of any date is the ratio of (i) Quick Assets to (ii) Current Liabilities,
less Deferred Revenue. 
 “Adjustment Period” is a period commencing as of the first day of the month after a month for
which the Adjusted Quick Ratio is less than 1.15 to 1.00 and continuing until to the first day of the month after the month for which the Adjusted Quick Ratio is 1.15 to 1.00 or greater. 
 “Advance” or “Advances” means an advance (or advances) under the Revolving Line. 
 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled
by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
 “Agreement” is defined in the preamble hereof. 
 “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base minus (b) the amount of all outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (c) the FX Reserve, minus (d) during an Adjustment Period, the Term Loan principal outstanding, minus (e) the
outstanding principal balance of any Advances (including any amounts used for Cash Management Services). 
  

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 “Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for
preparing, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower. 
 “Borrower” and “Borrowers” are defined in the preamble hereof. 
 “Borrowers’ Books” are all Borrowers’ books and records including ledgers, federal and state tax returns, records regarding
Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” is (a) 80% of Eligible Accounts and 60% of Eligible Special Accounts plus (b) so long as an Adjustment
Period is not in effect, the lesser of (i) either (A) 50% of the value of Borrower’s Eligible Inventory (valued at the lower of cost or wholesale fair market value), or (B) 50% of the value of Eligible Purchase Orders or
(ii) $10,000,000, plus (c) 50% of Borrowers’ cash and Cash Equivalents, as determined by Bank from Borrower’s most recent Borrowing Base Certificate, net of all Obligations; provided, however, that Bank may
decrease the foregoing percentages in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 
 “Borrowing Base Certificate” is that certain certificate in the form attached hereto as Exhibit C. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form attached hereto as Exhibit D
adopted by such Person’s Board of Directors and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on
behalf of such Person certifying that (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true,
correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s)
authorized to execute the Loan Documents on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered
to Bank a further certificate canceling or amending such prior certificate. 
 “Business Day” is any day that is not a
Saturday, Sunday or a day on which Bank is closed. 
 “Cash Equivalents” means, to the extent consistent with the
Borrowers’ Board approved investment policy: (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than eighteen (18) months from
the date of acquisition; (b) commercial paper maturing no more than eighteen (18) months after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.,
(c) certificates of deposit issued maturing no more than eighteen (18) months after issue, provided that for certificates of deposit not issued by Bank, (i) such certificates of deposit are unrestricted funds, and (ii) account
control agreements perfecting Bank’s security interest in such certificates are in effect; and (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in
clauses (a) through (c) of this definition. 
 “Cash Management Services” is defined in Section 2.1.4. 

“Cash Management Services Sublimit” is defined in Section 2.1.4. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California;
provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9
shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform
Commercial Code in effect in a jurisdiction other than the State of 

  

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California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes
on the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrowers described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Committed Availability” means, as the date of determination, an amount equal to the sum of the Revolving Line plus the Term Loan Amount minus all outstanding Credit Extensions. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Communication” is defined in Section 10. 
 “Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit E. 
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any
indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or
indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The
amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good
faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Control
Agreement” is any control agreement entered into among the depository institution at which a Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which a Borrower maintains a Securities Account or
a Commodity account, such Borrower and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or Commodity Account. 
 “Credit Extension” is any Advance, Letter of Credit, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or
any other extension of credit by Bank for Borrowers’ benefit. 
 “Current Liabilities” are all obligations and
liabilities of Borrowers to Bank, plus, without duplication, the aggregate amount of Borrowers’ Total Liabilities that mature within one (1) year. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
 “Default Rate” is defined in Section 2.3(b). 
 “Deferred Revenue” is
all amounts received or invoiced in advance of performance under contracts and not yet recognized as revenue. 
 “Deposit
Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit account, account number
                            , maintained with Bank. 
 “Dollars,” “dollars” and “$” each mean lawful money of the United States. 
  

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 “Domestic Subsidiary” means a Subsidiary organized under the laws of the United States
or any state or territory thereof or the District of Columbia. 
 “Effective Date” is the date Bank executes this Agreement
and as indicated on the signature page hereof. 
 “Eligible Accounts” are Accounts which arise in the ordinary course of a
Borrower’s business that meet all Borrowers’ representations and warranties in Section 5.3. Bank reserves the right, upon prior written notice to Borrower, at any time and from time to time after the Effective Date, to adjust any of
the criteria set forth below and to establish new criteria in its good faith business judgment. Unless Bank agrees otherwise in writing, Eligible Accounts shall not include: 
 (a) Accounts for which the Account Debtor has not been invoiced; 
 (b) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date; 
 (c) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety
(90) days of invoice date; 
 (d) Credit balances over ninety (90) days from invoice date; 
 (e) Accounts owing from an Account Debtor (other than Account Debtors listed in the Eligible Special Accounts definition), including
Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all Accounts, except for Time Warner Cable, Comcast, Verizon, Cox Communications and Adelphia Communications, for which such percentage is 35% for the amounts that
exceed that percentage, unless Bank approves in writing, but in each case only the amount in excess of such percentage shall be excluded; 
 (f) Accounts owing from an Account Debtor which does not have its principal place of business in the United States except for Eligible Foreign Accounts; 
 (g) Accounts owing from an Account Debtor which is a federal, state or local government entity or any department, agency, or
instrumentality thereof except for Accounts of the United States if Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 
 (h) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as
creditor, lessor, supplier or otherwise—sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by
Borrower in the ordinary course of its business; 
 (i) Accounts for demonstration or promotional equipment, or in which goods
are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, “bill and hold”, or other terms if Account Debtor’s payment may be conditional; 
 (j) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 
 (k) Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the
Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (l) Accounts for
which Bank in its good faith business judgment determines collection to be doubtful; and 
 (m) other Accounts Bank deems
ineligible in the exercise of its good faith business judgment. 
 “Eligible Foreign Accounts” are Accounts for which the
Account Debtor does not have its principal place of business in the United States but are otherwise Eligible Accounts that are (a) covered by credit insurance satisfactory to Bank, less any deductible; (b) supported by letter(s) of credit
advised through and acceptable to Bank; or (c) that Bank approves in writing. 
  

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 “Eligible Inventory” means, at any time, the aggregate of Borrower’s Inventory that
(a) consists of raw materials and finished goods, in good, new, and salable condition, which is not perishable, returned, consigned, obsolete, not sellable, damaged, or defective, and is not comprised of demonstrative or custom inventory, works
in progress, packaging or shipping materials, or supplies; (b) in the case of finished goods, meets all applicable governmental standards; (c) in the case of finished goods, has been manufactured in compliance with the Fair Labor Standards
Act; (d) is not subject to any Liens, except the first priority Liens granted or in favor of Bank under this Agreement or any of the other Loan Documents; (e) is located at Borrower’s principal place of business (or any location
permitted under Section 7.2); and (f) is otherwise acceptable to Bank in its good faith business judgment. 
 “Eligible
Purchase Orders” are purchase orders that Borrowers have received from Time Warner Cable, Comcast, Verizon, Cox Communications, Adelphia Communications, Cablevision and Charter Communications that are within one hundred twenty
(120) days of the date Borrowers received such purchase orders and which are otherwise acceptable to Bank in its good faith business judgment. 
 “Eligible Special Accounts” are Accounts for which Huawei China, Essent Kablecom, French Telecomm, British Telecomm, Kabel BW and Delta NV are the Account Debtors and which satisfy the requirements for Eligible Accounts
(other than under clause (e) of the Eligible Accounts definition). Unless Bank otherwise agrees in writing, Accounts owing from an Account Debtor listed in this Eligible Special Accounts definition, including Affiliates, shall not be Eligible
Special Accounts to the extent such Account Debtor’s total obligations to Borrower exceed twenty (20%) of all Accounts (but only the amount of such excess shall not be Eligible Special Accounts). 
 “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations. 
 “Event of
Default” is defined in Section 8. 
 “Foreign Currency” means lawful money of a country other than the United
States. 
 “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 
 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day. 

“FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal business and (b) the
Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 
 “FX Forward Contract” is defined in Section 2.1.3. 
 “FX Reserve” is defined in
Section 2.1.3. 
 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a
significant segment of the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under 

  

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applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment
intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell
real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of
insurance and rights to payment of any kind. 
 “Guarantor” is any present or future guarantor of the Obligations.

 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 
 “Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may
hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of
Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person or Contingent Obligation incurred in
favor of any Person. 
 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon
an application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2. 
 “Letter of
Credit Application” is defined in Section 2.1.2(a). 
 “Letter of Credit Reserve” has the meaning set forth in
Section 2.1.2(d). 
 “Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 “Loan Documents” are, collectively, this Agreement, the Perfection Certificate, the Subordination Agreement, any note, or
notes or guaranties executed by either Borrower or any Guarantor, and any other present or future agreement between either Borrower or any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or
otherwise modified. 
 “Material Adverse Change” is (a) a material impairment in the perfection or priority of
Bank’s Lien in the Collateral or a material impairment in the value of the Collateral such that in the Bank’s reasonable determination, the Obligations exceed the value of the Collateral; (b) a material adverse change in the business,
operations, or condition (financial or otherwise) of Parent and its Subsidiaries taken as a whole; or (c) a material impairment of the prospect of repayment of any portion of the Obligations. 
 “Obligations” are Borrowers’ obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrowers
owes Bank now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit, cash management services, and foreign exchange contracts, if any, and
including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrowers assigned to Bank, and the performance of Borrowers’ duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such
Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability 

  

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company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar
agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Payment/Advance Form” is that
certain form attached hereto as Exhibit B. 
 “Perfection Certificate” is defined in Section 5.1. 
 “Permitted Acquisitions” are: any purchase (in one or more related transactions) of substantially all of the stock of, merger or
consolidation with or acquisition of all or substantially all of the assets of, any Person, so long as no Default or Event of Default has occurred and is continuing, or would occur as a result thereof, where the cash consideration when aggregated
with all Permitted Acquisition in such fiscal year would not exceed $3,000,000. 
 “Permitted Indebtedness” is: 

(a) Borrowers’ Indebtedness to Bank under this Agreement and the other Loan Documents; 
 (b) Indebtedness existing on the Effective Date and shown on the Borrowers’ Perfection Certificates; 
 (c) Subordinated Debt; 
 (d) unsecured
Indebtedness to trade creditors incurred in the ordinary course of business; 
 (e) Indebtedness incurred as a result of endorsing negotiable
instruments received in the ordinary course of business; 
 (f) Indebtedness in an aggregate principal amount not to exceed $500,000 secured
by Permitted Liens; 
 (g) Indebtedness of a Borrower to any Subsidiary or the other Borrower and Contingent Obligations of any Subsidiary
with respect to obligations of either Borrower (provided that the primary obligations are not prohibited hereby), and Indebtedness of any Subsidiary to a Borrower in an aggregate principal amount not to exceed $500,000 or any other Subsidiary and
Contingent Obligations of any Subsidiary with respect to obligations of any other Subsidiary (provided that the primary obligations are not prohibited hereby); 
 (h) other Indebtedness not otherwise permitted by Section 7.4 not exceeding $1,000,000 in the aggregate outstanding at any time; 
 (i) Indebtedness resulting from Investments that are permitted by clause (f) of the Permitted Investments definition; and 
 (j) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (i) above, provided that the principal amount thereof is not increased or the terms
thereof are not modified to impose more burdensome terms upon a Borrower or its Subsidiary, as the case may be. 
 “Permitted
Investments” are: 
 (a) Investments shown on the Borrowers’ Perfection Certificates and existing on the Effective Date;

 (b)(i) Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended from time to time,
provided that such investment policy (and any such amendment thereto) has been approved by Bank; 
 (c) Investments consisting of the
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrowers; 
 (d)
Investments consisting of deposit accounts in which Bank has a perfected security interest; 
  

 -25- 

 (e) Investments accepted in connection with Transfers permitted by Section 7.1; 
 (f)(i) Investments of a Borrower in another Borrower; (ii) investments of non-Borrower Subsidiaries in non-Borrower Subsidiaries or in a Borrower;
and (iii) Investments by a Borrower in non-Borrower Subsidiaries not to exceed the sum of (A) the operating expenses of such Subsidiaries in the ordinary course of business, and (B) $500,000 in the aggregate in any fiscal year;

 (g) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary
course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of a Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by a Borrower’s Board
of Directors; 
 (h) Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or
suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; 
 (i) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph
(i) shall not apply to Investments of a Borrower in any Subsidiary; 
 (j) joint ventures or strategic alliances in the ordinary course
of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed $1,000,000, in the aggregate in
any fiscal year; and 
 (k) other Investments not otherwise permitted by Section 7.7 not exceeding $1,000,000 in the aggregate
outstanding at any time. 
 “Permitted Liens” are: 
 (a) Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents;

 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and
for which a Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s Liens; 
 (c) purchase
money Liens (i) on Equipment acquired or held by a Borrower incurred for financing the acquisition of the Equipment securing no more than $500,000 in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if
the Lien is confined to the property and improvements and the proceeds of the Equipment; 
 (d) Carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than thirty (30) days or which are being contested in good faith and by appropriate
proceeding if adequate reserves with respect thereto are maintained on the books of the applicable Person to the extent required in accordance with GAAP; 
 (e) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business; 
 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any
extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 
 (g) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or intellectual property) granted
in the ordinary course of a Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 
  

 -26- 

 (h) non-exclusive license of intellectual property granted to third parties in the ordinary course of
business, and licenses of intellectual property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet
geographical areas outside of the United States; 
 (i) Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Section 8.4 or 8.7; 
 (j) Liens in favor of other financial institutions arising in connection
with a Borrower’s deposit and/or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit and/or securities accounts; and 
 (k) other Liens not described above arising in the ordinary course of business and not having or not reasonably likely to have a material adverse effect
on Borrower and its Subsidiaries taken as a whole and not having any priority over the Lien in favor of Bank. 
 “Person” is
any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or
government agency. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not
Bank’s lowest rate. 
 “Quick Assets” is, on any date, Borrowers’ consolidated, unrestricted cash, Cash
Equivalents, and net billed accounts receivable. 
 “Registered Organization” is any “registered organization” as
defined in the Code with such additions to such term as may hereafter be made 
 “Responsible Officer” is any of the Chief
Executive Officer, President, Chief Financial Officer and Controller of a Borrower. 
 “Revolving Line” is an Advance or
Advances in an aggregate amount of up to the Revolving Line Limit outstanding at any time. 
 “Revolving Line Limit” is at
any time (i) $20,000,000, if an Adjustment Period is not in effect, and (ii) the sum of (A) $20,000,000, and (B) the Term Loan Amount outstanding at such time, if an Adjustment Period is in effect. 
 “Revolving Line Maturity Date” is August     , 2008. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Senior Manager” means the chief executive officer, chief financial officer, chief technology officer or vice
president of engineering. 
 “Settlement Date” is defined in Section 2.1.3. 
 “Subordinated Debt” is indebtedness incurred by a Borrower subordinated to all of such Borrower’s now or hereafter indebtedness to
Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 
 “Subsidiary” means, with respect to any Person, any Person of which more than 50% of the voting stock or other equity interests is owned
or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
  

 -27- 

 “Tangible Net Worth” is, on any date, the consolidated total assets of Borrowers and
their Subsidiaries minus (a) any amounts attributable to (i) goodwill, (ii) intangible items including unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and development
expenses except prepaid expenses, (iii) notes, accounts receivable and other obligations owing to Borrowers from their officers or other Affiliates, and (iv) reserves not already deducted from assets, minus (b) Total
Liabilities, plus (c) Subordinated Debt. 
 “Term Loan” is a loan made by Bank pursuant to the terms of
Section 2.1.5 hereof. 
 “Term Loan Amount” is an aggregate amount equal to $10,000,000 outstanding at any time.

 “Term Loan Maturity Date” is August     , 2009. 
 “Term Loan Payment” is defined in Section 2.1.5(b). 
 “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrowers’ consolidated balance sheet, including all Indebtedness, and current portion of
Subordinated Debt permitted by Bank to be paid by Borrowers, but excluding all other Subordinated Debt. 
 “Transfer” is
defined in Section 7.1. 
 [Signature page follows.] 
  

 -28- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 
  

			
	BORROWERS:
	
	BIGBAND NETWORKS, INC.
		
	By	 	/s/ Frederick A. Ball
	Name:	 	Frederick A. Ball
	Title:	 	Chief Financial Officer
	
	BIGBAND NETWORKS BAS, INC.
		
	By	 	/s/ Frederick A. Ball
	Name:	 	Frederick A. Ball
	Title:	 	Chief Financial Officer
	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	/s/ Scott M. Wiebe
	Name:	 	Scott M. Wiebe
	Title:	 	Vice President

 Effective Date: 8/18/2006 
 [Signature page to Loan and Security Agreement] 
  

 -29- 

 EXHIBIT A 
 The Collateral consists of all of each Borrower’s right, title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all
Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and
insurance proceeds of any or all of the foregoing. 
 Notwithstanding the foregoing, the Collateral does not include any of the following:
(a) whether now owned or hereafter acquired any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent
applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, and the goodwill of the business of a Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any
past, present, or future infringement of any of the foregoing; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the
foregoing; and (b) more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock owned by either Borrower of any Foreign Subsidiary or BigBand International, Inc., which shares entitle the holder
thereof to vote for directors or any other matter. 
 Pursuant to the terms of a certain negative pledge arrangement with Bank, each Borrower
has agreed not to encumber any of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like
protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether
registered or not, and the goodwill of the business of such Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or
future infringement of any of the foregoing, without Bank’s prior written consent. 
  

 1 

 EXHIBIT B 
 Loan Payment/Advance Request Form 
 DEADLINE FOR
SAME DAY PROCESSING IS NOON P.S.T. 
  

			
	Fax To:	  	Date: _____________________

 LOAN PAYMENT: 
 BigBand Networks, Inc. and BigBand Networks BAS, Inc. 
  

					
	From Account
#                                        
                                        
              	  		  	To Account #                                   
                                        
                    
	                                       
     (Deposit Account #)	  		  	                                       
     (Loan Account #)
			
	Principal
$                                        
                                        
                         	  		  	and/or Interest
$                                        
                                        
          
			
	Authorized Signature:                                 
                                        
       	  		  	Phone Number:                                   
                                        
                
			
	 Print
Name/Title:                                      
                                        
              
	  		  	

 LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 
  

					
	From Account
#                                        
                                        
              	  		  	To Account #                                   
                                        
                    
	                                       
     (Loan Account #)	  		  	(Deposit Account #)
	Amount of Advance
$                                        
                                        
    	  		  	

 All Borrowers’ representations and warranties in the Loan and Security Agreement are true, correct and
complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date: 
  

									
			
	Authorized Signature:                                 
                                        
     	  		  	Phone Number:                                   
                                        
                  
				
	Print
Name/Title:                                      
                                        
            	  		  		  	

 OUTGOING WIRE REQUEST: 
 Complete only if all or a portion of funds from the loan advance above is to be wired. 
 Deadline for same day processing is noon, P.S.T. 
  

									
	Beneficiary Name:                                   
                                        
               	  		  	Amount of Wire:
$                                        
                                        
     
			
	Beneficiary
Bank:                                       
                                        
            	  		  	Account Number:                                   
                                        
            
				
	City and
State:                                       
                                        
                   	  		  		  	
			
	Beneficiary Bank Transit (ABA)
#:                                       
                   	  		  	Beneficiary Bank Code (Swift, Sort, Chip,
etc.):                             
		  		  		  	 (For International Wire Only)

			
	Intermediary Bank:                                  
                                        
               	  		  	Transit (ABA)
#:                                       
                                        
         
		
	For Further Credit to: 	  	  
		
	Special Instruction:	  	  

 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in
accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

									
	BIGBAND NETWORKS, INC.	 		 	
			
	 Authorized Signature:                                  
                                        
      
	 		 	 2nd Signature (if
required):                                      
                                  

			
	 Print
Name/Title:                                      
                                        
           
	 		 	 Print
Name/Title:                                      
                                        
           

			
	 Telephone
#:                                       
                                        
                  
	 		 	 Telephone
#:                                       
                                        
                  

  

 1 

									
	BIGBAND NETWORKS BAS, INC.	 		 	
			
	 Authorized Signature:                                  
                                        
      
	 		 	 2nd Signature (if
required):                                      
                                  

			
	 Print
Name/Title:                                      
                                        
           
	 		 	 Print
Name/Title:                                      
                                        
           

			
	 Telephone
#:                                       
                                        
                  
	 		 	 Telephone
#:                                       
                                        
                  

  

 2 

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
 Borrowers: BigBand Networks, Inc. and BigBand Networks BAS, Inc. 
 Lender: Silicon Valley Bank 
 Commitment Amount: The Revolving Line Limit

  

				
	 ACCOUNTS RECEIVABLE
	  		
	 1.      Accounts Receivable Book Value as of _________________________
	  	$	_______________
	 2.      Additions (please explain on reverse)
	  	$	_______________
	 3.      TOTAL ACCOUNTS RECEIVABLE
	  	$	_______________
		
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  		
	 4.      Un-invoiced Accounts
	  	$	_______________
	 5.      Amounts over 90 days due
	  	$	_______________
	 6.      Balance of 50% over 90 day accounts
	  	$	_______________
	 7.      Credit balances over 90 days
	  	$	_______________
	 8.      Concentration Limits
	  	$	_______________
	 9.      Foreign Accounts
	  	$	_______________
	 10.    Governmental Accounts
	  	$	_______________
	 11.    Contra Accounts
	  	$	_______________
	 12.    Promotion or Demo Accounts
	  	$	_______________
	 13.    Intercompany/Employee Accounts
	  	$	_______________
	 14.    Disputed Accounts
	  	$	_______________
	 15.    Deferred Revenue
	  	$	_______________
	 16.    Other (please explain on reverse)
	  	$	_______________
	 17.    Eligible Special Accounts
	  	$	_______________
	 18.    TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  	$	_______________
	 19.    Eligible Accounts (#3 minus #18)
	  	$	_______________
	 20.    ELIGIBLE AMOUNT OF ACCOUNTS ( 80% of #19)
	  	$	_______________
		
	 ELIGIBLE SPECIAL ACCOUNTS
	  		
	 21.    Eligible Special Accounts Value as of _______________
	  	$	_______________
	 22.    ELIGIBLE AMOUNT OF SPECIAL ACCOUNTS (60% of #21)
	  	$	_______________
	 PURCHASEORDERS
	  		
	 23.    Eligible Purchase Orders Value as of _______________
	  	$	_______________
	 24.    ELIGIBLE AMOUNT OF PURCHASE ORDERS ( 50% of #23)
	  	$	_______________
		
	 INVENTORY
	  		
	 25.    Eligible Inventory Value as of _______________
	  	$	_______________
	 26.    ELIGIBLE AMOUNT OF INVENTORY ( 50% of #25)
	  	$	_______________
		
	 CASH AND CASH EQUIVALENTS
	  		
	 27.    Cash as of _______________
	  	$	_______________
	 28.    Cash Equivalents as of ________________
	  	$	_______________
	 29.    Obligations to Bank as of ______________
	  	$	_______________
	 30.    ELIGIBLE AMOUNT OF CASH AND CASH EQUIVALENTS ( 50% of #27 and #28, less #29)
	  	$	_______________
		
	 BALANCES
	  		
	 31.    Maximum Loan Amount
	  	$	_______________
	 32.    Total Funds Available [Lesser of (A) #31 or (B) (#20 plus #22) plus Lesser of (i) $10,000,000 and
(ii) either #24 or #26, plus #30]
	  	$	_______________

  

 1 

				
	 33.    Present balance owing on Line of Credit
	  	$	_______________
	 34.    Outstanding under Sublimits
	  	$	_______________
	 35.    RESERVE POSITION (#32 minus #33 and #34)
	  	$	_______________

 The undersigned jointly and severally represent and warrant that this is true, complete and correct, and that
the information in this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 
  

									
	 COMMENTS:
 BIGBAND NETWORKS,
INC.
	 		 	BANK USE ONLY
					
	By:	 	  	 		 	 Received by:
	 	  
		 	Authorized Signer	 		 		 	AUTHORIZED SIGNER
					
	Date: 	 	  	 		 	 Date:
	 	  
				
	 BIGBAND NETWORKS BAS, INC.
	 		 	 Verified:
	 	  
		 		 		 	AUTHORIZED SIGNER
	 By:
	 	  	 		 		 	
		 	Authorized Signer	 		 	 Date:
	 	
				
	Date: 	 	  	 		 	Compliance Status:         Yes        No

  

 2 

 EXHIBIT D 
 BORROWING RESOLUTIONS 
 

 
 CORPORATE BORROWING CERTIFICATE 
  

							
	BORROWER:	  	[BigBand Networks, Inc.][BigBand Networks BAS, Inc.]	  	DATE: August     , 2006
	BANK:	  	Silicon Valley Bank	  		  	

 I hereby certify as follows, as of the date set forth above: 
 1. I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below. 
 2. Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware. 
 3. Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of
the state in which Borrower is incorporated as set forth in paragraph 1 above. Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date hereof.

 4. The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to
a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until
Bank receives written notice of revocation from Borrower. 
 RESOLVED, that any one of the
following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower: 
  

							
	 Name
	  	 Title
	  	 Signature
	  	Authorized to
Add or Remove
Signatories
				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈
				
	  
	  	  
	  	  
	  	 ̈

 RESOLVED FURTHER, that any one of the persons
designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower. 
 RESOLVED FURTHER, that such individuals may, on behalf of Borrower: 
 Borrow Money. Borrow money from Silicon Valley Bank (“Bank”). 
 Execute Loan Documents. Execute any loan documents Bank requires. 
 Grant Security. Grant Bank a security interest in any of Borrower’s assets. 
  

 1 

 Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other
indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds. 
 Letters of Credit. Apply for letters
of credit from Bank. 
 Foreign Exchange Contracts. Execute spot or forward foreign exchange contracts. 
 Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or
agreement that waive Borrowers right to a jury trial) they believe to be necessary to effectuate such resolutions. 
 RESOLVED
FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 
 5. The persons listed
above are Borrower’s officers or employees with their titles and signatures shown next to their names. 
  

			
		
	By:	 	  
		
	 Name: 
	 	  
		
	 Title:
	 	  

 *** If the Secretary, Assistant Secretary or other certifying officer executing
above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower. 
 I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth 
                         [print
title] 
 above. 
  

			
		
	By:	 	  
		
	 Name: 
	 	  
		
	 Title:
	 	  

  

 2 

 EXHIBIT E 
 COMPLIANCE CERTIFICATE 
  

									
	 TO:
	  	SILICON VALLEY BANK	  		  	Date:	  	  
	 FROM:
	  	BIGBAND NETWORKS, INC. and BIGBAND NETWORKS BAS, INC.	  	

 The undersigned authorized officer of BigBand Networks, Inc. and BigBand Networks BAS, Inc.
(individually “Borrower” and collectively “Borrowers”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (1) Borrowers are in complete
compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects
on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) each Borrower, and each of its Subsidiaries, has timely filed
all required tax returns and reports, and each Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by such Borrower except as otherwise permitted pursuant to the terms of
Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against either Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which either Borrower has not previously provided written
notification to Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with generally GAAP consistently applied from one period to the next except as explained in an
accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrowers are not in compliance with any of the terms of the Agreement, and that compliance is determined
not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 180 days	  	Yes    No
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No
			
	Borrowing Base Certificate A/R & A/P Agings	  	Monthly within 30 days	  	Yes    No

 The following Intellectual Property was registered after the Effective Date (if no registrations, state
“None”) 
 Adjusted Quick Ratio: 
  

									
	 Financial Covenant
	  	Required	  	Actual	  	Complies
	 Maintain on a Quarterly Basis:
	  			  			  	
	 Minimum Tangible Net Worth
	  	-$	6,000,000	  	$	_______	  	Yes     No

  

 1 

 The following financial covenant analys[is][es] and information set forth in Schedule 1 attached hereto
are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”) 
  

  

  

  

									
	BIGBAND NETWORKS, INC.	 		 	BANK USE ONLY
					
	By:	 	  	 		 	 Received by:
	 	  
	Name:	 	  	 		 		 	AUTHORIZED SIGNER
	Title:	 	  	 		 	Date:	 	  
					
		 		 		 	Verified:	 	  
	 BIG BAND NETWORKS BAS, INC.
	 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	  
				
	 By:
	 	  	 		 	Compliance Status:         Yes     No
	Name:	 	  	 		 		 	
	Title:	 	  	 		 		 	

  

 2 

 Schedule 1 to Compliance Certificate 
 Adjusted Quick Ratio and Financial Covenant of Borrower 
 [NOTE – some values for the calculations below refer to lines in other financial covenant calculations (see lines A and B for Adjusted Quick Ratio covenant). If the financial covenants with lines that serve as
cross-references are not going to be measured (and are therefore not included in this schedule), then the drafter will have to insert the appropriate formulas in the financial covenants that are measured rather than just relying on
cross-references.] 
 Dated: ____________________ 
  

	I.	Adjusted Quick Ratio  

  

									
		 	 A.
	  	Aggregate value of the unrestricted cash and Cash Equivalents of Borrowers and their Subsidiaries	  	$	  	  
					
		 	 B.
	  	Aggregate value of the net billed accounts receivable of Borrowers and their Subsidiaries	  	$	  	  
					
		 	 C.
	  	Quick Assets (the sum of lines A through B)	  	$	  	  
					
		 	 D.
	  	Aggregate value of Obligations to Bank	  	$	  	  
					
		 	 E.
	  	 Aggregate value of liabilities of Borrowers and their Subsidiaries (including all Indebtedness)
 that matures within one (1) year
	  	$	  	  
					
		 	 F.
	  	Current Liabilities (the sum of lines D and E)	  	$	  	  
					
		 	 G.
	  	Deferred Revenue	  		  	
					
		 	 H.
	  	Quick Ratio (line C divided by line F, less line G)	  		  	  

  

	II.	Tangible Net Worth (Section 6.7) 

  

									
		 	Required:	  	 -$6,000,000
	  		  	
					
		 	 Actual:
	  		  		  	
					
		 	 A.
	  	 Aggregate value of liabilities of Borrowers and their Subsidiaries (including all Indebtedness) and current
 portion of Subordinated Debt permitted by Bank to be paid by Borrowers (but no other Subordinated Debt)
	  	$	  	  
					
		 	 B.
	  	Aggregate value of Indebtedness of Borrower subordinated to Borrowers’ Indebtedness to Bank	  	$	  	  
					
		 	 C.
	  	Debt (line A minus line B)	  	$	  	  
					
		 	 D.
	  	Aggregate value of total assets of Borrowers and their Subsidiaries	  	$	  	  
					
		 	 E.
	  	Aggregate value of goodwill of Borrowers and their Subsidiaries	  	$	  	  
					
		 	 F.
	  	Aggregate value of intangible assets of Borrowers and their Subsidiaries	  	$	  	  
					
		 	 G.
	  	Aggregate value of any reserves not already deducted from assets	  	$	  	  
					
		 	 H.
	  	Value of line II.A.	  	$	  	  

  

 3 

							
	 I.
	  	Tangible Net Worth (line D minus line E minus line F minus line G minus line H plus line B)	  	$	  	  

 Is line I equal to or greater than $6,00,000? 
                  No, not in compliance
                                        
                            
                 Yes, in compliance 
  

 4 

 EXHIBIT F 
 PERFECTION CERTIFICATE 
  

 5

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